Distribution resource planning (DRP) is
A) a transportation plan to ship materials to warehouses
B) a time-phased stock replenishment plan for all levels of a distribution network
C) a shipping plan from a central warehouse to retail warehouses
D) material requirements planning with feedback loop from distribution centers
E) a material requirements planning package used exclusively by warehouses
Which of the following is not an analytical target of methods analysis?
A) movement of capital
B) body movement
C) movement of individuals
D) movement of materials
E) crew activity
Capacity planning in closed-loop MRP
A) utilizes feedback about workload from each work center
B) may make use of resource requirements profiles (load reports)
C) may smooth work center loads with such tactics as overlapping and lot splitting
D) does not add capacity, but rather seeks effective use of existing capacity
E) All of the above are true.
What combination of x and y will yield the optimum for this problem?
Minimize $3x + $15y, subject to (1) 2x + 4y =< 12 and (2) 5x + 2y =< 10 and (3) x, y
>= 0.
A) x = 2, y = 0
B) x = 0, y = 3
C) x = 0, y = 0
D) x = 1, y = 5
E) none of the above
What term is used to describe the outsourcing of logistics?
A) E-Logistics
B) Shipper Managed Inventory (SMI)
C) Hollow Logistics
D) Sub-Logistics
E) Third-Party Logistics
A do-it-yourself homeowner is installing a new toilet. While installing the toilet he must
decide on what kind of connecting pipe he will install to the water supply. There are
two available options, one that has a shut-off valve in case of a leak and a cheaper one
without the shut-off valve. Suppose that the shut-off valve pipe costs an extra ten
dollars and that the homeowner must buy one of the two.
a. Draw a decision tree for this scenario, labeling the cost of a leak as X and the chance
of a leak as P.
b. If the chance of a leak causing household damage is 1%, at what $ amount of
household damage is the owner neutral on which pipe to buy?
c. If the cost of a leak would be $10,000 what is the maximum % chance to leak at
which the homeowner would prefer to buy the cheaper pipe?
d. If the cost of a leak is $1,000 and the chance to flood .1% which pipe should the
homeowner buy?
A seasonal index for a monthly series is about to be calculated on the basis of three
years’ accumulation of data. The three previous July values were 110, 135, and 130. The
average over all months is 160. The approximate seasonal index for July is:
Which layout’s main objective is to equalize the task time for each station?
A) work cell
B) fixed position
C) process oriented
D) job shop
E) product oriented
Shewhart’s contributions to operations management came during the Scientific
Management Era.
A common method used to increase capacity with a lag strategy is
A) overtime
B) subcontractors
C) new facilities
D) new machinery
E) A and B
Which of these layouts is most suitable for processing sugar from sugar beets or sugar
cane?
A) process-oriented layout
B) fixed-position layout
C) warehouse layout
D) product-oriented layout
E) work cell layout
A manufacturing plant is considering outsourcing its production of tires. There are 5
risk areas in which the decision will be based. The current plant had scores of 1, 2, 4, 8,
2 while the outsourced plant had scores of 3, 2, 4, 2, 5. What is the current plant’s score
if high scores indicate low risk and an unweighted factor method is applied?
A) 14
B) 15
C) 16
D) 17
E) none of the above
In a minimization problem, a negative improvement index in a cell indicates that the
A) solution is optimal
B) total cost will increase if units are reallocated to that cell
C) current iteration is worse than the previous one
D) total cost will decrease if units are reallocated to that cell
E) problem has no feasible solution
Which of the following is a location analysis technique typically employed by a service
organization?
A) purchasing power analysis
B) linear programming
C) queuing theory
D) crossover charts
E) cost-volume analysis
Activity R on a CPM network has predecessors M and N, and has successor S. R has
duration 5. N’s late finish is 18, while M’s is 20. S’s late start is 14. Which of the
following is definitely true?
A) R is critical and has zero slack.
B) R has no slack but is not critical.
C) The set of given times cannot all be possible.
D) N is a critical activity.
E) S is a critical activity.
The bill of material contains information necessary to
A) place an order to replenish the item
B) calculate quantities on hand and on order
C) convert net requirements into higher level gross requirements
D) convert gross requirements into net requirements
E) convert (explode) net requirements at one level into gross requirements at the next
level
Which of the following regarding enterprise resource planning (ERP) is true?
A) It involves an ongoing process for implementation.
B) It can incorporate improved, reengineered “best processes.”
C) It has a software database that is off-the-shelf coding.
D) ERP systems usually include MRP, financial and human resource information.
E) All of the above are true.
The usual purpose of an R-chart is to signal whether there has been a
A) gain or loss in dispersion
B) change in the percent defective in a sample
C) change in the central tendency of the process output
D) change in the number of defects in a sample
E) none of the above
Which of the international operations strategies uses the existing domestic model
globally?
A) international strategy
B) global strategy
C) transnational strategy
D) multidomestic strategy
E) none of the above
Which of the following statements is true regarding the leverage of supply-chain
savings?
A) Supply chain leverage is about the same for all industries.
B) Supply chain savings exert more leverage as the firm’s purchases are a smaller
percent of sales.
C) Supply chain savings exert more leverage as the firm has a lower net profit margin.
D) Supply chain leverage depends only upon the percent of sales spent in the supply
chain.
E) None of the above is true.
Consider the arrival of patients into a public health clinic. Some patients are ill; some
are injured; some are elderly; and some are very young. Some cases may be
life-threatening, while others are inconsequential. How do the basic dispatch rules fall
short in this situation? Design a dispatch rule for scheduling these patients.
Consider the following bill of material. Fifty units of Product A are needed. Assuming
no on-hand inventory, explode the bill of material.
A finite population waiting line model with a single server has an average service time
T of 200 minutes and an average time between service requirements U of 300 minutes.
Calculate the service factor X. If the population consists of 5 elements, what are the
average number waiting, the average number being serviced, and the average number
running? Refer to Table D.8.
A(n) __________ is a graphical means of analyzing decision alternatives and states of
nature.
What conditions make yield management of interest?
What kinds of location decisions are appropriate for use of crossover analysis? Write a
brief paragraph explaining how crossover analysis (break-even analysis) can assist an
operations manager choose among alternative sites in making a location decision.
Define variable costs. What special assumption is made about variable costs in the
textbook?
A manufacturing plant is trying to determine standard production per day for an
incentive program. Suppose that the incentive program will pay $1 per unit produced
above standard rates. A worker is timed at 280 seconds per unit, with a performance
rating of 105%. The plant has an allowance factor of 13%. If he produces 100 units in
an 8 hour shift, how much would he receive under the incentive plan?
Describe the advantages and limitations of the graphical method of aggregate planning.
Weekly usage of a product is 8 units. Since the plant operates 50 weeks per year, this
leads to annual usage of 400 units. Setup cost is $40 and annualized carrying cost is
$80. Weekly production of this product is 12 units. Lead time is four weeks, and safety
stock is one week’s production. What is optimal kanban size? What is the optimal
number of kanbans?