True/false questions

Complicated models are preferred over simplified ones.

False

Higher production implies higher productivity.

False

If output is more than the optimal level, increasing the output results in decreasing average per unit costs and this is called " Economies of Scale."

False

Increasing capacity at an idle station improves system performance.

False

Increasing capacity at an idle station would significantly improve system performance.

False

Influence charts show the formula that will be used to create spreadsheet models.

False

It becomes less expensive to store and transport goods, as they are more value-added by the processes in the supply chain.

False

Process is one or more actions that transform resources into outputs.

False

Production and productivity are the same things.

False

Production is the creation of goods.

False

Strategy is the reason for an organization's existence.

False

There are three types of leading strategies: leading, following, and benchmarking.

False

There are two types of models: physical and mathematical models.

False

Operations management is the management of systems or processes that create goods and/or service.

True

Productivity is defined as the ration of input to output.

True

Shadow price for binding constraints is greater than 0.

True

Shadow price for unbinding constraints is always equal to 0.

True

Spreadsheet principles are parameterization, modularization, sequencing, and documentation.

True

Strategy is a plan/roadmap for achieving organizational goals.

True

Tacking productivity measures over time enables managers to judge organizational performance and decide where improvements are needed.

True

Work Breakdown Structure (WBS) is a hierarchal listing of what must be done during a project.

True

It is possible that a highly available system can be unreliable.

True

Mission is the reason or an organization's existence.

True

Major elements of an optimization problem are decision variables, objective function, parameters, and constraints.

True

At break-even production quantity profit becomes $0.

True

At indifference point, cost of buying and cost of making are equal.

True

Bottleneck is an operation in a sequence of operations whose capacity is lower than that of the other operations.

True

Bottleneck operation is the slowest operation in a sequence of operations.

True

Bottleneck station has the highest utility.

True