4362 Exam 3
Safety stock and safety lead time are mechanisms to cope with
(All options)
Which of the following are functions of inventory
(All options) a. protecting against demand & supply uncertainty b. avoiding production disruptions through the use of WIP inventory c. Meeting anticipated customer demand
Which of the following statements is (are correct)
(all options)
The need for safety stocks can be reduced by an operations strategy which:
All options are incorrect
PAC is located in which part (phase) of the MPC framework?
Back end
The general objective of all MRP lot sizing procedures is to:
Balance inventory-related costs to achieve a low total cost requirement schedule
As the annual demand doubles, the EOQ also doubles. (T/F)
False
At any time, if a set of n jobs is to be scheduled on m machines, there are n*m ways to schedule the jobs (T/F)
False
Everything else remaining the same, if Lead Time (LT) increases, ROP will decrease (T/F)
False
Everything else remaining the same, if Lead Time (LT) increases, ROP will decrease (T/F)
False
In the A-B-C approach, C items typically represent about 15% of the number of items but 60% of the dollar usage (T/F)
False
Inventory items that are found at many points in the supply chain including finished goods in factories, field warehouses, and distribution centers; spare-parts inventories; office and factory supplies; and enhance materials are referred to as dependent demand inventories (T/F)
False
Lead times are typically made up of operation or machine run time per piece x lot size (T/F)
False
Non-bottleneck resources are the focus of the TOC (T/F)
False
POQ with T>1 will minimize inventories (T/F)
False
Short term capacity planning should be driven by identification and management of non-bottlenecks (T/F)
False
TOC stands for Theory of Operating Controls (t/f)
False
The EOQ is based on the assumption of lumpy demand (T/F)
False
The EOQ lot sizing technique uses the "square root formula" to balance setup costs, carrying cost, and cost of stock outs (T/F)
False
The critical ratio rule uses the information about the processing time of the job in the current work center only (T/F)
False
The reason KBB is the guaranteed optimal solution is because it explicitly evaluates all possible combinations and selects the best (T/F)
False
A CR (critical ratio) > 1 of a job implies that the job is already late (T/F)
False CR=1 on time CR<1 job is late CR>1 Job is not late
Which of the following statement(S) is (are) TRUE?
In a one machine system, the EDD rule for sequencing the order of jobs will result in minimizing average lateness
Which of the following statements is (are) TRUE
In a one machine system, the EDD rule for sequencing the order of jobs will result in minimizing average lateness
In TOC application, "breaking the constraint" or "elevate the bottleneck(s) means
Increasing capacity of the bottle neck
Which of the below lot sizing procedures provides an optimal solution in MRP lot sizing ?
KBB
Which of the following lot sizing rules guarantees and optimal solution when demand is constant
KBB & EOQ
Freezing the schedule is one way of mitigating:
MRP system nervousness
The total time to process an entire set of jobs at a work center is referred to as
Make-span
Which of the following statements about implicit enumeration?
Only promising alternatives are judiciously selected & evaluated
The lowest planning and control level in MPC is
PAC
which of the following is NOT an assumption of the basic EOQ model
Quantity discounts can be taken advantage of for large lot sizes
Which sequencing rule ignores all due date information as well as all information about work remaining?
SPT
Which one of the following is implied by a lead time service level of 95 percent?
The probability is 0.95 that demand during lead time will not exceed the amount on hand at the beginning of lead time.
A bottleneck is an operation that has the lowest capacity of any operation in the process. (T/F)
True
A critical information service provided by MRP is apprising the SFC system of all changes in material plans (T/F)
True
A small change caused by a relatively minor shift in the MPS may amplify the explosion process and use of the discrete lost-sizing procedures (T/F)
True
Annual ordering cost is inversely related to order size (T/F)
True
In TOC, bottleneck work centers are scheduled using finite loading techniques. (T/F)
True
MRP lot sizing procedures are designed specifically for the discrete demand case (T/F)
True
POQ and LFL will be the same if TBO=1 period (T/F)
True
Sequencing rules simply prioritize jobs at work centers without reference to the capacity (T/F)
True
The SFC system of PAC is updated on changes in the MRP system (T/F)
True
The SPT rule represents the best way to pick the next job to run, if the objective is to minimize average time per job, to minimize average number of jobs in the system, or to minimize average job lateness (T/F)
True
The TOC scheduling is also referred to as the drum-buffer-rope (T/F)
True
The Theory of Constraints scheduling loads work centers to full capacity by using finite scheduling. (T/F)
True
The primary PAC objective is managing the materials flow to meet MPC plans (T/F)
True
The primary connection between PAC and the rest of the MPC systems comes from material requirements plans (T/F)
True
The process with the least capacity is called a bottleneck (T/F)
True
The rate of demand is an important factor in determining the ROP. (T/F)
True
The routing specifies each operation to be performed to make the part and which work center will perform the operation (T/F)
True
Using the EOQ model, the higher and items carrying costs, the more frequently it will be ordered (T/F)
True
Variability in demand and/or lead time can be compensated for by safety stock. (T/F)
True
When ordering costs are relatively small compared to inventory carrying costs, LFL will yield favorable results (T/F)
True
Priority sequencing rules determine?
Which job to work on at the work center
When finite scheduling through bottleneck resources is complete, the result is
a doable MPS
Which of the following statements is correct about complete enumeration
all possible alternatives are evaluated and compared to pick the best solution
According to TOC, buffers should
be actively managed
The EOQ model is most relevant for which one of the following?
determining fixed order quantities
Consider consecutive processes A-B-C, where process A has a capacity of 20 units per hour, process B has a capacity of 25 units per hour, and process C has a capacity of 30 units per hour. Where would an operations manager, with some understanding of TOC, want any buffer inventory?
in front of process A
Which one of the following is not generally a determinant of the reorder point
item purchase cost
Using the Theory of Constraints scheduling logic in simulation mode can help
negotiate achievable delivery dates and meet customer service goals.
One way of dealing with the shop floor complexity is by
priority sequencing rules
In TOC, which of following is represented by "rope"
pull scheduling at the non-bottleneck work centers
TOC scheduling combines data in which of the following pairs?
the BOM file with data in the routing file
Which one of the following descriptions best defines customer service level
the desired probability of not running out of stock during the lead time
