An optimal maintenance policy strikes a balance between the costs of breakdown and
preventive maintenance so that the total cost of maintenance is at a minimum.
The optimal solution to a linear programming problem is within the feasible region.
Manufacturing organizations have ten strategic OM decisions, while service
organizations have only eight.
A push system means providing the next station with exactly what is needed when it is
needed.
Expected output is sometimes referred to as rated capacity.
True
Most forecasting techniques assume that there is some underlying stability in the
system.
Simulation is usually capable of producing a more appropriate answer to a complex
problem than can be obtained from a mathematical model.
“Visual workplace” is a term coined by Hawthorne, and refers to the need for proper
lighting at employee workstations.
In services, the scheduling emphasis is usually on staffing levels, not materials.
To attract and retain global talent, and to expand a product’s life cycle, are both reasons
to globalize.
Finite capacity scheduling, unlike MRP, recognizes the capacity limitations of
departments and machines when building schedules.
Heuristics are problem-solving procedures that mathematically optimize the solution.
The greater the margin by which the arrival rate exceeds the service rate, the better the
performance of the waiting line.
Reasons to study Operations Management include
A) studying how people organize themselves for productive enterprise
B) knowing how goods and services are consumed
C) understanding what human resource managers do
D) learning about a costly part of the enterprise
E) A and D
Drop shipment
A) is equivalent to cross-docking
B) is the opposite of a blanket order
C) means the supplier will ship directly to the end consumer, rather than to the seller
D) is the same thing as keiretsu
E) is a good reason to find a new firm to ship your products
Acceptance sampling’s primary purpose is to
A) estimate process quality
B) identify processes that are out of control
C) detect and eliminate defectives
D) decide if a lot meets predetermined standards
E) determine whether defective items found in sampling should be replaced
Which of the following attempts to manipulate product or service demand?
A) inventories
B) part-time workers
C) subcontracting
D) overtime/idle time
E) price cuts
Acceptance sampling
A) is the application of statistical techniques to the control of processes
B) was developed by Walter Shewhart of Bell Laboratories
C) is used to determine whether to accept or reject a lot of material based on the
evaluation of a sample
D) separates the natural and assignable causes of variation
E) all of the above
The first unit of a product took 50 hours to build, and the learning curve is 80%. How
long will it take to make the third unit? (Use at least three decimals in the exponent if
you use the logarithmic approach.)
A) under 30 hours
B) about 32 hours
C) about 35 hours
D) about 50 hours
E) about 75 hours
NAFTA seeks to phase out all trade and tariff barriers between the United States and
Asia.
Companies pursuing a learning curve strategy must increase
A) employee training
B) costs
C) quality
D) volume
E) all of the above
What is the EMV for Option 2 in the following decision table?
A) 50
B) 100
C) 170
D) 200
E) 350
Which of the following statements regarding lot-sizing is true?
A) EOQ principles should be followed whenever economical.
B) Too much concern with lot-sizing results in false accuracy.
C) Lot-for-lot cannot be modified for scrap allowance or process constraints.
D) The Wagner-Whitin algorithm simplifies lot size calculations.
E) All of the above are true.
Which of the following best describes mutual commitment in an organization?
A) an instance in which management is committed to the employees and the employees
are committed to management
B) both management and the employees are committed to the same objective
C) both management and the employees are committed, but to different objectives
D) management obtains the commitment of the employees to a stated objective
E) both management and the employees can rely on each other
In a minimization problem, a positive improvement index in a cell indicates that
A) the solution is optimal
B) the total cost will increase if units are reallocated to that cell
C) there is degeneracy
D) the total cost will decrease if units are reallocated to that cell
E) the problem has no feasible solution
Weekly sales of copy paper at Cubicle Suppliers are in the table below. Compute a
three-period moving average and a four-period moving average for weeks 5, 6, and 7.
Compute MAD for each forecast. Which model is more accurate? Forecast week 8 with
the more accurate method.
Why are services typically more difficult to standardize, automate, and make efficient?
Arnold Palmer Hospital uses __________ to seek new ways to reduce readmission
rates.
Respect for __________ is a cornerstone of continuous improvement.
Define core competencies.
Kirstin is thinking about opening a Chinese restaurant and needs to buy a rice cooker.
Machine A has fixed costs of $100 and variable costs of $1/pound. Machine B has fixed
costs of $500 and variable costs of $.1/pound. If Kirstin plans to sell 100 pounds of rice
which machine should she choose? What is the cross-over point?
A drawing that shows the dimensions, tolerances, materials, and finishes of a
component is a(n) __________.
What is disaggregation?
The __________ strategy sets production equal to forecasted demand.