If demand exceeds supply in a transportation problem, the problem must be balanced by
adding a dummy source with additional supply.
In most real-world inventory problems, lead time and demand vary in ways that make
simulation a necessity because mathematical modeling is extremely difficult.
The graphical method of solving linear programming can handle only maximizing
problems.
Capacity decisions are based on technological concerns, not demand forecasts.
MRP is generally practiced on items with dependent demand.
The probability of rejecting a good lot is known as consumer’s risk.
Operations strategies are implemented in the same way in all types of organizations.
One use of labor standards is to determine what makes a fair day’s work.
The factor-rating method can consider both tangible and intangible costs.
Regal Marine’s attempts to keep in touch with customers and respond to the
marketplace are made impossible because consumer tastes change and maritime
engineering improves.
Mixed strategies in aggregate planning utilize inventory, work force, and production
rate changes over the planning horizon.
Given the following bill of material
If the demand for product A is 50 units, what will be the gross requirement for
component E?
A) 4
B) 100
C) 200
D) 250
E) 300
Suppose that a firm has historically been achieving “three-sigma” quality. If the firm
later changes its quality management practices such that it begins to achieve ‘six-sigma”
quality, which of the following phenomena will result?
A) The average number of defects will be cut in half.
B) The specification limits will be moved twice as far from the mean.
C) The average number of defects will be cut by 99.9997%.
D) The average number of defects will be cut by 99.87%.
E) The average number of defects will be cut by 99.73%.
According to the authors, which of the following strategic concepts allow firms to
achieve their missions?
A) productivity, efficiency, and quality leadership
B) differentiation, cost leadership, and quick response
C) differentiation, quality leadership, and quick response
D) distinctive competency, cost leadership, and experience
E) differentiation, distinctive competency, quality leadership, and capacity
A large consulting firm is deciding on if its workforce should be expanded, maintained,
or decreased. Suppose that demand is given in week long projects, and that a consultant
can work on 3 projects each month (1 week off for personal leave and/or other duties
such as conferences, etc). Currently there are 25 consultants. Ten consultants are trained
for LEAN and 15 for Six Sigma, with 5 of those consultants being overlaps (the
consultant is trained for BOTH LEAN and Six Sigma). Assume that all consultants can
do the general work. Complete the table (the forecast period is an upcoming month) and
prepare a recommendation.
Which of the following are examples of transnational firms?
A) Nestle
B) Asea Brown Boveri
C) Reuters
D) Citicorp
E) All of the above are transnationals.
The probability that a product will function properly for a specified time under stated
conditions is
A) functionality
B) maintenance
C) durability
D) reliability
E) fitness for use
Job rotation is an example of
A) job enrichment
B) job scheduling
C) job training
D) job enlargement
E) job incentive
A Methods and Measurements Analyst needs to develop a time standard for a certain
task. The task involves use of ruler, square, and portable electric saw to mark and cut
the “notch” in a rafter (a standard carpentry task of home construction). In a preliminary
study, he observed one of his workers perform this task five times. The observations
were made in an air-conditioned, well-lighted training facility, at ground level, with all
tools and equipment clean and readily available.
a. What is the actual average time for this task?
b. What is the normal time for this task if the employee worked at a 20% faster pace
than is typical for adequately trained workers?
c. What is standard time for this task if allowances are 8% constant and 6% variable?
d. If the analyst then thought more carefully about his experiment, and decided that the
variable allowances needed to be increased to match the real (outside,
unair-conditioned) work environment, and that the proper variable allowance was not
6% but 12%, what is the revised standard time?
The forecasting model that pools the opinions of a group of experts or managers is
known as the
A) expert judgment model
B) multiple regression model
C) jury of executive opinion model
D) consumer market survey model
E) management coefficients model
On the crossover chart where the costs of two or more location alternatives have been
plotted, the quantity at which two cost curves cross is the quantity at which
A) fixed costs are equal for two alternative locations
B) variable costs are equal for two alternative locations
C) total costs are equal for all alternative locations
D) fixed costs equal variable costs for one location
E) total costs are equal for two alternative locations
Explain why a small standard deviation of the MTBF distribution makes a product,
machine, or process a good candidate for preventive maintenance while a large standard
deviation does not.
Identify the items that Fredrick W. Taylor believed management should be more
responsible for.
__________ are graphical presentations of data over time that show upper and lower
control limits for processes we want to control.
__________ is a method of measuring samples of lots or batches of product against
predetermined standards.
A car mechanic is thinking of guaranteeing customers that an oil change will take no
more than 15 minutes with a 99.73% confidence level. He takes a few samples of size 5
and finds the process mean to be 13 minutes with a standard deviation of .2 minutes and
average sample range of 1.2 minutes. Find the A2, D4, and D3 values and use them to
compute the upper and lower limits for an x-bar chart. Use the upper limit to determine
if the mechanic can offer a 15 minute guarantee. Assume the mechanic plots the
samples on the x-bar control chart and finds the process is in control, is there anything
else the mechanic is missing to ensure the process is in control?
__________ scheduling begins with the due date and schedules the final operation first
and the other job steps in reverse order.