OPMT 303 study 2

during the design phase

Fixing a problem will often cost money; to minimize these costs it is best to find and fix the problem _______. - just before shipping our product to the customer - immediately after we complete the last operation - during the design phase - just before we begin the first production operation - regardless of when you fix the problem, costs are about the same

219 units

Given that unit cost = $25, annual carrying charge = 10% of unit cost, annual demand = 4,000 units, and ordering cost = $15 per order, the Economic Order Quantity (EOQ) is 22 units 155 units 219 units 300 units 319 units

0.10

The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 50 final grades from last year for each instructor, with the following results: Instructor Number of Failures Prof. A 2 Prof. B 4 Prof. C 6 Prof. D 8 What is the estimate of the mean proportion of failures for these instructors? 0.10 0.12 0.05 .04 .06

0.04

The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 50 final grades from last year for each instructor, with the following results: Instructor Number of Failures Prof. A 2 Prof. B 4 Prof. C 6 Prof. D 8 What is the sample proportion of failures (p) for Prof. A? 0 0.02 0.04 0.16 0.06

none

The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 50 final grades from last year for each instructor, with the following results: Instructor Number of Failures Prof. A 2 Prof. B 4 Prof. C 6 Prof. D 8 Using .95 control limits, (5% risk of Type I error), which instructor(s), if any, should he conclude is (are) out of control? none Prof. D Prof. C both Prof. D and Prof. C all except A

0.183 and 0.016

The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 50 final grades from last year for each instructor, with the following results: Instructor Number of Failures Prof. A 2 Prof. B 4 Prof. C 6 Prof. D 8 What are the .95 (5% risk of Type I error) upper and lower control limits for the p-chart? 0.90 and 0.10 0.025 and 0.010 0.183 and 0.016 0.1 and 0.06 0.0177 and 0.0049

1

A firm has 43 units of a certain product on hand. Forecasts for the first two planning periods are 20 units each. A production quantity of 80 units is planned to be available in period 3. Customer orders are 22 for period 1 and 17 for period 2. What is the projected on-hand inventory at the end of period 2? 21 1 12 20 impossible to say without more information

33

A firm has 72 units of product A on hand. Forecasts of demand are for 10 units per week. A Master Production Schedule (MPS) quantity of 150 units is planned to arrive in period 4. Customer orders are 17 for period 1, 12 for period 2, 8 for period 3, and 4 for period 4. What is the projected on hand inventory at the end of period 3? 27 33 42 20 32

35

A firm has 72 units of product A on hand. Forecasts of demand are for 10 units per week. A Master Production Schedule (MPS) quantity of 150 units is planned to arrive in period 4. Customer orders are 17 for period 1, 12 for period 2, 8 for period 3, and 4 for period 4. What quantity is available for commitment (available to promise) to new customers in weeks 1, 2, and 3? 32 35 37 42 47

300

A master production schedule quantity of 300 units will arrive in week 6. Weekly demand over weeks 3 through 10 is forecasted at 50 units. At present, orders have been booked in various quantities in weeks 1, 2, 3 and 4. What is the available to promise for week 6? 50 6 300 100 Cannot be determined without projected on-hand information

0.005 to 0.035

A process that produces computer chips has a mean of 0.02 defective chip and a standard deviation of 0.005 defective chip. Which allowable variation is this process capable of producing? In other words, exactly which upper and lower specification limits of a chip fit the process capability of this process? 0.02 to 0.005 0.005 to 0.035 0.025 to 0.035 0.02 to 0.052 0.0035 to 0.006

a voluntary group of employees

A quality circle is ________. - responsible for quality - total quality control - an inspection stamp found on meat - a voluntary group of employees - none of the above

c. The process range is in control, but the process mean is out of control.

A range control chart (R-chart) was developed with LCLR = 0 and UCLR = 2.90. Similarly, an X-Bar chart was developed with LCLx-bar = 15 and UCLx-bar = 24. Five (5) additional samples of size 4 were taken from a process. The means and ranges of the five samples are given in the table below. Range of each sample: 1.75, 2.42, 2.75, 2.04, 2.80 Mean of each sample: 29.5, 22.3, 17.4, 20.1, 18.9 Is the process in control? a. Both the process range and the process mean are in control. b. Both the process range and the process mean are out of control. c. The process range is in control, but the process mean is out of control. d. We do not have enough information to determine if the process is in control or not. e. The process is in control but a warning signal should be issued.

50 pounds remaining

A restaurant owner uses 10 pounds of ground beef each day. The restaurant is open 360 days each year. Order cost for ground beef is $2.00 per order, and carrying costs are $4.00 per pound per year. Lead time for each order is 5 days, and the ground beef itself costs $3.00 per pound. At what point should the owner reorder ground beef? 50 pounds remaining 60 pounds remaining 70 pounds remaining 80 pounds remaining 90 pounds remaining

170

A restaurant owner uses 10 pounds of ground beef each day. The restaurant is open 360 days each year. Order cost for ground beef is $2.00 per order, and carrying costs are $4.00 per pound per year. Lead time for each order is 5 days, and the ground beef itself costs $3.00 per pound. Average demand for an item is 50 units per day, safety stock is 20 units, and lead time is three days. The ROP is: 130 150 160 170 200

40 pounds

A restaurant owner uses 10 pounds of ground beef each day. The restaurant is open 360 days each year. Order cost for ground beef is $2.00 per order, and carrying costs are $4.00 per pound per year. Lead time for each order is 5 days, and the ground beef itself costs $3.00 per pound. If the owner were to order 80 pounds of ground beef at a time, what would be the average inventory level? 20 pounds 40 pounds 55 pounds 65 pounds 75 pounds

8 days

A restaurant owner uses 10 pounds of ground beef each day. The restaurant is open 360 days each year. Order cost for ground beef is $2.00 per order, and carrying costs are $4.00 per pound per year. Lead time for each order is 5 days, and the ground beef itself costs $3.00 per pound. If the owner were to order 80 pounds of ground beef at a time, what would be the length of an order cycle? 6 days 7 days 8 days 9 days 10 days

60 pounds

A restaurant owner uses 10 pounds of ground beef each day. The restaurant is open 360 days each year. Order cost for ground beef is $2.00 per order, and carrying costs are $4.00 per pound per year. Lead time for each order is 5 days, and the ground beef itself costs $3.00 per pound. What is the economic order quantity for ground beef? 60 pounds 50 pounds 40 pounds 30 pounds 20 pounds

c. the activity of matching supply of output with demand over the medium time range.

Aggregate Planning is a. the activity of developing a plan that combines the efforts of the firm and its suppliers. b. the activity of developing a plan that combines the efforts of the firm and its distributors. c. the activity of matching supply of output with demand over the medium time range. d. the activity of matching supply of output with demand over the short time range. e. All of the above.

I and II → Even capable, in control processes can have observations outside of control limits or tolerances.

If a process is performing as it should, it is still possible to obtain observations which are outside of which limits? (I) tolerances (II) control limits (III) process variability - I - II - I and II - II and III - I, II, and III

retention

If customer satisfaction doesn't always lead to customer loyalty, firms may need to focus additional effort on __________ strategies. - remediation - retention - rework - repatriation - reprocessing

fixed order interval

In a supermarket, a vendor's restocking the shelves every Monday morning is an example of: safety stock replenishment economic order quantities reorder points fixed order interval blanket ordering

10

In an A-B-C system, the typical percentage of the number of items in inventory for A items is about: 10 30 50 70 90

using combination of inventories, overtime, part time, and back orders

In order to use the "level capacity strategy," variations in demand are met by: - varying output during regular time without changing - employment levels - varying output during regular time by changing employment levels - (a) and (b) - using combination of inventories, overtime, part time, and back orders - price adjustments

I, II, III, and IV

Management behaviors supporting an organizational culture that encourages continuous improvement include which of the following? (I) develop a vision statement for the organization (II) develop a reward system that promotes the philosophy (III) institute continuous training programs (IV) make decisions that adhere to the philosophy - I, II, and IV - I, II, III, and IV - I and III - II, III, and IV - II and IV

I, II and III

Managers have obligations to a wide variety of stakeholders such as shareholders, employees and customers. When considering outsourcing production to offshore suppliers, managers have to weigh __. I) Cost benefits that might make shareholders wealthier II) Quality issues that might make firms less productive and/or products riskier III) The investments already tied up in relationships with existing suppliers - I - II - III - I and II only - I, II and III

.0424

The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 50 final grades from last year for each instructor, with the following results: Instructor Number of Failures Prof. A 2 Prof. B 4 Prof. C 6 Prof. D 8 What is the estimate of the standard deviation of the sampling distribution for an instructor's sample proportion of failures? .0025 .0424 .0592 .0623 .0086

5

The number of runs up and down for the data above is: - 3 - 4 - 5 - 6 - none of these

Pareto analysis

The quality control improvement tool which distinguishes between the "important few" and the "trivial many" is __________. - brainstorming - check sheets - Pareto analysis - cause-and-effect diagrams - fail-safe methods

temporary storage of delivered goods

Which of the following is least likely to be included in order costs? processing vendor invoices for payment moving delivered goods to temporary storage inspecting incoming goods for quantity taking an inventory to determine how much is needed temporary storage of delivered goods

Tolerances > control limits > process variability → Process variability will always be greater than control limits.

Which of the following relationships must always be incorrect? - Tolerances > process variability > control limits - Process variability > tolerances > control limits - Tolerances > control limits > process variability - Process variability > control limits > tolerances - Process variability <Tolerances<control limits

rough-cut capacity planning

Which of the following steps is necessary to ensure that a master schedule is valid? worker scheduling order promising inventory counting order booking rough-cut capacity planning

the EOQ

Which one of these would not be a factor in determining the reorder point? the EOQ the lead time the variability of demand the demand or usage rate all are factors