Archives: Quiz

1) Even though it is often the case that no cash outflows result when demand exceeds capacity, __________ can nevertheless be experienced in those circumstances. A.foreorder costs B.service costs C.shortage costs D.holding costs E.setup costs 2) Which of the following […]

1) Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week 6. An MRP planner has prepared the following table showing product structure, lead times (orders […]

1) Incorporating design for disassembly principles in product design helps firms with ___________ design issues. A.legal B.social C.reuse D.reverse engineering E.reengineering 2) Designing for recycling helps facilitate: A.reduced legal liability. B.compliance with regulatory environments. C.increased product reliability. D.reduced standardization costs. […]

1) Which of the following mechanisms for enhancing profitability is most likely to result from improving short-term forecast performance? A.increased inventory B.reduced flexibility C.higher-quality products D.greater customer satisfaction E.greater seasonality 2) Which item would be least likely to be ordered […]

1) In linear programming, sensitivity analysis is associated with: (I) the objective function coefficient. (II) right-hand-side values of constraints. (III) the constraint coefficient. A.I and II only B.II and III only C.I, II, and III D.I and III only E.I […]

1) Which statement best characterizes a typical search for location alternatives? A.Identify the best location choice. B.Minimize cost consequences. C.Maximize associated profits. D.Locate near markets. E.Identify acceptable locations. 2) A single-channel queuing system has an average service time of 16 […]

1) Which of the following is not an application of E-business? A.Internet buying and selling B.e-mail C.order and shipment tracking D.electronic data interchange (EDI) E.universal product codes 2) Process design that supports lean does not include: A.production flexibility. B.duplicate facilities. […]

1) Scheduled due dates are the result of: A.promises to customers. B.MRP processing. C.managerial decisions. D.all of the choices. E.our competitor’s promises. 2) The owner of Tastee Cookies needs to decide whether to lease a small, medium, or large new […]

1) Although lean systems tend to produce standardized product lines, to provide production variety without accompanying waste, lean producers often use __________ in __________. A.standardized parts; modular designs B.jidoka parts; kaizen designs C.modular parts; flexible designs D.capable parts; automated designs […]

1) Which of the following is not a benefit of using models in decision making? A.They provide a standardized format for analyzing a problem. B.They serve as a consistent tool for evaluation. C.They are easy to use and less expensive […]

1) The first step in developing location alternatives is identifying important factors. 2) Predetermined time standards use historical data from a company’s own files. Answer: FALSE Predetermined time standards involve the use of published data on standard elemental times. 3) […]

1) Departmental budgeting is an example of aggregate planning. 2) Removing the seasonal component from a data series (deseasonalizing) can be accomplished by dividing each data point by its appropriate seasonal relative. Answer: TRUE Deseasonalized data points have been adjusted […]

1) The theory of constraints has a goal of maximizing flow through the entire system. 2) A regenerative MRP system is one that is updated continuously, every time there is a schedule change. Answer: FALSE Regenerative systems are updated periodically. […]

1) The naive forecast can serve as a quick and easy standard of comparison against which to judge the cost and accuracy of other techniques. 2) The sampling distribution can be assumed to be approximately normal even when the underlying […]

1) In a lean environment, anything not essential to the product or process is viewed as waste. 2) The assignment of work to specific machines and people are examples of aggregate planning. Answer: FALSE Assigning work to specific machines or […]

1) In the single-period model, the service level is the probability that demand will not exceed the stocking level in any period. 2) Applied research has the objective of achieving commercial applications for new ideas. Answer: TRUE Applied research is […]

1) Information technology is the key to success of global supply chains. 2) One potential disadvantage of self-directed teams is higher training costs. Answer: FALSE Training costs might be in different areas, but they won’t necessarily be higher. 3) Acceptance […]

1) Infinite loading and finite loading are two major approaches used to load work centers. 2) A strategy that emphasizes convenience for the customers would probably select a single very large facility. Answer: FALSE Convenience for customers would tend to […]

1) Organizations that are capable of responding quickly to changing requirements can use a shorter forecast horizon and therefore benefit from more accurate forecasts. 2) According to learning curve theory, for certain kinds of tasks the cost per unit decreases […]

1) Creating an effective supply chain requires linking the marketing, distribution, and supplier channels. 2) A run test checks a sequence of observations for randomness. Answer: TRUE Run tests can be used to detect nonrandomness in sequences of observations. 3) […]

1) The goal of waiting-line management is to eliminate customer waiting lines. 2) The term “computer-aided manufacturing” refers primarily to the use of robotics in process control. Answer: FALSE CAM involves using computer technology to control various facets of the […]

1) Using third-party logistics involves using your organization’s logistics function to ship to customers that are not officially part of the supply chain. 2) Standardization refers to the extent to which there is absence of variety in a product, service, […]

1) A consumer survey is an easy and sure way to obtain accurate input from future customers since most people enjoy participating in surveys. 2) One concern in the design of production systems is the degree of standardization. Answer: TRUE […]

1) The transportation model assumes shipping cost per unit is the same regardless of the number of units shipped (there are no quantity discounts). 2) In order to update a moving average forecast, the values of each data point in […]

1) The lean philosophy recognizes that some work-in-process inventories are a necessary investment to allow for smooth work flow. 2) The maximax approach is a pessimistic strategy. Answer: FALSE Maximax is optimistic. 3) The probability that the project will go […]

1) A c-chart is used to monitor the total number of defectives in the output of a process. 2) A worker-machine chart can be used to determine how many machines an operator can manage. Answer: TRUE Worker-machine charts highlight when […]

1) Preventive maintenance is additional maintenance done immediately after a breakdown has occurred to help prevent any further breakdowns. 2) The elimination of idle time on both bottleneck and non-bottleneck operations must be accomplished to optimize output. Answer: FALSE Eliminating […]

1) Kanban is the Japanese term for autonomation. 2) Reorder point models are primarily used for dependent-demand items. Answer: FALSE Reorder point models are primarily used for independent-demand items. 3) As an abstraction of reality, a model is a simplified […]

1) Availability cannot be increased without improving the time between breakdowns. 2) The design of the supply chain and establishing partnerships with vendors and distributors are examples of operational issues in a supply chain. Answer: FALSE These are tactical responsibilities. […]

1) When operations are often bottlenecked, additional planned idle time will improve the throughput in those areas. 2) Avoiding bottlenecks is the primary goal of product design. Answer: FALSE Avoiding bottlenecks is a primary consideration in facilities layout. 3) Approximately […]

1) Many lower-level jobs are monotonous and boring. 2) Utilization is defined as the ratio of effective capacity to design capacity. Answer: FALSE Utilization is the ratio of output to design capacity. 3) An objective function represents a family of […]

1) Solving quality problems can lead to lower inventory levels. 2) Engineering changes should not be made in the six-month period following the introduction of a new product. Answer: FALSE Engineering changes should be minimized by doing a better job […]

1) Most likely time generally is more than optimistic time. 2) Sampling plans are designed considering both the cost and time required for the inspection. Answer: TRUE These factors must be weighed in formulating the sampling plan. 3) When considering […]

1) A c-chart is used to monitor the number of defects per unit for process output. 2) No stopwatch is required in a work sampling study. Answer: TRUE In a work sampling study, observations are made at random points in […]

1) The maximin approach involves choosing the alternative with the highest payoff. 2) Net requirements equal gross requirements minus safety stock. Answer: FALSE If safety stock is required, net requirements will be higher. 3) A dental office with two professionals […]

1) Statistical process control is the measurement of rejects in the final product. 2) Forecasts based on time-series (historical) data are referred to as associative forecasts. Answer: FALSE Forecasts based on time-series data are referred to as time-series forecasts. 3) […]

1) Product liability means that a manufacturer is liable for any injuries or damages caused by a faulty product because of poor workmanship or design. 2) Convenience, reliability, and assurance are dimensions of service quality. Answer: TRUE These are dimensions […]

1) Methods analysis cannot be done for new jobs (ones that do not yet exist) since it requires observation of the process. 2) The overall objective of inventory management is to achieve satisfactory levels of customer service while keeping inventory […]

1) In order to determine the probability of timely project completion, it is sometimes necessary to take into account paths other than the critical path. 2) Deterministic networks use three time estimatesshortest, most likely, and longestfor each activity in order […]

1) A shadow price indicates how much a one-unit decrease/increase in the right-hand-side value of a constraint will decrease/increase the optimal value of the objective function. 2) Flow-shop scheduling is used in high-volume systems. Answer: TRUE Flows shops are high-volume […]

1) The assignment method is limited to a maximum of two jobs per resource. 2) The single-period model can be very helpful in determining how much to order. Answer: TRUE The single-period model helps determine how many to order. 3) […]

1) A maximization problem may be characterized by all greater than or equal to constraints. 2) The main issue in the design of process layouts concerns the relative positioning of the departments involved. Answer: TRUE Designing process layouts involves the […]

1) Global supply chains make purchasing easier because there are more options. 2) Global competition really only applies to multinational organizations. Answer: FALSE Domestic-only organizations experience competition from organizations in other countries. 3) A schedule chart depicts the loading and […]

1) Forecasts of future demand are used by operations people to plan capacity. 2) A control chart is a visual representation of the various states in a process. Answer: FALSE A control chart is a visual representation of the output […]

1) The normal time in time study is obtained by multiplying the observed time by the performance rating. 2) Government statistics are a good source of data about productivity trends in the service sector. Answer: FALSE The service sector is […]

1) Service involves a much higher degree of customer contact than manufacturing. 2) The break-even quantity can be determined by dividing the fixed costs by the difference between the revenue per unit and the variable cost per unit. Answer: TRUE […]

1) One of the primary output reports of MRP concerns changes to planned orders. 2) If a firm’s product mix is 60 percent of product A and 20 percent each of products B and C, an optimal mix-model production schedule […]

1) Applied research is the major R&D effort of business organizations because of their desire for commercial applications. 2) Environmental scanning is a search for events or trends that present either threats or opportunities to the organization. Answer: TRUE These […]

1) Seasonal relatives can be used to deseasonalize data or incorporate seasonality in a forecast. 2) Ergonomics is important for preventing common workplace injuries such as back injuries and repetitive-motion injuries. Answer: TRUE Ergonomics is a discipline that focuses on […]

1) The single-period model can be very helpful in determining when to order. 2) A single-period model would be used mainly by organizations going out of business. Answer: FALSE The single-period model applies to many regularly occurring circumstances. 3) The […]