The projected available quantity row in an MPS record keeps track of how many units
are available at the beginning of each time period.
Outsourcing instead of pursuing vertical integration is often a good strategic option for
a firm using an intermittent operation.
Successfully implementing JIT requires that it be done as quickly as possible.
As long as the firm always meets the order qualifier classification it will be always be
competitive and win competitive bid opportunities
The optimal solution to an optimization problem is the feasible solution with the largest
(for a ‘min’ problem) objective function value.
When an LP is solved, there is only one possible outcome.
Gain Sharing emphasized profit levels so employees can share the benefits of increased
profits.
A cause-and-effect diagram is also referred to as a Taguchi diagram.
The MSE is always greater than or equal to the MAD.
Given a sample size of 2, the lower limit for the R-chart is 0.
Any inventory turnover less than 4 is considered to be poor performance.
Accounting uses the aggregate plan for all the following except:
a) projecting cash flows
b) making short term loans
c) calculating the capital needed to support operations
d) projecting earnings
e) benchmarking operation effectiveness
Who is best known for the development of cause-and-effect diagrams?
a) Walter Shewhart
b) W. Edwards Deming
c) Joseph Juran
d) Kaoru Ishikawa
e) Genichi Taguchi
For which of the following would a control chart for attributes not be appropriate?
a) Number of nonfunctioning light bulbs
b) Proportion of broken eggs in a carton
c) Number of rotten apples
d) Number of complaints issued
e) Length of metal rods
An example of an operation that does not add value is
____________________________.
a) removing iron ore from the ground and shipping it to a steel mill
b) filling the underground gasoline tanks at a service station
c) making a wedding cake
d) moving components to a warehouse for storage until the factory needs them
e) moving luggage from a cab to the airport ticket counter
For the basic EOQ model, how many units should be ordered each time that an order is
placed?
a)
b) (D/Q)S + (Q/2)H
c) (Q/D)S + (Q/2)H
d) DQ/S + 2Q/H
e)
Which of the following is an assumption of the basic EOQ model?
a) Lead time is unknown.
b) Demand may be seasonal.
c) Orders arrive at once (in one lot).
d) Quantity discounts are considered.
e) Lost sales are allowed, but not back orders.
Proper training of employees in the understanding of quality tools includes all of the
following except
a) How to correct problems
b) How to assess quality
c) How to develop new quality tools
d) How to use quality control tools
e) How to interpret findings
Which type of movement is most like rectilinear?
a) driving cross-country on an interstate highway
b) flying an airplane
c) climbing a mountain
d) driving in New York City
e) riding a roller coaster
Which of the following is not characteristic of output’‘based compensation systems?
a) can be used to compensate individuals
b) can be used to compensate groups
c) can include a base salary
d) often include an upper limit on how much an individual can be compensated each
day
e) need to be linked to quality as well as quantity to be successful
A mathematical model in which one is trying to maximize or minimize some quantity
while satisfying a set of constraints is a(n):
a) objective model
b) constrained model
c) constrained optimization problem
d) decision model
e) excel model
What is the mean absolute deviation of the following forecasts?
a) 3174
b) 164
c) 41
d) 136
e) -34
What are the two key components of the operations strategy of Federal Express?
a) they own their own fleet of tractor trailers, and they use a sophisticated bar code
technology
b) they own their own fleet of tractor trailers, and they have a large warehouse in every
state
c) they own their own fleet of airplanes, and they have a large warehouse in every state
d) they use a sophisticated bar code technology, and they have a large warehouse in
every state
e) they own their own fleet of airplanes, and they use a sophisticated bar code
technology
If the EOQ is ordered, which of the following is true?
a) Annual ordering cost exceeds annual holding cost.
b) Annual holding cost exceeds annual ordering cost.
c) Annual ordering cost is equal to annual holding cost.
d) The sum of annual ordering cost plus annual holding cost is maximized.
e) The annual holding cost curve is decreasing.
Different lot size rules determine the quantity of the order and __________________.
a) the quality
b) change the frequency of replenishment orders
c) how projected available is calculated
d) the lead time
e) the backorder cost
Which of the following is not primarily performed by the operation management
function?
a) job design and work measurement
b) advertising strategy
c) location analysis
d) quality management
e) facility layout
Mary’s Flower Boutique needs to ship finished goods from its manufacturing facility to
its distribution warehouse. Annual demand for the Flower Boutique is 2000 flowers.
Flower Boutique can ship the flowers via regular parcel service (3 days transit time),
premium parcel service (1 day transit time), or via public carrier (5 days transit time).
What is the average annual transportation inventory for each alternative?
a) 19.7, 6.6, 32.9
b) 20, 7, 50
c) 1, 15, 30
d) 25, 46, 99
e) 20, 6.6, 47.0
A _________________ is a specific set of conditions that could occur in the real
situation.
a) parameter
b) scenario
c) sensitivity set
d) break-even set
e) circumstance
In Excel, Goal Seek is found under which menu option?
a) Insert
b) Edit
c) File
d) Tools
e) Data
Suppose that you are using the naïve forecasting method with trend to forecast sales.
Sales have been increasing by 10% per week. Two weeks ago, sales amounted to $100.
What should your forecast be for this week?
a) $100
b) $ 10
c) $110
d) $121
e) $120
What information system enables companies to have the right material in the right
amounts available at the right time?
a) manufacturing resources planning
b) multifunctional requirements planning
c) material requirements planning
d) material relationships planning
e) manufacturing requirements planning
What is a control chart that monitors changes in the mean value of a process?
a) x-bar chart
b) R-chart
c) p-chart
d) c-chart
e) OC chart
When a company’s product is nontangible (a service), which of the following is no
longer a viable option?
a) hiring permanent employees
b) subcontracting
c) inventory
d) working overtime
e) increasing normal capacity
The master production schedule is reviewed:
a) annually
b) semi-annually
c) quarterly
d) monthly
e) weekly
Under what conditions are action notices generated?
Give an example of a type of facility for which quality-of-life issues would be of
primary importance.
A firm produces shirts using three workers. On Wednesday, Madeline completed 110
shirts in 6 hours, Federico completed 90 shirts in 7 hours, and Susan completed 130
shirts in 9 hours. What was the overall productivity of the firm?
Why does it make sense that there are many cheese factories that are staying in
Wisconsin, while many clothing manufacturers have been shutting down domestic
plants and locating outside of the US?
During week one, on average, the aircraft cleaning staff was able to totally clean an
airplane in 45 minutes using 3 cleaners. During week two the average time to clean an
aircraft went to 40 minutes with one of the cleaning staff off sick. Week two
productivity changed in which direction and by how much?
Describe the relation of capacity requirement and the supply chain.
Name an operational consideration that a firm must take into consideration when
designing a new product
Philip Crosby believed that ________________________ because the cost of doing it
right the first time is less than the cost of correcting mistakes later
Discuss why implementation of a JIT will not start and end in definite time periods.