In today’s competitive environment, effective supply chain management requires
absolute demand forecasts.
Mass production is characterized by the use of specialized equipment and workers with
limited skills.
Forecasting customer demand is often a key to providing good quality service.
Value analysis is often utilized by a multifunctional product design team as part of
design review.
An economic strategy for adjusting demand can include adjusting capacity or managing
demand.
Technology decisions that involve the outlay of funds is considered a capital
investment.
Outsourcing is a relatively new phenomenon used strictly by multinationals.
A p-chart is used to monitor the proportion defective in the output of a process.
Management and control of a companywide portfolio of projects is known as enterprise
project management.
A warehouse operation is an example of a physical transformation process.
Deming emphasized final product inspection as a way to improve process quality.
In general, projects are subject to less uncertainty than other types of processes.
Globalization has affected manufacturing but not service operations.
Core competencies tend to be processes and not products or technologies.
The number of kanbans needed to maintain control in a pull system can be calculated
from demand and lead time information.
The total length of time required to manufacture a product is called its cumulative lead
time.
A process is a group of unrelated tasks with specific inputs and outputs.
Carrying costs are more difficult to determine than ordering or shortage costs.
If the following jobs are sequenced according to the SLACK rule then job A would be
completed on day (assume zero for today’s date)
a. 8.
b. 7.
c. 15.
d. 12.
_______________________ is not a perceived advantage of radio frequency
identification (RFID) technology.
a. Loss of personal privacy
b. Reduced stock-outs
c. Prevention of fraud or theft
d. Lower distribution costs
If the following jobs are sequenced according to the FCFS rule then the mean tardiness
(in days) for all jobs is (assume zero for today’s date)
a. 5 days.
b. 8.33 days.
c. 10.6 days.
d. 25 days.
A firm has the following gross requirements for Item F. If ordering costs are $60 per
order and carrying costs are $0.50 per period.
If L4L ordering is used the planned order releases is
a. 40 in period 1 and 0 in period 3
b. 80 in period 2 and 60 in period 3
c. 60 in period 2 and 80 in period 3
d. 0 in period 1 and 40 in period 3
Given the information below, the number of available-to-promise units in period 2 is
a. 400
b. 150
c. 50
d. 0
If the quality of a process’s output is determined by classifying the output as being
defective or not defective, use a(n) ________control chart.
a.
b. R
c. c
d. p
A workstation must produce 400 units an hour. It takes 24 minutes to receive the
necessary material for production from the previous workstation. Output is moved
between workstations in containers holding 44 units. If the process uses a safety factor
of 10%, then the amount of safety stock on average would be
a. 16
b. 32
c. 8
d. 60
A company produces a product consisting of two components arranged as follows:
If both components must function for the product to function, then the product’s overall
reliability is
a. 0.950
b. 0.940
c. 0.930
d. 0.884
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 chase demand strategy is used the total hiring and firing costs for the production
plan is
a. $67,500
b. $135,000
c. $202,500
d. $337,500
Consider a production process that produces tires. A quality engineer has taken 15
samples, each containing 200 tires. The total number of defective tires over the 15
samples is 340. The centerline for the control chart is
a. 0.08
b. 0.11
c. 0.16
d. 0.21
Which of the following is not a principle for reducing setup times?
a. converting external setup to internal setup
b. converting internal setup to external setup
c. separating internal setup from external setup
d. performing setup activities in parallel
All of the following are inputs to the aggregate production planning process except
a. demand forecasts.
b. financial constraints.
c. sales plans.
d. capacity constraints.
The sequencing rule that minimizes average tardiness for a set of jobs to be processed
on one machine is
a. first-come-first served (FCFS).
b. longest processing time (LPT)
c. shortest process time (SPT)
d. due date (DDATE).
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 minimax regret decision criterion would be to
a. make the large investment.
b. make the medium investment.
c. make the small investment.
d. choose decreasing demand.
Consider a production process that produces batteries. A quality engineer has taken 20
samples each containing 100 batteries. The total number of defective batteries observed
over the 20 samples is 200. The LCL for the control chat constructed using two sigma is
a. 0.01
b. 0.04
c. 0. 12
d. 0.16
In a piece-rate wage system a worker’s pay is based on
a. total output.
b. job rating.
c. job classification.
d. total time.
Disadvantages of batch production include all of the following except
a. high per-unit costs.
b. frequent changes in product mix.
c. flexibility.
d. scheduling problems.
A work sampling study is being conducted on a loading machine in a warehouse. How
many observations should be taken if management wants to be 95% confident the
estimate is within + 6% of the actual proportion of time the loader is busy if
management believes the loading machine is in use 70% of the time?
a. 125 observations
b. 175 observations
c. 225 observations
d. 275 observations
A project consists of the following four activities with activity times in days:
Table CC
Which of the activities has the lowest crash cost per day?
a. A
b. B
c. C
d. D
Information technology supports supply chain integration through
a. information sharing and collaborative planning.
b. workflow coordination.
c. adoption of new methods and technologies.
d. All of these answer choices are correct.
What is quality of conformance from the producer’s perspective and how can it be
achieved?
What is a manufacturing cell and what is its purpose?
What is the difference between independent and dependent demand?
Briefly describe the two constraints under which assembly line balancing must operate.
Compare and contrast short-mid-range forecasts and long-range forecasts.