Disadvantages of globalization include political risks for countries with unstable
governments.
The amount of outsourcing in industry is increasing.
CPFR is an iterative process.
Gross requirements for finished products are taken from the order entry file.
The fact that human activities typically improve when they are done on a repetitive
basis is described by a learning curve.
External failure costs tend to be particularly high for service organizations.
During overtime worker productivity increases due to the increase salary received
In Linear Programming (LP) problems, all of the relationships among the variables are
linear.
In Linear Programming, users have control over quantities called parameters.
An optimal solution to an optimization problem is always feasible.
The table containing the Learning Curve Coefficients allows one to calculate both the
time it should take to build the nth unit as well as the total production time required to
build the entire production run when the nth unit is the last one completed.
Not-equals-to constraints (≠) are allowable in optimization problems.
Suppose that you are using the three-period simple moving average method to forecast
sales, and sales have been increasing by 10% every period. Then your forecasts will be
increasing by 10% every period.
A primary objective of the master production schedule is to achieve the desired
customer service level.
The A2 factor includes two standard deviations of ranges.
A quality circle is a team of volunteer production employees and their supervisors who
meet regularly to solve quality problems.
A tier one supplier is always more important than a tier two supplier.
Supply chain velocity refers to
a) how fast the transportation vendor is
b) how fast the company pays the supply chain vendors
c) how fast the purchasing department responds to a request
d) the speed at which a product moves through a pipeline from the manufacturer to the
customer
e) the speed at which the warehouse is able to crossdock a shipment
Which of the following is an assumption of the basic EOQ model?
a) Lead time is known and constant.
b) Demand may be seasonal.
c) Orders can arrive in partial shipments.
d) Quantity discounts are considered.
e) Lost sales are allowed, but not back orders.
For the general warehouse layout problem, which department should be located furthest
from the dock?
a) least trips needed
b) most area needed
c) highest ratio of trips needed to area needed
d) smallest ratio of area needed to trips needed
e) smallest ratio of trips needed to area needed
For a single-server, single-line, single-phase waiting line system, where represents
the mean arrival rate of customers and represents the mean service rate, what is the
formula for the average number of customers in the system?
a) /
b) / ( )
c) 2 / ( )
d) 1 / ( )
e) / ( )
What do you need to do before using Solver?
a) take an Excel class
b) enter solver settings into Excel
c) define all constraints
d) enter Solver options
e) have a working, flexible spreadsheet model
___________________ perform repetitive what-if analysis quickly and easily in Excel.
a) What-If Tables
b) Repetitive Tables
c) Sensitivity Tables
d) Scenario Tables
e) Data Tables
The two primary Excel tools for diagnosing problems in models are
___________________.
a) Error Auditing and Formula Checking
b) Error Auditing and Formula Auditing
c) Error Checking and Formula Auditing
d) Error Checking and Formula Checking
e) Error Diagnosing and Formula Debugging
Last month a plant produced 10,000 units using 2000 labor hours. This month it
produced 12,000 units using 3000 labor hours. What is the percent productivity
decrease?
a) 200%
b) 100%
c) 50%
d) 25%
e) 20%
For a break-even graph, the total cost for each possible location is plotted against
__________________.
a) fixed costs
b) variable costs
c) profit margin
d) quantity
e) price
The concept of diseconomies of scale ________________________.
a) states that the average cost of a unit produced is reduced when the amount of output
increases
b) is not realistic
c) is not valid for regulated industries
d) states that beyond a certain point the cost of each additional unit made increases
e) is an approach for measuring unusable output
What term is used to describe the integration of product design, process planning, and
manufacturing using an integrated computer system?
a) CAD/CAM
b) AGV
c) AS/RS
d) FMS
e) CIM
Slim-Quick Inc. produces a variety of nutritional diet products. Management wants to
evaluate the performance of Work Center 10, the bottleneck in the packaging line. They
are particularly worried about the backlogging problem in the work center. The
following input/output report is given.
The initial backlog was 100 hours. Based on the above information, calculate the
backlog hours of Work Center 10 at the end of period 3.
a) 100
b) 110
c) 140
d) 150
e) 200
Which of the following is not an identified reason why manufacturing firms do not use
optimal EOQ order quantities?
a) do not have known uniform demand
b) some suppliers have a minimum order quantity
c) how the material is shipped
d) what the sales price is
e) insufficient storage space
Which production line shapes are particularly useful for the sharing of resources?
a) S and U
b) L and O
c) O and S
d) L and S
e) O and U
The ERP system provides a single interface:
a) to operations only.
b) to operations and inventory control only.
c) to external members of the supply chain as well.
d) to the company management structure only.
e) to customers only.
The benefits of long-term relationships with a small number of suppliers include all of
the following except
a) Always getting the lowest price
b) Focus on improving process controls
c) Greater accountability
d) Develop stable delivery schedules
e) Eliminate paperwork
What establishes that point of time in the future inside of which changes to the MPS
must be approved by a higher authority?
a) demand time fence
b) supply time fence
c) authorized time fence
d) frozen time fence
e) planning time fence
Technology should be acquired because:
a) the new technology is fun
b) the new technology keeps the employees happy
c) the new technology doesn’t cost very much
d) the new technology always improves productivity
e) the new technology supports the company’s chosen competitive priorities
Sam Smear owns a manufacturing company that makes ball point pens. Currently he is
trying to decide between two processes for making the pens. The first process will have
a fixed cost of $200,000 per year and variable costs of $0.40 per pen. The second
process will have a fixed cost of $250,000 per year and variable costs of $0.30 per pen.
a) Identify which ranges of product volume are best for each process.
b) If Sam makes 200,000 pens, which process provides a lower cost?
Define feasible solution, infeasible solution, and optimal solution.
Deterministic time estimate makes a _______________ time estimate for each project
___________.
Define Johnson’s rule.
JIT supply chains often involve firms that _____________________.
Models transform inputs into ________________________
Discuss some of the factors on how much safety stock will be kept on hand.
Describe the difference between operational effectiveness and strategy.
Describe the ten guidelines for selecting forecasting software.