While spreadsheets can be somewhat useful for a variety of simulation problems, they
can be confusing and are vulnerable to several drawbacks, including weak routines for
random-number selection.
One goal of having a core competency is to do something better than anyone else.
Services often take the form of repeated encounters involving face-to-face interactions.
All managers should understand the basic principles that guide the design of
transformation processes.
The critical path in a CPM analysis is found by locating the activities times with zero
slack.
Which of the following is not an American Hospital Association hospital classification?
A. Psychiatric
B. Specialty
C. Orthopedic
D. Rehabilitation
E. General/Emergency
If you were selecting from a variety of forecasting models based on MAD, which of the
following MAD values from the same data would reflect the most accurate model?
A. 0.2
B. 0.8
C. 1.0
D. 10.0
E. 100.0
The 50th repetition of a job is timed at 100 minutes. If the learning curve for this job is
90 percent, what is the estimated time for the 100th repetition of this job?
A. 49.66 minutes
B. 81 minutes
C. 90 minutes
D. 100 minutes
E. 110 minutes
If it takes a supplier 25 days to deliver an order once it has been placed and the standard
deviation of daily demand is 20, which of the following is the standard deviation of
usage during lead time?A. 50
B. 100
C. 400
D. 1,000
E. 1,600
Using Equation 20.8, the standard deviation of usage during lead time will be the
square root of [25 x (20 x 20)] = square root of 10,000 = 100.
Which of the following is not an important concept in TOC?
A. CCR
B. Rope
C. Drum
D. Buffer
E. File
One of the objectives of facility location analysis is to select a site with the lowest total
cost. Which of the following are hidden costs that should be included in the analysis?
A. Becoming less responsive to the customer
B. Supplier costs
C. Taxes
D. Construction costs
E. Product life cycle costs
Quality control charts usually have a central line and upper and lower control limit
lines. Which of the following is not a reason that the process being monitored with the
chart should be investigated?
A. A large number of plots are close to the upper or lower control lines.
B. The behavior of the plots is erratic.
C. A single plot falls above or below the control limits.
D. Thee is a change in raw materials or operators.
E. There is a run of five above the central line.
The purpose of value analysis/value engineering (VA/VE) is to:
A. Simplify products and processes
B. Improve the value that customers find in existing products
C. Relate the customer’s needs to technical specifications
D. Meet budgets and improve the results of financial models
E. Facilitate better cooperation between business functions
Which of the following is not an element of a good service guarantee?
A. Unconditional (no small print)
B. The customer controls the process
C. Easy to understand
D. Easy to communicate
E. Meaningful to the customer
Assuming no safety stock, what is the reorder point (R) given an average daily demand
of 50 units, a lead time of 10 days, and 625 units on hand?A. 550
B. 500
C. 715
D. 450
E. 475
See Equation 20.4; 50 x 10 = 500.
A small vendor has either a good day of sales with an average of $1,000 or a bad day
with an average of only $500 for the day. To simulate these outcomes, random numbers
from 00 to 99 should be assigned with the intervals determined from the frequency
distribution. If, during the last 100 days, the vendor had 27 good days and 73 bad days,
which of the following is a correct random-number interval for a bad day?
A. 28 to 99
B. 27 to 73
C. 27 to 100
D. 27 to 99
E. 00 to 26
MRP systems seek to achieve which of the following?
A. Minimize lot sizes.
B. Determine the number of dependent demand items needed.
C. Relieve capacity bottlenecks.
D. Provide a yardstick for future improvements.
E. Improve on JIT methods.
An estimate of the cost of an item that includes all the costs related to the procurement
and use of an item, including any related costs in disposing of the item after it is no
longer useful, is called what? _____________________.
In Hau Lee’s uncertainty framework to classify supply chains, a supply chain that
combines the strengths of a “risk-hedging” and a “responsive” supply chain is called
what? ______________________________________
A work center has five jobs assigned to it. They are labeled, in the order of their arrival
in the shop, as jobs A, B, C, D, and E. The work center may work on only one job at a
time and must complete any job it starts before starting another job. Job A has a
processing time of 6 days and is due to the customer in 9 days. Job B has a processing
time of 2 days and is due in 16 days. Job C has a processing time of 4 days and is due in
10 days. Job D has a processing time of 3 days and is due in 7 days. Job E has a
processing time of 5 days and is due in 12 days. Using the first-come, first-served
priority rule, in what order should these jobs be undertaken?
___________________________________.
Describe the role of service guarantees from the marketing and the operations
perspective.
Discuss some of the benefits of using an ERP system.
What is the name for a bill of materials that includes items with fractional options?
__________________________
You want to develop a three-sigma R-chart. You know the average range is 5 based on
several samples of size 10. Which of the following is the resulting UCL?
_______________________________________
The formula (Flow time = Inventory/Throughput rate) is known as _____________.
The term CTQ is used in which portion of the DMAIC methodology?
______________________________