Overtime is the most common method for increasing output capacity.
Even though loss of customer goodwill is an intangible cost, it is considered a type of
shortage cost.
Output-based incentive systems are based on the assumption that some workers are
motivated by money and produce more when pay is linked to performance.
A master production schedule is more specific (tactical) than an aggregate plan.
Quality planning, employee training in quality measurement, and cost of maintaining
records of information and data related to quality, are appraisal costs.
Acceptance sampling occurs after the product has been produced.
World-class companies are known for having zero WIP inventory in their facilities.
Solver’s check for a model being linear is not perfect.
Services require a single activity or a series of activities and are identified by the term
phase.
The advantage of formal optimization modeling is that it can simultaneously consider
the effects of alternate decisions to produce the best overall decision according to the
objective.
The following table provides tasks on an assembly line, along with their predecessors
and task times.
If desired output is 75 units per hour, compute (a) the associated cycle time, (b) the
assignment of tasks to stations using the longest task time rule, and (c) the efficiency of
your solution.
Suppose that a plant manager uses economic batch sizes for production of a product.
Suppose further that the setup cost is $50 per batch, the holding cost per unit per year is
$10, the annual demand is 30,000 units, the firm operates (and experiences demand)
300 days per year, and the production rate per day is 1000 units. What will be the
maximum inventory level that this product ever reaches?
a) 577
b) 30
c) 519
d) 27,000
e) 58
Which is typically the most difficult data pattern to predict?
a) Horizontal
b) Trend
c)
d) Seasonality
e) Cycle
A chart showing the number of defects that result from different causes would be used
in:
a) Pareto analysis
b) Flowcharts
c) Cause-and-effect diagrams
d) Benchmarking
e) Control charts
Which of the following is not a remedy for the bullwhip effect?
a) Allocate units based on past demand
b) Price stabilization
c) Base forecasts on demand coming from the immediate downstream customer
d) Eliminate order batching
e) Information sharing
The MRP input listing the intermediate assemblies, subassemblies, component parts,
raw materials, and the quantities of each needed to produce one final product is the
___________________________.
a) authorized master production schedule
b) bill of materials file
c) inventory records file
d) part status file
e) assembly time chart
An OC curve is an example of what?
a) Traditional statistical tools
b) Fishbone diagramming
c) Acceptance sampling
d) Experimental design
e) Statistical process control
Cost data
Capacity data
Demand data
Develop a chase aggregate plan without inventory and back orders. Use no undertime
or subcontracting. When demand exceeds regular plus maximum overtime production,
hire enough employees to meet demand, working as much overtime as possible. When
demand is less than regular time production, fire just enough workers to avoid
undertime (you may then use a minimal amount of overtime to get production back up
to demand) (data given above).
(a) What is the workforce at the end of the last period? How many total were hired?
How many total were fired?
(b) How many total units were produced using overtime?
(c) What is the total cost?
(d) What is the cost per unit?
Shortening a project is called ______________ the project.
a) reducing
b) crashing
c) cutting short
d) wrecking
e) shaking
Which of the following is a causal forecasting method?
a) Naïve
b) Moving average
c) Weighted moving average
d) Trend adjusted exponential smoothing
e) Linear regression
Yesterday, John produced 100 units in 8 hours. Today he produced the same amount in
6 hours. What is his percent productivity change?
a) 33.33%
b) 0.00%
c) 25.55%
d) 25.00%
e) 4.67%
Eight samples of n = 50 were taken by an operator at a workstation in a production
process. The number of defective items in each sample was recorded as follows.
(a) Management wants to develop a p-chart. What are the control limits?
(b) Is the process in a state of control?
A clinic has been set up to give flu shots to the elderly in a large city. The design
capacity is 50 seniors per hour, and the effective capacity is 44 seniors per hour.
Yesterday the clinic was open for ten hours and gave flu shots to 330 seniors.
(a) What is the design utilization?
(b) What is the effective utilization?
Without kanbans, the withdrawal and production of materials
a) can continue in a reduced manner
b) will not be well coordinated
c) cannot take place
d) would continue based on historical needs
e) would continue based on forecasted needs
What is the optimal solution (X, Y, Z) to the following linear program?
Max 2X + 4Y + 6Z
Subject to
Z ≤ 0
X + Y + Z ≤ 20
X, Y, Z ≥ 0
a) (0, 0, 20)
b) (20, 0, 0)
c) (0, 20, 0)
d) (20, 20, 20)
e) the solution is unbounded
What does ERP stand for?
a) educational resources planning
b) end routing procedure
c) enterprise reliability production
d) enterprise resource planning
e) easy resource planning
Aalogistics Co. has just signed a contract to deliver products to three locations, and they
are trying to decide where to put their new warehouse. The three delivery locations are
Chicago, Kansas City, and Memphis. The two potential sites for the warehouse are
Peoria and St. Louis. The x, y coordinates for the delivery locations and warehouses are
as follows:
The total quantity to be delivered to each destination is: 400 to Chicago, 150 to Kansas
City, and 100 to Memphis.
(a) Calculate the total load-distance value from each potential warehouse location.
(b) Where should the new warehouse be located?
To plot the break-even line one end of the line is the y-intercept point. The other line
point
a) requires the center of gravity calculation
b) is established by the finance department
c) is arbitrary but usually the expected volume
d) is not arbitrary
e) is derived from the location analysis
To perform the financial calculations of the make-or-buy decision, which costs are
needed?
a) Fixed and variable
b) Fixed and average
c) Variable and average
d) Variable only
e) Average only
Which of the following is least like a product layout?
a) high-volume paper mill
b) automobile plant
c) hospital
d) single-line cafeteria
e) car wash
Consider a single-line, single-server waiting line system. The arrival rate λ is 80 people
per hour, and the service rate μ is 120 people per hour. What is the probability of
having 3 or more units in the system?
a) 29.63%
b) 33.33%
c) 0.00%
d) 9.88%
e) 66.67%
Selection of the lot size rule to be used should be based on minimizing
____________________.
a) the order size
b) late shipments
c) total processing time
d) quality problems
e) the sum of ordering and carrying costs
Which business function is responsible for managing cash flow, current assets, and
capital investments?
a) accounting
b) finance
c) marketing
d) operations management
e) purchasing
The person that comes from the top ranks of the organization and is responsible for
providing direction and overseeing all aspects of a six-sigma implementation process is
called a ________________________.
a) general
b) admiral
c) director
d) producer
e) champion
In the mid-1970s, MRPII was developed. One of its major components is:
a) leadership
b) inventory management
c) operations execution
d) strategic management
e) marketing
What is the maximum amount of time that each workstation has to complete its
assigned task called?
Firms use ________________________ to concentrate on their
________________________.
When Projected Available is negative, the Master Production Schedule must include
________________________.
The value of the constraint expression to the left of the ≤, ≥, or = signs is
__________.
Jobs that cost less than the value they add are said to be __________________.