What term has been created to describe the return of business activity to the purchasing
firm?
A) renewal
B) backsourcing
C) reversal
D) reversesourcing
E) insourcing
A Type I error occurs when
A) a good lot is rejected
B) a bad lot is accepted
C) the number of defectives is very large
D) the population is worse than the AQL
E) none of the above
When developing the Trident Splash, Cadbury faced design problems overcome by
A) manufacturability and value engineering
B) QFD
C) the House of Quality
D) CAD
E) decision trees
Giving quantity discounts based on annual volume instead of single order size helps to
control which supply-chain issue?
A) control risk
B) environmental risk
C) the bullwhip effect
D) unethical supplier behavior
E) vendor-managed inventory
JIT makes quality cheaper because
A) the cost of low quality can be hidden as inventory cost
B) JIT adds more buffers to the system
C) JIT prevents long runs of defects
D) B and C
E) A, B and C
Which of the following is specifically characterized by the elimination of waste through
a focus on exactly what the customer wants?
A) Just-in-time (JIT)
B) Toyota Production System (TPS)
C) Lean operations
D) Material requirements planning (MRP)
E) kanban
Dependence on an external source of supply is found in which of the following
aggregate planning strategies?
A) varying production rates through overtime or idle time
B) subcontracting
C) using part-time workers
D) back ordering during high demand periods
E) hiring and laying off
Caterpillar and Texas Instruments are two firms that have benefited from the use of
A) the multidomestic strategy option.
B) the multinational corporation strategy.
C) the transnational strategy option.
D) the maquiladora system in Europe.
E) the global strategy option.
Orders are processed in the sequence in which they arrive if (the) __________ rule
sequences the jobs.
A) earliest due date
B) slack time remaining
C) first come, first served
D) critical ratio
E) Johnson’s
A work center had actual input of 280 hours and actual output of 270 hours. What is the
change in backlog?
A) 10
B) -10
C) 0
D) 1.037
E) unable to determine with given information
Which of the following techniques uses variables such as price and promotional
expenditures, which are related to product demand, to predict demand?
A) associative models
B) exponential smoothing
C) weighted moving average
D) simple moving average
E) time series
If it took 1000 hours to produce the first unit of a product, and the learning curve is
70%, how long will it take to produce units 26 through 50?
A) 12,307 hours
B) 8,404 hours
C) 134 hours
D) 3,903 hours
E) none of the above
The critical path for the network activities shown below is __________ with duration
__________.
A) A-C; 12
B) A-D-E; 19
C) B-E; 13
D) A-B-C-D-E; 29
E) none of the above
Which of the following is the number-one reason driving outsourcing for many firms?
A) cost savings
B) gaining outside expertise
C) improving operations and service
D) focusing on core competencies
E) gaining outside technology
In the logarithmic approach to learning curve calculations, you have used the
formulaTN = T1. (N). Your manager shows you a problem for which b is specified as
-.18442. What learning rate does that value represent?
When suppliers are encouraged to locate near manufacturing plants, the goal of the JIT
partnership is to reduce __________ inventory.
__________ cost is the cost that continues even if no units are produced.
What do we mean by closed-loop MRP?
The fastest growing mode of shipping is __________.
What is the difference between a feasible solution and an optimal solution?
__________ is the Japanese word for card that has come to mean ‘signal.”