Archives: Quiz

The LCFS and Johnson’s priority rules are basically the same except LCFS uses due dates as a major determiner of job sequence. Answer: In exponential smoothing, it is desirable to use a higher smoothing constant when forecasting demand for a […]

MRP is based on dependent demand. Answer: One methodology used to evaluate equipment investment decisions where the investment entails a large initial investment, fixed costs and variable costs is break-even analysis. Answer: TRUE Which of the following statements holdsTRUE for […]

“Available to promise” is a term referring to unsold finished goods inventory. Answer: For an activity in a Single Time Estimate CPM analysis, the Early Finish time is 8 and the Late Finish time is 10. Which of the following […]

Industrial robots are programmable, multifunctional machines that may be equipped with an end effector. Answer: Sunk costs are expenses or investments that continue to exist and do not change regardless of the decision. Answer: TRUE Job design is defined as […]

One of the current issues of operations and supply management is decreasing “commoditization” of suppliers. Answer: You time someone completing a single task the first time at 10 minutes and the second time they do the task it takes 9 […]

Because a Level production strategy does not require adjustment in the short-to-medium term, aggregate sales and operations planning is not required. Answer: Most project work is controlled by PERT or CPM and thus team leadership is less crucial than in […]

The optimal strategy for functional products is to utilize a responsive supply-chain. Answer: Complex projects are often subdivided into a series of tasks that are typically configured to be not longer than several months in duration. Answer: TRUE In the […]

Finding the optimal routing for a product that must be processed sequentially through several machine centers, with each machine in a center having its own cost and output characteristics cannot be solved using linear programming. Answer: Make-to-stock production processes can […]

In a two-bin system for inventory, items are used from one bin and the second bin provides a large enough amount to ensure that the stock can be replenished before running out. Answer: A key decision point in the generic […]

Finding the optimal combination of products to stock in a retail store cannot be solved using linear programming. Answer: A business education is complete with an understanding of modern approaches to managing operations. Answer: FALSE One form of gap analysis […]

In a forecasting model using simple exponential smoothing the data pattern should remain stationary. Answer: Profitability in consulting firms is achieved by leveraging the skills of the partners through use of midlevel and junior consultants. Answer: TRUE The second step […]

McDonald’s fast food restaurants have traditionally used a Make-To-Order production process. Answer: JIT production means that we produce the product before it is required so the customer does not wait for the product. Answer: FALSE AS/RS stands for automated storage […]

Safety stock can be computed when using the fixed-order quantity inventory model by multiplying a “z” value representing the number of standard deviations to achieve a service Level or probability by the standard deviation of daily demand. Answer: Break-Even Analysis […]

The objective of strategic capacity planning is to determine the overall capacity level of capital intensive resources (including facilities, equipment and overall labor force size) that best supports the company’s long-range competitive strategy. Answer: The process when a company seeks […]

While benchmarking is an inward looking process of quality improvement, continuous improvement is an outward looking process that extends outside the organization. Answer: Firms that make multiple products can produce the same number of each product with a given level […]

Facility location analysis considers the competitive imperative of a favorable business climate as indicated by the presence of other companies in the same industry. Answer: Break-even analysis can only be used in production equipment decision making and deals solely with […]

CPM is an abbreviation for Critical Path Method. Answer: In Japan we would expect a focused factory to be small and have only somewhere between 30 and 1,000 workers. Answer: TRUE Heijunka is a Japanese word that means to smooth […]

“Informating” ordinary workers means using electronic methods to give them instructions. Answer: The fixed-order quantity inventory model is more appropriate for important items such as critical repair parts because there is closer monitoring and therefore quicker response to a potential […]

Work groups can handle many production problems better than management if they are permitted to make their own decisions on scheduling and work allocation. Answer: A shop-floor control system is a system that uses data from the shop floor as […]

An input to the material requirements planning (MRP) system is an inventory records file. Answer: The capability index is used to gauge economic changes in service systems. Answer: FALSE We use the capability index to measure how well our process […]

Investors pay close attention to efficiency and productivity measures like net income per employee because they are interested in how well the firm manages its workforce relations. Answer: A worker can be efficient without being effective. Answer: TRUE Efficiency means […]

There are no differences in strategic and tactical forecasting. A forecast is a mathematical projection and its ultimate purpose should make no difference to the analyst. Answer: Break-Even Analysis can only be used in production equipment decision making when dealing […]

Group technology is a philosophy wherein similar parts are grouped together and the processes required to make the parts are arranged as a work cell. Answer: Statistical process control involves testing random samples of output from a process to determine […]

Earned Value Management (EVM) is a technique for measuring project progress in an objective manner. Answer: A BOM file is often called a product structure file or product tree because it shows how a product is put together. Answer: TRUE […]

Inventory turn values that are considered good differ by industry and the type of products being handled. Answer: Multiple regression analysis uses several regression models to generate a forecast. Answer: FALSE Multiple regression analysis, (is where) a number of variables […]

When a firm’s design capacity is less than the capacity required to meet its demand, it is said to have a negative capacity cushion. Answer: The three main inputs to an MRP system are the bill of materials, the master […]

MRP is most valuable where a number of products are made in batches using the same productive equipment. Answer: Facility location analysis considers the competitive imperative of lowest total cost. Answer: TRUE The objective is to select a site with […]

The critical path in a project is that sequence of activities that consume the longest amount of time in a project network of activities. Answer: Capacity can be defined as the ability to hold, receive, store, or accommodate. Answer: TRUE […]

The approach that advocates making revolutionary changes as opposed to evolutionary changes is called creation theory. Answer: Little’s law can be thought of as a relationship between units and time. Answer: TRUE We can think of Little’s law as a […]

The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to become more “lumpy.” Answer: The standard fixed-time period model assumes that inventory is never counted but determined by EOQ measures. Answer: […]

Because little or no inventory is carried in a service operation, it is easy to separate the operations management functions from marketing in services. Answer: A rate fence is a person who books airline seats at low rates far in […]

Capturing information directly from the source through such systems as point-of-sale, radio-frequency identification tags, bar-code scanners, and automatic recognition has had little impact on Operations and Supply Chain Management. Answer: A free trade zone operates under different rules and laws […]

One of the many lean techniques that have been successfully applied in service firms is the eliminating of unnecessary activities. Answer: A matrix project structure is often referred to as a ‘skunkworks.” Answer: FALSE A pure project is nicknamed skunkworks. […]

The aggregate operations planning variable “inventory on hand” refers to the balance of unused inventory carried over from the previous time period. Answer: Attributes are those quality characteristics that are classified as either conforming or not conforming to specification. Answer: […]

JIT manufacturing forces a firm to work with a lower water level despite safety hazards. Answer: The focus in the make-to-stock environment is on providing finished goods where and when the customers want them. Answer: TRUE The focus in the […]

Sharing capacity is a common source of external capacity. Answer: The Baldrige National Quality Award was started under the direction of the National Institute of Standards and Technology. Answer: TRUE Helping the quality movement along is the Baldrige National Quality […]

Aggregate sales and operations planning occur in a company about every 3 to 18 months. Answer: Fixed-order quantity inventory models are “event triggered.” Answer: TRUE The basic distinction is that fixed-order quantity models are “event triggered” and fixed-time period models […]

Project management software available today combines CPM and other scheduling aids, like Gantt charting, to aid in tracking progress of project completion. Answer: Safety stock can be computed when using the fixed-order quantity inventory model by multiplying a “z” value […]

The consumption tax rate is set so that it raises the same total revenue from the two persons as the 15% income tax ($30,000). Refer to Table 9.3. In the middle block, person C’s tax must be ____. Answer: Starting […]

If the tax on a good doubles, T doubles, ΔQ ____, and the efficiency loss _____. Answer: Assume there is no externality. The inefficiency from the subsidy equals the area of a ___ to the ___ of the intersection of […]

Under a defined-benefit plan from the government, the worker will not receive a retirement benefit if ____. Answer: Explain why a retail sales tax or a value-added tax is regressive. What can be done to reduce its regressivity? Is there […]

The official poverty line is adjusted for ____ and ____. Answer: Under NUBAR, each year Congress must enact a ____ budget for the ____ fiscal year that ______ estimate would be balanced if ____ year’s unemployment rate is normal. Answer: […]

Self-interested affluent suburbanites should support state taxes to fund grants to cities for ______. Answer: A state uses a variable matching grant to induce all districts to _____ and to reduce _____ among districts. Answer: spend more on education; inequality […]

Line #4 in the tax return is ___. Answer: Public schools in affluent suburbs feel pressure to perform well because parents _____. Answer: can afford private schools Public schools in poor neighborhoods would feel more pressure to perform well if […]

According to economists, is a value-added tax a consumption tax? Answer: Public schools in poor city neighborhoods feel less pressure to perform well because parents ___. Answer: can’t afford private schools Insurance reduces the ___ of medical care to patients […]

If the supply curve of X is steep and the demand curve is flat, then a $2 tax on the producers of X raises price ___ than $1 and most of the burden of the tax falls on the ___. […]

A tax on the producers of a good shifts A. up the demand curve. B. down the demand curve. C. up the supply curve. D. down the supply curve. Answer: Refer to Table 11.1. The district’s price for the low-income […]

With no policy, each firm emits 120 tons of carbon. As H reduces its emissions from 120 to 0, its marginal abatement cost (MAC) rises from $0 to $480; as L reduces its emissions from 120 to 0, its MAC […]

If three people vote pair-wise between thin, intermediate, and thick, then there will not be a clear winner if one person’s preferences have a ____. A. single-valley B. double-valley C. single-peak D. double-peak Answer: A progressive tax ___ and causes […]

The household income tax could be converted into a household consumption tax by letting households deduct ____. A. saving B. charitable contributions C. mortgage interest D. state and local property and income taxes Answer: In affluent towns, who benefits most […]