Simple exponential smoothing lags changes in demand.
CPM is an abbreviation for critical path method.
Choosing how to accommodate customer induced variability in a service business is the
decision of the front-line service provider.
Planning is where a firm must determine how anticipated demand will be met with
available resources.
The value of the smoothing constant alpha in an exponential smoothing model is
between 0 and 1.
A project layout is characterized by a high degree of task ordering.
For an infinite queuing situation, if the arrival rate for loading trucks is 5 trucks per
hour, what is the mean time between arrivals?
A. 5 hours
B. 2.5 hours
C. 0.2 hour
D. 0.1 hour
E. None of these
A company is planning for its financing needs and uses the basic fixed-order-quantity
inventory model. Which of the following is the total cost (TC) of the inventory given an
annual demand of 10,000, setup cost of $32, a holding cost per unit per year of $4, an
EOQ of 400 units, and a cost per unit of inventory of $150?A. $1,501,600
B. $1,498,200
C. $500,687
D. $499,313
E. None of these
Use Equation 20.2. Q = 400. Average inventory = Q/2 = 200. Holding cost/year = $4.
Thus, annual holding cost = $800. Annual set-up cost = 10,000/400 = 25 x $32 = 800.
Demand x cost per unit = 10,000 x $150 = 1,500,000. Hence, TC = $1,500,000 + 800 +
800 = $1,501,600.
In setting up a Kanban control system you need to determine the number of kanban card
sets needed. If assume the expected demand during lead time is 50 per hour, the safety
stock is 20 percent of the demand during lead time, the container size is 4, and the lead
time to replenish an order is 8 hours, what number of Kanban card sets is needed?
A. 60
B. 80
C. 90
D. 120
E. 150
A difference between project and continuous flow categories of process flow structures
is which of the following?
A. The size and bulk of the product
B. Discrete parts moving from workstation to workstation
C. Degree of equipment specialization
D. Being a “virtual factory”
E. Profit per unit
Failure mode and effect analysis is used in Six-Sigma projects. It involves which of the
following?
A. Closely examining each rejected part to determine the cause
B. A careful sampling plan
C. Calculating a risk priority number for each possible failure
D. Reporting the effect each failure has had on a customer
E. Multivariate testing
Which of the following are eligible companies to be considered for the Baldrige award?
A. Auditing firms
B. Offshore suppliers to U.S. companies
C. Firms operating only outside the U.S.
D. State government agencies
E. None of these
You have just performed a CPM analysis and have found that more than one path
through the project network has zero slack values. What can you conclude?
A. You have incorrectly performed the analysis.
B. You have multiple critical paths.
C. Only one path is optimal.
D. More than one path is optimal.
E. The project will not be completed by the desired time.
Using the assembly-line balancing procedure, which of the following is the required
cycle time in minutes per unit if the daily production time is 480 minutes and the
required daily output is 50 units?
A. 0.104
B. 50
C. 9.6
D. 480
E. Cannot be determined from the information given
Ownership costs include which of the following costs?
A. Environmental costs
B. Warranty costs
C. Supply chain costs
D. Quality costs
E. Taxes
Which of the following is not listed in the textbook as a component of a lean supply
chain?
A. Lean customers
B. Lean management
C. Lean logistics
D. Lean warehousing
E. Lean procurement
The total output from a production system in one day is 500 units and the total labor
necessary to produce the 500 units is 350 hours. Using the appropriate productivity
measure, which of the following numbers represents the resulting productivity ratio?
A. 1.000
B. 1.428
C. 0.700
D. 0.411
E. None of these
In Hau Lee’s uncertainty framework to classify supply chains, which supply chain
process should be used for functional products with low supply uncertainty?
______________________________________
In Hau Lee’s uncertainty framework to classify supply chains, which supply chain
process should be used for innovative products with low supply uncertainty?
______________________________________
What are the three financial measures of the firm’s ability to make money?
(1) ______________________________.
(2) ______________________________.
(3) ______________________________.
A company’s production process has a 90 percent learning rate. The process has
produced 1,000 units to date. A process refinement is estimated to allow a future
learning rate for the identical product of 70 percent. However, the initial unit made
using the new process will take the same amount of time as the initial unit produced
using the old process. At what point, using the new process, will the production rate
exceed the production rate achieved by the old process?
What are the four main categories of cost relevant to aggregate operations planning?
(1) ____________________________
(2) ____________________________
(3) ____________________________
(4) ____________________________