The term “assembly line” refers to progressive assembly linked by some material
handling device.
A time series is defined in the text as chronologically ordered data that may contain one
or more components of demand variation: trend, seasonal, cyclical, autocorrelation, and
random.
A financially driven reason for outsourcing is that it can shorten cycle time.
One of the cost impact and payoff analysis tools from the operations consulting tool kit
is bottleneck analysis.
The term “electronic commerce” refers to the use of the Internet as an essential element
of business activity.
The term “enterprise resource planning (ERP)” can mean different things.
One of the many lean techniques that have been successfully applied in service firms is
the eliminating of unnecessary activities.
In a net change MRP system, requirements and schedules are considered rigid and
never updated.
One way to find a bottleneck is to run a capacity resource profile.
Nursing stations designed today are only circular in shape.
Which of the following costs are relevant to aggregate operations planning?
A. Sunk costs
B. Transaction costs
C. Backordering costs
D. Legal costs
E. Fixed costs
Which of the following is not a strategic use of the service-system design matrix?
A. Enabling systematic integration of operations and marketing strategy
B. Design of the service package
C. Comparing how other firms deliver specific services
D. Indicating evolutionary or life cycle changes that might be in order as the firm grows
E. Clarifying exactly which combination of service delivery the firm is in fact providing
In an overview of the major operations planning activities in a typical organization,
which of the following activities precedes aggregate sales and operations planning?
A. Process planning
B. Workforce scheduling
C. Master production scheduling
D. Materials requirements planning
E. Order scheduling
What is a work breakdown structure?
A. A list of the activities making up the higher levels of the project
B. A definition of the hierarchy of project tasks, subtasks, and work packages
C. A depiction of the activities making up a project
D. A Gantt chart
E. A structure that is incompatible with the critical path method
Which of the following are the recommended percentage groupings of the ABC
classifications of the dollar volume of products?A. A items get 15 percent, B items get
35 percent, and C items get 50 percent.
B. A items get 15 percent, B items get 45 percent, and C items get 40 percent.
C. A items get 25 percent, B items get 35 percent, and C items get 40 percent.
D. A items get 25 percent, B items get 15 percent, and C items get 60 percent.
E. A items get 20 percent, B items get 30 percent, and C items get 50 percent.
The ABC approach divides this list into three groupings by value: A items constitute
roughly the top 15 percent of the items, B items the next 35 percent, and C items the
last 50 percent.
Using the fixed-order-quantity model, which of the following is the total ordering cost
of inventory given an annual demand of 36,000 units, a cost per order of $80, and a
holding cost per unit per year of $4?A. $849
B. $1,200
C. $1,889
D. $2,267
E. $2,400
From Equation 20.3, Q = 1,200 = Square root of (2 x 36,000 x 80/4). Number of orders
per year = 36,000/1,200 = 30 x $80 = $2,400.
In general, which forecasting time frame best identifies seasonal effects?
A. Short-term forecasts
B. Quick-time forecasts
C. Long-range forecasts
D. Medium-term forecasts
E. Rapid-change forecasts
A company must perform a maintenance project consisting of seven activities. The
activities, their predecessors, and their respective time estimates are presented here:
Using CPM, what is the latest finish time for the last activity in this project (i.e., the
total time to complete the project)?
A. 9 days
B. 10 days
C. 11 days
D. 12 days
E. 13 days
A major competitive dimension that forms a company’s strategic operational
competitive position in their strategic planning is which of the following?
A. Cost or price
B. Focus
C. Automation
D. Straddling
E. Activity-system mapping
Which of the following is not one of the categories of manufacturing inventory?A. Raw
materials
B. Finished products
C. Component parts
D. Just-in-time
E. Supplies
Manufacturing inventory is typically classified into raw materials, finished products,
component parts, supplies, and work-in-process.
You know when you have arrived at the optimal solution in using the time-cost CPM
scheduling model analysis when what happens?
A. You have found the critical path.
B. You have run out of crash time.
C. You no longer have a linear relationship with costs.
D. You have reached the minimum total cost.
E. You have run out of crash costs.
The exponential smoothing method requires which of the following data to forecast the
future?
A. The most recent forecast
B. Precise actual demand for the past several years
C. The value of the smoothing constant delta
D. Overall industry demand data
E. Tracking values
Which of the following of Fisher’s product categories includes fashionable clothing,
personal computers, and other products that typically have a very brief life cycle?
A. Functional products
B. Dysfunctional products
C. Innovative products
D. Bullwhip products
E. Value density products
Which of the following industry types have high expected benefits from the application
of MRP?
A. Fabricate-to-stock
B. Fabricate-to-order
C. Assemble-to-stock
D. Continuous process
E. Service and repair parts
In the context of work assignment, what is infinite loading?
___________________________________________.
In what ways can ERP be used to strengthen the entire supply chain?
If the best operating level of a piece of equipment is at a rate of 400 units per hour and
the actual output during an hour is 300 units, what is the capacity cushion?
__________________
Why are learning curves useful in business?
Identify the two types of loops in causal loop analysis.
(1) ________________________________
(2) ________________________________
Name the four basic types of forecasting.
(1) ______________________________
(2) ______________________________
(3) ______________________________
(4) ______________________________