Operations Management Flexible Version 10th Edition

A transportation problem has two origins: A can supply 20 units and B can supply 30 units. This problem has two destinations: C requires 25 units and D requires 35 units. Which of the following is true? A) The problem will require a dummy demand with a capacity of 10 units. B)

The typical full-service restaurant uses a product-focused process. Answer: FALSE Answer: FALSE Answer: FALSE The bullwhip effect refers to the increasing fluctuations in orders that often occur as orders move through the supply chain. Answer: TRUE Answer: TRUE Answer: TRUE The definition of quality adopted by The American Society for Quality is a customer-oriented definition. Answer: TRUE Answer: TRUE Answer: TRUE Some

Analytic decision making is based on logic and considers all available data and possible alternatives. Answer: TRUE Answer: TRUE Answer: TRUE A simulation model is designed to arrive at a single specific numerical answer to a given problem. Answer: FALSE Answer: FALSE Answer: FALSE Some degree of variability is present in almost all processes. Answer: TRUE Answer: TRUE Answer: TRUE JIT systems carry

When developing the operations strategy for a new manufacturing organization, one of the most important considerations is that it A) requires minimal capital investment B) utilizes as much automation as possible C) utilizes an equal balance of labor and automation D) supports the overall competitive strategy of the company E) none of the above Answer: D Answer:

How can global operations improve the supply chain? Answer: The supply chain can often be improved by locating facilities in countries where unique resources exist. Answer: The supply chain can often be improved by locating facilities in countries where unique resources exist. Answer: The supply chain can often be improved by locating facilities

A transportation problem requires exactly as many origins as destinations. Answer: FALSE Answer: FALSE Answer: FALSE A firm that successfully pursues a steeper-than-industry-average learning curve and manages costs down may still fail if, by underestimating a strong competitor, it fails to gain the added volume necessary for the learning curve to exist. Answer: TRUE Answer: TRUE Answer:

The critical path can be determined by use of either the "forward pass" or the "backward pass." Answer: FALSE Answer: FALSE Answer: FALSE Security is the determinant of service quality that means freedom from danger, risk, or doubt. Answer: TRUE Answer: TRUE Answer: TRUE A time-series model uses a series of past data points to make the forecast. Answer:

A firm uses graphical techniques in its aggregate planning efforts. Over the next twelve months (its intermediate period) it estimates the sum of demands to be 105,000 units. The firm has 250 production days per year. In January, which has 22 production days, demand is estimated to be 11,000 units.

Explain how a Pareto chart can identify the most important causes of errors in a process. Answer: There will generally be some causes with much higher frequencies than others. The frequency plot will clearly show which cause has the highest frequency. Answer: There will generally be some causes with much higher frequencies

Describe the state of capacity utilization in the motor carrier (trucking) industry. What, if anything, has been implemented by the industry to address the issue? Answer: The motor carrier industry averages a capacity utilization of only 50%. That underutilized space costs the U.S. economy over $31 billion per year. To improve

Marketing, Production, and __________ are the three functions that all organizations must perform to create goods and services. Answer: finance/accounting Answer: finance/accounting Answer: finance/accounting Most banks have changed from having a line in front of each teller to a system where one line feeds all tellers. Which system is better? Why? Answer: It is inherently

Waste is anything that does not add value, such as storage or inspection of items; waste also includes any activity that does not add value from the consumer's perspective. Answer: TRUE Answer: TRUE Answer: TRUE Break-even analysis is a powerful analytical tool, but is useful only when the organization produces a single product. Answer: FALSE Answer:

By convention, the top level in a bill of material is A) level 0 B) level 1 C) level T D) level 10 E) level 100 Answer: A Answer: A Answer: A Each R requires 2 of component S and 1 of part T. The lead time for assembly of R is 3 days. The lead time for the

The earliest application of learning curves appears in the work of architect Frank Lloyd Wright. Answer: FALSE Answer: FALSE Answer: FALSE Modular design exists only in tangible products; it makes no sense in services. Answer: FALSE Answer: FALSE Answer: FALSE Balk and renege are elements of queue discipline. Answer: FALSE Answer: FALSE Answer: FALSE An assembly chart shows an exploded view of

A new machine tool is expected to generate receipts as follows: $5,000 in year one; $3,000 in year two, nothing in the next year, and $2,000 in the fourth year. At an interest rate of 6%, what is the present value of these receipts? Is this a better present value

What is the practice of procuring from external sources services or products that are normally part of an organization? A) nearshoring B) farshoring C) offshoring D) outsourcing E) backsourcing Answer: D Answer: D Answer: D Which of the following statements regarding PERT analysis is true? A) Each activity has two estimates of its duration. B) Project variance is the sum of

Which of the following aggregate planning strategies is a "demand option"? A) changing price B) subcontracting C) varying production levels D) changing inventory levels E) using part-time workers Answer: A Answer: A Answer: A Industrial location analysis typically attempts to A) minimize costs B) maximize sales C) focus more on human resources D) avoid countries with strict environmental regulations E) ignore exchange rates and

In the logarithmic approach formula to compute the time for the Nth unit, TN = T1N, the exponent b is the learning curve rate L, expressed as a decimal. Answer: FALSE Answer: FALSE Answer: FALSE "How much inventory of this item should we have?" is within the critical decision area of managing quality. Answer: FALSE Answer:

High-quality products and services are the most profitable. Answer: TRUE Answer: TRUE Answer: TRUE An example of an intangible cost, as it relates to location decisions, is the quality of education. Answer: TRUE Answer: TRUE Answer: TRUE The term renewal has been created to describe the return of business activity to the purchasing firm. Answer: FALSE Answer: FALSE Answer: FALSE The transportation

The learning curve in the steel industry and the learning curve in heart surgery have both been estimated at 79 percent. Answer: TRUE Answer: TRUE Answer: TRUE Deming's writings on quality tend to focus on the customer and on fitness for use, unlike Juran's work that is oriented toward meeting specifications. Answer: FALSE Answer: FALSE Answer: FALSE Earliest

Simulation provides optimal solutions to problems. Answer: FALSE Answer: FALSE Answer: FALSE X-bar charts are used when we are sampling attributes. Answer: FALSE Answer: FALSE Answer: FALSE Profit-sharing is a motivation and incentive system where executives receive stock options. Answer: FALSE Answer: FALSE Answer: FALSE Service firms choose locations based, in part, on the revenue potential of a site. Answer: TRUE Answer: TRUE Answer: TRUE Process-focused

In a decision tree, the expected monetary values are computed by working from right to left. Answer: TRUE Answer: TRUE Answer: TRUE The transportation model is a special class of linear programming models. Answer: TRUE Answer: TRUE Answer: TRUE Processes can be environmentally friendly and socially responsible while still contributing to profitable strategies. Answer: TRUE Answer: TRUE Answer: TRUE The factor-rating method is

The __________ is used to determine the best pattern of shipments from several points of supply to several points of demand. Answer: transportation method Answer: transportation method Answer: transportation method Briefly explain how Product Lifecycle Management (PLM) impacts product design. Answer: PLM is an umbrella of software programs that attempts to bring together many phases

Given the following bill of material If the demand for product A is 50 units, what will be the gross requirement for component E? A) 50 B) 100 C) 150 D) 200 E) 300 Answer: A Answer: A Answer: A A quality loss function includes all of the following costs except A) the cost of scrap and repair B) the cost

Normal time equals the average observed time multiplied by the allowance factor. False Answer: FALSE Answer: FALSE Answer: FALSE Labor standards based on historical experience are the preferred method of choice. Answer: FALSE Answer: FALSE Answer: FALSE The World Trade Organization helps provide governments and industries around the world with protection from firms that engage in unethical conduct. Answer: TRUE Answer:

Aggregate planning in manufacturing ties organizational strategic goals to a production plan. Answer: TRUE Answer: TRUE Answer: TRUE Unfavorable exchange rates can offset other savings in a location decision. Answer: TRUE Answer: TRUE Answer: TRUE Johnsons rule sequences a set of jobs through two different machines or work centers in the same order. Answer: TRUE Answer: TRUE Answer: TRUE Price changes are

__________ is the maximum time that the product is available at each workstation. Answer: Cycle time Answer: Cycle time Answer: Cycle time What is a product-by-value analysis, and what type of decision does it help managers make? Answer: A product-by-value analysis lists products in descending order of their individual dollar contribution to the firm, as

One of the ways that Just-In-Time (or JIT) influences quality is that by reducing inventory, bad quality is exposed. Answer: TRUE Answer: TRUE Answer: TRUE Random number intervals are based on cumulative probability distributions. Answer: TRUE Answer: TRUE Answer: TRUE An advantage of work sampling is that it completely breaks down work elements. Answer: FALSE Answer: FALSE Answer: FALSE The idea behind

Which of the following is an example of competing on the basis of differentiation? A) A firm manufactures its product with less raw material waste than its competitors do. B) A firm's products are introduced into the market faster than its competitors' products are. C) A firm's distribution network routinely delivers its product

Reliability is the probability that a machine part or product will function properly for a specified time regardless of conditions. Answer: FALSE Answer: FALSE Answer: FALSE If setup times and costs can be reduced enough, the JIT ideal of "Lot Size = 1" can be achieved. Answer: TRUE Answer: TRUE Answer: TRUE One criterion for developing effective schedules

In the sequence of decisions that affect scheduling, __________ is (are) the immediate follower of the master schedule (or master production schedule). Answer: short-term schedules Answer: short-term schedules Answer: short-term schedules How are lean operations and the Toyota Production System (TPS) alike? How are they different? Answer: Lean operations and TPS are basically synonymous, and

Suppose that a three stage process in a nuclear reactor had reliability ratings of .98 at each station and that only one stage needed to be successful for the process to work. If the plant wants to establish 6-sigma standards, what % reliable redundant controls need to be added to

For a location decision, labor productivity may be important in isolation, but low wage rates are a more important criterion. Answer: FALSE Answer: FALSE Answer: FALSE Offshoring is the practice of procuring from foreign external sources services or products that are normally part of an organization. Answer: FALSE Answer: FALSE Answer: FALSE Work Breakdown Structure is a useful

FedEx chose Memphis, Tennessee, as its U.S. hub because A) the city is in the center of the U.S., geographically B) the airport has relatively few hours of bad weather closures C) it needed a means to reach cities to which it did not have direct flights D) the firm believed that a hub

Kanbans and andons are both elements of the visual workplace, because they are visual signals that replace printouts and paperwork. Answer: TRUE Answer: TRUE Answer: TRUE Demand (sales) forecasts serve as inputs to financial, marketing, and personnel planning. Answer: TRUE Answer: TRUE Answer: TRUE The moment-of-truth is the crucial moment between the service provider and the customer that

Many suppliers feel that having a variety of customers is better than being tied to long-term contracts with one customer. Answer: TRUE Answer: TRUE Answer: TRUE When innovation replaces cost as a firm's focus for location decisions, the presence of other state-of-the-art firms is a plus, not a negative, for the firm's competitiveness. Answer: TRUE Answer:

The concept of customizing in a warehouse layout A) is possible, but causes serious loss of oversight of the quality function B) cannot be considered seriously in today's high efficiency factories C) is theoretically sound, but several years away in practice D) is a new trend in value-added activities in warehouses E) none of the

The typical time horizon for aggregate planning is A) less than a month B) up to 3 months C) 3 to 18 months D) over one year E) over 5 years Answer: C Answer: C Answer: C A firm practices the pure chase strategy. Production last quarter was 1000. Demand over the next four quarters is estimated to be

Research data suggest that foreigners outsource far more services to the U.S. than American companies send abroad. Answer: TRUE Answer: TRUE Answer: TRUE Supply-chain decisions are not generally strategic in nature, because purchasing is an ordinary expense to most firms. Answer: FALSE Answer: FALSE Answer: FALSE To handle degeneracy, a very small quantity is placed in one of

The forecasting time horizon and the forecasting techniques used tend to vary over the life cycle of a product. Answer: TRUE Answer: TRUE Answer: TRUE An enlarged job has more responsibility than the same job enriched. Answer: FALSE Answer: FALSE Answer: FALSE Conforming to standards is the focus of the product-based definition of quality. Answer: FALSE Answer: FALSE Answer: FALSE Line employees

What term has been created to describe the return of business activity to the purchasing firm? A) renewal B) backsourcing C) reversal D) reversesourcing E) insourcing Answer: B Answer: B Answer: B A Type I error occurs when A) a good lot is rejected B) a bad lot is accepted C) the number of defectives is very large D) the population is worse

Whatever the outsourced product or service, agreements must specify ongoing __________ and expected __________. Answer: performance measures, outcomes Answer: performance measures, outcomes Answer: performance measures, outcomes What is the difference between natural and assignable causes of variation? Answer: Natural variations are those variations that are inherent in the process and for which there is no

Learning curves can only be applied to labor. Answer: FALSE Answer: FALSE Answer: FALSE Labor standards based on historical experience are relatively inexpensive to obtain. Answer: TRUE Answer: TRUE Answer: TRUE Scheduling optimization systems used in retail stores typically track customer traffic in 4-hour time increments. Answer: FALSE Answer: FALSE Answer: FALSE Substantial research has proved that the only successful method of

Define EDI. Answer: Electronic data interchange is a standardized data transmittal format for computerized communications between organizations. Answer: Electronic data interchange is a standardized data transmittal format for computerized communications between organizations. Answer: Electronic data interchange is a standardized data transmittal format for computerized communications between organizations. If a barbershop operator noted that Tuesday's

A manufacturer has the following jobs waiting on a single work center. The firm has not decided which dispatching rule to apply in order to prioritize the jobs and fix them into the schedule. Processing time in 15-minute time blocks and due date for each job are in the table below. a.

Firms may discover that, rather than adapting ERP to the way they do business, they have to adapt the way they do business to accommodate the ERP software. Answer: TRUE Answer: TRUE Answer: TRUE The key to effective supply-chain management is to get many suppliers to compete with each other, in order to drive down

Globalization of the location decision is the result of all of the following except A) market economics B) higher quality of labor overseas C) ease of capital flow between countries D) high differences in labor costs E) more rapid, reliable travel and shipping Answer: B Answer: B Answer: B A successful TQM program incorporates all of the following except

Because of the significance of labor in the scheduling of services, behavioral and social issues, wage and hour law, and union contracts all complicate the scheduling process. Answer: TRUE Answer: TRUE Answer: TRUE The shortest of all paths through the network is the critical path. Answer: FALSE Answer: FALSE Answer: FALSE On an ordinary graph, unit times decrease

Offshoring is the practice of moving a business process to a foreign country but retaining control of it. Answer: TRUE Answer: TRUE Answer: TRUE If the schedule calls for the production of 120 units per day and 480 minutes of production time are available per day, the maximum cycle time would be 4 minutes. Answer:

The allowance factor that increases normal time to standard time compensates for inadequate worker training and lack of worker dexterity. Answer: FALSE Answer: FALSE Answer: FALSE The transportation model calculates an optimal shipping system between a central facility and several outlying customers. Answer: FALSE Answer: FALSE Answer: FALSE A process that is in statistical control will always yield

The process strategy that is organized around processes to facilitate low-volume, high-variety processes is called a(n) __________. Answer: process focus Answer: process focus Answer: process focus The __________ is a mathematical technique used for finding the best location for a single distribution point that services several stores or areas. Answer: center-of-gravity method Answer: center-of-gravity method Answer: center-of-gravity

An optimal maintenance policy strikes a balance between the costs of breakdown and preventive maintenance so that the total cost of maintenance is at a minimum. Answer: TRUE Answer: TRUE Answer: TRUE The optimal solution to a linear programming problem is within the feasible region. Answer: TRUE Answer: TRUE Answer: TRUE Manufacturing organizations have ten strategic OM decisions,

Which of the following actions is consistent with the use of pure level strategy? A) use inventory to meet demand requirements B) use overtime to meet higher-than-average demand requirements C) vary production levels to meet demand requirements D) vary work force to meet demand requirements E) none of the above Answer: A Answer: A Answer: A The smaller the

The EMV of a decision with three states of nature is $50. If the profit/value of A is 1/3 of B and B is 1/3 of C, determine the profit from A if B and C have an equal chance of occurring that combined is twice the chance of A

In the M/M/1 waiting line model with an arrival rate of 2 per hour and a service rate of 6 per hour, the utilization factor for the system is approximately 0.333. Answer: TRUE Answer: TRUE Answer: TRUE A useful tactic for increasing capacity is to redesign a product in order to get more throughput. Answer:

A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable cost is $50 per unit. The firm sells the product for $200 per unit. What is the break-even point for this operation? What is the profit (or loss) on a demand of 200 units

In forward scheduling, jobs are scheduled as late as possible within the time allowed by the customer due dates. Answer: FALSE Answer: FALSE Answer: FALSE Finding an ideal mixed strategy is complicated by the huge number of possible strategies. Answer: TRUE Answer: TRUE Answer: TRUE Keiretsus offer a middle ground between few suppliers and vertical integration. Answer: TRUE Answer: TRUE Answer: TRUE Operations

A project organization works best for an organization when the project resides in only one of its functional areas. Answer: FALSE Answer: FALSE Answer: FALSE A waiting-line system has three parts: the size of the arrival population, the behavior of arrivals, and the statistical distribution of arrivals. Answer: FALSE Answer: FALSE Answer: FALSE "Phantom bills" are bills of

Work sampling and time studies are similar in that the analyst in both cases records the time taken by the worker to accomplish each step of the task. Answer: FALSE Answer: FALSE Answer: FALSE Gross material requirements do not take into account the amount of inventory on hand. Answer: TRUE Answer: TRUE Answer: TRUE Every network has at

Work sampling estimates the percent of time that a worker spends on various tasks. Answer: TRUE Answer: TRUE Answer: TRUE Closed-loop MRP systems allow production planners to move work between time periods to smooth the load or to at least bring it within capacity. Answer: TRUE Answer: TRUE Answer: TRUE The theory of comparative advantage states that you

Reducing the complexity of a product and improving a product's maintainability for use are activities of A) Product Lifecycle Management (PLM) B) product-by-value-analysis C) manufacturability and value engineering D) organizing for product development E) design for destruction (DFD) Answer: C Answer: C Answer: C The first step, and a key element, in the decision-making process is to A) consult a specialist B)

If demand exceeds supply in a transportation problem, the problem must be balanced by adding a dummy source with additional supply. Answer: TRUE Answer: TRUE Answer: TRUE In most real-world inventory problems, lead time and demand vary in ways that make simulation a necessity because mathematical modeling is extremely difficult. Answer: TRUE Answer: TRUE Answer: TRUE The graphical method

Therbligs are A) the smallest unit of time used in methods time measurement exercises B) the largest unit of time used in methods time measurement exercises C) the smallest unit of basic motion used in methods time measurement exercises D) the largest unit of basic motion used in methods time measurement exercises E) the smallest

Constraints are needed to solve linear programming problems by hand, but not by computer. Answer: FALSE Answer: FALSE Answer: FALSE One guideline for a retail layout is to locate high-draw items around the periphery of the store. Answer: TRUE Answer: TRUE Answer: TRUE If a manager conducting a time study needed an accuracy of 0.1 minutes, rather than

A pizza delivery company wants to improve its response time to gain a competitive advantage. Create a flowchart with 8 unique events from the time the customer calls in to the time the pizza is delivered. Answer: Student responses will vary but should follow a similar pattern. The flowchart will likely

A project being analyzed by PERT has 60 activities, 13 of which are on the critical path. If the estimated time along the critical path is 214 days with a project variance of 100, the probability that the project will take 224 days or more to complete is A) near zero B) 0.0126 C)

The degree or strength of a relationship between two variables is shown by the A) alpha B) mean C) mean absolute deviation D) correlation coefficient E) cumulative error Answer: D Answer: D Answer: D A product-oriented layout would be most appropriate for which one of the following businesses? A) fast food B) steel-making C) insurance sales D) clothing alterations E) a grocery store Answer: B Answer:

__________ is the management of activities that procure raw materials, transform those materials into intermediate goods and final products, and deliver the products through a distribution system. Answer: Supply-chain management Answer: Supply-chain management Answer: Supply-chain management Describe how supervisors might need to change their roles after organizing self-directed teams. Answer: Supervisors must release some control and learn

A product is composed of a series connection of four components with the following reliabilities. What is the reliability of the system? Answer: The reliability of the system is R = 0.90 * 0.95 * 0.97 * 0.88 = 0.73 Answer: The reliability of the system is R = 0.90 * 0.95

A location decision for a traditional department store (Macy's) would tend to have a(n) A) cost focus B) labor focus C) revenue focus D) environmental focus E) education focus Answer: C Answer: C Answer: C The transportation method, when applied to location analysis A) minimizes total fixed costs B) minimizes total production and transportation costs C) minimizes total transportation costs D) maximizes revenues E)

Predetermined time standards are an outgrowth of basic motions called A) flow diagrams B) activity charts C) SAE standards D) man-machine charts E) therbligs Answer: E Answer: E Answer: E Which of the following is false regarding learning curves? A) Learning curves differ from company to company. B) Learning curves can always be used for indirect labor. C) Changes in personnel can

UPS may run the "tightest ship in the shipping business," but they got that high level of efficiency without time standards, because their contract with the Teamsters Union forbids them. Answer: FALSE Answer: FALSE Answer: FALSE Logistics management can provide a competitive advantage through improved customer service. Answer: TRUE Answer: TRUE Answer: TRUE Outsourcing is a form of specialization

What are the goals of JIT partnerships? Answer:1. Removal of unnecessary activities, such as receiving, incoming inspection, and paperwork related to bidding, invoicing, and payment.2. Removal of in-plant inventory by delivery in small lots directly to the using department as needed.3. Removal of in-transit inventory by encouraging suppliers to locate nearby

The customer may participate in the design of, and in the delivery of, services. Answer: TRUE Answer: TRUE Answer: TRUE A value-stream map includes both (1) inventory quantities, and (2) symbols for customers and suppliers. Answer: TRUE Answer: TRUE Answer: TRUE Robust design is a method that ensures that small variation in production or assembly does not adversely

Distribution resource planning (DRP) is A) a transportation plan to ship materials to warehouses B) a time-phased stock replenishment plan for all levels of a distribution network C) a shipping plan from a central warehouse to retail warehouses D) material requirements planning with feedback loop from distribution centers E) a material requirements planning package used

A part that connects two levels should have a distance between the two holes of 4". It has been determined that x-bar and R-charts should be set up to determine if the process is in statistical control. The following ten samples of size four were collected. Calculate the control limits, plot

Because service firms do not inventory their output, pure chase strategy is not appropriate. Answer: FALSE Answer: FALSE Answer: FALSE Labor cost and labor availability often drive the location decision in the call center industry. Answer: TRUE Answer: TRUE Answer: TRUE A fast-food retailer that acquired a spice manufacturer would be practicing backward integration. Answer: TRUE Answer: TRUE Answer: TRUE JIT brings

Which of the following is not a reason for variability? A) Employees, machines, and suppliers produce units late. B) Customer demand is unknown. C) Employees, machines, and suppliers produce units that conform to standards. D) Engineering drawings are inaccurate. E) Drawings or specifications are incomplete. Answer: C Answer: C Answer: C Which of these organizations is likely to have

Flow diagrams are used to analyze A) movement of people and materials B) utilization of an operator and machine C) body movements D) time taken by various activities E) unnecessary micro-motions Answer: A Answer: A Answer: A Doing nothing would yield how much profit if favorable market conditions prevail according to the following decision table? A) $5,000 B) $20,000 C) -$10,000 D) $0 E)

What is the cumulative probability distribution of the following variable? A) 1 B) .5 C) 10 D) .2 E) none of the above Answer: A Answer: A Answer: A The president of a consulting firm wants to minimize the total number of hours it will take to complete four projects for a new client. Accordingly, she has estimated the

A bank office with five tellers, each with a separate line of customers, exhibits the characteristics of a multi-phase queuing system. Answer: FALSE Answer: FALSE Answer: FALSE Outsourcing refers to transferring a firm's activities that have traditionally been internal to external suppliers. Answer: TRUE Answer: TRUE Answer: TRUE The Cpk index measures the difference between desired and actual

Therbligs A) were invented by Frederick W. Taylor B) were used during the scientific management era, and are no longer in use C) are hyperactive rodent-like pets, whose name is associated with time standards D) were named by Frank Gilbreth E) none of the above Answer: D Answer: D Answer: D There are three equally likely states of nature

Identify, in order, the five steps required to implement the Monte Carlo simulation technique. Answer: The steps of the Monte Carlo simulation technique are: set up a probability distribution for important variables; build a cumulative probability distribution for each of these variables; establish an interval of random numbers for each variable;

What are the advantages of using PERT and CPM? Answer: The advantages include its usefulness for scheduling and controlling large projects, its straightforward concept, its graphical displays of relationships between activities, its critical path and slack time analysis, its ability to document processes, its wide range of applicability, and its usefulness

For a linear programming problem with the constraints 2X + 4Y =<100 and 1X + 8Y =<100, two of its corner points are (0, 0) and (0, 25). Answer: FALSE Answer: FALSE Answer: FALSE Group technology enables the grouping of parts into families based on similar processing requirements. Answer: TRUE Answer: TRUE Answer: TRUE Because service firms do

Which of the following is a measure of queue performance? A) utilization factor B) average queue length C) probability of a specific number of customers in the system D) average waiting time in the line E) all of the above Answer: E Answer: E Answer: E What lot-sizing technique is generally preferred when inventory holding costs are extremely high? A)

The transportation model seeks satisfactory, but not necessarily optimal, solutions for shipping goods from several origins to several destinations. Answer: FALSE Answer: FALSE Answer: FALSE Focus forecasting tries a variety of computer models and selects the best one for a particular application. Answer: TRUE Answer: TRUE Answer: TRUE A c-chart is appropriate to plot the number of flaws

A production line is to be designed to make 500 El-More dolls per day. Each doll requires 11 activities totaling 16 minutes of work. The factory operates 750 minutes per day. The required cycle time for this assembly line is A) one-half minute B) one and one-half minutes C) two minutes D) 5,500 minutes E)

Martin Manufacturing has implemented several programs to improve its productivity. They have asked you to evaluate the firm's productivity by comparing this year's performance with last year's. The following data are available: Has Martin Manufacturing improved its productivity during the past year? Answer: Productivity improved in all three categories this year; utilities

One advantage of exponential smoothing is the limited amount of record keeping involved. Answer: TRUE Answer: TRUE Answer: TRUE A process-oriented layout is the traditional way to support a product differentiation strategy. Answer: TRUE Answer: TRUE Answer: TRUE Experience curves may be valid for industrial applications, but have no role in services such as health care procedures. Answer: FALSE Answer:

An assembly drawing lists the operations necessary to produce the component. Answer: FALSE Answer: FALSE Answer: FALSE Production technology has had a major impact on services, but as yet there has been little reduction in service labor requirements. Answer: FALSE Answer: FALSE Answer: FALSE Experience differentiation is an extension of product differentiation, accomplished by using people's five senses

Maintaining a stable workforce generally results in the firm paying higher wages than a firm that follows demand. Answer: FALSE Answer: FALSE Answer: FALSE Degeneracy in a transportation problem is when no closed path exists for evaluating an unused cell. Answer: TRUE Answer: TRUE Answer: TRUE ISO 9000 has evolved from a set of quality assurance standards toward

Tiger Island Fabricators, which builds offshore oil platforms, has been experiencing problems with its profiling machine, a computer-driven device that cuts the ends of pipe so that it can be welded to another pipe, as shown in the data below. Each time a machine breaks down, the company loses about $3,000. If

Which of the following are the primary functions of all organizations? A) production/operations, marketing, and human resources B) marketing, human resources, and finance/accounting C) sales, quality control, and production/operations, D) marketing, production/operations, and finance/accounting E) research and development, finance/accounting, and purchasing Answer: D Answer: D Answer: D Regal Marine A) no longer builds boats with any wooden parts B) designs and

If the mean time between failures has been calculated to be 2,000 hours, then FR(N) = 0.0005 failures/unit-hour.. Answer: TRUE Answer: TRUE Answer: TRUE The expected value of each course of action in a decision tree is determined by starting at the beginning of the tree (the left-hand side) and working toward the end

One goal of JIT partnerships is the removal of in-plant inventory by delivery in small lots directly to the using department as needed. Answer: TRUE Answer: TRUE Answer: TRUE When using the stepping-stone method, the improvement index for an unused cell equals the shipping cost associated with that cell. Answer: FALSE Answer: FALSE Answer: FALSE An improvement in

__________ is a system providing some portion of any profit for distribution to employees. Answer: Profit sharing Answer: Profit sharing Answer: Profit sharing What are the three versions of online catalogs? Answer: The three versions of online catalogues are: (1) catalogs provided by vendors, (2) catalogs provided by intermediaries, and (3) exchanges provided by buyers. Answer:

The four phases of the product life cycle are incubation, introduction, growth, and decline. Answer: FALSE Answer: FALSE Answer: FALSE In general, the lot-for-lot approach should be used whenever economical. Answer: TRUE Answer: TRUE Answer: TRUE Some business activities, such as human resources and legal processes, cannot be outsourced. Answer: FALSE Answer: FALSE Answer: FALSE One motive for using demand-influencing aggregate planning

__________ is a means of determining staffing policies dealing with employment stability and work schedules. Answer: Labor planning Answer: Labor planning Answer: Labor planning __________ is a measure of overall forecast error for a model. Answer: MAD or Mean Absolute Deviation Answer: MAD or Mean Absolute Deviation Answer: MAD or Mean Absolute Deviation A distribution of service times

The __________ is the set of all feasible combinations of the decision variables. Answer: feasible region Answer: feasible region Answer: feasible region Suppose the following random numbers (1, 34, 22, 78, 56, 98, 00, 82) were selected during a Monte Carlo simulation that was based on the chart below. What was the average demand

A waiting line or __________ is where items or people are in a line awaiting service; __________ is a body of knowledge about waiting lines. Answer: queue, queuing theory Answer: queue, queuing theory Answer: queue, queuing theory Explain, in your own words, how backward scheduling and forward scheduling differ. Answer: Forward scheduling starts the schedule

One of the disadvantages of simulation is that it A) does not allow for very complex problem solutions B) is not very flexible C) may be very expensive and time-consuming to develop D) is very limited in the type of probability distribution that can be used E) interferes with the production systems while the program

Psychological factors have little relevance in the design of assembly line jobs since they involve physical products and production technology. Answer: FALSE Answer: FALSE Answer: FALSE The assembly line is a classic example of a repetitive process. Answer: TRUE Answer: TRUE Answer: TRUE All forms of simulation are based on probability or chance. Answer: FALSE Answer: FALSE Answer: FALSE The larger the standard

Some of the operations-related activities of Hard Rock Caf include designing meals and analyzing them for ingredient cost and labor requirements. Answer: TRUE Answer: TRUE Answer: TRUE Lists have been developed that rank countries on issues such as "competitiveness" and "corruption." Answer: TRUE Answer: TRUE Answer: TRUE The supply-chain systems that result from using ERP in the grocery

The word "finite" in finite capacity scheduling refers to the use of finite or limited capacity rather than unlimited capacity. Answer: TRUE Answer: TRUE Answer: TRUE One effective use of simulation is to study problems for which the mathematical models of operations management are not realistic enough. Answer: TRUE Answer: TRUE Answer: TRUE Demand cycles for individual products can

Operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Answer: TRUE Answer: TRUE Answer: TRUE A simulation is "Monte Carlo" when the elements of a system being simulated exhibit chance in their behavior. Answer: TRUE Answer: TRUE Answer: TRUE Simulation models are inexpensive to design

Productivity is the ratio of __________ to __________. Using this relationship, productivity can be improved by __________ or __________. Answer: outputs, intputs; reducing inputs while holding outputs constant; increasing outputs while holding inputs constant. Answer: outputs, intputs; reducing inputs while holding outputs constant; increasing outputs while holding inputs constant. Answer: outputs, intputs; reducing

A manufacturing firm wants to apply 6-sigma standards to its automated tolerance-check process. Suppose that each scanner makes the correct decision only 50% of the time, however only 1 correct decision by any scanner makes the entire process a success. How many scanners are needed to ensure 6-sigma quality? Answer: 3.4/1000000=.5^X

In a regression equation where Y is demand and X is advertising, a coefficient of determination (R2) of .70 means that 70% of the variance in advertising is explained by demand. Answer: FALSE Answer: FALSE Answer: FALSE In PERT analysis, the identification of the critical path can be incorrect if a noncritical activity takes

__________ allowances are those that include the distance from employees to restrooms, water fountains, and other facilities. Answer: Personal time Answer: Personal time Answer: Personal time Consider the following bill of material. Forty units of Product A are needed. Assuming no on-hand inventory, and no scheduled receipts, explode the bill of material. Answer: Item A:

In linear programming, if there are three constraints, each representing a resource that can be used up, the optimal solution must use up all of each of the three resources. Answer: FALSE Answer: FALSE Answer: FALSE When developing the standard time for a task, the elements that make up the task must use the

Neither the northwest corner rule nor the intuitive method considers shipping cost in making initial allocations. Answer: FALSE Answer: FALSE Answer: FALSE Shortening the project's duration by deleting unnecessary activities is called "project crashing." Answer: FALSE Answer: FALSE Answer: FALSE In several industries, online exchanges have been created by buyers. Answer: TRUE Answer: TRUE Answer: TRUE The work-center master file contains data

Southwest Airlines' core competence is operations. Answer: TRUE Answer: TRUE Answer: TRUE Blanket orders are a long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship. Answer: TRUE Answer: TRUE Answer: TRUE A finite population waiting line model has an average service time T of 100 minutes and an average time

Cross-docking processes items as they are received, rather than placing them in storage; this helps explain why "warehouses" are now called "distribution centers." Answer: TRUE Answer: TRUE Answer: TRUE With the many-suppliers strategy, the order usually goes to the supplier that offers the best quality. Answer: FALSE Answer: FALSE Answer: FALSE In queuing problems, arrival rates are generally described

Ten high-intensity bulbs are tested for 100 hours each. One failed at 40 hours; another failed at 70 hours; all others completed the test. Calculate FR(%), FR(N), and MTBF. Answer: FR(%)=2/10 or 20%; FR(N)=2/910 or .0022; MTBF = 455 hours Answer: FR(%)=2/10 or 20%; FR(N)=2/910 or .0022; MTBF = 455 hours Answer: FR(%)=2/10

The first product took 10 hours to build and the learning curve is estimated to be 90%. How long with it take to make the fourth unit? A) 10 hours B) 9 hours C) 8.1 hours D) 7.5 hours E) none of the above Answer: C Answer: C Answer: C A shop wants to increase capacity by adding a

To measure the voltage of batteries, one would sample by attributes. Answer: FALSE Answer: FALSE Answer: FALSE A transportation problem with a total supply of 500 and a total demand of 400 will have an optimal solution that leaves 100 units of supply unused. Answer: TRUE Answer: TRUE Answer: TRUE Cycle time is the maximum time that the product

Operations managers will need to consider ethical and social responsibility issues when location decisions involve A) child labor issues B) sweatshop conditions C) allegiance to the firm's current location D) corruption E) all of the above Answer: E Answer: E Answer: E Which of the following characteristics best describes repetitive focus? A) It uses sophisticated scheduling to accommodate custom

A linear programming problem has two constraints 2X + 4Y =<100 and 1X + 8Y =<100, plus nonnegativity constraints on X and Y. Which of the following statements about its feasible region is true? A) There are four corner points including (50, 0) and (0, 12.5). B) The two corner points are

In queuing problems, the term "renege" refers to the fact that some customers leave the queue before service is completed. Answer: TRUE Answer: TRUE Answer: TRUE The arithmetic approach (or successive doubling approach) to learning curve calculations allows us to determine the hours required for any unit. Answer: FALSE Answer: FALSE Answer: FALSE Gantt charts are useful for

A waiting line has a(n) __________ population if, as arrivals take place, the likelihood of additional arrivals is decreased. Answer: finite or limited Answer: finite or limited Answer: finite or limited You have read that in JIT and lean production the optimum lot size is one, with some exceptions for packaging and physical limitations.

What is the purpose of the Operating Characteristics curve? Answer: An OC curve plots the probability of acceptance against the percentage of defects in the lot. It therefore shows how well an acceptance sampling plan discriminates between good and bad lots. Answer: An OC curve plots the probability of acceptance against the

A dependent demand item is so called because its demand is dependent on customer preferences. Answer: FALSE Answer: FALSE Answer: FALSE The MTBF (mean time between failures) is calculated as the reciprocal of the number of failures during a period of time. Answer: TRUE Answer: TRUE Answer: TRUE One reason to study operations management is to learn how

Keeping a product generic as long as possible before customizing is known as A) postponement B) keiretsu C) vendor-managed inventory D) forward integration E) backward integration Answer: A Answer: A Answer: A The visual workplace A) uses low-cost visual devices to share information B) is an effective means of rapid communication in a dynamic workplace C) replaces difficult-to-understand paperwork D) eliminates non-value

A project manager bases his time and labor estimates on a learning curve of 86%. The actual learning curve turns out to be 89%. The manager, because of the decreased learning, will complete his project in more time and with more labor use. Answer: TRUE Answer: TRUE Answer: TRUE A naive forecast for September

In which of the following has LP been applied successfully? A) minimizing distance traveled by school buses carrying children B) minimizing 911 response time for police patrols C) minimizing labor costs for bank tellers while maintaining service levels D) determining the distribution system for multiple warehouses to multiple destinations E) all of the above Answer: E Answer:

A time-study procedure involves timing a sample of worker's performance and using it to set a standard. Answer: TRUE Answer: TRUE Answer: TRUE A waiting-line system with one waiting line and three sequential processing stages is a multi-channel single-phase system. Answer: FALSE Answer: FALSE Answer: FALSE Process maps use distance, but not time, to show the movement of

Compare the chase versus level strategy options. Answer: The chase strategy sets production equal to forecasted demand, using varying workforce levels, overtime, idle time, part-time employees, or subcontracting. Its main advantage is low inventory levels. The level strategy maintains a constant output rate, production rate, or workforce level over the planning

A financial advisor is about to build an investment portfolio for a client who has $100,000 to invest. The four investments available are A, B, C, and D. Investment A will earn 4 percent and has a risk of two "points" per $1,000 invested. B earns 6 percent with 3 risk

A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites. The score for Gary Mall is __________ and the score for Belt Line is __________. A) 120; 120 B) 22; 24 C) 18; 120 D) 34; 28 E)

The objective of the make-or-buy decision is to help identify the products and services that can be obtained externally. Answer: TRUE Answer: TRUE Answer: TRUE The maximax criterion of decision making requires that all decision alternatives have an equal probability of occurrence. Answer: FALSE Answer: FALSE Answer: FALSE When implemented as a comprehensive manufacturing strategy, JIT, TPS, and