MGT Exam 3
It is difficult to separate the operations management functions from marketing in services.
true
The service-system design matrix identifies six forms of service encounters.
true
yield demand is important to that can be used to help shape demand
true
yield management is the process of allocating the right type of capacity to the right type of customer the right prices at the right time to maximize revenue
true
A finite population in waiting line management refers to a population that is large enough in relation to the service system so that the change in population size caused by subtractions or additions to the population does not significantly affect the system probabilities.
false infinite
In a practical sense, a finite population is one that potentially would form a very long line in relation to the capacity of the serving system
false infinite population
a constant arrival rate is more common in productive systems than variable arrival rate
false
Poka-yoke is roughly translated from Japanese as "quality management."
false "avoid mistakes"
MRP is a logical, easily understandable approach to the problem of determining the number of parts, components, and materials needed to produce each end item
true
Poka-yokes are procedures that block the inevitable mistake from becoming a service defect.
true
lot-for-lot (L4L) is the most common lot sizing technique
true
An input to the material requirements planning (MRP) system is an inventory records file.
true
Backordering costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs.
true
Costs incurred in hiring, training, and laying off personnel are considered relevant aggregate operations planning costs.
true
Firms that match the production rate to the order rate by hiring and laying off employees as the order rate varies are following what is known as the chase strategy.
true
Fixed and variable costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs.
true
Highest-profit customer first is a queue discipline discussed in the textbook.
true
Ideally, in waiting line or queuing analysis, we want to balance the cost of service capacity with the cost of waiting
true
In a department 25 machines are kept running by three operators who respond to randomly occurring equipment problems. An analyst who wanted to know how much production was being lost by machines waiting for service could use queuing theory analysis to find out.
true
In a department, 25 machines are kept running by three operators who respond to randomly occurring equipment problems. An analyst wanting to know whether to add a fourth operator or downsize to two operators would be helped by using queuing theory analysis.
true
Longest waiting time in line is a queue discipline discussed in the textbook.
true
MRP is most valuable in industries where a number of products are made in batches using the same productive equipment
true
Manufacturing firms maintain bill of materials (BOM) files, which are simply a sequencing of everything that goes into a final product
true
Poka-yoke is roughly translated from Japanese as "avoid mistakes."
true
Services often take the form of repeated encounters involving face-to-face interactions
true
The Poisson probability distribution is used in waiting line management when one is interested in the number of arrivals to a queue during some fixed time period.
true
The aggregate operations plan of "inventory on hand" refers to the balance of unused inventory carried over from the previous time period
true
The aggregate operations planning variable "inventory on hand" refers to the balance of unused inventory carried over from the previous time period.
true
The aggregate operations planning variable "workforce level" refers to the number of workers needed to accomplish the planned production.
true
Which following queue discipline is discussed in the textbook?
emergencies first
the operations plan should not be updated but should be followed precisely until the long-term planning horizon has passed
false it does need to updated occasionally
In the service-system design matrix, a mail contact service encounter is expected to have which of the following? A. High sales opportunity B. High degree of customer/server contact C. High production efficiency D. Low sales opportunity E. None of these
low sales opportunity
The "service blueprint" is a classification of services
false
A tellers' window in a bank is an example of a single-channel, multiphase queuing system
false multichannel, single phase
One of the main purposes of an MRP system is which of the following? A. Track inventory levels. B. Create productive capacity. C. Decrease layers of management. D. Develop schedules specifying when each component should be ordered or produced. E. Upgrade manufacturing's professionalism.
develop schedules specifying when each component should be ordered or produced
which of the following industry types will not benefit greatly form the application of MRP? manufacture to order assemble to order fabricate to order assemble to stock none of these
fabricate-to-order
Every service has a service package, which is defined as a bundle of goods and services provided in some environment. The service package consists of five features. Which of the following is not one of these features?
facilitating services
A service system with a high degree of customer contact is less difficult to control than a low degree of customer contact service system
false
Aggregate sales and operations planning occur in a company about every 3 to 18 months.
false
the lot for lot sizing technique minimizes carrying costs by taking into account setup costs and capacity limitations
false
Arrival characteristics in a queuing problem analysis include the length of the queue.
false
Because a level production strategy does not require adjustment in the short-to-medium term, aggregate sales and operations planning is not required.
false
the customer arrivals in a queuiry system come almost exclusively from infinite populations or finite populations
false
best customer last is a queue discipline discussed in the textbook
false best customer first
The time-phased plan specifying how many and when the firm plans to build each end item is called the Materials Requirements Plan (MRP.)
false Master Production Schedule (MPS)
the admissions system in a hospital for patients is an example of a single channel, single phase query system
false Multichannel, multiphase
in a practical sense an infinite queue is one that includes every possible member of the served population
false finite queue
MRP stands for Manufacturing Requirements Planning.
false material requirement planning
Which of the following is an input to the master production schedule? A. Prototype products from product development B. Aggregate component schedule C. Peg reports D. Exception reports E. Forecasts of random demand from customers
forecasts of random demand from customers
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 item averaging
least unit cost
maintaining a stable workforce working at a constant output rate while shortages and surpluses are absorbed by fluctuating inventory levels order backlogs, and allowing lost sales Is which of the following production planning strategies?
level
In the service-system design matrix, a face-to-face total customization service encounter is expected to have which of the following? A. Low sales opportunity B. Low production efficiency C. High production efficiency D. Low degree of customer/server contact E. None of these
low production efficiency
In the service-system design matrix, a face-to-face total customization service encounter is expected to have which of the following? A. Low sales opportunity B. Low production efficiency C. High production efficiency D. Low degree of customer/server contact E. None of these
low production effieciency
In the service-system design matrix, a face-to-face loose specs service encounter is expected to have which of the following? A. Low sales opportunity B. Low production efficiency C. High production efficiency D. Low degree of customer/server contact E. None of these
low-production efficiency
Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we would expect which of the following? A. A consistent lag of supply behind demand B. Minimized carrying costs C. Minimized set-up costs D. A just in time management philosophy E. Minimized quality problems
minimized carrying costs
Buying food at a large food store with multiple checkout counters features 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 these
multichannel, single phase
Machine breakdown and repair in a 12-machine factory having three repair mechanics would develop which type of queuing system line structure concerning machine breakdowns? A. Single channel, single phase B. Single channel, multiphase C. Multichannel, single phase D. Multichannel, multiphase E. None of these
multichannel, single phase
A company is concerned about the number of customers who have to wait for service in its customer service department. Assume the rate at which customers are serviced is 12 per hour. Using the infinite queuing notion for the models presented in the textbook, which of the following is the mean time between arrivals? A. 12 minutes B. 6 minutes C. 2 minutes D. 1 minute E. None of these
none of these
Which of the following is a suggestion for managing queues that is mentioned in the textbook? A. Put up a serpentine lane to keep people from jumping ahead in line. B. Use humor to defuse a potentially irritating situation. C. Segment the customers. D. Assure customers that the wait is fair, and inform them of the queue discipline. E. Tell people in the queue that each will be served as soon as possible.
segment the customers
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 these
single channel, multiphase
Getting an autograph from a famous person might involve standing in which type of queuing line structure? A. Single channel, single phase B. Single channel, multiphase C. Multichannel, single phase D. Multichannel, multiphase E. None of these
single channel, single phase
which of the following is considered a "pure" production planning strategy
stable work force, variable work hours
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. Task B. Time C. Teamwork D. Trust E. Talent
task
customer contact refers to creation of the service
false
In a practical sense, an infinite queue is one that includes every possible member of the served population
false finite queue
the "line of visibility" is an example of
the service blueprint
In an overview of the major operations planning activities in a typical logistics organization, which of the following activities follows aggregate sales and operations planning? A. Process planning B. Workforce scheduling C. Vehicle loading D. Materials requirements planning E. Order scheduling
vehicle loading
which of the following is not one of the number of interesting issues that arise in yield management?
designing yield management programs can't be imputed by a computer
A modular bill of materials includes items with fractional options.
false
The increasing complexity of modern operations management has led to the virtual abandonment of simple cut-and-try charting and graphical methods to develop aggregate operations plans
false
The least unit cost method of lot-sizing adds ordering, stock-out 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.
false
The objective of the aggregate operations plan is to ensure that the marketing and sales plans are realistic.
false
The sales and marketing plans are typically developed separately from the aggregate operations plan as a way of cross-checking results to ensure the integrity of assumptions about the future
false
The term "queue discipline" involves the art of controlling surly and unruly customers who have become irritated by waiting.
false
Which of the following is not a queue discipline discussed in the textbook? A. First come, first served B. Last in, first out C. Limited needs D. Shortest processing time E. Best customer first
last in, first out
which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal?
least total cost (LTC)
which of the following could be used for lot sizing in an MRP system? peg inventory time bucket size low-level coding inventory record file least unit cost
least unit cost
For an infinite queuing situation, if the arrival rate for loading trucks is 5 trucks per hour, what is the mean time between arrivals? A. 5 hours B. 2.5 hours C. 0.2 hour D. 0.1 hour E. None of these
.2 hours
Assume the service rate for a queue in a truck-loading operation is 2 trucks per hour. Using the infinite queuing notion for the models presented in the textbook, which of the following is the average service time? A. 2 hours B. 1 hour C. 0.5 hour D. 0.25 hour E. None of these
0.5 hours
The service-system design matrix identifies five alternative forms of service encounters.
FALSE The service-system design matrix in identifies six common alternatives
In a waiting line situation, multiple lines occur only when there are multiple servers.
FALSE The term multiple lines refers to the single lines that form in front of two or more servers or to single lines that converge at some central redistribution point.
Which of the following is not a suggestion for managing queues presented in the textbook?
Determine an acceptable waiting time for your customers
MRP is based on dependent demand
TRUE
Which of the following are the three major components of a queuing system?
The source population and the way customers arrive at the system, the serving systems, and how customers exit the system.
Which of the following are alternative possible service encounters included in the service-system design matrix? A. Mail contact B. Warranty C. Sales call D. Field service E. None of these
a mail contact
the service blueprint makes the distinction between
high and low customer contract aspects of the service
Which of the following is an alternative possible service encounter included in the service-system design matrix? A. Face-to-face distance B. Internet C. Questionnaire response D. Automated teller (ATM) E. Response card encounter
internet
Which of the following is considered a primary report in an MRP system? A. Planned order schedule B. Peg report C. Planning report D. Inventory accuracy report E. Aggregate production plan report
planned order schedules
A car wash is an example of a single-channel, multiphase queuing system
true
t
t
Matching the production rate to the order rate by hiring and laying off employees as the order rate varies is which of the following pure production planning strategies? A. Stable workforce, variable work hours B. Chase C. Level D. Meeting demand E. Minimizing inventory
chase
In conducting aggregate operations planning, there are a number of required inputs. Which of the following inputs are considered external to the firm? A. Competitor behavior and economic conditions B. Market demand and inventory levels C. Subcontractor capacity and current workforce D. Economic conditions and current physical capacity E. Raw material availability and inventory levels
competitor behavior and economic conditions
In conducting aggregate operations planning, there are a number of required inputs. Which of the following inputs are considered internal to the firm? A. Inventory levels and economic conditions B. Market demand and subcontractor capacity C. Current physical capacity and current workforce D. Competitor behavior and current workforce E. Current physical capacity and raw material availability
current physical capacity and current workforce
Which of the following refers to the physical presence of the customer in a service system? A. Creation of the service B. Customer contact C. Intermittent production D. Continuous production E. None of these
customer contact
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.
inventory is perishable
Which of the following is not a suggestion for managing queues presented in the textbook? A. Try to divert your customer's attention when waiting. B. Segment the customers. C. Encourage customers to come during the slack periods. D. Train your people to be friendly. E. Periodically close the service channel to temporarily disperse the line.
periodically close the service channel to temporarily disperse the line
Which of the following is considered a high-contact service operation? A. On-line brokerage house B. Internet sales for a department store C. Physician practice D. Telephone life insurance sales and service E. Automobile repair
physician practice
In an overview of the major operations planning activities in a typical organization, which of the following activities precedes aggregate sales and operations planning?
process planning
In conducting aggregate operations planning, there are a number of required inputs. Which of the following inputs are considered external to the firm? A. Inventory levels and market demand B. Raw material availability and competitor's behavior C. Current workforce and economic conditions D. Current physical capacity and market demand E. Subcontractor capacity and inventory levels
raw materials availability and competitors behavior
Which of the following is a characteristic that can be used to guide the design of service systems?
services cannot be inventoried
which of the following is an input to the master production schedule (MPS)? the bill of materials the aggregate plan the exception report inventory records file planned ordered schedules
the aggregate plan
Which of the following is an example of a finite population in a queuing system?
the department faculty line at the copy machine
From an operational perspective, yield management is least effective under which of the following circumstances?
the product can be kept to be sold when demand is stronger
In essence, a queuing system includes several major components. Which of the following is not one of them? A. Source population B. Servicing system C. How the customer exits the system D. The queue discipline E. None of these
the queue discipline
Which of the following is one of the main purposes of a MRP system? A. Educate personnel in basic work rules B. To determine the amount of materials needed to produce each end item. C. Stimulate the work force D. Decrease labor requirements E. Increase inventory accuracy
to determine the amount of materials needed to produce each item
from the list below select the one item that the master scheduler does not do to ensure good master scheduling
trade off conflicts to make it likely that manufacturing will meet its goals
From an operational perspective, yield management is least effective under which of the following circumstances? demand is highly variable the product can be sold in advance demand can be segmented by customer fixed costs are high and variable costs are low demand is stable and close to capacity
demand is stable and close to capacity
in a typical inventory status record which of the following would you not expect to see?
lost items
Buying a ticket for a college football game where there are multiple windows at which to buy the ticket features 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 these
multichannel, single phase
A roller coaster ride in an amusement park employs which type of queuing system line structure?
single channel, single phase
which of the following is most closely related to why a firm may implement MRP?
so they can order the right parts
Because little or no inventory is carried in a service operation, it is easy to separate the operations management functions from marketing in services.
false
Firms facing cyclical demand fluctuations would be wise to introduce complementary products whose cycles are the same as their current products.
false
Foregone profit margins are considered as relevant aggregate operations planning costs.
false
Gas stations, loading docks, and parking lots have infinite potential length of lines for their respective queuing systems.
false
Generally, determining lot sizes in MRP systems is simple.
false
Sales and Operations Planning process is made up of a variety of analytical techniques that interact to produce short and intermediate term goals
false
The economic order quantity (EOQ) lot sizing technique produces or acquires exactly the amount of product that is needed each time period with none carried over into future periods.
false
The work process involved in providing the service must involve the physical presence of the customer in the system.
false
effective management of services requires clear focus on understanding operations, so much so, that it may even require the exclusion of consideration of marketing or personnel
false
in a net change MRP system requirements and schedules are considered right and never updated
false
the aggregate operations plan differs in virtually every aspect in service organizations as contrasted with manufacturing organizations
false
Which of the following is a suggestion for managing queues presented in the textbook? A. Train your servers to be friendly. B. Tell customers that the line should encourage them to come during slack periods. C. Give each customer a number. D. Periodically close the service channel to temporarily disperse the line. E. Use humor to defuse a potentially irritating situation.
training your servers to be friendly
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
treatment
A rate fence is a logical justification for different prices for what is essentially the same service.
true
A variable arrival rate is more common in waiting line management than a constant arrival rate.
true
Accurate medium-range planning increases the likelihood of operating within the limits of a budget.
true
An important aspect of service products is that they cannot be inventoried.
true
An infinite population in waiting line management refers to a population that is large enough in relation to the service system so that the change in population size caused by subtractions or additions to the population does not significantly affect the system probabilities.
true
The central problem in virtually every waiting line situation is a decision balancing the costs of adding services with the costs of waiting.
true
The demand on a hospital's emergency medical services is considered an uncontrollable arrival pattern of the calling population.
true
The economic order quantity (EOQ) lot sizing technique uses the "square root formula" to balance set-up cost and carrying cost.
true
The least total cost method (LTC) lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal.
true
The least unit cost method of lot-sizing technique 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.
true
The main purpose of the aggregate production plan is to specify the optimal combination of workforce level and inventory on hand.
true
The term "encounter" is defined by Webster's Dictionary as "meeting in conflict or battle" and is used to also designate meetings between consumers and service systems.
true
The time-phased plan specifying how many and when the firm plans to build each end item is called the master production schedule (MPS).
true
There are different queuing models to fit different queuing situations.
true
in a services organization strategic capacity planning follows process planning
true
the three main inputs to an MRP system are the bill of materials, the master schedule, and inventory records file
true
The main purpose of aggregate operations planning is to specify the optimal combination of which of the following? A. Workforce levels and inventory on hand B. Inventory on hand and financing costs for that inventory C. The strategic plan and the products available for sale D. The workforce level and the degree of automation E. Operational costs and the cash flow to support operations
workforce levels and inventory on hand