Activity-system maps show how a company’s strategy is delivered through a set of
tailored activities.
Aggregate sales and operations planning occur in a company about every 3 to 18
months.
A process that is in Six-Sigma control will produce no more than two defects out of
every million units.
Quality of life in a host community is not a major factor in making the facility location
decision.
Inventory turn values that are considered good differ by industry and the type of
products being handled.
If demand for an item is normally distributed, we plan for demand to be twice the
average demand and carry 2 standard deviations worth of safety stock inventory.
JIT manufacturing forces a firm to work with a lower water level despite safety hazards.
Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we would expect which
of the following?
A. A consistent lag of supply behind demand
B. Minimized carrying costs
C. Minimized setup costs
D. A just-in-time management philosophy
E. Minimized quality problems
In most cases, demand for products or services can be broken into several components.
Which of the following is considered a component of demand?
A. Cyclical elements
B. Future demand
C. Past demand
D. Inconsistent demand
E.Level demand
Which of the following is an analytical tool used in Six-Sigma quality improvement
programs?
A. Leadership
B. Pareto charts
C. Management by fact
D. Continuous improvement
E. Kaizen
Which of the following is not one of the major functions of shop-floor control?
A. Measure efficiency, utilization, and productivity of manpower and machines.
B. Assign a priority to each shop order.
C. Load machine hours into workstations.
D. Track WIP quantity by location by shop order to accounting.
E. Convey shop order status information to the office.
Which of the following terms describes the time a unit spends actually being worked on
together with the time spent waiting in a queue?
A. Cycle time
B. Flow time
C. Run time
D. Setup time
E. Efficiency
If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per
order is $50, which of the following is the EOQ lot size?
A. 350
B. 247
C. 23
D. 185
E. 78
A process flowchart uses which of the following symbols to represent storage areas or
queues in a flow diagram?
A. Rectangle
B. Arrow
C. Inverted triangle
D. Diamond
E. A dashed line
Which of the following statements holds true for kanban production control systems?
A. The authority to produce or supply additional parts comes from upstream operations.
B. In a paperless control system, containers can be used instead of cards.
C. The cards or containers make up the kanban push system.
D. They require substantial quantitative analysis prior to implementation.
E. They have not been successful outside of Japan and the United States.
Which of the following industry types have high expected benefits from the application
of MRP?
A. Fabricate-to-order
B. Hospitals
C. Assemble-to-order
D. Aircraft manufacturers
E. Oil refineries
According to the theory of constraints, which of the following is a financial
measurement that can be used to measure the firm’s ability to make money?
A. Net profit
B. Throughput
C. Inventory
D. Sales
E. Retained earnings
Concept development assumes a proven technology in which variant of the generic
product development process?
A. Technology-push products
B. Quick-build products
C. Complex systems
D. Platform products
E. Process-intensive products
If the average aggregate inventory value is $100,000 and the cost of goods sold is
$450,000, which of the following is inventory turnover?
A. 19.23
B. 4.5
C. 0.8654
D. 0.2222
E. None of these
Which of the following is a principle of work center scheduling?
A. Once started, a job can and should be finished even if unavoidably interrupted.
B. Reschedule every day.
C. Achieve certainty in standards and routings.
D. Give work centers less to do then their maximum.
E. Assign the first worker to all of the days that require staffing.
A company’s production process has an 85 percent learning curve rate. The process has
produced 1,000 units to date. A process refinement is estimated to allow a future
learning curve rate for the identical product of 75 percent. However, the initial unit
made using the new process will take the same amount of time as the very first unit
produced using the old process. At what point, using the new process, will the
production rate exceed the production rate achieved by the old process?
A. By the 50th unit
B. By the 80th unit
C. By the 100th unit
D. By the 120th unit
E. By the 250th unit
In an overview of the major operations planning activities in a typical service
organization, which of the following activities follows aggregate sales and operations
planning?
A. Process planning
B. Workforce scheduling
C. Master scheduling
D. Materials requirements planning
E. Order scheduling
When developing an operations and supply chain strategy, which of the following is an
important product-specific criterion to consider?
A. Technical liaison
B. Learning curve
C. Competitor’s product performance
D. Production lot size
E. Total quality management
A hospital staff provides what three main services?
(1) _________________________
(2) _________________________
(3) _________________________
If the fraction defective is 0.12 based on a sample size of 16, what is the standard
deviation to be used when constructing a -chart?
___________________________________
Getting a flu shot from the one campus nurse who is on duty might involve standing in
which type of queuing line structure? _____________________________________
Processes that are used to transform resources into products are called
_______________.
A company has had actual unit demand for four consecutive years of 100, 110, 125, and
150. The respective forecasts using exponential smoothing were 120 for each of those
four years. What value of alpha, the smoothing constant, was the firm using?
____________________________________
What is the difference between the concepts of design quality and conformance quality?
You have just determined the actual number of workstations that will be used on an
assembly line to be 25 using the assembly-line balancing procedure. The cycle time of
the line is 30 seconds, and the sum of all that tasks required on the line is 10 minutes.
What is the line’s efficiency? ________________________________
The time-phased plan specifying how many and when the firm plans to build each end
item is called what? ___________________________________________