_____ is the act of quantifying the performance of organizational units, goods and
services, processes, people, and other business activities.
a. Measurement
b. Forecasting
c. Fulfillment
d. Deployment
Answer:
In the context of the perspectives of a value chain, product and service guarantees,
contract negotiations and consulting services would be considered as _____.
a. preproduction services
b. production processes
c. postproduction services
d. after-sales services
Answer:
Table 1Statistical Process Control (SPC) Problem Data for Service Waiting Times
In Table 1, the sample values represent service waiting times in minutes. For the
R-chart, what is the value of UCLR?
a. Less than or equal to 1.5
b. Greater than 1.5 but less than or equal to 2.0
c. Greater than 2.0 but less than or equal to 2.5
d. Greater than 2.5
Answer:
James, the floor manager at a local store of a national home improvement chain
evaluates their inventory system. He chooses the patio blocks to be examined as the
first item. The historical supply and demand data for this item indicates a constant lead
time of 16 days. Demand per day (d) is normally distributed with a mean demand of
2000 per day and standard deviation of 240 per day. He plans to set the service level at
90 percent during lead time.
a. What is the average demand during lead time?
b. What is the amount of safety stock of blocks he should keep on hand?
c. What is the order point he should use?
Answer:
Which of the following is NOT TRUE regarding aggregate planning?
a. Large number of alternatives can be developed.
b. Good solutions using spreadsheets can be found by trial-and-error method.
c. Seasonal fluctuations in demand can be accommodated.
d. Costs are sunk and irrelevant.
Answer:
Setting order sizes and schedules for individual subassemblies and resources by week
or day fits best with which level of the generic framework for resource planning?
a. Aggregate planningLevel 1
b. DisaggregationLevel 2
c. ExecutionLevel 3
d. Shop floor controllingLevel 4
Answer:
Airline revenue per passenger mile and hotel revenue per full-time employee are
examples of _____.
a. reliability
b. value of a loyal customer
c. sustainability
d. productivity
Answer:
The shortest processing time (SPT) rule:
a. maximizes the number of jobs in the system.
b. maximizes average flow time.
c. minimizes resource utilization.
d. minimizes work-in-process inventory.
Answer:
A(n) _____ is a sequence of activities that is intended to create a certain result.
a. process
b. service
c. variant
d. inventory
Answer:
A manufacturing company has a production process that has a target percentage of
nonconformance as 4 percent which was developed based on numerous samples of 200
observations each. They want to develop control charts using 3 standard deviation
limits.
a. What is the center line for the p-chart?
b. What is the upper control limit for a p-chart?
c. What is the lower control limit for a p-chart?
Answer:
Rose is in charge of the advertising program for Proctor & Gamble’s new laundry
detergent. She has defined the advertising program as a project with the following
characteristics. The goal is to complete the project on time and within budget, or she
may not have this job next yearthe pressure is on!
Draw the project network in the space below if you want. BLANK SPACES
The total normal cost of the project is:
a. less than $50,000.
b. more than $50,000 but less than or equal to $75,000.
c. more than $75,000 but less than or equal to $100,000.
d. more than $125,000.
Answer:
Which of the following is NOT a principal dimension of the servicescape?
a. Ambient condition
b. Process and job design
c. Spatial layout and functionality
d. Signs, symbols, and artifacts
Answer:
All of the following relate to Six Sigma EXCEPT:
a. project team deployment to improve profitability and reduce non-value-added
activities.
b. flexibility to demand volume changes and trends.
c. creating highly qualified process improvement experts.
d. setting stretch objectives for improvement.
Answer:
Work standards _____.
a. improve motivation if set by managers
b. increase variability if set by workers
c. are best set informally
d. work best when designed by workers
Answer:
Which of the following statements concerning the economic order quantity (EOQ)
model is NOT TRUE when the unit holding cost increases?
a. The economic order quantity will decrease.
b. The number of orders per year will increase.
c. Annual ordering costs will increase.
d. Sunk costs will decrease.
Answer:
A local bank has two drive-through teller windows with an essentially unlimited queue
length. They estimate that the arrival rate during their most busy time will average
about 40 cars per hour. They also estimate they can serve an average of 50 cars per
hour. Management wants to make sure that the system is operating efficiently.
a. What is the probability that there will be no cars in the system?
b. On average, how many cars are in the system?
c. How long would a car be waiting (in seconds) in the drive-through, on average?
Answer:
A supplier is producing a machined part for the transmission of a vehicle. The upper
specification limit is 0.135 cm, and the lower specification limit is 0.075. The process
standard deviation for the process that makes this part is 0.005, and the process average
is 105. What conclusion can be drawn from these process capability data?
a. The process is centered and capable.
b. The process is not centered and capable.
c. The process is centered and not capable.
d. The process is not centered and not capable.
Answer:
Which of the following is NOT a common process design improvement strategy?
a. Increasing revenue
b. Decreasing agility
c. Decreasing cost
d. Decreasing process flow time
Answer:
As a front-desk manager of a mid-market hotel, your shift received 29 customer
complaints last week. A total of 428 guests stayed in the hotel over the past week (7
days) with 12 front-desk customer touch points or moments of truth. The epmo is
_____.
a. less than 200
b. more than or equal to 200 but less than 400
c. more than or equal to 400 but less than 600
d. more than or equal to 600
Answer:
A(n) _____ is a promise to reward and compensate a customer if a service upset occurs
during the service experience.
a. service guarantee
b. customer-contact requirement
c. service recovery
d. empowerment
Answer:
Which of the following is NOT a criterion for evaluating job sequencing rules?
a. Average flow time
b. Lateness
c. Tardiness
d. Sum of processing times
Answer:
In a two-resource sequencing problem:
a. the makespan is the same for any sequence of jobs.
b. flow time is maximized.
c. the goal is to minimize makespan.
d. each job can be processed by either resource first.
Answer:
A local company makes athletic clothing and they are preparing aggregate production
plans on a quarterly basis for the upcoming year for their line of women’s wear. They
have the following information available to develop a level production and a chase
demand plan:
Current number of employees = 25
Number of working days per quarter = 65 days
Number of hours per day per person = 8 hours
Labor standard to produce one unit = 5 hours
Demand for four quarters respectively: 12,300, 12,500, 12,200, and 13,000 units
Cost of hiring a worker = $800
Cost of laying off a worker = $500
Inventory-carrying cost per unit per year = $60
a. Using a level production plan, how many workers are needed each quarter?
b. For a chase demand plan, how many workers are needed each quarter respectively?
c. What is the average inventory-carrying cost using a level production plan?
d. What is the total cost to hire workers under a chase demand plan?
Answer:
A special project in a manufacturing company has the following master production
schedule (MPS) for the next eight weeks:
The weekly fabrication and welding capacity (in hours) available and production
standards (in hours per unit) are:
a. What is the percentage utilization of the fabrication capacity in Week 5?
b. What is the percentage utilization of the welding capacity in Week 2?
c. In which weeks are the welding area requirements over capacity?
Answer:
The point in the supply chain that separates the push system from the pull system is
called the _____.
a. point of separation
b. push-pull boundary
c. postponement site
d. center of push-pull system
Answer:
Jude is in charge of the advertising program for the Boston Red Sox baseball team
during their spring training in Fort Myers, Florida. He has defined the advertising
program as a project with the following characteristics. The goal is to fill all stadium
seats during the spring training season or he may not have this job next yearthe pressure
is on!
If activity C is delayed by 2 weeks, then the revised earliest project completion time is:
a. 13 weeks.
b. 14 weeks.
c. 15 weeks.
d. 17 weeks.
Answer:
A(n) _____ produces goods in advance of customer demand using a forecast of sales
and moves them to points of sale where they are stored as finished goods inventory.
a. responsive supply chain
b. efficient supply chain
c. push system
d. pull system
Answer:
A company is faced with seven tasks that have to be processed through two work
centers, work center I and then center II. Assume work center I works continuously and
that they are using Johnson’s rule. Work centers need not change over to new jobs at the
same time. Data appears below in hours:
a. What is the sequence of tasks?
b. What is the time in hours to complete all the tasks in both work centers?
c. What is the total idle time (in hours) for work center I?
d. What is the total idle time (in hours) for work center II?
Answer:
A multiple-server queuing model has three servers with a mean service time of five
customers per server per hour. It has been determined that arrivals will average 12 per
hour. Arrivals follow a Poisson distribution and service times follow an exponential
distribution.
a. Calculate the probability that all three service channels are idle.
b. Determine the probability of five customers in the system.
c. Determine the average number of customers waiting for service.
d. Determine the average number of customers in the system.
e. Determine the average time a customer spends waiting for service.
f. Determine the average time a customer spends in the system.
g. Determine the probability an arriving customer will wait for service.
Answer:
_____ is NOT a 5S principle that creates a well-organized work environment.
a. Stabilize
b. Standardize
c. Shine
d. Sustain
Answer:
A computer manufacturing company wants to develop a monthly plan for shipping
finished products from three of its manufacturing facilities to three regional
warehouses. It is thinking about using a transportation LP formulation to exactly
matched capacities and requirements. Data on transportation costs (in dollars per unit),
capacities, and requirements are given below:
a. How many variables are involved in the LP formulation?
b. How many constraints are there in this problem?
c. What is the constraint corresponding to plant 2?
Answer:
The following data represents the home mortgage loan interest rates at a local bank over
an eight-month period:
Answer:
The bill of materials (BOM) for end item A is shown below:
_____________________
If A has a gross requirement to build 250 units and an on-hand inventory for A of 40,
determine the net requirement for D if its current on-hand inventory balance for D is
200 (all other components have no (zero) current inventory).
a. Less than or equal to 1,000 units
b. Greater than 1,000 but less than or equal to 1,500 units
c. Greater than 1,500 but less than or equal to 2,000 units
d. Greater than 2,000 but less than or equal to 2,500 units
Answer:
Which of the following statements is TRUE?
a. The level of safety stock maintained decreases when the desired cycle service level
increases.
b. The level of safety stock maintained decreases when the standard deviation of
demand during lead time increases.
c. In a fixed-period inventory system, the value of Q is kept the same from one cycle to
another.
d. In a fixed-order-quantity system, the reorder point is the average demand during the
lead time, plus the additional safety stock when demand is uncertain.
Answer:
A 4th of July celebration T-shirt for this year will cost festival organizers $12 each and
will sell for $25 on or before July 4. Any unsold T-shirts can usually be disposed at a
discount after the festival for $5 each. If demand is normally distributed with a mean of
1,800 T-shirts and a standard deviation of 75, how many T-shirts should be ordered?
Answer:
Because of the amount of resources required, a kaizen blitz is generally performed
outside of normal working hours over several weeks or months.
Answer:
When several products share common facilities, product sequencing affects cost.
Answer:
Discuss the seven categories of the Malcolm Baldrige National Quality Award.
Answer:
Short-term capacity fluctuations necessitate changes in schedules. List at least five
factors affecting short-term capacity.
Answer:
The goal-post model of conforming to specifications by specifying a nominal
dimension and a tolerance is the basis for calculating the Taguchi loss function.
Answer:
Explain Little’s Law and how it can be used.
Answer:
Lot sizing rules on a parent item do not affect the gross requirements of all lower level
component items.
Answer:
Global value chains face higher levels of risk and uncertainty, requiring more inventory
and day-to-day monitoring to prevent product shortages.
Answer:
The critical path is the sequence of activities that takes the longest time.
Answer:
The predominant layout type used in hospitals is the fixed-position layout.
Answer:
Opportunity cost of capital is an example of ordering cost.
Answer:
Describe the market introduction/deployment step of an integrated framework for goods
and service design.
Answer:
Given the information below, complete the materials requirements planning (MRP)
record and explain what it tells the inventory analyst to do.
Answer:
As output decreases for a constant level of input, productivity also decreases.
Answer:
The following network shows all the major activities on the circles (nodes). Each node
contains time estimates in weeks.
Complete the following table.
Answer:
Discuss the two different sides of the debate over work standards.
Answer: