1) Kanban is the Japanese term for autonomation.
2) Reorder point models are primarily used for dependent-demand items.
3) As an abstraction of reality, a model is a simplified version of a real phenomenon.
4) The gross requirements value for any given component is equal to the net
requirements of that component’s immediate parent multiplied by the quantity per
parent.
5) An example of a regional factor in location planning is the location of our markets
(either existing or potential).
6) The small lot-sizing policy works well in a situation where both holding costs and
setup costs are high.
7) Quality and highly capable production systems are requirements for the successful
implementation of lean operations.
8) Product failures can be easier to remedy with modular design.
9) Maximum capacity refers to the upper limit of:
A.inventories.
B.demand.
C.supplies.
D.rate of output.
E.finances.
10) The materials manager for a billiard ball maker must periodically place orders for
resin, one of the raw materials used in producing billiard balls. She knows that
manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per
day to carry a kilogram of resin in inventory. She also knows that the order costs for
resin are $100 per order, and that the lead time for delivery is four days. If the order size
was 1,000 kilograms of resin, what would be the daily total inventory costs,
EXCLUDING the cost of the resin?
A.$5
B.$10
C.$20
D.$25
E.$40
11) Utilization is defined as the ratio of:
A.actual output to effective capacity.
B.actual output to design capacity.
C.design capacity to effective capacity.
D.effective capacity to actual output.
E.design capacity to actual output.
12) The Skulls, a student social organization, has two different locations under
consideration for constructing a new chapter house. The Skulls’ president, a POM
student, estimates that due to differing land costs, utility rates, etc., both fixed and
variable costs would be different for each of the proposed sites, as follows:
What would be total annual costs for either location at the point of indifference?
A.$13,000
B.$13,350
C.$9,000
D.$17,000
E.$19,200
Similar to that in manufacturing, the service scheduling hierarchy begins with
__________ and ends with _________.
A.aggregate planning; detailed daily scheduling13) B.aggregate planning; master
scheduling
C.master scheduling; detailed material planning
D.aggregate planning; detailed material planning
E.quarterly planning; monthly planning
14) An organization’s mission statement serves as the basis for:
A.environmental scanning.
B.core competencies.
C.operating procedures.
D.distinctiveness.
E.organizational goals.
15) The president of State University wants to forecast student enrollments for this
academic year based on the following historical data:
What is the forecast for this year using trend-adjusted (double) smoothing with alpha = .
05 and beta = .3, if the forecast for last year was 21,000, the forecast for two years ago
was 19,000, and the trend estimate for last year’s forecast was 1,500?
A.18,750
B.19,500
C.21,000
D.22,650
E.22,800
16) Which of the following is the primary consideration with regard to preventive
maintenance?
A.what technology to use
B.how varied the maintenance will be
C.how often the maintenance will occur
D.which products it will be provided to
E.who will do it
17) An operations strategy reflecting the lean philosophy of production should
recognize that lean:
A.is most suited for nonrepetitive manufacturing.
B.cannot be implemented sequentially.
C.requires a wholesale commitment from the outset.
D.may provide a competitive advantage.
E.all of the choices.
18) The external elements of SWOT analysis are:
A.strengths and weaknesses.
B.strengths and threats.
C.opportunities and threats.
D.weaknesses and opportunities.
E.strengths and opportunities.
19) A local bagel shop produces two products: bagels (B) and croissants (C). Each bagel
requires 6 ounces of flour, 1 gram of yeast, and 2 tablespoons of sugar. A croissant
requires 3 ounces of flour, 1 gram of yeast, and 4 tablespoons of sugar. The company
has 6,600 ounces of flour, 1,400 grams of yeast, and 4,800 tablespoons of sugar
available for today’s production run. Bagel profits are 20 cents each, and croissant
profits are 30 cents each.
Which of the following is not a feasible production combination?
A.0 B and 0 C
B.0 B and 1,100 C
C.800 B and 600 C
D.1,100 B and 0 C
E.0 B and 1,400 C