Periodic inventory systems initiate a new order when the level of inventory falls to the
reorder to point.
A multiple-sampling plan uses the smallest sample size of any sampling plan.
Achieving strategic quality goals for quality and customer satisfaction often requires
teamwork and group participation.
A linear regression model that relates demand to time is known as a linear trend line.
With drum-buffer-rope (DBR), the bottleneck resource is always the buffer.
The degree to which quality characteristics are designed into the product is known as
quality of design.
Linear programming is a mathematical modeling technique based on linear
relationships
Customers are rarely involved in a project that takes an extended period of time to
complete.
The concept of pull production is easy to implement because it is similar to traditional
scheduling procedures.
Supply chain uncertainty and variability may result in incomplete and late orders.
The most recent era in the evolution of operations and supply chain management is
a. Internet Revolution
b. Sustainability
c. Globalization
d. Quality Revolution
A company has accepted a contract to produce a special electric motor. The number of
direct labor hours required to produce the first motor is 250. If an 85% learning curve
applies to the production of motors then the number of labor hours needed to produce
the 4th motor is
a) 212.5 hours.
b) 180.6 hours.
c) 153.5 hours.
d0 37.5 hours
Most of the operations in batch production involve
a. fabrication.
b. assembly.
c. continuous processing.
d. outsourcing.
Which of the following is not a basic element of a waiting line?
a. arrivals
b. servers
c. cost of waiting
d. waiting line structure
The trend in distribution that allows companies to focus on their core competencies is
called
a. collaborative logistics.
b. distribution outsourcing.
c. cross docking.
d. None of these answer choices is correct.
Data mining
a. discovers trends, predicts future events, and assesses possible course of action.
b. searches for exact relationships between variables.
c. identifies groups of data that fall naturally together.
d. None of these answer choices is correct.
Kallie Inc., a, small parts manufacturer, has just engineered a new product for the
automotive industry. In order to produce the part the company can expand existing
facilities, acquire a competitor, or subcontract production. The company believes the
product will either experience high market demand or low market demand, with
probabilities of 0.6 and 0.4, respectively. The following payoff table describes the
company’s decision situation.
The expected value for the expand facilities decision is
a. $250,000.
b. $160,000.
c. $700,000.
d. $1,200,000.
With _________, customers posts contracts for items it want to purchase so that
suppliers can bid on.
a) e-procurement
b) e-marketplaces
c) reverse auctions
d) None of these answer choices is correct.
Capital budgeting techniques, used to evaluate new technology, often examine
a. purchase cost.
b. operating costs.
c. annual savings.
d. All of these answer choices are correct.
The three main categories of goods and services that a company tend to outsource
include all the following except
a) original equipment manufacturer (OEM).
b) maintenance, repair, and operation (MRO).
c) corporate services.
d) everyday equipment (EDE).
What a company does best is often referred as the firm’s core
a) capabilities
b) activities.
c) competencies.
d) competitiveness.
The MRP process of determining requirements for lower level items based on the
master production schedule is referred to as
a. lot sizing.
b. netting.
c. backward scheduling.
d. exploding.
Given the demand and forecast values shown in the table below,
the mean absolute deviation (MAD) through the end of October is
a. 9.20
b. -9.20
c. 1.00
d. 7.00
A firm has the following gross requirements for Item F. If ordering costs are $60 per
order and carrying costs are $0.50 per period.
If the periodic order quantity lot sizing rule is used, then planned order releases in
Period 2 is
a. 40 in period 1.
b. 60 in period 2.
c. 120 in period 3.
d. 140 in Period 2.
A 90% learning curve indicates
a) a 90% increase in processing time per unit as output doubles.
b) a 90% decrease in processing time per unit as output doubles.
c) a 10% increase in processing time per unit as output doubles.
d) a 10% decrease in processing time per unit as output doubles.
The ____________ function helps strategy evolve by creating new ways of delivering a
firm’s competitive priorities.
a. finance
b. marketing
c. operations
d. None of the answer choices is correct.
Companies that compete on ______________ recognize the advantages of time-based
competition.
a. cost
b. speed
c. flexibility
d. quality
When a product is designed to withstand variations in environmental and operating
conditions, it is known as
a) robust design.
b) design for change.
c) design for modification.
d) design for tolerance.
Which of the following statements concerning control chart limits is true?
a. the smaller the value of z, the more narrow the control limits are and the more
sensitive the chart is to changes in the production process
b. the larger the value of z, the more narrow the control limits are and the more
sensitive the chart is to changes in the production process
c. the smaller the value of z, the wider the control limits are and the less sensitive the
chart is to changes in the production process
d. the larger the value of z, the more narrow the control limits are and the less sensitive
the chart is to changes in the production process
With line balancing the maximum amount of time the product is allowed to spend at
each workstation is known as the
a. cycle time.
b. flow time.
c. efficiency of the line.
d. balance delay.
Nations have joined together to form trading groups with no
a. import tax.
b. tariffs.
c. duties.
d. All of these answer choices are correct.
ERP systems consist of a series of __________________ that can be used alone or in
concert.
a. accounting applications
b. application modules
c. personal computers
d. None of these answer choices is correct.
The following information relates to a company’s aggregate production planning
activities:
Beginning Workforce = 50 workers
Production per Employee = 250 units per quarter
Hiring Cost = $1000 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $15 per unit per quarter
If a chase demand strategy is used then the number of workers fired at the start of
quarter 3 is
a. 0
b. 50
c. 60
d. 100
A product’s usage is normally distributed with a weekly average demand of 2,000 units
and a weekly standard deviation of 125. The product’s lead time is 4 weeks. Currently,
the reorder point for this product is 8,200. If the company would like to have a service
level of 95% for this product then
a. it must decrease its safety stock by approximately 412 units.
b. it must decrease its safety stock by approximately 212 units.
c. it must increase its safety stock by approximately 412 units.
d. it must increase its safety stock by approximately 212 units.
Briefly discuss the advantages and disadvantages of a predetermined motion time
system.
Internet transportation exchanges brings together shippers who post __________ and
carriers that post __________ in order to arrange shipments.
e) loads, capacity
f) capacity, loads
g) loads, loads
h) capacity, capacity
Briefly describe the makeup of the project management team.
Briefly describe the principles of scientific management.
Briefly discuss the costs that are associated with achieving good quality.
What is empowerment and why is it important to total quality management (TQM)?
Why is monitoring an important component of job shop scheduling?
Briefly describe the four primary functional areas of a firm. How is operations related
to them?
Make a list of the basic steps involved in using the quantity discount model and discuss
each.
Why are and R-charts used together?