A production line is to be designed to make 500 El-More dolls per day. Each doll
requires 11 activities totaling 16 minutes of work. The factory operates 750 minutes per
day. The required cycle time for this assembly line is
A) one-half minute
B) one and one-half minutes
C) two minutes
D) 5,500 minutes
E) cannot be determined from the information given
TAL Apparel’s management of its supply chain for Stafford shirts sold in JCPenney in
an example of
A) blanket orders
B) standardization
C) postponement
D) lot size reduction
E) single stage control of replenishment
Which of the following OM strategic decisions pertains to sensible location of
processes and materials in relation to each other?
A) layout design
B) goods and service design
C) supply-chain management
D) inventory
E) scheduling
Bridget’s Hamburger Stand uses only 7 ingredients but offers 15 different burgers. This
process is known as
A) Robust Design
B) QFD
C) Modular Design
D) CAD
E) Value analysis
A system has three components in parallel with reliabilities 0.9, 0.7, and 0.5. System
reliability is
A) 0.315
B) 0.700
C) 0.900
D) 0.985
E) 2.100
A distribution of service times at a waiting line indicates that service takes 12 minutes
30 percent of the time and 14 minutes 70 percent of the time. This distribution has been
prepared for Monte Carlo analysis. The first four random numbers drawn are 07, 60, 77,
and 49. The average service time of this simulation is
A) 12 minutes
B) 13 minutes
C) 13.5 minutes
D) 14 minutes
E) none of these
A finite population waiting line model has an average service time T of 100 minutes and
an average time between service requirements U of 400 minutes; the service factor X is
A) 0.20
B) 0.25
C) 4
D) 5
E) 300 minutes
One of the advantages of simulation is that
A) it is much less expensive than a mathematical solution
B) it always generates a more accurate solution than a mathematical solution
C) the policy changes may be tried out without disturbing the real-life system
D) model development is less time consuming than for mathematical models
E) model solutions are transferable to a wide variety of problems
Which of the following supply-chain strategies creates value by allowing suppliers to
have economies of scale?
A) suppliers becoming part of a company coalition
B) vertical integration
C) long-term partnering with a few suppliers
D) negotiating with many suppliers
E) developing virtual companies
Which of the following would likely cause a change in market opportunities based upon
levels of income and wealth?
A) economic change
B) sociological and demographic change
C) technological change
D) political change
E) legal change
The potential restaurant customer who says to her husband, “The line looks too long;
let’s eat somewhere else,” is an illustration of which element of queue discipline?
A) first-in, first-out
B) balk
C) renege
D) random departure
E) none of the above
The MPS calls for 110 units of Product A. There are currently 60 of Product A on hand.
Each A requires 2 of Part B. There are 30 units of B available.
a. Calculate the net requirements for A.
b. Calculate the gross requirements for B.
c. Calculate the net requirements for B.
A manufacturing company preparing to build a new plant is considering three potential
locations for it. The fixed and variable costs for the three alternative locations are
presented below.
a. Complete a numeric locational cost-volume analysis.
b. Indicate over what range each of the alternatives A, B, C is the low-cost choice.
c. Is any alternative never preferred? Explain.
A simple CPM network has three activities, D, E, and F. D is an immediate predecessor
of E and of F. E is an immediate predecessor of F. The activity durations are D=4, E=3,
F=8.
A) The critical path is D-E-F, duration 15.
B) The critical path is D-F, duration 12.
C) Slack at D is 3 units.
D) Slack at E is 3 units.
E) Both A and C are true.
A manager must decide on the mix of products to produce for the coming week.
Product A requires three minutes per unit for molding, two minutes per unit for
painting, and one minute for packing. Product B requires two minutes per unit for
molding, four minutes for painting, and three minutes per unit for packing. There will
be 600 minutes available for molding, 600 minutes for painting, and 420 minutes for
packing. Both products have contributions of $1.50 per unit. Answer the following
questions; base your work on the solution panel provided.
a. What combination of A and B will maximize contribution?
b. What is the maximum possible contribution?
c. Are any resources not fully used up? Explain.
Which of the following aggregate planning strategies is known to lower employee
morale?
A) yield management
B) counterseasonal product and service mixing
C) changing inventory levels
D) varying work force size by hiring or layoffs
E) back ordering during high demand periods
Which of the following OM Strategy/Issues should a firm with a product in the maturity
stage of its life cycle be least concerned with at the present time?
A) increase capacity
B) long production runs
C) standardization
D) cost cutting
E) fewer rapid product changes
__________ is the amount a facility can hold, store, receive, or produce in a period of
time.
A waiting line meeting the M/M/1 assumptions has an arrival rate of 10 per hour and a
service rate of 12 per hour. What is the average time a unit spends in the system and the
average time a unit spends waiting?
The supply-chain strategy of __________ increases the willingness to participate in JIT.
State the fundamental objective of a firm’s location strategy. How is this basic objective
carried out by industrial or goods-producing firms; how does that differ for service
firms? Answer in a clear, convincing paragraph.
What is the Monte Carlo method?
Daily usage of a part is 20 in a facility that operates 250 days of the year. Setup cost is
$20 and annualized carrying cost is $210. Production of this part occurs at the rate of 50
per day when production of the part is underway. Lead time is 1 day; safety stock is 1/2
day’s production. What is the optimum kanban size, and number of kanbans?
A container of ball-bearings valued at $25,000, currently located in Houston, TX, needs
to be delivered to the Morton, IL, plant. The standard shipment method takes two days.
However, for an additional charge of $500, the container can be sent overnight. The
annual holding cost rate for this type of item has been estimated at 28%. What option is
more economical?
A department chair wants to monitor the percentage of failing students in classes in her
department. Each class had an enrollment of 50 students last spring. The number of
failing students in the 10 classes offered that term were 1, 4, 2, 0, 0, 0, 0, 0, 0, and 3,
respectively. Compute the control limits for a -chart at the 95% confidence level. Is the
process in control?
Identify some technological advances that can serve to improve logistics management
and also improve shipping security.
Regal Marine’s use of __________ has reduced product development time and reduced
problems with tooling and production.