If the mean time between failures has been calculated to be 2,000 hours, then FR(N) =
0.0005 failures/unit-hour..
The expected value of each course of action in a decision tree is determined by starting
at the beginning of the tree (the left-hand side) and working toward the end of the tree
(the right).
Vertical integration, whether forward or backward, requires the firm to become more
specialized.
If the learning curve for a process is 100 percent, then each unit in a series of units will
have the same labor requirements.
Reevaluation of learning curves is inappropriate.
Personal and fatigue allowances can include amounts for the effects of lighting, heat
and humidity, and noise.
Activity times should not be included in a service blueprint.
Graphical techniques are easy to understand and use, but are not well-suited for
generating optimal strategies.
Generally, the objective of the location decision is to maximize the firm’s profit.
Process control is the use of information technology to monitor and control a physical
process.
Because the supply chain has become so electronic and automated, opportunities for
unethical behavior have been greatly reduced.
Cycles and random variations are both components of time series.
The number of tires sold at a car garage varies randomly between 0 and 4 each hour.
What set of random numbers (on the 1-100 scale would tire sales of 2 be assigned?
A) 01 through 20
B) 21 through 40
C) 41 through 60
D) 61 through 80
E) 81 through 100
In MRP, system nervousness is caused by
A) management’s attempt to continually respond to minor changes in production
requirements
B) the use of the lot-for-lot approach
C) management’s marking part of the master production schedule as “not to be
rescheduled”
D) the use of phantom bills of material
E) management’s attempt to evaluate alternative plans before making a decision
A forecasting method has produced the following over the past five months. What is the
mean absolute deviation?
A) -0.2
B) -1.0
C) 0.0
D) 1.2
E) 8.6
Which of the following is an example of competing on quick response?
A) A firm produces its product with less raw material waste than its competitors.
B) A firm offers more reliable products than its competitors.
C) A firm’s products are introduced into the market faster than its competitors’ products.
D) A firm utilizes is capacity more effectively than its competitors.
E) A firm advertises more than its competitors.
The role of quality in limiting a firm’s product liability is illustrated by
A) ensuring that contaminated products such as impure foods do not reach customers
B) ensuring that products meet standards such as those of the Consumer Product Safety
Act
C) designing safe products to limit possible harm to consumers
D) using processes that make products as safe or as durable as their design
specifications call for
E) All of the above are valid.
The first unit of a product took 832 hours to build, and the learning curve is 75%. How
long will it take to make the 30th unit? (Use at least three decimals in the exponent if
you use the logarithmic approach.)
A) less than 200 hours
B) from 200 to 225 hours
C) from 225 to 250 hours
D) from 2501 to 275 hours
E) 275 or more hours
Great Lakes Barge and Baggage Company makes, among other things, battery-operated
bilge pumps. Which of the following activities is not part of JIT? They
A) communicate their schedules to suppliers
B) produce in long production runs to reduce the impact of setup costs
C) use a pull system to move inventory
D) continuously work on reducing setup time
E) produce in small lots
Which of these is not a characteristic that makes yield management attractive to
organizations that have perishable inventory?
A) demand can be segmented
B) service can be sold in advance of consumption
C) capacity is easily changed
D) variable costs are low and fixed costs are high
E) demand fluctuates
Visibility throughout the supply chain is a requirement among supply-chain members
for
A) mutual agreement on goals
B) mutual trust
C) compatible organizational cultures
D) local optimization
E) the bullwhip effect
A primary advantage of decision trees compared to decision tables is that decision trees
A) are more accurate
B) are faster
C) are smaller
D) are cheaper
E) can be used for sequential problems
Which of the following is not an advantage of a virtual company?
A) speed
B) total control over every aspect of the organization
C) specialized management expertise
D) low capital investment
E) flexibility
Which of the following is not an advantage of outsourcing?
A) cost savings
B) gaining outside expertise
C) improving operations and service
D) outsourcing core competencies
E) gaining outside technology
The fundamental purpose of an organization’s mission statement is to
A) create a good human relations climate in the organization
B) define the organization’s purpose in society
C) define the operational structure of the organization
D) generate good public relations for the organization
E) define the functional areas required by the organization
What is the basic objective of a process control system?
Identify the tactics for matching capacity to demand.
Bills of material organized by major subassemblies or by product options are called
__________.
What does enterprise resource planning (ERP) allow an organization to do?
__________ is variation in a production process that can be traced to specific causes.
A product is currently made in a process-focused shop, where fixed costs are $8,000 per
year and variable cost is $40 per unit. The firm currently sells 200 units of the product
at $200 per unit. A manager is considering a repetitive focus to lower costs (and lower
prices, thus raising demand). The costs of this proposed shop are fixed costs = $24,000
per year and variable costs = $10 per unit. If a price of $80 will allow 400 units to be
sold, what profit (or loss) can this proposed new process expect? Do you anticipate that
the manager will want to change the process? Explain.
__________ is a lot-sizing technique that generates exactly what is required to meet the
plan.
What is the objective of critical path analysis?
When firms build supply chains that include foreign firms, __________ and
__________ are issues that raise ethical and legal concerns with operations managers.