An operations manager wants to measure variability in the delivery time of insurance policies to clients. Which of the following quality tools most appropriately would show the level of variability?
Correct Answer: D
Question 187
When doing international business, a company's total line-haul costs will vary with the:
Correct Answer: B
Section: Supply Chain Strategy, Design, and Compliance
Question 188
The process of continuous improvement can be defined best as a continuous effort to:
Correct Answer: D
Question 189
Which of the following actions is most likely to reduce the risk of product shortages for a company planning to use a subcontractor to produce some of its products?
Correct Answer: A
Sharing product demand forecasts with the subcontractor is most likely to reduce the risk of product shortages for several reasons: * Demand Visibility: By providing the subcontractor with accurate and timely demand forecasts, the subcontractor gains visibility into the expected demand for the products. This allows them to plan their production schedules, allocate resources efficiently, and ensure they have the necessary materials and workforce to meet the anticipated demand. * Production Planning: With access to demand forecasts, the subcontractor can synchronize their production plans with the company's needs. This alignment helps in minimizing production delays and ensuring a steady flow of products to meet market demand. * Inventory Management: Demand forecasts enable the subcontractor to manage their inventory more effectively, reducing the likelihood of stockouts or overproduction. This balance helps in maintaining a smooth supply chain operation. * Collaboration and Communication: Sharing forecasts fosters a collaborative relationship between the company and the subcontractor. Open communication channels can lead to better problem-solving and quicker responses to potential disruptions. * Risk Mitigation: Proactively sharing demand information helps in identifying potential bottlenecks and capacity constraints in advance, allowing both parties to take corrective actions before they escalate into shortages. References * Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson. * Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies. McGraw-Hill Education.
Question 190
Which of the following cost elements typically would be included in the cost of carrying inventory?
Correct Answer: D
The cost of carrying inventory includes several components, one of which is obsolescence. Obsolescence refers to the reduction in value of inventory over time as products become outdated or no longer useful. This is a critical cost element because it directly impacts the financial value of held inventory. Other carrying costs include storage costs, insurance, and capital costs. Options A, B, and C are costs associated with production or direct material expenses but do not fall under the typical carrying costs of inventory. References: * Waters, D. (2003). Inventory Control and Management. * https://www.supplychaindive.com
