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Genetic algorithms are based on the natural selection properties of genetics. An operating characteristics (OC) curve is a graph that measures the probability of accepting a lot with no defective items. Answer: False Carry costs and ordering costs are inversely […]

While all linear programming problems have a single objective function, very few, if any, have constraints. Simulation analysis is the preferred method used at hospitals to determine the type of treatment a patient requires. Answer: False Acceptance sampling is not […]

Dependent demand items consist of component parts or materials used in the production process to produce a final product. Globalization has affected manufacturing but not service operations. Answer: False Because of advances in technology, many service industries no longer require […]

Project scope, one of the basic elements of a project plan, involves a set of procedures for anticipating and assessing uncertainties that might increase the risk of delaying the project. Customer relationship management systems change the focus from managing products […]

Globalization and advances in information technology are primary reasons why supply chain management has become a competitive priority for companies. The most widely used decision-making criterion for situations with risk is expected value. Answer: True The basic objective of the […]

A pattern test can identify an out-of-control process even if all sample points are within control limits. Human resources management provides product demand estimates that are used in production decisions. Answer: False Taiichi Ohno observed that customers in American supermarkets […]

All sequencing rules strive to optimize both processing efficiency and due date performance. Managing quality is not an important part of project management. Answer: False Mass production is often associated with assembly lines. Answer: True Because of globalization of markets, […]

Service companies are centralized and geographically concentrated. Rating worker performance is typically an objective, easy task that can be done by any employee. Answer: False With a pure strategy for aggregate planning only one capacity variable is changed. Answer: True […]

Global projects are rarely concerned with cultural differences among team members because English is the universal business language. The order cycle is the time between receipts of orders in an inventory cycle. Answer: True The moving average method is used […]

A manufacturing execution system is software that uses intelligent analytical tools and techniques to develop realistic schedules. Simulation is often viewed as the technique of last resort because it can be applied to situations when there is no applicable quantitative […]

Manufacturing cells are comprised of groups of similar machines that process a family of parts. Kaizen is a Japanese term that means fool proofing to prevent defects. Answer: False The formal study of the individual human motions used to perform […]

Purchasing can be classified according to two broad categories: direct (manufacturing inputs) and indirect (operating inputs). When a control chart detects no special cause (nonrandom) variation in a process, the upper and lower control limits are the same value. Answer: […]

The degree to which a product meets pre-established standards is known as quality of conformance. A major challenge and opportunity for many firms is the globalization of the supply chain. Answer: True A firm’s process strategy defines the extent of […]

A worker-machine chart determines whether worker and machine tasks are strategically aligned. Inventory holding costs are an important consideration for the level production strategy. Answer: True Poka-yolk is a Japanese term used to describe the removal of waste in a […]

Complex products typically do not require material requirements planning (MRP) to plan production or monitor inventory levels. Overtime and undertime are common strategies for adjusting demand. Answer: False The assignment method of linear programming can be used for both loading […]

The simple method used for solving linear programming problems uses matrix algebra to solve simultaneous equations. A project’s duration can be reduced by crashing activities on the critical path. Answer: True Finished product is an example of a dependent demand […]

Postponement involves moving some of the manufacturing into the distribution center. The critical path is the longest path through the project’s network. Answer: True With a single-sample attribute plan a single sample of size n is selected randomly only one […]

The authority for a worker to stop the production line when quality problems are encountered is known as poka-yoke. Modular design is one way to gain the benefits of standardization without losing the advantage of variety and uniqueness. Answer: True […]

Process innovation is most successful in organizations that view their systems as a set of functional areas vying for limited resources. Dependent demand items are typically products for use by the final customer. Answer: False For a given process, the […]

Job shop scheduling is usually performed by skilled machine operators. In general, the objective function for linear programming problems in operations is one of minimizing costs. Answer: True The bullwhip effect occurs when slight to moderate demand variability becomes magnified […]

Distributors deal only in very large quantities providing infrequent deliveries. A kanban square is a marked area designated for holding a set quantity of output. Answer: True Continuous inventory systems often incorporate information technology to improve the speed and accuracy […]

A poka-yoke is any foolproof device that prevents defects or injury from occurring. E-marketplaces are sites on the Internet where companies can find new business partners. Answer: True The feasible solution space contains the values for the decision variables that […]

Periodic inventory systems initiate a new order when the level of inventory falls to the reorder to point. A multiple-sampling plan uses the smallest sample size of any sampling plan. Answer: True Achieving strategic quality goals for quality and customer […]

Cross docking is one of the reasons Wal-Mart has such an efficient supply chain. The theory of constraints (TOC) approach to scheduling concentrates on scheduling the bottleneck resources. Answer: True A chase demand strategy is one of several alternatives available […]

One of the prerequisites to job rotation is cross-training. One objective of material requirements planning (MRP) is to utilize all available capacity. Answer: False One objective of sales and operations planning is to develop a companywide game plan to satisfy […]

The process capability index indicates how much a process mean differs from the target specification value. The factors used to evaluate location of a manufacturing plant are usually different from the factors used in locating a service facility. Answer: True […]

With Six Sigma, a teacher and mentor is known as a Green Belt. The master production schedule (MPS) is a major input for the MRP process. Answer: True Suppliers are upstream members of a supply chain. Answer: True The shortest […]

Globalization and foreign competition began to change consumers’ attitudes toward quality in the 1950s. In ABC analysis, each class of inventory requires different levels of inventory monitoring and control. Answer: True Material requirements planning (MRP) translates the master production schedule […]

The last stage in ERP implementation involves analyzing business processes. Going green has become one of the most visible recent trends in operations and supply chain management. Answer: True The desired cycle time refers to the maximum amount of time […]

In a reverse auction a customer posts contracts for products available for bids from potential suppliers on the Internet. Creating preliminary design models that are quickly tested and either discarded or further refined is known as rapid prototyping. Answer: True […]

One advantage of an individual piece-rate system is that it provides strong incentives to ensure high quality. A process layout arranges activities sequentially. Answer: False In a general sense the supplier makes the final judgment regarding quality. Answer: False A […]

Process planning determines how a manufactured good is produced or a service is provided. An 80% learning curve describes an improvement rate of 80% each time production doubles. Answer: False Feedback: Learning Curves The earliest start time for the first […]

Because value chain and supply chain have similar meanings, they are often used interchangeably. Service operations tend to make location decisions more frequently than manufacturing facilities. Answer: True Drugstores are one example of a business using a periodic inventory system […]

Total productive maintenance combines preventive maintenance with kaizen. The most common type of forecasting method for long-term strategic planning is based on quantitative modeling Answer: False Dismantling and inspecting a competitor’s product to identify design features that might be used […]

The larger the mean absolute deviation (MAD) the more accurate the forecast. The load-distance technique evaluates different locations based on load and transport distance. Answer: False Workers often do not like to be the subject of a time study, and […]

Operations mangers find very few types of linear program models applicable today because finding an optimal solution is no longer a concern. Supply chain management focuses on integrating and managing the flow of manufactured goods, services, and related information. Answer: […]

Traditionally, each supply chain member was viewed as a separate, stand-alone entity focused on its own goals. With the quantity discount model, the basic EOQ total cost formula is modified to include a term, PD, calculated by taking the purchase […]

Service facilities are usually the largest and most expensive type of facility. Attribute control charts are used to monitor descriptive characteristics of the output of a process rather than measurable characteristics. Answer: True When demand is uncertain, a safety stock […]

Queue discipline specifies the order in which waiting customers are served. In 2010, the US surpassed China as the world’s largest manufacturer. Answer: False When designing a service, performance specifications are converted into design specifications, and finally, delivery specifications, Answer: […]

According to the U.S. Bureau of Statistics very few people entering the workforce over the past decade were members of minority groups. Some companies enter into long-term relationships with suppliers who in return commit to meet delivery deadlines but not […]

In general, a service and its delivery system are inseparable. Project scheduling is recognized as the most critical element in the project management process. Answer: True One-of-a-kind production of a product based on a customer’s unique specifications is a called […]

A flexible manufacturing system (FMS) combines flexibility with higher efficiency. The Delphi method generates forecasts based on informed judgments and opinions from knowledgeable individuals. Answer: True Job design includes determining the characteristics a worker needs to meet the job requirements. […]

Gantt charts show the planned but not the completed activities against a time scale. Product layouts are sometimes referred to as functional layouts because they group similar activities together. Answer: False Continuous production is characterized by very high volumes of […]

By managing diversity, a company can gain a competitive edge because all employees are given an opportunity to do their best. One way to cope with the bullwhip effect is for supply chain members to share demand information. Answer: True […]

ERP application modules can be used alone or in combination. Collaborative planning, forecasting, and replenishment (CPFR) is a useful tool supporting supply chain integration. Answer: True Process design specifies what tasks need to be done and how they are to […]

In today’s competitive environment, effective supply chain management requires absolute demand forecasts. Mass production is characterized by the use of specialized equipment and workers with limited skills. Answer: True Forecasting customer demand is often a key to providing good quality […]

Companies that control the production of virtually all of the parts that go into a product are said to be horizontally integrated. One principle of total quality management (TQM) is that upper management is solely responsible for providing the leadership […]

Determining worker capabilities and responsibilities for a job is known as worker analysis. A random number’s likelihood of being selected is based on a uniform distribution. Answer: True Outsourcing occurs when a company cannot or will not make all the […]

The type of forecasting method used depends entirely on whether the supply chain is continuous replenishment or not. Firms compete in the marketplace based on cost, speed, quality and flexibility. Answer: True Line balancing is constrained by precedence requirements and […]

Slack represents the amount of time an activity can be delayed without delaying the project completion time. Globalization has resulted in an overall reduction in diversity related issues in the workplace. Answer: False Sharing information and synchronizing production across the […]

Firms that adopt lean production experience reductions in employee training costs. The time required for a worker to complete one pass through the operations assigned to her is called the operator cycle time. Answer: True PERT stands for program enterprise […]

Distribution includes both warehousing and transportation functions. In general, crashing costs decrease as a project’s duration is systematically reduced to a target value. Answer: False The level strategy for adjusting capacity is only appropriate when there is no variation in […]