Complex products typically do not require material requirements planning (MRP) to
plan production or monitor inventory levels.
Overtime and undertime are common strategies for adjusting demand.
The assignment method of linear programming can be used for both loading and
employee scheduling.
To increase system reliability redundant parts can be built in to back up a failure.
All processes contain a certain amount of variation in their output.
Balking occurs when a customer waiting in a line moves from one line to another
because he believes it is moving faster.
The European Union requires that strict quality and environmental standards be met
before companies can do business with member countries.
The interface of workers with machines is probably the least important aspect of job
design.
Purchasing from a supplier is called procurement.
The first of five basic steps in strategy formulation is determining a firm’s order winners
and order qualifiers.
Successful quality-oriented firms recognize the importance of their employees when
developing a competitive strategy.
Sales and operations planning is an aggregate planning process for
a(n)______________ time horizon.
a. short-term
b. intermediate
c. long-term
d. infinite
If the following jobs are sequenced according to the DDATE rule then the mean
completion time (in days) for all jobs is (assume zero for today’s date)
a. 16.4 days.
b. 22.6 days.
c. 28.7 days.
d. 33.0 days
A firm has the following gross requirements for Item F. If ordering costs are $60 per
order and carrying costs are $0.50 per period.
If EOQ lot sizing is used to set the minimum order quantity, then the projected on hand
quantity at the end of period 3 is
a. 40.
b. 0.
c. 100.
d. 20.
A project consists of the following four activities with activity times in days:
Table YY
The amount of slack associated with activity C is
a. 4 days.
b. 3 days.
c. 2 days.
d. 1 day.
Successful companies use lean to
a. finely tune an operating system.
b. overhaul an operating system.
c. replace an operating system.
d. None of these answer choices is correct.
For the demand values and the January forecast shown in the table below the
exponential smoothing forecast for March using α = 0.40 is
a. 1,200.
b. 1,220.
c. 1,222.
d. 1,225.
The following information relates to a company’s aggregate production planning
activities:
Beginning Workforce = 125 workers
Production per Employee = 500 units per quarter
Hiring Cost = $750 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $10 per unit per quarter
If a chase demand strategy is used then the number of workers hired at the start of
quarter 4 is
a. 0
b. 15
c. 75
d. 125
The following table of probabilistic time estimates (in weeks) and activity predecessors
are provided for a project.
Table ZZ
The probability that the project could be completed in 34 weeks or less is
approximately
a. 86 percent.
b. 89 percent.
c. 91 percent.
d. 96 percent.
Which of the following are characteristic of lean applications U.S. soil?
a. plants are larger
b. deliveries from suppliers are less frequent
c. Kanbans are kept very simple.
d. All of these answer choices are correct.
The ability to meet present needs without compromising those of future generations is a
concept in product design known as
a. reusability.
b. maintainability.
c. reliability.
d. sustainability.
A forecast
a. predicts what will occur in the future.
b. results from an uncertain process.
c. support strategic planning.
d. All of these answer choices are correct.
Fairco, a family business, is considering making an investment in its manufacturing
operation. Three decisions are under consideration: (1) a large investment; (2) a
medium investment; and (3) a small investment. The business believes that there are
three possible future outcomes for its product: (1) increasing demand; (2) stable
demand; and (3) decreasing demand. The business believes that the probability for
increasing, stable and decreasing product demand are 0.4, 0.5, and 0.1, respectively.
The following payoff table describes the decision situation.
The expected value for the medium investment decision is
a. $600,000.
b. $540,000.
c. $330,000.
d. $165,000.
Kallie Inc., a, small parts manufacturer, has just engineered a new product for the
automotive industry. In order to produce the part the company can expand existing
facilities, acquire a competitor, or subcontract production. The company believes the
product will either experience high market demand or low market demand. The
following payoff table describes the company’s decision situation.
The best decision for Kallie Inc., using the Hurwicz decision criterion with a coefficient
of optimism equal to 0.3 is to
a. expand facilities.
b. acquire competitor.
c. subcontract production.
d. make no decision.
E-procurement is most often used for
a) direct products.
b) indirect products.
c) finished products.
d) international products.
Which of the following is a quantitative measure of maintainability?
a. design for manufacture (DFM)
b. mean time to repair (MTTR)
c. mean time between failures (MTBF)
d. quality function deployment (QFD)
What is productivity and how is it measured?
How does the pull system differ from the push system?
Companies often outsource to
e) focus on core competencies.
f) achieve greater flexibility.
g) reduce costs.
h) All of these answer choices are correct.
Briefly list the disadvantages of a cellular layout.
List and explain the three key supply chain performance indicators.
Is acceptance sampling consistent with TQM?