The synchronous manufacturing approach uses backward scheduling.
Answer:
The fixed-order quantity inventory model favors less expensive items because average
inventory is lower.
Answer:
The “Z” distribution used to calculate the probability of completing a project on time is
only useful in calculating probabilities where the desired time is greater than the
expected time.
Answer:
The aggregate operations plan is developed from the master production schedule (MPS)
and the rough-cut capacity plan.
Answer:
The unit improvement factor is not as useful as the learning curve statistics in adjusting
time estimates for learning.
Answer:
The internal rate of return may be defined as the interest rate that equates the present
value of the income stream with the cost of an investment.
Answer:
In calculating the probabilities in a CPM analysis the desired time is determined by
calculating the expected time for the project as a whole.
Answer:
Fixed cost remains constant regardless of the Level of output.
Answer:
In infinite loading no consideration is given directly to whether there is sufficient
capacity at the resources required to complete the work, nor is the actual sequence of
the work as done by each resource in the work center considered.
Answer:
The “dollar days” inventory measurement is chiefly used to focus management’s
attention on where inventory is located.
Answer:
Statistical process control involves testing random samples of output from a process to
determine whether the process is producing items within a pre-selected range.
Answer:
Utilization of a production process is the ratio of time that a resource is actually being
used relative to the time it is available for use.
Answer:
One of the major benefits of DFMA is that products are designed that customers will
want.
Answer:
An MRP program with a capacity requirements planning module allows rescheduling to
try to Level capacity.
Answer:
There are different queuing models to fit different queuing situations.
Answer:
An example of assignable variation in a production system may be that workers are not
identically trained.
Answer:
Shop-floor control (or production activity control) can involve reviewing the status and
controlling the progress of orders as they are being worked on.
Answer:
One of the challenges facing operations and supply management is distributing products
to global markets.
Answer:
Time study is usually performed by using a predetermined benchmark for a standard.
Answer:
Which of the following are fixed-time period inventory models?
A.Periodic system model
B.The two bin system
C.Q model
D.EOQ Formula
E.Just-in-time model
Answer:
An advantage of a pure project where self-contained teams work full time on a project
is which of the following?
A.Team members can work on several projects
B.Functional area is a “home” after the project is completed
C.There are duplicated resources
D.Lines of communication are shortened
E.Overall organizational policies and goals can be ignored
Answer:
Which of the following terms best describes the ability of a company to deliver highly
customized products and services to different customers around the world?
A.Customization
B.High customization
C.Mass customization
D.Global sourcing
E.Outsourcing
Answer:
Which of the following is not one of the basic types of forecasting?
A.Qualitative
B.Time series analysis
C.Causal relationships
D.Simulation
E.Force field analysis
Answer:
If the intercept value of a linear regression model is 40, the slope value is 40 and the
value of X is 40, which of the following is the resulting forecast value using this model?
A.120
B.1,600
C.1,640
D.2,200
E.64,000
Answer:
In the service-system design matrix, a face-to-face loose specs service encounter is
expected to have which of the following?
A.Low sales opportunity
B.Low production efficiency
C.High production efficiency
D.Low degree of customer/server contact
E.None of the above
Answer:
Capacity planning involving consideration of production scheduling and inventory
position is characterized by which one of the following time durations?
A.Intermediate-range
B.Long-range
C.Short-range
D.Current
E.Upcoming
Answer:
One of the objectives of facility location analysis is to select a site with the lowest total
cost. Which of the following costs should be excluded from the analysis?
A.Historical costs
B.Inbound distribution costs
C.Land
D.Construction
E.Regional costs
Answer:
Which of the following is not included as an inventory holding cost?
A.Annualized cost of materials
B.Handling
C.Insurance
D.Pilferage
E.Storage facilities
Answer:
In most cases, demand for products or services can be broken into several components.
Which of the following is considered a component of demand?
A.Cyclical elements
B.Future demand
C.Past demand
D.Inconsistent demand
E.Level demand
Answer:
Which of the following is not an enterprise capability presented in the textbook as part
of the operations and supply strategy framework?
A.Technology
B.Systems
C.People
D.R&D
E.Price
Answer:
Which of the following is a principle of work center scheduling?
A.Once started a job can and should be finished even if unavoidably interrupted
B.Reschedule every day
C.Achieve certainty in standards and routings
D.Give work centers less to do then their maximum
E.Assign the first worker to all of the days that require staffing
Answer:
A process flowchart uses which of the following symbols to represent flows of material
or customers in a flow diagram?
A.Rectangle
B.Arrow
C.Inverted triangle
D.Diamond
E.A dashed line
Answer:
You have just used the capability index (Cpk) formulas to compute the two values “min
[2, 2.5]”. Which of the following is the proper interpretation of these numbers?
A.TheTRUE capability index value is 2.5
B.The mean of the production process has shifted to the left of the design limits
C.The mean of the production process has shifted to the right of the design limits
D.The mean has not shifted at all
E.The TRUE capability index value is between 2 and 2.5
Answer:
In the language of systems thinking, what is the archetypical pattern called which
attempts to resolve a difficult underlying problem by trying to alleviate the problem’s
symptoms?
A.Limits to success archetype
B.Success-to-the-successful archetype
C.Reinforcing and balancing archetype
D.Shifting the burden archetype
E.Feedback loop archetype
Answer:
Using the fixed-time period inventory model and given an average daily demand of 200
units, 4 days between inventory reviews, 5 days for lead time, 120 units of inventory on
hand, a “z” of 1.96 and a standard deviation of demand over the review and lead time of
3 units, which of the following is the order quantity?
A.About 1,086
B.About 1,686
C.About 1,806
D.About 2,206
E.About 2,686
Answer:
A company wants to determine its reorder point (R). Demand is variable and they want
to build a safety stock into R. The company wants to have a service probability
coverage of 95 percent. If average daily demand is 8, lead time is 3 days and the
standard deviation of usage during lead time is 2, which of the following is the desired
value of R?
A.About 17.9
B.About 19.7
C.About 24.0
D.About 27.3
E.About 31.2
Answer:
Various financial data for SunPath Manufacturing for 2008 & 2009 follow.
What is the percentage change in SunPath’s total productivity measure between 2008 &
2009?
A.9.22
B.2.33
C.0.53
D.2.88
E.10.39
Answer:
From an operational perspective yield management is least effective under which of the
following circumstances?
A.Demand can be segmented by customer
B.The product can be sold in advance
C.Demand is highly variable
D.Fixed costs are high and variable costs are low
E.Demand is stable and close to capacity
Answer:
If inventory turnover is 20 and cost of goods sold is $100,000, what is the average
aggregate inventory value?
Answer:
Which priority rule is so powerful that it has been called “the most important concept in
the entire aspect of sequencing”?
Answer:
What are the six phases of the generic product development process?
Answer:
What is the ratio of the average time to move a unit through a productive system
divided by the value-added time?
Answer:
A chance node on a decision tree has four possible outcomes each worth $100,000. The
probabilities of the outcomes occurring are assessed as 10%, 27%, 43% and 20%. What
is the expected value of this chance node?
Answer:
What is “design for logistics”?
Answer:
Kaizen is another term for what activity?
Answer: