Suppose that you are using the three-period simple moving average method to forecast
sales, and sales have been increasing by 10% every period. Then your forecasts will be
lower than the actual sales.
A common practice of scenario analysis is to examine the base case, best case, and
worst case scenarios.
Nontangible capacity can be added by the use of an on-call labor pool.
Problem-solving teams are small groups of employees who meet to identify, analyze,
and solve operational problems.
The benefits of including a particular factor in a model must be weighed against the
decreased complexity of the model resulting from its inclusion.
Supply chain intelligence enables strategic decision-making along the supply chain.
For any period the beginning inventory, plus any replenishment order due, less the gross
requirement equals planned orders.
Quality at the source involves inspecting goods after they are produced.
When order quantities are higher, average transportation inventory is higher.
The manufacturing process in JIT starts with the final assembly schedule.
A process chart is a
a) graph that shows how the population was evaluated
b) graph of the population failures
c) graph that shows whether a sample of data falls within assignable causes
d) graph that show whether a sample falls within the common or normal range
e) table showing final inspection results
A location analysis has been narrowed down to two locations, A and B. The main
factors in the decision will be supply of raw materials, which has a weight of 50, and
labor cost, which has a weight of 50. The ratings for raw materials and labor are: for A,
3 and 4, respectively; for B, 5 and 3, respectively. Using the factor rating method, the
manager should ______________________.
a) be indifferent between these locations
b) choose location A
c) choose location B
d) reject both locations
e) determine the capacity before deciding
Who is the ‘grandfather of quality control?’
a) Walter Shewhart
b) W. Edwards Deming
c) Joseph Juran
d) Phillip Crosby
e) Genichi Taguchi
CRP systems are used to check that the amount of work:
a) meets the MRP directive.
b) meets the ERP directive.
c) will make a profit.
d) is feasible.
e) meets OSHA requirements.
If the solution to an optimization problem violates two constraints but satisfies three, it
is a(an) ________.
a) suboptimal solution
b) infeasible solution
c) inoptimal solution
d) unbounded solution
e) simplex solution
Suppose that you are interested in trend-adjusted exponential smoothing. Which of the
following values of the trend smoothing constant, , would most likely be seen in
practice?
a) 0.10
b) 0.50
c) 0.75
d) 0.90
e) 1.00
Company A has a great idea for a product. What is the first step for Company A?
a) do a break-even analysis
b) determine characteristics and features of the product
c) determine the process selection
d) determine characteristics and features of the product and determine the process
selection
e) benchmark other similar company’s products
A machine shop produces metal brackets on two different machines. Machine 1 can
produce a bracket every 10 minutes. Machine 2 can produce a bracket every 4 minutes.
What is the average productivity per machine?
a) 4.3 brackets/hour
b) 8.6 brackets/hour
c) 10.5 brackets/hour
d) 21.0 brackets/hour
e) 7.0 brackets/hour
Supply chain management is the vital business function which does not coordinate and
manage:
a) linking suppliers
b) transporters
c) human resource interviews
d) internal departments
e) third-party companies
Which is the primary inventory function that is activated after coupons are distributed
to customers?
a) anticipation inventory
b) fluctuation inventory
c) lot-size inventory
d) MRO inventory
e) speculative inventory
Which of the following is not considered to be a benefit of EDI?
a) Increased human interaction
b) Reduced paperwork
c) Improved data accuracy
d) Improved tracking capability
e) Reduced clerical costs
Which of the following is not a good approach for suppliers who are providing JIT
services to manufacturers?
a) Use the ‘push system’ for deliveries
b) Locate near their customers
c) Have small warehouses near the manufacturing plant
d) Use standardized containers
e) Join together with other suppliers to help each other make small deliveries
Pre-fabricated furniture with choices of fabric colors is an example of which product
and service strategy?
a) assemble-to-deliver
b) make-to-stock
c) assemble-to-order
d) make-to-order
e) make-to-package
In making a forward pass through a network, activities L, M, and P are immediate
predecessors for activity T, which has an activity time of 7. The early start times for
activities L, M, and P are 22, 17, and 27, respectively. The early finish times for
activities L, M, and P are 29, 27, and 33, respectively. What is the early finish time for
activity T?
a) 17
b) 24
c) 27
d) 33
e) 40
One of the two most important features of time-based competition involves
___________________.
a) advertising on the Internet
b) stopwatch time studies
c) setting time standards for task performance
d) instantaneous access to inventory information
e) developing new products and services faster than the competition
Which of the following is more like a product layout as compared to a process layout?
a) Resources used are general purpose.
b) Facilities are more capital intensive.
c) Processing rates are slower.
d) Space requirements for inventory storage are higher.
e) Scheduling resources is more challenging.
Each day a firm produces 50 products worth $40 each. Raw materials cost per unit are
$12. The firm uses 4 workers on an eight-hour shift earning $10 per hour each. What is
the multifactor productivity ratio?
a) 1.82
b) 0.77
c) 3.16
d) 0.12
e) 2.17
A company with a pure intermittent processing system is most likely to use which
layout type?
a) inverted
b) hybrid
c) process
d) fixed position
e) product
____________________ is a collaborative process between two trading partners that
establishes formal guidelines for joint forecasting and planning.
a) Collaborative Planning Forecasting and Replenishment (CPFR)
b) Supply Chain Planning Forecasting and Replenishment (SCPFR)
c) Supply Chain Optimization (SCO)
d) Collaborative Creation of Guidelines (CCG)
e) Joint Planning and Forecasting (JPP)
Technical Feasibility of a job is the degree to which an individual or group of
individuals is:
a) able to understand the instructions.
b) physically and mentally able to do the job.
c) able to control the process.
d) physically and mentally able to provide suggestions.
e) able to meet the organization’s mission.
In the Excel MATCH function, which argument is the value that we want to test?
a) Lookup_array
b) Array
c) Value
d) Match_type
e) Lookup_value
What is the portion of the MPS called that lies between the demand time fence and the
planning time fence?
a) gaseous
b) frozen
c) slushy
d) mucky
e) liquid
In the Excel Solver ‘Add Constraint’ box, what two additional choices are available
under the relationship operator list besides ≤, ≥, and =?
a) gin and bin
b) int and gin
c) big and int
d) inf and bin
e) int and bin
The current time period is referred to as __________________.
a) time zero
b) the point of departure
c) the start time
d) the action bucket
e) this year
List some system changes one can make to try to improve waiting line performance.
Cover Me, Inc. sells umbrellas in three cities. Management assumes that annual rainfall
is the primary determinant of umbrella sales, and it wants to generate a linear regression
equation to estimate potential sales in other cities. Given the data below, what is the
regression equation?
What is a process flowchart?
Consider a workstation that can process 400 units per hour. It takes 3 hours to receive
an order from the previous station. The container size is 50 units. The factory sets safety
stock at 10 percent of demand during lead time. How many kanbans are needed for the
workstation?
What are the steps involved in doing a time study?
List some typical operations management decisions that are made, along with their
associated operations management term.
Joel’s fresh flower processing plant processes 2000 flowers in a lot. For quality control
they use a sample size of 10 flowers. Joel has established a probability of accepting a
given lot as 99.74% with a proportion of defective items, in a lot, of .05. What is the
AOQ?
Matt Dillon works for a production facility that makes ball point pens. His job is to
place the spring on the central ink insert. He is expected to process 200 inserts per hour.
The factory uses a Kanban production system with containers that hold 50 inserts. It
takes 30 minutes for Frank to receive the inserts from the previous work station. How
many Kanbans are needed?
What are the disadvantages for hiring permanent employees?
Name a company that hurt its business success by changing its Operations Type.