In facility location decision-making the educational and skill levels of the labor pool
must match the company’s needs.
Answer:
One of the tools common to all quality efforts is leadership.
Answer:
Preventive maintenance is emphasized in lean production to ensure that flows are not
interrupted by downtime or malfunctioning equipment.
Answer:
One of the drivers of the direct-to-store (direct distribution) approach is the increase in
global sourcing.
Answer:
The aggregate operations planning variable “production rate” refers to the number of
units completed per unit of time.
Answer:
Poka-Yokes are procedures that block the inevitable mistake from becoming a service
defect.
Answer:
A constant arrival rate is more common in productive systems than a variable arrival
rate.
Answer:
The main purpose of the aggregate production plan is to specify the optimal
combination of workforce level and inventory on hand.
Answer:
One of the disadvantages of a pure project organizational structure is that the project
manager has full authority over the project.
Answer:
The fixed-order quantity inventory model requires more time to maintain because every
addition or withdrawal is logged.
Answer:
Fixed-order quantity inventory systems determine the reorder point, R and the order
quantity, Q values.
Answer:
Infrastructure decisions within operations strategy include the selection of the logic
associated with the planning and control systems
Answer:
A finite population in waiting line management refers to a population that is large
enough in relation to the service system so that the change in population size caused by
subtraction or additions to the population does not significantly affect the system
probabilities.
Answer:
In a net change MRP program, a change in one item will result in a completely new
inventory plan and schedule for every item in the master production schedule.
Answer:
A favorable business climate in facility location decision-making might include local
government intervention to facilitate businesses locating in an area via subsidies.
Answer:
(p.133-136) An event unit package is a subdivision of a project.
Answer:
(p. 11-12) During a recession, efficient firms often have an opportunity to increase
market share while maintaining profitability.
Answer:
A financially-driven reason for outsourcing is that it can reduce costs through a lower
cost structure.
Answer:
“Product-service bundling” refers to a company building service activities into its
product offerings for its customers.
Answer:
A company wants to forecast demand using the weighted moving average. If the
company uses three prior yearly sales values (i.e., year 2011 = 160, year 2012 = 140
and year 2013 = 170), and we want to weight year 2011 at 30%, year 2012 at 30% and
year 2013 at 40%, which of the following is the weighted moving average forecast for
year 2014?
A. 170
B. 168
C. 158
D. 152
E. 146
Answer:
You are hired as a consultant to advise a small firm on forecasting methodology. Based
on your research you find the company has a MAD of 3. Its wants to have a 99.7
percent control limits on its forecasting system. It’s most recent tracking signal value is
15. What should be your report to the company?
A. The forecasting model is operating acceptably
B. The forecasting model is out of control and needs to be corrected
C. The MAD value is incorrect
D. The upper control value is less than 20
E. The company is using an inappropriate forecasting methodology
Answer:
If a vendor has correctly used marginal analysis to select their stock levels for the day
(as in the newsperson problem), and the profit resulting from the last unit being sold
(Cu) is $120 and the loss resulting from that unit if it is not sold (Co) is $360, which of
the following is the probability of the last unit being sold?
A. Greater than 0.90
B. Greater than 0.85
C. Greater than 0.75
D. Greater than 0.25
E. None of the above
Answer:
Which of the following is not one of the basic types of forecasting?
A. Qualitative
B. Time series analysis
C. Causal relationships
D. Simulation
E. Force field analysis
Answer:
If all you knew about a production system was that total daily output was 400 units and
the total labor necessary to produce the 400 units was 350 hours, and the total materials
used were 425 units, what kind of productivity measure could you use to compute
productivity?
A. Partial measure
B. Multifactor measure
C. Total measure
D. A and B above
E. B and C above
Answer:
An activity where the parts that go into each unit of a product are periodically removed
from inventory and accounted for based on the number of units produced. is called
which of the following?
A. Frozen window
B. Backflush
C. Level schedule
D. Group Technology
E. Kanban
Answer:
An example of a trading bloc is which of the following?
A. Central American Free Trade Agreement countries
B. Free trade zones
C. ISO-9000 companies
D. American Production and Inventory Control Society
E. Wal-Mart and its’ suppliers
Answer:
For which of the following should we use a “p” chart to monitor process quality?
A. The dimensions of brick entering a kiln
B. Lengths of boards cut in a mill
C. The weight of fluid in a container
D. Grades in a freshman “pass/fail” course
E. Temperatures in a classroom
Answer:
The total output from a production system in one day is 900 units and the total labor
necessary to produce the 900 units is 900 hours. Using the appropriate productivity
measure, what is the resulting productivity ratio?
A. 1.000
B. 1.428
C. 0.700
D. 0.411
E. None of the above
Answer:
Which of the following is not one of the categories of manufacturing inventory?
A. Raw materials
B. Finished products
C. Component parts
D. Just-in-time
E. Supplies
Answer:
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 above
Answer:
In Hau Lee’s uncertainty framework to classify supply chains, a supply chain for
functional products with an evolving supply process is called which of the following?
A. Efficient
B. Forward looking
C. Agile
D. Risk hedging
E. Responsive
Answer:
You are developing an “X-bar” chart based on sample means. You know the standard
deviation of the sample means is 4, the desired confidence level is 99 percent, and the
average of the sample means is 20. Which of the following is your LCL?
A. 36
B. 24
C. 9.68
D. 16.79
E. 30.32
Answer:
Which of the following industry types have high expected benefits from the application
of MRP?
A. Fabricate-to-order
B. Hospitals
C. Assemble-to-order
D. Aircraft manufacturers
E. Oil refineries
Answer:
Assume the service rate for a queue in a truck-loading operation is 2 trucks per hour.
Using the infinite queuing notion for the models presented in the textbook which of the
following is the average service time?
A. 2 hours
B. 1 hour
C. 0.5 hours
D. 0.25 hours
E. None of the above
Answer:
In the service-system design matrix, a mail contact service encounter is expected to
have which of the following?
A. High sales opportunity
B. High degree of customer/server contact
C. High production efficiency
D. Low sales opportunity
E. None of the above
Answer:
Which of the following is not an infrastructure criteria used in facility location analysis?
A. Adequate school system
B. Adequate health care
C. Adequate transportation
D. Adequate low cost labor
E. Adequate public utility systems
Answer:
Which of the following is one of the categories of manufacturing inventory?
A. Economic Order Inventory
B. Work-in-process
C. Quality units
D. JIT Inventory
E. Re-order point
Answer:
Using the fixed-time period inventory model, and given an average daily demand of 15
units, 3 days between inventory reviews, 1 day for lead time, 30 units of inventory on
hand, a service probability of 98 percent, and a standard deviation of daily demand is 3
units, which of the following is the order quantity?
A. About 30.4
B. About 36.3
C. About 42.3
D. About 56.8
E. About 59.8
Answer:
Which of the following are not eligible to be considered for the Baldrige Award?
A. Small businesses
B. Health care organizations
C. Educational institutions
D. State highway patrol organizations
E. Nuclear power plants
Answer:
You want to determine the control lines for a “p” chart for quality control purposes. If
the total number of defects from all samples is 2,000, the number of samples is 100, and
the sample size is 50, what would be the standard deviation used in developing the
control lines? ______________________________________
Answer:
In infinite queuing theory, the average number in the waiting line divided by the
average arrival rate yields what measure of waiting line performance?
_________________________________
Answer:
What are “project milestones?”
Answer:
Processes that are used to transform resources into products are called
________________.
Answer:
In the service-system design matrix, what kind of production efficiency is expected
from a service encounter designed to be “face-to-face loose specs?”
______________________________________
Answer:
What is a closed area or compound into which foreign goods can be brought without
being subject to the normal customs requirements? ____________________
Answer:
A chance node on a decision tree has four possible outcomes worth $10,000, $20,000,
$30,000 and minus $100,000 respectively. The probabilities of these outcomes
occurring are assessed as 10%, 25%, 50% and 15% correspondingly. What is the
expected value of this chance node? _________________________
Answer:
If demand for product “A” were forecast at 1,000,000 units for the coming year and
your factory has one machine capable of producing 75,000 units per month, how much
of product “A” might you plan to acquire through outsourcing? _______________
Answer:
What do we call forecasts that are for very high-level demand analysis?
_______________________________________
Answer:
In setting up a kanban control system you need to determine the number of kanban card
sets needed. If the expected demand during lead time is 24 per hour, safety stock is 10%
of the demand during lead time, the container size is 5. If the lead time to replenish an
order is 5 hours, what number of kanban card sets is needed? ___________________
Answer: