Suppose that Sally’s company uses exponential smoothing to make forecasts. Further
suppose that last period’s demand forecast was for 20,000 units and last period’s actual
demand was 21,000 units. Sally’s company uses a smoothing constant (α) equal to
40%. What should be the forecast for this period?
a) 20,000
b) 21,000
c) 20,600
d) 20,400
e) 19,600
One TQM mistake companies make is believing that the responsibility for quality and
elimination of waste lies
a) with the supplier
b) with the return and repair shop
c) with the supply chain
d) with all employees but top management
e) with top management alone.
Consider a single-line, single-server waiting line system. Suppose that there is only
physical space for 2 units in the system (one in line and one being served). The arrival
rate λ is 80 people per hour. The manager, Johnny Three Toes, has the choice among
workers of different speeds to be the server. He wants to save money by hiring the
slowest server that will result in an average number of units in the system (L) equal to
2.
a) Using Johnny Three Toes’ strategy, what will the server’s service rate per hour ()
need to be?
b) What is the probability of having 3 or more units in the system?
c) What is wrong with Johnny Three Toes’ strategy?
Which of the following scheduling rules is a global priority rule?
a) first come, first served
b) last come, first served
c) earliest due date
d) shortest processing time
e) slack per remaining operations
Which of the following inventory functions does not involve end products sold to
customers?
a) anticipation inventory
b) fluctuation inventory
c) lot-size inventory
d) MRO inventory
e) speculative inventory
Input measures of capacity work better when a company produces
_____________________.
a) discrete items
b) a single product
c) liquids
d) many different products
e) off-the-shelf items
Which phase in the project life cycle involves evaluating expected costs, benefits, and
risks?
a) conception
b) feasibility analysis or study
c) planning
d) execution
e) termination
Which of the following is not one of the four basic categories of ERP modules?
a) finance and accounting
b) information systems
c) sales and marketing
d) production and materials management
e) human resources
Which of the following scheduling techniques tends to break down over the long term?
a) input/output control
b) infinite loading
c) forward scheduling
d) backward scheduling
e) finite loading
What are the two primary tools used to identify closeness measures during the layout
design process?
a) REL chart and from-to matrix
b) MRP chart and from-to matrix
c) x-bar chart and from-to matrix
d) MRP chart and x-bar chart
e) x-bar chart and REL chart
Output-based incentive systems are based on the assumption that some workers
_____________.
a) mentally calculate their pay by keeping track of their output
b) are motivated by money and produce more when pay is linked to performance
c) like to work in a competitive environment
d) like to work overtime
e) work harder than others
Building a bridge over the Mississippi River for a new highway uses a
a) project process
b) batch process
c) line process
d) continuous process
e) recycle process
It the goal is to reduce the amount of inventory in the system, the number of Kanban
cards should
a) Be decreased
b) Be increased
c) Remain the same
d) Be calculated by formula
e) Remain the same, but container size should be increased
Which of the following is not true with respect to strategic and tactical decisions?
a) tactical decisions focus on more specific day-to-day decisions
b) tactical decisions determine the direction for strategic decisions
c) tactical decisions provide feedback to strategic decisions
d) tactical decisions are made more frequently and routinely
e) tactical decisions must be aligned with strategic decisions
What is the formula for calculating the maximum inventory level?
a) Imax = H(1-d/p)
b) Imax = Q(1-d/p)
c) Imin = Q(1-s/p)
d) Imax = Q(1-d/s)
e) Imin = Q(1-d/h)
Product design decisions are:
a) purely tactical decisions.
b) mixed tactical and strategic decisions.
c) strategic in nature.
d) only made by the OM department.
e) rarely made.
Which of the following is not a feature of flow operations?
a) a process layout
b) fixed routings
c) special-purpose equipment and tooling
d) high volume production
e) high levels of labor and equipment utilization
Which type of operation is used to produce many different products with varying
process requirements in lower volumes?
a) intermittent
b) repetitive
c) continuous
d) downstream
e) gateway
A firm uses five plants to produce its products. Output value and total input cost for last
week are provided below.
Which plant was least productive last week?
a) plant 1
b) plant 2
c) plant 3
d) plant 4
e) plant 5
Which of the following specifically relates to Service Organization dimensions of
quality?
a) conformance to specifications
b) atmosphere
c) durability
d) features
e) serviceability
What must a company do to become ISO 9000 certified?
Consider a single-line, single-server waiting line system. Suppose that customers arrive
according to a Poisson distribution at an average rate of 60 per hour, and the average
(exponentially distributed) service time is 45 seconds per customer. What is the average
utilization of the system?
The university replication facility provides copier repair service for the university and
for local businesses. Over the last year the mean arrival rate is 55 copiers a month. The
repair facility uses two identical repair technicians who can repair an average of 30
copiers each month. The university is considering changing out the copiers and expects
that the average arrival time will drop to 25 copiers per month. This will allow them to
reassign one of the technicians to other tasks. Assume the change has occurred and the
system is set up as a single channel; first come first serve, single server system.
•What is the utilization of the service center?
•What is the average number of copiers waiting in the system?
•What is the average number of copiers in the waiting line?
•What is the average time a copier is waiting to be repaired
•What is the average time the copier is in the waiting line?
•What is the probability that 6 copiers will be in the system at a given time?
•
In proactive option demand-based aggregate planning, marketing tries to _____ the
_____ pattern.
Desire Inc. produces a variety of pediatric nutritional products. Management wants to
evaluate the performance of Work Center 17, the bottleneck in the packaging line.
Managers are particularly worried about the backlogging problem in the work center.
The following input/output report is given.
The initial backlog was 50 hours. Based on the above information, calculate the backlog
hours of Work Center 17 for periods 1, 2, and 3, respectively.
Provide some examples of ‘greening’ requirements that an organization may impose on
their supply chain members.
Optimized production technology (OPT) was introduced by whom in the late 1970s,
and what does it do?
Service providers’ ‘back room’ activities, like ________________________, often have
manufacturing characteristics like ________________________.