A financially driven reason for outsourcing is that it can turn fixed costs into variable
costs.
In inventory models, high holding costs tend to favor low inventory levels and frequent
replenishment.
According to the theory of constraints, capacity is the time available for production.
Design quality in products refers to the degree to which product or service design
specifications are met.
The essential issue in satisfying customers in the make-to-stock environment is to
balance the level of finished inventory against the level of service to the customer.
You time someone completing a single task the first time at 100 minutes, and the
second time they do the task it takes 90 minutes. You should use a 90 percent learning
curve to estimate the length of time this worker will take to complete this task in the
future.
The economic order quantity (EOQ) lot-sizing technique uses the ‘square root formula”
to balance setup cost, carrying cost, and cost of stockouts.
One of the methodologies that can aid in designing a new product for customers is a
house of quality matrix.
An assumption of learning curves is that the time required to complete a unit will
decrease at a decreasing rate as the cumulative number of units completed increases.
A straight-line flow pattern is considered a good layout design for back-office service
operations.
Price-break models deal with the fact that the selling price of an item varies with the
order size.
An operational goal of total quality management is ensuring that the organization’s
systems will never produce a defective product or service.
A quality guru named Philip Crosby defined quality as fitness for use.
From an operational perspective, yield management is least effective under which of the
following circumstances?
A. Demand can be segmented by customer.
B. The product can be sold in advance.
C. Demand is highly variable.
D. Fixed costs are high, and variable costs are low.
E. Demand is stable and close to capacity.
From an operational perspective, yield management is most effective when
The assignment method is useful in solving scheduling problems that have which of the
following characteristics?
A. There are jobs to be distributed to machines or workers.
B. Each job can only be done on one particular machine.
C. Speed and efficiency are important.
D. The objective is to minimize cost and lateness of delivery.
E. The jobs have to go through more than one process.
A flowchart as part of a Six-Sigma quality improvement process might be found in
which DMAIC category?
A. Define
B. Measure
C. Analyze
D. Improve
E. Control
Quality control charts usually have a central line and upper and lower control limit
lines. Which of the following is a reason that the process being monitored with the chart
should be investigated?
A. A single plot falls above or below the control limits.
B. Behavior is normal.
C. A large number of plots are on or near the central line.
D. There is no real trend in any direction.
E. There is a change in raw materials or operators.
A process flowchart uses which of the following symbols to represent flows of material
or customers in a flow diagram?
A. Rectangle
B. Arrow
C. Inverted triangle
D. Diamond
E. A dashed line
If there are 120 total defects from 10 samples, each sample consisting of 10 individual
items in a production process, which of the following is the fraction defective that can
be used in a -chart for quality control purposes?
A. 120
B. 10
C. 8
D. 1.2
E. 0.8
The 50th repetition of a job is timed at 100 minutes. If the learning curve for this job is
90 percent, what is the estimated time for the 200th repetition of this job?
A. 44.69 minutes
B. 81 minutes
C. 90 minutes
D. 100 minutes
E. 110 minutes
One of the principles of reengineering is which of the following?
A. Ensure quality at the source.
B. Have those who use the output of a process perform the process.
C. Do not select suppliers on the basis of price alone.
D. Leverage high-cost employees with lower-cost employees.
E. Downsize your headcount while outsourcing nonessential activities.
Which of the following is considered a primary report in an MRP system?
A. Planned order schedule
B. Peg report
C. Planning report
D. Inventory accuracy report
E. Aggregate production plan report
Buying food at a large food store with multiple checkout counters 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
Which of the following files allows us to retrace a material requirement upward in the
product structure through each level, identifying each parent item that created the
demand?
A. Planning bill of materials file
B. Modular bill of materials file
C. Super bill of materials file
D. Exception report file
E. Peg record file
Which of the following is not a data-gathering tool from the operations consulting tool
kit?
A. Plant tours/audits
B. Work sampling
C. Flowcharts
D. Factory blueprints
E. Organization charts
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. Net profit
B. Throughput
C. Return on investment
D. Sales
E. Direct labor hours
Is office layout more akin to retail service layout or to manufacturing layout? Explain
your answer.
What is the planned-order release using an MRP program if the gross requirement is
1,600 and the inventory on hand is 600? ______________________________
Doing something at the lowest possible cost is called: _______________.
____________________________ is a term that refers to delivering hosted ERP
services over the Internet. This can significantly reduce the cost of ERP.
Which quality guru states that the correct cost for a well-run quality management
program should be under 2.5 percent of sales? _________________________________
A single toll booth on a one-lane bridge is which type of queuing system line structure?
Name the two measures of sourcing efficiency.
(1) _______________________
(2) _______________________
What are the five categories of supply chain processes?
1. ___________________
2. ___________________
3. ___________________
4. ___________________
5. ___________________
In the service-system design matrix, what kind of production efficiency is expected
from a service encounter designed to be “face-to-face loose specs”?
______________________________________