OM Final

What is​ MAPICS? A. an inventory reduction system B. an ERP system C. a scheduling system D. an MRP system

D

Extra units that are held in inventory to reduce stockouts are called A. safety stock. Your answer is correct. B. reorder point. C. demand variance. D. ​just-in-time inventory

A

Which of the following is true about the relationship between the process capability ratio ​(Cp​) and the process capability index ​(Cpk​)? A. Cpk will always be less than or equal to Cp Your answer is correct. B. Cpk will always be equal to Cp C. Cpk will always be greater than or equal to Cp D. There is no relationship

A

ABC analysis divides an​ organization's on-hand inventory into three classes based upon A. the number of units on hand. B. annual dollar volume. C. annual demand. D. unit price.

B

Inventory control models assume that demand for an item is A. identical to the demand for other items. B. either independent of or dependent on the demand for other items. C. always dependent on the demand for other items. D. always independent on the demand for other items.

B

What is a dependent demand technique that uses a​ bill-of-material, inventory, expected​ receipts, and a master production schedule to determine material​ requirements? A. Material requirements method​ (MRM) B. Material requirements planning​ (MRP) Your answer is correct. C. Periodic order planning​ (POP) D. Economic order method​ (EOM)

B

Which of the following is NOT a function of​ inventory? A. To provide selection of goods for anticipated customer demand B. To increase total invested capital C. To minimize disruptions in the production process D. To leverage discounts for buying in bulk

B

Which of the following is an advantage of​ ERP? A. It is very inexpensive to purchase. B. It creates commonality of databases. Your answer is correct. C. It is simple enough that companies have an easy time adjusting to it. D. Data fields do not have to be defined identically across the entire enterprise.

B

Which of the following statements is NOT true about the process capability​ ratio? A. The process capability ratio is a ratio of the specification to the process variation. B. A capable process has a process capability ratio less than one. Your answer is correct. C. The process capability ratio is a ratio for determining whether a process meets design specifications. D. The process capability ratio is computed as the difference of the upper and lower specification limits divided by six standard deviations.

B

Which of the following types of inventory describes inventory that has been purchased but not​ processed? A. ​work-in-process inventory B. raw material inventory Your answer is correct. C. ​maintenance/repair/operating supply inventory D. ​finished-goods inventory

B

Which type of control chart should be used when it is possible to have more than one mistake per​ item? A. R​-chart B. c​-chart C. x​-bar chart D. p​-chart

B

A​ firm's probability of a stockout for a popular item is​ 2%. Given this​ information, what is its service level for this popular​ item? A. ​4% B. ​96% C. ​98% D. ​2%

C

Of the items listed​ below, which one does not fulfill the description of the Master Production​ Schedule? A. component lead times B. bill of materials C. planned order reports D. existing inventory data

C

Policies based on ABC analysis might include investing A. extra care in forecasting for C items. B. more in inventory security for C items. C. more in supplier development for A items. Your answer is correct. D. the most time and effort verifying the accuracy of records for B items.

C

The difference between a gross material requirements plan and a net requirements plan is that A. the gross MRP includes consideration of the inventory on​ hand, whereas the net requirements plan does not. B. the gross MRP does not take taxes into​ account, whereas the net requirements plan includes the tax considerations. C. the net requirements plan includes consideration of the inventory on​ hand, whereas the gross MRP does not. Your answer is correct. D. the gross MRP may not be​ computerized, but the net requirements plan must be computerized.

C

The objective of a statistical process control​ (SPC) system is to A. provide a statistical signal when natural causes of variation are present. B. eliminate natural variations. C. provide a statistical signal when assignable causes of variation are present. Your answer is correct. D. assess customer expectations.

C

What is a list of quantities of​ components, ingredients, and materials required to make a​ product? A. engineering change notice B. master production schedule C. ​bill-of-material D. purchase order

C

Which of the following statements is NOT true about​ MRP? A. MRP has evolved as the basis for Enterprise Resource Planning. B. MRP provides a clean structure for dependent demand. C. MRP is an independent demand technique used in a production environment. Your answer is correct. D. MRP uses a​ bill-of-material, inventory, expected​ receipts, and a master production schedule to determine material requirements.

C

Cycle counting A. increases annual inventory adjustments. B. involves shutting down production once per year to perform the annual inventory count. C. cannot be performed in an independent demand situation. D. is a process by which inventory records are verified.

D

If the process mean is closer to the LSL than the​ USL, and the process has a process capability index less than​ 1, then which of the following would potentially help the process become​ capable? A. Decrease the mean B. Increase the variability of the process C. The process is already capable D. Increase the mean

D

Material requirements planning II​ (MRP II) generally substitutes out requirements for A. reuse. B. return. C. recycle. D. resource.

D

Process capability A. exists only in​ theory; it cannot be measured. B. is assured when the process is statistically in control. C. exists when CPK is less than 1.0. D. means that the natural variation of the process must be small enough to produce products that meet the standard.

D

The objective of inventory management is to A. take advantage of quantity discounts. B. decouple various parts of the production process. C. provide a selection of goods for anticipated customer demand. D. strike a balance between inventory investment and customer service.

D

The two popular measures for quantitatively determining if a process is capable are A. upper specification and lower specification. B. process mean and standard deviation of the process population. C. process mean and range. D. process capability ratio and process capability index.

D

What is an information system for identifying and planning the​ enterprise-wide resources needed to​ take, make,​ ship, and account for customer​ orders? A. EIS B. SCM C. MRP D. ERP

D

What is a​ time-phased stock-replenishment plan for all levels of the supply​ chain? A. MRP B. MRP II C. BOM D. DRP

D

What is required for an MRP system to​ work? A. A small bill of material B. A high number of purchase orders outstanding C. Long lead times D. Accurate inventory records

D

What is the reasoning behind setting the upper and lower control limits plus or minus±3sigma Subscript x overbarσx from the​ mean? A. The limits of the Z table are set at plus or minus±3sigma Subscript x overbarσx B. We know that​ 99.73% of assignable variation is contained within plus or minus±3sigma Subscript x overbarσx​, and thus any data point outside of the limits is likely due to natural variation C. ​95.45% of the​ time, the sample averages will fall within plus or minus±3sigma Subscript x overbarσx if the process has only natural variation D. We know that​ 99.73% of natural variation is contained within plus or minus±3sigma Subscript x overbarσx​, and thus any data point outside of the limits is likely due to assignable variation

D

What is the​ lot-sizing technique that generates exactly what was required to meet the​ plan? A. periodic order quantity B. economic order quantity C. ​Wagner-Whitin D. ​lot-for-lot

D

Which of the following does NOT belong to holding​ costs? A. ​pilferage, scrap, and obsolescence B. insurance on inventory C. storage costs D. order processing

D

Which of the following measures the proportion of variation ​(3sigmaσ​) between the center of the process and the nearest specification​ limit? A. process range B. standard deviation of the process population C. process capability ratio D. process capability index

D

Which of the following statements is NOT true regarding​ ERP? A. ERP allows companies share a common database and business practices throughout the enterprise. B. ERP usually provides financial and human resource management information. C. The objective of an ERP system is to coordinate a​ firm's whole business. D. ERP promises​ slow, but​ accurate, information.

D

Which of the following statements is​ true? A. MRP software programs are popular because of the ease of manual approaches. Your answer is not correct. B. Distortion can be minimized when safety stock is held at each​ workstation, rather than at the finished goods or raw material levels. C. Gross material requirements adjusts for inventory on hand. D. A net requirements plan adjusts for​ on-hand inventory.

D

Which of the following would NOT be a concerning pattern on a control​ chart? A. One point above the upper control limit B. Two points very near the lower control limit C. Five consecutive points above the central line. D. All of the above are concerning patterns on a control chart

D