The deeper one looks into the product creation sequence, the more the requirements of
dependent demand items tend to become more “lumpy.”
Answer:
The standard fixed-time period model assumes that inventory is never counted but
determined by EOQ measures.
Answer:
An inventory system is a set of policies and controls that monitors levels of inventory
and determines what levels should be maintained, when stock should be replenished,
and how large orders should be.
Answer:
Governmental barriers to enter and locate in many countries are increasing through
restrictive protectionist legislation.
Answer:
RSFE in forecasting stands for “reliable safety function error.”
Answer:
Quality of life in a host community is not a major factor in making the facility location
decision.
Answer:
You should visualize inventory as stacks of money sitting on forklifts, on shelves, and
in trucks and planes while in transit.
Answer:
You are managing a project and need to cut the cost of the project. You decide to
transfer workers to another job to cut the project’s costs. Costs associated with
transferring the workers are an example of project indirect costs.
Answer:
One of the competitive dimensions that form the competitive position of a company
when planning their strategies is cost.
Answer:
In 1997 the Malcolm Baldrige National Quality Improvement Act established the U.S.
annual award for total quality management.
Answer:
The economic order quantity (EOQ) lot sizing technique uses the ‘square root formula”
to balance set-up cost, carrying cost and cost of stock-outs.
Answer:
Group technology cells help to eliminate movement and queue (waiting) time between
operations.
Answer:
Complex projects are often subdivided into a series of tasks that are typically
configured to be not longer than several months in duration.
Answer:
Long-range capacity planning requires top management participation.
Answer:
In the textbook the expression “quality at the source” means that we need to purchase
the best quality a supplier or vendor can provide.
Answer:
Which of the following is an input file necessary to run an MRP system?
A. Exception report
B. Computer-aided-design files
C. Inventory records file
D. Personnel files
E. Planned order schedule
Answer:
Capacity planning that involves hiring, layoffs, some new tooling, minor equipment
purchases, and subcontracting is considered as which one of the following planning
horizons?
A. Intermediate range
B. Long range
C. Short range
D. Current
E. Upcoming
Answer:
In development of an operations and supply chain strategy, which of the following may
be an important product-specific criteria to consider?
A. Focus
B. Production lot-size
C. Supplier after-sale support
D. Learning curve
E. Total quality management
Answer:
Some of the advantages of a functional project where the project is housed in a
functional division include which of the following?
A. The project manager has full authority over the project
B. Team pride, motivation, and commitment are high
C. A team member can work on several projects
D. Needs of the client are secondary
E. None of the above
Answer:
Maintaining a stable workforce working at a constant output rate while shortages and
surpluses are absorbed by fluctuating inventory levels, order backlogs and allowing lost
sales is which of the following production planning strategies?
A. Stable workforce, variable work hours
B. Chase
C.
D. Full employment
E. Skill maintenance
Answer:
Which of the following considerations is not a factor in deciding which forecasting
model a firm should choose?
A. Time horizon to forecast
B. Product
C. Accuracy required
D. Data availability
E. Analyst availability
Answer:
If there are 400 total defects from 8 samples, each sample consisting of 20 individual
items in a production process, which of the following is the fraction defective that can
be used in a “p” chart for quality control purposes?
A. 400
B. 160
C. 2.5
D. 1.0
E. 0.4
Answer:
Imagine comparing a manufacturing operation using regular lot-sizing and the same
operation with a Kanban/lean production approach. What would be your expectations of
the difference between the total cost (i.e., inventory holding costs + setup/ordering
costs) of each?
A. Inventory holding cost will increase non-linearly with inventory
B. Total costs will be lower for the regular lot-size operation
C. Total costs will be lower for the Kanban/lean production operation
D. The order quantity will be larger for the Kanban/lean production approach
E. As long as the total quantity is the same, total costs will be the same
Answer:
Using the fixed-order quantity model, which of the following is the total ordering cost
of inventory given an annual demand of 36,000 units, a cost per order of $80 and a
holding cost per unit per year of $4?
A. $849
B. $1,200
C. $1,889
D. $2,267
E. $2,400
Answer:
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
Answer:
Computer inventory systems are often programmed to produce a cycle count notice in
which of the following case?
A. When the record shows a near maximum balance on hand
B. When the record shows positive balance but a backorder was written
C. When quality problems have been discovered with the item
D. When the item has become obsolete
E. When the item has been misplaced in the stockroom
Answer:
Which of the following is a dimension of design quality?
A. Aesthetics
B. Price
C. Quality at the source
D. Distribution
E. Leadership
Answer:
Various financial data for SunPath Manufacturing for 2012 & 2013 follow.
Answer:
You want to develop a three-sigma “R” chart. You know the average range is 12 based
on several samples of size 6. Which of the following is the resulting LCL?
A. 20.0
B. 18.3
C. 7.02
D. 5.6
E. 0.0
Answer:
In conducting aggregate operations planning there are a number of required inputs.
Which of the following are considered inputs internal to the firm?
A. Inventory levels and economic conditions
B. Market demand and subcontractor capacity
C. Current physical capacity and current workforce
D. Competitor behavior and current workforce
E. Current physical capacity and raw material availability
Answer:
Matching the production rate to the order rate by hiring and laying off employees as the
order rate varies is which of the following pure production planning strategies?
A. Stable workforce, variable work hours
B. Chase
C.
D. Meeting demand
E. Minimizing inventory
Answer:
In CPM analysis it is generally expected that the relationship between activity direct
costs and project indirect costs will be which of the following?
A. Positively related
B. Optimally related
C. Negatively related
D. Not related
E. Fractionally related
Answer:
In general, which forecasting time frame is best to detect general trends?
A. Short-term forecasts
B. Quick-time forecasts
C. Long range forecasts
D. Medium term forecasts
E. Rapid change forecasts
Answer:
Which of the following is an input to the master production schedule?
A. Bill of materials (BOM) file
B. Inventory records file
C. Exception reports
D. Planned-order schedules
E. None of the above
Answer:
The total output from a production system in one day is 500 units and the total labor
necessary to produce the 500 units is 350 hours. Using the appropriate productivity
measure, which of the following numbers represents the resulting productivity ratio?
A. 1.000
B. 1.428
C. 0.700
D. 0.411
E. None of the above
Answer:
A company wants to forecast demand using the simple moving average. If the company
uses four prior yearly sales values (i.e., year 2010 = 100, year 2011 = 120, year 2012 =
140, and year 2013 = 210), which of the following is the simple moving average
forecast for year 2014?
A. 100.5
B. 140.0
C. 142.5
D. 145.5
E. 155.0
Answer:
Which of the following is one of the main purposes of a MRP system?
A. Educate personnel in basic work rules
B. To determine the amount of materials needed to produce each end item.
C. Stimulate the work force
D. Decrease labor requirements
E. Increase inventory accuracy
Answer:
When balancing an assembly line, which of the following is not a way to reduce the
longest task time below the required workstation cycle time?
A. Upgrade the equipment
B. Assign a roaming helper to support the line
C. Split the task between two workstations
D. Speed up the assembly line transfer mechanism
E. Use a more skilled worker
Answer:
What is the name for a group of countries that have agreed on a set of special
arrangements governing the buying and selling of goods between member countries?
________________________
Answer:
What is a capacity cushion and why would a firm have one?
Answer:
Give an example of a project layout. ______________________
Answer:
What are the three main inputs to an MRP program?
1> _______________
2> _______________
3> _______________
Answer:
Distinguish between a workcenter and a manufacturing cell.
Answer:
Value is the ratio of ___________________________.
Answer:
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?
Answer:
What are the five conditions named in the text that support yield management from an
operational perspective?
1. ____________________________
2. ____________________________
3. ____________________________
4. ____________________________
5. ____________________________
Answer: