In a production inventory, (a month’s production) + (beginning inventory) – (ending
inventory) (number of lost sales for the month) = _____.
a. overtime limits
b. demand in the month
c. increase in production
d. decrease in production
Answer:
_____ is measured by order fulfillment lead time or perfect delivery fulfillment.
a. Responsiveness
b. Delivery reliability
c. Supply chain efficiency
d. Financial measure
Answer:
Which of the following statements is TRUE of the LensCrafters case study?
a. LensCrafters’s peripheral product is an eyewear.
b. Each store has very different layout and servicescape.
c. The fitting stations are in a high-contact area.
d. Low cost makes a long drive to a LensCrafters store worthwhile.
Answer:
Infinite scalability is most related to _____.
a. high variable cost
b. high fixed cost
c. high scalability
d. low scalability
Answer:
The fundamental planning tool used to implement quality function deployment (QFD)
is the:
a. voice of the customer.
b. technical requirement relationship matrix.
c. market and competitive evaluation rating matrix.
d. House of Quality.
Answer:
If the probability of a number of people waiting is 0.10, the probability of one person
waiting is 0.09, and the probability of two people waiting is 0.08, what is the
probability of three or more people waiting?
a. 0.27
b. 0.73
c. 0.90
d. Cannot be determined
Answer:
Safety capacity is most closely related to _____.
a. bottlenecks
b. economies of scale
c. unanticipated events
d. focused factory
Answer:
A retail store sells a popular cosmetic called Krypton, and the store manager is given
$300,000 by the corporate office to improve store performance any way she thinks best.
The “base case” information is a price of $30 per bottle, a contribution margin of 0.50, a
customer defection rate of 20%, and a repurchase frequency of 4 times a year. If these
improvement funds could be used to either (a) increase the contribution margin to 0.60
or (b) reduce the customer defection rate to 15% or (c) increase the repurchase
frequency to 5 times per year, please answer the questions listed below. (Assume all
other variables remain at the base case level for each of the three improvement options.)
Answer:
In the 1:10:100 Rule, which of the following would be correct?
a. If a defect or service error is identified and corrected at the design stage, it might cost
$100 to fix.
b. If a defect or service error is identified and corrected at the production process stage,
it might cost $100 to fix.
c. If a defect or service error is identified and corrected after it reaches the customer, it
might cost $100 to fix.
d. If a defect or service error is identified and corrected at the design stage, it might cost
$1 x $10 x $100 = $1,000 to fix.
Answer:
A sandwich shop near a college has a special counter, open from 11 am to 1 pm, which
is used exclusively for selling pre-made sandwiches. This is much faster than making
sandwiches-to-order at lunch time. The clerk can handle a customer in about one
minute. Customers arrive at a rate of 40 per hour on average.
a. How long (in minutes) does a customer have to wait?
b. What percentage of the time is the employee working?
c. What is the average number of customers waiting in line?
d. What is the probability of there being 3 or more customers in the system?
Answer:
Quality at the source means that quality is controlled by _____.
a. people responsible for the work
b. quality control managers
c. front line supervisors
d. top management
Answer:
A company has developed a project using the Critical Path Method (CPM) but is
interested in accelerating it if possible. The project has the following activities,
durations (in weeks), costs, and precedence relationships:
a. How many paths are in the network?
b. What is the earliest finish (EF) time for activity f?
c. What is the slack in weeks for activity c?
d. What is the critical path?
e. What is the duration of the critical path in weeks?
f. What activity should be crashed first to accelerate the project?
g. What is the final duration of the fully crashed project?
h. What is the total crashing cost for the project?
Answer:
If no special causes affect the output of a process, the process is said to be _____; and if
special causes are present, the process is said to be _____.
a. qualified; not qualified
b. in control; out of control
c. capable; not capable
d. certified; not certified
Answer:
Which of the following statements is NOT true regarding the differences between goods
and services?
a. Demand for services is easier to forecast.
b. Customers participate in many services.
c. Services cannot be stored as physical inventory.
d. Patents do not protect service processes.
Answer:
Which of the following statements in the Boston Red Sox (BRS) case study is TRUE?
a. Break-even analysis is the dominant method used in the case analysis to evaluate the
four potential stadium locations.
b. The location with zero land cost is the best site to locate the stadium.
c. Qualitative criteria are not important in this case study.
d. None of the above is true.
Answer:
_____ is the process of having suppliers provide goods and services that were
previously provided internally.
a. Outsourcing
b. Horizontal integration
c. Reshoring
d. Vertical integration
Answer:
Which of the following statements is NOT TRUE about special cause variations?
a. They disrupt the random patterns of common cause variations.
b. They arise from internal sources only.
c. They appear sporadically.
d. They are easily detectable using statistical methods.
Answer:
In queuing models, what are channels?
a. The walking paths through service systems
b. Service phases
c. The number of waiting lines in a system
d. External sources from which customers originate
Answer:
A company is considering a rate change, either an increase or a decrease in production,
where Xt = production in a time period; Rt = increase in production rate from Period
t−1 to Period t; Dt = decrease in production rate from Period t−1 to Period t. Which of
the following is correct?
a. Xt − Xt – 1 = Dt − Rt
b. Xt – 1 − Xt = Dt − Rt
c. Xt – 1 − Xt = Rt − Dt
d. Xt − Xt – 1 = Rt − Dt
Answer:
Determine the net requirement for E if the gross requirement for A is still 200 and
current on-hand inventory balance for A is 60, D is 200, E is 100, and F is 600.
a. Less than or equal to 1,000 units
b. Greater than 1,000 but less than or equal to 1,500 units
c. Greater than 1,500 but less than or equal to 2,000 units
d. Greater than 2,000 but less than or equal to 2,500 units
Answer:
Using the data shown below in Table 3 for the sales of a new CD at a store for the last 4
weeks, answer the questions from #16 to #18.
Table 3
The four-period moving average for next week (week 5) is:
a. less than or equal to 100.
b. more than 100 but less than or equal to 110.
c. more than 110 but less than or equal to 120.
d. more than 120 but less than or equal to 130.
Answer:
Which one of the following statements about the Casey Company case study on quality
management is TRUE?
a. The first step in this case analysis was to create a process flowchart and checksheet.
b. Control charts verify that all aspects of the process are in statistical process control.
c. Control charts verify that the data entry employee was doing an excellent job.
d. The R-chart for this statistical process control analysis was out of control.
Answer:
Which of the following is LEAST relevant to Program Evaluation and Review
Technique (PERT)?
a. Beta distribution
b. Variance of activity time
c. Most probable time
d. Constant activity time
Answer:
For a single-server queuing model, the utilization factor has to be:
a. less than one.
b. equal to one.
c. greater than one.
d. less than or equal to one.
Answer:
A manufacturing company is planning to use Project Evaluation and Review Technique
to setup a project for a new production line. For this project, they have established the
following activities, precedence relationships, and time estimates in days:
a. What is the expected duration for activity b?
b. What is the variance of activity d?
c. How many paths are there in the network?
d. What is the earliest finish (EF) time for activity e?
e. What is the slack in days for activity c?
f. What is the critical path?
g. What is the duration of the critical path in days?
h. What is the standard deviation of the critical path?
i. What is the probability of completing the project within 50 days?
Answer:
Rogers Manufacturing Company makes high quality canvas tents. Their production
manager is considering a change from its manual system of stitching to an automated
system. The following are the costs for the two systems:
Answer:
The triple bottom line (TBL or 3BL) refers to the measurement of sustainability in all of
the following areas EXCEPT:
a. economic area.
b. social area.
c. technological area.
d. environmental area.
Answer:
What sales price must be charged for Alternative 2 to break even?
a. Less than or equal to $2.00
b. More than $2.00 but less than or equal to $3.00
c. More than $3.00 but less than or equal to $4.00
d. More than $4.00 but less than or equal to $5.00
Answer:
Which one of the following statements is FALSE?
a. Historically, General Motors used the push system to get vehicles to their dealers.
b. Walmart is a good example of a company that runs a highly efficient supply chain.
c. Apple and Nordstrom companies are examples of having push supply chains.
d. Zappos is a good example of using third-party logistics (3PL) providers for customer
deliveries and returns.
Answer:
A movie theater requires the following minimum number of employees, each of whom
is required to have two consecutive days off.
Using staff scheduling method, the most overstaffed day is _____.
a. Friday only
b. Monday only
c. Tuesday only
d. Thursday only
Answer:
The center line (p-bar) for a p-chart is 0.50 with an ULC = 0.70 and a LCL = 0.35. The
results of the next eight sample means are 0.45, 60, 0.39, 0.44, 0.48, 0.58, 0.54, and
0.64. Which of the following actions should be taken in this scenario?
a. Nothingthe process is in control.
b. Investigate assignable causes because four observations are above the center line.
c. Investigate assignable causes because there is a bad trend (run).
d. Investigate assignable causes because four of the eight samples are below the center
line.
Answer:
Philip. B. Crosby taught his 14 Points to the Japanese in the 1950s and was a principle
force in their quality reorganization.
Answer:
Discuss a passenger’s imputed cost of waiting.
Answer:
A vertical integration strategy generally reduces the complexity of managing a value
chain.
Answer:
Making decisions in an emergency room of a hospital is an example of a decision
analysis situation.
Answer:
Discuss the two types of stockouts.
Answer:
The earliest due date (EDD) rule minimizes the maximum of jobs past due but doesn’t
perform well on average flow time, work-in-process (WIP) inventory, or resource
utilization.
Answer:
Revenue management systems allocate nonperishable assets across market segments.
Answer:
Assurance is the willingness to help customers and provide prompt recovery to service
upsets.
Answer:
As the value of k is increased in a moving average forecasting model, the forecast
reacts more slowly to recent changes in the time series.
Answer:
Changes in goods and services for a firm’s customer benefit package do not impact
facility layouts.
Answer:
Many products that appear to be only physical goods often include bundled services.
Answer:
Scheduling problems occur almost exclusively in manufacturing.
Answer:
In the critical path method (CPM), there can only be one critical path.
Answer:
Principles of lean operating systems include all of the following EXCEPT _____.
A) eliminating waste
B) improving information technology
C) increasing speed and response
D) reducing costs
Answer:
Explain the difference between goods and service quality, and how they are measured.
Answer:
Based on the information shown below, develop forecasts for June using both a
two-period moving average model and an exponential smoothing model with α = 0.10.
For the exponential smoothing model, assume the forecast for February was 800.
Answer:
A company can differentiate itself from its competitors by positioning itself along the
diagonal of the product-process matrix.
Answer:
A restaurant handles 500 customers every day. The restaurant encounters 25 service
upsets during a typical day. The restaurant is open on all seven days of a week. If the
restaurant receives 10 complaints per week, what is the epmo measure?
Answer: