Firms may discover that, rather than adapting ERP to the way they do business, they
have to adapt the way they do business to accommodate the ERP software.
The key to effective supply-chain management is to get many suppliers to compete with
each other, in order to drive down prices.
The expected value with perfect information assumes that all states of nature are
equally likely.
A product strategy may focus on differentiation, low cost, or rapid response.
A multinational corporation has extensive international business involvements.
Some firms have developed arrangements to literally ‘swap” employees with each other
during their respective peak demand times.
In linear programming, statements such as “the blend must consist of at least 10% of
ingredient A, at least 30% of ingredient B, and no more than 50% of ingredient C” can
be made into valid constraints even though the percentages do not add up to 100
percent.
If 100 units of Q are needed and 10 are already in stock, then the gross requirement is
100 and the net requirement is 90.
The study of waiting lines calculates the cost of providing good service but does not
value the cost of customers’ waiting time.
A focused work center is well suited to the production of a large family of products
requiring similar processing, even if their demands are not very stable.
The two most basic policies associated with employment stability are
A) job enrichment and job enlargement
B) employment for life and guaranteed minimum wage
C) follow demand exactly and hold employment constant
D) incentive plans and piece-rate plans
E) none of the above
A simple CPM network has three activities, A, B, and C. A is an immediate predecessor
of B and of C. B is an immediate predecessor of C. The activity durations are A=4,
B=3, C=8.
A) The critical path is A-B-C, duration 15.
B) The critical path is A-C, duration 12.
C) The critical path is A-B-C, duration 13.5
D) The critical path cannot be determined without knowing PERT expected activity
times.
E) The network has no critical path.
Which one of the following does not exemplify JIT used for competitive advantage?
A) Acme Foods decides to decrease the number of its suppliers to just a few.
B) Ajax, Inc. is proud to announce that incoming goods are delivered directly to the
point of use.
C) Ardoyne Builders has a scheduled preventive maintenance program.
D) Cheramie Trucking trains workers to specialize and become very efficient in one
job.
E) Cajun Contractors has reduced the amount of space for inventory.
What describes a system that stores and displays information that can be linked to a
geographic location?
A) AIS
B) LOC
C) GLOC
D) LIS
E) GIS
Payoffs, alternatives, and expected monetary values are terms associated with
A) virtual reality
B) Product Lifecycle Management
C) Quality Function Deployment
D) decision trees
E) make-or-buy analysis
Evaluating location alternatives by comparing their composite (weighted-average)
scores involves
A) factor-rating analysis
B) cost-volume analysis
C) transportation model analysis
D) linear regression analysis
E) crossover analysis
A manager is comparing the total maintenance (preventive plus breakdown) cost curves
for two scenarios. The graphs have maintenance commitment on the x-axis and costs on
the y-axis. Scenario A includes the direct breakdown maintenance costs, while Scenario
B includes the €full€ (direct and indirect) breakdown maintenance costs. Which of the
following should the manager notice when going from Scenario A to Scenario B?
A) total cost is decreased
B) optimal point is moved to the left
C) optimal point is moved to the right
D) preventative maintenance cost slope is increased
E) none of the above
Given an actual demand of 103, a previous forecast value of 99, and an alpha of .4, the
exponential smoothing forecast for the next period would be
A) 94.6
B) 97.4
C) 100.6
D) 101.6
E) 103.0
Which of the following is not one of the four principles of bottleneck management?
A) Release work orders to the system at the bottleneck’s capacity pace.
B) Lost time at the bottleneck is lost system capacity.
C) Increasing capacity at non-bottleneck stations is a mirage.
D) Increased bottleneck capacity is increased system capacity.
E) Bottlenecks should be moved to the end of the system process.
Which of the following statements regarding incentive systems is false?
A) Bonuses are often used at the executive levels.
B) About half of all American manufacturing firms use productivity incentives.
C) Profit-sharing systems provide some part of the profit for distribution to employees.
D) The Scanlon plan is based on team productivity.
E) Increasing use of cross-training has led to increasing use of knowledge-based pay
systems.
Which one of the following scenarios represents the use of a kanban to reduce
inventories?
A) A supervisor tells the operators to stay busy and start producing parts for next
month.
B) A ‘supplier” work center signals the downstream workstation that a batch has been
completed.
C) A supervisor signals to several work centers that the production rate should be
changed.
D) A “customer” work center signals to the ‘supplier” workstation that more parts are
needed.
E) An operator asks the next station’s operator to help him fix his machine.
Which of the following is specifically characterized by continuous and forced problem
solving through a focus on throughput and reduced inventory?
A) Just-in-time (JIT)
B) Toyota Production System (TPS)
C) Lean operations
D) Material requirements planning (MRP)
E) kanban
Consider the following bill of material. Fifty units of Product A are needed. Assuming
no on-hand inventory, and no scheduled receipts, explode the bill of material.
Identify five main advantages of outsourcing.
Describe in words how to calculate a project’s standard deviation. What assumption
allows that calculation to be accurate?
For the transportation problem below, construct an initial feasible solution using the
intuitive method.
Describe how EMV might be used to analyze a capacity decision.
A(n) __________ queuing system has one line and one server.
Describe how ISO 9000 has evolved in the past several years.