Exam 2 Part 2
A workcenter layout is similar to the basic production layout format of job-shop.
True
If annual demand is 35,000 units, the ordering cost is $50 per order, and the holding cost is $0.65 per unit per year, which of the following is the optimal order quantity using the fixed-order-quantity model?
2,320
Which of the following values for z should we use in as a safety stock calculation if we want a service probability of 98 percent?
2.05
Assuming no safety stock, what is the reorder point (R) given an average daily demand of 78 units and a lead time of 3 days?
234
Using the fixed-order-quantity model, which of the following is the total ordering cost of inventory given an annual demand of 36,000 units, a cost per order of $80, and a holding cost per unit per year of $4?
2400
A company has actual unit demand for three consecutive years of 124, 126, and 135. The respective forecasts for the same three years are 120, 120, and 130. Which of the following is the resulting MAD value that can be computed from these data?
5
You are using an exponential smoothing model for forecasting. The running sum of the forecast error statistics (RSFE) are calculated each time a forecast is generated. You find the last RSFE to be 34. Originally, the forecasting model used was selected because of its relatively low MAD of 0.4. To determine when it is time to re-evaluate the usefulness of the exponential smoothing model, you compute tracking signals. Which of the following is the resulting tracking signal?
85
As a consultant, you have been asked to generate a unit demand forecast for a product for year 2014 using exponential smoothing. The actual demand in year 2013 was 750. The forecast demand in year 2013 was 960. Using these data and a smoothing constant alpha of 0.3, which of the following is the resulting year 2014 forecast value?
897
Using the assembly-line balancing procedure, which of the following is the required cycle time in minutes per unit if the daily production time is 480 minutes and the required daily output is 50 units?
9.6
Which of the following is a fixed-order-quantity inventory model?
Economic Order Quantity model
"Combine the pain" is an application of behavioral science to service encounters. It means that, when something is going wrong for a group of customers, it is better to totally enrage one or a very few customers rather than slightly annoying a large number of customers.
False
RSFE in forecasting stands for "reliable safety function error."
False
The customer is (or should be) the second most important focal point of all decisions in a service organization.
False
The efficiency of an assembly line is found by a ratio of the sum of all task times divided by the cycle time.
False
Which of the following is a perpetual system for inventory management?
Fixed order quantity
The efficiency of an assembly line is found by a ratio of the sum of all task times divided by the cycle time
Process Layout
Which of the following is a characteristic that can be used to guide the design of service systems
Services cannot be inventoried
When developing inventory cost models, which of the following is not included as a costs to place an order
Taxes
Using the ABC classification system for inventory, which of the following is a true statement?
The A items are of high dollar value.
In a forecasting model using simple moving average, the shorter the time span used for calculating the moving average, the closer the average follows volatile trends.
True
In assembly-line balancing, the theoretical minimum number of workstations is found by a ratio of the sum of all task times divided by the cycle time.
True
Poka-yokes are procedures that block the inevitable mistake from becoming a service defect.
True
Services often take the form of repeated encounters involving face-to-face interactions.
True
The value of the smoothing constant alpha in an exponential smoothing model is between 0 and 1.
True
When recovering from a defective service encounter, a botched task calls for material compensation.
True
A company wants to determine its reorder point (R). Demand is variable and the company wants to build a safety stock into R. If the average daily demand is 12, the lead time is 5 days, the desired z value is 1.96, and the standard deviation of usage during lead time is 3, which of the following is the desired value ofR?
about 66
Which of the following is one of the categories of manufacturing inventory?
reduced cost
In the design of retail service layouts, the term "ambient conditions" does not refer to which of the following?
staffing
MAD statistics can be used to generate tracking signals.
true
Which of the following is one of the categories of manufacturing inventory?
work-in-process