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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
Which of the following is an aspect of environmental risk in supply-chain
management?
A) political issues
B) management metrics
C) secure financial transactions
D) raw material availability
E) All of the above are environmental risks.
An improvement index indicates
A) whether a method other than the stepping-stone should be used
B) whether a method other than the northwest-corner rule should be used
C) how much total cost would increase or decrease if a single unit was reallocated to
that cell
D) whether the transportation cost in the upper left-hand corner of a cell is optimal
E) how much total cost would increase or decrease if the largest possible quantity were
reallocated to that cell
If the goals of JIT partnerships are met, which of the following is a result?
A) For incoming goods, receiving activity and inspection are outsourced.
B) In-transit inventory falls as suppliers are located closer to facilities.
C) The number of suppliers increases.
D) In-plant inventory replaces in-transit inventory.
E) All of the above are consequences of meeting the JIT partnership goals.
Which of the following statements regarding PERT times is true?
A) The expected time is an estimate of the time an activity will require if everything
goes as planned.
B) The optimistic time estimate is an estimate of the maximum time an activity will
require.
C) The expected time estimate is calculated as t = (a + 4m + b)/6.
D) The pessimistic time estimate is an estimate of the minimum time an activity will
require.
E) The most likely time estimate is an estimate of the maximum time an activity will
require.
"Should we make or buy this component?" is an issue in the __________ critical
decision area.
To set -chart upper and lower control limits, one must know the process central line,
which is the
A) average of the sample means
B) total number of defects in the population
C) percent defects in the population
D) size of the population
E) average range
When should product strategy focus on forecasting capacity requirements?
A) at the introduction stage of the product life cycle
B) at the growth stage of the product life cycle
C) at the maturity stage of the product life cycle
D) at the decline stage of the product life cycle
E) none of the above
Consider a product with three components in series, with reliabilities of 0.90, 0.80, and
0.99 for components A, B, and C, respectively. Furthermore, component B uses a
backup that also has a reliability of 0.80. What is the reliability of the system?
A) 0.50000
B) 0.71280
C) 0.80000
D) 0.85536
E) 3.49000
There is only one bay and one type of service at an automatic car wash. Provide the
most likely characteristics of this system.
a. name of model
b. number of channels
c. number of phases
d. arrival rate distribution
e. service time distribution
f. population size
g. queue discipline
The objective of layout strategy is to
A) minimize cost
B) develop an efficient and effective system that meets competitive requirements
C) maximize flexibility
D) minimize space used
E) minimize material handling costs
A manager has received an analysis of several cities being considered for a new order
fulfillment center (warehouse) for Shop at Home Network. The scores (scale is 10
points = best) are contained in the table below.
a. If the manager weights the factors equally, how would the locations be ranked?
b. If transportation costs and operating costs are given weights that are double the
weights of the others, should the locations be ranked differently?
A university has several technicians in the repair station to care for the computers in the
student labs. This system is most likely
A) single channel, limited queue system
B) single channel, limited population system
C) multi-channel, limited queue system
D) multi-channel, limited population system
E) none of the above
Which of the following influences layout design?
A) inventory requirements
B) capacity needs
C) personnel levels
D) technology decisions
E) All of the above influence layout decisions.
Which of the following is true regarding computer-aided design?
A) It is too expensive to use in most manufacturing and design settings.
B) It is an old technology
C) It results in longer development cycles for virtually all products.
D) It is the use of computers to interactively design products and prepare engineering
documentation.
E) All of the above are true.
Which choice below best describes the counterseasonal demand option?
A) producing such products as lawnmowers and sunglasses during the winter
B) developing a mix of products that smoothes out their demands
C) lowering prices when demand is slack
D) using subcontractors only when demand is excessive
E) the breaking of the aggregate plan into finer levels of detail
Lead time for cakes is 2 days with daily demand of 10 cakes and a safety stock of ½ a
day. Each container (kanban) holds 1 cake. What is the correct number of kanbans?
A) not enough information
B) 1
C) 5
D) 10
E) 25
An assembly line has been designed to make battery-powered beverage mixers. Task
details are shown in the table below:
a. What is the assigned cycle time (in minutes)?
b. What is the maximum output rate of this line in mixers per hour?
c. What is the total idle time per cycle?
d. What is the assembly line's efficiency?
A furniture maker has delivered a dining set directly to the end consumer rather than to
the furniture store. The furniture maker is practicing
A) postponement
B) drop shipping
C) channel assembly
D) passing the buck
E) float reduction
A swimming pool company has 100,000 labor hours available per summer and with a
labor productivity of 5 pools per 6,000 hours.
a. How many pools can the company install this summer?
b. Suppose the multifactor productivity was one pool per $25,000. How much should
the company expect to spend this summer constructing the pools?
A measure of forecast error that does not depend on the magnitude of the item being
forecast is the __________.
__________ lists products in descending order of the individual dollar contribution to
the firm.
__________ are used to schedule resources and allocate time.
What is it called when competing companies locate next to each other? Why do they do
this?
What is the impact on system reliability of adding parts or components in parallel?
As the firm strategies vary from low-cost to response to differentiation, how does this
impact the criteria used for selection of a supply-chain strategy?
A transportation model uses only 5% of its cells. If the number of destinations is 1000,
determine the number of sources in the model.
