Marketing is responsible for fulfilling the service guarantee.
Retailer behavior when stocking up during promotion periods (where the prices of
goods are reduced) is called backward buying.
Statistical fluctuation refers to the normal variation about a mean or average.
The optimal strategy for functional products is to use an efficient supply chain.
One difference between an assembly line process flow and a continuous process flow is
that on the assembly line the flow is discrete rather than continuous.
A contract manufacturer is an organization capable of manufacturing and/or purchasing
all of the components needed to produce a finished product or device.
Data envelopment analysis is a linear programming technique used in operations
consulting to measure the relative performance of branches of multisite service
organizations such as banks.
Safety stock can be defined as the amount of inventory carried in addition to the
expected demand.
As a general rule, manufacturing workstations should not be very close together.
The International Organization for Standardization (ISO) is a specialized international
agency recognized by affiliates in more than 160 countries.
Quality function deployment is an engineering analysis whose purpose is to simplify
products and processes.
The frequency of adding to productive capacity should balance the costs of upgrading
too frequently and the costs of upgrading too infrequently.
A roller coaster ride in an amusement park employs which type of queuing system line
structure?
A. Single channel, single phase
B. Single channel, multiphase
C. Multichannel, single phase
D. Multichannel, multiphase
E. None of these
For which of the following should we use a -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
Which of the following is a lean production technique that has been successfully
applied in service firms?
A. Decision trees
B. Leveling the facility load
C. Linear programming
D. Fully utilized capacity
E. Backflushing
Which of the following are defined as core goods?
A. Chemicals
B. Airlines
C. Data storage systems
D. Hotels
E. None of these
The dimension of design quality that concerns the sensory characteristics of the product
is which of the following?
A. Features
B. Serviceability
C. Perceived quality
D. Reputation
E. Aesthetics
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. It wants to have a 99.7
percent control limits on its forecasting system. Its 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.
Acquisition costs include which of the following costs?
A. Quality costs
B. Maintenance and repair costs
C. Environmental costs
D. Supply chain costs
E. Customer dissatisfaction costs
Using the cut-and-try method for aggregate operations planning, we can determine the
production requirement in units of product. If the beginning inventory is 500 units, the
demand forecast is 1,000, and the necessary safety stock is 10 percent of the demand
forecast, which of the following is the production requirement?
A. 1,000
B. 600
C. 550
D. 450
E. 100
A product tree can do which of the following?
A. Help to compute component usage.
B. Reduce product scrap.
C. Reduce labor overtime.
D. Reduce regular time labor.
E. Locate raw material supplies.
Which of the following is a production planning strategy presented in the textbook?
A.Level
B. Strategic
C. Balanced
D. Synchronous
E. Optimal
Which of the following models uses a schematic model of the sequence of steps in a
problem and the conditions and consequences of each step?
A. Probability indexing
B. Johnson’s sequencing rule
C. Decision trees
D. Activity system maps
E. Decision mapping
You have just determined the actual number of workstations that will be used on an
assembly line to be 8 using the assembly-line balancing procedure. The cycle time of
the line is 10 minutes, and the sum of all that tasks required on the line is 60 minutes.
Which of the following is the correct value for the resulting line’s efficiency?
A. 0.500
B. 0.650
C. 0.750
D. 0.850
E. None of these