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Because service firms do not inventory their output, pure chase strategy is not
appropriate.
Labor cost and labor availability often drive the location decision in the call center
industry.
A fast-food retailer that acquired a spice manufacturer would be practicing backward
integration.
JIT brings about competitive advantage by faster response to the customer regardless of
cost.
The quality management tool called poka-yoke is not relevant to JIT systems.
Lower average inventory is feasible only if setup times are short.
The objective of maintenance and reliability is to maintain the capability of the system.
The most common tactic to arrange departments in a process-oriented layout is to
minimize material handling costs.
Managers at Arnold Palmer Hospital take quality so seriously that the hospital typically
is a national leader in several quality areas€so that continuous improvement is no longer
necessary.
Optical checkout scanners and ATMs are examples of technology's impact on services.
One of the four things needed for aggregate planning is a logical overall unit for
measuring sales and output.
Like mathematical and analytical models, simulation is restricted to using the standard
probability distributions.
Experience curves are the opposite of learning curves€as one rises, the other falls.
Learning curves are based on the premise that people and organizations become better
at their tasks as the tasks are repeated.
The EMV of a decision with three states of nature is $33,000. If the profit/value under
the states of nature A, B, and C is $10,000, $20,000, and $50,000 and states B and C
have equal probabilities, determine the likelihood of state of nature A.
Which one of the following distribution systems offers quickness and reliability when
emergency supplies are needed overseas?
A) trucking
B) railroads
C) airfreight
D) waterways
E) pipelines
When done correctly, mass customization
A) increases pressure on supply-chain performance
B) helps eliminate the guesswork that comes with sales forecasting
C) drives down inventories
D) increases pressure on scheduling
E) all of the above
PDCA, developed by Shewhart, stands for which of the following?
A) Plan-Do-Check-Act
B) Plan-Develop-Check-Accept
C) Problem-Develop Solution- Check- Act
D) Problem-Do-Continue-Act
E) none of the above
The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. Due to
higher demand, they have decided to operate three 8-hour shifts instead. They are now
able to produce 600 boxes per day. What has happened to productivity?
A) It has not changed.
B) It has increased by 37.5 boxes/hr.
C) It has increased by 20%.
D) It has decreased by 8.3%.
E) It has decreased by 9.1%.
A foundry produces circular utility access hatches (manhole covers). If 120 covers are
produced in a 10-hour shift, the productivity of the line is
A) 1.2 covers/hr
B) 2 covers/hr
C) 12 covers/hr
D) 1200 covers/hr
E) none of the above
A dental clinic at which only one dentist works is open only two days a week. During
those two days, the traffic arrivals follow a Poisson distribution with patients arriving at
the rate of three per hour. The doctor serves patients at the rate of one every 15 minutes.
a. What is the probability that the clinic is empty (except for the dentist)?
b. What is the probability that there are one or more patients in the system?
c. What is the probability that there are four patients in the system?
d. What is the probability that there are four or more patients in the system?
A disadvantage of the "few suppliers" strategy is
A) the risk of not being ready for technological change
B) the lack of cost savings for customers and suppliers
C) possible violations of the Sherman Antitrust Act
D) the high cost of changing partners
E) All of the above are disadvantages of the "few suppliers" strategy.
A toy manufacturer has three different mechanisms that can be installed in a doll that it
sells. The different mechanisms have three different setup costs (overheads) and
variable costs and, therefore, the profit from the dolls is dependent on the volume of
sales. The anticipated payoffs are as follows.
a. What is the EMV of each decision alternative?
b. Which action should be selected?
c. What is the expected value with perfect information?
d. What is the expected value of perfect information?
Quality function deployment (QFD)
A) determines what will satisfy the customer
B) translates customer desires into the target design
C) is used early in the design process
D) is used to determine where to deploy quality efforts
E) all of the above
A manufacturer of stamped metal auto parts has four parts factories in one city at the
location coordinates shown below. Each coordinate unit represents a city block (roughly
100 meters). The yearly demand at each factory is also given.
Management has decided to build a new sheet metal mill, to supply these factories, at a
location central to these plants. What should be the map coordinates of the new plant?
On the grid below, graph the locations of the four parts factories and the proposed sheet
metal mill.
Identify the responsibilities of project managers.
Define maintenance.
The textbook described four basic process models, and hinted that there are others.
Construct an example of a hybrid process. Can this process be applied in any
well-known organization? How common do you think hybrid processes are?
Identify the external product development strategies; describe each in a sentence or two.
A work cell is scheduled to build 120 digital light processor (DLP) assemblies each
week. These assemblies are later installed into home theater projection systems. The
work cell has 7.5 hours of productive work each day, six days per week. What is takt
time for this cell?
