“Informating” ordinary workers means using electronic methods to give them
instructions.
Answer:
The fixed-order quantity inventory model is more appropriate for important items such
as critical repair parts because there is closer monitoring and therefore quicker response
to a potential stockout.
Answer:
Supply chain thinking can not be applied to many services as services can not be
inventoried.
Answer:
Variable cost per unit is constant regardless of the Level of output.
Answer:
The payback method ranks investments according to the time required for each
investment to return earnings equal to the cost of the investment.
Answer:
The choice of which process structure to select is generally a function of the volume
requirements for the product.
Answer:
Calculating the early start and early finish times for each activity in a CPM analysis
does not provide any useful information.
Answer:
It is difficult to separate the operations management functions from marketing in
services.
Answer:
Yield management is the process of allocating the right type of capacity to the right type
of customer at the right prices at the right time to maximize revenue or yield.
Answer:
In the textbook the expression “quality at the source” means that we need to purchase
the best quality a supplier or vendor can provide.
Answer:
Capacity flexibility means having the ability to rapidly increase or decrease production
levels or to shift production capacity quickly from one product or service to another.
Answer:
A characteristic of a well designed service system is that it manages the evidence of
service quality in such a way that customers are aware of the value of the service
provided.
Answer:
A service business is an organization whose primary business requires interaction with
customers to produce the service.
Answer:
The assignment method of job sequencing is a special case of the transportation method
of linear programming.
Answer:
Acceptance sampling is performed on goods that already exist to determine what
percentage of items conforms to specifications.
Answer:
The term “heijunka” means “misfit” in Japanese. In a manufacturing context it refers to
highly variable demands on a manufacturing facility that lead to cycles of overtime and
layoffs.
Answer:
Linear programming can be used to assist aggregate operations planning if the cost and
variable relationships are linear and demand can be treated as certain or deterministic.
Answer:
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.Inventory
B.Sales
C.Operating revenue
D.Unit cost
E.Overhead per unit
Answer:
Which of the following is an assumption of the basic fixed-order quantity inventory
model?
A.Lead times are averaged
B.Ordering costs are variable
C.Price per unit of product is constant
D.Back orders are allowed
E.Stock-out costs are high
Answer:
Which of the following is a lean production technique that is not reported in the
textbook to have been successfully applied in service firms?
A.Organize problem-solving groups
B.Upgrade housekeeping
C.Upgrade quality
D.Freeze windows
E.Eliminate unnecessary activities
Answer:
Which of the following methodologies is used to verify that production and warehouse
facilities, equipment and labor are available when needed?
A.Rough-cut capacity planning
B.Materials requirement planning
C.Capacity requirements planning
D.Order scheduling
E.Process planning
Answer:
If the arrival rate for loading trucks is 5 trucks per hour, what is the mean time between
arrivals?
A.5 hours
B.2.5 hours
C.0.2 hours
D.0.1 hours
E.None of the above
Answer:
Which of the following priority rules used in scheduling the sequence of production is
calculated as the time remaining before the due date minus the remaining processing
time, with the smallest value being run first?
A.STR
B.CR
C.SOT
D.LCFS
E.EDD
Answer:
A company wants to forecast demand using the weighted moving average. If the
company uses two prior yearly sales values (i.e., year 2007 = 110 and year 2008 = 130)
and we want to weight year 2007 at 10% and year 2008 at 90%, which of the following
is the weighted moving average forecast for year 2009?
A.120
B.128
C.133
D.138
E.142
Answer:
Which of the following is the set of all cost components that make up the fixed-order
quantity total cost (TC) function?
A.Annual purchasing cost, annual ordering cost, fixed cost
B.Annual holding cost, annual ordering cost, unit cost
C.Annual holding cost, annual ordering cost, annual purchasing cost
D.Annual lead time cost, annual holding cost, annual purchasing cost
E.Annual unit cost, annual set up cost, annual purchasing cost
Answer:
Which of the following depreciation methods attempts to gear depreciation charges to
actual use and thereby coordinate expense charges with productive output more
accurately?
A.Straight-line
B.Declining-balance
C.Sum of Years’ Digits
D.Depreciation-by-use
E.All of the above
Answer:
The SAP sales and distribution modules do not include which of the following?
A.Export controls
B.Rebate processing
C.Transportation management
D.Advertising placement
E.Billing
Answer:
Which of the following is a way of dealing with a validation problem when the
computer simulation yields results that you suspect are incorrect?
A.Run the computer program again with more or fewer iterations
B.Simulate present conditions and compare results with the existing system
C.Approach the problem with a mathematical model instead
D.Use a different simulation model to try to verify the mistakes
E.Adjust the parameters of the simulation until you get the results you expected
Answer:
In making any decision that affects inventory size, which of the following costs do not
need to be considered?
A.Holding costs
B.Setup costs
C.Ordering costs
D.Fixed costs
E.Shortage costs
Answer:
If the pessimistic duration of an activity is 24, the most likely duration is 15 and the
optimistic duration is 6, what is the variance for the activity time when using CPM
analysis?
A.6
B.8.333
C.9
D.10.4
E.12
Answer:
For a low-volume job shop type of manufacturing which of the following is the typical
production scheduling approach?
A.Finite forward scheduling
B.Finite backward scheduling
C.Infinite backward scheduling
D.Infinite forward scheduling
E.Soonest due date
Answer:
Which of the following is a tool of shop-floor control?
A.The hours worked per employee report
B.The anticipated delay report
C.The permanent work-in-process report
D.Time and motion studies
E.Product and process control report
Answer:
Which of the following is considered a high-contact service operation?
A.On-line brokerage house
B.Internet sales for a department store
C.Physician practice
D.Telephone life insurance sales and service
E.Automobile repair
Answer:
A company hires you to develop a linear regression forecasting model. Based on the
company’s historical sales information, you determine the intercept value of the model
to be 1,200. You also find the slope value is -50. If after developing the model you are
given a value of X = 10, which of the following is the resulting forecast value using this
model?
A.’“3,800
B.700
C.1,700
D.1,040
E.12,000
Answer:
Below are the data for a Time-Cost CPM Scheduling model analysis. The time is in
days and the costs include both direct and indirect costs.
If you crash this project to reduce the total time by one day what is the total time of the
project and total cost?
A.Total time is 13 days, total cost is $1,500
B.Total time is 12 days, total cost is $2,000
C.Total time is 12 days, total cost is $2,300
D.Total time is 11 days, total cost is $1,850
E.Total time is 11 days, total cost is $2,350
Answer:
Which of the following is a capability of MRP systems that improves operations
planning and control?
A.MRP indicates when to de-expedite as well as expedite orders
B.MRP systems consume many reams of paper thereby justifying quantity purchases
C.Once entered; a production order can’t be changed, enforcing discipline on sales
D.MRP can anticipate returns of defective product
E.MRP allows manufacturing to operate in a pure, isolated environment
Answer:
The probability associated with accepting a low quality lot is denoted in acceptance
sampling with the Greek letter alpha.
Answer:
Which of the following is not a reason that time standards are necessary?
A.To allocate capacity
B.To provide an objective basis for measuring worker performance
C.To evaluate performance on existing contracts
D.To focus the supervisor on performance improvement
E.To provide benchmarks for improvement
Answer:
The SAP human resources modules do not include which of the following?
A.Retirement plan funds administration
B.Travel expense accounting
C.Workforce planning
D.Payroll
E.Time management
Answer:
You would like to use the fixed-time period inventory model to compute the desired
order quantity for a company. You know that vendor lead time is 10 days and the
number of days between reviews is 15. Which of the following is the standard deviation
of demand over the review and lead time period if the standard deviation of daily
demand is 10?
A.25
B.40
C.50
D.73
E.100
Answer:
Which of the following is a data analysis and solution development tool from the
operations consulting tool kit?
A.Bottleneck analysis
B.Employee surveys
C.Gap analysis
D.Balanced scorecard
E.Responsibility charts
Answer:
In Supplement A on financial analysis, investment decisions in operations are grouped
into six general categories. Which of the following is one of the six general categories?
A.Make-or-buy decisions
B.Make-or-lease decisions
C.Using overtime to increase output
D.Adopting activity-based-costing
E.Pricing decisions
Answer:
What is the difference between finite and infinite loading?
Answer:
If the fraction defective is 0.4 based on a sample size of 100, what is the standard
deviation used in constructing the “p” chart?
Answer:
What is the name for demand caused by the demand for a higher Level item?
Answer:
What are the five guidelines for implementing a lean supply chain presented by
Womack and Jones, in their book Lean Thinking?
Answer:
What are the two “hidden costs” that are often overlooked in determining the total cost
of a facility location decision?
Answer:
What is the role of judgment in simulation?
Answer:
If annual demand is 8,000 units, the ordering cost is $20 per order and the holding cost
is $12.50 per unit per year, what is the optimal order quantity using the fixed-order
quantity inventory model?
Answer: