BUS 322

A work center is interested in limiting work-in-process by not allowing production to start again until the current batch is finished. The best solution most likely involves: MRP. ConWIP cards. Gantt charts. Johnson's rule. the assignment method.

ConWIP cards.

Which of the following is an advantage of the FCFS dispatching rule when used in services? FCFS maximizes utilization. FCFS minimizes the average number of jobs in the system. FCFS minimizes the average lateness of all jobs. FCFS maximizes the number of jobs completed on time. FCFS seems fair to customers.

FCFS seems fair to customers.

Location decisions of goods-producing companies often assume that costs are relatively constant for a given area; therefore, the revenue function is critical. True False

False

Which of the following statements best compares modular bills and phantom bills? Both pertain to assemblies that are not inventoried. There is no difference between the two. Both pertain to assemblies that are inventoried. Modular bills are used for assemblies that are not inventoried, unlike phantom bills. Modular bills represent subassemblies that actually exist and are inventoried, while phantom bills represent subassemblies that exist only temporarily and are not inventoried.

Modular bills represent subassemblies that actually exist and are inventoried, while phantom bills represent subassemblies that exist only temporarily and are not inventoried.

Why is Northern Mexico used as a cluster for electronics firms? high traffic flows venture capitalists located nearby natural resources of land and climate NAFTA high per capita GDP

NAFTA

A grill assembly takes 20 washers. Instead of listing these washers separately, they are grouped into a single kit for production. How is the bill of material for the washers classified? phantom bill component bill modular bill low-level bill planning bill

Planning bill

Which of the following is NOT one of the five parts of the Supply Chain Operations Reference (SCOR) model? Make Sell Plan Source Return

Sell

Which of the following statements regarding MRP in services is TRUE? MRP is for manufacturing only, and it is not applicable to services. MRP can be used in services, but only in those that offer very limited customization. MRP only works in services for demand that is independent. Services such as restaurant meals illustrate dependent demand, and they require product structure trees, bills-of-material, and scheduling. None of these is true.

Services such as restaurant meals illustrate dependent demand, and they require product structure trees, bills-of-material, and scheduling.

Category management is the use of computer software to evaluate the profitability of various merchandising plans for hundreds of categories.

T

Channel assembly, which sends components and modules to be assembled by a distributor, treats these distributors as manufacturing partners.

T

Firms may discover that, rather than adapting ERP to the way they do business, they have to adapt the way they do business to accommodate the ERP software.

T

In ABC analysis, "A" items are the most tightly controlled.

T

In manufacturing scheduling, physical inventories of goods can buffer variations in demand, but service scheduling normally lacks that buffer because services are generally consumed at the same time they are delivered.

T

One drawback of a product-oriented layout is that work stoppage at any one point ties up the whole operation.

T

One guideline for a retail layout is to locate high-draw items around the periphery of the store. True False

T

Product storage is an example of waste in the sense that no value is added.

T

The Toyota Production System requires that activities have built-in, automatic tests to signal problems.

T

The time-phased product structure, unlike the bill of material, adds the concept of lead times.

T

Use of a diversified supply base represents one of the most common supply chain risk reduction tactics for several different supply chain risk categories. True False

T

Which of the following is NOT one of the factors complicating the techniques for addressing the fixed-position layout? Group of answer choices The volume of materials needed is dynamic. At different stages of a project, different materials are needed; therefore, different items become critical as the project develops. Takt times at workstations are dynamic. There is limited space at virtually all sites. All of these are complicating factors.

Takt times at workstations are dynamic.

Which of the following statements about quantity discounts is FALSE? The cost-minimizing solution may or may not be where annual holding costs equal annual ordering costs. In inventory management, item cost becomes relevant to order quantity decisions when a quantity discount is available. If carrying costs are expressed as a percentage of value, EOQ is larger at each lower price in the discount schedule. The larger the annual demand, the less attractive a discount schedule will be. The smaller the ordering cost, the less attractive a discount schedule will be.

The larger the annual demand, the less attractive a discount schedule will be.

Which of the following statements is TRUE about the MRP plan when using lot-for-lot ordering? The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent. The quantity of gross requirements for a child item is equal to the quantity of planned order release(s) multiplied by the number of child items used in the parent assembly. The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent. The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent. All of these are true.

The quantity of gross requirements for a child item is equal to the quantity of planned order release(s) multiplied by the number of child items used in the parent assembly.

An example of an intangible cost, as it relates to location decisions, is the quality of education.

True

Lists have been developed that rank countries on issues such as "competitiveness" and "corruption."

True

The factor-rating method can consider both tangible and intangible costs. True False

True

The graphic approach to locational cost-volume analysis displays the range of volume over which each location is preferable.

True

The ratio of labor cost per day to productivity, in units per day, is the labor cost per unit.

True

Unfavorable exchange rates can offset other savings in a location decision.

True

Which of the following is an aid used to monitor jobs in progress? a Gantt load chart the assignment method a Gantt schedule chart Johnson's rule a Gantt progress chart

a Gantt schedule chart

Low-level coding means that: a final item has only a few levels in the BOM structure. the code being used is the code for the lowest level in the BOM structure. a component item is coded at the lowest level at which it appears in the BOM structure. the top level of the BOM is below level zero and that BOMs are not organized around the finished product. the lowest-paid staff member in the production department performs the coding.

a component item is coded at the lowest level at which it appears in the BOM structure.

The fixed-position layout would be MOST appropriate in which of the following settings? a fast-food restaurant a doctor's office a casual dining restaurant a cruise ship assembly facility a washing machine assembly line

a cruise ship assembly facility

ABC analysis divides on-hand inventory into three classes, generally based upon which of the following? item quality unit price the number of units on hand annual demand annual dollar volume

annual dollar volume

A jewelry store is more likely than a jewelry manufacturer to consider ________ in making a location decision. transportation costs cost of raw materials appearance/image of the location quality of life taxes

appearance/image of the location

Which of the following considers process capacity when scheduling? cap loading constrained loading capacitated loading backward loading finite loading

finite loading

Orders are processed in the sequence in which they arrive if (the) ________ rule sequences the jobs. earliest due date slack time remaining first come, first served critical ratio Johnson's

first come, first served

Which one of the following is NOT a layout tactic in a JIT environment? work cells for families of products fixed equipment minimizing distance little space for inventory poka-yoke devices

fixed equipment

One of the major advantages of process-oriented layouts is: high equipment utilization. large work-in-process inventories. flexibility in equipment and labor assignment. smooth and continuous flow of work. small work-in-process inventories.

flexibility in equipment and labor assignment.

A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributors. This is an example of which of the following? Group of answer choices horizontal integration forward integration backward integration current transformation keiretsu

forward integration

Which one of the following is a concern expressed by suppliers in JIT partnerships? having too many customers delivery to the point of use having limited ability to respond to changes in product and quality large lot sizes customers' infrequent engineering changes

having limited ability to respond to changes in product and quality

Globalization of the location decision is the result of all EXCEPT which of the following? market economics higher quality of labor overseas ease of capital flow between countries high differences in labor costs more rapid, reliable travel and shipping

higher quality of labor overseas

The concept of customizing in a warehouse layout: is possible, but it causes serious loss of oversight of the quality function. cannot be considered seriously in today's high efficiency factories. is theoretically sound, but several years away in practice. incorporates value-added activities in warehouses. locates stock wherever there is an open location.

incorporates value-added activities in warehouses.

A product whose EOQ is 400 units experiences a 50% increase in demand. The new EOQ is: unchanged. increased by less than 50%. increased by 50%. increased by more than 50%. cannot be determined

increased by less than 50%.

Manufacturing cycle time is best defined as the: length of the work shift, expressed in minutes per day. time it takes a unit to move from one workstation to the next. time between the start of one unit and the start of the next unit. sum of all the task times to make one unit of a product. time from raw materials receipt to finished product exit.

time from raw materials receipt to finished product exit.

The two most basic inventory questions answered by the typical inventory model are: timing of orders and cost of orders. order quantity and cost of orders. timing of orders and order quantity. order quantity and service level. ordering cost and carrying cost.

timing of orders and order quantity.

Flow time represents the time: an order spends waiting for processing at a work center. an order spends being processed at a work center. an order spends moving from one work center to another. to complete an order, including time spent in processing and in waiting. None of these

to complete an order, including time spent in processing and in waiting.

A product has a demand of 4000 units per year. Ordering cost is $20, and holding cost is $4 per unit per year. The EOQ model is appropriate. The cost-minimizing solution for this product will cost ________ per year in total annual inventory (holding and setup) costs. $400 $800 $1200 Zero; this is a class C item. Cannot be determined because the unit price is not known.

$800

Suppose that papers for a newspaper stand cost $0.40 and sell for $0.80. They currently have no salvage value. If the stand owner is able to find an outlet that would provide a salvage value of $0.10, what would be the increase in service level? .5 0 .07 1 unable to determine given only this information

.07

A local club is selling Christmas trees and deciding how many to stock for the month of December. If demand is normally distributed with a mean of 100 and standard deviation of 20, trees have no salvage value at the end of the month, trees cost $20, and trees sell for $50 what is the service level? .60 .20 .84 .40 unable to determine given these information

.60

In the basic EOQ model, if D = 6000 per year, S = $100, and holding cost = $5 per unit per month, what is the economic order quantity? 24 100 141 490 600

141

The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. What is the production order quantity for this problem? 139 174 184 365 548

184

A production order quantity problem has a daily demand rate = 10 and a daily production rate = 50. The production order quantity for this problem is approximately 612 units. What is the average inventory for this problem? 61 245 300 306 490

245

Which of the following statements regarding scheduling at Alaska Airlines is FALSE? Flying into Alaska complicates scheduling. Schedule changes at one airport have a ripple effect that may have impacts in many others. Alaska Airlines' high-tech computer and communications system is located in Seattle. Alaska Airlines' rapid rescheduling uses mathematical scheduling models. Alaska Airlines' rapid rescheduling promotes air safety and limits traveler inconvenience, but has not resulted in money savings for Alaska Airlines.

Alaska Airlines' rapid rescheduling promotes air safety and limits traveler inconvenience, but has not resulted in money savings for Alaska Airlines.

Location decisions are often being based on which of the following? ports and rivers rail hubs interstate highways airports All of these

All of these

Which of the following devices represents an opportunity for technology to improve security of container shipments? devices that identify truck and container location devices that sense motion devices that measure radiation or temperature devices that can communicate the breaking of a container lock or seal All of these

All of these

Lean operations are known for their: employee development. supplier education. supplier partnerships. challenging jobs. All of these are attributes of lean operations.

All of these are attributes of lean operations.

Which of the following is a function of inventory? to decouple various parts of the production process to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand to take advantage of quantity discounts to hedge against inflation All of these are functions of inventory.

All of these are functions of inventory.

Which of the following is a limitation of rules-based dispatching systems? Rules need to be revised to adjust to changes in orders, product mix, and so forth. Rules may not recognize idle resources. Rules may not recognize bottleneck resources Rules may not be able to prioritize two jobs with identical due dates. All of these are limitations.

All of these are limitations.

Dependent demand and independent demand items differ in that: for any product, all components are dependent-demand items. the need for independent-demand items is forecast. the need for dependent-demand items is calculated. All of these are true. None of these is true.

All of these are true.

In what type of auction does a buyer initiate the process by submitting a description of the desired product or service? traditional buyer Dutch French Mexican

Dutch

What does the POQ interval equal? the number of periods of average demand covered by the safety stock the same number of periods that are on the "not to be rescheduled" side of the time fence EOQ / maximum gross requirement the number of periods until the incoming projected on hand runs out EOQ / average demand per period

EOQ / average demand per period

A push system means providing the next station with exactly what is needed when it is needed.

F

ABC analysis classifies inventoried items into three groups, usually based on annual units or quantities used.

F

Earliest due date is a shop floor dispatching (sequencing) rule that relates the time available to complete a job to the amount of work left to be completed.

F

Employee empowerment is unnecessary in the Toyota Production System, because automation and powerful information systems reduce the need for employee creativity and decision making.

F

Gantt charts are useful for scheduling jobs, but not for loading them.

F

Improvements in security, especially regarding the millions of shipping containers that enter the U.S. each year, are being held back by the lack of technological advances.

F

In a JIT system, product inspection adds value by identifying defective items.

F

Increasing inventory exposes variability in production processes.

F

JIT systems carry inventory just in case something goes wrong.

F

Keiretsu refers to a company coalition that is part collaboration, part purchasing from many suppliers, and part vertical integration.

F

MRP can be effective only if very accurate lot sizes are calculated in advance.

F

MRP is an excellent tool for scheduling components with variable lead times.

F

Process-focused facilities and repetitive facilities generate forward-looking schedules, but process-focused facilities do this with JIT and kanban while repetitive facilities generally use MRP.

F

Safety stock in inventory systems depends only on the average demand during the lead time.

F

Short-term scheduling is important to efficiency and to cost reduction, but its impact is not of strategic importance.

F

The number of kanbans decreases as safety stock is increased.

F

Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor? Soft drinks are bottled in many local plants, where carbonated water is added to proprietary syrups that may have been shipped long distances. Few people will travel out of state for a routine haircut. Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital. Furniture makers choose to locate near the source of good hardwoods, even though it means locating near other furniture manufacturers. Metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's source.

Few people will travel out of state for a routine haircut.

An inventory decision rule states, "When the inventory level goes down to 14 gearboxes, 100 gearboxes will be ordered." Which of the following statements is TRUE? One hundred is the reorder point, and 14 is the order quantity. Fourteen is the reorder point, and 100 is the order quantity. The number 100 is a function of demand during lead time. Fourteen is the safety stock, and 100 is the reorder point. None of these is true.

Fourteen is the reorder point, and 100 is the order quantity.

If the goals of JIT partnerships are met, which of the following is a result? For incoming goods, receiving activity and inspection are outsourced. In-transit inventory falls as suppliers are located closer to facilities. Suppliers maintain a variety of customers to reduce risk. In-plant inventory replaces in-transit inventory. All of these are consequences of meeting the JIT partnership goals.

In-transit inventory falls as suppliers are located closer to facilities.

Which of the following statements regarding the center-of-gravity method is FALSE? It is designed to minimize the maximum possible travel distance to any of the locations. The optimal x- and y-coordinates are calculated separately. The optimal solution is unconstrained, so it could suggest a location in the middle of a body of water. The weights used are the quantity of goods moved to or from each location. The origin of the coordinate system and the scale used are arbitrary, just as long as the relative distances are correctly represented.

It is designed to minimize the maximum possible travel distance to any of the locations.

JIT makes quality cheaper because: the cost of low quality can be hidden in inventory. JIT adds more buffers to the system. JIT prevents long runs of defects. B and C A, B and C

JIT prevents long runs of defects.

Which of the following is TRUE regarding fabrication lines? They are the same thing as assembly lines. They are the same thing as focused factories. They are a special type of process-oriented layout. They are usually machine-paced as opposed to worker-paced. They require completely different line balancing techniques than do assembly lines.

They are usually machine-paced as opposed to worker-paced.

What is the primary reason why retailers tend to locate high-draw items around the periphery of the store? More shelf space for those popular items is available around the periphery. There will be less congestion of customers than there would be in the middle. This arrangement will help to maximize customer exposure to other items in the store. It is easier to put large advertisement signs on the outside walls right next to the items. This arrangement allows customers to travel through the store as quickly as possible.

This arrangement will help to maximize customer exposure to other items in the store.

Which of the following statements regarding lot-sizing is TRUE? EOQ principles should be followed whenever economical. Too much concern with lot-sizing results in false accuracy. Lot-for-lot cannot be modified for scrap allowance or process constraints. The Wagner-Whitin algorithm simplifies lot size calculations. All of these are true.

Too much concern with lot-sizing results in false accuracy.

What does TPS stand for? Total Production Streamlining Toyota Production System Taguchi's Production S's Total Process Simplification Transparent Processing System

Toyota Production System

As the number of facilities increases, total logistics costs tend to follow a curve that first declines, then rises. Why? Transportation and inventory costs first decline steeply, then rise, while facility costs always rise. Transportation costs always decline, but eventually the rise in facility and inventory costs outweigh the declining transportation costs. Facility costs first decline steeply, then rise, while transportation and inventory costs always rise. Transportation costs first decline steeply, then rise, while facility and inventory costs always rise. Inventory costs first decline steeply, then rise, while transportation and facility costs always rise.

Transportation costs first decline steeply, then rise, while facility and inventory costs always rise.

If a layout problem is solved by use of heuristics, this means that: there is no other way to solve the problem. no computer software is available. the problem has only a few alternatives to evaluate. no optimum solution exists. a satisfactory, but not necessarily optimal, solution is acceptable.

a satisfactory, but not necessarily optimal, solution is acceptable.

Which of the following best describes a gross material requirements plan? a schedule that shows total demand for an item, and when it must be ordered from a supplier or when production must be started an intermediate range plan for the scheduling of families of products a chart illustrating whether capacity has been exceeded a table that corrects scheduled quantities for inventory on hand a schedule showing which products are to be manufactured and in what quantities

a schedule that shows total demand for an item, and when it must be ordered from a supplier or when production must be started

The fixed-period inventory system requires more safety stock than a fixed-quantity system because: a stockout can occur during the review period as well as during the lead time. this model is used for products that have large standard deviations of demand. this model is used for products that require very high service levels. replenishment is not instantaneous. setup costs and holding costs are large.

a stockout can occur during the review period as well as during the lead time.

The correct sequence from longest to smallest duration scheduling is: capacity planning, aggregate planning, master schedule, short-term scheduling. aggregate planning, capacity planning, master schedule, short-term scheduling. master schedule, capacity planning, aggregate planning, short-term scheduling. master schedule, aggregate planning, capacity planning, short-term scheduling. capacity planning, master schedule, aggregate planning, short-term scheduling.

capacity planning, aggregate planning, master schedule, short-term scheduling.

Concerning relationships with suppliers, which of the following combinations is critical to the success of JIT? close relationships with trust close relationships with skepticism distant relationships with trust distant relationships with skepticism None of these

close relationships with trust

What term describes a supply chain that is designed to optimize both forward and reverse flows? closed-loop supply chain full-journey supply chain circular supply chain network supply chain recycled supply chain

closed-loop supply chain

A location decision for an appliance manufacturer would tend to have what type of focus? cost focus focus on finding very highly skilled technicians revenue focus environmental focus education focus

cost focus

A carpet manufacturer has delivered carpet directly to the end consumer rather than to the carpet dealer. The carpet manufacturer is practicing which of the following? postponement cross-docking channel assembly drop shipping float reduction

drop shipping

Ambient conditions; spatial layout and functionality; and signs, symbols, and artifacts are all: indicators of imbalance on an assembly line. indicators that cross-docking has been successful. elements of customization in a warehouse layout. elements of servicescapes. elements of successful office layouts.

elements of servicescapes.

The main trait of a single-period model is that: inventory has limited value after a certain period of time. it has the largest EOQ sizes. the order quantity should usually equal the expected value of demand. supply is limited. the cost of a shortage cannot be determined accurately.

inventory has limited value after a certain period of time.

A big advantage of a process-oriented layout is: its flexibility in equipment and labor assignments. its low cost. the simplified scheduling problem presented by this layout strategy. the ability to employ low-skilled labor. its high equipment utilization.

its flexibility in equipment and labor assignments.

Forward scheduling is the scheduling of: the end items or finished products. jobs as soon as the requirements are known. the start items or component parts. the final operation first beginning with the due date. jobs according to their profit contributions.

jobs as soon as the requirements are known.

Characteristics of just-in-time partnerships do NOT include: removal of in-transit inventory. large lot sizes to save on setup costs and to gain quantity discounts. long-term contracts. produce with zero defects. focus on core competencies.

large lot sizes to save on setup costs and to gain quantity discounts.

Which critical ratio value implies that a job is already late? more than 100 1 less than 1 10 3.4

less than 1

By convention, what is the top level in a product structure? level 0 level 1 level T level 10 level 100

level 0

Which MRP lot-sizing technique should be considered to be the goal (i.e., the technique of choice under ideal conditions)? Wagner-Whitin EOQ lot-for-lot POQ Silver-Meal

lot-for-lot

Which of the following lot-sizing techniques results in the lowest holding costs? lot-for-lot EOQ POQ Wagner-Whitin algorithm the quantity discount model

lot-for-lot

Drop shipping: is equivalent to cross-docking. is the opposite of a blanket order. means the supplier will ship directly to the end consumer, rather than to the seller. is the same thing as keiretsu. is a good reason to find a new firm to ship your products.

means the supplier will ship directly to the end consumer, rather than to the seller.

The central problem in product-oriented layout planning is: minimizing material handling within workstations. minimizing labor movement between workstations. equalizing the space allocated to the different workstations. maximizing equipment utilization. minimizing the imbalance in the workloads among workstations.

minimizing the imbalance in the workloads among workstations.

Firms making many different final products use ________ to facilitate production scheduling. planning bills modular bills phantom bills overdue bills gross requirements bills

modular bills

Because problems with fixed-position layouts are so difficult to solve well onsite, operations managers: virtually never employ this layout strategy. utilize this approach only for construction projects such as bridges and office towers. increase the size of the site. often complete as much of the project as possible offsite. utilize this layout only for defense contractors.

often complete as much of the project as possible offsite.

If an assignment problem consists of 6 workers and 7 projects: one worker will not get a project assignment. one worker will be assigned two projects. each worker will contribute work toward the seventh project. one project will not get a worker assigned. The problem cannot be solved by assignment method.

one project will not get a worker assigned.

A product whose EOQ is 40 units experiences a decrease in ordering cost from $90 per order to $10 per order. The revised EOQ is: three times as large. one-third as large. nine times as large. one-ninth as large. cannot be determined

one-third as large.

Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm? energy and utility costs attitude toward unions parking and access cost of shipping finished goods labor costs

parking and access

What is the process of tracing upward in the bill of material from the component to the parent item in order to determine the cause for the component requirement? net requirements planning time fencing pegging backtracking leveling

pegging

Which of the statements below best describes office layout? positions workers, their equipment, and spaces/offices to provide for movement of information addresses the layout requirements of large, bulky projects such as ships and buildings seeks the best personnel and machine utilization in repetitive or continuous production allocates shelf space and responds to customer behavior deals with low-volume, high-variety production

positions workers, their equipment, and spaces/offices to provide for movement of information

What is the objective of scheduling? maximize quality minimize cost minimize response time prioritize and allocate demand to available facilities minimize lead time

prioritize and allocate demand to available facilities

Which type of layout features departments or other functional groupings in which similar activities are performed? process-oriented product-oriented fixed-position mass production unit production

process-oriented

Which of the following best describes vertical integration? sell products to a supplier or a distributor develop the ability to produce products that complement the original product produce goods or services previously purchased develop the ability to produce the specified good more efficiently than before build long-term partnerships with a few suppliers

produce goods or services previously purchased

In MRP, the number of units projected to be available at the beginning of each time period refers to: net requirements. scheduled receipts. planned order releases. projected on hand. the amount necessary to cover a shortage.

projected on hand.

Workspace can inspire informal and productive encounters if it balances what three physical and social aspects? proximity, privacy, and persuasion privacy, persuasion, and permission proximity, privacy, and permission proximity, persuasion, and permission proximity, persuasion, and passion

proximity, privacy, and permission

The Institute for Supply Management: establishes laws and regulations for supply management. is an agency of the United Nations charged with promoting ethical conduct globally. publishes the principles and standards for ethical supply management conduct. prohibits backward integration into developing economies. grants Ph.D. degrees in purchasing.

publishes the principles and standards for ethical supply management conduct.

In most manufacturing industries, which of the following would likely represent the largest cost to the firm? transportation purchasing insurance financing advertising

purchasing

Which one of the following is a characteristic of a JIT partnership? third-party logistics never used maximal product specifications imposed on supplier active pursuit of vertical integration removal of incoming inspection frequent deliveries in large lot quantities

removal of incoming inspection

A location decision for a traditional department store (e.g., Macy's) would tend to have what type of focus? cost focus labor focus revenue focus environmental focus education focus

revenue focus

Which of the following should be higher in P systems than Q systems? lead time demand order size order spacing safety stock

safety stock

Traffic counts and demographic analysis of drawing area are associated with: the center-of-gravity method. manufacturing location decisions. service location decisions. the transportation model. locational cost-volume analysis.

service location decisions.

Which one of the following is NOT one of the six sourcing strategies? negotiation with many suppliers vertical integration keiretsu short-term relationships with few suppliers virtual companies

short-term relationships with few suppliers

Sequencing (or dispatching): assigns dates to specific jobs or operations steps. assigns jobs to work centers. specifies the order in which jobs should be done at each center. assigns workers to jobs. assigns workers to machines.

specifies the order in which jobs should be done at each center.

Which of the following is not characteristic of a TPS employee? knowledgeable strict job classifications know more about their job than anyone else empowered All of these characterize a TPS employee.

strict job classifications

Solving a load-distance problem for a process-oriented layout requires that: the difficulty of movement be the same for all possible paths. pickup and setdown costs vary from department to department. the cost to move a load be the same for all possible paths. takt time be less than 1. Proplanner software examines all possible department configurations.

the difficulty of movement be the same for all possible paths.

The disadvantages of process-oriented layout come from: the use of special purpose equipment. machine maintenance, which tends to seriously degrade the capacity of the entire system. the use of specialized material handling equipment. the need for stable demand. the flexibility of general-purpose equipment.

the flexibility of general-purpose equipment.

A disadvantage of the "few suppliers" sourcing strategy is: the risk of not being ready for technological change. the lack of cost savings for customers and suppliers. possible violations of the Sherman Antitrust Act. the high cost of changing partners. the suppliers are less likely to understand the broad objectives of the procuring firm and the end customer.

the high cost of changing partners.

The number of kanbans should be equal to which of the following? one the ratio of (demand during lead time + safety stock) to container size one-half of the EOQ one full day's production divided by the EOQ the ratio of demand during lead time to (container size + safety stock)

the ratio of (demand during lead time + safety stock) to container size

Demand for a given item is said to be dependent if: it originates from the external customer. there is a deep bill of material. the finished products are mostly services (rather than goods). there is a clearly identifiable parent. the item has several children.

there is a clearly identifiable parent.

On the crossover chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity where: fixed costs are equal for two alternative locations. variable costs are equal for two alternative locations. total costs are equal for all alternative locations. fixed costs equal variable costs for one location. total costs are equal for two alternative locations.

total costs are equal for two alternative locations.

Average completion time for a schedule sequence at a work center is the ratio of: total processing time to the number of jobs. total flow time to total processing time. total flow time to the number of jobs. total processing time plus total late time to the number of jobs. total flow time plus total late time to the number of jobs.

total flow time to the number of jobs.

La Quinta Inns has a competitive edge over its rivals because it: uses regression analysis to determine which variables most influence profitability. has better television advertisements. picks larger locations than its rivals. builds only along interstate highways. consistently receives four-star ratings for its inns.

uses regression analysis to determine which variables most influence profitability.

Which of the following best describes Vizio's sourcing strategy? few suppliers keiretsu joint venture vertical integration virtual company

virtual company

"A special arrangement of machinery and equipment to focus on production of a single product or group of related products" describes what layout type? fixed-position layout intermittent production job shop work cell warehouse layout

work cell

Which of the following is usually NOT one of the top considerations in choosing a country for a facility location? availability of labor and labor productivity exchange rates attitude of governmental units zoning regulations location of markets

zoning regulations