Gantt charts show the planned but not the completed activities against a time scale.
Product layouts are sometimes referred to as functional layouts because they group
similar activities together.
Continuous production is characterized by very high volumes of commodity products.
Process plans are a set of documents that detail the steps in process selection.
Unlike a pull system, a push system prevents both overproduction and underproduction.
A piece-rate wage plan rewards employees for attaining company goals and objectives.
Waiting lines form because customers arrival times and service times are not always
equal.
Because linear programming provides an optimal solution, sensitivity analysis is never
an important consideration.
Single model and mixed model assembly lines are similar in layout and operation.
A work breakdown structure provides a common understanding of and justification for
a project.
A sampling plan provides a set of guidelines for accepting rejecting a lot.
Waiting for parts to arrive or for machines to finish production is considered a form of
waste under the principles of mass production.
If the points plotted on a control chart display a pattern, it is called a run.
Computer-aided design (CAD) produces better products but always increases the time
to design them.
The simplest form of a sampling plan is a singledouble-sample attribute plan.
Continuous replenishment relies heavily on ____________term forecast.
a. short-
b. medium-
c. long-
d. All of these answer choices are correct.
With ___________________, suppliers are encouraged to suggest more
environmentally friendly materials, methods and processes.
a. green sourcing
b. green manufacture
c. recycling and reuse
d. green consumption
Information sharing in support of supply chain integration includes all the following
types except
a. demand data.
b. inventory stocks.
c. cost and profit data.
d. production and shipping schedules.
An airline is an example of a
a. service factory.
b. mass service.
c. service shop.
d. professional service.
The demand for an electronic component is normally distributed with an average daily
demand of 500 units, and a standard deviation of 50. The lead time for the component is
9 days. If the company sets a reorder point of 4,650 for this component then its service
level is approximately
a. 50 percent.
b. 84 percent.
c. 92 percent.
d. 98 percent.
A company is developing a linear programming model for its aggregate production
plan. Each worker can produce 500 units per quarter. If Wt = workforce size in period t
and Pt = number of units produced in period t, then the production constraint for period
3 is
a. W3 = 500P3
b. P3 = W3 – 500
c. P3 = 500W3
d. P3 = W3/500
All the following reasons are reasons aAcceptance sampling is still used today for all
the following reasons except
a. government regulations.
b. contractual requirements.
c. industry standards.
d. total quality management principles.
If the following jobs are sequenced according to the DDATE rule then the maximum
job tardiness (in days) is (assume zero for today’s date)
a. 12 days.
b. 15 days.
c. 16 days.
d. 27 days.
With ___________________, consumers are encouraged to use the product efficiently,
repair it when possible and dispose of it responsibly.
a. green sourcing
b. green manufacture
c. recycling and reuse
d. green consumption
The direct labor hours required to produce the first two units of a new product are 2,000
and 1,800, respectively. Using a 90% learning rate the company would estimate the
direct labor hours for the fifth unit to be
a. 1692.4 hours.
b. 1620.0 hours.
c. 1566.0 hours.
d. 1523.2 hours.
XYZ manufacturing has received an order to produce a rod 5 inches in diameter + .04
inch. In sample runs, the machine tool that will be making the rod has been able to
produce rods with a mean diameter of 4.99 inches and a standard deviation of 0.011
inch. The process capability ratio for this process is
a. -1.44
b. -1.21
c. 1.21
d. 1.44
The _______________ classification system classifies inventory according to its dollar
value to the firm.
a. periodic
b. continuous
c. ABC
d. EOQ
A bagel company bakes a specialty bagel that it sells by the dozen every day. These
specialty bagels can only be baked early in the morning before the store opens for
business. The company estimates that the daily demand (in dozens) for its specialty
bagel is distributed as follows:
Specialty bagels are sold by the dozen only at a cost of $9.00 per dozen. The cost to
bake each bagel is $0.50. Leftover specialty bagels are sold by the dozen the next day
for a 50% discount. The bagel company’s cost of underestimating demand, Cu, is
a. $9.00
b. $6.00
c. $4.50
d. $3.00
When opportunities for continuous improvement of a process have been exhausted, it
may be time to
a. redesign or innovate.
b. shut down the process.
c. subcontract the production.
d. All of these answer choices are correct.
Fairco, a family business, is considering making an investment in its manufacturing
operation. Three decisions are under consideration: (1) a large investment; (2) a
medium investment; and (3) a small investment. The business believes that there are
three possible future outcomes for its product: (1) increasing demand; (2) stable
demand; and (3) decreasing demand. The following payoff table describes the decision
situation.
The best decision for Fairco using the maximax criterion would be to
a. make the large investment.
b. make the medium investment.
c. make the small investment.
d. choose increasing demand.
The demand for an electronic component is normally distributed with an average daily
demand of 500 units and a standard deviation of 50. The lead-time for the component is
9 days. If a service level of 95% is desired then the company’s reorder point for this
component is approximately
a. 3,785 units.
b. 4,500 units.
c. 4,627units.
d. 4,747units.
What is the annual purchase cost using the economic order quantity?
a. $60,000
b. $61,000
c. $65,000
d. None of these answer choices is correct.
The smoothing constant, α, in the exponential smoothing forecast
a. must always be a value greater than 1.0.
b. must always be a value less than 0.10.
c. must be a value between 0.0 and 1.0.
d. should be equal to the time frame for the forecast.
A company may purchase larger amounts of inventory for all the following reasons
except
a. to reduce inventory carrying costs.
b. to take advantage of quantity discounts.
c. as a hedge against future price increases.
d. to obtain lower prices purchasing in volume.
A company is developing a linear programming model for its aggregate production
plan. If Wt = workforce size for period t, Ht = number of workers hired for period t, and
Ft = number of workers fired for period t, then the company’s workforce constraint for
period 2 is
a. W2 = W1 + F2 ‘“ H2
b. W2 = H2 ‘“ F2
c. W2 = W1 + H2 ‘“ F2
d. W2 = H2 ‘“ F2 ‘“ W1
A restaurant currently uses 62,500 boxes of napkins each year at a constant daily rate.
The cost to order napkins is $200.00 per order and the annual carrying cost for one box
of napkins is $1.00. If the restaurant orders the economic order quantity then the
average inventory for napkins is
a. 62,500 boxes.
b. 31,250 boxes.
c. 5,000 boxes.
d. 2,500 boxes.
(Use the following information for the next five problems.)
The owner of Koffi, the sole coffee house located in a resort area, wants to develop a
forecast based on the relationship between tourism and coffee drinks sold. He has
generated the following data over the past 12 months:
The data from using Data Analysis on Excel is as follows:
What is the correlation?
a. 0.95
b. 0.91
c. 0.90
d. 19
Design for the environment includes all the following concepts except
a. design for disposal or reuse.
b. sustainability.
c. extended producer responsibility.
d. environmentally safe people.