The value for “z” used in quality control charts is based on the degree of confidence you
want to have in the resulting UCL and LCL values.
An example of an assemble-to-order firm is Dell Computer.
Calculating the early start and early finish times for each activity in a CPM analysis
does not provide any useful information.
A key tool of a quality function deployment team is the house of quality matrix.
Design of experiments (DOE) refers to work done before production of early model
prototypes of a new product.
A limitation of traditional financial metrics is that they primarily tell a story of past
events.
A rectangle is conventionally used in a process flowchart to represent a task or
operation.
The objective of facility location analysis is to select the site with the lowest total cost.
Which of the following forecasting methods uses executive judgment as its primary
component for forecasting?
A. Historical analogy
B. Time series analysis
C. Panel consensus
D. Market research
E. Linear regression
The triple bottom line considers evaluating the firm against social, economic, and
environmental criteria.
The textbook mentions seven trends in health care. Which of the following is one of
them?
A. Remote surgical treatment
B. Gene therapy
C. Increasing legal costs
D. Increasing cost of healthcare
E. Integrated medical care
Which of the following is most closely related to the reason a firm might implement
MRP?
A. So it can order the right parts
B. So it can order parts sufficient for immediate use
C. So it can ensure that parts to arrive prior to when they are needed
D. To ensure appropriate quality levels
E. To keep process costs between the LCL and the UCL
Which of the following is a partial measure of productivity?
A. Output/Materials
B. Output/ (Labor + Capital + Energy)
C. Output/All resources used
D. Output/Inputs
E. All of these
Which of the following is not a reason to carry inventory?A. To provide a safeguard for
variation in raw material delivery time
B. To take advantage of economic purchase-order size
C. To maintain independence of operations
D. To meet variation in product demand
E. To keep the stock out of the hands of competitors
All firms keep a supply of inventory for the following reasons:
In implementing a lean production system, you should work with suppliers to do which
of the following?
A. Open facilities near your factory.
B. Focus workstation capacities.
C. Backflush.
D. Provide quality at the source.
E. Reduce lead times.
Which of the following is a dynamic lot-sizing technique that adds ordering and
inventory carrying cost for each trial lot size and divides by the number of units in each
lot size, picking the lot size with the lowest unit cost?
A. Economic order quantity
B. Lot-for-lot
C. Least total cost
D. Least unit cost
E. Inventory item averaging
If annual demand is 12,000 units, the ordering cost is $6 per order, and the holding cost
is $2.50 per unit per year, which of the following is the optimal order quantity using the
fixed-order-quantity model?A. 576
B. 240
C. 120.4
D. 60.56
E. 56.03
From Equation 20.3, Q = 240 = Square root of (2 x 12,000 x 6/2.5).
Which of the following is a plant location methodology good for locating a single
facility within a set of existing facilities based in distances and volumes of goods
shipped?
A. Factor-rating systems
B. Centroid method
C. Decision trees
D. Linear programming
E. Regression analysis
You want to determine the control lines for a -chart for quality control purposes. If the
total number of defects from all samples is 2,000, the number of samples is 100, and the
sample size is 50, what would be the standard deviation used in developing the control
lines? ______________________________________
Assume that you are offered a new piece of equipment for $10,000. The equipment will
produce 10,000 units per year with a margin of $6.00 per unit. Demand for the product
being produced has been 2,000 units per year. Your current equipment is fully
depreciated and can produce the 2,000 units per year at but at a margin of only $4.00
per unit. Should you purchase the new equipment? Under what conditions?
If the weeks of supply is 10 and the average aggregate inventory value is $1,000,000,
what is the cost of goods sold? _______________________
What does it mean when a super bill of materials specifies half of a component part in
an assembly? ______________________________________________________
Which trend in health care is nick-named “telemedicine” and uses electronic devices for
measuring blood pressure, heart rate, and blood oxygen levels?
_________________________________________