What is the amount by which the efficiency of a production line falls short of 100%?
a) balance delay
b) efficiency deficiency
c) efficiency delay
d) balance shortfall
e) percentage deficiency
How can both the JIT and EOQ inventory theories effectively be reconciled?
a) They can’t. A firm must choose either one or the other.
b) by using MRP
c) by considering the setup cost as a variable instead of a parameter
d) by applying Kanban cards to the EOQ system
e) by assuming a finite production rate
Customers generally consider which of the following priority rules to be the fairest?
a) quickest service requirements first
b) longest service requirements first
c) first-come, first-served
d) best customers first
e) highest profit customer first
Which ERP module includes work-flow analysis?
a) finance and accounting
b) information systems
c) sales and marketing
d) production and materials management
e) human resources
In evaluating the current situation, the ____________ is the percentage of normal
capacity at which the company is currently operating.
a) point of departure
b) amount of subcontracting needed
c) magnitude of the change
d) duration of the change
e) rated capacity
When evaluating forecasting models it is accurate to say:
a) they all rely on the same data sets
b) they will provide the same results
c) they are usually accurate
d) they differ in their degree of complexity
e) they do not differ in their degree of complexity
What are the two categories of quantitative models?
a) Delphi and non-causal
b) Causal and non-causal
c) Delphi and time series
d) Causal and time series
e) Causal and Delphi
Many companies require their suppliers to meet what standards as a condition for
obtaining contracts?
a) RFO 6000
b) PUR 8000
c) ISO 9000
d) MACH 5000
e) SUP 2000
If annual demand is 48,000 units, orders are placed in quantities of 2000 units at a time,
and the cost to place an order is $80, what is the annual ordering cost?
a) $1,920
b) $3,840,000
c) $160,000
d) $80
e) $4,160
Which of the following is not characteristic of preventive maintenance in JIT systems?
a) Keeping machines operational
b) Regular inspections of machines
c) Workers helping to maintain their own equipment
d) Operating machines properly
e) Perceiving breakdowns as an opportunity for continuous quality improvement
How many different layout solutions are possible with 7 departments?
a) 7!
b) 6!
c) 7! 1
d) (1!)(2!)(3!)(4!)(5!)(6!)(7!)
e) 8!
When does productivity increase?
a) inputs increase while outputs remain the same
b) inputs decrease while outputs remain the same
c) outputs decrease while inputs remain the same
d) inputs and outputs increase proportionally
e) none of the above
What is the formula for calculating the average transportation inventory (ATI)?
a) ATI = tD / 365/2
b) ATI = tU / 365
c) ATI = tD / 180×2
d) ATI = txD + 365
e) ATI = tD / 365
What is the term for the maximum amount of time each workstation has to complete its
assigned task?
a) output rate
b) task time
c) station time
d) cycle time
e) output time
If capacity is excessive, a company may have to ______________________.
a) decide how to use a partially empty facility
b) outsource
c) back-order
d) use group technology
e) raise prices
Uncontrollable inputs are also called _______________________.
a) decision variables
b) parameters
c) unregulated inputs
d) unregulated variables
e) recessive variables
What Excel feature works backwards to find the value of an input quantity that causes
an output quantity to have a particular value?
a) Goal Seek
b) Goal Snitch
c) FIRSTCOME
d) FIRSTSERVE
e) PARTVALUE$
Testing of the LP model should include __________ and _____________.
a) extreme case, base case
b) extreme case, test values
c) base case, minimum value
d) base case, test values
e) test value, maximum value
In six-sigma programs, individuals are given __________________ titles that reflect
their skills in the six-sigma process.
a) Olympic medal
b) academic
c) martial arts
d) medieval jousting
e) boxing
Using the following data, calculate the average job tardiness.
a) 6 days
b) 1.5 days
c) -2 days
d) -8 days
e) 3 days
Given the following data:
The beginning inventory is 0 and there are no scheduled receipts. The order cost is $90
and the holding cost is $1 per part per period.
(a) What are the order costs, carrying costs, and totals cost over the 9 periods using the
lot-for-lot size rule?
(b) What are the order costs, carrying costs, and totals cost over the 9 periods using the
fixed order quantity rule with FOQ = 100?
(c) What are the order costs, carrying costs, and totals cost over the 9 periods using the
period order quantity rule with POQ = 3?
Which of the following is not an input?
a) services
b) managers
c) buildings
d) technology
e) information
The _____________ distance between two locations on north-south and east-west axes
is used in the _____________ model.
Explain what differentiates a Linear Program from a Nonlinear Program.
Since there are 3600 seconds per hour, a process that is expected to produce 40 units per
hour has a cycle time of _________________.
Supply chain intelligence enables ______________ along the supply chain.
Define and describe a model.
Consumers willingly accept defects if ________________________.
What are the five characteristics that define a service system?
Name three computer applications that affect product design and process selection:
For the data provided determine the Inventory Record using a FOQ lot size rule for the
hinge.