Which of the following statements is NOT TRUE regarding the fixed-period system
(FPS)?
a. The time between orders is constant, but the order quantity might vary.
b. An order is time-triggered, not inventory-triggered.
c. The optimal replenishment level includes the demand during the review period, plus
any desired safety stock.
d. When demand is not certain, the FPS addresses stockouts by adding safety stock to
the expected demand during time T + L.
Answer:
The Baker county government has decided to redo the street and plans to block the
street off which causes considerable inconvenience to people. The critical path method
(CPM) project has three sequential (in series, that is “i” is first, then “ii” and finally
“iii.”) paths defined as follows: (i) path A-B-C-H to install street lights and electrical
wiring that takes 10 days, (ii) path G-J-K-L to install sidewalks with handicap
capabilities that takes 20 days, and (iii) path U-V-Z-W to repave the street including
storm drains that takes 8 days. Which one of the following statements is true?
a. The expected duration of the project is 10 + 20 + 8 = 38 days.
b. The expected duration of the project is 20 days.
c. The normal time is inversely related to the crash time.
d. The three sub-system precedent relationships are in parallel.
Answer:
Table 1Statistical Process Control (SPC) Problem Data for Service Waiting Times
Using Table 1, for the R-chart, what is the value of LCLR?
a. Less than or equal to 1.0
b. Greater than 1.0 but less than or equal to 1.5
c. Greater than 1.5 but less than or equal to 2.0
d. Greater than 2.0
Answer:
A company makes traffic signals for downtown streets. They are interested in
developing a product structure tree for one of their traffic signal models. Each traffic
signal is composed of a housing and bracket assembly. Each housing assembly is
composed of optical and casing subassemblies. Each bracket assembly is composed of a
hanger part and a wire outlet part. The optical subassembly is composed of 4 wire lead
subassemblies, 3 lens parts, 3 bulbs, and 3 socket parts. Each casing subassembly is
composed of 3 plastic molds and 3 hardware subassemblies. Each wire lead
subassembly is made up of 1 conductor part, 1 insulation part, and 4 spade connector
parts. Each hardware subassembly is made up of 4 nuts, 4 bolts, and 8 washers.
Answer:
What sales price must be charged for Alternative 3 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 of the following is NOT one of W. Edwards Deming’s 14 Points?
a. Create a vision and demonstrate commitment.
b. Create an environment that drives out fear.
c. Continuously improve products and processes.
d. Adopt Zero Defects as the only performance standard.
Answer:
Which of the following statements is TRUE about Little’s Law?
a. It explains the relationship between waiting time and throughput.
b. It takes into account any randomness in arrivals or service times.
c. It focuses on finished goods inventory.
d. It evaluates average process performance.
Answer:
Which of the following is NOT correct regarding product or process simplification?
a. Reduces flexibility
b. Reduces opportunity for error
c. Speeds up flow time
d. Improves reliability
Answer:
A company is interested in developing a quarterly aggregate production plan, but they
aren’t sure if level production strategy or chase demand strategy would be better. They
have the following information available regarding their production operation:
Number of working days per quarter = 65 days
Number of hours per day per person = 8 hours
Labor standard to produce one unit = 3 hours
Demand for four quarters respectively: 40,000, 42,000, 41,000, and 44,000 units
a. Using a level production plan, how many workers would be needed each quarter?
b. For a level production plan, what is the beginning inventory in quarter 2?
c. Using a level production plan, in how many quarters are the machine requirements
over capacity?
d. Using a chase demand plan, how many workers are needed for quarter 1?
e. How many additional workers are needed in quarter 2 under a chase demand plan?
Answer:
An ATM machine provides four sequential steps in processing a transaction. Over the
last quarter, the reliability of each of these steps was 0.92, 0.97, 0.95, and 0.90. What is
the overall reliability of the machine?
a. Less than 0.60
b. Equal to or greater than 0.60 but less than 0.70
c. Equal to or greater than 0.70 but less than 0.80
d. Equal to or greater than 0.80 but less than 0.90
Answer:
Backorders:
a. result from lost sales.
b. have little financial impact.
c. may occur as a result of a stockout.
d. force a customer to purchase elsewhere.
Answer:
Johnson’s sequencing rule is used to sequence:
a. several jobs through five work centers.
b. several jobs through one work center.
c. two jobs through several work centers.
d. several jobs through two work centers.
Answer:
Which of the following is NOT a key dimension of service quality?
a. Conformance
b. Tangibles
c. Empathy
d. Reliability
Answer:
The decision criterion, for a one-time decision without event probabilities, which is
neither aggressive nor conservative, is known as _____.
a. maximax
b. maximin
c. minimax regret
d. expected value
Answer:
Which of the following is least likely to be found in service organizations?
a. Intermediate levels in aggregate planning
b. Bills of labor (BOL)
c. Bills of resources and forecasting
d. Dependent demand
Answer:
Needing the actual time of arrival and actual time of serving relates best with:
a. fixed-time-increment simulation models.
b. next-event simulation models.
c. random numbers.
d. queuing formulas.
Answer:
A company is investigating two automated approaches for its production process. It has
collected the following cost information about each:
The breakeven volume is _____.
a. less than or equal to 20,000 units
b. more than 20,000 but less than or equal to 40,00 units
c. more than 40,000 but less than or equal to 60,000 units
d. more than 60,000 but less than or equal to 80,000 units
Answer:
_____ is the use of a criterion that allows new arrivals to displace members of the
current queue and become the first to receive service.
a. Shortest Processing Time (SPT)
b. A random queue discipline
c. Preemption
d. Reservation
Answer:
In design specification terminology, permissible variation is called the:
a. nominal.
b. buffer.
c. tolerance.
d. leeway.
Answer:
Demand that incorporates uncertainty is called _____ demand.
a. statistical
b. average
c. stochastic
d. deterministic
Answer:
Ayben is responsible for managing an advertising and promotion project using Program
Evaluation and Review Technique (PERT) with the following activities (times are given
in weeks).
Draw the project network here. BLANK SPACES
Using the table for the advertising and promotion project, what is the probability
percentage that the project will be completed within 16 weeks?
a. Less than or equal to 20%
b. Greater than 20% but less than or equal to 40%
c. Greater than 40% but less than or equal to 60%
d. Greater than 60%
Answer:
Which of the following key activities is NOT performed by operations managers?
a. Purchasing
b. Cost accounting
c. Forecasting
d. Service encounter design
Answer:
If forecast demand exceeds the total factory or supply capacity, managers might simply
decide not to meet forecast demand. This decision would most likely be made at which
planning level?
a. Aggregate planningLevel 1
b. DisaggregationLevel 2
c. ExecutionLevel 3
d. Shop floor controllingLevel 4
Answer:
Which of the following is TRUE regarding a responsive supply chain?
a. Demand is stable and predictable.
b. Product life cycles are short and change often because of innovation.
c. Customers require standardization.
d. Contribution margins are low.
Answer:
Which of the following lessons from the Bookmaster case study is FALSE?
a. Total customer processing time increases in the traditional bricks-and-mortar book
value chain compared to an e-book value chain.
b. An advantage of the internet-based e-book value chain is convenience.
c. The nature of service encounters changed from the traditional bricks-and-mortar book
value chain to an e-book value chain.
d. The carbon footprint for the total traditional bricks and mortar book value chain is
less than for an e-book value chain.
Answer:
Which of the following statements about goods and services is FALSE?
a. Service encounters are interactions between customers and service providers.
b. Services can be stored as physical inventory for future sale.
c. Goods are tangible, while services are intangible.
d. The demand for service is more difficult to predict than the demand for goods.
Answer:
The process of producing large quantities of items as a group before they are transferred
to the next operation is known as _____.
a. batching
b. outsourcing
c. reshoring
d. offshoring
Answer:
Which of the following is NOT an aggregate planning decision option?
a. Promotion and advertising
b. Subcontracting
c. Layoffs
d. Staff schedules
Answer:
Which of the following is NOT a common reason for facility layout studies?
a. There is significant change in demand or throughput volume.
b. A new good or service is introduced to the customer benefit package.
c. A new material supplier is used.
d. Different process, equipment and/or technology are installed.
Answer:
In which stage of the project life cycle would a project schedule be developed?
a. Define
b. Plan
c. Organize
d. Control
Answer:
A moving average model works best when _____ in the time series.
a. only irregular variation is present
b. only a trend is present
c. there is no trend, seasonal, or cyclical pattern
d. trend, seasonal, and cyclical patterns exist
Answer:
A(n) _____ team performs entire jobs rather than specialized, assembly-line work.
a. virtual
b. self-managed
c. natural work
d. ergonomic
Answer:
Discuss the seven major categories of waste as defined by Toyota Motor Company.
Answer:
Dependent demand, unlike independent demand, needs to be forecasted.
Answer:
The simpler the product design, the better the chance of high process efficiency.
Answer:
Supply chains must be redesigned when a firm’s product lines and markets change or
expand.
Answer:
Performance standards in services are analogous to manufacturing specifications.
Answer:
A single moving average is most appropriate for data with identifiable trends.
Answer:
Discuss some of the key economic and noneconomic factors that are evaluated in
making a facility location decision.
Answer:
As long as there are no points outside of the control limits in a control chart, the process
would always be considered to be in control.
Answer:
Explain the three time estimates used to characterize uncertainty of activity times in the
Program Evaluation and Review Technique (PERT) procedure.
Answer:
Many analytical queuing models exist, each based upon unique assumptions about the
nature of arrivals.
Answer:
What is the implied service rate at a bank teller’s window if demand is 26 customers per
hour, and the bank staffs 3 tellers with an average utilization of 80%?
Answer:
Using color-coded wires to reduce mistakes associated with assembling complex
electronic products is an example of an application of the poka-yoke concept.
Answer:
Discuss a simulator. Provide appropriate examples.
Answer:
Define and relate normal time and standard time.
Answer:
Two alternatives are being considered for a customer’s order whose anticipated volume
is not yet known. If the firm produces in-house, the fixed cost is $340,000 and variable
cost is $2.90 per unit. If the firm chooses to outsource, it will incur a fixed cost of
$275,000 and variable cost of $3.50 per unit. Determine the break-even quantity and a
decision rule of when to outsource.
Answer:
Job and process analysis should follow work measurement.
Answer:
A company is able to process 400 customer statements (bills) per day. The average
processing time is six (6) days. What is the average number of statements (bills) the
company has in process at any time?
Answer:
An employee was observed over an extended period of time for a work-sampling study
with the following results:
While doing her job in a 40-hour workweek, the employee helped 120 face-to-face,
walk-in customers. Determine the standard time in minutes that it took her to help each
customer.
Answer: