The economic order quantity (EOQ) lot-sizing technique produces or acquires exactly
the amount of product that is needed each time period with none carried over into future
periods.
Wall Street analysts are not particularly concerned with how efficient companies are
from an operations and supply management view.
The term “queue discipline” involves the art of controlling surly and unruly customers
who have become irritated by waiting.
The aggregate operations planning variable “workforce level” refers to the number of
workers needed to accomplish the planned production.
Learning curves can be applied to individuals and to organizations.
One characteristic of a well-designed service system is that it is cost-effective.
The term “conformance quality” refers to the relative level of performance of a product
as compared to competing products. For instance, certain luxury sedans are said to be of
“higher quality” than some low-priced sub-compact automobiles.
The fixed-order-quantity inventory model requires more time to maintain because every
addition or withdrawal is logged.
The deeper one looks into the product creation sequence, the more the requirements of
dependent demand items tend to become “lumpy.”
The master production schedule is a crucial input into the aggregate operations plan.
An operational goal of total quality management is ensuring that the organization’s
systems can consistently produce the product or service as it is designed.
According to the theory of constraints, which of the following is a kind of time that
makes up the cycle time in production?
A. Quality time
B. Break time
C. Research time
D. Just-in-time
E. Idle time
Which of the following is an organizationally driven reason for outsourcing?
A. Improve effectiveness by focusing on what the firm does best.
B. Turn fixed costs into variable costs.
C. Reduce costs through lowered cost structure and increased flexibility.
D. Improve risk management.
E. Improve credibility and image by associating with superior providers.
If annual demand is 35,000 units, the ordering cost is $50 per order, and the holding
cost is $0.65 per unit per year, which of the following is the optimal order quantity
using the fixed-order-quantity model?A. 5,060
B. 2,320
C. 2,133
D. 2,004
E. 1,866
From Equation 20.3, Q = 2,320.5 = Square root of (2 x 35,000 x 50/0.65).
Flowcharts are used in both manufacturing and service consulting to track which of the
following?
A. Materials
B. Information
C. People
D. All of these
E. None of these
Which of the following approaches to service design is characterized by having the
customer take a greater role in the production of the service?
A. Production-line approach
B. Personal-attention approach
C. Quality approach
D. Do-it-yourself approach
E. Self-service approach
Some of the advantages of a functional project where the project is housed in a
functional division include which of the following?
A. The project manager has full authority over the project.
B. Team pride, motivation, and commitment are high.
C. A team member can work on several projects.
D. Needs of the client are secondary.
E. None of these
In the service-system design matrix, a face-to-face loose specs service encounter is
expected to have which of the following?
A. Low sales opportunity
B. Low production efficiency
C. High production efficiency
D. Low degree of customer/server contact
E. None of these
In the simple exponential smoothing forecasting model, you need at least 30
observations to set the smoothing constant alpha.
The main purpose of aggregate operations planning is to specify the optimal
combination of which of the following?
A. Workforce levels and inventory on hand
B. Inventory on hand and financing costs for that inventory
C. The strategic plan and the products available for sale
D. The workforce level and the degree of automation
E. Operational costs and the cash flow to support operations
The primary purpose of the Malcolm Baldrige National Quality Award is which of the
following?
A. To encourage the spread of statistical quality control
B. To improve human resource development and management in manufacturing
C. To help companies review and structure their quality programs
D. To prove that American firms were competitive in quality
E. To emphasize the use of quantitative methods in process management
Which of the following is the symbol used in the textbook for the cost of placing an
order in the fixed-order-quantity inventory model?A. C
B. TC
C. H
D. Q
E. S
S = Setup cost or cost of placing an order.
The most basic categories of cash flow for a typical new product do not include:
A. Depreciation
B. Ramp-up cost
C. Development cost
D. Sales revenue
E. Marketing cost
Name the four types of supply chain in Hau Lee’s uncertainty framework for classifying
supply chains.
(1) ________________________
(2) ________________________
(3) ________________________
(4) ________________________
The acronym RFP stands for: ________________________
The step in the six-step process for green sourcing where a set of metrics against which
the supplier will be measured for the contract’s duration is developed is called:
_____________________.
Using the fixed-time-period inventory model, and given an average daily demand of
300 units, 4 days between inventory reviews, 5 days for lead time, 1,200 units of
inventory on hand, a z of 1.96, and a standard deviation of demand over the review and
lead time of 12 units, what quantity should be ordered? ________________________.
What are four current issues in operations and supply management that are discussed in
the textbook?
1. ___________________
2. ___________________
3. ___________________
4. ___________________
If the fraction defective is 0.4 based on a sample size of 100, what is the standard
deviation used in constructing the -chart? _____________________________________
What are the psychological benefits that the customer may sense only vaguely called?
___________________________________
Describe how CPM handles the trade-offs between time and cost in the scheduling of a
project.
What is the rate at which money is generated by the system through sales called?
_________________________________________.