final

ABC analysis divides an​ organization's on-hand inventory into three classes based upon A. annual dollar volume. B. the number of units on hand. C. annual demand. D. unit price.

A

If the process mean is closer to the LSL than the​ USL, and the process has a process capability index less than​ 1, then which of the following would potentially help the process become​ capable? A. Increase the mean B. Decrease the mean C. Increase the variability of the process D. The process is already capable

A

What is a list of quantities of​ components, ingredients, and materials required to make a​ product? A. bill-of-material B. engineering change notice C. purchase order D. master production schedule

A

Which of the following is NOT a common TQM​ tool? A. queuing models B. histograms C. scatter diagrams D. check sheets

A

Which of the following is NOT part of a successful quality​ strategy? A. Minimize quality costs throughout the organization B. Understanding the principles of quality C. Engaging employees in building and implementing quality D. Building an organizational culture that fosters quality

A

Which of the following is true about the relationship between the process capability ratio ​(Cp​) and the process capability index ​(Cpk​)? A. Cpk will always be less than or equal to Cp B. Cpk will always be equal to Cp C. Cpk will always be greater than or equal to Cp D. There is no relationship

A

What is required for an MRP system to​ work? A. A high number of purchase orders outstanding B. Accurate inventory records C. Long lead times D. A small bill of material

B

Which of the TQM tools would be best suited for determining why a​ student's course registration is never​ correct? A. Pareto chart B. ​cause-and-effect diagram C. check sheet D. flowchart

B

Which of the following TQM tools would be best suited for displaying the number of students majoring in each business​ discipline? A. ​cause-and-effect diagram B. histogram C. flowchart D. scatter diagram

B

Which of the following is NOT an external failure​ cost? A. returned goods B. scrap C. costs to society D. lost goodwill

B

Which of the following statements is​ true? A. MRP software programs are popular because of the ease of manual approaches. B. A net requirements plan adjusts for​ on-hand inventory. C. Gross material requirements adjusts for inventory on hand. D. Distortion can be minimized when safety stock is held at each​ workstation, rather than at the finished goods or raw material levels.

B

Which of the following types of inventory describes inventory that has been purchased but not​ processed? A. maintenance/repair/operating supply inventory B. raw material inventory C. finished-goods inventory D. work-in-process inventory

B

Which type of control chart should be used when it is possible to have more than one mistake per​ item? A. x​-bar chart B. c​-chart C. p​-chart D. R​-chart

B

A​ firm's probability of a stockout for a popular item is​ 2%. Given this​ information, what is its service level for this popular​ item? A. 4% B. 2% C. 98% D. 96%

C

Cycle counting A. involves shutting down production once per year to perform the annual inventory count. B. increases annual inventory adjustments. C. is a process by which inventory records are verified. D. cannot be performed in an independent demand situation.

C

Extra units that are held in inventory to reduce stockouts are called A. just-in-time inventory. B. reorder point. C. safety stock. D. demand variance.

C

Inventory control models assume that demand for an item is A. identical to the demand for other items. B. always independent on the demand for other items. C. either independent of or dependent on the demand for other items. D. always dependent on the demand for other items.

C

Process capability A. is assured when the process is statistically in control. B. exists only in​ theory; it cannot be measured. C. means that the natural variation of the process must be small enough to produce products that meet the standard. D. exists when CPK is less than 1.0.

C

The objective of a statistical process control​ (SPC) system is to A. eliminate natural variations. B. provide a statistical signal when natural causes of variation are present. C. provide a statistical signal when assignable causes of variation are present. D.nassess customer expectations.

C

The objective of inventory management is to A. take advantage of quantity discounts. B. decouple various parts of the production process. C. strike a balance between inventory investment and customer service. D. provide a selection of goods for anticipated customer demand.

C

What is a dependent demand technique that uses a​ bill-of-material, inventory, expected​ receipts, and a master production schedule to determine material​ requirements? A. Periodic order planning​ (POP) B. Economic order method​ (EOM) C. Material requirements planning​ (MRP) D. Material requirements method​ (MRM)

C

Which of the following is NOT one of the techniques for building employee​ empowerment? A. Build​ high-morale organizations. B. Build communication networks that include employees. C. Eliminate formal organization structures such as teams and quality circles. D. Develop​ open, supportive supervisors.

C

Which of the following is NOT true about Six​ Sigma? A. It is a program designed to reduce defects to help lower costs B. It utilizes a​ five-step improvement​ model, DMAIC C. It is only applicable in manufacturing D. It was developed by Motorola in the 1980s

C

Which of the following is an advantage of​ ERP? A. Data fields do not have to be defined identically across the entire enterprise. B. It is very inexpensive to purchase. C. It creates commonality of databases. D. It is simple enough that companies have an easy time adjusting to it.

C

Which of the following statements is NOT true about the process capability​ ratio? A. The process capability ratio is computed as the difference of the upper and lower specification limits divided by six standard deviations. B. The process capability ratio is a ratio for determining whether a process meets design specifications. C. A capable process has a process capability ratio less than one. D. The process capability ratio is a ratio of the specification to the process variation.

C

Material requirements planning II​ (MRP II) generally substitutes out requirements for A. reuse. B. recycle. C. return. D. resource

D

Policies based on ABC analysis might include investing A. extra care in forecasting for C items. B. the most time and effort verifying the accuracy of records for B items. C. more in inventory security for C items. D. more in supplier development for A items.

D

The American Society for Quality defines quality as A. even though it cannot be​ defined, you know what it is. B. how well a product fits patterns of consumer preferences. C. the degree of excellence at an acceptable price and the control of variability at an acceptable cost. D. the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs.

D

The difference between a gross material requirements plan and a net requirements plan is that A. the gross MRP may not be​ computerized, but the net requirements plan must be computerized. B. the gross MRP does not take taxes into​ account, whereas the net requirements plan includes the tax considerations. C. the gross MRP includes consideration of the inventory on​ hand, whereas the net requirements plan does not. D. the net requirements plan includes consideration of the inventory on​ hand, whereas the gross MRP does not.

D

The two popular measures for quantitatively determining if a process is capable are A. process mean and range. B. upper specification and lower specification. C. process mean and standard deviation of the process population. D. process capability ratio and process capability index.

D

What is an information system for identifying and planning the​ enterprise-wide resources needed to​ take, make,​ ship, and account for customer​ orders? A. SCM B. EIS C. MRP D. ERP

D

What is a​ time-phased stock-replenishment plan for all levels of the supply​ chain? A. BOM B. MRP II C. MRP D. DRP

D

What is the reasoning behind setting the upper and lower control limits plus or minus±3sigma Subscript x overbarσx from the​ mean? A. We know that​ 99.73% of assignable variation is contained within plus or minus±3sigma Subscript x overbarσx​, and thus any data point outside of the limits is likely due to natural variation B. The limits of the Z table are set at plus or minus±3sigma Subscript x overbarσx C. 95.45% of the​ time, the sample averages will fall within plus or minus±3sigma Subscript x overbarσx if the process has only natural variation D. We know that​ 99.73% of natural variation is contained within plus or minus±3sigma Subscript x overbarσx​, and thus any data point outside of the limits is likely due to assignable variation

D

What is the​ lot-sizing technique that generates exactly what was required to meet the​ plan? A. economic order quantity B. periodic order quantity C. Wagner-Whitin D. lot-for-lot

D

Which of the following does NOT belong to holding​ costs? A. pilferage, scrap, and obsolescence B. storage costs C. insurance on inventory D. order processing

D

Which of the following is NOT a function of​ inventory? A. To minimize disruptions in the production process B. To provide selection of goods for anticipated customer demand C. To leverage discounts for buying in bulk D. To increase total invested capital

D

Which of the following is the Japanese term used to describe continuous improvement​ efforts? A. ​poka-yoke B. kanban C. six sigma D. kaizen

D

Which of the following measures the proportion of variation ​(3sigmaσ​) between the center of the process and the nearest specification​ limit? A. process capability ratio B. process range C. standard deviation of the process population D. process capability index

D

Which of the following statements is NOT true about​ MRP? A. MRP uses a​ bill-of-material, inventory, expected​ receipts, and a master production schedule to determine material requirements. B. MRP has evolved as the basis for Enterprise Resource Planning. C. MRP provides a clean structure for dependent demand. D. MRP is an independent demand technique used in a production environment.

D

Which of the following statements is NOT true regarding​ ERP? A. The objective of an ERP system is to coordinate a​ firm's whole business. B. ERP allows companies share a common database and business practices throughout the enterprise. C. ERP usually provides financial and human resource management information. D. ERP promises​ slow, but​ accurate, information.

D

Which of the following would NOT be a concerning pattern on a control​ chart? A. Two points very near the lower control limit B. One point above the upper control limit C. Five consecutive points above the central line. D. All of the above are concerning patterns on a control chart

D