Time series models are generally more difficult to use than causal models.
Inventory turnover is the reciprocal of weeks of supply.
The first mathematical model for inventory management was developed by Elton
Mayo.
If the number of customers you can serve per time period is more than the average
number of customers arriving, the waiting line grows infinitely.
The primary objective of ERP is to integrate all departments and functions, internal and
external, onto a single computer system to serve the enterprise’s needs.
Outsourcing is providing goods or services to an outside provider.
In a spreadsheet, it is better to write a smaller number of more complex formulas than
to write a larger number of simple formulas.
Discrete-event simulation of products allows the customer to define the system, arrival,
and service patterns.
Waiting line models typically assume that customer arrival rates are represented by the
Gaussian distribution.
As the cycle time of a process decreases, its output also decreases.
TQM is reactive, designed to build quality into the product and process design.
Even if the company already owns the storage space and incurs no additional expense
for storing the inventory, we still include the cost of that storage space as part of
holding costs.
A common difference between intermittent and repetitive operations is degree of
product standardization.
Managers use a from-to matrix for facility layout design to identify both the number of
trips and the direction of those trips.
The process batch should be variable.
MRP develops a time-phased schedule that shows future demand, supply and
inventories by time period.
Increasing the number of standard deviations on which control chart limits are based
will decrease the Type I error.
Sometimes the things you learn about the real situation during the modeling process are
even more important than the numerical results of the model.
To provide speed of delivery, Federal Express invested in a sophisticated bar code
technology.
Worker pay decisions are part of the production process structure.
By focusing on __________ processes, JIT is able to achieve high-volume production
of high-quality, low-cost products.
a) downstream
b) upstream
c) change-over
d) gateway
e) value-added
Activities on the critical path _______________________________________.
a) are the ones with the longest activity times
b) always are connected directly to dummy activities
c) have LS equal to LF
d) have ES equal to EF
e) have no slack
Which of the following is a basic difference of work sampling compared to a time
study?
a) It does not require any observations.
b) It requires fewer observations to accomplish the same thing.
c) It is better suited for short, repetitive tasks.
d) It does not provide standard times.
e) It is suitable only for assembly lines.
Which of the following is not an input to the aggregate planning process?
a) beginning workforce
b) demand forecast
c) beginning inventory
d) master production schedule
e) overtime available per period
Five jobs must be scheduled. Each of the jobs must be processed on two machines (A
and B) in the same order. The processing times are listed below. According to Johnson’s
rule, in what order should the jobs be processed?
a) C-B-D-A-E
b) C-D-A-E-B
c) B-E-A-D-C
d) C-A-E-D-B
e) C-D-E-B-A
The finance function is responsible for
a) sales, generating customer demand, and understanding customer wants and needs
b) plans and coordinates all the resources needed to design, produce, and deliver the
merchandise to its various retail locations
c) planning, coordinating, and controlling the resources needed to produce a company’s
products and services
d) managing cash flow, current assets, and capital investments
e) efficiency and costs
One benefit PWP provides over independent plants is
a) increased production output
b) increased design capacity capabilities
c) reduction of unnecessary layers of bureaucracy
d) reduction in transportation costs
e) improved supplier relationships
Given this information about an activity: ES = 10, EF = 15, LS = 26, and LF = 31. The
amount of slack associated with the activity is ____________________.
a) 32
b) 5
c) 21
d) 16
e) 11
In product screening, issues such as ‘Will we need new facilities and equipment?’ and
‘Can material for production be readily obtained?’ are addressed by
a) marketing
b) finance
c) engineering
d) operations
e) accounting
In the critical chain approach, the focus is on _______________________.
a) deliverables
b) making activity times certain
c) project milestones
d) the final due date of the project
e) individual activities
Which of the following is not attributed to Philip Crosby?
a) The concept of the quality trilogy
b) The phrase ‘Do it right the first time.’
c) Stressed the idea of prevention of defects
d) The notion of zero defects
e) The phrase ‘Quality is free.’
Using the following data, calculate the average job lateness.
a) -2 days
b) 3 days
c) 13 days
d) -8 days
e) 1.5 days
If OT = the mean observed time, PRF = the performance rating factor, F = the
frequency of occurrence, and PFD = the percentage allowance adjustment based on job
time, what is the formula to compute the standard time?
a) (OT)(PRF)(F)
b) (OT)(PRF)(F)(1 + PFD)
c) (OT)(PRF)(F) / (1 ‘“ PFD)
d) (OT)(PRF) / (F)
e) (OT)(PRF)(F) / (1 + PFD)
A single-line cafeteria is an example of which layout type?
a) inverted
b) disjointed
c) process
d) fixed position
e) product
In six-sigma programs, individuals who have extensive training in the use of technical
tools and are responsible for carrying out the implementation of Six Sigma are
__________________.
a) black belts
b) green belts
c) blue belts
d) red belts
e) white belts
Steve’s Steak House uses exponential smoothing with trend (alpha = .10 and beta = .40)
to forecast its weekly demand for chopped steak in the metro area. Average sales have
been 1000 steaks per week, and the recent trend has been an increase of 20 steaks per
week. Actual demand last week was for 1040 steaks. What should the forecast be for
this week?
Evaluate capacity alternatives can include use of ______________________________.
a) the Delphi method
b) estimated market shares
c) demographic factors
d) econometric forecasting
e) decision trees
The Master Production Schedule is often stated in:
a) dollars
b) rubles
c) product specifications
d) labor
e) material requirements
In future periods, MPS Shipments – Customer orders between current and next
scheduled MPS shipment is called ________________________.
The basic idea for optimization of problems is to find the values of __________
variables that ____________ (minimize) the objective function value, while staying
within the _________ .
Name some lot size rules.
Explain the difference between paced and un-paced lines.
Describe three different types of service designs.
The university replication facility provides copier repair service for the university and
for local businesses. Over the last year the mean arrival rate is 55 copiers a month. The
repair facility uses two identical repair technicians who can repair an average of 30
copiers each month. The system is set up as a single channel, first come first served,
multi-server system.
1. What is the utilization of the service center?
2. What is the probability that no copiers will be in the system?
3. What is the average number of copiers waiting in line?
4. What is the average time a copier is waiting to be repaired?
5. What is the average number of copiers in the system?
What are the capacity-based options in aggregate planning?
Why would a company consider purchasing or building a small facility, when in the
long run they think that they could use a large one?
In designing service systems, the main challenge is to design a system with
___________ but not _____ amounts of capacity.
What are preset ranges of acceptable quality characteristics?
b) Control limits.
b) Product specifications.
c) Six-sigma limits.
d) AQC limits.
e) R-chart limits.