An example of an output measure of capacity is labor hours.
Shipments should spend less than 24 hours in a crossdock.
Capacity decisions at the strategic level include the size of workforce.
Solving a decision tree that involves maximizing profit includes selecting the decision
alternative with the highest expected value.
In work sampling, observations should be taken at random times.
The term for ‘inspecting a random sample of an output from process, within range and
functioning properly’ is Statistical Process Control
A variable is a product characteristic that has a discrete value and can be counted.
Forecasting only impacts the business functions.
A customer population is called finite when the number of potential new customers is
affected by the number of customers already in the system.
The company forecasts dependent demand based on independent demand input.
A scenario is a specific set of conditions that helps identify the inputs that cause the
most change in the outputs.
Shifting demand makes sense when the company has high fixed costs and low variable
costs.
Operations research started with the publication of the results of the Hawthorne studies.
At a factory, the transformation process is the physical change of raw materials and
components into products.
In the custom footer box, the command to insert the worksheet name is ‘&[Tab]’.
Supply chain management provides the company with a sustainable, competitive
advantage.
A plant within a plant can perform a number of tasks to help a company focus on its
core capabilities.
The naïve forecasting method assumes that next period’s actual value will be equal to
this period’s actual value.
Production and inventory planners release orders to the expediter.
There is no single way to set up a Linear Program in a spreadsheet.
Which of the following is not one of the supply chain wastes the text book identifies?
a) over production
b) delay between activities
c) procurement/purchasing delay
d) unnecessary transport or conveyance of product
e) unnecessary movement by people
Which of the following is not characteristic of a project?
a) has a specific objective
b) has multiple activities
c) typically performed by external consultants
d) activities have defined precedence relationships
e) to be completed in a specified time period
A company with a low customer contact that is capital intensive is called:
a) a farm
b) manufacturing
c) quasi-manufacturing
d) service
e) Industrial era operations management
Advantages of the alternative workplace include all except which of the following?
a) eliminating offices that people do not need
b) reducing overhead expenses
c) offers more flexibility to balance work and family
d) increased cohesiveness among employees
e) employees devote more time to customers and/or meaningful work activities
The number of kanbans or containers needed at a workstation is dependent on all
except which of the following?
a) the demand rate
b) the number of workers
c) the size of the container
d) the lead time
e) the safety stock level
Which of the following is not characteristic of TQM?
a) Inspecting products after they have been made
b) Identifying and correcting the root causes of quality problems
c) Encompasses the entire organization
d) Attempts to embed quality in every aspect of the organization
e) Concerned with technical aspects of quality
Consider a p-chart measuring the percentage of defective light bulbs. If the LCL is .04
and a sample has 1% defects, what is the implication?
a) The process is in a state of control.
b) The process is out of control even though the variation is ‘good.’
c) The value of sigma must be increased.
d) The process has too many errors.
e) A calculation error must have occurred.
Which of the following statements is true?
a) The ‘slushy’ portion of the MPS comes later than the ‘liquid’ portion of the MPS.
b) The planning time fence occurs before the demand time fence.
c) The ‘frozen’ portion of the MPS occurs between the planning time fence and the
demand time fence.
d) The master scheduler has more authority during the ‘frozen’ portion of the MPS than
during the ‘slushy’ portion of the MPS.
e) The ‘liquid’ portion of the MPS occurs after the demand time fence.
The Japanese term for continuous improvement is
a) Poka-yoke
b) Kaizen
c) Kanban
d) Muda
e) Automation
The items listed below are stored in a one-dock warehouse. Which of them should be
stored at the very back (furthest away from the dock)?
a) ‘Star Trek’ videos
b) ballet videos
c) Tom Cruise videos
d) ‘The Simpsons’ videos
e) operations management videos
A greater number of jobs in the system implies what?
a) a higher work-in-process inventory level and a longer response time
b) a lower work-in-process inventory level and a longer response time
c) a higher work-in-process inventory level and a shorter response time
d) a lower work-in-process inventory level and a shorter response time
e) more jobs will certainly be tardy.
A recent change in supply chain management has been the:
a) need for faster computers.
b) green supply chain management requirement.
c) requirement for advanced educational degrees.
d) increased government regulation.
e) need for smaller ocean transportation methods.
Suppose that Jane’s company uses exponential smoothing to make forecasts. Further
suppose that last period’s demand forecast was for 500 units and last period’s actual
demand was 480 units. In addition, yesterday Jane found out that this period’s actual
demand will be for 550 units. Jane’s company uses an α value of .20. Today, Jane’s
boss asked her to prepare a forecast for this period. What should that forecast be?
a) 504
b) 496
c) 510
d) 484
e) 550
If inputs increase by 10% and outputs increase by 4%, what is the percentage
productivity increase?
a) 5.45%
b) 250.00%
c) – 5.45%
d) 5.77%
e) – 5.77%
For a single-server, single-line, single-phase waiting line system, where  represents
the mean arrival rate of customers and represents the mean service rate, what is the
formula for the average time spent in the system?
a)  /
b)  / ( )
c)  2 / ( )
d) 1 / ( )
e)  / ( )
If C represents the number of chairs produced, which of the following is a proper
non-negativity constraint?
a) C ≠0
b) C > 0
c) C ≥ 0
d) C < 0
e) C ≤ 0
Which of the following is not an assumption of the waiting line models presented in the
textbook?
a) the customers are patient
b) customers come from a finite population
c) customer arrival rate is described by a Poisson distribution
d) service times are described by an exponential distribution
e) the waiting line priority rule is first-come, first-served
Which of the following is least like a process layout?
a) job shop
b) automobile plant
c) hospital
d) university
e) grocery store
The Excel function that returns the z-value of the standard normal distribution
corresponding to a cumulative probability of p is _______
The Excel function that multiplies corresponding numbers in the two ranges and returns
the sum of those products is the ________________ function.
Facility layout decisions are _________ with a number of other ____________.
Operational schedules that consider work center capacity use ________________.
The time a job spends in the shop is called its __________________.
Define crashing as it relates to project management.
The operations function must place emphasis on those priorities that directly support
the __________ ________. Therefore, it needs to make _________ between different
priorities.
Describe why understanding learning curves is important to the organization.