Traditionally, each supply chain member was viewed as a separate, stand-alone entity
focused on its own goals.
With the quantity discount model, the basic EOQ total cost formula is modified to
include a term, PD, calculated by taking the purchase price multiplied by annual
demand.
A material requirements planning (MRP) system serves as both an inventory control
system and as a production scheduling system.
Customer relationship management (CRM) software plans and executes business
processes that involve customer interactions.
Globalization of the supply chain has many pros and few, if any, cons.
The negative exponential distribution is the probability distribution most commonly
used to describe service times.
Positioning is a step in strategy formulation that defines how firms will compete in the
marketplace.
A control chart is in control when the plot of the sample points exhibits a pattern.
Flexible resources is one of the basic elements of lean production.
Mass production is characterized by high volumes of a customized product for a mass
market.
The factors used to evaluate location of a manufacturing plant are usually different from
the factors used in locating a service facility.
Maintaining a desired service level influences the level of safety stock.
The basic purpose of control charts include(s)
a. establishing control limits for a process.
b. monitoring the process to indicate when it is out of control.
c. both establishing control limits for a process and monitoring the process to indicate
when it is out of control are basic purposes.
d. None of these answer choices is correct.
A project consists of the following activities:
Table XX
The critical path for this project consists of activities
a. A-B-C-D-E-F.
b. A-C-E-F.
c. A-B-C-F.
d. A-B-D-F.
Which of the following is a reason why a forecast can go out of control?
a. a change in trend
b. an irregular variation such as unseasonable weather
c. a promotional campaign
d. All of these answer choices are correct.
Companies that compete on _________________ establish a corporate culture that
encourages risk.
a. Innovation
b. Quality
c. Flexibility
d. Cost
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
optimal order size for this product is
a. 2,000 units.
b. 4,000 units.
c. 20,000 units.
d. 40,000 units.
Which of the following is not a contemporary trend in human resource management?
a. cross training
b. flexible work schedules
c. telecommuting
d. reduced work week for full time employees
Capacity is defined as the
a. minimum capability to produce.
b. maximum capability to produce.
c. average capability to produce.
d. None of these answer choices is correct.
The demand for an electronic component is normally distributed with an average daily
demand of 500 units and a standard deviation of 50. The lead time for the component is
9 days. If a service level of 95% is desired, then the company’s safety stock for this
component is approximately
a. 150 units.
b. 247 units.
c. 336 units.
d. 740 units.
A company is evaluating which of two alternatives should be used to produce a product
that will sell for $35 per unit. The following cost information describes the two
alternatives.
The breakeven volume for Process A is
a. 50,000 units.
b. 62,500 units.
c. 30,000 units.
d. 20,000 units.
______________ focus(es) the organization on common goals that can be translated
into measurable objectives.
a. Order winners
b. Core competency
c. Positioning
d. Deploying the strategy
Pizazz manufactures a 5.0 oz. energy drink of the same name. Because the cans are so
small, consumers are concerned that they are not receiving the full 5 ounces in each
can. A quality engineer at the company is charged with analyzing the filling process and
ensuring accurate readings. On 15 different occasions over the past month, she has
taken a sample of 6energy drinks off the production line and recorded their weight. If
the sum of the sample means is 80.20 ounces and the sum of the sample ranges is 12.68
ounces, the UCL for an X-bar chart of this process would bea. 5.00
b. 5.35
c. 5.76
d. 6.45
If the line currently assembles 10 units every hour when fully functional, then the line’s
balance delay at this rate of output is
a. 66.67 %
b. 33.33%
c. 80.00%
d. 20.00%
A small diner has one employee and a counter with seating for 8 customers. The diner
does not package food for takeout. Customers arrive at the diner at the rate of 20 per
hour (Poisson distributed). Service times are exponentially distributed and average 24
per hour. Customers that arrive when all seats are taken do not enter the diner. What is
the average number of customers waiting (average queue length)?
a. 2.0432
b. 2.8364
c. 3.9785
d. 5.9782
______________ setups can be performed in advance while the machine is running.
a. Internal
b. External
c. Parallel
d. Unnecessary
Which of the following refers to an approach to risk management that aggregates risk?
a. Risk pooling
b. Risk optimizing
c. Risk capturing
d. None of these answer choices is correct.
The first step in building a flowchart is to
a. define process boundaries.
b. map out the process
c. determine objectives
d. None of these answer choices is correct.
In project management the term slack refers to the amount of time
a. to complete an activity without delaying the project.
b. an activity can be delayed without delaying the project.
c. needed to complete the entire project.
d. required to complete the project’s critical activities.
A(n) _______________ is a project team structure that includes members from
different functional areas.
a. matrix organization
b. project network
c. organizational breakdown structure
d. work breakdown structure
A ____________ kanban is used to order material in advance of production.
a. material
b. supplier
c. production
d. withdrawal
The key elements of project control includes all the following except
a. time management.
b. cost management.
c. material management.
d. communication.
If the following jobs are sequenced according to the SLACK rule then the maximum
job tardiness (in days) is (assume zero for today’s date)
a. 20 days.
b. 12 days.
c. 10 days.
d. 7 days
Consider a production process that produces tires. A quality engineer has taken 15
samples, each containing 200 tires. The total number of defective tires over the 15
samples is 340. The LCL for the control chat constructed using two sigma is
e. 0.022
f. 0.036
g. 0.048
h. 0.066
Briefly describe various Ssix Sigma tools and give an example of the use of each.
What is Enterprise Resource Planning (ERP)?
Briefly discuss the cost of poor quality.
What is productivity and how is it measured?
What are the advantages of a cellular layout?
Do waiting lines only form when the service operation is understaffed? Explain?