HW 1

___________________ refers to the ability of an organization to sell products in a market.

Business competitiveness

Six Sigma is a quality management approach that seeks to identify and remove the causes of problems in the operations process, achieving virtually defect-free production. Which of the following will directly contribute to six sigma quality management process?

Continuous improvement of processes Reduce variance in final output Strictly conforming to standards

Slack variables are only associated with maximization problems.

False

The break-even point is the volume that the profit is positive (greater than zero).

False

The Pinewood Furniture Company produces chairs and tables from two resources: labor and wood. The company has 120 hours of labor and 100 board-ft. of wood available each day. Demand for table is limited to 8 per day. Each chair requires 3 hours of labor and 4 board-ft. of wood, whereas a table requires 20 hours of labor and 9 board-ft. of wood. The profit derived from each chair is $100 and from each table is $500. The company wants to determine the number of chairs and tables to produce each day in order to maximize profit. The correct linear programming model formulation of this problem is:

Max Z = 100x1 + 500x2 Subject to: 3x1 + 20x2 ≤ 120 4x1 + 9x2 ≤ 100 x2 ≤ 8 x1, x2 ≥ 0

Cadbury's chocolate operations in Tasmania does produce greenhouse emissions, but is taking steps to reduce those emissions. This is an example of:

Socially responsible and ethical management

Promoting a sense of urgency within the organization can help:

competing on speed of delivery

If by processing the same amount of inputs used in the past, a company is now capable to produce a(n) ________ amount of outputs, it means that an improvement of productivity was achieved.

greater

When building a chair, a carpenter uses 2 pounds of wood and 3 ounces of glue. If the Carpenter has 3 pounds of wood and 6 ounces of glue, how many chairs will he/she be able to build?

one chair

A company can compete on cost by

producing standardized products for larger markets

Australian road freight company Linfox uses aerodynamic trucks and trailers to reduce fuel consumption. This is a case of generating higher

productivity

Optimizing variance in final output can augment

quality

Strictly conforming to design specifications enables

quality competitiveness.

Fixed cost includes:

staff and management salaries