When evaluating location alternatives the firm should look at
a) only qualitative factors
b) only quantitative factors
c) both qualitative and quantitative factors
d) weighted average values
e) decision support models only
In break-even analysis, what is the break-even point?
a) the quantity where revenue equals total cost
b) the quantity where revenue equals fixed cost
c) the quantity where revenue equals variable cost
d) the quantity beyond which the firm starts to lose money
e) the quantity where variable cost equals fixed cost
If inputs increase by 6% and outputs increase by 24%, what is the percentage
productivity increase?
a) 400.00%
b) 16.98%
c) 0.25%
d) 4.00%
e) 18.00%
Some warehouses provide product mixing. This is referred to as:
a) reduced value-added service for customers.
b) value-added service for customers.
c) mix and match capability.
d) correcting earlier mistakes in shipping.
e) storage warehouse functions.
Which of the following is not part of the process for developing an MPS?
a) The MRP system is run.
b) Rough-cut capacity planning is used.
c) Evaluation occurs with regard to customer service, effective use of resources, and
inventory investment.
d) If capacity is insufficient, the MPS is modified or capacity is expanded.
e) An MRP is proposed.
Demand management includes all but which of the following:
a) company’s forecast
b) order planning
c) order-entry
d) order receipts
e) physical distribution activities
With capacity requirements planning, the calculated workload for a work center is
compared with ___________.
a) available capacity
b) calculated workloads for other work centers
c) the cost of expanding the work center
d) standard capacity
e) design capacity
Which of the following is most likely the reason you may have to wait at the doctor’s
office?
a) infinite loading
b) finite loading
c) forward scheduling
d) backward scheduling
e) none of these answer choices are correct
What technique eliminates unnecessary tasks and improves the process for completing
tasks?
a) methods analysis
b) job design
c) work measurement
d) task inversion
e) cycle counting
If the model produces the numerically correct values, it is said to be:
a) flexible
b) adjustable
c) a transformation
d) accurate
e) inaccurate
Which phase in the project life cycle involves analyzing the project risk?
a) conception
b) feasibility analysis or study
c) planning
d) execution
e) termination
For a p-chart or c-chart, what is the implication of a negative value for the LCL?
a) A calculation error must have occurred.
b) The value of sigma must be reduced.
c) The process has too many errors.
d) The process is in a state of control.
e) The LCL can effectively be rounded up to 0.
Which of the following waiting line systems best describes a men’s clothing store,
where one of the sales clerks first assists the customer in selecting the material and style
and then one of the tailors measures the customer to ensure a custom-fitted suit?
a) single-server, single-phase
b) multi-server, multi-phase
c) multi-server, single-line, single-phase
d) multi-server, multi-line, single-phase
e) single-server, multi-phase
Suppose that you have calculated the control limits for a p-chart to be the following:
LCL = 0.02 and UCL = 0.08.
Today, you took 10 samples of 20 units each. The first nine samples each had one
defect. The last sample had zero defects. What can you conclude?
a) the process is out of control
b) the process is in a state of control
c) the last sample should be ignored because it was ‘too good’
d) you calculated the limits incorrectly because the LCL must be either negative or 0
e) the sample size must be increased
The average time customers spend waiting and the average time a customer spends in
the system:
a) are the same metric.
b) use the same formula.
c) are not considered.
d) are different system metrics.
e) only apply to multi-server systems.
When making competitive priority decisions the firm:
a) must select the correct supply chain
b) must ensure the PWP is correctly established
c) must focus on the one competitive priority at the exclusion of all others
d) must make trade-off decisions
e) must isolate the competing internal departments
What is a unique, one-time event that is intended to achieve an objective in a given time
period?
a) a project
b) a job
c) a task
d) an activity
e) an event
Suppose that assembly of a product involves three different tasks taking 10 seconds, 20
seconds, and 30 seconds, respectively. What is the maximum possible output per hour
of the system?
What are the five guidelines for good spreadsheet documentation?
Consider a single-line, single-server waiting line system. Suppose that customers arrive
according to a Poisson distribution at an average rate of 60 per hour, and the average
(exponentially distributed) service time is 45 seconds per customer. What is the average
number of customers in the system?
JIT changes happen in sequence because ________________________.
Frank James works for a production facility that makes car radios. His job is to insert
the integrated circuits and make sure that they work correctly. He is expected to handle
20 radios per hour. The factory uses a Kanban production system with containers that
hold four radios. It takes 60 minutes for Frank to receive the radios from the previous
work station. How many Kanbans are needed?
Discuss how the MPS is evaluated in terms of cost.
What are the steps involved when a time study analyst uses standard elemental times?
A leather goods factory manufactures five styles of handbags, whose variable
contributions
are $30, $40, $45, $25, and $60 per dozen, respectively. The products must pass
through four work centers and the man-hours available in each are: clicking (700),
paring (600), stitching (400), and finishing (900). Hourly requirements for each dozen
handbags are:
To prevent adding to inventory levels already on hand, the production manager, after
reviewing the weekly sales forecasts, has specified that no more than 100, 50, 90, 70,
and 30 dozen of each style respectively may be produced. Each handbag is made from
five materials as specified in the following table:
Formulate a linear program to determine the production policy that will maximize
profits.
What are the three steps in designing process layouts?
Forecasting product demand involves forecasting _________________ demand and the
firm’s _________________.