What costs are considered in the basic EOQ model?
a) annual ordering costs + annual holding costs
b) annual purchasing costs + annual holding costs
c) annual ordering costs + annual holding costs + annual shortage costs
d) annual purchasing costs + annual ordering costs + annual holding costs + annual
shortage costs
e) ordering costs per order + annual holding costs
According to the textbook, most manufacturing operations, production or inventory
control planners are responsible for working with MRP. Planners are typically
responsible for all except which of the following:
a) end item inventory items
b) subassemblies inventory items
c) component inventory items
d) raw material pricing
e) supplier delays
Warehouse layouts have the key characteristics of process layouts except
a) number of loads is not a design consideration
b) location isn’t a major consideration
c) there is movement between the storage areas
d) from trips are the only consideration
e) there is no movement between the storage areas
Which of the following is the simplest forecasting method?
a) Naïve
b) Moving average
c) Weighted moving average
d) Trend adjusted exponential smoothing
e) Linear regression
Percentage of Line Items Shipped on Schedule recognizes that:
a) not all orders are equal but fails to take into account the dollar value of orders.
b) not all orders are equal but this can be compensated for.
c) there are differences in orders in terms of both line items and dollar value.
d) an absolute measure of manufacturing or service time lost because material or parts
are not available.
e) all orders and customers should be treated equally.
If the telecommunication company sold $10,000,000 of internet service using $50,000
of labor, $25,000 of leased bandwidth, $45,000 service fees, and $80,000 or
replacement parts, what is the telecommunication multifactor productivity?
a) 35
b) 40
c) 45
d) 50
e) 55
Price fluctuations follow all but which of the following marketing promotions?
a) Advertising
b) Price discounts
c) Quantity discounts
d) Coupons
e) Rebates
Which of the following is not necessary for receiving ISO 9000 certification?
a) Products meet customer requirements
b) Documentation of methods used to monitor quality
c) Documentation of methods and frequency of worker training
d) Documentation of statistical process control tools used
e) An audit by an ISO 9000 examiner
Hoops, Inc. has the following actual demand and forecasted demand data.
Calculate the mean squared error of those forecasts.
The items listed below are stored in a one-dock warehouse. Which of them should be
stored at the very front (closest to the dock)?
a) A
b) B
c) C
d) D
e) E
In using Quality Function Deployment, __________ is one way to find out precisely
what features customers want in the product.
a) Interviewing the company sales force
b) Analyzing the changes in features historically
c) Asking top management
d) Talking to process engineers
e) Conducting focus groups
Which of the following is not one of the rows in an MPS record?
a) time period (e.g., week)
b) forecast
c) planned orders
d) MPS
e) projected available
In calculating the time standard, the frequency of occurrence for a work element is
_________________.
a) how many times the work element is repeated in doing the job once
b) how many other jobs have the same work element
c) the fraction of the time the work element needs to be done when the job is done
d) the number of times the work element took longer than all the other work elements
e) the inverse of the wave length for the work element
The inventory objective of customer service is measured by any of the following except
_______________.
a) weeks of supply
b) percentage of dollar volume shipped on schedule
c) idle time due to component and material shortages
d) percentage of orders shipped on schedule
e) percentage of line items shipped on schedule
What are software solutions that allow the firm to collect customer-specific data?
a) MRP
b) CRM
c) ERP
d) JIT
e) ISO
For every scheduled receipt in an MRP table, there is also in the organization a(n)
__________________.
a) shop floor order
b) order that has been placed but not yet been received
c) planned order
d) period order
e) dispatch list
Which inventory function exists between the manufacturing plant and the distribution
plant?
a) anticipation inventory
b) fluctuation inventory
c) lot-size inventory
d) transportation inventory
e) speculative inventory
A constant concern within purchasing departments is the issue of ethics in managing
_______________.
a) customers
b) web sites
c) inventory
d) suppliers
e) entry-level employees
The Village Butcher Shop traditionally makes its meat loaf from a combination of lean
ground beef and ground pork. The ground beef contains 80 percent meat and 20 percent
fat, and costs the shop 80 cents per pound; the ground pork contains 68 percent meat
and 32 percent fat, and costs 60 cents per pound. Formulate a linear program to
determine the amount each kind of meat that the shop should use in each pound of meat
loaf if it wants to minimize its cost and to keep the fat content of the meat loaf to no
more than 25 percent.
Frank’s appliance store has just employed a new repair technician. The factor says that
the re is a 90% learning curve. Typically the first refrigerator repair takes 2 hours. How
long should it take this technician to repair the 8th refrigerator?
Discuss the Master scheduler responsibility.
If the marketing plan does not meet the strategic business objectives, top management
and marketing revise either the _________ or the ___________.
Consider a project activity that has an optimistic time of 3 weeks, a most likely time of
10 weeks, and a pessimistic time of 25 weeks. What is the expected time for that
activity?
In what ways do service organizations differ from manufacturing organizations?
What is an R-chart?
The project management approach indicates the timing and the quantity of resources
needed. For manufacturing, this input is needed to develop a valid __________.
Developing a single forecast from several methods is called _________________.