Cross docking is one of the reasons Wal-Mart has such an efficient supply chain.
The theory of constraints (TOC) approach to scheduling concentrates on scheduling the
bottleneck resources.
A chase demand strategy is one of several alternatives available for managing demand.
A computer-to-computer exchange of business documents in a standard format is
known as electronic data interchange (EDI).
With acceptance sampling, a lot is either rejected or accepted depending on the number
of defects found in a sample.
Collaborative product design (CPD) software provides interconnectivity among
members of a product’s supply chain.
A schematic diagram using weighted lines to denote location preference is called a
relationship diagram.
Batch production is also known as a job shop because it creates more jobs than any of
the other process choices.
Operations management is only concerned with the day-to-day operations of a firm’s
productive systems.
Most of the operations in batch production involve assembly rather than fabrication.
If the following jobs are sequenced according to the DDATE rule then the total number
of jobs that would be late is (assume zero for today’s date)
a. 5 jobs.
b. 4 jobs.
c. 3 jobs.
d. 2 jobs.
Combining standardized building blocks in different ways to create unique finished
products is known as
a. rapid prototyping.
b. robust design.
c. modular design.
d. concurrent design.
Consider an espresso stand with a single barista. Customers arrive at the stand at the
rate of 28 per hour according to a Poisson distribution. Service times are exponentially
distributed with a service rate of 35 customers per hour. The probability that there are
more than 2 customers in the system is
a. 0.128
b. 0.488
c. 0.512
d. 0.640
The closer the smoothing constant, α, is to 1.0 the
a. greater the reaction to the most recent demand.
b. greater the dampening, or smoothing, effect.
c. more accurate the forecast.
d. less accurate the forecast.
Information sharing among supply chain members will typically result in all of the
following except
a. faster response times.
b. early problem detection.
c. an increased bullwhip effect.
d. greater trust and confidence among supply chain members.
The impetus for commitment to sustainability generally comes from ____________ in
the supply chain and moves __________ to suppliers.
a. upstream, downstream
b. downstream, upstream
c. midstream, upstream
d. downstream, midstream
The following information relates to a company’s aggregate production planning
activities:
Beginning Workforce = 35 workers
Production per Employee = 1,250 units per quarter
Hiring Cost = $500 per worker
Firing Cost = $1,000 per worker
Inventory Carrying Cost = $20 per unit per quarter
If a chase demand strategy is used then the total firing cost for the plan is
a. $10,000
b. $15,000
c. $20,000
d. $25,000
Directly involving employees in the quality management process is referred to as
a. partnering.
b. a quality circle.
c. Six Sigma.
d. participative problem solving.
Which of the following is not one of the four primary functional areas of a firm?
a. human resources
b. legal
c. marketing
d. operations
Which of the following could be responsible for variability that is special cause
(nonrandom)?
a. Broken machinery.
b. Defective parts and materials.
c. Operator error.
d. All these answer choices are correct.
If the following jobs are sequenced according to the SLACK rule then the mean
tardiness (in days) for all jobs is (assume zero for today’s date)
a. 11.25 days.
b. 9 days.
c. 20 days.
d. 12.5 days.
To maintain the synchronization required for theory of constraints, Goldratt introduced
the concept of
a. drum-buffer-rope.
b. transfer batches.
c. manufacturing execution systems.
d. None of these answer choices is correct.
In general, as the order size increases
a. ordering costs decrease and carrying costs increase.
b. ordering costs increase and carrying costs decrease.
c. both ordering and carrying costs increase.
d. both ordering and carrying costs decrease.
The following information relates to a company’s aggregate production planning
activities:
Beginning Workforce = 50 workers
Production per Employee = 250 units per quarter
Hiring Cost = $1000 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $15 per unit per quarter
If a level production strategy is used then the inventory at the end of quarter 3 is
a. 0
b. 5,000
c. 10,000
d. 17,500
A large positive cumulative error indicates that the forecast is probably
a. higher than the actual demand.
b. lower than the actual demand.
c. unbiased.
d. biased.
Kallie Inc., a small parts manufacturer, has just engineered a new product for the
automotive industry. In order to produce the part the company can expand existing
facilities, acquire a competitor, or subcontract production. The company believes the
product will either experience high market demand or low market demand. The
following payoff table describes the company’s decision situation.
The regret that is associated with the decision to acquire competitor when demand is
low is
a. $0.
b. $525,000.
c. $1,250,000.
d. $1,275,000.
Which of the following statements is true?
a. product layouts are flexible; process layouts are efficient
b. product layouts are efficient; process layouts are flexible
c. product and process layouts are equally flexible; neither are efficient
d. product and process layout are equally efficient; neither are flexible
Common (random) variation of a process depends on all the following except
a. errors due to lack of training.
b. the equipment and machinery used.
c. the operator.
d. system used for measurement.
TicToc produces product A and product B. These products have the following resource
requirements.
The firm has a weekly production budget of $3000 and a maximum of 1000 hours of
labor per week. Each A produced generates $35.00 in profit for the company. Each B
produced generates $25.00 in profit for the company. If the company produces 100
units of A and 200 units of B the amount of slack (in hours) for labor is
a. 0 hours.
b. 14 hours.
c. 66 hours.
d. 80 hours.
A learning curve illustrates that increasing the number of cumulative units produced
________ the labor required per unit.
a) increases
b) eliminates
c) decreases
d) does not impact
Motivation is a willingness to work hard because doing so
a. satisfies employer needs.
b. satisfies employee needs.
c. satisfies both employee and employer needs.
d. None of these answer choices is correct.
Combining the practice of preventive maintenance with the concepts of total quality is
known as
a. total preventive quality.
b. total productive maintenance.
c. quality breakdown maintenance.
d. reliability assurance.
____________________ is a software system that facilitates collaborative design and
development among trading partners.
a. Computer aided design
b. Collaborative product design
c. Computer aided engineering
d. None of these answer choices is correct.
A standard procedure for numerically measuring a project’s progress is referred to as
a. program evaluation and review technique (PERT).
b. critical path method (CPM).
c. Gantt chart.
d. earned value analysis.
_________________is what the firm does better than anyone else.
a. Order qualifiers
b. Core competency
c. Positioning
d. Deploying