Activity-based costing is sometimes referred to as transaction costing.
Answer:
One of the assumptions made using CPM is that project activities can be identified with
clear beginning and ending points.
Answer:
A key use of a customer survey used in operations consulting phase of problem
definition is customer loyalty analysis.
Answer:
Extensive use of temporary workers can have an effect on job design.
Answer:
Uniform loading is where you schedule production with different amounts of the same
product each day of the week to permit variation to meet changing demand
requirements.
Answer:
In a rapid plant assessment tour a study team of consultants can determine the
“leanness” of a plant in 30 minutes.
Answer:
Simulation is used in manufacturing management to determine production schedules,
inventory Levels and to do capacity planning.
Answer:
The capability index (Cpk) calculates the percentage of items being produced within
specifications.
Answer:
An operations and supply strategy involves decisions that relate to the design of a
process and the infrastructure needed to support the process.
Answer:
In the generic product development process, collecting customer needs is accomplished
during phase 0 (planning).
Answer:
An infinite population in waiting line management refers to a population that is large
enough in relation to the service system so that the population size caused by
subtraction or additions to the population does not significantly affect the system
probabilities.
Answer:
The work breakdown structure (WBS) defines a hierarchy of project tasks, subtasks and
work packages.
Answer:
Because the text states that “at the most fundamental level, operations and supply
management is about getting work done quickly, efficiently, without error and at low
cost” there is little in the field of operations management that relates to overall
corporate strategy.
Answer:
An enterprise resource planning system, when implemented correctly, links most of the
areas of a business together.
Answer:
Focus forecasting is an approach to forecasting that tries several rules that seem logical
and easy to understand to project past data into the future.
Answer:
Service guarantees can be used at the service design stage to focus the firm’s delivery
system on the things it must do well to satisfy the customer.
Answer:
Governmental barriers to enter and locate in many countries are increasing through
restrictive protectionist legislation.
Answer:
A company has recorded the last five days of daily demand on their only product. Those
values are 120, 125, 124, 128 and 133. The time from when an order is placed to when
it arrives at the company from its vendor is 5 days. Assuming the basic fixed-order
quantity inventory model fits this situation and no safety stock is needed, which of the
following is the reorder point (R)?
A.120
B.126
C.630
D.950
E.1,200
Answer:
Which of the following is an example of a robotic end effector?
A.The date when the robot is fully depreciated
B.A tool such as a wrench
C.The obsolescence of the robot through newer technology
D.A physical barrier that prevents the robot from damage
E.The human responsible for “training” the robot
Answer:
In conducting aggregate operations planning there are a number of required inputs.
Which of the following are inputs considered external to the firm?
A.Inventory Levels and market demand
B.Raw material availability and competitor’s behavior
C.Current workforce and economic conditions
D.Current physical capacity and market demand
E.Subcontractor capacity and inventory Levels
Answer:
You must make an investment decision based on a payoff of $50,000 ten years in the
future. Which of the following is the present value of this future payoff using a discount
rate of 16 percent?
A.$34,000
B.$22,729
C.$19,578
D.$14,244
E.$11,334
Answer:
Apply linear programming to this problem. A firm wants to determine how many units
of each of two products (products D and E) they should produce to make the most
money. The profit in the manufacture of a unit of product D is $100 and the profit in the
manufacture of a unit of product E is $87. The firm is limited by its total available labor
hours and total available machine hours. The total labor hours per week are 4,000.
Product D takes 5 hours per unit of labor and product E takes 7 hours per unit. The total
machine hours are 5,000 per week. Product D takes 9 hours per unit of machine time
and product E takes 3 hours per unit. Which of the following is one of the constraints
for this linear program?
A.5 D + 7 E =< 5,000
B.9 D + 3 E => 4,000
C.5 D + 7 E = 4,000
D.5 D + 9 E =< 5,000
E.9 D + 3 E =< 5,000
Answer:
A flow 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
Answer:
Which of the following is a not criterion that influences manufacturing plant or
warehouse facility location decisions?
A.Suppliers
B.Free trade zones
C.Political risk
D.Gross national product
E.Tariffs and customs duties
Answer:
Which of the following is not a function performed in scheduling and controlling an
operation?
A.Allocating orders and equipment
B.Setting priorities and sequencing jobs
C.Allocating personnel to work centers
D.Expediting late orders
E.Reporting bottleneck operations
Answer:
Which of the following is a major reason that some MRP systems fail?
A.Lack of top management understanding and commitment
B.Failure to properly install the MRP software
C.Using an underpowered computer
D.Technical incompetence in manufacturing
E.Vendors or customers using JIT systems
Answer:
Which of the following is the stage in the operations consulting process that
immediately follows present final report?
A.Design, develop and test alternative solutions
B.Develop systematic performance measures
C.Present invoice
D.Assure client satisfaction
E.Implement changes
Answer:
In Supplement A on financial analysis, investment decisions in operations are grouped
into six general categories. Which of the following is not one of the six general
categories?
A.The purchase of new equipment decisions
B.The purchase of new facilities decisions
C.Investing cash in short-term securities
D.Addition of a product or product line decisions
E.Lease-or-buy decisions
Answer:
Which of the following is not one of the desirable features of simulation software listed
in the textbook?
A.Being capable of being used interactively
B.Being a complete and accurate model of reality
C.Having building blocks with built-in commands
D.Allow modules to be built and then connected
E.Allow users to write and incorporate their own routines
Answer:
Consumer electronics is an example of a product developed in which variant of the
generic product development process?
A.Technology-push products
B.Customized products
C.Platform products
D.Quick-build products
E.Process-intensive products
Answer:
Quality control charts usually have a central line and upper and lower control limit
lines. Which of the following is not a reason that the process being monitored with the
chart should be investigated?
A.A large number of plots are close to the upper or lower control lines
B.Erratic behavior of the plots
C.A single plot falls above or below the control limits
D.A change in raw materials or operators
E.A run of five above the central line
Answer:
In the context of a simulation study, which of the following refers to testing the
computer simulation program to ensure that the simulation is correct?
A.Validation
B.Confirmation
C.Substantiation
D.Calibration
E.Checking
Answer:
Which of the following aggregate operations planning methods uses pattern search
procedures to find minimum points on the total cost curves?
A.Linear decision rules
B.Linear programming
C.Graphing and charting
D.Simulation of aggregate plan
E.None of the above
Answer:
A company is planning for its financing needs and uses the basic fixed-order quantity
inventory model. Which of the following is the total cost (TC) of the inventory given an
annual demand of 10,000, setup cost of $32, a holding cost per unit per year of $4, an
EOQ of 400 units and a cost per unit of inventory of $150?
A.$1,501,800
B.$1,498,200
C.$500,687
D.$499,313
E.None of the above
F.Scrambling; Locked
Answer:
An advantage of a make-to-stock process is which of the following?
A.Rapid delivery of a standard product
B.All units of output are unique
C.It responds directly to customer orders
D.It allows the firm to avoid inventory costs
E.It combines the best features of other processes
Answer:
In business forecasting, what is usually considered a medium-term time period?
A.Six weeks to one year
B.Three months to two years
C.One to five years
D.One to six months
E.Six months to six years
Answer:
The transportation method of linear programming can incorporate which of the
following factors when used in aggregate operations planning?
A.Learning curve effects
B.The probability of quality failures
C.Subcontracting
D.Manufacturing scale economies
E.Demand uncertainties
Answer:
Which of the following is not a basic type of process structure?
A.Product-process matrix
B.Workcenter
C.Manufacturing cell
D.Assembly line
E.Continuous process
Answer:
Name the five kinds of time that make up production cycle time according to Dr. Eli
Goldratt’s theory of constraints.
Answer:
What is the principle of “postponement” and why is it considered the key to mass
customization?
Answer:
Lots are defined as low quality when the percentage of defective units is greater than
what?
Answer:
What are some of the possible benefits of decreasing inventory order cycle time?
Answer:
If demand for product “A” were forecast at 1,000,000 units for the coming year and
your factory has one machine capable of producing 75,000 units per month, how much
of product “A” might you plan to acquire through outsourcing?
Answer:
Using the cut-and-try method for aggregate operations planning we can determine the
production requirement in units of product. If beginning inventory is 4,000 units, the
demand forecast is 2,900 units and the required safety stock is 10% of the demand
forecast, what is the production requirement?
Answer:
If it takes a supplier 10 days to deliver an order once it has been placed and the standard
deviation of daily demand is 14, what is the standard deviation of usage during lead
time?
Answer: