The forecasting error measurement that eliminates the measurement scale factor is the
_____.
a. mean square error (MSE)
b. mean absolute deviation (MAD)
c. root mean square error (RMSE)
d. mean absolute percentage error(MAPE)
Answer:
A company has a project based on Project Evaluation and Review Technique (PERT)
with path b-d-e-g-i that has the following activity time estimates in days:
a. What is the expected duration for activity e?
b. What is the variance for activity b?
c. What is the standard deviation of the path?
Answer:
_____ inventory acts as a buffer between workstations in flow shops or departments in
job shops to enable the operating process to continue.
a. Raw materials
b. Work-in-process
c. Cycle stock
d. Safety stock
Answer:
A retail store sells a popular cosmetic called Anya,and the store manager is given
$100,000 by the corporate office to improve store performance any way she thinks best.
The “base case” information is a price of $50 per bottle, a contribution margin of 0.50, a
customer defection rate of 25%, and a repurchase frequency of 3 times a year. If these
improvement funds could be used to either increase the contribution margin to 0.58 or
reduce the customer defection rate to 15% or increase the repurchase frequency to 4
times per year, what is the best way to spend these funds? (Assume all other variables
remain at the base case level for each improvement option.)
You may want to use the table below to help organize your computations and answer.
Note: BLC is 1/0.25 = 4 years and 1/0.15 = 6.67 years.
Answer:
Which one of the following is an example of waste in organizations?
a. High capacity resource utilization
b. Retraining and relearning time and expense
c. Correct factory routing of customer orders and jobs
d. High data integrity
Answer:
A paint company has the following aggregate demand requirements and cost data for
the upcoming year by quarter.
Answer:
Which of the following Ss in the 5S system ensures that each item in a workplace is in
its proper place or identified as unnecessary and removed?
a. Sort
b. Set in order
c. Shine
d. Standardize
Answer:
A company has used Project Evaluation and Review Technique for a project and wants
to minimize the probability of overrunning a contract deadline of 30 weeks. Three paths
of concern in the PERT network have these mean durations and variances in weeks:
Answer:
A _____ layout consists of a functional grouping of equipment or activities that do
similar work.
a. product
b. process
c. cellular
d. fixed-position
Answer:
Which of the following ideas related to lean operating systems is FALSE?
a. The ideal order quantity for single piece flow is one.
b. Accidents are a form of waste in organizations.
c. A push system makes only what you can sell.
d. Overproduction is a form of waste in organizations.
Answer:
All of the following are considered noneconomic factors in location decisions
EXCEPT:
a. the availability of labor.
b. operating costs
c. transportation services.
d. the quality of life.
Answer:
Which of the following Ss of the 5Ss means to keep the process going through training,
communication, and organizational structures?
a. Shine
b. Sort
c. Sustain
d. Standardize
Answer:
A focused factory is least likely to focus on a:
a. few key products.
b. specific technology.
c. certain process design and capability.
d. seasonal demand good.
Answer:
High-customer-contact systems would most commonly be found in:
a. distribution systems.
b. process designs.
c. front office operations.
d. back office operations.
Answer:
The constraint x1 and x2 >= 0 refers to:
a. feasibility.
b. maximization.
c. binding.
d. nonnegativity.
Answer:
Predetermined time standards are _____.
a. macromovements
b. available in books and electronic tables
c. a quick way to directly add up and get standard time
d. best suited for old and stable manufactured goods
Answer:
Time buckets:
a. are the same as planning horizons.
b. can be set at a day for longer-term planning.
c. are usually one week in length.
d. are computed based on gross requirements.
Answer:
A Proctor and Gamble factory process fills boxes with detergent. Construct an
appropriate set of control charts to monitor the process. Historical data for fill weight
(in ounces) of eight samples is presented below. A sample size of eight was used.
Answer:
Rose is in charge of the advertising program for Proctor & Gamble’s new laundry
detergent. She has defined the advertising program as a project with the following
characteristics. The goal is to complete the project on time and within budget, or she
may not have this job next yearthe pressure is on!
Draw the project network in the space below if you want. BLANK SPACES
If activity D is delayed by 2 weeks, the revised earliest project completion time is:
a. 11 weeks.
b. 12 weeks.
c. 13 weeks.
d. 15 weeks.
Answer:
Which of the following statements is NOT true about fixed-position layouts?
a. Work-in-process remains stationary.
b. They require a high level of planning and control.
c. The volume of demand is very high.
d. They are used in the production of heavy machine tools and locomotives.
Answer:
A cement company has three factories that they identify as Alpha, Beta, and Gamma.
They supply cement to three warehouses referred to as X, Y, and Z. The company wants
to determine how much cement should be shipped from each factory to each warehouse
to minimize shipping costs. The cost to ship each 100-pound bag, along with warehouse
requirements and factory capacities in bags are shown in the table below:
a. How many decision variables are there in this problem?
b. What is (are) the constraint(s) corresponding to factory Alpha?
c. How many constraints are required for this problem?
Answer:
Which of the following is NOT a valid approach to gather data for judgmental
forecasting?
a. Questionnaire
b. Telephone contact
c. Personal interview
d. Company records
Answer:
Which of the following is NOT a practical issue when using learning curves?
a. Incentive systems and bonus plans may increase learning.
b. Complex, intellectual learning will be faster than learning simple tasks.
c. A contract phaseout may result in a lengthening of process times.
d. Keeping groups of employees together reaps a productivity benefit.
Answer:
A company produces two end items: Products A and B. They are concerned about the
loading on their Finish Shop and are trying to develop a rough-cut capacity plan. To
finish Product A two hours are required and for Product B one hour. Total hours
available in the Finish Shop are 100. They have the following weekly production
information:
Answer:
Which aggregate planning strategy generally would result in the least amount of
inventory?
a. Level production strategy
b. Chase demand strategy
c. Fixed-order-quantity rule
d. Lot-for-lot (LFL) rule
Answer:
A servicescape includes all of the following principal dimensions EXCEPT _____.
a. ambient condition
b. tolerance design
c. spatial layout and functionality
d. signs, symbols, and artifacts
Answer:
The typical layout of facilities in a pizza restaurant would be an example of a _____
layout.
a. product
b. process
c. cellular
d. fixed-position
Answer:
You are responsible for managing an advertising project with the following activities
(times are given in weeks).
Draw the project network here. BLANK SPACES
What is the critical path for this project?
a. A-D-G
b. A-F-G
c. B-D-G
d. C-E-G
Answer:
A metal shop currently has a work force of 20 people and is considering hiring four
more people for the next three weeks only. The cost of hiring and training one person is
$200, and the cost of terminating one person is $100. Each employee can produce 40
units/week on regular time and four units/week on overtime, and each person must be
paid to produce 40 units even if the demand is not sufficient enough to keep everyone
busy. The cost of producing one unit on regular time is $20, while on overtime it is $30.
The cost of subcontracting one unit is $40. Demand for the next three weeks is 800
units, 1200 units, and 1000 units. Because there is no storage available, the shop has a
policy that no inventory is to be carried over from week to week.
a. What is the total cost for week 1 if there are only 20 workers?
b. What is the total cost for all three weeks using only 20 workers?
c. What is the total cost for week 1 if the company uses 24 workers?
d. What is the total cost for all three weeks using all 24 workers?
Answer:
Objectives of service guarantees include all of the following EXCEPT:
a. building brand image.
b. reducing customer risk.
c. forcing operational improvement.
d. allowing reduced pricing.
Answer:
Which leader in quality management promoted the Quality Trilogy of quality planning,
quality control, and quality improvement?
a. W. Edwards Deming
b. Joseph Juran
c. Philip Crosby
d. Jack Hillerich
Answer:
A supply chain is broader in scope than the value chain, and encompasses all pre- and
post-production activity.
Answer:
High flow times reduce work-in-process (WIP) inventory.
Answer:
Lead time is the time it takes to prepare an order for shipping to a customer.
Answer:
With some modification, the decision rules for one-time decisions without event
probabilities can be applied to situations where the payoff is cost.
Answer:
Explain the stages of the project life cycle and what types of decisions are normally
made at each stage.
Answer:
The smoothing constant, α, used in the basic exponential smoothing model, can range in
value from −1 to +1.
Answer:
Design flexibility is the ability to respond quickly to changes in the volume and type of
demand.
Answer:
Explain the concept of enterprise resource planning (ERP) systems.
Answer:
The Department of Motor Vehicle (DMV) testing center has ten (10) testers who test 75
drivers per day. What would the implied service rate need to be in order to achieve 85%
utilization?
a. Less than 5 drivers per day per tester
b. More than 5 but less than or equal to 10 drivers per day per tester
c. More than 10 but less than or equal to 15 drivers per day per tester
d. More than 15 but less than or equal to 20 drivers per day per tester
Answer:
In practice, managers rely almost exclusively on statistical forecasts.
Answer:
End items in a master production schedule (MPS) or final assembly schedule must be
forecast.
Answer:
Industrial robots automate the skills that most humans can readily perform.
Answer:
Flow time is the average time an entity takes to complete one cycle of a process
Answer:
Both goods and services can be standardized for the mass market or customized to
individual needs.
Answer:
List some of the key issues that organizations face in using technology.
Answer:
The economic order quantity (EOQ) model follows variable lead time.
Answer:
Discuss the concept of servicescape.
Answer: