From an operations standpoint, one of the goals of the firm under the theory of
constraints is to increase throughput while simultaneously reducing inventory and
reducing operating expense.
Process selection refers to the strategic decision of selecting which kind of production
processes to use to produce a product or provide a service.
The equation for exponential smoothing states that the new forecast is equal to the old
forecast plus the error of the old forecast.
OSCM is a functional field of business with clear line management responsibilities.
The average cost of inventory in the United States is 20 to 25 percent of its value.
A way to find a bottleneck is to use one’s knowledge of a particular plant, look at the
system in operation, and talk with supervisors and workers.
Investors pay close attention to efficiency and productivity measures like net income
per employee because they are interested in how well the firm manages its workforce
relations.
Which of the following is not a queue discipline discussed in the textbook?
A. First come, first served
B. Last in, first out
C. Limited needs
D. Shortest processing time
E. Best customer first
Which of the following is not a data analysis and solution development tool from the
operations consulting tool kit?
A. Computer simulation
B. Statistics
C. Plant tours/audits
D. Problem analysis (SPC tools)
E. Bottleneck analysis
Which of the following is a dynamic lot-sizing technique that 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?
A. Economic order quantity
B. Lot-for-lot
C. Least total cost
D. Least unit cost
E. ABC analysis
Which of the following is an input to the master production schedule (MPS)?
A. Inventory records file
B. The aggregate plan
C. The bill of materials
D. The exception report
E. Planned order schedules
Which of the following is considered a high-contact service operation?
A. On-line brokerage house
B. Internet sales for a department store
C. Physician practice
D. Telephone life insurance sales and service
E. Automobile repair
What is the name of Microsoft’s version of ERP?
A. Dynamics
B. Manugistics
C. Oracle
D. i2
Which of the following is the planned-order release using an MRP program if the gross
requirement is 5,000, inventory on hand is 1,200, and planned receipts are 800?
A. 7,000
B. 4,200
C. 3,000
D. 2,000
E. 1,200
Which of the following is a dynamic lot-sizing technique that calculates the order
quantity by comparing the carrying cost and the setup (or ordering) costs for various lot
sizes and then selects the lot size in which these are most nearly equal?
A. Kanban
B. Just-in-time system
C. MRP
D. Least unit cost
E. Least total cost
For which of the following should we use a -chart to monitor process quality?
A. Defective electrical switches
B. Errors in the length of a pencil
C. Weight errors in cans of soup
D. Temperature of entrees in a restaurant
E. Letter grades on a final examination
Which of the following are basic assumptions that justify an analysis of the costs of
quality?
A. Failures are caused.
B. Prevention is more expensive.
C. Performance can be learned.
D. Rules of thumb don’t always work.
E. Appraisal costs are less than prevention costs.
Which of the following is not a way in which a work center can be organized?
A. According to function in a work center configuration
B. According to function in an assembly line
C. By product in assembly line
D. As a group technology cell (GT cell)
E. By product in a flow operation
Some of the suggestions for a good layout for manufacturing and back-office operations
include which of the following?
A. Backtracking kept to a minimum
B. Plenty of interstage materials storage to avoid starving downstream workstations
C. Workstations separated so operators don’t spend time socializing
D. Adequate waiting facilities
E. None of these
Imagine comparing a manufacturing operation using regular lot-sizing and the same
operation with a kanban/lean production approach. What would be your expectations of
the difference between the total cost (i.e., inventory holding costs + setup/ordering
costs) of each?
A. Inventory holding cost will increase nonlinearly with inventory.
B. Total costs will be lower for the regular lot-size operation.
C. Total costs will be lower for the kanban/lean production operation.
D. The order quantity will be larger for the kanban/lean production approach.
E. As long as the total quantity is the same, total costs will be the same.
Which of the following is an approach to dealing with a bottleneck?
A. Keep a buffer inventory in front of it to ensure that it always has something to work
on.
B. Use Johnson’s sequencing rules on bottleneck operations.
C. Don’t worry about the bottleneck; it will take care of itself.
D. Move things to a faster bottleneck.
E. Pay an incentive bonus to workers on the bottleneck operation.
The 10th repetition of job is timed at 100 minutes. If the learning curve for this job is 80
percent, what is the estimated time for the 100th repetition of this job?
A. 47.66 minutes
B. 62.50 minutes
C. 80 minutes
D. 92.50 minutes
E. 100 minutes
Machine breakdown and repair in a 12-machine factory having three repair mechanics
would develop which type of queuing system line structure concerning machine
breakdowns?
A. Single channel, single phase
B. Single channel, multiphase
C. Multichannel, single phase
D. Multichannel, multiphase
E. None of these
If a vendor has correctly used marginal analysis to select its stock levels for the day (as
in the newsperson problem in the text), and if the profit resulting from the last unit
being sold (Cu) is $0.90 and the loss resulting from that unit if it is not sold (Co) is
$0.50, which of the following is the probability of the last unit being sold?A. Greater
than 0.357
B. Greater than 0.400
C. Greater than 0.556
D. Greater than 0.678
E. None of these
From Equation 20.1, P ≤ Cu/(Cu + Co) = 0.90/1.40 = 0.643. Because P is the
probability that the unit will not be sold and 1 – P is the probability of it being sold, the
answer to this question is 1 – 0.643 or 0.357.
In development of an operations and supply chain strategy, which of the following may
be an important product-specific criteria to consider?
A. Focus
B. Production lot size
C. Supplier after-sale support
D. Learning curve
E. Total quality management
What is Johnson’s rule?
Explain the difference between producer’s risk and consumer’s risk in acceptance
sampling.
_______________ indicates where cash comes from (its source), where cash is spent
(its use), and the net change in cash for the year.
What is the designation of the approach to service design characterized by having the
customer take a greater role in the production of the service?
_______________________________________
When analyzing time series data, if demand data contains both seasonal and trend
effects at the same time, what are the two ways that they can relate to each other
discussed in the text?
(1) ___________________________
(2) ___________________________