The aggregate plan is usually updated and reevaluated monthly by the operations group.
Economic feasibility is the degree to which the job adds value and the cost of
performing the job done are profitable for the company.
An REL chart can contain ratings of both desirability of closeness and undesirability of
closeness.
A process layout is seen in companies with continuous processing systems.
Customers typically consider a multiple-line service system to be fairer than a
single-line service system.
A single-line service system eliminates jockeying behavior.
The lead time can be less than the cumulative lead time when the company has
inventory on hand.
The need to offer a greater variety of product choices to customers of a traditionally
standardized product is the challenge of flexibility.
Accounting uses project management information to provide a time line for the
marketing program.
There are many variations of the mathematical models for designing waiting lines.
ISO 9001 is the standard used for the certification of a firm’s quality management
system.
Process velocity is computed as a ratio of throughput time to output.
Input measures of capacity work better when a company produces a single product.
Genichi Taguchi estimates that as much as 80 percent of all defective items are caused
by poor product design.
With a kaizen system there is no excess production because the only products and
quantities produced are those specified by the kaizen.
The shortest distance between two locations is called rectilinear distance.
In Excel, relative references are indicated by the lack of a dollar sign character
preceding either the column or the row reference.
Calculate the total cost to meet the demand using a chase production plan without using
overtime.
a) $72,960
b) $73,460
c) $73,660
d) $76,800
e) $77,175
A firm uses five plants to produce its products. Each final product has a value of $100.
The following table provides last week’s output, labor hours used (at $15 per hour), and
materials cost per unit.
Which plant was most productive last week?
a) plant 1
b) plant 2
c) plant 3
d) plant 4
e) plant 5
What is the term for the probability that a value falling outside the control limits is still
due to normal variation?
a) Type I error
b) Type II error
c) Normalization anomaly
d) Beta risk
e) Standard deviation irregularity
JIT considers __________ to be a company’s most precious resource.
a) Capital
b) Productive equipment
c) Information
d) People
e) Vision
Suppose that you are using the four-period weighted moving average forecasting
method to forecast sales and you know that sales will be increasing every period for the
foreseeable future. What of the following would be the best set of weights to use (listed
in order from the most recent period to four periods ago, respectively)?
a) 0.25, 0.25, 0.25, 0.25
b) 0.40, 0.30, 0.20, 0.10
c) 1.00, 0.00, 0.00, 0.00
d) 0.10, 0.20, 0.30, 0.40
e) 0.00, 0.00, 0.00, 1.00
Involving suppliers early in the design process is called:
a) reengineering
b) disaggregation
c) redesign
d) benchmarking
e) supplier involvement
For the current month using JIT
a) The same amount of each product is produced in the same order each day
b) Production matches that of last month
c) Lot sizes are varied week-to-week
d) Production differs greatly from day to day
e) Production is primarily for next month’s sales
The ________________________ for a constraint is the amount the optimal objective
value will change if the right-hand-side of the constraint is increased by one unit.
a) Changing Price
b) Opportunity Cost
c) Shadow Price
d) Opportunity Price
e) Shadow Cost
What is the term for a system in which the product being worked on is physically
attached to the line and automatically moved to the next station when the cycle time has
elapsed?
a) cyclical line
b) paced line
c) autoline
d) continuous line
e) constrained line
Which type of technology has had the greatest impact on business?
a) process technology
b) information technology
c) environmental technology
d) safety technology
e) product technology
In JIT a Kanban card is used to signal
a) The need for more parts
b) A supplier needs assistance
c) A worker is overloaded
d) A machine is ready for preventive maintenance
e) Management is inspecting operations
Motorsports, Inc. builds two different types of motors. Model A has averaged 20,000
units annually, and Model B has average 30,000 units annually. The firm has
historically used 80,000 direct labor hours and 10,000 hours of machine time per year
to build Model A. Also, 150,000 annual direct labor hours have been allocated to Model
B, along with 60,000 hours of annual machine time. What is the CPOPF planning factor
for direct labor for Model B?
a) 0.20
b) 4.00
c) 7.00
d) 5.00
e) 4.60
Which inventory function specifically is designed to allow the company to maintain a
level production strategy?
a) anticipation inventory
b) fluctuation inventory
c) lot-size inventory
d) transportation inventory
e) speculative inventory
Profit sharing and gain sharing are two methods of _______________.
a) group incentive plans
b) keeping costs down
c) calculating pay for top management
d) employee retirement plans
e) keeping expense account costs under control
A university is an example of which layout type?
a) inverted
b) hybrid
c) process
d) fixed position
e) product
If the costs (S and H) and demands (D) are the same, which of the following is not true
with regard to the EPQ model as compared to the EOQ model?
a) The EPQ model produces a lower total annual cost.
b) The maximum inventory level is lower under the EPQ model than under the EOQ
model.
c) Both models use the same formula to compute annual ordering cost.
d) The inventory depletion rate is not the same for both models.
e) The two models use different formulas to compute annual holding cost.
Which of the following is not included in the preliminary design and testing stage?
a) the product design idea is evaluated according to the needs of the major business
functions
b) design engineers translate general performance specifications into technical
specifications
c) ‘bugs’ are worked out
d) revising the design based on test results
e) prototypes are built and tested
A car wash is an example of which layout type?
a) inverted
b) hybrid
c) process
d) fixed position
e) product
Suppose that you want to monitor the variability in ounces of a process that fills beer
cans. Which control chart would be appropriate?
a) x-bar chart
b) R-chart
c) p-chart
d) c-chart
e) OC chart
The most critical factors in successful ERP programs are __________________ and
_________________.
What is the objective of the Delphi method?
One step in solving optimization problems is to write a problem _______________ in
words.
What are the inputs to the aggregate planning process?
Hoops, Inc., produces videos on the art of shooting in basketball. The firm has
experienced the following demand for the first 6 months of the year.
What is the forecast for July using a 4-month weighted moving average forecast, where
(1) the weight for the most recent month is three times more than the weight for the
period that’s four months in the past, (2) the weight for two periods ago is the same as
the weight for the most recent period, (3) the weight for three periods ago is the same as
the weight for the demand four periods ago, and (4) the weights sum to 100%?
Managers’ opinions about the importance of paired departments being near each other
are recorded in ________________.
What does the term ‘floating employees’ refer to?
You’ve been assigned to use work sampling to determine how much time Frank spends
sorting the mail. You’ve decided that a preliminary estimate of sample size is required to
determine the proportion of time spent sorting the mail with a 97% confidence level and
within 5% of the true value. What is the preliminary estimate of sample size?
What are the three broad categories of statistical quality control?
What conditions make effective capacity differ from design capacity?