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 fixed costs, not variable costs.
Answer:
Choosing the target market in a service business is the decision of the front-line service
provider.
Answer:
The Shingo approach to quality control depends on a sophisticated method of
acceptance sampling.
Answer:
If you want to reduce process throughput time it has been suggested that you can
perform activities in the process in parallel.
Answer:
Shop-floor control (or production activity control) can involve expediting late and
critical orders.
Answer:
If a person performing a task has been achieving a 95 percent learning curve and you
know that the task will end after the 100th unit, the last unit produced will take 71.12
percent as much time as the first unit.
Answer:
The sociotechnical systems approach to job design attempts to develop jobs that adjust
the needs of the production process technology to the needs of the worker and work
group.
Answer:
The optimal strategy for innovative products is to utilize an efficient supply-chain.
Answer:
Uniform loading is a process of smoothing the production activity flow to dampen the
reaction waves that normally occur in response to schedule variations.
Answer:
Respect for people is a key to the Japanese improvement ideas in manufacturing.
Answer:
CAM is a software system that supports and supplants decision making by developing
decision alternatives, gathering and analyzing information required for evaluating
decision alternatives and identifying either the best decision or a set of good decisions.
Answer:
A necessary input to the material requirements planning (MRP) system is an inventory
records file.
Answer:
The value of the smoothing constant alpha in an exponential smoothing model is
between 0 and 1.
Answer:
Because the factors governing demand for products are very complex, all forecasts of
demand contain some error.
Answer:
Operations and supply management is significant since it relates to some of the
components of strategy.
Answer:
Which of the following is the stage in the operations consulting process that
immediately follows sales and proposal development?
A.Design, develop and test alternative solutions
B.Develop systematic performance measures
C.Present final report
D.Assure client satisfaction
E.Problem analysis
Answer:
A product structure tree can do which of the following?
A.Help to compute component usage
B.Reduce product scrap
C.Reduce labor overtime
D.Reduce regular time labor
E.Locate raw material supplies
Answer:
Which of the following is not an improvement-driven reason for outsourcing?
A.Improve management and control
B.Enhance effectiveness by focusing on what you do best
C.Improve risk management
D.Obtain expertise, skills and technologies not otherwise available
E.Acquire innovative ideas
Answer:
If the pessimistic duration of an activity is 10 and the optimistic duration is 4, what is
the variance for the activity time when using CPM analysis?
A.1
B.2.333
C.4.777
D.10.4
E.12
Answer:
In the history of operations management the use of continuous improvement and value
engineering started in what decade?
A.1940’s
B.1950-60’s
C.1970’s
D.1980’s
E.1990’s
Answer:
The capacity focus concept can be put into practice through a mechanism called which
of the following?
A.Best operating level (BOL)
B.Plants within plants (PWP)
C.Total quality management (TQM)
D.Capacity utilization rate (CUR)
E.Zero-changeover-time (ZXT)
Answer:
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.Low value-density products
Answer:
A company is concerned about the number of customers that have to wait for service in
their customer service department. Assume the rate at which customers are serviced is
12 per hour. Using the infinite queuing notion for the models presented in the textbook
which of the following is the mean time between arrivals?
A.12 minutes
B.6 minutes
C.2 minutes
D.1 minutes
E.None of the above
Answer:
Which of the following terms is used to describe the situation where individual pieces
of automation are brought together to in “total factory automation”?
A.Computer Integrated Manufacturing (CIM)
B.Automated materials handling (AMH) systems
C.Numerically controlled (NC) machines
D.Automated manufacturing planning and control systems (MP&CS)
E.Computer aided engineering (CAE)
Answer:
In the textbook Toyota’s Fujio Cho identified which of the following types of waste to
be eliminated?
A.Underproduction
B.Excess quality
C.Preventive maintenance
D.Product defects
E.Kaizen
Answer:
Which of the following files allows us to retrace a material requirement upward in the
product structure through each Level, identifying each parent item that created the
demand?
A.Planning bill of materials file
B.Modular bill of materials file
C.Super bill of materials file
D.Exception report file
E.Peg record file
Answer:
Which of the following industry types will not benefit greatly from the application of
MRP?
A.Fabricate-to-order
B.Assemble-to-stock
C.Assemble-to-order
D.Manufacture-to-order
E.None of the above
Answer:
One of the principles of reengineering is which of the following?
A.Quality at the source
B.Have those who use the output of a process perform the process
C.Do not select suppliers on the basis of price alone
D.Leverage high cost employees with lower cost employees
E.Downsize your headcount while outsourcing non-essential activities
Answer:
In the textbook Toyota’s Fujio Cho identified which of the following types of waste to
be eliminated?
A.Excess quality
B.Overproduction
C.Underproduction
D.Environmental
E.Over-thinking
Answer:
Which of the following is not an assumption of the basic fixed-order quantity inventory
model?
A.Ordering or setup costs are constant
B.Inventory holding cost is based on average inventory
C.Diminishing returns to scale of holding inventory
D.Lead time is constant
E.Demand for the product is uniform throughout the period
Answer:
A useful measure of inventory performance is called “dollar days”. In which of the
following areas are dollar days measurements not useful?
A.Marketing
B.R & D
C.Manufacturing
D.Project management
E.Purchasing
Answer:
In which of the following situations should we not use the transportation method of
linear programming?
A.To find a new site location for a plant
B.To minimize costs of shipping “n” units to “m” destinations
C.To maximize profits of shipping “n” units to “m” destinations
D.To determine which corner of a street intersection to locate a retail service facility
E.To locate a finished goods distribution warehouse
Answer:
You are hired as a consultant to decide if your client should purchase a new, highly
specialized, piece of equipment. The product to be produced by this equipment is
forecast to have a total world wide demand of 15,000 units over the entire product life.
The initial investment to acquire and install the equipment is $256,000. The variable
cost to produce each unit will be $15 and the selling price for the finished product will
be $30. Which of the following best describes the situation the firm is facing?
A.The company will recover its’ initial investment
B.The company’s total margin will be less than its’ investment
C.It’s a good investment
D.The break-even is lower than the 15,000 units that are expected to sell
E.All of the above
Answer:
Which of the following is a problem definition tool from the operations consulting tool
kit?
A.Plant tours/audits
B.Work sampling
C.Gap analysis
D.Balanced scorecard
E.Responsibility charts
Answer:
To take into consideration demand uncertainty in reorder point (R) calculations, what
do we add to the product of the average daily demand and lead time in days when
calculating the value of R?
A.The product of average daily demand times a standard deviation of lead time
B.A “z” value times the lead time in days
C.The standard deviation of vendor lead time times the standard deviation of demand
D.The product of lead time in days times the standard deviation of lead time
E.The product of the standard deviation of demand variability and a “z” score relating
to a specific service probability
Answer:
If you are going to develop an “R” chart based on range statistics and you are using a
sample size of 15 for your charting purposes. Which of the following is the upper
control limit D4 factor for the chart?
A.1.65
B.1.70
C.1.76
D.1.87
E.1.92
Answer:
If a vendor has correctly used marginal analysis to select their stock Levels for the day
(as in the newsperson problem) and the profit resulting from the last unit being sold
(MP) is $0.90 and the loss resulting from that unit if it is not sold (ML) is $0.50, which
of the following is the probability of the last unit being sold?
A.Greater than 0.357
B.Greater than 0.400
C.Greater than 0.556
D.Greater than 0.678
E.None of the above
Answer:
In the history of operations management the use of synchronous manufacturing
occurred in what decade?
A.1930’s
B.1940’s
C.1950-60’s
D.1970’s
E.1980’s
Answer:
A company can produce a product the first time at a cost of $2,500. If their 85 percent
Learning Curve allows them to reduce their costs on each product, what is the total cost
of producing 400 units of the new product?
Answer:
Two of the five essential conditions for linear programming to pertain to a real world
problem are linearity and homogeneity. Discuss why these are difficult to achieve in the
real world and how they might limit your confidence in the solution?
Answer:
The text describes 14 “Issues in facility location”. Name as many of these as you can.
Answer:
Distinguish between dependent and independent demand. How are these demands
treated differently?
Answer:
AS/RS and AGV are part of a category of automation called what?
Answer:
What is the effect of the lack of synchronization among supply-chain members called?
Answer: