Earned Value Management (EVM) is a technique for measuring project progress in an
objective manner.
Answer:
A BOM file is often called a product structure file or product tree because it shows how
a product is put together.
Answer:
For an activity in a CPM analysis, the Early Start time is 8 and the Late Start time is 10.
Which of the following statements is
Answer:
The optimal strategy for functional products is to use a responsive supply-chain.
Answer:
MRP stands for Material Requirements Planning.
Answer:
Using the formula in the textbook the only parameters we need to determine the number
of Kanban card sets is the average number of units demanded over some time period,
the container size, and the safety stock.
Answer:
A bank branch manager position is not an OSCM-type of job.
Answer:
Workcenter layouts allocate dissimilar machines into cells to work on products that
have dissimilar processing requirements.
Answer:
When forecast errors occur in a normally distributed pattern, the ratio of the mean
absolute deviation to the standard deviation is 2 to 1, or 2 x MAD = 1 standard
deviation.
Answer:
“Supply Chain” includes only inbound freight and inventory.
Answer:
The closer the customer is to the customer order decoupling point the longer it takes the
customer to receive the product.
Answer:
Exponential smoothing forecasts always lag behind the actual occurrence but can be
corrected somewhat with a trend adjustment.
Answer:
A general purpose machine is less capable than a special purpose machine in certain
tasks but can perform a broader variety of tasks.
Answer:
The central problem in virtually every waiting line situation is a trade-off decision
balancing the costs of adding services with the costs of waiting.
Answer:
Savings from reduced inventory results in increased profit.
Answer:
Service innovations can be patented.
Answer:
Using the fixed-time period inventory model, and given an average daily demand of 75
units, 10 days between inventory reviews, 2 days for lead time, 50 units of inventory on
hand, a service probability of 95 percent, and a standard deviation of demand over the
review and lead time of 8 units, which of the following is the order quantity?
A. 863
B. 948
C. 1,044
D. 1,178
E. 4,510
Answer:
Using the assembly-line balancing procedure, which of the following is the required
cycle time if the production time in minutes per day is 1440 and the required output per
day in units is 2000?
A. 0.72
B. 1.388
C. 250
D. 500
E. Cannot be determined from the information above
Answer:
Which of the following is a dynamic lot-sizing technique that calculates the order
quantity by comparing the carrying cost and the setup (or ordering) costs for various lot
sizes and then selects the lot size in which these are most nearly equal?
A. Kanban
B. Just-in-time system
C. MRP
D. Least unit cost
E. Least total cost
Answer:
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
Answer:
When a company seeks to match the benefits of a successful position while maintaining
its existing position in offering customers a variety of differing services, what is this
process called?
A. Operations capability analysis
B. Straddling
C. Order qualifying
D. Order winning
E. Inter-functional analysis
Answer:
A flow chart as part of a six-sigma quality improvement process might be found in
which DMAIC category?
A. Define
B. Measure
C. Analyze
D. Improve
E. Control
Answer:
Which of the following is a multifactor measure of productivity?
A. Output/(Materials)
B. Output/(Labor + Capital + Energy)
C. Output/All resources used
D. Output/Inputs
E. All of the above
Answer:
Which of the following is not considered a major work flow structure?
A. Work Center
B. Project
C. Assembly line
D. Fabrication
E. Continuous Flow
Answer:
Which of the following basic types of process structures is one which equipment or
work processes are arranged according to the progressive steps by which the product is
made?
A. Project
B. Workcenter
C. Manufacturing cell
D. Assembly line
E. Continuous process
Answer:
If a firm produced a standard item with relatively stable demand, the smoothing
constant alpha (reaction rate to differences) used in an exponential smoothing
forecasting model would tend to be in which of the following ranges?
A. 5 % to 10 %
B. 20 % to 50 %
C. 20 % to 80 %
D. 60 % to 120 %
E. 90 % to 100 %
Answer:
The six-step process for green sourcing includes which of the following?
A. Provide a press release to local (and perhaps national) media.
B. Include members of environmental groups in the decision
C. Notify the state and federal environmental agencies of your plans
D. Perform an environmental impact study
E. Develop the sourcing strategy
Answer:
We would expect to see which of the following in an MRP system’s inventory status
file?
A. End items produced
B. Late/early delivery records
C. Scrap parts
D. Labor efficiency
E. Computer errors
Answer:
In an overview of the major operations planning activities in a typical logistics
organization, which of the following activities most immediately follows aggregate
sales and operations planning?
A. Process planning
B. Strategic capacity planning
C. Vehicle dispatching
D. Vehicle capacity planning
E. Warehouse receipt planning
Answer:
A company has a MAD of 10. Its wants to have a 99.7 percent control limits on its
forecasting system. It’s most recent tracking signal value is 3.1. What can the company
conclude from this information?
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. It is using an inappropriate forecasting methodology
Answer:
In outsourcing which of the following internal activities and decision responsibilities
cannot be transferred to outside contractors?
A. Activities involving people
B. Activities involving facilities
C. Activities involving equipment
D. Activities involving shareholders
E. Activities involving technology
Answer:
MRP systems seek to achieve which of the following?
A. Minimize lot sizes
B. Determine the number of dependent demand items needed
C. Relieve capacity bottlenecks
D. Provide a yardstick for future improvements
E. Improve on JIT methods
Answer:
An activity-system map is which of the following?
A. A network guide to route airlines
B. A listing of activities that make up a project
C. A diagram that shows how a company’s strategy is delivered to customers
D. A facility layout schematic noting what is done where
E. A timeline displaying major planned events
Answer:
In which of the following situations should we not use the transportation method of
linear programming?
A. To find a new site location for a plant
B. To minimize costs of shipping “n” units to “m” destinations
C. To maximize profits of shipping “n” units to “m” destinations
D. To determine which corner of a street intersection to locate a retail service facility
E. To locate a finished goods distribution warehouse
Answer:
The triple bottom line considers evaluating the firm against social, economic, and
environmental criteria.
Answer:
One of the objectives of facility location analysis is to select a site with the lowest total
cost. Which of the following are hidden costs that should be included in the analysis?
A. Becoming less responsive to the customer
B. Supplier costs
C. Taxes
D. Construction costs
E. Product life cycle costs
Answer:
If the best operating level of a piece of equipment is at a rate of 400 units per hour and
the actual output during an hour is 300 units, which of the following is the capacity
utilization rate?
A. 0.75
B. 1.00
C. 1.33
D. 2.33
E. 300
Answer:
Which of the following are fixed-time period inventory models?
A. The EOQ model
B. The least cost method
C. The Q model
D. Periodic system model
E. Just-in-time model
Answer:
In business forecasting, what is usually considered a short-term time period?
A. Four weeks or less
B. More than three months
C. Six months or more
D. Less than three months
E. One year
Answer:
The six-step process for green sourcing does not include which of the following?
A. Assess the opportunity
B. Assess the supply base
C. Confer with environmental groups
D. Engage sourcing agents
E. Institutionalize the sourcing strategy
Answer:
The primary purpose of the Malcolm Baldrige National Quality Award is which of the
following?
A. To encourage the spread of statistical quality control
B. To improve human resource development and management in manufacturing
C. To help companies review and structure their quality programs.
D. To prove that American firms were competitive in quality
E. To emphasize the use of quantitative methods in process management
Answer:
In getting your first driver’s license, several steps had to be taken. First, you took the
written test. Then you took the driving test. Then your photograph was taken and the
license made. What was the queuing system line structure in the Department of Motor
Vehicles? ________________________________
Answer:
In infinite queuing theory, the average waiting time in line is denoted by what symbol?
_________________________
Answer:
What is the criterion for determining whether a project activity is on the “critical path”
or not?
Answer:
Explain why lean manufacturing requires a stable demand environment.
Answer:
Using the cut-and-try method for aggregate operations planning we can determine the
production requirement in units of product. If beginning inventory is 4,000 units, the
demand forecast is 2,900 units, and the required safety stock is 10% of the demand
forecast, what is the production requirement? ________________________________
Answer:
Assume a fixed cost for a process of $100,000. The variable cost to produce each unit
of product is $10, and the selling price for the finished product is $50. Ignoring
inventory, how many units must the firm sell to break-even?
______________________
Answer:
Answer:
The acronym RFP stands for: ________________________
Answer:
