SCM411

Product layouts can more easily adapt to variations in product requirements than process layouts can. True False

False

Common reasons for redesign of layouts include: (I) efficient operations. (II) accidents or safety hazards. (III) new products or services. (IV) morale problems. I and II II and IV I and III II, III, and IV I, II, III, and IV

II, III, and IV

Which of the following is not a stage in the decision-making process? Select the best alternative. Develop suitable alternatives. Analyze and compare alternatives. Monitor the competition. Specify objectives.

Monitor the competition.

Which of the following is not one of the assumptions of the basic EOQ model? Annual demand requirements are known and constant. Lead time does not vary. Each order is received in a single delivery. Quantity discounts are available. Ordering and holding costs have been estimated reasonably accurately.

Quantity discounts are available.

Design capacity refers to the maximum output rate that can be achieved under ideal conditions. True False

T

In decision theory, states of nature refer to possible future conditions. True False

T

Intermittent processing can take the form of batch processing or a job shop. True False

T

The goal of line balancing is to assign tasks to workstations in such a way that the workstations have approximately equal time requirements. True False

T

The rate of demand is an important factor in determining the ROP. True False

T

The greater the degree of customer involvement, the more challenging the design and management of operations. True False

TRUE

Which of the following characterizes decision making under uncertainty? Decision makers must rely on probabilities in assessing outcomes. The likelihood of possible future events is unknown. Relevant parameters have known values. Certain parameters have probabilistic outcomes. Lack of knowledge about how risk-averse the decision maker is.

The likelihood of possible future events is unknown.

If no variations in demand or lead time exist, the ROP will equal the EOQ. expected usage during lead time. safety stock. the service level. the EOQ plus safety stock.

expected usage during lead time.

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 intervals. blanket ordering

fixed order intervals.

The type of layout in which workers, materials, and equipment are moved to the product as needed is process. product. fixed-position. batch. mass.

fixed-position.

Which type of processing system tends to produce the most product variety? assembly job shop batch continuous mass customization

job shop

Which of the following is not true about process layouts when they are compared to product layouts? higher in-process inventories lower span of supervision lower rates of output more involved cost accounting lower unit costs

lower unit costs

Seasonal variations are often easier to deal with in capacity planning than random variations because seasonal variations tend to be: smaller. larger. predictable. controllable. less frequent.

predictable.

Risk implies that there are certain parameters that have _____ outcomes. probabilistic complex unknown uncertain irrational

probabilistic

The purpose of cycle counting is to count all the items in inventory. count bicycles and motorcycles in inventory. reduce discrepancies between inventory records and actual quantities. reduce theft. count 10 percent of the items each month.

reduce discrepancies between inventory records and actual quantities.

The difference between expected payoff under certainty and expected payoff under risk is the expected: monetary value. value of perfect information. net present value. rate of return. profit.

value of perfect information.

Doctor J. is considering purchasing a new blood analysis machine to test for HIV; it will cost $60,000. He estimates that he could charge $25.00 for an office visit to have a patient's blood analyzed, while the actual cost of a blood analysis would be $5.00. What would be his profit if he were to perform 5,000 HIV blood analyses? $0 $40,000 $60,000 $25,000 $100,000

$40,000

Which of the following is not true about the systems approach? A systems viewpoint is almost always beneficial in decision making. A systems approach emphasizes interrelationships among subsystems. A systems approach concentrates on efficiency within subsystems. A systems approach is essential whenever something is being redesigned or improved. All of the choices are true.

A systems approach concentrates on efficiency within subsystems.

Allowances for which of these factors would be subtracted from design capacity when calculating effective capacity? personal time equipment maintenance scheduling problems changing the mix of products All of these choices are correct

All of these choices are correct

Among decision environments, uncertainty implies that states of nature have wide-ranging probabilities associated with them. True False

F

In the A-B-C approach, C items typically represent about 15 percent of the number of items, but 60 percent of the dollar usage. True False

F

Increasing capacity just before a bottleneck operation will improve the output of the process. True False

FALSE

Measurement of productivity in service is more straightforward than in manufacturing since it is not necessary to take into account the cost of materials. TRUE OR FALSE

FALSE

Which one of the following is implied by a lead time service level of 95 percent? Approximately 95 percent of demand during lead time will be satisfied. Approximately 95 percent of inventory will be used during lead time. The probability is 0.95 that demand during lead time will exactly equal the amount on hand at the beginning of lead time. The probability is 0.95 that demand during lead time will not exceed the amount on hand at the beginning of lead time. The probability is 0.95 that the order will arrive after the on-hand inventory is exhausted.

The probability is 0.95 that demand during lead time will not exceed the amount on hand at the beginning of lead time

Which of the following is not a benefit of using models in decision making? They provide a standardized format for analyzing a problem. They serve as a consistent tool for evaluation. They are easy to use and less expensive than dealing with the actual situation. They force the decision maker to take into account qualitative issues such as personalities and emotions. They offer insights into fundamental issues at play in a decision-making setting

They force the decision maker to take into account qualitative issues such as personalities and emotions.

Which of these items would be most likely to be made with a fixed-position layout? a large, ocean-going cruise ship applesauce a computer chip toothpaste all of these

a large, ocean-going cruise ship

A decision tree is: an algebraic representation of alternatives. a behavioral representation of alternatives. a matrix representation of alternatives. a schematic representation of alternatives. limited to a maximum of 12 branches.

a schematic representation of alternatives.

Which of the following is a type of transformation process used by operations to convert inputs into outputs? cutting storing transporting analyzing all of these choices are transformation processes

all of these choices are transformation processes

In which type of processing system would gasoline be produced from crude oil? job shop batch assembly continuous project

continuous

The type of processing system which is used for highly standardized products is continuous. intermittent. project. batch. unit.

continuous.

Which of the following is not a characteristic of service operations? intangible output high customer contact high labor content easy measurement of productivity low uniformity of input

easy measurement of productivity

The maximum possible output given a product mix, scheduling difficulties, personal time, and so on is: utilization. design capacity. efficiency. effective capacity. available capacity.

effective capacity.

Marketing personnel and product designers must work closely with operations to successfully develop and produce new products because operations personnel can best judge how _____________ new product designs will be. marketable segmentable manufacturable profitable nameable

manufacturable

Determining the worst payoff for each alternative and choosing the alternative with the "best worst" is the approach called: minimin. maximin. maximax. minimax regret. Laplace.

maximin.

In the basic EOQ model, if lead time increases from five to 10 days, the EOQ will double. increase, but not double. decrease by a factor of 2. remain the same. increase, but more information is needed to calculate exactly how much.

remain the same.

Which of the following is not a strategy to manage service capacity or cope with service capacity limitations? hiring extra workers storing inventories of the service pricing and promotion part-time workers subcontracting

storing inventories of the service

Product design and process selection are examples of _______ decisions. financial tactical system design system operation forecasting

system design

Capacity planning requires an analysis of needs: what kind, how much, and when. True False

t