The increasing complexity of modern operations management has made simple
cut-and-try charting and graphical methods formerly used to develop aggregate
operations plans impractical and obsolete.
Backordering costs incurred in producing a given product type in a given time period
are relevant aggregate operations planning costs.
The three main inputs to an MRP system are the bill of materials, the master schedule,
and the inventory records file.
The probability of each occurrence at a decision tree chance node is the reciprocal of
the number of possibilities at the chance node.
A decision tree problem does not need probabilities or payoffs to generate a solution.
Utilization of a production process is the ratio of output to input.
A matrix project attempts to blend properties of functional and pure project structures.
ERP systems allow for integrated planning across the different functional areas in a
firm.
Which of the following is not an assumption of the basic fixed-order-quantity inventory
model?A. Ordering or setup costs are constant.
B. Inventory holding cost is based on average inventory.
C. Returns to scale of holding inventory are diminishing.
D. Lead time is constant.
E. Demand for the product is uniform throughout the period.
These assumptions are unrealistic, but they represent a starting point and allow us to use
a simple example:
If the best operating level of a piece of equipment is at a rate of 400 units per hour and
the actual output during an hour is 300 units, which of the following is the capacity
utilization rate?
A. 0.75
B. 1.00
C. 1.33
D. 2.33
E. 300
A process flowchart uses which of the following symbols to represent a decision point
in a flow diagram?
A. Rectangle
B. Arrow
C. Inverted triangle
D. Diamond
E. A dashed line
Which of the following is an input to the master production schedule?
A. Prototype products from product development
B. Aggregate component schedule
C. Peg reports
D. Exception reports
E. Forecasts of random demand from customers
Getting an autograph from a famous person might involve standing in which type of
queuing line structure?
A. Single channel, single phase
B. Single channel, multiphase
C. Multichannel, single phase
D. Multichannel, multiphase
E. None of these
Design for manufacturing and assembly delivers product improvements by emphasizing
which of the following?
A. Reducing product quality during the assembly process
B. Simplification of the product by reducing the number of separate parts
C. Reducing equipment in the production process
D. Designing products so they can be manufactured by a virtual factory
E. Designing products that customers will want
In order to determine the standard deviation of usage during lead time in the reorder
point formula for a fixed-order-quantity inventory model, which of the following must
be computed first?A. Standard deviation of daily demand
B. Number of standard deviations for a specific service probability
C. Stock-out cost
D. Economic order quantity
E. Safety stock level
See Equation 20.8.
The unit improvement factor for a 60 percent learning curve at 25 units is 0.0933. The
first and second timings of a person doing a job are 5 minutes and 3 minutes
respectively. Which of the following is the learning-adjusted time estimate for unit
number 25?
A. 0.4665 minute
B. 0.0933 minute
C. 4.665 minutes
D. 9.33 minutes
E. 3 minutes
A company must perform a maintenance project consisting of seven activities. The
activities, their predecessors, and their respective time estimates are presented here:
Using CPM, which activities make up the critical path?
A. A, B, D, F, G
B. A, C, E, F, G
C. A, C, B, F, E
D. A, D, E
E. None of these
If the best operating level of a piece of equipment is at a rate of 400 units per hour and
the actual output during an hour is 300 units, which of the following is the capacity
cushion?
A. 25 percent
B. 100 units per hour
C. 75 percent
D. 125 percent
E. 133 percent
Which of the following is not a basic type of process structure?
A. Product-process matrix
B. Work center
C. Manufacturing cell
D. Assembly line
E. Continuous process
In conducting aggregate operations planning, there are a number of required inputs.
Which of the following inputs are considered external to the firm?
A. Inventory levels and market demand
B. Raw material availability and competitor’s behavior
C. Current workforce and economic conditions
D. Current physical capacity and market demand
E. Subcontractor capacity and inventory levels
When implementing a lean production system, a stabilized schedule is achieved using
which of the following?
A.
B. Demand pull
C. Freeze window
D. Reduced lot sizes
E. Bottom-round management
If inventory turnover is 20 and cost of goods sold is $100,000, what is the average
aggregate inventory value? _______________________
If the best operating level of a piece of equipment is at a rate of 400 units per hour and
the actual output during an hour is 300 units, what is the capacity utilization rate?
____________________
In setting up a kanban control system, you need to determine the number of kanban
card sets needed. If the expected demand during lead time is 50 per hour, the safety
stock is 20 percent of the demand during lead time, the container size is 4, and the lead
time to replenish an order is 2 hours, what number of kanban card sets is needed?
___________________
What is a total systems approach to managing the flow of information, materials, and
services from raw material suppliers through factories and warehouses to the end
customer called?
________________________________
In making any decision that affects the size of inventory, what are the four categories of
cost that must be considered?
(1) __________________________________________
(2) __________________________________________
(3) __________________________________________
(4) __________________________________________.