Work sampling estimates the percent of time that a worker spends on various tasks.
Closed-loop MRP systems allow production planners to move work between time
periods to smooth the load or to at least bring it within capacity.
The theory of comparative advantage states that you should allow another firm to
perform work activities for your company if that company can do it more productively
than you can.
The lot-for-lot lot-sizing technique is particularly appropriate when demand is not very
smooth and set up cost is small compared to holding cost.
An operations chart, or right-hand/left-hand chart, points out wasted motion and idle
time.
Nearly any business activity can be outsourced.
The five elements in the management process are
A) plan, direct, update, lead, and supervise
B) accounting, finance, marketing, operations, and management
C) organize, plan, control, staff, and manage
D) plan, organize, staff, lead, and control
E) plan, lead, organize, manage, and control
The process capability measures C and Cpk differ because
A) only one ensures the process mean is centered within the limits
B) C values above 1 indicate a capable process, Cpk values above 2 indicate a capable
process
C) both are identical
D) C values for a given process will always be greater than or equal to Cpk values
E) both A and D
Which of the following is not a common queuing situation?
A) grocery shoppers being served by checkout clerks
B) commuters slowing or stopping at toll plazas to pay highway tolls
C) machinery waiting to be repaired or maintained
D) parcel delivery truck following its computer-generated route
E) patients in a health clinic waiting to see one of several doctors
If safety stock is desired it should be built into which portion of MRP?
A) any
B) none
C) raw materials
D) finished assemblies
E) either C or D
The following table is an example of a(n)
A) aggregate plan
B) load report
C) master production schedule
D) capacity plan
E) inventory record
Value-chain analysis is used to identify activities that represent, or can develop into, the
core competencies of a business. Who introduced this concept?
A) Ford
B) Toyota
C) Porter
D) Smith
E) None of the above
Value analysis takes place
A) when the product is selected and designed
B) during the initial stages of production when something needs to be done to assure
product success
C) when the product is first conceived
D) during the production process when it is clear the new product is a success
E) when the product cost is very low
A six-month moving average forecast is generally better than a three-month moving
average forecast if demand
A) is rather stable
B) has been changing due to recent promotional efforts
C) follows a downward trend
D) exceeds one million units per year
E) follows an upward trend
The transfer of some of what are traditional internal activities and resources of a firm to
outside vendors is
A) a standard use of the make or buy decision
B) not allowed by the ethics code of the Supply Management Institute
C) offshoring
D) outsourcing
E) keiretsu
Vertical integration appears particularly advantageous when the organization has
A) a very specialized product
B) a large market share
C) a very common, undifferentiated product
D) little experience operating an acquired vendor
E) purchases that are a relatively small percent of sales
Which of the following is generally found in most JIT environments?
A) a push or pull system, depending upon the rate of demand
B) a push system for high margin items and a pull system for low margin items
C) a push system for purchased parts and a pull system for manufactured parts
D) push systems
E) pull systems
“An optimal plan for minimizing the cost of allocating capacity to meet demand over
several planning periods” best describes
A) the linear decision rule
B) simulation
C) the management coefficients model
D) the transportation method
E) graphical methods
For a machine to be a good candidate for preventive maintenance
A) the consequences of failure must exceed the cost of preventive maintenance and the
MTBF distribution must have a large standard deviation
B) the consequences of failure must exceed the cost of preventive maintenance and the
MTBF must be relatively low
C) the consequences of failure must exceed the cost of preventive maintenance and the
MTBF distribution must have a relatively low standard deviation
D) the consequences of failure must exceed the cost of preventive maintenance and the
MTBF must be relatively high
E) the consequences of failure must be relatively unknown and, therefore, risky
Find the minimum cost shipping solution for the transportation problem data set in the
table below. Provide a table of shipping quantities and the minimum value for the
objective function.
__________ is the probability that a machine part or product will function properly for
a specified time under stated conditions.
A professional services firm is investigating yield management as a means of taking
advantage of unused capacity. Analysts for this firm estimate a demand curve for the
firm’s service, which is sold by the hour. Points on this demand curve include 9000
hours at the current rate of $60 per hour, 9500 hours at $55, 10,000 hours at $50, and
10,500 hours at $45. Based on this demand curve, what price point would be best for
the firm, if its objective is maximum revenue?
Which country should a firm choose for production using a weighted factor method if
high scores indicate high risk?
__________ are areas located along the U.S.-Mexico border in which factories receive
preferential
tariff treatment.
Can “in control” and “capable” be shown on the same chart?
__________ is the ability of the organization to be flexible enough to cater to the
individual whims of consumers.