Suppose that the formula in cell C8 is ‘=H2+$P6’. If cell C8 is copied to cell E7, the
formula in cell E7 will be ‘=J1+R5’.
Whenever demand exceeds supply, the company experiences a lost sale.
In Excel, you should delete unused worksheets of a workbook.
Reneging occurs when a customer enters a waiting line but decides to exit before being
served.
ISO certification has become a requirement for conducting business in many industries.
Methods analysis eliminates unnecessary tasks and improves the process for completing
tasks.
Vacillating occurs when a customer enters one line and then switches to a different line
in an effort to reduce his or her waiting time.
By focusing on value-added processes, JIT is able to achieve high-volume production
of high-quality, low-cost products.
The gross requirements of a given component part are determined from planned orders
of the parent.
Process technology is the technology that has grown the most rapidly and has had the
greatest impact on business.
Finished goods in transit to the customer are called what?
a) WIP inventory
b) components inventory
c) raw materials inventory
d) distribution inventory
e) MRO inventory
Six-sigma quality implies how many average defects per million?
a) 3.4
b) 6
c) 2600
d) 3
e) 6
The first step in forecasting is:
a) determine what data is available
b) decide what to forecast
c) evaluate and analyze appropriate data
d) select and test the forecast model
e) establish the forecast accuracy requirements
Quick-Slim Inc. produces a variety of nutritional diet products. Management wants to
evaluate the performance of Work Center 10, the bottleneck in the packaging line. The
following input report is given.
Calculate the cumulative deviation of the input at the end of period 3.
a) -20
b) -30
c) 10
d) 20
e) 30
Which of the following is not one of the steps in setting up the Solver optimization
problem?
a) specify the target cell
b) specify the objective cell
c) specify the changing cell(s)
d) specify the constraints
e) specify the Solver options
Acme Corp. makes vending machines for small companies. They have recently started
selling their vending machines in Southern California, with a great deal of success, at a
price of $5,000 per machine. The company is convinced that they will need to either
build a new plant near San Diego or expand their existing plant in New Orleans. If they
build a new plant near San Diego, the annual fixed costs will be $6,000,000 and the
variable costs will be $3,000 for each vending machine delivered to Southern
California. If they expand the New Orleans plant, their annual fixed costs for the
expansion will be $2,000,000 and the variable costs will be $4,000 for each vending
machine delivered to Southern California.
(a) Determine the break-even quantity for building the new plant near San Diego.
(b) Determine the break-even quantity for expanding the plant in New Orleans.
(c) At what output will the two locations have the same total cost?
(d) Assume that the demand forecast is less than the output in part c. Which option
should the company choose?
An x-bar chart is an example of what?
a) Traditional statistical tools
b) Fishbone diagramming
c) Acceptance sampling
d) Experimental design
e) Statistical process control
The process of calculating ES and EF ______________________________.
a) requires only a forward pass through the network
b) requires only a backward pass through the network
c) requires both a forward and backward pass through the network
d) cannot be accomplished until slack is first determined
e) is sufficient for calculating the critical path
With probabilistic time estimates, when we calculate the expected time for an activity,
we treat each activity time estimate as a random variable derived from a
______________ probability distribution.
a) normal
b) beta
c) gamma
d) Poisson
e) uniform
The two different approaches to load work centers in job-shop scheduling are
__________________.
a) load chart and process chart
b) finite loading and infinite loading
c) input control and output control
d) fixed routings and line balancing
e) makespan and linear programming
The lead time can be less than the cumulative lead time when
_________________________.
a) the company has inventory on hand
b) the order has already been shipped
c) the supply chain is well tuned
d) there is no safety time
e) the order is expedited
Scatter diagrams are particularly useful in detecting the amount of __________, or the
degree of linear relationship, between two variables.
a) Correlation
b) Heteroscedasticity
c) Agreement
d) Disagreement
e) Causality
According to the textbook, one of the fastest-growing trends today is
a) Leveraging technology
b) PWP
c) focused plants
d) developing a large network of subcontractors
e) developing a large focused distribution chain
If OT = the mean observed time, PRF = the performance rating factor, F = the
frequency of occurrence, and PFD = the percentage allowance based on time worked,
what is the formula to compute the normal 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)
Constraints at their limits at the optimal solution of a Linear Program, that is, with the
left-hand-side value equal to the right-hand-side value, are called
_________________________.
a) equality constraints
b) non-binding constraints
c) binding constraints
d) limiting constraints
e) synergistic constraints
Sam’s dry cleaning store has 3 employees who fold the clothes. Each employee can fold
45 shirts every hour. Assuming a level aggregate program how many employees will
Sam need if to meet a demand of 1600 shirts per day if everyone works an 8 hour shift?
a) 3
b) 5
c) 7
d) 12
e) 35
Jackie is the owner and the manager of an auto repair company. In order to be fair to all
the customers, Jackie decides to use the FCFS priority rule in job sequencing.
Currently, four cars need to be repaired. Assume that the cars arrive in the order listed,
that is, A first, then B, then C, then D. The estimated labor times (in days) and promise
dates are shown in the following table. Customers usually do not pick up their cars
early. Today is day 0.
Based on the FCFS sequence, calculate the following performance measures: (a)
makespan, (b) average job flow time, (c) average number of jobs in the system, (d)
average job tardiness.
Why is a process flowchart useful?
a) for designing a product
b) for determining where the strengths are in a process
c) for determining where the weaknesses are in a process
d) for seeing the totality of the operation and for identifying potential problem areas
e) for benchmarking against other processes
Capacity planning is complicated by the fact that ___________________.
a) capital markets are complex
b) existing facilities may become obsolete
c) capacity is difficult to define
d) capacity is usually purchased in chunks, rather than smooth increments
e) depreciation must be calculated
What is the shortest distance between two locations using north-south and east-west
movements called?
a) Euclidean distance
b) triangulated distance
c) rectilinear distance
d) Socratic distance
e) latitude-longitude (LL) distance
Which of the following forecasting methods would be most accurate if demand were
rapidly decreasing?
a) 3-month moving average
b) 6-month moving average
c) 12-month moving average
d) Simple mean
e) Exponential smoothing with = 0.001
Bazooka Company is thinking about introducing a new type of color printer. If they
introduce it, their factory will incur additional fixed costs of $37,000,000 per year. The
variable costs will be $261 per printer.
a) If Bazooka sells the new printer for $819, how many must they sell to break even?
b) If Bazooka sells 70,000 of the new printer at the $819 price, what will the
contribution to profit be?
Demonstrated capacity is the ______ capacity ______ from the actual performance
data.
a) proven, calculated
b) desired, derived
c) historical, viewed
d) forecasted, estimated
e) extreme, targeted
What does OSHA stand for and when was it enacted?
Consider a workstation that can process 1200 units per hour. It takes 1.5 hours to
receive an order from the previous station. The container size is 40 units. The factory
sets safety stock at 20 percent of demand during lead time. How many kanbans are
needed for the workstation?
Mrs. Crabapple has a class with three students, and she has had four quizzes so far this
semester. She has created control charts to determine if the variation in students’ scores
from quiz to quiz is exhibiting only natural variation. Each of the quiz scores is shown
below. The upper and lower control limits for the x chart are 109.6 and 34.9,
respectively. The upper and lower control limits for the R chart are 93.95 and 0,
respectively.
Is the process in a state of control?
Studying the detailed process for doing a job is called ___________________.
If a firm has fixed costs of $200,000, variable costs of $100 per unit, and it hopes to sell
1000 units, what selling price must it charge in order to break even?
A firm that wishes to use break-even analysis to evaluate potential locations must know
_______________ for each site.
Unlike MAD and MSE, the tracking signal’s numerator allows positive and negative
forecast errors to _____________.
Discuss the master scheduler’s objectives when developing the MPS.
In the product screening stage of new product development, what are some questions
that may need to be explored by the operations function? By marketing? By finance?
Describe guidelines for spreadsheet model development.