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Which of the following would probably not benefit from the use of critical path scheduling? a) constructing a new bridge over the Mississippi River b) moving the company’s credit card center to a new city c) building a new natural […]

Vertical integration is a good strategic option for a manufacturing company when a) it needs several different parts and subassemblies b) it makes many different products c) its facilities are obsolete d) it uses distributed processing e) it needs one […]

Studies have shown that combining forecasts can lead to forecast accuracy that is better than that of the individual forecasts. Companies that compete based on flexibility often cannot compete on cost. Answer: True A process can be considered in a […]

The most important factor in the success or failure of TQM efforts is a) Getting started quickly b) The use of statistical process control c) The genuineness of the organization’s commitment d) The use of cause-and-effect diagrams e) Employee training […]

Which company is widely considered to be the leader of just-in-time production? a) Ford b) Timex c) Gateway d) Toyota e) Sony In Excel, how can one select cells in a range without using the mouse? a) Ctrl+Arrow Keys b) […]

Companies that have low customer contact and are capital intensive, yet provide a service, are called service factories. A useful tool for translating customers’ everyday language into specific technical requirements is Quality Function Deployment. Answer: True The MATCH function in […]

Logistics includes what two major management functions? Why are services more complex to design than manufactured goods? Answer: Services produce intangible products produced with high levels of customer contact. The probability of rejecting a lot or batch of products whose […]

Which of the following does not have a button for automatic insertion into the custom footer box? a) file name b) worksheet name c) author name d) date e) time The Answer Report Target Cell, Adjustable Cell, and Constraint sections […]

The items listed below are stored in a one-dock warehouse. Which of them should be stored at the very front (closest to the dock)? a) ‘Star Trek’ videos b) ballet videos c) Tom Cruise videos d) ‘The Simpsons’ videos e) […]

An excellent procedure that can be used with location factors that are qualitative is the factor rating method. Firms should balance the flow rather than the process. Answer: False A min-max inventory system implies a larger average inventory than a […]

In what company were the Hawthorne Studies conducted? a) Westinghouse b) General Electric c) Hawthorne Incorporated d) General Motors e) Western Electric A firm has had the following order history over the last 4 months: What is the weighted moving […]

The financial plan indicates the sources and uses of funds, expected cash flows, anticipated profits and projected budgets. A Gantt chart is a basic scheduling tool for low-volume systems. Answer: True Predetermined time data is a published database of elemental […]

Overtime is the most common method for increasing output capacity. Even though loss of customer goodwill is an intangible cost, it is considered a type of shortage cost. Answer: True Output-based incentive systems are based on the assumption that some […]

Which forecasting method seeks to develop a consensus among a group of experts? a) Market research b) Executive opinion c) Delphi method d) Naïve method e) Gamma method If a company carries 13 weeks of supply, what is the inventory […]

What are the steps involved in using network planning techniques? While Operations Management focuses on privately−owned firms, governments provide many services and some goods, like: Answer: postal service; family, social, and aged assistance and care, health care, transportation, safety and […]

Consider the following partial MPS record. Beginning inventory is 80 units. When should the first MPS shipment be scheduled? a) period 1 b) period 2 c) period 3 d) period 4 e) period 5 Consider the following partial MPS record. […]

A cycle is typically the most difficult data pattern to predict. The first level of capacity planning is at the strategic level. Answer: True Job design ensures that each employee’s activities are closely timed. Answer: False Group Technology has the […]

Removing safety time from the individual activities and putting the total safety time at the end of the critical path creates a(n) ___________________. a) project safety net b) project buffer c) overconfident project manager d) activity shortage e) larger number […]

In making specific changes to JIT manufacturing, which of the following steps should come first? a) reduce lot sizes and lead times b) switch to pull production c) reorganize workplace d) reduce setup times e) implement layout changes In the […]

Lot-for-lot ordering is commonly used in materials requirements planning systems. A firm can hedge exchange rate risk by establishing links with suppliers in a variety of countries. Answer: True The single-period inventory model objective is to balance the sale of […]

We use _____________________ time estimates when we can make a reliable estimate. a) variable b) probabilistic c) estimated d) deterministic e) cumulative What movement started with the publication of the results of the Hawthorne studies? a) scientific management b) human […]

Johnson Enterprises sells no-spill syrup in bottles. Management is evaluating four different machines with standard deviations of .006, .01, .022, and .04 ounces for Machines A, B, C, and D, respectively. The specification limits 11.95 and 12.05 ounces. Which machines […]

Suppose that you are using the three-period simple moving average method to forecast sales, and sales have been increasing by 10% every period. Then your forecasts will be lower than the actual sales. A common practice of scenario analysis is […]

Suppose that Sally’s company uses exponential smoothing to make forecasts. Further suppose that last period’s demand forecast was for 20,000 units and last period’s actual demand was 21,000 units. Sally’s company uses a smoothing constant (α) equal to 40%. What […]

In TQM the role of the employee is very similar to earlier requirements. If using slack per remaining operations (S/RO) as the scheduling rule, the job with the least slack per remaining operations has the highest priority. Answer: True Backward […]

Operations management is the central core function of every company. Planalytics is a company that helps businesses use weather data to make their business plans. Answer: True Marketing is not highly affected by layout planning. Answer: False Benchmarking should only […]

The projected available quantity row in an MPS record keeps track of how many units are available at the beginning of each time period. Outsourcing instead of pursuing vertical integration is often a good strategic option for a firm using […]

When evaluating location alternatives the firm should look at a) only qualitative factors b) only quantitative factors c) both qualitative and quantitative factors d) weighted average values e) decision support models only In break-even analysis, what is the break-even point? […]

Disadvantages of globalization include political risks for countries with unstable governments. The amount of outsourcing in industry is increasing. Answer: True CPFR is an iterative process. Answer: True Gross requirements for finished products are taken from the order entry file. […]

A control chart is a schematic diagram of the sequence of steps involved in an operation or process. JIT considers waste anything that does not add value. Answer: True Federal Express subcontracts its work overload to other firms during peak […]

The aggregate plan is usually updated and reevaluated monthly by the operations group. Economic feasibility is the degree to which the job adds value and the cost of performing the job done are profitable for the company. Answer: True Essay […]

Given the following data: The end product J is made from components K and L. Component K is made from M and N. The authorized MPS calls for 10 J to be completed in week 2, 30 J to be […]

Productivity gains in the service sector have been much lower than that of manufacturing. When possible, managers should purchase and use CRAFT because it gives an optimal solution to the facility layout problem. Answer: False A key outcome of JIT […]

To add Cell Comments for a cell in Excel, right-click and choose ____________________. a) Insert Comment b) Format Cells’¦ c) Hyperlink’¦ d) Insert’¦ e) Pick From List’¦ Which of the following can be calculated for an activity once ES, EF, […]

What costs are considered in the basic EOQ model? a) annual ordering costs + annual holding costs b) annual purchasing costs + annual holding costs c) annual ordering costs + annual holding costs + annual shortage costs d) annual purchasing […]

OM’s transformation role is to add value. Value added is a) performing activities well for the least possible cost b) the net decrease between output product value and input material value c) increasing product value in the first stage d) […]

JIT manufacturing cannot succeed if set-up costs are too high. For the general warehouse layout problem, the department with the highest ratio of trips to areas needed should be located closest to the dock. Answer: True An error in replenishment […]

If customer service is important to the company, average job lateness is probably a more relevant measurement than average job tardiness. A small range and large standard deviation imply that data observations are closely clustered around the mean. Answer: False […]

Risk costs are obsolescence, damage deterioration, theft, insurance and taxes. An increase in the desired confidence level will decrease the number of observations necessary in a time study. Answer: False Statistical packages such as SPSS, SAS, and Minitab, are types […]

Aggregate planning, master production scheduling, and rough-cut capacity affect a select area of the organization. Sensitivity reports show what will happen if certain problem parameters are changed from their current values. Answer: True If OT = the mean observed time, […]

Scheduled receipts are replenishment orders that have been placed but not yet received. Efficiency means being able to perform most activities. Answer: False In a fixed position layout, resources are fixed in various locations and the products move from one […]

George Dantzig developed the Simplex Method in 1947. The cost of space in Silicon Valley is higher now than it was in the late 1990s. Answer: False An order released to the shop floor authorizes withdrawal of the needed materials […]

Consider the following partial MPS record. Beginning inventory is 0 units. The firm uses a fixed order quantity of 60 units. Fill out the last two rows of the table. The items listed below are stored in a one-dock warehouse. […]

An action notice is generated ________________________________________. a) for planned orders in any period b) only for orders that are to be released to the shop floor c) only for movements to and from the warehouse d) only when marketing needs […]

Management has decided to add capacity incrementally in smaller chunks as needed, rather than purchasing one large facility. This decision ____________________. a) is very risky b) will result in low initial costs c) will ultimately result in lower costs per […]

Which of the following is equivalent to ‘=SUMPRODUCT(A1:A4,B2:B6)’? a) A1*A4 + B2*B6 b) A1*B2 + A2*B3 + A3*B4 + A4*B5 c) (A1+A4)*(B2+B6) d) (A1+A2+A3+A4)*(B2+B3+B4+B5+B6) e) This is an invalid function. In Excel, which function returns the number of cells containing […]

Local wage rates, presence of local unions, and attitudes of local workers would be major factors for location decisions for businesses that ________________________. a) are labor intensive b) have perishable products c) have high transportation costs d) have need for […]

The backlog at a work center increases when the work center receives more work than it finishes. The reorder point is used in determining the order quantity in the periodic review system. Answer: False In six-sigma programs, individuals are given […]

Increasing the level of responsibility of a job by adding planning and coordination tasks is ___________. a) job enlargement b) job rotation c) job involvement d) job enrichment e) job backward integration If using CR as the priority rule, which […]

Time series models are generally more difficult to use than causal models. Inventory turnover is the reciprocal of weeks of supply. Answer: False The first mathematical model for inventory management was developed by Elton Mayo. Answer: False If the number […]

Using the Tibrewala, Phillippe, and Brown technique for a Monday through Sunday work week a regular, full time employee can end up with a Sunday-Monday set of days off. Changes to the MPS that are requested inside of the demand […]

In Excel, when moving a formula to another cell, it is better to use Copy and Paste rather than Cut and Paste. Rationing and shortage gaming occur when supply exceeds demand. Answer: False The TOC focuses on correct placement of […]

Which of the following is true? a) A line with a lower cycle time has greater output than one with a higher cycle time. b) A line with a higher cycle time has greater output than one with a lower […]

Frank’s umbrella corporation is designing a kanban system. They know that they are expected to produce 100 umbrellas per hour. They’ve also determined that a key external resource takes 30 minutes to deliver the required material once an order has […]

Suppose that the formula in cell C8 is ‘=H2+$P6’. If cell C8 is copied to cell E7, the formula in cell E7 will be ‘=J1+R5’. Whenever demand exceeds supply, the company experiences a lost sale. Answer: False In Excel, you […]

In the ‘liquid’ portion of the MPS, the master scheduler generally has the authority to approve what changes? a) product mix b) changes needing extra resources (already authorized by the aggregate plan) c) product mix and changes needing extra resources […]

What occurs when a customer enters one line and then switches to a different line in an effort to reduce his or her waiting time? a) balking b) walking c) reneging d) vacillating e) jockeying Which of the following is […]

The first military use of management science was solving complex problems of logistics control, weapons system design, and deployment of missiles during _____________________. a) World War I b) World War II c) The Korean War d) The Vietnam War e) […]

What is the statistic that measures the direction and strength of the linear relationship between two variables? a) r2 b) Coefficient of variation c) Variance d) Coefficient of kurtosis e) Correlation coefficient What are two of the most popular facility […]

According to the textbook, the way to reduce the ppm defective is to a) change product specifications b) increase process capability c) increase the number of inspection points. d) employ more inspectors e) increase process throughput Capacity planning is difficult […]

An example of an output measure of capacity is labor hours. Shipments should spend less than 24 hours in a crossdock. Answer: True Capacity decisions at the strategic level include the size of workforce. Answer: False Solving a decision tree […]

What term tells us how frequently a product is completed? a) output rate b) task time c) station time d) cycle time e) output time If the upper control limit for a c-chart is 28 and the lower control limit […]

What are the three elements of the service package? a) physical goods, sensual benefits, and psychological benefits b) sales, return policy, and warranty c) customer service, return policy, and warranty d) kindness, information provision, and speed e) physiological benefits, sensual […]

ERP systems provide _____ and _____ benefits. a) tangible, HR b) intangible, marketing c) marketing, operation d) tangible, intangible e) CEO, CFO Which of the following is true regarding the relative predictability of the cycle of new product introductions? a) […]

What is the amount by which the efficiency of a production line falls short of 100%? a) balance delay b) efficiency deficiency c) efficiency delay d) balance shortfall e) percentage deficiency How can both the JIT and EOQ inventory theories […]

With probabilistic time estimates for activities, (m) denotes the mean time. ‘Job enrichment’ is an approach in which workers are given a larger portion of the total task to do. Answer: False The objective of supply chain management is to […]

Magnatree is a large company that has been working on a new product. This product has tremendous potential, but Magnatree must move quickly. They have decided that they will introduce the product in two months and have already started developing […]

Which one of these refers to reducing the number of parts and features of the product whenever possible? a) design automation b) design specification c) design reduction d) design standardization e) design simplification In inventory management, when discussing customer service […]

Which of the following is a measure of how long after the due date the job is completed? a) job belatedness b) mean flow time c) makespan d) job overdueness e) job tardiness Something you would not expect to see […]

A company’s accepted time studies are stored in a(n) ____________ for possible future use. a) file cabinet b) time study vault c) warehouse d) jar e) elemental time database Consider a packaged milk products supply chain. A lumber company provides […]

A feasible solution to an optimization problem is a particular combination of decision variables that satisfies some of the constraints. Spreadsheet flexibility implies that the user should enter each input only once in the model. Answer: True The explosion process […]

Moving average forecasts with a larger number of observations are more responsive than those with a smaller number of observations. One of the most important trends in companies today is competition based on time. Answer: True The Delphi method of […]

Which of the following is considered a ‘quality guru?’ a) Elton Mayo b) W. Edwards Deming c) Alex Gamble d) F.W. Harris e) Frederick W. Taylor Which of the following is not a step in the load-distance model? a) solve […]

Companies use a single lot-sizing technique to standardize processes. With Excel Solver, the range for the Changing Cells box must be entered with absolute references ($ signs). Answer: False At Wal-Mart, to maximize customer comfort and enjoyment, layouts are designed […]

Crossdocking eliminates the receiving and shipping functions of a distribution warehouse while still performing its storage and order picking functions. For projects whose activities have probabilistic time estimates, the probability of completing the project in a specified amount of time […]

Quality control approaches are part of the production process infrastructure. In general, scheduling resources is less challenging under a process layout than it would be under a product layout. Answer: False Two types of information needed when measuring capacity is […]

Consider a single-server queuing system. If the arrival rate is 45 customers per hour and it takes 1 minute on average to serve a customer, what is the average waiting time in the waiting line in minutes? a) 3 b) […]

The quantity that equates the cost of making a product to the cost of buying the product is generally called what? a) Neutrality point b) Point of equality c) Indifference point d) Point of optimality e) No such point can […]

Cost data Capacity data Demand data Develop a chase aggregate plan without inventory and back orders. Do no hiring or firing. When demand exceeds regular production, use overtime up to its maximum and then subcontracting. When demand is less than […]

Buying a competitor’s new product and studying its design features by disassembling it and analyzing its parts and features is reverse engineering. Quality Function Deployment (QFD) enhances communication between marketing, operations, and engineering functions. Answer: True Operations Strategy is developed […]