By managing diversity, a company can gain a competitive edge because all employees
are given an opportunity to do their best.
One way to cope with the bullwhip effect is for supply chain members to share demand
information.
Material requirements planning (MRP) is useful for managing and scheduling discrete
demand items.
Flexibility has traditionally been used as a measure of job efficiency.
Facility location is often overlooked because it is not an important aspect of a firm’s
strategic plan.
Lot sizing rules are used in MRP to determine work or purchase order quantities.
A warehouse operation is an example of a physical transformation process.
Order qualifiers are the characteristics of a product that have to be satisfied just to be
considered for purchase by a customer.
Service processes can be classified by the degree of labor intensity and customization.
Because services are labor intensive, human resources is becoming a more important
strategic factor for service companies.
It is possible to have low variation within samples while at the same time having high
variation between sample means.
Producing a high volume of a single product is a characteristic of batch production.
A time study is a statistical sample distribution, where the number of cycles is the
sample size.
Sequencing involves determining the order in which jobs are released to the shop floor.
Quantitative methods are tools available to operations managers to help make a
decision but not a recommendation.
Improved scheduling of materials, workers, and machines will most generally affect
a. processing time.
b. move time.
c. waiting time.
d. setup time.
The elements of job design include
a. task analysis.
b. worker analysis.
c. environmental analysis.
d. All of these answer choices are correct.
In general, the earliest finish time for an activity is equal to
a. earliest start time + activity time estimate.
b. earliest start time ‘“ activity time estimate.
c. earliest start time ‘“ slack time.
d. earliest start time + slack time.
The _______________ is a document that provides a common understanding,
justification, and expected result for a project.
a. statement of work
b. work breakdown structure
c. scope statement
d. responsibility assignment matrix
Companies go global to
a. take advantage of favorable costs.
b. to keep abreast of trends and access new technologies.
c. to build reliable sources of supply.
d. All of these answer choices are correct.
The following information relates to a company’s aggregate production planning
activities:
Beginning Workforce = 50 workers
Production per Employee = 250 units per quarter
Hiring Cost = $1000 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $15 per unit per quarter
If a level production strategy is used then the number of workers required is
a. 125
b. 170
c. 250
d. 325
A forecasting model has produced the following forecasts:
The mean absolute percent deviation (MAPD) for the end of May is
a. 0.0250.
b. 0.0583.
c. 0.5830.
d. 0.6670.
The constraint 3x1 + 6x2> 48 is converted to an equality by
a. adding a slack variable.
b. subtracting a surplus variable.
c. adding both a slack variable and a surplus variable.
d. subtracting both a slack variable and a surplus variable.
A high-level process map, useful in the beginning the redesign of a process, contain(s)
a. detailed steps associated with each activity.
b. essential building blocks of the main activities.
c. both detailed steps and essential building blocks.
d. None of these answer choices is correct.
The direct labor times required to produce the first four units of a new product are
shown below:
Based on this data the estimated learning or improvement rate is
a. 100%.
b. 90%.
c. 85%.
d. 80%.
Given the following MRP matrix for Item E:
The planned order releases for period 4 is
a. 300.
b. 200.
c. 75.
d. 0.
Which of the following is not a characteristic of aggregate planning for services?
a. labor is usually the most constraining resource for services
b. service capacity must be provided at the appropriate place and time
c. demand for services is easy to predict
d. capacity for services is difficult to predict
Variable demand and small-to-moderate quantities produced to-order are characteristics
usually associated with
a. mass production.
b. continuous production.
c. projects.
d. batch production.
The mean absolute percentage deviation (MAPD) measures the absolute error as a
percentage of
a. all errors.
b. per-period demand.
c. total demand.
d. the average error.
The following information relates to a company’s aggregate production planning
activities:
Beginning Workforce = 125 workers
Production per Employee = 500 units per quarter
Hiring Cost = $750 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $10 per unit per quarter
If a level production strategy is used the number of units in inventory at the end of
quarter 3 is
a. 0
b. 2,500
c. 5,000
d. 20,000
A graph that illustrates the improvement rate of workers, as a job is repeated, is known
as a
a) learning curve.
b) process flowchart.
c) worker-machine chart.
d) task analysis chart.
Which of the following is not typically a component of lead time?
a. move time.
b. breakdown time.
c. wait time.
d. setup time.