It is not necessary that a well-designed service system be robust.
Answer:
From an operations standpoint, one of the goals of the firm under the theory of
constraints is to increase throughput while simultaneously reducing inventory and
reducing operating expense.
Answer:
One SPC tool used in total quality management is the run chart.
Answer:
All firms maintain bill of materials (BOM) files, which are simply a sequencing of
everything that goes into a final product.
Answer:
Smaller transfer batches give lower work-in-process inventory and faster product flow.
Answer:
In a one-bin inventory system the inventory Level is brought up to its predetermined
maximum at a fixed time period (such as weekly).
Answer:
Most consulting firms are very large organizations and are specialized by function or by
industry.
Answer:
Industrial robots are used as substitutes for workers for many repetitive manual
activities and tasks that are dangerous, dirty or dull.
Answer:
Fixed cost per unit of output remains constant regardless of the Level of output.
Answer:
Expected value is the expected outcome multiplied by the probability of its occurrence.
Answer:
The conclusion of the product development process is when the product is withdrawn
from the market.
Answer:
The service-system design matrix identifies six forms of service encounters.
Answer:
Total, one-hundred percent, inspection can never be cost justified.
Answer:
In finite loading no consideration is given directly to whether there is sufficient capacity
at the resources required to complete the work, nor is the actual sequence of the work as
done by each resource in the work center considered.
Answer:
Learning curves have a wide range of business applications.
Answer:
An inventory system is a set of policies and controls that monitors Levels of inventory
and determines what Levels should be maintained, when stock should be replenished
and how large orders should be.
Answer:
Using the probability approach to determine an inventory safety stock and wanting to
be 95 percent sure of covering inventory demand, which of the following is the number
of standard deviations necessary to have the 95 percent service probability assured?
A.1.28
B.1.64
C.1.96
D.2.00
E.2.18
Answer:
Which of the following is not a suggestion for managing queues presented in the
textbook?
A.Train your servers to be friendly
B.Segment the customers
C.Determine an acceptable waiting time for your customers
D.Inform your customers of what to expect
E.Encourage customers to come during slack periods
Answer:
A company has actual unit demand for four consecutive years of 100, 105, 135 and 150.
The respective forecasts were 120 for all four years. Which of the following is the
resulting MAD value that can be computed from this data?
A.2.5
B.10
C.20
D.22.5
E.30
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:
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:
A series of projects that are organized in such a way that each project utilizes people
from different functional areas is using which of the following organizational
structures?
A.Matrix project
B.Integrated Task Force
C.Functional project
D.Pure project
E.Cross-functional flexible team
Answer:
Which of the following is an essential condition in a situation for linear programming to
be useful?
A.Nonlinear constraints
B.Bottlenecks in the objective function
C.Homogeneity
D.Uncertainty
E.Competing objectives
Answer:
A roller coaster ride in an amusement park employs which type of queuing system line
structure?
A.Single channel, single phase
B.Single channel, multiphase
C.Multichannel, single phase
D.Multichannel, multiphase
E.None of the above
Answer:
In modeling a simulation random numbers from 00 to 99 are assigned with the intervals
determined from frequency distributions for each behavior occurrence. If there are two
behaviors, X and Y, out of 50 tallies, on behavior X you record 20 tallies and on
behavior Y you record 30 tallies. Which of the following is a correct random number
interval for behavior X?
A.00 to 19
B.01 to 20
C.00 to 39
D.41 to 61
E.45 to 100
Answer:
Which of the following is a graphic project report used in project management?
A.Project proposal
B.Approved project plan
C.Humphrey chart
D.Equipment and supplies chart
E.Cost and performance tracking schedule
Answer:
Economic analysis of product development projects must evaluate which of the
following:
A.Planned profitability of the product
B.Expected market share to be attained
C.Net present value of profits
D.Timing and amount of net cash flow
E.Demand elasticity of the product
Answer:
In a college registration process, several department heads have to approve an
individual student’s semester course load. What is the queuing system line structure?
A.Single channel, single phase
B.Single channel, multiphase
C.Multichannel, single phase
D.Multichannel, multiphase
E.None of the above
Answer:
Various financial data for SunPath Manufacturing for 2008 & 2009 follow.
What is the percentage change in the energy partial productivity measure for SunPath
between 2008 & 2009?
A.9.22
B.2.33
C.0.53
D.2.88
E.10.39
Answer:
In general, which forecasting time frame is best to detect general trends?
A.Short-term forecasts
B.Quick-time forecasts
C.Long range forecasts
D.Medium term forecasts
E.Rapid change forecasts
Answer:
The unit improvement factor for an 80% learning curve at 100 units is 0.2271. The first
and second timings of a person doing a job are 20 minutes and 16 minutes respectively,
what is the learning-adjusted time estimate for unit number 100?
A.20 minutes
B.16 minutes
C.2.271 minutes
D.4.542 minutes
E.0.800 minutes
Answer:
Which of the following is an input file necessary to run an MRP system?
A.Exception report
B.Computer-aided-design files
C.Inventory records file
D.Personnel files
E.Time fence file
Answer:
Which of the following is not a major strategic or tactical area where companies
typically seek operations consulting?
A.Adding new plants
B.Refocusing existing facilities
C.Locating new plants
D.Expanding an existing plant
E.Refurbishing an existing facility
Answer:
Which of the following is a dynamic lot-sizing technique that adds ordering and
inventory carrying cost for each trial lot size and divides by the number of units in each
lot size, picking the lot size with the lowest unit cost?
A.Economic order quantity
B.Lot-for-lot
C.Least total cost
D.Least unit cost
E.Inventory averaging
Answer:
Using the fixed-time period inventory model and given an average daily demand of 75
units, 10 days between inventory reviews, 2 days for lead time, 50 units of inventory on
hand, a service probability of 95 percent and a standard deviation of demand over the
review and lead time of 8 units, which of the following is the order quantity?
A.863
B.948
C.1,044
D.1,178
E.4,510
Answer:
According to the theory of constraints which of the following is a financial
measurement that can be used to measure the firm’s ability to make money?
A.Net profit
B.Throughput
C.Inventory
D.Sales
E.Retained earnings
Answer:
PERT is an abbreviation for which of the following methodologies?
A.Product Evaluation Result and Treatment
B.Programming and Evaluation Realization Technology
C.Program Evaluation and Review Technique
D.Process Evaluation and Review Technology
E.It is a name, not an abbreviation for anything
Answer:
There are many applications of poka-yokes in service organizations. Which of the
following is one of the three-T’s used to classify poka-yokes?
A.Talent
B.Teamwork
C.Trust
D.Treatment
E.Time
Answer:
Which of the following is a perpetual system for inventory management?
A.Fixed-time period
B.Fixed-order quantity
C.P model
D.First-in-first-out
E.The wheel of inventory
Answer:
Discuss the importance of inventory record accuracy to an MRP system?
Answer:
As a facility location consultant, how would you advise a client wanting to locate a
retail service facility differently than a client wanting to locate an on-line stock trading
operation?
Answer:
What United States National Quality Award was started in 1987?
Answer:
When a qualified national or international standards body or similar certifying agency
audits and certifies that a company is ISO-9000 compliant, the form of certification is
called what?
Answer:
List three managerial guidelines for implementation of reengineering.
Answer:
The text discusses eight current trends that are affecting job design decisions. What are
they?
Answer:
What are two ways that time is incremented in simulation models?
Answer:
Compare and contrast the factor-rating system and the transportation method of linear
programming as used in facility location decisions.
Answer:
Why might a depreciated asset’s book value not be a good representation of its’
ANSWER: TRUE worth?
Answer:
What is a ‘shadow price”?
Answer: