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.
A process can be considered in a state of control even if one observation is 1.75
standard deviations above the mean.
The Internet has created greater competition between suppliers.
Negative lateness means the job is finished before the due date.
The naïve forecasting method assumes that next period’s actual value will be equal to
this period’s forecast.
The most important factor in the success or failure of TQM efforts is the genuineness of
the organization’s commitment.
The algebraic formulation of an optimization problem states the decision variables,
objective function, and constraints in algebraic form.
A local priority rule sets priority based only on the jobs waiting at that individual work
center.
In general, if car company A has a smaller weeks of supply than car company B does,
then car company A is using its inventory more effectively.
The range of a data set is always non-negative.
In network diagramming, arrows represent precedence relationships.
With respect to globalization, which of the following would not be considered an
important location consideration?
a) vertical integration
b) trade barriers
c) culture
d) language barriers
e) foreign markets
The A2 factor includes how many standard deviations of ranges?
a) 1
b) 2
c) 3
d) 4
e) 6
Consider a project having the following ten activities:
(a) What is the critical time?
(b) What is the critical path?
(c) What is the slack for each activity?
You have been asked to observe the shift supervisor at the process test plant for Hudson
Chemical Co. to estimate the proportion of time she spends answering questions for the
operators. Your 30 observations have revealed the following:
(a) Based on the preliminary data, calculate the proportion of time she spends
answering questions for the operators.
(b) Calculate the sample size needed to estimate the proportion of time she spends
answering questions for the operators. Assume a 90% confidence that the results will lie
within 5% of the true value.
A hybrid layout combines
a) fixed and product
b) fixed and process
c) inverted and product
d) services and manufacturing
e) process and product
Job A is due on day 15, and it is finished on day 12. What is its lateness?
a) ‘“3
b) 0
c) 3
d) both -3 and 3
e) none of these answer choices are correct
JIT uses a pull system where communication starts with either the customer or with the
_________ work station in the production line.
a) First
b) Bottleneck
c) Dominant
d) Most expensive
e) Last
System server capacity is a function of ______ and _______.
a) phase, lines
b) time, lighting
c) facilities, management
d) facilities, proficiency
e) utilization, proficiency
For the basic EOQ model, what is the formula for the total annual cost?
a)
b) (D/Q)S + (Q/2)H
c) (Q/D)S + (Q/2)H
d) DQ/S + 2Q/H
e)
Which of the following forecasting methods is specifically designed to go through
several rounds of modification before generating a final forecast?
a) Exponential smoothing
b) Executive opinion
c) Delphi method
d) Naïve method
e) Gamma method
Which of the following is least likely to be considered a finite customer population?
a) subassemblies in a just-in-time manufacturing environment
b) fast food restaurant employees waiting to use the restroom
c) planes waiting to take off at an airport
d) a class of 10 students who might visit their professor during office hours
e) cars taking Exit 76 off of a freeway during rush hour
A checklist is a list of common defects and __________ of these defects.
a) Number of occurrences
b) Relative importance
c) Attributes
d) Costs
e) Visibility
Which of the following is not one of the nine steps utilized in the most complete form
of CPFR?
a) identify exceptions for order forecasts
b) create a sales forecast
c) create order forecast
d) create separate business plans
e) generate order
According to a 1996 study by the Council for Logistics Management of the third-party
logistics industry, which companies are particularly likely to use third-party logistics
services to handle most of their logistics needs?
a) Companies engaged in international business
b) Transportation companies
c) Warehousing companies
d) Hospital equipment manufacturers
e) Large retailers
Cause-and-effect diagrams are often called
a) Checklists
b) Scatter diagrams
c) Pareto analysis
d) Fishbone diagrams
e) Histograms
How could you change the customer arrival rate of a waiting line system?
Service organizations use different techniques such as _____________, ___________,
and ____________ for effective use of service capacity.
What are the characteristics of indented bills of materials?
TQM stresses the balanced use of non-quantitative (qualitative) and
________________________ tools in quality improvement.
Suppose a process has been monitored daily for the last ten days and the number of
machine failures each day was noted. The results follow:
Compute control limits for a c-chart that monitors the average number of machine
failures per day. Is the process in a state of control?
What are the characteristics of the critical chain approach?
How should forecasts of long-range demand be developed for identifying capacity
requirements?
Consider a single-line, single-server waiting line system. Suppose that customers arrive
according to a Poisson distribution at an average rate of 50 per hour, and the average
(exponentially distributed) service time is 45 seconds per customer. What is the average
time spent in line (in minutes)?