Operations management is the central core function of every company.
Planalytics is a company that helps businesses use weather data to make their business
plans.
Marketing is not highly affected by layout planning.
Benchmarking should only be performed against firms in similar lines of business with
our own.
At the break-even point, total cost equals total revenue.
A cycle is any data pattern that regularly repeats itself and is constant in length.
The greater the level of vertical integration, the higher is the level of outsourcing.
A hospital is an example of process layout.
A Gantt chart can be use to display graphically the scheduled times for activities.
In facility location zoning restrictions, soil conditions, and access roads for trucks are
quality of life issues.
Continuous improvement is called kaizen by the Japanese.
Services organizations cannot use the JIT philosophy to reduce cycle time.
Decisions regarding flow of goods and services through the facility are part of the
production process structure.
In the basic EOQ model, the maximum inventory level equals the economic order
quantity.
The MATCH function in Excel returns the value from the range in the position
specified.
A project is a unique, one-time event that is intended to achieve an objective in a given
time period.
One reason for intermediate spreadsheet calculations is management is often interested
in more detail than the final results.
Changing the demand pattern by offering off-peak discounts represents an effective way
to try to manage long waiting lines.
Which of the following allow you to calculate the average amount of inventory in
transit?
a) ATI ‘“ (365*d)/t
b) ATI ‘“ (t/365)*d
c) ATI = 365*t*d
d) ATI = (tD)/365
e) ATI ‘“ (365*t)/d
Cholesterol Palace is a fast-food restaurant. Management was concerned with errors in
filling orders at its drive-up window. It hired several undercover quality inspectors to
randomly place 100 orders while the process seemed to be in control. The completed
orders were then checked for accuracy. The following table shows the results of the
survey:
(a) Use these data to estimate the average number of defects per order and determine
the three-sigma control limits for a c-chart.
(b) A quality inspector just used the drive-up window and now checks her order. Her
cheeseburger has mustard on it although she ordered it without ketchup or mustard.
Three handfuls of ketchup and mustard packets are in the sack, but no napkins. And hot
coffee has spilled because the lid wasn’t properly sealed. Is the drive-up process in
control?
What is the formula for calculating the ATP quantity at future replenishment periods?
a) MPS shipment customer orders between the current MPS shipment and the next
scheduled replenishment
b) beginning inventory + MPS shipment (the greater of the period’s forecast or the
actual customer orders promised for delivery that period)
c) beginning inventory + MPS shipment forecasted demand
d) beginning inventory + MPS shipment customer orders between the current MPS
shipment and the next scheduled replenishment
e) beginning inventory + MPS shipment customer orders that period
The manufacturing process in JIT starts with the
a) final assembly schedule
b) schedules for individual machines
c) vendor deliveries
d) prioritization of lots
e) forward scheduling
Evaluating an aggregate plan in terms of inventory levels is using what perspective?
a) cost
b) customer service
c) quality
d) operations
e) human resources
What is a control chart that monitors changes in the dispersion or variability of a
process?
a) x-bar chart
b) R-chart
c) p-chart
d) c-chart
e) OC chart
What is a technique for estimating the proportion of time an employee or machine
spends on different work activities?
a) predetermined time data
b) time elements
c) stopwatch time study
d) work sampling
e) simultaneous motion study
Which of the following competitive priorities typically requires the use of more
general-purpose equipment?
a) technology
b) cost
c) quality
d) flexibility
e) time
Consider a project having the following seven activities:
(a) What is the expected project completion time?
(b) What is the critical path?
(c) What is the most economical way and how much will it cost to reduce the
completion time of the project by three weeks? By five weeks?
In waiting line terminology, what is another name for server?
a) clerk
b) channel
c) host
d) concierge
e) provider
If annual demand is 24,000 units, orders are placed every 0.5 months, and the cost to
place an order is $50, what is the annual ordering cost?
a) $50
b) $1,200,000
c) $2,400,000
d) $1,200
e) $600,000
What is the formula for projected available when using ATP MPS records?
a) beginning inventory + MPS shipment forecasted demand
b) MPS shipment from previous week forecasted demand
c) beginning inventory + MPS shipment (the greater of the period’s forecast or the
actual customer orders promised for delivery that period)
d) beginning inventory + MPS shipment (the lesser of the period’s forecast or the
actual customer orders promised for delivery that period)
e) beginning inventory + forecasted demand MPS shipment
In a periodic review inventory system, how many units are ordered?
a) Target inventory level
b) Target inventory level on hand balance
c) Max inventory level min inventory level
d) The EOQ
e) Average demand during review period + average demand during lead time
Which of the following has used the Internet to conduct a fashion show in order to
boost sales?
a) The Gap
b) Eddie Bauer
c) Fruit of the Loom
d) Victoria’s Secret
e) Sears
Supply chain management involves managing:
a) the flow of internal information only.
b) the flow of materials and information from suppliers and buyers to the final
customer.
c) the flow of raw materials to inventory only.
d) managing the stock room supply only.
Production and inventory planners release orders to ________________________.
a) the expediter
b) either an external supplier or to the shop floor
c) the logistics manager
d) either the shop floor or to the warehouse
e) marketing
Consider a periodic review inventory system with a lead time of two weeks and a
review period of seven weeks. If the standard deviation of weekly demand is 200 and
the desired cycle-service level is 86%, what should the safety stock equal?
a) 305
b) 516
c) 600
d) 648
e) 1944
Which type of process would be least likely to produce goods for inventory rather than
for a specific customer request?
a) project
b) batch
c) line
d) continuous
e) remanufacturing
Operational efficiency is:
a) driving the business strategy
b) ensuring the right tasks are performed
c) decreasing the firm’s input requirements
d) increasing the firm’s output
e) performing operations tasks well
What outsourcing functions does UPS provide for clients?
a) accounting and inventories
b) inventories and deliveries
c) accounting and deliveries
d) accounting and maintenance
e) deliveries and maintenance
Subcontracting provides _____ output capacity during periods of ______.
What are the steps involved in solving optimization problems?
Boys `R Us sells suits to young men. Management is considering vertical integration. It
is determined that the company can produce its own suits for a fixed annual cost of
$2,000,000 and a production cost of $100 per suit. The current supplier charges a
$2,500,000 fixed annual cost and $120 per suit. Over what ranges of demand is each
option best?
Name and describe the three ways to add safety time in the critical chain approach.
Describe the difference between black belts and green belts in a six-sigma
implementation.
How has information technology tools helped with supply chain management?