Question

1.Ford initially tried to use vertical integration to control all aspects of the production and sale of its automobiles. Later, Ford abandoned vertical integration and adopted a strategy of partnerships with key suppliers. The partnership arrangements were expected to cut costs for Ford but still permit the suppliers to enjoy profits at the level of the industry standard. How would it be possible for a supplier’s profits to be preserved while Ford’s costs decreased?

Select one:

a.
Ford would agree to buy larger amounts each year.

b.
The supplier would create a schedule of price reductions applicable only to Ford.

c. None of the provided answers is correct. (This answer is similar to "none of the above" except I do not know the order in which the answers will appear.)

d.
Ford and its supplier would jointly seek ways to cut costs.

e.
The supplier would switch to lower quality and cheaper items.

f.
Ford would revert to vertical integration with the selected supplier.

2. "My HR Expert” is a company founded by two YHC grads in response to their recognition that many small businesses do a sloppy job of managing HR issues. My HR Expert offers to handle all of a client company’s HR administrative matters including legal notifications, payroll, benefit management, payroll taxes, and management of the retirement contribution. My HR Expert is thriving, but the processing of payrolls for clients threatens to overwhelm the owners’ time. The owners are considering either hiring another associate or contracting with another company to outsource the payroll processing part of the business.

According to the instruction in the course, what is the argument in favor of handling the growth in business by hiring another associate?

Select one:

a.
The additional associate would be available to handle some other tasks as well as processing payrolls.

b.
Hiring another employee would make the business larger and eligible for special consideration at banks.

c.
Processing payrolls is a routine action so it would be relatively easy to find another associate.

d. None of the provided answers is correct.

e.
Processing payrolls is a central part of the company’s service and must be kept under direct control.

f.
Hiring another associate will free some of the owners’ time to focus on other important matters.

(This question repeats information from the previous question.)

3. “My HR Expert” is a company founded by two YHC grads in response to their recognition that many small businesses do a sloppy job of managing HR issues. My HR Expert offers to handle all of a client company’s HR administrative matters including legal notifications, payroll, benefit management, payroll taxes, and management of the retirement contribution. My HR Expert is thriving, but the processing of payrolls for clients threatens to overwhelm the owners’ time. The owners are considering either hiring another associate or contracting with another company to outsource the payroll processing part of the business.

In the situation above, what is the proper argument for handling the growth by outsourcing?

Select one:

a.
Outsourcing is readily available, while hiring another associate could be difficult and take time.

b.
The contracted company will share the legal liability.

c.
The contracted company has focused attention and capital on processing payroll so it can do a better job.

d.
Processing payroll is a challenge, and it will be simpler to outsource the task.

e. None of the provided answers is correct.

f.
  Outsourcing will be less expensive.

4. Supply Chain Managers seek to enhance effectiveness and efficiency. What is meant by the “effectiveness” of a supply chain?

Select one:

a. None of the provided answers is correct.

b. An effective supply chain consumes fewer resources.

c. An effective supply chain is vertically integrated.

d. An effective supply chain reduces the time required for deliveries.

e. An effective supply chain consistently provides the proper items or services on time.

f. An effective supply chain provides items or services at the lowest price.

5. Purchasing managers often set an inventory level as the “Order Point” or “Reorder Point” for an item. In doing so, they consider “safety stock” (also called the buffer or buffer stock). What is safety stock?

Select one:

a. Safety stock is stock that may not be sold from inventory without a manager’s approval.

b. None of the provided answers is correct.

c. Safety stock is the additional stock needed to make an order match normal packaging levels.

d. Safety stock is an extra week’s usage of the item in inventory.

e. Safety stock protects employees from accident or injury.

f.   Safety stock is extra stock added to reduce the chance of stockouts.

6. TESTCORP operates 50 weeks a year with a two week maintenance downtime. It uses 3000 widgets a year.   There is no noticeable seasonal variation. TESTCORP buys Gizmos from GIZMO SUPPLY.   Typically, GIZMO SUPPLY is able to respond to an order and deliver ordered items within two weeks. Gizmos are not readily available from other suppliers. What is the proper order point for Gizmos using the methodology we covered in the course?

Select one:

a. 3000 Gizmos

b. 120 Gizmos

c. 240 Gizmos

d. 180 Gizmos

e. 60 Gizmos

f. 300 Gizmos

g. None of the provided answers is correct.

h. 360 Gizmos

7. TESTCORP conducts an annual inventory. A YHC grad joined the firm and argued that cycle counting would be superior. What argument would the YHC grad use based on this course?

Select one:

a. Cycle counting is better than annual inventories at finding errors.

b. An Annual inventory requires more computer support than a cycle count requires.

c. Annual inventories require a “sheet to shelf” counting method, but cycle counting uses “shelf to sheet”.

d. None of the provided answers is correct.

e. Cycle counting avoids the periods of significant inaccuracy built into annual inventory systems.

f.
Annual inventories require overtime pay in order to finish on time.

8. EOQ is based on a balance between what two costs?

Select one:

a. The set-up cost and the ordering cost

b. The set-up cost and the cost of holding.

c. The cost of ordering and the cost of the item

d. None of the provided answers is correct.

e. The cost of ordering and the cost of holding

f. The holding cost and the warehousing cost

9. TESTCORP uses 1300 Gizmos per year. The Reorder Point for Gizmos is 145.   Each Gizmo costs $21.00. TESTCORP uses a holding cost factor of 8% and an ordering cost value of $76. The set-up cost is $95. What is the EOQ for Gizmos?   (Round up to next whole number.)

Select one:

a. 1572 Gizmos

b. None of the provided answers is correct.

c. 343 Gizmos

d. 243 Gizmos

e. 474 Gizmos

f. 383 Gizmos

g. 272 Gizmos

10. TESTCORP implemented some improvements and reduced inventory losses. Accordingly, it modified its factor for holding costs and changed the factor from 8% to 6.5%. Will all EOQ order quantities decrease, increase or stay the same?

Select one:

a. Remain the same

b. Increase

c. Decrease

11. TESTCORP uses EOQ for 70% of the items in its warehouse. TESTCORP researched its factor for ordering costs and changed it from $76 to $87. What will happen to the total value of inventory in the warehouse once the changed ordering cost factor has been in effect for 6 months? (increase, decrease, remain generally unchanged)

Select one:

a. Remain generally the same

b. Increase

c. Decrease

12. YHC Corp. operates 250 days each year. It uses an 8 hour day. YHC uses EPQ for Widgets.   It uses 5200 Widgets each year.   It takes 10 minutes to produce one Widget. Widgets cost $6.00 each. The holding cost factor is 7%. The ordering cost is $78. Setting up the machines to make a batch of Widgets requires 3 hours of labor at $18 per hour plus $50 worth of disposable parts and fluids.

What is the EPQ batch size for Widgets? As Widgets are produced in sets of five, round your calculated answer up to the next whole number ending in 5 or 0. (Example: 17.32 becomes 20. 11.12 becomes 15. )

Select one:

a. 1480 Widgets

b. 1850 Widgets

c. 1510 Widgets

d. 1605 Widgets

e. None of the provided answers is correct.

f. 1955 Widgets

g. 2135 Widgets

h. 2245 Widgets

Answer 1

1. This could have become possible only when the company and suppliers worked together to reduce the costs. Option d is right.

2.e is correct because payroll processing is an internal and confidential matter which needs an internal associate and outsourcing is not advisable.

3.OPtion c is right as the contracted company, which has expertise in processing payrolls will be able to do a better job.

4 Option e is right , as an effective supply chain leads to providing the customers right item at right place and time.

Note: As per policies, I can answer first 4 parts of a question. Inconvenience is regretted.