Inventory turn values that are considered good differ by industry and the type of
products being handled.
Answer:
Multiple regression analysis uses several regression models to generate a forecast.
Answer:
The term “encounter” is defined by Webster’s Dictionary as “meeting in conflict or
battle” and is used to also designate meetings between consumers and service systems.
Answer:
Infrastructure decisions within operations strategy include the selection of the
appropriate technology, the role of inventory and the location of facilities.
Answer:
Shortage costs are precise and easy to measure.
Answer:
Fixed-time period inventory models are “time triggered.”
Answer:
When reducing the planned duration of a project using the Time-Cost CPM model we
select the activity to crash by determining the cost of each alternative and selecting the
one whose cost is the greatest.
Answer:
MRP provides the schedule specifying when each part and component of an end item
should be ordered or produced.
Answer:
Costs incurred in hiring, training and laying off personnel are considered relevant
aggregate operations planning costs.
Answer:
JIT is typically applied to non-repetitive manufacturing.
Answer:
ISO 9000 is primarily concerned with environmental management.
Answer:
The local government’s willingness to invest in upgrading infrastructure to the levels
required by a company is an important issue in a company’s decision of where to locate
a new facility.
Answer:
Genichi Taguchi’s view of the cost of quality is that variance is a discontinuous
function.
Answer:
Simple exponential smoothing lags changes in demand.
Answer:
TQM is an acronym meaning “total quality measurement.”
Answer:
Derivative projects are those which address incremental changes to products or
processes.
Answer:
An opportunity flow diagram is a time sequenced chart showing plotted values
measuring the flow of end product or components.
Answer:
OSCM is concerned with management of the trickiest parts of the system that produces
a good or delivers a service.
Answer:
If the best operating level of a piece of equipment is at a rate of 400 units per hour and
the actual output during an hour is 300 units, which of the following is the capacity
cushion?
A. 25 percent
B. 100 units per hour
C. 75 percent
D. 125 percent
E. 133 percent
Answer:
In designing a lean production facility layout a designer should do which of the
following?
A. Design for work flow balance
B. Locate flexible workstations off line
C. Link operations through a push system
D. Balance capacity using job shop analysis
E. Always keep operations on a single floor of the factory
Answer:
Which of the following is an input to the master production schedule (MPS)?
A. Inventory records file
B. The aggregate plan
C. The bill of materials
D. The exception report
E. Planned order schedules
Answer:
With which of the following should we use an “X-bar” chart based on sample means to
monitor process quality?
A. Grades in a freshman “pass/fail” course
B. Tire pressures in an auto assembly plant
C. Vehicles passing emissions inspection
D. Computer software errors
E. Number of units with missing operations
Answer:
Various financial data for SunPath Manufacturing for 2012 & 2013 follow.
Answer:
Using the probability approach to determine an inventory safety stock and wanting to
be 95 percent sure of covering inventory demand, which of the following is the number
of standard deviations necessary to have the 95 percent service probability assured?
A. 1.28
B. 1.64
C. 1.96
D. 2.00
E. 2.18
Answer:
According to Little’s Law, which of the following ratios is used to find throughput rate?
A. Cycle time/Process time
B. Throughput time/Process velocity
C. Process velocity/Throughput time
D. Inventory/Flow time
E. Value added time/Process velocity
Answer:
Assume a fixed cost for a process of $120,000. The variable cost to produce each unit
of product is $35, and the selling price for the finished product is $50. Which of the
following is the number of units that has to be produced and sold to break-even?
A. 5,000 units
B. 6,000 units
C. 8,000 units
D. 11,000 units
E. 12,000 units
Answer:
Which of the following is a dimension of design quality?
A. Price
B. Features
C. Color
D. Weight
E. Quality at the source
Answer:
Which of the following is an input file necessary to run an MRP system?
A. Bill of materials (BOM) file
B. Quality management report
C. Exception reports
D. Planned-order schedules
E. Purchasing contracts
Answer:
How many free trade zones are there in the United States?
A. Less than 50
B. Less than 100
C. About 260
D. More than 412
E. About 310
Answer:
The exponential smoothing method requires which of the following data to forecast the
future?
A. The most recent forecast
B. Precise actual demand for the past several years
C. The value of the smoothing constant delta
D. Overall industry demand data
E. Tracking values
Answer:
A listing of immediate predecessor activities is important information in a CPM
analysis for which of the following reasons?
A. It specifies the relationships in the CPM network of activities
B. It provides useful timing information
C. It includes cost information
D. It is the probability information required in the final step of CPM
E. None of the above
Answer:
Which of the following is not a criterion that influences manufacturing plant or
warehouse facility location decisions?
A. Government barriers
B. Trading blocs
C. Environmental regulation
D. Immigration rules
E. Local labor costs
Answer:
You have been called in as a consultant to set up a Kanban control system. The first
thing to do is to determine the number of Kanban card sets needed. Your research shows
that the expected demand during lead time for a particular component is 150 per hour.
You estimate the safety stock should be set at 25% of the demand during lead time. The
tote trays used as containers can hold 8 units of stock and the lead time it takes to
replenish an order is 2 hours. Which of the following is the number of Kanban card sets
necessary to support this situation?
A. 42
B. 47
C. 68
D. 89
E. 94
Answer:
In Hau Lee’s uncertainty framework to classify supply chains, which supply chain
process should be used for functional products with low supply uncertainty.
______________________________________
Answer:
What are the four main categories of cost relevant to aggregate operations planning?
1> ____________________________
2> ____________________________
3> ____________________________
4> ____________________________
Answer:
A company wants to forecast demand using the simple moving average. If the company
uses three prior yearly sales values (i.e., year 2011 = 185, year 2012 = 215, and year
2013 =230), what is the simple moving average forecast for year 2014?
__________________________________
Answer:
Name the two measures of sourcing efficiency.
1 _______________________
2 _______________________
Answer:
What does it mean when a super bill of materials specifies half of a component part in
an assembly? ______________________________________________________
Answer: