A central premise of exponential smoothing is that more recent data are less indicative
of the future than data from the distant past.
There are no differences in strategic and tactical forecasting. A forecast is a
mathematical projection, and its ultimate purpose should make no difference to the
analyst.
Dependent demand inventory levels are usually managed by calculations using
calculus-driven, cost-minimizing models.
In CPM, the late start time estimate is the latest time you can start an activity and still
keep the entire project on schedule.
The lot-for-lot (L4L) lot-sizing technique minimizes carrying cost by taking into
account setup costs and capacity limitations.
You would like to use the fixed-time-period inventory model to compute the desired
order quantity for a company. You know that vendor lead time is 5 days and the number
of days between reviews is 7. Which of the following is the standard deviation of
demand over the review and lead time if the standard deviation of daily demand is 8?A.
About 27.7
B. About 32.8
C. About 35.8
D. About 39.9
E. About 45.0
Using Equation 20.12, the standard deviation of demand over the 12 days of time
between reviews and lead time is the square root of (12 x 64) = 27.71.
A company’s production process has an 80 percent learning curve rate. The process has
produced 1,000 units to date. A process refinement is estimated to allow a future
learning curve rate for the identical product of 75 percent. However, the initial unit
made using the new process will take the same amount of time as the initial unit
produced using the old process. At what point, using the new process, will the
production rate exceed the production rate achieved by the old process?
A. Before the 50th unit
B. Before the 80th unit
C. Before the 100th unit
D. Before the 120th unit
E. Before the 250th unit
Which is not one of the main functions of SAP?
A. Supply chain planning
B. Supply chain execution
C. Supply chain collaboration
D. Supply chain redesign
In essence, a queuing system includes several major components. Which of the
following is not one of them?
A. Source population
B. Servicing system
C. How the customer exits the system
D. The queue discipline
E. None of these
The dimension of design quality that concerns the consistency of performance over
time or the probability of failing is which of the following?
A. Response
B. Serviceability
C. Reliability
D. Reputation
E. Perceived quality
The flow of work through a hospital is sometimes referred to as:
A. An unending procession of sickness and trauma
B. The care chain
C. Hurry up and wait
D. Pre-cash flow
E. Moving sicker and quicker
Flowcharts are used in both manufacturing and service consulting to track which of the
following?
A. Historical milestones
B. Information
C. Income trends
D. Ideas
E. Cash flow
Which of the following is not a standard measure of schedule performance that can be
used to evaluate priority rules?
A. The schedule quality index
B. Minimizing the time a job spends in the process
C. Minimizing work-in-process inventory
D. Minimizing idle time of machines or workers
E. Meeting due dates of customers
Some of the suggestions for a good layout for face-to-face services include which of the
following?
A. Workstations close together
B. Lack of clutter
C. Orderly handling and storage of materials
D. No unnecessary rehandling of materials
E. None of these
One of the objectives of facility location analysis is to select a site with the lowest total
cost. Which of the following costs should not be included in the analysis?
A. Outbound distribution costs
B. Incidental costs
C. Energy costs
D. Hidden costs
E. Taxes
A simple project listing of five activities, their predecessors, and their respective time
estimates are presented here:
Using the CPM, which activities have slack in this project?
A. A
B. B
C. C
D. D
E. C and E
A company hires you to develop a linear regression forecasting model. Based on the
company’s historical sales information, you determine the intercept value of the model
to be 1,200. You also find the slope value is minus 50. If, after developing the model,
you are given a value of X = 10, which of the following is the resulting forecast value
using this model?
A. -1,800
B. 700
C. 1,230
D. 1,150
E. 12,000
The probability associated with rejecting a high-quality lot is denoted in acceptance
sampling with the Greek letter alpha.
We would expect to see which of the following in an MRP system’s inventory status
file?
A. End items produced
B. Late/early delivery records
C. Scrap parts
D. Labor efficiency
E. Computer errors
From an operational perspective, yield management is most effective under which of
the following circumstances?
A. Demand cannot be segmented by customer.
B. Inventory is perishable.
C. Fixed costs are low, and variable costs are high.
D. The customer is a “captive” of the system.
E. The firm doing yield management is very profitable.
From an operational perspective, yield management is most effective when
Popular project management software used in mid-sized projects is
A. Microsoft Word.
B. Microsoft Primavera.
C. Microsoft Project.
D. Microsoft Excel.
E. None of these
You want to determine the control lines for a -chart for quality control purposes. If the
total number of defects from all samples is 2,500, the number of samples is 100, and the
sample size is 50, which of the following would be the standard deviation used in
developing the control lines?
A. 0.4900
B. 0.2499
C. 0.1556
D. 0.0707
E. 0.02499
Which of the following is the percentage of observations you would expect to see lying
within a plus or minus 2 MAD range?
A. 57.04 percent
B. 89.04 percent
C. 98.33 percent
D. 99.86 percent
E. 100.00 percent
What do the initials EVM stand for? _______________________________________
The ratio of the average time to move a unit through a productive system divided by the
value-added time is called the ___________________.
Assume a fixed cost for a process of $100,000. The variable cost to produce each unit
of product is $10, and the selling price for the finished product is $50. Ignoring
inventory, how many units must the firm sell to break even? ______________________
You have run a capacity resource profile on your shop. Products have been routed
sequentially through resources A, B, C, and D. The capacity resource profile tells you
that resource A is scheduled at 95 percent of capacity, resource B at 80 percent of
capacity, resource C at 130 percent of capacity, and resource D at 100 percent of
capacity. Assuming that the data we used to calculate the capacity resource profile are
accurate, what would we expect to find when we go out to the shop?
________________________________________________________.
What are “project milestones?” _________________________________________