Companies that have low customer contact and are capital intensive, yet provide a
service, are called service factories.
A useful tool for translating customers’ everyday language into specific technical
requirements is Quality Function Deployment.
The MATCH function in Excel returns the relative position in the array that matches the
lookup value.
Load-distance calculations are very concerned with the direction of the move.
Marketing uses flow time metrics to determine if deliveries are made on time.
Extra capacity can serve to intimidate and preempt competitors from entering the
market.
Bottom-round management includes consensus management by committees or teams.
Firms that ‘chase’ demand by hiring more workers have less need for anticipation
inventory.
Channel and server are synonymous in waiting line terminology.
The comparison of aggregate plans is difficult when they produce different quantities
and have different ending inventories.
Distribution management is the movement of material from manufacturer to the
customer.
In the ‘slushy’ portion of the MPS, changes in the product mix are possible, but changes
needing additional resources are not.
Forward scheduling sometimes causes inventory buildup if items are not delivered by
the due date.
The center of gravity approach requires precise XY grid coordinates to develop a valid
location.
A single-line service system is best when specialized servers are used.
The maximum output that can be achieved by a facility is ____________.
a) lead time
b) storage space
c) capacity
d) productivity
e) cycle counting
The formula to calculate an activity’s probabilistic expected time is
a) ET = ( M+4*O+P)/6
b) ET = ( P+4*O+M)/6
c) ET = ( P+4*M+O)/6
d) ET = ( P+3*M+O)2/6
e) ET = ( M+3*O+P)/4
Which of the following is not an example of a method that can be used to reduce the
time to complete an activity?
a) work on other activities
b) faster shipments of materials
c) use special equipment
d) work overtime
e) work around the clock
The longest connected route through the path network is the
______________________.
a) planning matrix
b) final deliverable
c) crash path
d) connector
e) critical path
What is Period 3’s standard hour deviation for Frank’s manufacturing firm, based on the
following input/output information?
a) 4, -5
b) -3, 2
c) 3, -2
d) 2, -2
e) -14, 2
Birdie Par owns a company that makes golf gloves. She is thinking about introducing a
new glove, which would require an additional fixed cost of $20,000 per year. The
variable costs for the new glove have been estimated to be $5 per glove.
a) If she sells the new glove for $15, how many must she sell to break even?
b) If she sells 3,000 gloves at the $15 price, what will the contribution to profit be?
The important thing in Quality Function Deployment competitive evaluation is
a) To evaluate the financial strength of competitors
b) To identify customer requirements that should be pursued and how we fare relative to
our competitors
c) Speed of introduction
d) The number of competitors
e) Knowing our product well
Which Excel function takes as inputs two separate ranges, then multiplies each pair of
numbers in the ranges, and then adds up all these individual products?
a) RANGE
b) RANGEPRODUCT
c) PRODUCTSUM
d) SUMPRODUCT
e) DOTPRODUCT
The process of calculating LS and LF _____________________________.
a) requires only a forward pass through the network
b) requires only a backward pass through the network
c) requires both a forward and backward pass through the network
d) cannot be accomplished until slack is first determined
e) is sufficient for calculating the critical path
Suppose that you are using the simple mean to make a forecast. This period’s forecast
was equal to 1000 units, and it was based on 99 periods of demand. This period’s actual
demand was 0 units. What is your forecast for next period?
a) 1000
b) 990
c) 0
d) 1010
e) 999
Large facilities can benefit from the concept of _____________________ by creating a
plant within a plant (PWP).
a) just-in-time
b) focused factories
c) economies of scale
d) supply chain
e) hierarchical management
The ranking in ABC inventory analysis is based on what?
a) annual dollar usage
b) annual demand in units
c) alphabetical order
d) unit price
e) item number
What are purchased items or extracted materials that will be transformed into
components or products called?
a) raw materials inventory
b) finished goods inventory
c) work-in-process inventory
d) distribution inventory
e) MRO inventory
An item that has no parents is a(n) ______________.
a) subassembly
b) end item
c) child item
d) intermediate assemble
e) component
_____________________ is the probability that demand during lead time will not
exceed on-hand inventory.
a) EOQ service level
b) Fill rate
c) Stockout risk
d) Order-cycle service level
e) Lead time service level
MRP systems require ______________________, ______________________, and
______________________ as inputs.
_________ _________ are used to gain useful information about waiting line systems.
List five major factors that become important for the management of global supply
chains.
The computed AOQ provides a sense of the ______________ of the product
What are the three steps for the Johnson’s Rule?
What are the 9 steps utilized in the most complete form of CPFR?
Nearly all other business decisions depend on _______________.