The larger the mean absolute deviation (MAD) the more accurate the forecast.
The load-distance technique evaluates different locations based on load and transport
distance.
Workers often do not like to be the subject of a time study, and are sometimes unwilling
to cooperate.
Products assembled in modules can be easier to repair and maintain.
The cost and availability of labor is an important factor in a manufacturing facility
location decision.
Regression is used for forecasting when there is a relationship between the dependent
variable, demand, and one or more independent (explanatory) variables.
Companies that have adopted Six Sigma view it as a short-term strategy for incremental
quality improvement.
Time series methods assume that demand patterns in the past are a good predictor of
demand in the future.
A variable measure classifies while an attribute measure quantifies.
A unique, one-time operational activity or effort is referred to as a process.
Concurrent design is often aided by the use of technology.
Transportation costs are generally a function of distance, weight, and time.
A phantom bill of material is appropriate when a product consists of assemblies that are
later combined to form a variety of final products.
Annual demand for a product is 40,000 units. The product is used at a constant rate over
the 365 days the company is open every year. The annual holding cost for the product is
estimated to be $2.50 per unit and the cost of placing each order is $125.00. If the
company orders according to the economic order quantity (EOQ) formula then its total
annual inventory cost for this product is
a. $100,000.
b. $50,000.
c. $5,000.
d. $2,500.
Which of the following describes a process layout?
a. Equipment is general purpose and the workers are unskilled.
b. Equipment is specialized and the workers are highly skilled.
c. Equipment is general purpose and the workers are highly skilled.
d. Equipment is specialized and the workers are unskilled.
Distributors, warehouses, and retailers are referred to as _____________ supply chain
members.
a. downstream
b. upstream
c. procurement
d. None of these answer choices is correct.
The ratio of a firm’s monthly output to the number of labor hours used in the same
month would be a measure of
a. labor productivity.
b. capital productivity.
c. machine productivity.
d. multifactor productivity.
A company hopes to achieve a daily output of 200 units during 6 hours of production
time. Assuming there is no lost time during the 6 hours of production, the desired cycle
time to achieve the targeted level of output is
a. 3.0 minutes
b. 1.8 minutes
c. 1.5 minutes
d. 0.03 minutes
For a particular time study a company would like to be 90% confident that the average
job cycle time is within 5% of the true average job cycle time. Assume that the average
job cycle time is 15.76 minutes and the standard deviation of the sample is 3.2 minutes.
The number of cycles that should be used in this time study would be
a. 45.
b. 93.
c. 127.
d. 236.
Which of the following is not an assumption of the EOQ model?
a) demand rate is known and constant
b) shortages are allowed
c) lead time is constant
d) order quantity is received all at once
To maximize an assembly line’s efficiency the
a. line’s balance delay must be minimized.
b. line’s balance delay must be maximized.
c. cycle time must be less than the flow time.
d. flow time must be less than the cycle time.
Given the following MRP matrix for Item D:
The projected on hand quantity at the end of period 3 is
a. 0.
b. 20.
c. 60.
d. 70.
In a supply chain, __________________ is the movement of a product from one
location to another as it makes its way to the final customer.
a) distribution
b) transportation
c) material handling
d) None of these answer choices is correct.
A company that produces specialized video equipment had cost of goods sold last year
of $127,000,000. The average value of inventory for raw materials, work-in-process,
and finished goods are shown in the table below:
If the company operates 50 weeks per year, then the weeks of supply in inventory
would be
a. 4.9 weeks.
b. 0.1 week.
c. 10.2 weeks.
d. 35.8 weeks.
W. Edwards Deming’s overall philosophy for achieving quality is embodied in
a. his 14 points.
b. his statement of purpose.
c. his use of statistical control.
d. None of these answer choices is correct.
Which of the following is not a basic element in a project plan?
a. Objectives
b. Personnel
c. Contract requirements
d. All of these answer choices are correct.
Consider an espresso stand with a single barista. Customers arrive at the stand at the
rate of 28 per hour according to a Poisson distribution. Service times are exponentially
distributed with a service rate of 35 customers per hour. The average time in minutes a
customer spends waiting in line for service is
a. 0.114 minute.
b. 0.143 minute.
c. 6.84 minutes.
d. 8.58 minutes.
Given the following MRP matrix for Item D:
The planned order release for period 5 is
a. 100.
b. 120.
c. 160.
d. 270.
Given the following MRP matrix for Item C:
If each order cost $500 and the holding cost is $0.75 per item per period, then using the
Periodic Order Quantity lot sizing technique, the planned order release for period 1 is
a. 270.
b. 290.
c. 340.
d. 560.
Leaning a supply chain ____________ flow through a series of suppliers.
a. pushes a smooth
b. pulls a smooth
c. pushes an intermittent
d. pulls an intermittent
What does a feasibility study consist of and how is it related to the design process?
Modern Inc. manufactures low-cost tables at a processing cost of $80 per table. The
company produces 100 units per day and averages 90% good quality resulting in 10%
defective items. Fifty percent of the defective units are reworked prior to shipment to
Modern’s distribution center. The rework cost is $10 per unit. The quality productivity
ratio (QPR) is
a. approximately 1.00.
b. approximately 1.10.
c. approximately 1.20.
d. approximately 1.30.
How are waiting line costs and service quality related?
What are the outputs of aggregate planning?
Discuss the importance of accurate forecasts in supply chain management.
List and define four information technology supply chain enablers.
What is decision analysis?