The concept of customizing in a warehouse layout
A) is possible, but causes serious loss of oversight of the quality function
B) cannot be considered seriously in today’s high efficiency factories
C) is theoretically sound, but several years away in practice
D) is a new trend in value-added activities in warehouses
E) none of the above
Porter’s Five Forces Model is used to evaluate competition based on which 5 aspects?
A) research and development, cost, legal regulations, suppliers, customers
B) immediate rivals, potential entrants, customers, suppliers, and substitute products
C) potential entrants, customers, suppliers, legal regulations, and cost
D) immediate rivals, potential entrants, cost, substitute products, and legal regulations
E) none of the above
The first unit took 10 hours and the fourth unit 8.1 hours. What is the improvement
rate?
A) 99%
B) 95%
C) 90%
D) 15%
E) none of the above
Which of the following statements regarding the gross material requirements plan is
true?
A) It shows total demand for an item.
B) It shows when an item must be ordered from a supplier or when production must be
started.
C) It combines a master production schedule with the time-phased schedule.
D) It requires several inputs, including an accurate bill of material.
E) All of the above are true.
Which of the following is not one of the requirements of cellular production?
A) test (poka-yoke) at each station in the cell
B) adequate volume for high equipment utilization
C) a high level of training, flexibility, and empowerment of employees
D) being self-contained, with its own equipment and resources
E) identification of families of products, often through the use of group technology
codes
A technique for estimating the proportion of time a worker spends on various activities
is
A) stopwatch time study
B) simultaneous motion study
C) work sampling
D) standard elemental (historical) times
E) predetermined (published) time standards
Suppose that demand in period 1 was 7 units and the demand in period 2 was 9 units.
Assume that the forecast for period 1 was for 5 units. If the firm uses exponential
smoothing with an alpha value of .20, what should be the forecast for period 3? (Round
answers to two decimal places.)
A) 9.00
B) 3.72
C) 9.48
D) 5.00
E) 6.12
The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. What
is the productivity of the plant?
A) 25 boxes/hr
B) 50 boxes/hr
C) 5000 boxes/hr
D) none of the above
E) not enough data to determine productivity
If the Cpk index exceeds 1
A) the AQL must be smaller than the LTPD
B) must be less than one-third of the absolute value of the difference between each
specification and the process mean
C) the x-bar chart must indicate that the process is in control
D) the process is capable of Six Sigma quality
E) the process is characterized as “not capable”
Wheeled Coach insists all of the following tasks are key to successful MRP use except
A) materials plan must meet both schedule requirements and facility capabilities
B) plan must be executed as designed
C) inventory investment must be minimized
D) excellent record integrity must be maintained
E) stringent quality control
As the average service rate ¼ increases, the shape of the negative exponential
distribution of service times
A) grows steadily steeper without limit
B) has an ever steeper slope that eventually turns positive
C) becomes less gently curved as it moves ever closer to the graph origin
D) takes on a more uniform slope over a wide range of service times
E) changes in appearance from convex to concave
Which of the following represents an opportunity for generating a new product?
A) understanding the customer
B) demographic change, such as decreasing family size
C) changes in professional standards
D) economic change, such as rising household incomes
E) All of the above are such opportunities.
Which of the following is the best example of the proximity rule that, for service firms,
proximity to market is the most important location factor?
A) Soft drinks are bottled in many local plants, where carbonated water is added to
proprietary syrups that may have been shipped long distances.
B) Few people will travel out-of state for a haircut.
C) Patients will travel very long distances to have their hernia surgeries performed at
Shouldice
Hospital.
D) Furniture makers choose to locate near the source of good hardwoods, even though
it means locating near other furniture manufacturers.
E) Metal refiners (smelters) locate near mines to accomplish significant weight
reduction near the metal’s source.
Which of the following has progressed the furthest along its product life cycle?
A) drive-thru restaurants
B) Boeing 787
C) iPods
D) Twitter
E) Xbox 360
Mary is considering purchasing a machine from two suppliers. Supplier A’s machine
has an annual fixed cost of $10,000 and a unit variable cost of $2.10. Supplier B’s
machine has an annual fixed cost of $16,000 and a unit variable cost of $3.00. How
large should Mary’s annual demand be in order to make Supplier B’s machine the better
choice?
The __________ strategy uses exports and licenses to penetrate globally.
How are modules useful in manufacturing processes?
Two manufacturers have very different learning rates; one is under 70% while the other
is over 80%. What factors might lead to such a gap?
__________ is decreasing activity time in a network to reduce time on the critical path
so total completion time is reduced.
A product is currently made in a process-focused shop, where fixed costs are $9,000 per
year and variable cost is $50 per unit. The firm is considering a fundamental shift in
process, to repetitive manufacture. The new process would have fixed costs of $90,000,
and variable costs of $5. What is the crossover point for these processes? For what
range of outputs is each process appropriate?
__________ is a time-series forecasting method that fits a trend line to a series of
historical data points and then projects the line into the future for forecasts.
A sugar mill receives sugar cane from farmers, extracts the juice, boils it into syrup, and
then crystallizes the syrup into raw sugar. There has been an ongoing consolidation of
sugar mills, and an increase in the capacity of those that remain. The number of mills in
Louisiana was 48 in the 1960s, was 18 in 1999 and is currently 13. In 1999 the
break-even point for a typical mill was 600,000 tons. But as the surviving mills have
added capacity, the break-even point is now 1,000,000 tons. In 1999, the state’s farmers
produced 16,000,000 tons of cane, but by 2004, the crop was down to 13,000,000 tons.
Analyze this situation with what you have learned about the capacity decision. Is the
industry better off with fewer but larger mills, or not?
__________ is a dependent demand technique that uses a bill of material, inventory,
expected receipts, and a master production schedule to determine material
requirements.
A manufacturing plant has created the following forecast and would like to apply a
graphical aggregate planning method. Complete the table and calculate the difference
between Jan.’s forecast demand per working day vs a level production model for the
entire period?
