OPER 3100 Exam 2

"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

A manufacturing cell groups identical machines together to work on products having similar shapes and processing requirements.

False

A project layout is similar to the basic production layout format of the workcenter.

False

A service system with a high degree of customer contact is less difficult to control than a low degree of customer contact service system.

False

Assembly lines are a special case of a project layout.

False

Continual review and updating in light of new data is a forecasting technique called second-guessing.

False

Fixed-order-quantity inventory models are "time triggered."

False

In inventory models, high holding costs tend to favor high inventory levels.

False

In the weighted moving average forecasting model, the weights must add up to one times the number of data points.

False

Multiple regression analysis uses several regression models to generate a forecast.

False

Shortage costs are precise and easy to measure.

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

The efficiency of an assembly line is found by a ratio of the sum of all task times divided by the cycle time.

False

The equation for exponential smoothing states that the new forecast is equal to the old forecast plus the error of the old forecast.

False

The fixed-order-quantity inventory model favors less expensive items because average inventory is lower.

False

The computation of a firm's inventory position is found by taking the inventory on hand and adding it to the on-order inventory, and then subtracting backordered inventory.

True

The first step in balancing an assembly line is to specify the precedence relationships among tasks to be performed on the line.

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 service business is an organization whose primary business requires interaction with customers to produce the service.

True

A tracking signal (TS) can be calculated using the arithmetic sum of forecast deviations divided by the MAD.

True

A work center is similar to the basic production layout format of job-shop

True

An explicit service is readily observable by the senses.

True

An implicit service implies psychological benefits that the customer may sense only vaguely.

True

An important aspect of service products is that they cannot be inventoried.

True

Because the factors governing demand for products are very complex, all forecasts of demand contain error.

True

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

In designing a production layout a flexible line layout might have the shape of a "U".

True

In inventory models, high holding costs tend to favor low inventory levels and frequent replenishment.

True

Inventory is defined as the stock of any item or resource used in an organization.

True

MAD statistics can be used to generate tracking signals.

True

One characteristic of a well-designed service system is that it is cost-effective.

True

Poka-yoke is roughly translated from Japanese as "avoid mistakes."

True

Poka-yokes are procedures that block the inevitable mistake from becoming a service defect

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