Many suppliers feel that having a variety of customers is better than being tied to
long-term contracts with one customer.
When innovation replaces cost as a firm’s focus for location decisions, the presence of
other state-of-the-art firms is a plus, not a negative, for the firm’s competitiveness.
Short-term scheduling is important to efficiency and to cost reduction, but its impact is
not of strategic importance.
In a transportation minimization problem, the negative improvement index associated
with a cell indicates that reallocating units to that cell would lower costs.
Acceptance sampling accepts or rejects an entire lot based on the information contained
in the sample.
A hospital emergency room always follows a first-in, first-served queue discipline in
the interest of fairness.
TPS stands for Toyota Production System.
Low-cost leadership is the ability to distinguish the offerings of the organization in any
way that the customer perceives as adding value.
By their very nature, projects have a limited lifetime, and that sets project management
apart from the management of more traditional activities.
A state of nature is an occurrence of a situation over which the decision maker has little
or no control.
Boeing’s development of the 787 Dreamliner is an example of a company obtaining a
competitive advantage through product differentiation/innovation.
Which of the following are advantages to simulation?
I. Time compression
II. What-if questions are possible
III. Flexibility
IV. Trial and Error approach
V. Input must be user generated
A) I, III, V
B) I, II, V
C) II, III, IV, V
D) I, II, IV, V
E) I, II, III
In the quest for competitive advantage, which of the following is a JIT requirement?
A) small number of job classifications
B) reduced number of vendors
C) reduced space for inventory
D) quality by suppliers
E) All of the above are JIT requirements.
The crossover point is that production quantity where
A) variable costs of one process equal the variable costs of another process
B) fixed costs of a process are equal to its variable costs
C) total costs equal total revenues for a process
D) total costs for one process equal total costs for another process
E) the process no longer loses money
Machines A, B, C, and D have been in use for several years, while machine E is new.
The following table provides data on the value of production of each job when
performed on a specific machine.
a. Determine the set of assignments that maximizes production value.
b. What is the total production value of your assignments?
c. Which machine should be retired (i.e., gets no assignment)?
d. If they do retire one machine, will they be as profitable without it as with it? Explain.
A fabrication company wants to increase capacity by adding a new machine. The firm is
considering proposals from vendor A and vendor B. The fixed costs for machine A are
$90,000 and for machine B, $75,000. The variable cost for A is $15.00 per unit and for
B, $18.00. The revenue generated by the units processed on these machines is $21 per
unit. If the estimated output is 5000 units, which machine should be purchased?
A) machine A
B) machine B
C) either machine A or machine B
D) no purchase because neither machine yields a profit at that volume
E) purchase both machines since they are both profitable
The correct sequence from longest to smallest duration scheduling is
A) capacity planning, aggregate planning, master schedule, short-term schedule
B) aggregate planning, capacity planning, master schedule, short-term schedule
C) master schedule, capacity planning, aggregate planning, short-term schedule
D) master schedule, aggregate planning, capacity planning, short-term schedule
E) None of the above is correct
Consider a firm with a 2007 net income of $20 million, revenue of $60 million and cost
of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory
and $500,000 of property, plant & equipment, how many weeks of supply does the firm
hold?
A) 12.50
B) 5.20
C) 2.60
D) 0.08
E) 4.16
Timing a sample of a worker’s performance and using it to set a standard is the work
measurement technique of
A) predetermined time standards
B) time studies
C) work sampling
D) methods time measurement
E) left-hand, right-hand charting
The critical path for the network activities shown below is __________ with duration
__________.
A) A-D-E; 5
B) B-E; 6
C) B-D-E; 7
D) A-C-E; 10
E) B-C-E; 12
Which of the following is not characteristic of a TPS employee?
A) knowledgeable
B) strict job classifications
C) know more about their job than anyone else
D) empowered
E) All of the above characterize a TPS employee.
Jacquie Welkener, operations manager for ABC Technologies, must schedule work for
the next five days. Each unit takes 30 minutes to process. Available capacity is 8 hours
per day. The production order quantities are 12, 18, 20, 13, and 17 for Monday through
Friday, respectively. What should be the production plan?
What is the ‘supermarket” as it is used in MRP? How does it alter the responsibility for
dealing with lead-time offsets?
McDonald’s “Made for You” kitchen system represents a __________ use of layout
decisions.
__________ is the failure rate early in the life of a product or process.
Distinguish a dependent variable from an independent variable.