One difference between an assembly line process flow and a continuous process flow is
that on the assembly line the flow is discrete rather than continuous.
Answer:
An organizationally-driven reason for outsourcing is that it can improve effectiveness
by focusing on what the firm does best.
Answer:
The problem of keeping demand sufficiently high to keep a large factory busy is a sales
issue and not a diseconomy of scale.
Answer:
The customer grace period is a time-span having some specified level of opportunity for
the customer to make changes.
Answer:
In causal relationship forecasting leading indicators are used to forecast occurrences.
Answer:
A continuous process indicates production of discrete parts moving from workstation to
workstation at a controlled rate.
Answer:
Within a sustainability framework, the economic dimension of the triple bottom line
concept goes beyond just profit for the firm but also provides lasting economic benefit
to society.
Answer:
Because the world is becoming more highly interconnected, the proximity of an
important supplier’s plants is not crucial in supporting lean production methods.
Answer:
A third-party logistics company is a firm that manages all or part of another company’s
product delivery operations.
Answer:
Outsourcing is a common source of external capacity.
Answer:
Breakthrough projects are those that provide fundamental improvements to existing
products.
Answer:
An improvement-driven reason for outsourcing is that it can increase product and
service value, customer satisfaction, and shareholder value.
Answer:
In CPM the late start time estimate is the latest time you can start an activity and still
keep the entire project on schedule.
Answer:
A modular bill of materials is the term for an item that can be produced and stocked as a
subassembly.
Answer:
In designing a production layout a flexible line layout might have the shape of a “U”.
Answer:
A restriction in using linear regression is that it assumes that past data and future
projections fall on or near a straight line.
Answer:
Best operating level is the volume of output at which average unit cost is minimized.
Answer:
Which of the following is not one of the “number of interesting issues that arise in yield
management?”
A. Pricing structures must appear logical to the customer and justify different prices
B. Designing yield management programs that cannot be imitated by a competitor
C. How to handle variability in customer arrivals, duration, and interval
D. Managing the service process
E. Training workers and managers to work in a yield management environment
Answer:
From an operational perspective yield management is most effective under which of the
following circumstances?
A. Demand cannot be segmented by customer
B. Inventory is perishable
C. Fixed costs are low and variable costs are high
D. The customer is a “captive” of the system
E. The firm doing yield management is very profitable
Answer:
Which of the following are the three major components of a queuing system?
A. The source population, how customers exit the system and the queuing discipline
B. The number of servers, the service speed and the waiting line
C. The source population, how the customer exits the system and the servicing system.
D. The source population and the way customers arrive at the system, the serving
systems, and how customers exit the system.
E. The service speed, the queue discipline and the waiting line
Answer:
In an overview of the major operations planning activities in a typical service
organization, which of the following activities follows aggregate sales and operations
planning?
A. Process planning
B. Workforce scheduling
C. Master scheduling
D. Materials requirements planning
E. Order scheduling
Answer:
When material is ordered from a vendor, which of the following is not a reason for
delays in the order arriving on time?
A. Normal variation in shipping time
B. A shortage of material at the vendor’s plant causing backlogs
C. An unexpected strike at the vendor’s plant
D. A lost order
E. Redundant ordering systems
Answer:
Which of the following is not an organizationally-driven reason for outsourcing?
A. Improve effectiveness by focusing on what the firm does best
B. Improve flexibility to meet changing demand for products and services
C. Increase product and service value by improving response to customer needs
D. Improve credibility and image by associating with superior providers
E. All of the above are organizationally-driven reasons for outsourcing
Answer:
You want to determine the upper control line for a “p” chart for quality control
purposes. You take several samples of a size of 100 items in your production process.
From the samples you determine the fraction defective is 0.05 and the standard
deviation is 0.01. If the desired confidence level is 99.7 percent, which of the following
is the resulting UCL value for the line?
A. 0.39
B. 0.08
C. 0.06
D. 0.05
E. None of the above
Answer:
Capacity planning involving acquisition or disposal of fixed assets such as buildings,
equipment or facilities is considered as which one of the following planning horizons?
A. Intermediate-range
B. Long-range
C. Short-range
D. Current
E. Upcoming
Answer:
Which of the following is one of the strategic characteristics to consider when deciding
how supplier relationships should be structured on the continuum between vertical
integration (do not outsource) to arm’s length relationships (outsource)?
A. Cost
B. Location
C. Investment
D. Coordination
E. Control
Answer:
Ownership costs are incurred after the initial purchase and are associated with the
ongoing use of the product or material. Which of the following is not an ownership cost
listed in the text?
A. Financing costs
B. Energy costs
C. Taxes
D. Maintenance and repair costs
E. Supply network costs
Answer:
Which of the following is an analytical tool used in six-sigma quality improvement
programs?
A. Leadership
B. Pareto Charts
C. Management by fact
D. Continuous improvement
E. Kaizen
Answer:
Which of the following are used to describe the degree of error?
A. Weighted moving average
B. Regression
C. Moving average
D. Forecast as a percent of actual
E. Mean absolute deviation
Answer:
A cost of quality classification is which of the following?
A. Material costs
B. Prevention costs
C. Variable overhead
D. Direct labor
E. Inventory costs
Answer:
From an operational perspective yield management is least effective under which of the
following circumstances?
A. Demand can be segmented by customer
B. The product can be sold in advance
C. The product can be kept to be sold when demand is stronger
D. Fixed costs are high and variable costs are low
E. Demand is highly variable
Answer:
The Malcolm Baldrige award selection process helps improve quality and productivity
by which of the following means?
A. Stimulating foreign based suppliers of American companies to improve quality
B. Reporting quality levels among American firms
C. Identifying American firms with the most difficult quality problems
D. Providing feedback to applicants by the examiners
E. Helping Baldrige award winners increase their sales
Answer:
Which of the following is a total measure of productivity?
A. Output/Materials
B. Output/(Labor + Capital + Energy)
C. Output/Labor
D. Output/Inputs
E. All of the above
Answer:
Very few products are moved without at least part of their journey being by which mode
of transportation?
A. Highway
B. Rail
C. Water
D. Pipeline
E. Air
Answer:
Which of the following is considered a “pure” production planning strategy?
A. Variable workforce, stable work hours
B. Lag demand
C.
D. Stable workforce, variable work hours
E. Product warehouse
Answer:
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
Answer:
Quality control charts usually have a central line and upper and lower control limit
lines. Which of the following are reasons that the process being monitored with the
chart should be investigated?
A. A single plot falls above or below the control limits
B. Normal behavior
C. A large number of plots are on or near the central line
D. No real trend in any direction
E. A change in raw materials or operators
Answer:
Which of the following is considered a secondary report in an MRP system?
A. Planned order schedule
B. Exceptions reports
C. Inventory record
D. Firm orders from known customers
E. Engineering change reports
Answer:
If annual demand is 12,000 units, annual holding cost is $15 per unit, and setup cost per
order is $25, which of the following is the EOQ lot size?
A. 2,000
B. 1,200
C. 1,000
D. 300
E. 200
Answer:
If you were selecting from a variety of forecasting models based on MAD, which of the
following MAD values from the same data would reflect the most accurate model?
A. 0.2
B. 0.8
C. 1.0
D. 10.0
E. 100.0
Answer:
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
Answer:
If you are going to develop an “X-bar” chart based on range statistics and you are using
a sample size of 12 for your charting purposes. Which of the following is the A2 factor
for the “X-bar” chart?
A. 0.37
B. 0.31
C. 0.27
D. 0.22
E. 0.18
Answer:
What is the symbol designating the capability index?
______________________________
Answer:
In Hau Lee’s uncertainty framework to classify supply chains, which supply chain
process should be used for innovative products with low supply uncertainty.
______________________________________
Answer:
A manufacturer has identified the options for acquiring a machined part. It can make the
part on a numerically controlled lathe for $150 per unit (including materials.) It can
make the part on a standard lathe for $250 per unit (also including materials.) It can
make the part on a machining center for $50 per unit (also including materials.) The
manufacturer can acquire a standard lathe for $10,000. It could acquire a numerically
controlled lathe for $100,000. A machining center would cost $350,000. It has also
found that it can purchase the part for $350 per unit.
Answer:
What does it mean when we say that a process is capable?
Answer:
What are the five purposes of inventory?
1> _______________________________
2> _______________________________
3> _______________________________
4>_______________________________
5> _______________________________
Answer:
If demand for product “A” were forecast at 1,000,000 units for the coming year and
your factory has one machine capable of producing 4,500 units per week, how many
similar machines might you plan to acquire? ___________________
Answer: