One of the prerequisites to job rotation is cross-training.
One objective of material requirements planning (MRP) is to utilize all available
capacity.
One objective of sales and operations planning is to develop a companywide game plan
to satisfy production.
The order quantity cannot be calculated for a periodic inventory system that
experiences variable demand.
Advantages of small-lot production include requiring less space and lower capital
investment.
Positioning is a step in strategy formulation that defines how firms will compete in the
marketplace.
Lean concepts cannot be applied to services.
The systematic analysis of work methods is known as operations research.
Seasonal inventory allows a firm to maintain a smooth production flow throughout the
year.
Inadequate infrastructure at a given location increases supply chain costs and decreases
customer service.
The lower inventory levels associated with small-lot production make processes more
dependent on each other.
The service sector accounts for over 80 percent of employment in the United States.
Order winners and order qualifiers change over time in response to the dynamics of
changing market conditions.
Scheduling is considered the first stage of the planning process.
The ________________ is the source of customers for a waiting line system.
a. calling population
b. arrival rate
c. service line channel
d. service line phase
The following set of jobs must be processed serially through a two-step system. If
Johnson’s Rule is used to sequence the jobs then the order in which the jobs would be
performed is
a. A-B-C-D-E
b. C-B-E-D-A
c. E-B-D-A-C
d. D-E-B-A-C
Management believes a critical piece of equipment is busy 85% of the time. How many
observations should be taken if management wants to be 98% confident the estimate is
within + 2.5% of the actual proportion of time the equipment is in use?
a. 250 observations
b. 525 observations
c. 757 observations
d. 1,108 observations
Quality levels in the United States were generally measured in defects per hundred
before Six Sigma.
______________ specifies when the labor, equipment and facilities are needed to
produce a good or to provide a service.
a. Loading
b. Scheduling
c. Dispatching
d. Shop floor control
The following information relates to a company’s aggregate production planning
activities:
Beginning Workforce = 35 workers
Production per Employee = 1,250 units per quarter
Hiring Cost = $500 per worker
Firing Cost = $1,000 per worker
Inventory Carrying Cost = $20 per unit per quarter
If a level production strategy is used then the required quarterly output is
a. 75,000
b. 87,350
c. 93,750
d. 125,000
Which of the following quality tools display major causes of poor quality on a graph?
a. Process flow chart
b. Fishbone diagram
c. Histogram
d. Scatter diagram
Research has shown the success of Japanese companies operating production facilities
in the United States is due to
a. cultural factors.
b. management practices.
c. superiority of American workers.
d. None of these answer choices is correct.
The weekly capacity measured in machine hours for a small machine shop follows the
probability distribution shown below.
Use the following random numbers to simulate weekly capacity for the machine shop
for the next five weeks: 93, 31, 71, 8, 6.
If the first random number interval begins with 0, then the estimated average capacity
for the simulated five week period is
a. 560.
b. 520.
c. 480.
d. 400.
Consider an espresso stand with a single barista. Customers arrive at the stand at the
rate of 28 per hour according to a Poisson distribution. Service times are exponentially
distributed with a service rate of 35 customers per hour. The probability that the server
is busy is
a. 0.20
b. 0.60
c. 0.80
d. 1.00
Kallie Inc., a small parts manufacturer, has just engineered a new product for the
automotive industry. In order to produce the part the company can expand existing
facilities, acquire a competitor, or subcontract production. The company believes the
product will either experience high market demand or low market demand. The
following payoff table describes the company’s decision situation.
The best decision for Kallie Inc. using the maximin decision criterion is to
a. expand facilities.
b. acquire competitor.
c. subcontract production.
d. select high demand.
A firm has the following gross requirements for Item F. If ordering costs are $60 per
order and carrying costs are $0.50 per period.
If EOQ lot sizing is used the minimum order quantity is
a. 85
b. 100
c. 120
d. 150
Which of the following quality tools displays the steps in a process on a graph
a. Process flow chart
b. Fishbone diagram
c. Histogram
d. Scatter diagram
With a ___________ layout, activities are arranged in a line according to the sequence
of operations.
a. product
b. process
c. fixed-position
d. cellular
Technology decisions typical in operations management include all the following areas
except
a. information technology.
b. product technology.
c. process technology.
d. communication technology.
Which of the following services can be measured and monitored with control charts?
a. Hospitals
b. Airlines
c. Banks
d. All these answer choices are correct.
Companies that compete on ______________ focus on pleasing customers and
satisfying their expectations.
a. cost
b. speed
c. flexibility
d. quality
The most effective aggregate planning strategy depends on
a. the demand distribution
b. the competitive position
c. the firm’s cost structure
d. All of these answer choices are correct.
Which of the following would most likely be used to redesign or improve existing jobs?
a. methods analysis
b technology analysis
c environmental analysis
d task analysis