Crossdocking eliminates the receiving and shipping functions of a distribution
warehouse while still performing its storage and order picking functions.
For projects whose activities have probabilistic time estimates, the probability of
completing the project in a specified amount of time is determined by the standard
deviation for the critical path only.
In general, when using large dollar amounts, always use the cents, but small dollar
amounts can be rounded off to whole numbers.
To remain competitive, companies must be innovative and bring out new products
regularly.
Studies have shown that companies that invest in new technologies tend to improve
their financial position over those that do not.
A nation’s productivity is not directly related to its standard of living.
A product structure tree is a visual depiction of the subassemblies and components that
are needed to produce a finished product.
If an order is not scheduled to arrive in time, the planner tries to cancel the order.
The time between order placement and the receipt of goods is called lead time.
Being able to keep costs low while changing the volume of production is an example of
flexibility.
The probability of completing a project in a specified amount of time is being
calculated. For a particular path through the project, the z-value shows the path’s
number of standard deviations that the specified time is past the expected path
completion time.
The purpose of the aggregate plan is to develop production rates and authorize
resources that accommodate the engineering plan.
Suppose that the formula in cell C8 is ‘=H2+$P6’. If cell C8 is copied to cell E10, the
formula in cell E10 will be ‘=J4+$P8’.
Repetitive operations are used to produce many different products with varying process
requirements in lower volumes.
Often the best quality problem resolution solution involves a complex answer as the
organization is a complex organization.
One source of new product ideas is a product manager.
Work measurement determines how long it should take to do a job.
In product layouts, the material moves continuously and uniformly through a series of
workstations until the product is completed.
One reason for models is the need to make a decision.
The ____________ is (are) checked for the materials on hand and those that need to be
procured.
a) master production schedule
b) bill of material
c) inventory records
d) material inventories
e) promised deliveries
During the 1970s and 1980s, firms from which country provided the most serious
competitive threat to U.S. companies?
a) Germany
b) Canada
c) Mexico
d) Japan
e) United Kingdom
In monitoring the progress of a project, it is important to focus on
_____________________________.
a) activities on the critical path
b) activities with long completion times
c) activities with large slacks
d) initiating events
e) terminating events
Expected values are
a) forecasted sales prices
b) forecasted revenues
c) average value of chance events
d) weighted value of the chance events
e) exponential value of the chance events
Which Excel tool provides solutions to Linear Programs?
a) Solver
b) Answer
c) Simplexer
d) Computer
e) Goal Seek
Given the following data:
The end product J is made from components K, L, and M. K is made from N and O. O
is made from P and Q.
(a) What is the replenishment lead time for J, assuming there are no inventories?
(b) Calculate the gross requirements for each of the components if the company plans to
build 10 of its J model. Assume that there are no beginning inventories.
(c) Calculate the gross requirements for each of the components if the company plans to
build 10 of its J model if you have these beginning inventories: 60 N and 60 O.
(d) What is the replenishment lead time if the company plans to build 10 of its J model,
assuming the beginning inventories given in (c) above?
Product tolerances are often called
a) SPC
b) Product drawings
c) Product descriptions
d) Process capability
e) Product specifications
Consider a production line with five stations. The first station can process a unit in 8
minutes. The second station has two identical machines, each of which can process a
unit in 18 minutes (each unit only needs to be processed on one of the two machines).
The third station can process a unit in 4 minutes. The fourth station has two different
machines, one can process a unit in 5 minutes, and the other one can process a unit in 9
minutes (each unit needs to be processed on both machines). The fifth station can
process a unit in 10 minutes. Which station is the bottleneck station?
a) Station 1
b) Station 2
c) Station 3
d) Station 4
e) Station 5
Capacity requirements planning enables the company to evaluate
____________________.
a) employee morale
b) its suppliers
c) its manufacturing costs
d) quality
e) how well it is using its critical work centers
Human intelligence is not needed in which of the following steps of solving
optimization problems?
a) writing the problem formulation in words
b) writing the algebraic formulation of the problem
c) developing a spreadsheet model
d) solving the problem
e) interpreting the results
The least likely reason for a U.S. firm to choose to locate a factory in a foreign country
is _____________.
a) climate
b) natural resources
c) markets
d) cheaper suppliers
e) lower labor costs
How does Federal Express maintain its ability to compete on time during peak demand
periods?
a) it subcontracts overload to other firms
b) it purchases more planes
c) overtime
d) it uses a very flexible part-time workforce
e) it purchases more vans
Which of the following is not a valid reason for reducing the time spent finishing a
particular project?
a) deadlines
b) promised completion dates
c) penalty clauses for late completion
d) the project started too early
e) the need to put resources on a new project
What are small groups of employees who meet to identify, analyze, and solve
operational problems called?
a) traditional work groups
b) cross-functional teams
c) self-managed teams
d) problem-solving teams
e) special-purpose teams
The last project activity ES and LS times are:
a) different
b) calculated using termination rules
c) the same
d) required probabilistic calculations
e) involving risk analysis
The beginning inventory for any time period is equal to
_____________________________________.
a) safety stock plus gross requirements from the previous period
b) scheduled receipts plus projected available quantity
c) planned orders plus scheduled orders
d) projected available quantity from at the end of the previous period
e) gross requirements less scheduled orders
UPS is a company that hires a very high number of __________ and _________
workers.
a) steady, part time
b) older, wiser
c) seasonal, full time
d) part time, overtime
e) seasonal , part time
Compare the minimum versus maximum cycle time of a process.
What is throughput time if process velocity = 5 and Value-added time = 2?
List the major users of ERP systems.
What are the disadvantages of globalization?
The most important factor in the success or failure of TQM efforts is the _____ of the
organization’s _____.
Although there are a number of different model types, _________ exist among them.
What are the characteristics of a single-period inventory model?
Matt Dillon works for a production facility that makes ball point pens. His job is to
place the spring on the central ink insert. He is expected to process 200 inserts per hour.
The factory uses a Kanban production system with containers that hold 50 inserts. It
takes 30 minutes for Frank to receive the inserts from the previous work station. The
factory sets safety stock at 40 percent of demand during lead time. How many Kanbans
are needed?
Logo, Inc. can transport its own goods for a $140,000 annual cost and $25 per unit. A
logistics supplier offers a contract for a $100,000 annual cost at $30 per unit. What is
the indifference point?
What is the basic EOQ for a product whose annual demand is 48000 with setup cost
$15 and holding cost $5?