TQM is an acronym meaning “total quality measurement”.
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The least unit cost method (LUC) of lot-sizing technique adds ordering and inventory
carrying cost for each trial lot size and divides by the number of units in each lot size,
picking the lot size with the lowest unit cost.
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The Greek letter alpha is associated with consumer’s risk.
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objective function to be maximized or minimized.
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SAP AG is a major vendor of ERP software.
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Linear programming is useful when resources are unlimited.
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An assumption of learning curves is that the time required to complete a unit will
decrease at an increasing rate as the cumulative number of units completed increases.
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The Malcolm Baldrige National Quality Award represents the U. S. government’s
endorsement of quality as an essential part of successful business strategy.
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Finding the optimal way to use aircraft and their operating crews to provide
transportation services to customers to be moved between different locations is one kind
of problem that can be solved by linear programming.
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Fixed-time period inventory models generate order quantities that vary from time
period to time period, depending on the usage rate.
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Variation in production systems that is caused by factors that can be clearly identified
and possibly even managed is called assignable variation.
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Quality function deployment Âinvolves listening to customers to determine the
characteristics of a superior product.
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Leading organizations use job enrichment and sociotechnical systems to improve the
quality of jobs.
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One-hundred percent inspection is justified when the cost of inspection is low.
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The technical aspects of SAP software are a closely guarded secret.
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Poka-Yoke is roughly translated from Japanese as “Quality Management”.
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Retailers who stock up during promotion periods where the prices of goods are reduced
are doing backward buying.
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A company wants to determine where they should locate a new warehouse. They have
two existing production plants (i.e., Plant A and Plant B) that will ship units of a
product to this warehouse. Plant A is located at the (X, Y) coordinates of (50, 100) and
will have volume of shipping of 250 units a day. Plant B is located at the (X, Y)
coordinates of (150, 200) and will have a volume of shipping of 150 units a day. Using
the centroid method, which of the following are the X and Y coordinates for the new
plant location?
A.(81,117)
B.(88, 138)
C.(117,102)
D.(76,123)
E.X and Y coordinates can not be computed from the data given
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One of the reasons that decision making related to global sourcing is so very complex is
which of the following?
A.Multiple languages
B.Cultural differences
C.New currencies, like the Euro
D.Distance between materials, labor and markets
E.Powerful new markets
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Which of the following firms is not listed as a major developer of ERP software?
A.SCLogicx
B.Microsoft Corporation
C.I2Technologies
D.JDA
E.Oracle
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Which of the following forecasting methodologies is considered a qualitative
forecasting technique?
A.Simple moving average
B.Market research
C.Linear regression
D.Focus forecasting
E.Multiple regression
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Which of the following are considered current issues in operations and supply
management?
A.Developing flexible supply-chains for merged operations
B.Managing the customer’s experience during the service encounter
C.Decreasing “commoditization” of suppliers
D.Increasing operations’ responsibility for profits
E.Increasing unionization of the work force
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Which of the following is not a strategic use of the service-system design matrix?
A.Enabling systematic integration of operations and marketing strategy
B.Design of the service package
C.Comparing how other firms deliver specific services
D.Indicating evolutionary or life cycle changes that might be in order as the firm grows
E.Clarifying exactly which combination of service delivery the firm is in fact providing
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What dimension of competitiveness does quality in product design impact?
A.Engineering hours per project
B.The cost of ongoing service
C.Responsiveness to customer needs
D.Aesthetics of design
E.None of the above
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A Pareto chart as part of a six-sigma quality improvement process might be found in
which DMAIC category?
A.Define
B.Measure
C.Analyze
D.Improve
E.Control
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Which of the following is a basic type of process structure?
A.Process flow diagram
B.Product matrix
C.Process matrix
D.Workcenter
E.Manual assembly
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A company must perform a maintenance project consisting of seven activities. The
activities, their predecessors and their respective time estimates are presented below:
Using the Single Time Estimate CPM procedure, which activities make up the critical
path?
A.A, B, D, F, G
B.A, C, E, F, G
C.A, C, B, F, E
D.A, D, E
E.None of the above
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Which of the following is one of the three contrasting approaches to delivering on-site
service?
A.Airline approach
B.Self-service approach
C.Fast food approach
D.Do-it-yourself approach
E.Internet approach
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Firms keep supplies of inventory for which of the following reasons?
A.To maintain dependence of operations
B.To provide a feeling of security for the workforce
C.To meet variation in product demand
D.To hedge against wage increases
E.To protect against supplier design changes
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Which of the following is an analytical tool used in six-sigma quality improvement
programs?
A.Leadership
B.Pareto Charts
C.Management by fact
D.Continuous improvement
E.Kaizen
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Which of the following is a negative aspect to JIT compared to synchronous
manufacturing?
A.JIT can not deal with outside vendors
B.JIT needs broadly fluctuating production Levels
C.JIT does not allow very much flexibility in the products produced
D.JIT requires a great deal of workforce computational skills
E.JIT does not deal well with bottlenecks
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Which of the following is not usually found in a CIM system?
A.AGV
B.AS/RS
C.DST-II
D.CAD
E.FMS
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In essence, a queuing system includes several major components. Which of the
following is not one of them?
A.Source population
B.Servicing system
C.How the customer exits the system
D.The queue discipline
E.None of the above
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According to Little’s Law, which of the following ratios is used to find throughput time?
A.Cycle time/Process time
B.Throughput time/Process velocity
C.Process velocity/Throughput time
D.Work-in-Process/Throughput rate
E.Value added time/Process velocity
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Which of the following operations management technologies is comprised of (1) a
typical machine tool used to turn, drill or grind different types of parts; and (2) a
computer that controls the sequence of processes performed by the machine?
A.Industrial robots
B.Automated materials handling (AMH) systems
C.Numerically controlled (NC) machines
D.Computer-aided design (CAD)
E.Machine-Data Interface Protocol (MDIP)
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On a good day, Joe will sell an average of $50,000 of product. On a medium day he will
sell $25,000 and on a bad day he will sell only $10,000. Suppose you observe Joe’s
business for 100 days and, during that time, he had 15 good days, 40 medium days and
45 bad days. If you draw a random number to represent his sales for the first simulated
day and that number were 47, what kind of simulated day did Joe’s business have?
(Note: arrange the random number interval probability distribution so it starts with a
good day at 00 followed by a medium day, etc.)
A.A good day
B.A medium day
C.A bad day
D.Can not be determined
E.Between medium and bad
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Which of the following is typically listed as a benefit coming from adopting new
operations management technologies?
A.Improved housekeeping
B.Highly skilled personnel
C.Shorter cycle times
D.Larger factory
E.Smaller corporate headquarters
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Which company pioneered the production line approach to delivering on-site service?
A.Ritz-Carlton Hotel Company
B.McDonald’s Corporation
C.Prudential Insurance Company
D.Southwest Airlines
E.Citibank
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If annual demand is 50,000 units, the ordering cost is $25 per order and the holding cost
is $5 per unit per year, which of the following is the optimal order quantity using the
fixed-order quantity model?
A.909
B.707
C.634
D.500
E.141
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Assume the service rate for a queue in a truck-loading operation is 2 trucks per hour.
Using the infinite queuing notion for the models presented in the textbook which of the
following is the average service time?
A.2 hours
B.1 hour
C.0.5 hours
D.0.25 hours
E.None of the above
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To ensure good master scheduling, the master scheduler should do which of the
following?
A.Continually rework the aggregate plan
B.Be involved with customer order promising
C.Be invisible to management
D.Cover-up all problems
E.Focus on getting out product before it is needed
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A chance node on a decision tree has four possible outcomes worth $10,000, $20,000,
$30,000 and minus $100,000 respectively. The probabilities of these outcomes
occurring are assessed as 10%, 25%, 50% and 15% correspondingly. What is the
expected value of this chance node?
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What is the shadow price of a non-binding constraint? Why is this so?
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You want to determine the control lines for a “p” chart for quality control purposes. If
the total number of defects from all samples is 560, the number of samples is 70 and the
sample size is 80, what would be the standard deviation used in developing the control
lines?
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Are customer arrivals drawn from finite and infinite populations analyzed differently?
Why or why not?
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You are planning an investment in equipment that will cost $100,000 but which will
reduce labor costs by $42,000 per year. If your cost of capital is 30 percent and the
useful life of the equipment is ten years, what is the net present value of this
investment?
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Explain the difference between inventory control for finished goods in manufacturing
and in services?
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What are buyer power, potential entrants, power of suppliers, potential of substitutes
and industry rivalry?
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Using the sum-of-the-years-digits method for an asset to be depreciated over 5 years
and assuming a zero salvage value, what proportion of the asset’s value can be
depreciated in the first year?
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The mySAP Supply Chain Management (SCM) product organizes its software into
three planning scenarios that represent the basic planning needs of the organization.
What are these three planning scenarios?
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Below are the data for a Time-Cost CPM Scheduling 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 four days, what is the total time of
the project and total cost?
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