Service facilities are usually the largest and most expensive type of facility.
Attribute control charts are used to monitor descriptive characteristics of the output of a
process rather than measurable characteristics.
When demand is uncertain, a safety stock is often added to the expected demand during
lead time to prevent a stockout.
Tolerances or specification limits are allowable variation prescribed in a product design.
The most current era in the evolution of operations and supply chain management is
sustainability.
The courtesy and competence of the repair person can be one aspect of maintainability.
The major layout concern for a process layout is where to locate departments or
functional areas relative to each other.
The transportation method is used for aggregate planning when the strategy for
adjusting capacity is hiring and firing workers.
Channels refers to the number of parallel servers in a waiting line system.
Control limits are based on the special cause (nonrandom) variation inherent in a
process.
Deming emphasized the use of statistical quality control techniques to reduce variability
in the output of a process.
Employees’ role in quality management is becoming less important due to the
implementation of supplier partnerships.
In lean production, a strong relationship exists between setup times and lot size.
Operations management is only concerned with the day-to-day operations of a firm’s
productive systems.
Which of the following is not a key to effective supply chain management?
a. communication among members
b. independence among members
c. collaboration among members
d. trust among members
A company randomly selects 100 light bulbs every day for 40 days from its production
process. If 600 defective light bulbs are found in the sampled bulbs then the estimate
for the average percent defective would be
a. 6.667
b. 0.167
c. 0.150
d. 0.250
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 in the diner?
a. 2.0432
b. 2.8364
c. 3.7536
d. 5.4837
Lower inventory levels make processes
a. less dependent on each other while keeping bottlenecks hidden.
b. less dependent on each other while revealing bottlenecks more quickly.
c. more dependent on each other while revealing bottlenecks more quickly.
d. more dependent on each other while keeping bottlenecks hidden.
TicToc produces product A and product B. These products have the following resource
requirements.
The firm has a weekly production budget of $3000 and a maximum of 1000 hours of
labor per week. Each A produced generates $35.00 in profit for the company. Each B
produced generates $25.00 in profit for the company. The company’s objective function
is
a. Maximize Z = $35.00A + $25.00B.
b. Minimize Z = $12A + 8B.
c. Minimize Z = 4A + 3B.
d. None of these answer choices is correct.
All of the following are parts of DMAIC except
a) define.
b) measure.
c) analyze.
d) improvise.
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 projected on hand at the end of period
7 is
a. 330.
b. 270.
c. 0.
d. 140.
_________________ scheduling involves loading work onto the work center, leveling
the load, sequencing the work, and monitoring its progress.
a. Finite
b. Terminal
c. Infinite
d. Genetic
The following information relates to a company’s aggregate production planning
activities:
Beginning Workforce = 50 workers
Production per Employee = 250 units per quarter
Hiring Cost = $1000 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $15 per unit per quarter
If a chase demand strategy is used then the total hiring and firing cost of the plan is
a. $340,000
b. $250,000
c. $125,000
d. $90,000
If a firm’s design process is too lengthy
a. a competitor may capture market share by being first to market.
b. a competitor may lose market share by being first to market.
c. a competitor may decide not to enter the market.
d. None of these answers is correct.
Two techniques used to design process layouts are
a. block diagramming and assembly line balancing.
b. relationship diagramming and assembling line balancing.
c. relationship diagramming and assembly line balancing.
d. block diagramming and relationship diagramming.
A company is developing a linear programming model for its aggregate production
plan. If It = units in inventory at the end of period t, Pt = units produced in period t, and
Dt = demand in period t, then the company’s demand constraint to ensure that demand is
met in quarter 3 is
a. D3 = I2 ‘“ I3 + P3
b. D3 = I3 + P3
c. D3 = I3 ‘“ I2 + P3
d. D3 = I2 ‘“ I3 + P2
Advantages of empowerment include all of the following except
a. more attention to product quality.
b. higher productivity.
c. abuse of power.
d. more satisfying work.
Rival companies pooling their distribution resources to reduce cost are engaging in
a. collaborative logistics.
b. distribution outsourcing.
c. cross docking.
d. None of these answer choices is correct.
Long life, high capital cost, and low operating costs are associated with which mode of
transportation?
a. pipeline
b. trucking
c. airline
d. None of these answer choices is correct.
A project consists of the following four activities with activity times in days:
Table YY
The earliest start (ES) time for activity B is
a. 5 days.
b. 6 days.
c. 11 days.
d. 14 days.
As part of a time study a particular job was analyzed. The study included 20 job cycles
and the following cumulative times and performance rating factors for each element
were reported:
Assuming an allowance factor of 15%, the standard time for this job would be
a. 4.35 minutes.
b. 3.67 minutes.
c. 2.712 minutes.
d. 2.358 minutes.
A forecasting model has produced the following forecasts:
At the end of May the average error would be
a. 7.
b. 5.
c. 3.
d. 1.
Simulation analysis is useful for operational problems that
a. are easy to solve analytically.
b. can’t be solved analytically.
c. require an optimal solution.
d. meet specific analytical criteria.
In a pull system reducing the number of kanbans
a. increases inventory making problems more visible.
b. reduces inventory making problems less visible.
c. reduces inventory making problems more visible.
d. increases inventory making problems less visible.
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 time a customer spends in the diner?
a. 3 minutes
b. 5.975 minutes
c. 6.44 minutes
d. 8.94 minutes
__________________ advocated continuous improvement to the production process to
achieve conformance to specifications and reduce variability.
a. W. Edwards Deming
b. Philip Crosby
c. Kaoru Ishikawa
d. Frederick Taylor
What is the discount order quantity using a purchase price of $122?
a. 100
b. 115.47
c. 200
d. 500