Cross-docking is a practice used in the international shipping industry that facilitates
port utilization.
The operations plan should not be updated but should be followed precisely until the
longest-term planning horizon has passed.
Economies of scale and the learning curve have opposite effects on capacity.
The volume requirements for the product are one determinant of the choice of which
process structure to select.
Although planning involves determining how the various supply chain processes
(sourcing, making, delivering, and returning) will be met, planning itself is not
considered a supply chain process.
Readmission rate would be reported on the clinical performance dashboard.
MRP is based on dependent demand.
Learning curves have a wide range of business applications.
Automation is a key to lean procurement.
Because of statistical fluctuation (processing times vary around an average processing
time), dependent sequences can operate without any inventory between workstations.
You are a consultant specializing in estimating the costs after the employees learn how
to do a job more efficiently by repetition. Your client can produce a product the first
time at a cost of $2,500. If their 65 percent learning curve allows them to reduce their
costs on each product, what is the total cost of producing 400 units of the new product?
A. $100,000
B. $78,900
C. $58,600
D. $45,765
E. $37,850
Which of the following is the percentage of observations you would expect to see lying
within a plus or minus 3 MAD range?
A. 57.05 percent
B. 88.95 percent
C. 98.36 percent
D. 99.85 percent
E. 100 percent
An assumption of learning curve theory is which of the following?
A. Unit time will decrease at a decreasing rate.
B. Unit time will increase at a decreasing rate.
C. Unit time will decrease at an increasing rate.
D. Unit time will increase at an increasing rate.
E. Unit time will hold constant.
Buying a ticket for a college football game where there are multiple windows at which
to buy the ticket features which type of queuing system line structure?
A. Single channel, single phase
B. Single channel, multiphase
C. Multichannel, single phase
D. Multichannel, multiphase
E. None of these
A project starts out as which of the following?
A. A statement of work
B. Critical path method (CPM)
C. A series of milestones
D. A Gantt chart
E. A latest-start-time estimate
According to the theory of constraints, which of the following is an operational
measurement that can be used to measure the firm’s ability to make money?
A. Inventory
B. Sales
C. Operating revenue
D. Unit cost
E. Overhead per unit
Which of the following forecasting methods is very dependent on selection of the right
individuals who will judgmentally be used to actually generate the forecast?
A. Time series analysis
B. Simple moving average
C. Weighted moving average
D. Delphi method
E. Panel consensus
Which of the following is a not criterion that influences manufacturing plant or
warehouse facility location decisions?
A. Suppliers
B. Free trade zones
C. Political risk
D. Gross national product
E. Tariffs and customs duties
Applicants for the Baldrige Award for total quality management must submit an
application of up to 50 pages that details the processes and results of their activities
under seven major categories. Which of the following is one of those categories?
A. DMAIC
B. Analysis and remember management
C. Standardization
D. Control
E. Inspection protocols
Capacity planning involving consideration of production scheduling and inventory
position is characterized by which one of the following time durations?
A. Intermediate range
B. Long range
C. Short range
D. Current
E. Upcoming
If the average aggregate inventory value is $1,200,000 and the cost of goods sold is
$600,000, which of the following is weeks of supply?
A. 1,040
B. 606
C. 104
D. 60.6
E. 2.0
When considering outsourcing, what should firms be sure to avoid?
A. Losing control of noncore activities that don’t distinguish the firm
B. Allowing outsourcing to develop into a substitute for innovation
C. Giving the outsourcing partner opportunities to become a strong competitor
D. Allowing employees transferred to the outsourcing partner to rejoin the firm
E. Adverse corporate tax implications of asset transfers to the outsourcing partner
Cross-docking is an approach used in consolidation warehouses, where large shipments
are broken down into small shipments for local delivery in an area.
Sensitivity analysis of the base-case financial model is a useful tool for which of the
following reasons?
A. To determine how long the development process can profitably last
B. To understand how many technical people are needed to make the project a success
C. To help understand the basic trade-offs of resources committed and cash received
D. To identify the necessary product launch date
E. To set marketing and sales budgets
An assumption of learning curve theory is which of the following?
A. The reduction in unit time will follow a predictable pattern.
B. Unit time will decrease at an increasing rate.
C. The time required to do a task will vary randomly each time the task is repeated.
D. Learning will not be transferred from one worker to the next.
E. Organizational learning is not included in learning theory.
Which of the following might be a status and exception report used in shop-floor
control?
A. Absentee report
B. Quality failure report
C. Shortage lists
D. Expediting report
E. Union activity report
A company wants to determine its reorder point (R). Demand is variable and the
company wants to build a safety stock into R. If the average daily demand is 12, the
lead time is 5 days, the desired z value is 1.96, and the standard deviation of usage
during lead time is 3, which of the following is the desired value of R?A. About 6
B. About 16
C. About 61
D. About 66
E. About 79
Equation 20.5 is (Average daily demand x Number of days of lead time) + (Standard
deviation during lead time) x (Desired z score) =
(12
Which of the following is a dimension of design quality?
A. Aesthetics
B. Price
C. Quality at the source
D. Distribution
E. Leadership
In business forecasting, what is usually considered a long-term time period?
A. Three months or longer
B. Six months or longer
C. One year or longer
D. Two years or longer
E. Ten years or longer
When deciding to add capacity to a factory, which of the following need not be
considered?
A. Maintaining system balance
B. The frequency of capacity additions
C. Use of external capacity
D. Immediate product demand
E. Availability of raw materials
Using the cut-and-try method for aggregate operations planning, we can determine the
production requirement in units of product. If beginning inventory is 4,000 units, the
demand forecast is 2,900 units, and the required safety stock is 10 percent of the
demand forecast, what is the production requirement?
________________________________
What is a criterion or product characteristic that differentiates a product from the
products of competitors in a way meaningful to the market called?
____________________
What are the five steps of CPFR (collaborative planning, forecasting, and
replenishment)?
(1) ______________________________
(2) ______________________________
(3) ______________________________
(4) ______________________________
(5) ______________________________
How many rules make up Goldratt’s “rules of production scheduling?”
___________________________________.
What are the three characteristics of a core competency?
1. _____________________________
2. _____________________________
3. _____________________________