An excellent procedure that can be used with location factors that are qualitative is the
factor rating method.
Firms should balance the flow rather than the process.
A min-max inventory system implies a larger average inventory than a periodic review
inventory system.
ERP and e-commerce systems should not interface with each other.
A skewed distribution implies that assignable causes of variation may be present.
Design standardization refers to the use of common and interchangeable parts.
A primary objective of the master production schedule is to achieve the desired
customer service level.
Schedules should be established by considering all constraints simultaneously.
Undercapacity scheduling is the term that describes working with a schedule of seven
hours of production and one hour of problem solving with teams.
A control chart y-axis represents the quality characteristic that is being monitored.
A product layout can look like an S-curve.
If the goal is to reduce the amount of inventory in the system, the number of Kanban
cards should be increased.
Global competition forces organizations to decrease their amount of product
proliferation.
When a company’s product is nontangible (a service), inventory is no longer a viable
option.
Market research represents a type of environmental scanning.
Controllable inputs are sometimes called parameters.
In evaluating the current situation, the point of departure is the size of the change that is
needed.
In Excel Solver, the Decision Cells correspond to the decision variables in the algebraic
model.
Product design and process selection decisions are typically made separately.
Excel Solver restricts the constraints to either >= or =.
Which of the following models involves objects that represent other objects?
a) physical model
b) mathematical model
c) mental model
d) spreadsheet model
e) visual model
According to the text, what percent of defects are consumers generally willing to
accept?
a) 1-2%
b) 2-3%
c) 3-4%
d) 4-5%
e) 5-6%
Supershirtco plans to open a new factory and is looking for a suitable location. They
have narrowed their choice down to three locations, Lima, Peru; Rome, Italy; and
Nome, Alaska. They have defined four factors and have assigned weights to these
factors as follows: wage rates (60), construction costs (20), logistics (10), and climate
(10). They then rated the three locations for the four factors, using a scale of one to five.
Their ratings are as follows:
(a) Calculate the scores for each location.
(b) According to the model which location should they choose?
_____________________ can perform a number of tasks to help a company focus on
its core capabilities.
a) A plant within a plant
b) Agile manufacturing
c) Total Quality Management
d) Just-In-Time
e) Subcontractor networks
In the 1980s retail sales were dominated by large department stores. However, in the
1990s gains in sales were made by specialty stores because
__________________________________.
a) the large department stores started moving out of shopping malls, and their new
locations were not nearly as effective
b) customers got tired of trying to find sales clerks who would help them in the large
department stores
c) the specialty stores always had donuts and coffee for their customers
d) consumer preferences change very rapidly, and the specialty stores can focus on a
specific set of customers and respond to their unique needs
e) parking is more readily available at the specialty stores
Waiting line models typically assume that customer arrival rates are represented by
what distribution?
a) Poisson
b) Gaussian
c) Weibull
d) Cauchy
e) exponential
Which of the following is not part of decision trees?
a) decision points
b) decision alternatives
c) decision events
d) chance events
e) outcomes
What measures the central tendency of a set of data?
a) Coefficient of variation
b) Variance
c) Standard deviation
d) Mean
e) Range
Which B2C model does MyPoints.com utilize?
a) advertising revenue model
b) subscription revenue model
c) transaction fee model
d) sales revenue model
e) affiliate revenue model
Sales and operations planning integrates the medium-range functional plans for all
except which of the following?
a) marketing
b) operations
c) human resources
d) engineering
e) finance
The definition of quality that involves the product functioning as expected without
failure is
a) Performance
b) Conformance
c) Reliability
d) Standardization
e) Endurance
_____________________ structure the sequencing of activities.
a) Evaluation of costs
b) Crashings
c) Work breakdowns
d) Backschedules
e) Precedence relationships
What is the mean squared error of the following forecasts?
a) 3174
b) 164
c) 41
d) 136
e) 12,696
In Excel, __________________ references change when you copy them.
a) absolute
b) comparative
c) analogous
d) relative
e) correlative
The first unit of a product took 80 hours to complete. The firm plans to produce 10 units
in the first month and 12 units in the second month. If a 75% learning curve is expected,
how many hours will the firm use to work on the product during the second month?
a) 960.0 hours
b) 505.2 hours
c) 751.0 hours
d) 447.1 hours
e) 303.9 hours
The items listed below are stored in a one-dock warehouse. Which of them should be
stored at the very back (furthest away from the dock)?
a) A
b) B
c) C
d) D
e) E
The maximum output rate that can be achieved by a facility under ideal conditions is
_________________.
a) utilization
b) design capacity
c) effective capacity
d) ultimate capacity
e) temporary capacity
Not only does TQM encompass the entire organization but it
a) stresses quality is supplier driven
b) stresses quality is vendor driven
c) stresses quality is customer driven
d) stresses the need for ISO 9000 compliance
e) stressed the need to be ‘˜green’
A demand-based option in which the marketing tries to shift demand patterns to
minimize demand fluctuations is called
a) hyperactive
b) inactive
c) proactive
d) reactive
e) retroactive
Typically the job chosen for the time study will be ___________________.
a) a routine job that is labor intensive
b) a simple job performed by many different people
c) done primarily by machine
d) done only occasionally
e) insignificant
When formulating optimization problems, which of the following represent the typical
sequence?
a. (1) text-based formulation, (2) diagram, (3) algebraic formulation
b. (1) text-based formulation, (2) algebraic formulation, (3) diagram
c. (1) diagram, (2) algebraic formulation, (3) text-based formulation
d. (1) diagram, (2) text-based formulation, (3) algebraic formulation
e. (1) algebraic formulation, (2) diagram, (3) text-based formulation
Which of the following would imply that data observations are closely clustered around
the mean?
a) Small range and small standard deviation
b) Small range and large standard deviation
c) Large range and small standard deviation
d) Large range and large standard deviation
e) Neither range nor standard deviation has anything to do with ‘clustering.’
If the schedule shows a 5 day slack between the end of Task A and start of Task B, this
means:
a) you must start Task B as soon as Task A ends.
b) Task B start is late.
c) Task A is taking longer to complete.
d) Task A and Task B should be performed concurrently.
e) Task B start can be delayed up to 5 days after Task A’s scheduled completion.
Who developed quality control charts?
a) Walter Shewhart
b) W. Edwards Deming
c) Joseph Juran
d) Phillip Crosby
e) Genichi Taguchi
Which of the following is not affected by decisions about how much inventory to hold?
a) item costs
b) holding costs
c) depreciation
d) ordering costs
e) stockout costs
Jobs that are physically and mentally doable are said to be __________________.
Describe and discuss the two different types of model inputs.
Suppose that assembly of a product involves four different tasks taking 40 seconds, 20
seconds, 30 seconds, and 80 seconds, respectively. What is the theoretical minimum
number of stations?
A specific combination of values of the decision variables such that at least one of the
constraints is violated results in a(n) ______________________.
____________________ uses a database that supports processes across functional
areas.
Discuss how to develop the critical path variance.