Aggregate planning, master production scheduling, and rough-cut capacity affect a
select area of the organization.
Sensitivity reports show what will happen if certain problem parameters are changed
from their current values.
If OT = the mean observed time, PRF = the performance rating factor, F = the
frequency of occurrence, and PFD = the percentage allowance adjustment based on job
time, the formula to compute the standard time is (OT)(PRF)(F)(1 + PFD).
An advantage of using predetermined time data is that you can calculate standard times
before the job begins.
Firms that focus on quality as their primary competitive priority usually implement
either product design quality or process quality, but not both.
Makespan is a measure of WIP.
Management science focuses on developing quantitative techniques for solving
operations problems.
Marketing can meet the customer needs if they understand what operations can
produce.
Customers in a grocery store would be considered a finite customer population.
Just-in-time organizations rely on employees to work together.
For the Goal Seek feature in Excel, it doesn’t matter whether you use absolute or
relative references.
In a service organization, a doctor’s office is a good example of finite loading.
The standard time is the time it should take a qualified operator, working at a
sustainable pace and using the appropriate tools and process, to do the job.
Service organizations can also benefit from supply chain management.
Long-term capacity requirements are identified on the basis of forecasts of future labor
market supplies.
Manufacturing’s cost efficiency is not affected by inventory decisions.
An end item has no parents.
Giving workers responsibility for seeking out quality problems and correcting them is
a) Continuous improvement
b) Passing the buck
c) Brainstorming
d) Employee empowerment
e) Employee involvement
Which of the following sequencing rules is used for minimizing makespan in a
two-stage, unidirectional process?
a) FCFS
b) S/RO
c) SPT
d) CR
e) Johnson’s rule
What process width is typically used when computing the process capability index Cp?
a) 1
b) 2
c) 3
d) 4
e) 6
Evaluating an aggregate plan in terms of number of back orders is using what
perspective?
a) cost
b) customer service
c) quality
d) operations
e) human resources
Gross requirements for finished products are taken from ________________________.
a) the inventory records file
b) the order entry file
c) the authorized MPS
d) the bill of materials file
e) forecasted sales
JIT manufacturing cannot succeed if __________costs are too high.
a) Variable
b) Fixed
c) Set-up
d) Depreciation
e) Marginal
The formula for calculating safety stock when an estimate of demand during lead time
and its standard deviation are known is?
a) SS = lead time * standard deviation
b) SS = lead time * z
c) SS = z* standard deviation
d) SS = z*σdl
e) SS = σdl* mean
Suppose that you are using the naïve forecasting method with trend to forecast sales.
If sales have been increasing by 40% per month, and this month’s sales amounted to
$1200, what would your forecast be for next month?
a) $1200
b) $ 480
c) $1680
d) $ 720
e) $1600
Establishing a performance factor is an attempt to:
a) fudge the actual times.
b) punish the worker who does not perform fast enough.
c) counterbalance any unusual patterns noted.
d) allow management to ‘˜encourage’ greater productivity.
e) use the ISO 9000 approval process.
What is the formula for inventory turnover?
a) annual cost of goods sold / average inventory in dollars
b) annual sales / average inventory in dollars
c) average inventory in dollars / annual cost of goods sold
d) average inventory in dollars / annual sales
e) annual cost of goods sold / annual holding cost
For a cause-and-effect diagram, causes could be related to all of the following except
a) Analysis
b) Materials
c) Measurements
d) Machines
e) Workers
Given the following data:
(a) What are the workloads for periods 3 and 4?
(b) There are 168 hours of operating time per machine each period. How many
machines should be operated for periods 3 and 4?
What is the relationship between Cpand Cpk?
a) Cp ‚ 2 Cpk
b) Cp ‚ Cpk
c) Cp ‚ Cpk
d) Cp ‚ 2Cpk
e) Cp ‚ Cpk ‚ 3
What is a graph that shows the probability or chance of accepting a lot given various
proportions of defects in the lot?
a) S curve
b) Z-chart
c) OC curve
d) p-chart
e) R-chart
A positive quantity in the current period’s planned order row means that
___________________.
a) lead time is too long
b) the projected available is negative
c) gross requirements are too large
d) the planned order is due to be completed in the current period
e) an order must be released
Today’s business must think in terms of:
a) regional trade zones
b) the EPA
c) the U.S. Defense Department
d) the global market place
e) the curved world
Which of the following is more like a product layout as compared to a process layout?
a) Resources used are general purpose.
b) Facilities are less capital intensive.
c) Products cannot be easily added or deleted from the existing product line.
d) Space requirements for inventory storage are higher.
e) Scheduling resources is less challenging.
An organization’s supply chain is facilitated by:
a) dedicated people
b) an information system
c) specific vendors
d) specific customers
e) government regulations
In Excel, ___________________ references do not change when you copy them.
a) absolute
b) comparative
c) analogous
d) relative
e) correlative
What term refers to the working relationship between partners?
a) Impact
b) Vision
c) Familiarity
d) Intimacy
e) Proximity
One of the first things you must do in developing a model is:
a) select the correct modeling software.
b) consult a transformation text book.
c) determine the formulas that are required.
d) define the logic necessary to transform the inputs into the outputs.
e) backwards calculate what inputs are required for the defined inputs.
Consider a workstation that can process 4 units per minute. It takes 2 hours to receive
an order from the previous station. The container size is 10 units. The factory sets safety
stock at 20 percent of demand during lead time. How many kanbans are needed for the
workstation?
a) 57.6
b) 48
c) 0.96
d) 9.6
e) 28.8
Intermittent operations group their resources based on
a) requirements of the product
b) similar operations or functions
c) shape of the shop floor
d) abilities of the labor force
e) the number of machines
Two sizes are being considered for a new facility, medium and large. Discuss best
operating level in this context.
Tom’s tire shop annual demand is 1,460 tires and they are capable of producing 2,920
tires per year per shift. Tom’s production manager plans to order 12 tires at a time. What
is the maximum inventory level?
What are the three reports available when Solver has successfully found an optimal
solution?
Aalogistics Co. has just signed a contract to deliver products to three locations, and they
are trying to decide where to put their new warehouse. The three delivery locations are
Chicago, Kansas City, and Memphis. The x, y coordinates for the delivery locations are
as follows:
The total quantity to be delivered to each destination is: 400 to Chicago, 150 to Kansas
City, and 100 to Memphis. Calculate the location of the new warehouse using the
Center of Gravity approach.
Describe a data pattern with seasonality.
Insourcing incurs a periodic fixed cost of $10,000 and a $0.50 variable cost.
Outsourcing incurs a periodic cost of $6000 and a $0.90 variable cost. Over what
ranges of demand is each option best?