In the logarithmic approach formula to compute the time for the Nth unit, TN = T1N,
the exponent b is the learning curve rate L, expressed as a decimal.
“How much inventory of this item should we have?” is within the critical decision area
of managing quality.
In trend projection, the trend component is the slope of the regression equation.
Patterns in the data that occur every several years are called circuits.
As the average service rate ¼ grows larger, the slope of the distribution of service time
probabilities grows larger and larger, eventually becoming positive.
The supply-chain management opportunity called postponement involves delaying
deliveries to avoid accumulation of inventory at the customer’s site.
Kaizen is similar to TQM in that both are focused on continuous improvement.
The enhancement of existing products is an external product development strategy.
Analysis of a PERT problem shows the estimated time for the critical path to be 108
days with a variance of 64. There is a .90 probability that the project will be completed
before approximately day __________.
A) 98
B) 108
C) 109
D) 115
E) 118
The role of decision trees in product design is
A) to rank products in descending order of their dollar contribution to the firm
B) to better understand the customers’ wants
C) to calculate the expected value of each course of action
D) to calculate the value of quality function deployment
E) to calculate the value of the moment of truth
Which of these statements regarding time-cost tradeoffs in CPM networks is true?
A) Crashing is not possible unless there are multiple critical paths.
B) Crashing a project often reduces the length of long-duration, but noncritical,
activities.
C) Activities not on the critical path can never be on the critical path, even after
crashing.
D) Crashing shortens the project duration by assigning more resources to one or more
of the critical tasks.
E) None of the above is true.
The major problem addressed by the warehouse layout strategy is
A) minimizing difficulties caused by material flow varying with each product
B) requiring frequent contact close to one another
C) addressing trade-offs between space and material handling
D) balancing product flow from one work station to the next
E) none of the above
Which of the following is true regarding total productive maintenance (TPM)?
A) TPM is concerned with machine operation, not machine design.
B) Field service and depot service perform virtually all maintenance and repair
activities.
C) Operators run their machines, but maintenance departments maintain them.
D) TPM reduces variability through employee empowerment and excellent
maintenance practices.
E) TPM views maintenance and repair as tactical issues, not strategic ones.
Basic break-even analysis typically assumes that
A) revenues increase in direct proportion to the volume of production, while costs
increase at a decreasing rate as production volume increases
B) variable costs and revenues increase in direct proportion to the volume of production
C) both costs and revenues are made up of fixed and variable portions
D) costs increase in direct proportion to the volume of production, while revenues
increase at a decreasing rate as production volume increases because of the need to give
quantity discounts
E) All of the above are assumptions in the basic break-even model.
Setting up a probability distribution, building a cumulative probability distribution, and
generating random numbers are
A) necessary when the underlying probability distribution is normal
B) three of the five steps in Monte Carlo analysis
C) elements of physical simulation but not mathematical simulation
D) the three steps involved in simulating a queuing problem
E) advantages of simulation
Which of these factors would be considered when making a location decision at the
region/community level?
A) government rules, attitudes, stability, incentives
B) cultural and economic issues
C) zoning restrictions
D) environmental impact issues
E) proximity to raw materials and customers
A master production schedule specifies
A) the raw materials required to complete the product
B) what component is to be made, and when
C) what product is to be made, and when
D) the labor hours required for production
E) the financial resources required for production
The three components that can lead to competitive advantage through effective
scheduling are
A) quality, dispatching, and MRP
B) ABC analysis, MRP, and loading
C) the item master file, the routing file, and the work-center master file
D) lower costs, faster delivery, and dependable delivery
E) Gantt charts, Johnson’s rule and the Pareto principle
Smooth FM Radio uses a __________ approach when it mixes pre-recorded local
segments with its national music blocks.
A) mass customization
B) product focus
C) process focus
D) repetitive focus
E) both D and A
Advantages of outsourcing do not include
A) cost savings
B) outside expertise
C) renewed focus on core competencies
D) gaining outside technologies
E) creating future competition
__________ is a Japanese term to describe suppliers who become part of a company
coalition.
A graphic design studio is considering three new computers. The first model, A, costs
$5000. Model B and C cost $3000 and $1000 respectively. If each customer provides
$50 of revenue and variable costs are $20/customer, find the number of customers
required for each model to break even.
If = 9 ounces, = 0.5 ounces, and n = 9, calculate the 3-sigma control limits.
The quarterly sales for specific educational software over the past three years are given
in the following table. Compute the four seasonal factors.
__________ is a forecasting technique based upon salespersons’ estimates of expected
sales.