The standard fixed-time period model assumes that inventory is never counted but
determined by EOQ measures.
Answer:
Capacity can be defined as the amount of available resource inputs relative to
requirements for output over a particular period of time.
Answer:
Reengineering is about achieving a significant improvement in processes so that
contemporary customer requirements of quality, speed, innovation, customization and
service are met.
Answer:
The lot-for-lot (L4L) lot sizing technique minimizes carrying cost by taking into
account setup costs and capacity limitations.
Answer:
Preventive maintenance is emphasized in lean production to ensure the flows are not
interrupted by downtime or malfunctioning equipment.
Answer:
A Kanban control system uses a signaling device to regulate JIT flows.
Answer:
Core competencies are those things that everyone in the firm must be able to do well.
Answer:
Genichi Taguchi’s view of the cost of quality is that variance is a discontinuous
function.
Answer:
Under the STR/OP sequencing priority rule, orders with the jobs with the longest
STR/OP are run first.
Answer:
Sharing capacity is a common source of external capacity.
Answer:
In a net present value (NPV) analysis we always select the alternative choice that
provides the smallest NPV of cash inflows.
Answer:
The aggregate operations planning variable “inventory on hand” refers to the balance of
unused inventory carried over from the previous time period.
Answer:
Value density is an important measure when deciding where items should be stocked
geographically and how they should be shipped.
Answer:
Using the formula in the textbook the only parameters we need to determine the number
of Kanban card sets is the average number of units demanded over some time period,
the container size and the safety stock.
Answer:
The “dollar days” inventory measurement can be used in purchasing to discourage large
work-in-process and producing earlier than is needed.
Answer:
A graphic used in process flow design depicting an exploded view of a product and its
component parts is which of the following?
A.Route sheet
B.Gantt chart
C.Assembly drawing
D.Simo chart
E.Packing list
Answer:
Which of the following is an example of a finite population in a queuing system?
A.People waiting to purchase fuel at a service station
B.Machines which have randomly spaced service requirements
C.People waiting in line at a tellers’ window in a bank
D.Patients seeking help from a doctor in a private practice
E.Taxpayers calling for assistance from the IRS
Answer:
You are a consultant called in to estimate the costs after the employees learn how to do
a job more efficiently by repetition of new product. You find a company can produce a
product the first time at a cost of $5,000. If their 90 percent learning curve allows them
to reduce their costs on each unit, what is the total cost of producing 100 units of the
new product?
A.$500,000
B.$390,000
C.$290,700
D.$250,687
E.$250,000
Answer:
A company wants to use CPM analysis to manage their project. One of the activities
that make up the project has an uncertain duration. Three estimates have been given to
determine this activity’s duration. The estimates are optimistically 1 hour, most likely 5
hours and pessimistic 6 hours. Using the three activity time estimation procedure for
CPM, what is the expected time this activity will take?
A.2.5 hours
B.3.5 hours
C.4.5 hours
D.5.5 hours
E.None of the above
Answer:
In the history of operations management the use and development of the set of activities
referred to as business process reengineering occurred in what decade?
A.1940’s
B.1950-60’s
C.1970’s
D.1980’s
E.1990’s
Answer:
A company wants to forecast demand using the simple moving average. If the company
uses four prior yearly sales values (i.e., year 2005 = 100, year 2006 = 120, year 2007 =
140 and year 2008 = 210), which of the following is the simple moving average
forecast for year 2009?
A.100.5
B.140.0
C.142.5
D.145.5
E.155.0
Answer:
Which of the following operations management technologies is designed to improve the
efficiency of transportation, storage and retrieval of materials?
A.Industrial robots
B.Automated materials handling (AMH) systems
C.Numerically controlled (NC) machines
D.Computer-aided design (CAD)
E.Robotic delivery of parts systems (RBPS)
Answer:
Which of the following are basic assumptions that justify an analysis of the costs of
quality?
A.Failures are caused
B.Prevention is more expensive
C.Performance can be learned
D.Rules of thumb don’t always work
E.Appraisal costs are less than prevention costs
Answer:
Which of the following is a critical element in the success of concurrent engineering?
A.Integrated computer-assisted design
B.Using automated guided vehicles
C.System-level design
D.Having an excellent forecasting system
E.The design-build-test cycle
Answer:
We would expect to see which of the following in an MRP system’s inventory
transactions file?
A.End items produced
B.Late/early delivery records
C.Scrap parts
D.Labor efficiency
E.Computer errors
Answer:
If the actual output of a piece of equipment during an hour is 500 units and it’s best
operating level is at a rate of 400 units per hour, which of the following is the capacity
utilization rate?
A.0.75
B.1.00
C.1.25
D.1.33
E.100
Answer:
Which of the following operations management technologies not only provides
automatic control of a machine, but also carries many tools that can be automatically
changed depending on the tool required for each operation and may also include a
product part shuttle system?
A.Machining centers
B.Automated materials handling (AMH) systems
C.Numerically controlled (NC) machines
D.Computer-aided design (CAD)
E.Electro-mechanical tool selection system (EMTSS)
Answer:
The producer’s risk associated with rejecting a high quality lot is denoted in acceptance
sampling with the Greek letter beta.
Answer:
The objectives of work center scheduling include which of the following?
A.Minimizing worker alienation
B.Provide variety to workforce
C.Following all the priority rules
D.Avoiding tradeoffs
E.Minimizing set-up costs
Answer:
In the five forces model, which of the following is not one of the five forces?
A.Buyer power
B.New technologies
C.Supplier power
D.Substitute products
E.Potential entrants
Answer:
Assume a fixed cost for a process of $100,000. The variable cost to produce each unit
of product is $10 and the selling price for the finished product is $50. Ignoring
inventory, how many units must the firm sell to break-even?
Answer:
You are planning an investment in equipment that will cost $100,000 but which will
reduce labor costs by $42,000 per year. What is the payback period of your investment?
Answer:
Explain how yield management works and why some companies are able to use it to
manage demand patterns?
Answer:
Standing in line to buy tickets for a basketball game where there are multiple windows
to buy tickets involves which type of queuing system Line Structure?
Answer:
Name the transportation modes discussed in the textbook.
Answer:
Distinguish between “dependent” and “independent” demand?
Answer:
Demand in for an item located in Level 3 of a product structure tree depends on demand
for an item in the next higher Level. What is that Level called?
Answer:
When arrivals occur in a purely random fashion at a service facility, what kind of
distribution does a plot of interarrival times yield?
Answer:
Answer: