Risk costs are obsolescence, damage deterioration, theft, insurance and taxes.
An increase in the desired confidence level will decrease the number of observations
necessary in a time study.
Statistical packages such as SPSS, SAS, and Minitab, are types of forecasting software.
Under ideal conditions the firm can achieve 125% of design capacity on a daily basis.
Under the lot for lot rule, order sizes are essentially determined directly from gross
requirements.
An operations strategy covers a relatively short time horizon, whereas a business
strategy covers a relatively long time horizon.
Focused factories are a factor which contributes to the success of JIT.
The constraints in an optimization model must all be of one type, for example, all ≤,
all ≥, or all =.
The most common form of models are mathematical models.
Inputs are quantities or factors that affect the situation.
Demand patterns cannot be smoothed through pricing incentives, reduced prices for
out-of-season purchases, or nonprime service times.
The degree to which an individual or group of individuals can physically and mentally
handle the job is its technical feasibility.
For a single-line, multi-server, single-phase waiting line system, where represents
the mean arrival rate of customers and represents the mean service rate for each of s
identical servers, what is the formula for the average utilization of the system?
a) /
b) / ( )
c) / s
d) s / ( )
e) / s( )
0! = _________?
a) 0
b) 1
c) undefined
d) 1
e)
What is a schematic diagram of the sequence of steps involved in an operation or
process?
a) Checklist
b) Control chart
c) Scatter diagram
d) Flow chart
e) Process chart
When did operations management emerge as a formal field of study?
a) during the late 1950s and early 1960s
b) during the late 1970s and early 1980s
c) during World War II
d) during the nineteenth century
e) during the early 1900s
Which of the following techniques loads jobs up to a predetermined capacity level?
a) finite loading
b) infinite loading
c) forward scheduling
d) backward scheduling
e) input/output control
What in Excel Solver corresponds to the objective function in the algebraic model?
a) Optimization Cell
b) Target Cell
c) Changing Cell
d) Constraint Cell
e) Parameter Cell
Which of the following concepts is linked the least with Henry Ford?
a) scientific management
b) mass production
c) mass customization
d) technology
e) interchangeable parts
The text-based formulation of an optimization problem should state what three things?
a) decision variables, random variables, and parameters
b) decision variables, objective function, and constraints
c) decision variables, random variables, and constraints
d) decision variables, random variables, and objective function
e) random variables, parameters, and objective function
Suppose that your company sells a product for which the annual demand is 10,000
units. Holding costs are $1.00 per unit per year, and setup costs are $200 per order
(a) What is the economic order quantity for your product?
(b) What is the total annual cost of ordering and holding?
(c) Now suppose that instead of purchasing the product, you decide to produce it
yourself. Assume the same demand and cost structure as above. In addition, your
average production rate would be 200 units per day, and you have 200 working days per
year. What batch size should you use?
(d) Given your answer to part c, now what is the total annual cost of ordering and
holding?
(e) What conclusions can you make regarding the impact of production rate on the
holding and ordering costs?
How many standard deviations is required for a 98% confidence level?
a) 2
b) 2.05
c) 2.17
d) 2.33
e) 2.58
A single-line, multiple-server system has _____ ______ in terms of waiting times than
the same system with a line for each server.
a) poorer performance
b) similar performance
c) better performance
d) comparable performance
e) reduced performance
Cost data
Capacity data
Demand data
Develop a level aggregate plan using inventory and back orders (data given above).
(a) What is the production rate per period?
(b) No overtime is to be used. What is the required workforce level and how many
workers are hired or fired at the beginning of period 1?
(c) What is the maximum ending inventory and when does it occur?
(d) What is the maximum amount of back orders and when does it occur?
(e) What is the total cost?
(f) What is the cost per unit?
The goal of developing an aggregate plan using composite product information is:
a) group like things together
b) reduce the number of calculations
c) keep it simple for senior management
d) help marketing plan
e) provide detail reports
Which of the following is an advantage of specialization in job design?
a) high turnover rates
b) minimal training needed
c) intrinsic satisfaction of employees
d) increased opportunity for advancement of employees
e) low scrap rates
Which of the following is not one of the standard items included in a footer?
a) file name
b) author name
c) user name
d) date
e) time
Employees of the organization who receive goods or services from others in the
company are
a) Internal customers
b) Ultimate customers
c) Downstream customers
d) Operators
e) External customers
Which of the following has the least to do with location analysis?
a) sources of transportation
b) reduction in trade barriers
c) information technology reducing need for proximity
d) retail stores locating near each other
e) automation of factories
Who invented the steam engine?
a) James Watt
b) Adam Smith
c) Eli Whitney
d) Henry Ford
e) Frederick Taylor
When is exponential smoothing equivalent to the ‘naïve’ approach to forecasting?
a) When the smoothing constant is chosen randomly
b) α = 0
c) α = 1
d) α = .5
e) When next month’s forecast equals this month’s forecast
What are the most widely used ISO standards?
a) ISO 9000, ISO 9001, and ISO 9004
b) ISO 9000, ISO 9001, and ISO 9002
c) ISO 9000, ISO 9010, and ISO 9100
d) ISO 9001, ISO 9002, and ISO 9003
e) ISO 9000, ISO 9002, and ISO 9004
All processes will have what type of variation?
a) Random
b) Assignable
c) Identifiable
d) Stochastic
e) Common
Compute the Cpk measure of process capability for the following machine and interpret
the findings. What value would you have obtained with the Cp measure?
Upper spec limit = 100 feet
Lower spec limit = 99.5 feet
Process = 99.8 feet
Process = .08 feet
Part of JIT philosophy is to design operations that are highly efficient but flexible in
order to accommodate changing ______________________.
A constraint in Excel Solver consists of what three pieces of information?
What are the two broad categories of operating systems?
How efficient was a process whose Standard output = 27 while Actual output = 24?
The number of future periods forecast is called the ____________________.
If the average range is 4.0 inches and the sample size is 18, compute the upper and
lower limits for an R chart.