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Given the following data:
The end product J is made from components K and L. Component K is made from M
and N. The authorized MPS calls for 10 J to be completed in week 2, 30 J to be
completed in week 3, 40 J to be completed in week 5, and 50 J to be completed in week
6. There is a scheduled receipt of 120 L in week 2.
(a) What are the gross requirements for K, L, M and N?
(b) What are the planned orders for K, L, M and N?
Information that may be contained in the inventory records file includes all except
which of the following?
a) part numbers
b) run times for manufactured parts
c) part names
d) lead times
e) safety stock requirements
The jobs listed below have not yet been scheduled. Using the S/RO technique, in what
sequence would you schedule these jobs?
a) B-E-C-D-A
b) A-D-C-E-B
c) A-C-E-B-D
d) A-C-D-E-B
e) E-C-D-A-B
Aacorp has experienced an increase in demand for its product and has decided that it
will expand its factory, since capacity is currently too low to meet demand. It is not sure
whether demand will continue to increase in the future or not. It is considering two
options. A small expansion will be sufficient to meet its current demand and also its
future demand if demand levels off. Its second option is a large expansion, which will
be more than sufficient for current demand and will also handle future demand even if
continues to increase. They have estimated that the probability that demand will
continue to increase is 40%.
A small expansion will cost $2 million while a large expansion will cost $4 million. If
they make a small expansion and demand continues to increase, they will have to make
a second expansion in 18 months and the net present value of that second expansion is
$3 million.
The net present value of the future revenue resulting from the expansion will be $5
million under two conditions: 1) demand levels off, or 2) demand continues to increase,
but Aacorp chooses a small expansion and does not make a second expansion in 18
months. The net present value of the future revenue will be $9 million if demand
continues to increase and Aacorp either chooses a large expansion or makes a second
expansion in 18 months after choosing a small expansion.
(a) Construct a decision tree and solve it.
(b) Should Aacorp make a small expansion or a large expansion?
(c) What is the resulting expected net present value of its future profits?
If you allocate scarce resources to customers at prices that maximize the yield to the
company you are using:
a) level aggregate planning
b) chase production planning
c) price fixing
d) yield management
e) price compression
Capacity requirements planning uses data from _________________________.
a) MRP
b) rough-cut capacity planning
c) aggregate planning
d) MPS
e) the bill of labor file
According to JIT, workers should perform
a) system specification development
b) as directed by the supervisor
c) routine preventive maintenance activities
d) poka-yoke designs
e) quality program development
The ____________ time is the time it should take a qualified operator, working at a
sustainable pace and using the appropriate tools and process, to do the job.
a) performance
b) observed
c) normal
d) standard
e) ideal
Consider the following information.
(a) Calculate the mean observed time for each work element.
(b) Calculate the normal time for each work element.
(c) Using an allowance factor of 10% based on job time; calculate the standard time for
each work element and for the entire job.
(d) Based on the standard time, how many units should an employee performing at
100% of standard complete each hour?
Which of the following is not one of the four basic layout types?
a) product
b) hybrid
c) process
d) fixed position
e) inverted
Which of the following is not a direct input to capacity requirements planning?
a) planned shop orders
b) open shop orders
c) setup time and run time per unit for shop orders
d) current inventory levels
e) quantity for shop orders
In Excel, what is the shortcut to view formulas on the spreadsheet?
a) Ctrl+'
b) Ctrl+`
c) Ctrl+F
d) Ctrl+^
e) Ctrl+~
A manager has just replaced three workers with a machine that is cheaper to operate
than the cost of the three replaced workers. Output is expected to remain the same.
Which of the following is true?
a) labor productivity will decrease
b) machine productivity will increase
c) multifactor productivity will decrease
d) multifactor productivity will increase
e) the value of output will decrease
According to several studies, what are the three most important criteria for selecting
suppliers?
a) Price, quality, fast delivery
b) Quality, fast delivery, on-time delivery
c) Price, flexibility, on-time delivery
d) Quality, flexibility, fast delivery
e) Price, quality, on-time delivery
In making a backward pass through a network, activity L has an activity time of 4 and
immediately precedes activities M, P, and T. The late start times for activities M, P, and
T are 22, 17, and 27, respectively. The late finish times for activities M, P, and T are 29,
27, and 33, respectively. What is the late start time for activity L?
a) 13
b) 17
c) 22
d) 33
e) 37
The creator of scientific management believed that
______________________________________.
a) worker productivity is governed by scientific laws
b) the worker should have a lot of control over his or her job
c) efficiency is overrated
d) worker pay should primarily be based on seniority
e) mathematical models are the basis for management of production
On which key trade-off does the textbook focus concerning office layouts?
a) cost vs. comfort
b) pictures vs. windows
c) cubes vs. doors
d) network printers vs. individual printers
e) proximity vs. privacy
Consider the following information.
(a) Determine the sample size needed if the standard time estimate is to be within 2% of
the true mean 99% of the time.
(b) Calculate the normal time for each work element.
(c) Using an allowance factor of 20% based on the amount of time worked; calculate
the standard time for each work element and for the entire job.
(d) Based on the standard time, how many units should an employee performing at
110% of standard complete during an 8-hour day?
What is the formula for projected available in an MPS record?
a) beginning inventory + MPS shipment forecasted demand
b) MPS shipment from previous week forecasted demand
c) cumulative MPS shipments cumulative forecasts
d) forecasted demand MPS shipment from previous week
e) beginning inventory + forecasted demand MPS shipment
Decisions regarding which of the following are not part of the production process
infrastructure?
a) organization of workers
b) facilities
c) worker pay
d) quality control measures
e) management policies
Collection of point-of-sale (POS) information is most useful for which bullwhip effect
remedy?
a) Allocate units based on past demand
b) Price stabilization
c) Fill orders based on a set percentage
d) Eliminate order batching
e) Information sharing
Which of the following is not included in the approach for crashing projects?
a) Determine which activity requires the most time.
b) Crash the least expensive activity first.
c) Determine how much the project needs to be reduced.
d) Calculate the total costs associated with crashing the project.
e) Determine which activities on the critical path can be reduced.
If inputs increase by 10% and outputs increase by 5%, what is the percentage change in
productivity?
a) 4.545% decrease
b) 4.545% increase
c) 4.762% increase
d) 4.762% decrease
e) 50.000% increase
Excel's Solver Add-In solves _____________ problems.
The MATCH function returns the ________________ position in the array that matches
the lookup value.
Name three of the main factors that affect location decisions.
________________________, ________________________, and
________________________.
What are the disadvantages for firing permanent employees?
The number of trips or products moved between pairs of departments is recorded in a
____________________.
