What occurs when a customer enters one line and then switches to a different line in an
effort to reduce his or her waiting time?
a) balking
b) walking
c) reneging
d) vacillating
e) jockeying
Which of the following is the term for ‘arranging the method of shipment for both
incoming and outgoing products or material’?
a) TQM
b) Employee management
c) Distribution management
d) Traffic management
e) Logistics management
Suppose that you are using the naïve forecasting method with trend to forecast sales.
If sales have been declining by 20% per week, and this week’s sales amounted to $200,
what would your forecast be for next week?
a) $200
b) $ 40
c) $240
d. $180
e) $160
In Excel, which function key toggles between relative and absolute cell referencing
when editing a formula?
a) F1
b) F2
c) F3
d) F4
e) F5
The use of standard times for costing allows the company to do all except which of the
following?
a) evaluate quantitative methods
b) evaluate new product proposals
c) evaluate use of new equipment
d) evaluate new techniques for building a product
e) evaluate individual operator proficiency
For the level aggregate plan, fluctuations in demand are absorbed by
________________.
a) inventory and subcontracting
b) back orders and price changes
c) inventory and back orders
d) price changes and subcontracting
e) subcontracting and back orders
Sportsworld, Inc. currently incurs $100,000 in annual purchasing costs, and each
purchase order costs the firm approximately $3. Third-Party Logistics, Inc. is willing to
perform purchasing services for Sportsworld at a $50,000 annual fixed retainer plus $7
per purchase order. Sportsworld currently places 10,000 orders per year.
a) What is the current total cost of purchasing for Sportsworld?
b) What would the cost of purchasing be if Third-Party Logistics were used?
c) What is the indifference point for the two alternatives?
According to the financial calculations of the make-or-buy decision, if we need fewer
units than the indifference point, then which option should we definitely choose?
a) Make
b) Buy
c) The option with the lower variable costs
d) The option with the higher variable costs
e) It is not profitable to choose either option.
According to JIT, by eliminating inventory we can clearly identify __________ and
work on eliminating them.
a) Obsolete products
b) Malfunctioning machines
c) Grievances
d) Product imperfections
e) Problems
What is the throughput of Fingerhut’s warehouse in St. Cloud, MN?
a) 30,000 items per minute
b) 30,000 items per hour
c) 30,000 items per day
d) 30,000 items per week
e) 30,000 items per month
Given the following data, use exponential smoothing (α = .1) to develop a demand
forecast for period 3. Assume the forecast for the initial period is 500. What is the
forecast?
a) 569
b) 470
c) 541
d) 551
e) 479
At the GAP, which function plans and coordinates all the resources needed to design,
produce, and deliver the merchandise to its various retail locations?
a) engineering
b) human resources
c) marketing
d) operations management
e) purchasing
Actions that consume resources and/or time are project ______________________.
a) events
b) activities
c) nodes
d) arrows
e) tasks
The MPS available-to-promise row shows:
a) how many committed units the company has
b) how many units manufacturing will produce
c) inventory levels
d) how many uncommitted units the company has available
e) how many uncommitted units sales will promise to sell
Which of the following is an assumption of the basic EOQ model?
a) Lead time is unknown.
b) Demand may be seasonal.
c) Orders can arrive in partial shipments.
d) Quantity discounts are not considered.
e) Lost sales are allowed, but not back orders.
Which of the following typically represents the beginning of a supply chain?
a) Wholesalers
b) Retailers
c) Manufacturers
d) External suppliers
e) Inspectors
The Malcolm Baldrige Award criteria include categories for all of the following except
a) Leadership
b) Process management
c) Product design
d) Customer and market focus
e) Business results
Quality at the source is the belief that it is far better to _______ quality problems and
_____ them than to discard defective items after production.
a) uncover the person generating, fire
b) uncover the source of, correct
c) discover new methods of, implement
d) discover new processes of, implement
e) allow returns of, fix
Consider a production line with five stations. Stations one through five can process a
unit in 10, 15, 20, 5, and 12 minutes, respectively. What is the maximum throughput per
hour?
a) 6 units
b) 4 units
c) 3 units
d) 12 units
e) 5 units
Define operations management.
What is another name for cell layout?
John’s Office Supply Company has the following order history over the last 7 months.
Compute an exponential smoothing forecast for November, with a smoothing constant
of α = .25. To start the procedure, assume that the forecast for April was 100. Round
each forecast to two decimal places.
Consider a single-line, single-server waiting line system. Suppose that customers arrive
according to a Poisson distribution at an average rate of 100 per hour. The manager
does not want customers to be in the system for longer than 12 minutes. How fast does
the average (exponentially distributed) service time need to be in minutes in order to
keep the manager satisfied?
Suggest some core competencies that companies may have.
What is the formula for the sample standard deviation of a variable measured as a
fraction or probability?
What is the term for a layout in which the product cannot be moved due to its size, and
all the resources have to come to the production site?
What is the maximum inventory of a product that is produce in batches of 1000 when
500 units are produced per day and 250 units are sold per day?
Maxine has identified the following process times and desired output. What is the
theoretical minimum number of work stations?
What are the seven TQM tools for solving quality problems?