Project management software available today combines CPM and other scheduling
aids, like Gantt charting, to aid in tracking progress of project completion.
Answer:
Safety stock can be computed when using the fixed-order quantity inventory model by
multiplying a “z” value representing the number of standard deviations to achieve a
service level or probability by the standard deviation of periodic demand.
Answer:
Price-break models deal with the fact that the selling price of an item generally
increases as the order size increases.
Answer:
Lean production is a management philosophy and a pull system throughout the plant.
Answer:
Low level coding in MRP indicates the exact status of each item managed by the system
in “real time.”
Answer:
Use of systems like point-of-sale, radio-frequency identification tags, bar-code
scanners, and automatic recognition has made it more difficult to understand what all
the information is saying.
Answer:
Operations and supply management changes constantly because of the dynamic nature
of competing in global business and the constant evolution of information technology.
Answer:
Activity-system maps show how a company’s strategy is delivered through a set of
tailored activities.
Answer:
An output of MRP is a bill of materials (BOM) file.
Answer:
An example of assignable variation in a production system may be that a machine is not
adjusted properly.
Answer:
Poka-Yoke is roughly translated from Japanese as “Avoid Mistakes.”
Answer:
The Gantt chart is an example of a project control chart.
Answer:
Efficiency means doing the right things to create the most value for the company.
Answer:
A financially-driven reason for outsourcing is that it can help gain access to new
markets, especially in developing countries.
Answer:
The phenomenon that magnifies the variability in order quantities for goods as orders
move through the supply-chain from the customer to the producer is called the bullwhip
effect.
Answer:
A firm’s business practices toward its’ labor force pertain mainly to the economic aspect
of the triple bottom line concept.
Answer:
AQL stands for accepting questionable lots in production quality management.
Answer:
The term “freeze window” refers to the practice of building quality into the process and
not identifying quality by inspection.
Answer:
One of the competitive dimensions that form the competitive position of a company
when planning their strategies is making the best trade-off.
Answer:
The Malcolm Baldrige National Quality Award is given to organizations that have done
which of the following?
A. Instituted a six-sigma approach to total quality control
B. Demonstrated a high level of product quality
C. Demonstrated outstanding quality in their products and processes
D. Have a world-class quality control function
E. Most significantly improved their product quality levels
Answer:
Which of the following of Fisher’s product categories includes fashionable clothing,
personal computers and other products that typically have a very brief life cycle?
A. Functional products
B. Dysfunctional products
C. Innovative products
D. Bullwhip products
E. Value density products
Answer:
A major competitive dimension that forms a company’s strategic operational
competitive position in their strategic planning is which of the following?
A. Cost or price
B. Focus
C. Automation
D. Straddling
E. Activity-system mapping
Answer:
Using the cut-and-try method for aggregate operations planning we can determine the
production requirement in units of product. If the beginning inventory is 100 units, the
demand forecast is 1,200, and the necessary safety stock is 20% of the demand forecast,
which of the following is the production requirement?
A. 1,200
B. 1,300
C. 1,340
D. 1,500
E. 1,540
Answer:
A company wants to determine its reorder point (R). Demand is variable and they want
to build a safety stock into R. The company wants to have a service probability
coverage of 95 percent. If average daily demand is 8, lead time is 3 days, and the
standard deviation of usage during lead time is 2, which of the following is the desired
value of R?
A. About 17.9
B. About 19.7
C. About 24.0
D. About 27.3
E. About 31.2
Answer:
At a decision point in a decision tree, which machine would you select when trying to
maximize payoff when the anticipated benefit of selecting machine A is $45,000 with a
probability of 90%; the expected benefit of selecting machine B is $80,000 with a
probability of 50% and the expected benefit of selecting machine C is $60,000 with a
probability of 75%?
A. Machine A
B. Machine B
C. Machine C
D. You would be indifferent between machines A and C
E. You would be indifferent between machines A and B
Answer:
In implementing a lean production system you should work with suppliers to do which
of the following?
A. Calculate lead times
B. Quality circles
C. Freeze windows
D. Make frequent deliveries
E. Achieve bottom-round management
Answer:
Which of the following is not a criterion that influences manufacturing plant or
warehouse facility location decisions?
A. Proximity to customers
B. Historical cost
C. Infrastructure of a country
D. Quality of labor
E. Business climate
Answer:
A BOM file is also called which of the following?
A. Product tree
B. Stocking plan
C. Inventory usage record
D. Production parts plan
E. Time bucket schedule
Answer:
You are looking at a chart that has the terms BCWS, BCWP and AC indicating lines on
the chart. What kind of chart are you looking at?
A. Gantt Chart
B. PERT Chart
C. Bar/Milestone Chart
D. Total Program Cost Breakdown
E. EVM Chart
Answer:
A simple project listing of five activities, their predecessors and their respective time
estimates are presented below:
Using the CPM, which activities have slack in this project?
A. A
B. B
C. C
D. D
E. C and E
Answer:
Which of the following is a partial measure of productivity?
A. Output/Materials
B. Output/(Labor + Capital + Energy)
C. Output/All resources used
D. Output/Inputs
E. All of the above
Answer:
Which of the following is not included as an inventory holding cost?
A. Annualized cost of materials
B. Handling
C. Insurance
D. Pilferage
E. Storage facilities
Answer:
You have the following time and cost information below for use in a Time-Cost CPM
Scheduling model.
What are the three costs per unit of time to expedite each activity?
A. A=$300, B=$200, C=$300
B. A=$100, B=$200, C=$400
C. A=$200, B=$200, C=$200
D. A=$100, B=$400, C=$300
E. A=$200, B=$300, C=$400
Answer:
Which of the following is not a measure of operations and supply chain management
efficiency used by Wall Street?
A. Inventory turnover
B. Revenue per employee
C. Receivable turnover
D. Earnings per share
E. Asset turnover
Answer:
What is an important difference between capacity planning in services as contrasted to
capacity planning in manufacturing operations?
A. Time
B. Location
C. Demand volatility
D. Utilization impacts service
E. All of the above
Answer:
Which of the following is not a basic type of process structure?
A. Product-process matrix
B. Workcenter
C. Manufacturing cell
D. Assembly line
E. Continuous process
Answer:
Quality control charts usually have a central line and upper and lower control limit
lines. Which of the following is not a reason that the process being monitored with the
chart should be investigated?
A. A large number of plots are close to the upper or lower control lines
B. Erratic behavior of the plots
C. A single plot falls above or below the control limits
D. A change in raw materials or operators
E. A run of five above the central line
Answer:
Which of the following is considered a high-contact service operation?
A. On-line brokerage house
B. Internet sales for a department store
C. Physician practice
D. Telephone life insurance sales and service
E. Automobile repair
Answer:
In time series data depicting demand which of the following is not considered a
component of demand variation?
A. Trend
B. Seasonal
C. Cyclical
D. Variance
E. Autocorrelation
Answer:
If the intercept value of a linear regression model is 40, the slope value is 40, and the
value of X is 40, which of the following is the resulting forecast value using this model?
A. 120
B. 1,600
C. 1,640
D. 2,200
E. 64,000
Answer:
If there are 120 total defects from 10 samples, each sample consisting of 10 individual
items in a production process, which of the following is the fraction defective that can
be used in a “p” chart for quality control purposes?
A. 120
B. 10
C. 8
D. 1.2
E. 0.8
Answer:
In an overview of the major operations planning activities in a typical logistics
organization, which of the following activities follows aggregate sales and operations
planning?
A. Process planning
B. Workforce scheduling
C. Vehicle loading
D. Materials requirements planning
E. Order scheduling
Answer:
As a consultant you have been asked to generate a unit demand forecast for a product
for Year 2014 using exponential smoothing. Actual demand in year 2013 was 950 but
the forecast for that year 1,060. Using this data and a smoothing constant alpha of 0.5,
which of the following is the resulting year 2014 forecast value?
________________________________________
Answer:
Describe the implications of the product-process matrix for process design in a
competitive situation.
Answer:
Name the four types of supply chain in Hau Lee’s uncertainty framework for classifying
supply chains.
1> ________________________
2> ________________________
3> ________________________
4> ________________________
Answer:
Which quality guru states that the correct cost for a well-run quality management
program should be under 2.5 percent of sales? _________________________________
Answer:
What are periods of time having some specified level of opportunity for the customer to
make changes called? __________________________________________
Answer:
If the fraction defective is 0.4 based on a sample size of 100, what is the standard
deviation used in constructing the “p” chart?
_____________________________________
Answer:
The term CTQ is used in which portion of the DMAIC methodology?
______________________________
Answer:
(p. 20-21) What are four current issues in operations and supply management that are
discussed in the textbook?
1>___________________
2>___________________
3>___________________
4>___________________
Answer: