Aggregation in sales and operations planning is by groups of customers on the supply
side and by product families on the demand side of the firm’s supply chain.
Answer:
A key decision point in the generic development process during “Phase 1: Concept
Development” is project approval.
Answer:
The customer arrivals in a queuing system come almost exclusively from finite
populations.
Answer:
The primary job of operations and supply strategy is to deliver the most feature-rich,
highest quality product at the lowest price within specified parameters of delivery time
and customization.
Answer:
The optimal strategy for functional products is to utilize an efficient supply-chain.
Answer:
A revenue-driven reason for outsourcing is that it can transform the organization.
Answer:
In analysis using a process flowchart of a manufacturing operation, the emphasis is
usually on identification of activities that can be minimized or eliminated.
Answer:
The local government’s willingness to invest in upgrading infrastructure to the levels
required by a company is an important issue in a company’s decision of where to locate
a new facility.
Answer:
A quality guru named Philip Crosby suggested a general approach to quality
management should involve prevention, not inspection.
Answer:
In a practical sense, an infinite queue is one that includes every possible member of the
served population.
Answer:
Process selection refers to the strategic decision of choosing the volume of output to
produce in a manufacturing facility depending upon the way that facility produces.
Answer:
Which of the following is a plant location methodology good for locating a single
facility within a set of existing facilities based in distances and volumes of goods
shipped?
A.Factor-rating systems
B.Centroid method
C.Decision trees
D.Linear programming
E.Regression analysis
Answer:
Which of the following are viewed as advantages of simulation in operations
management decision making?
A.A simulation can be used in training courses as though it were a game
B.A significant amount of computer time can be utilized running simulations
C.The technique of simulation requires innovation as it lacks a standardized approach
D.Simulation may be equally precise but less accurate than a mathematical analysis
E.Simulations are inexpensive and easy to set up and run
Answer:
Which of the following models uses a schematic model of the sequence of steps in a
problem and the conditions and consequences of each step?
A.Linear programming
B.Johnson sequencing rules
C.Decision trees
D.Venn diagrams
E.Decision mapping
Answer:
If annual demand is 35,000 units, the ordering cost is $50 per order and the holding cost
is $0.65 per unit per year, which of the following is the optimal order quantity using the
fixed-order quantity model?
A.5,060
B.2,320
C.2,133
D.2,004
E.1,866
Answer:
To reduce process throughput time you might try which of the following actions?
A.Perform activities in parallel
B.Change the sequence of activities
C.Reduce interruptions
D.Acquire additional equipment
E.All of the above
Answer:
If you are going to develop an “R” chart based on range statistics and you are using a
sample size of 9 for your charting purposes. Which of the following is the lower control
limit D3 factor for the chart?
A.0.08
B.0.14
C.0.18
D.0.22
E.0.29
Answer:
The major difference between the project and the assembly line categories of process
flow structures is which of the following?
A.The size of the product
B.Discrete parts moving from workstation to workstation
C.Highly specialized equipment
D.Being a Virtual Factory
E.The product’s volume and standardization
Answer:
A job has 5 days of processing time left to do before completion and today is the 10th
day of the month. If the job is due on the 14th day of the month, what is its critical
ratio?
A.5
B.2
C.0.8
D.0.5
E.0.1
Answer:
You must make an investment decision based on future payoffs of $10,000 per year for
each of the next ten years. Which of the following is the present value of this future
stream of payoffs using a discount rate of 5 percent?
A.$77,217
B.$67,740
C.$59,508
D.$56,800
E.$51,687
Answer:
Which of the following is one of Dr. Eli Goldratt’s rules of production scheduling for
optimized production technology?
A.If you lose an hour at a bottleneck it is better than making scrap
B.Do not balance capacity, balance the flow
C.Do not allow bottlenecks to govern the flow of the line
D.An hour saved at a bottleneck operation is a mirage
E.A the amount in a process batch should be fixed when the batch is begun and not
changed over time or along its route
Answer:
You must make an investment decision based on a payoff of $100,000 six years in the
future. Which of the following is the present value of this future payoff using a discount
rate of 8 percent?
A.$100,000
B.$87,598
C.$63,017
D.$54,045
E.$51,855
Answer:
An assumption of learning curve theory is which of the following?
A.The reduction in unit time will follow a predictable pattern
B.Unit time will decrease at an increasing rate
C.The time required to do a task will vary randomly each time the task is repeated
D.Learning will not be transferred from one worker to the next
E.Organizational learning is not included in learning curve theory
Answer:
The philosophical leaders of the quality movement, Philip Crosby, W. Edwards Deming
and Joseph M. Juran had the same general message about what it took to achieve
outstanding quality. Which of the following was not part of that message?
A.Quality is free
B.Leadership from senior management
C.Customer focus
D.Total involvement of the workforce
E.Continuous improvement
Answer:
Apply linear programming to this problem. A firm wants to determine how many units
of each of two products (products X and Y) they should produce in order to make the
most money. The profit from making a unit of product X is $190 and the profit from
making a unit of product Y is $112. The firm has a limited number of labor hours and
machine hours to apply to these products. The total labor hours per week are 3,000.
Product X takes 2 hours of labor per unit and Product Y takes 6 hours of labor per unit.
The total machine hours available are 750 per week. Product X takes 1 machine hour
per unit and Product Y takes 5 machine hours per unit. Which of the following is one of
the constraints for this linear program?
A.1 X + 5 Y =< 750
B.2 X + 6 Y => 750
C.2 X + 5 Y = 3,000
D.1 X + 3 Y =< 3,000
E.2 X + 6 Y =>3,000
Answer:
An activity-based map is which of the following?
A.A network guide to route airlines
B.A listing of activities that make up a project
C.A network that shows how a company’s strategy is delivered to customers
D.A facility layout schematic noting what is done where
E.A timeline displaying major planned events
Answer:
A small vendor has either a good day of sales with an average of $1,000 or a bad day
with an average of only $500 for the day. To simulate these outcomes, random numbers
from 00 to 99 should be assigned with the intervals determined from the frequency
distribution. If, during the last 100 days, the vendor had 27 good days and 73 bad days,
which of the following is a correct random number interval for a bad day?
A.28 to 99
B.27 to 73
C.27 to 100
D.27 to 99
E.00 to 26
Answer:
Which of the following is a partial measure of productivity?
A.Output/Materials
B.Output/(Labor + Capital + Energy)
C.Output/All resources used
D.Output/Inputs
E.All of the above
Answer:
What are four advantages of Level production that make it the backbone of JIT
production?
Answer:
What is the goal of consulting firms?
Answer:
Getting a flu shot from the one campus nurse that is on duty might involve standing in
which type of queuing line structure?
Answer:
How does the degree of customer contact relate to the kinds of skills needed by service
workers and the degree of training they require?
Answer:
What might you do in designing a two-stage process where each process had equal
average process time but with high process time variability in the first stage and low
variability in the second stage? Why?
Answer:
Assuming no safety stock, what is the re-order point (R) given an average daily demand
of 100 units and a lead time of 5 days?
Answer: