The demand on a hospital’s emergency medical services is considered an uncontrollable
arrival pattern of the calling population.
The -chart is only useful for sampling that deals with continuous variables.
The least total cost method (LTC) lot-sizing technique calculates the order quantity by
comparing the carrying cost and the setup (or ordering) costs for various lot sizes and
then selects the lot in which these are most nearly equal.
The second step in managing a project is writing the statement of work.
A make-to-order firm will work with the customer to design the product and then make
it from purchased materials, parts, and components.
One of the advantages of a functional project organizational structure is that a team
member can work on several projects.
Safety stock can be computed when using the fixed-order-quantity inventory model by
multiplying a z value representing the number of standard deviations to achieve a
service level or probability by the standard deviation of periodic demand.
Using the cut-and-try method for aggregate operations planning, we can determine the
production requirement in units of product. If the beginning inventory is 100 units, the
demand forecast is 1,200, and the necessary safety stock is 20 percent of the demand
forecast, which of the following is the production requirement?
A. 1,200
B. 1,300
C. 1,340
D. 1,500
E. 1,540
A company can produce a small lot of products the first time at a cost of $3,000. If their
65 percent learning curve allows them to reduce their costs on each lot, what is the cost
of producing the 12th lot?
A. $14,340
B. $3,000
C. $2,896
D. $640.50
E. $213.50
Which of the following is not a benefit of running large batches in a manufacturing
setting?
A. Create larger inventories.
B. Minimize equipment downtime.
C. Increase equipment and labor utilization.
D. Improve quality performance.
Within ERP, which set of applications is the largest and most complicated?
A. Finance
B. Manufacturing and logistics
C. Sales and marketing
D. Human resources
The ability to rapidly and inexpensively switch production from one product to another
enables what are sometimes referred to as:
A. Economies of scale
B. Economies of size
C. Economies of shape
D. Economies of scope
E. Economies of shipping
Which of the following is an assumption of the basic fixed-order-quantity inventory
model?A. Lead times are averaged.
B. Ordering costs are variable.
C. Price per unit of product is constant.
D. Back-orders are allowed.
E. Stock-out costs are high.
These assumptions are unrealistic, but they represent a starting point and allow us to use
a simple example:
Assume there are five jobs (i.e., A, B, C, D, and E) that need to be sequenced in a
production schedule. The remaining operating time necessary for completion of job A is
3 days (i.e., job A will take 3 more days to complete), B will take 9 days, C will take 6
days, D will take 5 days and E will take 8 days. In what order will these jobs be
scheduled if using the SOT priority rule for job sequencing?
A. A-B-D-E-C
B. A-D-C-E-B
C. D-C-A-B-E
D. B-E-C-D-A
E. E-D-A-B-C
For an activity in a CPM analysis, the early start time is 8 and the late start time is 10.
Which of the following statements is true?
A. The late finish is 12.
B. The early finish is 10.
C. The slack for this activity is 2.
D. The duration of this activity is 2.
E. The activity is on the critical path.
If annual demand is 50,000 units, the ordering cost is $25 per order, and the holding
cost is $5 per unit per year, which of the following is the optimal order quantity using
the fixed-order-quantity model?A. 909
B. 707
C. 634
D. 500
E. 141
From Equation 20.3, Q = 707.1 = Square root of (2 x 50,000 x 25/5).
A company has calculated its running sum of forecast errors to be 500, and its mean
absolute deviation is exactly 35. Which of the following is the company’s tracking
signal?
A. Cannot be calculated based on this information
B. About 14.3
C. More than 35
D. Exactly 35
E. About 0.07
When a company seeks to match the benefits of a successful position while maintaining
its existing position in offering customers a variety of differing services, what is this
process called?
A. Operations capability analysis
B. Straddling
C. Order qualifying
D. Order winning
E. Inter-functional analysis
What is the application of the scientific method to evaluate alternative treatment
methods and create guidelines for similar clinical situations called?
________________________________
What are expenditures related to achieving product or service quality, including the
costs of appraisal and prevention of defects, called?
______________________________________
Describe what rapid prototyping is and where it is particularly useful in the
development process.
Name five of the six transportation modes discussed in the textbook.
(1) ____________________
(2) ____________________
(3) ____________________
(4) ____________________
(5) ____________________
If demand for product A were forecast at 1,000,000 units for the coming year and your
factory has one machine capable of producing 4,500 units per week, how many similar
machines might you plan to acquire? ___________________
The use of the Internet as an essential element of business activity is called what?
______________________________
What is the name of a physical inventory-taking technique that focuses only on certain
items and counts more often than once or twice a year?
______________________________________.
If the average aggregate inventory value is $4,000 and the cost of goods sold is
$104,000, what is the weeks of supply? _______________________
Distinguish between strategic and tactical forecasts.