Final Exam
An MRP system provides which of the following advantages?
Automatic update of the dependent demand and replenishment schedules of components when parent schedules change.
Which of the following elements are NOT common to waiting-line problems?
A random-number generator
Which of the following costs is NOT considered an inventory holding (or carrying) cost?
inventory transportation costs
A visual version of the Q system
is the two-bin system.
Studies show that companies reap the greatest rewards with ERP when they
keep their ERP implementations simple.
The goal of determining the timing and size of MPS quantities is to
maintain a nonnegative projected on-hand inventory balance.
The primary lever to reduce anticipation inventory is to
match demand rate with production rate.
A form of shrinkage called ________ occurs when inventory cannot be used or sold at full value, owing to model changes, engineering modifications, or unexpectedly low demand.
obsolescence
A _______ customer is one who enters the system and remains there until being served.
patient
Which of the following inventory classifications is one of the four forms that represent how the inventory was created?
pipeline inventory
What is the primary lever to reduce cycle inventory?
reduce the lot sizes
What is the objective that managers are trying to attain when they decide to allow customer preemption?
reduce the waiting times of select customers
Which of the following is a way that managers may attempt to affect the rate of customer arrivals?
special promotions B. differential pricing C. advertising *D. All of the above.* <--correct
An individual item or product that has an identifying code and is held in inventory somewhere along the supply chain is called a
stock-keeping unit
An enterprise process is a companywide process that cuts across
suppliers and customers. B. business units and geographic regions. C. functional areas. *D. All of the above.* <-- correct
The concept of dependent demand is
that demand for an item is a function of the production plans for some other item the company produces.
Which of the following is NOT considered a pressure to hold large inventories?
the cost of insurance
In master production scheduling, what does available-to-promise (ATP) inventory represent?
the difference between the customer orders already booked and the quantity that operations is planning to produce
A reorder point will fall if
the lead time falls.
Which of the following situations requires the use of simulation as a key assumption of the single-server model is violated?
the mean arrival rate exceeds the mean service rate
If customer arrivals are generated according to a Poisson distribution,
then the interarrival times of the customers are exponentially distributed.
When is the customer population of a waiting line problem said to be infinite?
when the number of customers in the system does not affect the rate at which the population generates new customers
A single-server service facility had the capacity to serve 38 customers per hour on average. The average customer demand was 31 customers per hour. Determine the average waiting time in the line in minutes.
6.99
If gross requirements are 100, planned receipts are 120, and inventory on hand from the previous period is 50, then the projected on-hand inventory balance is
70
Service providers must plan their resources just as manufacturers do. However, unlike finished goods, services cannot be
inventoried
The key inputs to an MRP include
inventory record database.
An end item "A" is assembled from two "B" components and two "C" subassemblies. The "C" subassembly is composed of one of each component "B" and "D." If the gross requirement for "A" is 100 units, what is the demand for component "B"?
400
_________ is a rule that allows a customer of higher priority to interrupt the service of another customer.
.A preemptive discipline
The production demand for widgets for a 250-workday year is 7,500 units. Ordering costs are $25.00 per order and holding costs are $9.00 per unit per year. Four days must be allowed between order placement and order receipt. What is the EOQ, assuming known and constant variables?
204
A single-server service facility had the capacity to serve 38 customers per hour on average. The average customer demand was 31 customers per hour. Determine the average number of customers in the system.
4.43
Which of the following statements is true regarding master production scheduling?
A. Capacity limitations and bottlenecks may determine the timing and size of MPS quantities. B. The sums of the quantities in the MPS must equal those in the sales and operations plan. C. The production quantities should be allocated efficiently over time. *D. All of the above are true.* --> correct
Lisa's Card Cache uses ABC analysis. Which of the following statements is NOT true of ABC analysis?
ABC analysis allows the company to control inventory shrinkage.
Which statement about capacity requirements planning (CRP) is NOT true?
CRP systems adjust the order release time to prevent a workstation from exceeding its capacity.
A perpetual inventory system requires that
inventory records are always current.
_________ items, consisting of raw materials and work-in-process inventories, are those items whose required quantity varies with the production plans for other items held in the firm's inventory.
Dependent demand
Which of the following is NOT a benefit of an MRP system?
Forecasting of finished-goods demand
Which of the following is an example of dependent demand for manufactured goods?
Hospital bed sheets
Which of the following is NOT a feature of an ERP system?
Identifying the actions planners must take to stay on schedule
Lewis Machine Tools is considering reducing lot size to reduce cycle inventory. Which of the following is a change that should be made for lot size reduction to be effective?
Increasing repeatability
Which of the following are NOT advantages of a periodic review system?
Lower safety stock
_________ is an easy-to-use computer package that is simply a spreadsheet with some macros with which simple waiting line processes may be simulated
SimQuick
For class C SKUs, why is much looser inventory control appropriate?
The inventory holding cost of class C SKUs tends to be low.
The Mickey and Mouse Cat Food Factory runs an aggressive marketing campaign and much to the delight, orders surge to twice their previous level. If their operations manager uses an EOQ policy, what is the impact on the order quantity?
The order quantity will be 40% higher.
Which of these statements is NOT required in order for the EOQ model to be a reasonable approach?
The setup/ordering cost must exceed the annual holding cost of one unit.
A component that has one or more parents and no components is most likely to be
a purchased item.
Which of the following ways represents how management can improve a service system?
allocate service tasks to sequential phases B. affect the rate of customer arrivals C. assign more than one person to a service facility *D. All of the above.* <--correct
In master production scheduling, what does projected on-hand inventory represent?
an estimate of the amount of inventory available each week after demand has been satisfied
Matching the demand rate with the production rate is a primary lever to reduce
anticipation inventory.
A P system has an advantage over the Q system
because orders from multiple items from one supplier can be combined into a single purchase order.
The service analogy to the bill of materials is the
bill of resources.
By devising improved work methods, management is attempting to
increase the efficiency of servers.
Which of the following situations requires the use of simulation as a key assumption of the multiple-server model is violated?
customers are served based on a priority discipline
ERP revolves around a single comprehensive _________ that can be made available across the entire organization.
database
Which of the following can put pressure on a company to carry small levels of inventory?
high cost of capital
The Bill of Resources (BOR) can be used to determine which of the following?
how much of a resource a firm will need B. when resources will be needed by a firm C. what resources a firm will need *D. All of the above.* <-- correct