Operations Review Notes (chapters 6-9) Final Version
How many common service configurations are shown in the service-system design matrix?
6
True or false: The output of a service process is intangible.
True Reason: Services do not have physical dimensions that can be weighed or measured.
Providing customers with a free show when they are waiting in line for an amusement park ride is an example of which technique to manage queues?
Trying to divert the customer's attention when waiting.
The production rate is measured in units of time, such as per _____ or per _____.
hour day
In production planning, a _____ strategy is executed by maintaining a stable workforce and producing output at a constant rate.
level
Yield management allocates capacity according to Multiple select question. type of customer. type of capacity. payment method. time.
type of customer. type of capacity. time.
The most common arrival distribution observed in service systems is the ________ arrival distribution
variable
Which layout moves product from workstation to workstation at a controlled rate? Assembly line Retail layout Continuous process U-shaped layout
Assembly line
Which of the following type of work flow is appropriate when production volume is high? Assembly line Manufacturing cell Workcenter Project layout
Assembly line
Which of the following are sources of demand for products in a material requirements planning system?
Customer orders from sales personnel. Inter-department transactions.
Which is the correct equation used to calculate economic order quantity (EOQ)? EOQ= √(2HS/D) EOQ= √(2DS/H) EOQ= √(2DH/S) EOQ= √(DS/H)
EOQ= √(2DS/H)
Setting planned orders to match the net requirements exactly is what type of lot sizing technique? EOQ Least total costs Least unit costs Lot-for-lot
Lot-for-lot
Which of the following describes the step where parts are procured from one or more suppliers? Sourcing Delivering Decoupling Making
Sourcing
Place the steps associated with the production process into order (from first to last). Sourcing Making Delivering
Sourcing Making Delivering
True or false: The addition or subtraction of a member of the population in a finite population affects the system probabilities.
True
True or false: The cost trade-off decision in the management of queues is often straightforward.
True
True or false: The exponential distribution can be derived from the Poisson distribution.
True
True or false: The longest required task time often defines the shortest possible workstation cycle time for production.
True
True or false: Yield management is most effective when products can be sold in advance.
True
Unlike designing a product to sell, services
cannot be patented.
subcontracting production is similar to a ______ strategy, but differs in that in doesn't use company employees to meet customer demand.
chase
When the time between successive arrivals is always exactly the same, the arrival distribution is described as
constant
Lead time can vary based on ______. Multiple select question. the total inventory costs. customization of the product being produced. location of the manufacturing facility. the amount of customer satisfaction.
customization of the product being produced. location of the manufacturing facility.
Service systems with a ___ degree of customer contact are more challenging to control.
higher
Services often measure cycles in _______ rather than _______ used in manufacturing. months; hours days; years months; years hours; months
hours; months
The time required to respond to a customer order is known as response period. lead time. response time. order time.
lead time.
Aggregate plans vary from company to company based on size and need, formal reports generally contain
planning premises that lead to planning objectives.
Procedures that prevent mistakes from becoming service defects are known as
poka-yokes
Procedures that prevent mistakes from becoming service defects are known as mistake buffers. poka-yokes. service guarantees. problem solvers.
poka-yokes.
A _____-_____ aggregate plan may be further modified by mathematical methods to develop a final and/or lower-cost plan.
rough cut
A bundle of goods and services provided by a firm is called a
service package.
Which type of time fence allows for changes to a specific product so long as parts are available
slushy
The group of potential customers for a queuing system is known as the _______________ population.
source
an external factor that influences a production plan is
subcontractor capacity
Is the classification of poka-yokes, the "Three Ts" refer to
task, treatment, tangible
True or false: Manufacturing processes are used to make tangible goods.
True
The group of potential customers for a queuing system is known as
The source population
True or false: The Poisson distribution is a discrete distribution.
True
Which relevant costs are often the most difficult to measure?
backordering
what is an operations and supply chain task performed in an intermediate-term plan?
1. forecasting 2. demand management 3. sales and operations planning
Which of the following equations is correct for calculating the required workstation cycle time? (Required output per day)/(Production time per day) (Production time per day)/(Required output per day) (Sum of task times)/(Required output per day) (Production time per day)/(Sum of task times)
(Production time per day)/(Required output per day)
Which of the following are parts of the material requirements planning system?
- master production schedule -bill of materials -inventory records
When structuring the service encounter, the service-system design matrix uses which of the following to determine the degree of customer service contact?
-Permeable system -Buffered Core -Reactive system
Which of the following are characteristics of a service process?
-Service companies must expand rapidly to prevent copying by competitors. -A service process involves some interaction with the customer. -The output is intangible.
Which of the following are main factors to consider with waiting lines regarding line structure and service rate?
-The line length -number of lines -the queue discipline
Which of the following are characteristics of a service process?
-The output is intangible. -A service process involves some interaction with the customer. -Service companies must expand rapidly to prevent copying by competitors.
Which of the following are major components of a queuing system?
-The servicing system -The source population -The condition of customers exiting the system
Long-range planning activities include
-designing the logistics activities that deliver products to the customer. -designing the manufacturing and service processes that produce the products of the firm.
Waiting lines are a factor that can be controlled by
-managing arrival rates. -managing service rates.
Which of the following are strategic uses of the service-system matrix?
-service delivery options -competitive advantage -integrating operations and marketing
short-range planning covers a period from
1 day to 6 months
sales and operations planning specifically helps business with the following:
1. customer service and deliver lead times 2. general management 3. inventory management' 4. production rate stabilization
long-range planning activities are:
1. designing the logistics activities that deliver products to the customer. 2. designing the manufacturing and service processes that produce the products of the firm.
long-range planning activities are
1. designing the manufacturing and service processes that produce the products of the firm. 2. designing the logistics activities that deliver products to the customer.
sales and operations planning typically requires an integrated effort and cooperation form the following organizations
1. finance 2. production development 3. operations 4. sales 5. distribution and logistics
An assembly line must produce 1,000 units in an 8 hour day. Assuming the line operates continuously, what is the required workstation cycle time? 57.6 seconds 28.8 seconds 35.5 seconds 60.0 seconds
28.8 seconds
The time horizon for an aggregate operations plan ranges from _____ to _____ months.
3 18
For an assembly-line system with 6 workstations, the cycle time is 27 seconds and the sum of task times is 120 seconds. What is the efficiency of this balance? 81.1% 74.1% 77.2% 71.0%
74.1%
If a company has more units in the master production schedule than firm customer orders, the residual is called? Liquid inventory Available to promise Ready to ship Customer overstock
Available to promise
Yield management is the process of allocating which of the following to maximize profit? Market research Inventory Raw materials Capacity
Capacity
Which of the following statements about inventory measures is TRUE? Multiple select question. Days-of-supply measures how long (on average) a firm's inventory can support sales. Total average inventory is the best measure of inventory. Inventory turn and days-of-supply are unrelated measures. Inventory turn compares cost of goods sold to average inventory.
Days-of-supply measures how long (on average) a firm's inventory can support sales. Inventory turn compares cost of goods sold to average inventory.
Which of the following is not a step required to make a good? Making Decoupling Delivering Sourcing
Decoupling
Which of the following examples is an uncontrollable arrival rate for a service? Off-season rates offered by an airline A barber charging more for Saturday service Department stores sale in the off-season Emergency medical demand at an ER
Emergency medical demand at an ER
In a service system, arrivals can be drawn from what types of populations?
Finite Infinite
Little's law relates inventory, throughput rate, and flow time as Inventory = Throughput rate x Flow time Inventory x Throughput rate = Flow time Flow time = Inventory + Throughput rate Inventory = Throughput rate + Flow time
Inventory = Throughput rate x Flow time
The average number in the system (including time to be served) is calculated using which of the following Model 3, a multichannel system, equations? Wq= Lq/μ Ls=Lq + λ/μ Ls=Lq/μ Wq=λ/μ
Ls=Lq + λ/μ
Which statement is true regarding differences between service and manufacturing organizations? Manufacturing organizations must plan and hold inventory. Service organizations produce tangible goods. Service organizations have higher inventory costs.
Manufacturing organizations must plan and hold inventory.
If an organization is using overtime, hiring/firing employees, and subcontracting to modify production plans, it is likely deploying which type of production strategy? Level Plus Stable workforce-variable work hours Chase Mixed
Mixed
For a queuing system with a single channel, a single phase, and with an exponential service time distribution, which waiting line model is appropriate?
Model 1 - Simple system
When safety stock is needed, what is reduced by the safety stock? Projected available balance Forecast for last period On-hand balance Demand from sales
On-hand balance
When the arrival process is random and one needs to find the number of arrivals n during some time period T, what distribution should be used? Exponential Uniform Logarithmic Poisson
Poisson
Rank the production process layouts from lowest- to highest-volume (top to bottom). Manufacturing cell Project Workcenter Assembly line
Project Workcenter Manufacturing cell Assembly line
In which production system does the product remain in one place while resources (such as workers or equipment) travel to the product when needed? Workcenter layout Project layout Assembly line Cellular layout
Project layout
_____________ techniques are typically used to manage production processes that follow a project layout structure. Made-to-stock Lean manufacturing Project management Bulk inventory
Project management
An external factor that influences a production plan is?
Subcontractor capacity
Which of the following is not a main factor to consider with waiting lines regarding line structure and service rate? The number of lines The queue discipline The distribution utilized The line length
The distribution utilized
The next level in the planning process down from an aggregate plan is called?
The master production schedule
The next level in the planning process down from an aggregate plan is called? Supply coordination Materials requirements planning Demand forecasting The master production schedule
The master production schedule
POKA-YOKE
This is done to make a system mistake-proof
are a company's attempt to provide a controlled window of opportunity to make changes to the master production schedule.
Time fences
A process that places all identical parts at the same level in the bills-of-materials simplifies computations. This process is known as low level coding.
True
Hiring temporary employees is a way to avoid the costs of training and laying off personnel. True False
True
Providing customers with a free show when they are waiting in line for an amusement park ride is an example of which technique to manage queues? Trying to divert the customer's attention when waiting. Informing the customers of what to expect. Encouraging customers to come back during slack periods. Segmenting the customers.
Trying to divert the customer's attention when waiting.
A _______________ line layout can increase operator access and improve workstation time. line layout can increase operator access and improve workstation time.
U-shaped
When classifying services they can be grouped by?
Who the customer is and the service being provided.
When classifying services they can be grouped by? Multiple choice question. Who the customer is and the service being provided. Location of service facility and the service being provided. Who the customer is and the service delivery options. Who the customer is and the location of the service facility.
Who the customer is and the service being provided.
Outside of determining parts, components, and materials, MRP provides independent demand for products being produced. a schedule for when each of these should be produced or ordered. a forecast for the next 6 months. the total plan for all capital investments needed.
a schedule for when each of these should be produced or ordered.
One key to a successful budgeting process is a(n) _____ aggregate plan.
accurate
A flexible line layout may improve assembly-line balance by decreasing operator interactions. placing workstations in a straight line layout. increasing task times. allowing work sharing among employees.
allowing work sharing among employees.
A firm that works with the customer to design a product but has less control over materials and steps in manufacturing until the product has been designed is known as a(n) _______________-to-order. A firm that works with the customer to design a product but has less control over materials and steps in manufacturing until the product has been designed is known as a(n) -to-order.
engineer
The _______________ distribution is used to approximate random service times.
exponential
When the customer pool is large enough that adding or removing customers who receive service does not affect system probabilities, the population is defined as
infinite
in production planning, a _____ strategy is executed by maintaining a stable workforce and producing output at a constant rate.
level
Waiting lines are a factor that can be controlled by
managing arrival rates. managing service rates.
two or more used in combination constitute a
mixed strategy
In an assemble-to-order system, the total number of unique combinations possible is calculated by multiplying the number of options for each choice together. determining the number of options offered for the most popular item. adding the number of choices together. adding the number of options for each choice together.
multiplying the number of options for each choice together.
On an assembly-line, the order in which tasks must be performed is called the __________. successor relationship precedence relationship workstation order path
precedence relationship
The aggregate operations plan _____ the master schedule.
precedes
on the supply side of the business, aggregate planning is done by:
product families
When just one of these variables is used to absorb demand fluctuations, it is termed a
pure strategy
Term used to refer to the process a firm uses to balance supply and demand.
sales and operations planning
a common approach to developing an aggregation operations plan is from:
the corporate annual plan
A common approach to developing an aggregate operations plan is from the corporate annual plan. inventory on hand. the product development plan. financial statements.
the corporate annual plan.
sales and operation planning specifically helps businesses with the following
1. general management 2. inventory management 3. production rate stabilization 4. customer service and delivery lead times
which operations and supply processes are most greatly impacted by the sales and operations pracess
1. logistics 2. manufacturing 3. services
The efficiency of an assembly-line balance must always be less than or equal to _______________ %. The efficiency of an assembly-line balance must always be less than or equal to %.
100
If expected demand during the next four quarters is 150, 125, 100, and 75 thousand units, and each worker can produce 1,000 units per quarter, how many workers should be used if a level strategy is being employed?
113
A computer manufacturer offers 3 types of hard disk drives, 2 types of monitors, 4 types of batteries, and 5 choices of operating systems. How many total combinations are possible using these choices? 60 90 120 150
120
Last year a firm had an average inventory of $1,500,000 and the cost of goods sold was $3,750,000. What was the days-of-supply last year? 146 124 300 155
146
Given the data from question 7, how many workers would be needed for a chase strategy?
150, 125, 100, 75
There are _______________ dimensions depicted on a product-process matrix. dimensions depicted on a product-process matrix.
2
Last year a firm had an average inventory of $1,500,000 and the cost of goods sold was $3,750,000. What was the inventory turn last year? 1.0 3.5 2.0 2.5
2.5
the time horizon for an aggregate operations plan ranges from
3 to 18 months
If the sum of all task times is 100 seconds and the required cycle time is 21 seconds, what is the theoretical minimum number of workstations? 5 4 4.76 5.23
5
How many common service configurations are shown in the service-system design matrix? Multiple choice question.
6
Short-range planning covers a period from one day to _____ months.
6
How many common service configurations are shown in the service-system design matrix? 7 8 6 5
6 Reason: There are six service configurations shown: mail contact, internet and on site technology, phone contact, face-to-face tight specs, face-to-face loose specs, and face-to-face total customization.
7.5 turns = (1,500 x 50)/10,000
A finished goods inventory on average contains 10,000 units. Demand averages 1,500 units per week. Given that the process runs 50 weeks a year, what is the expected inventory turn for the inven- tory? Assume that each item held in inventory is valued at about the same amount.
Engineer-to-Order
A firm that designs and builds products from scratch according to customer specifications would have this type of production environment.
Make-to-Order
A firm that makes predesigned products directly to fill customer orders has this type of production environment.
SERVICE-SYSTEM DESIGN MATRIX
A framework that relates to the customer service system encounter
If a company has an MRP program that can reflect the exact status of each item in real time, this program is called? A peg record An inventory transaction file A net change MRP system A bill-of-material system
A net change MRP system
Customer Order Decoupling Point
A point where inventory is positioned to allow the production process to operate independently of the customer order delivery process.
Select all that apply Which of the following are characteristics of a service process? Multiple select question. A service process involves some interaction with the customer. Service companies must expand rapidly to prevent copying by competitors. The output is intangible. The output can be stored for future use.
A service process involves some interaction with the customer. Service companies must expand rapidly to prevent copying by competitors. The output is intangible.
Which of the following statements best characterizes an MRP system? A system-driven logic that allows a company to tie the production functions together from a material planning and control view. An independent demand system that helps a company to prioritize customer orders based on profit potential. A system that specifies the best transportation mode for inbound materials. A system-driven approach to determine which suppliers are likely meet delivery due dates.
A system-driven logic that allows a company to tie the production functions together from a material planning and control view.
Which of the following is NOT true about a workcenter layout? In a workcenter layout, machines with similar functions are grouped together. A workcenter layout is also called a job shop. A workcenter layout can produce a wide variety of products. A workcenter layout is commonly used for systems with high production volumes.
A workcenter layout is commonly used for systems with high production volumes.
From the highest level planning at the top to the lowest level planning at the bottom, rank the following. Aggregate planning Master production schedule Material requirements planning
Aggregate planning Master production schedule Material requirements planning
Which of the following is likely to be a rate fence at a hotel? Room with a mountain view Breakfast and dinner included Unlimited use of the internet All the above
All the above
The cut-and-try approach to aggregate planning may involve which of the following? Multiple select question. Analyzing a number of production planning alternatives. Selecting the best alternative. Use of spreadsheets and charts. Choosing the first feasible plan identified.
Analyzing a number of production planning alternatives. Selecting the best alternative. Use of spreadsheets and charts.
What term describes the expected number of customers that arrive each period?
Arrival rate
What term describes the expected number of customers that arrive each period? Survival rate Arrival rate Service rate Exit rate
Arrival rate
Which of the following would be considered poka-yokes?
Arrows that show the direction of traffic in a parking garage. A color coded template to assist the worker in assembly. Plugs that have 3 distinctively different prongs to prevent the operator from connecting a machine incorrectly.
Which common layout format refers to the progressive build of a product? Assembly line Manufacturing cell Project layout Workcenter
Assembly line
Which the following describes the layout for items produced through a fixed sequence of workstations? Manufacturing cell Assembly line Project Workcenter
Assembly line
Which relevant costs are often the most difficult to measure? Backordering costs Basic production costs Inventory holding costs Production rate change costs
Backordering costs
What term describes the following scenario: a guest at an amusement park sees that the wait for the new roller coaster is 1 hour and decides to go to another ride. Childish Impatient Balking Reneging
Balking
________________ arrivals never join the waiting line, ________________ arrivals join the waiting line, but leave before entering service.
Balking Reneging
Which of the following is/are issues a master scheduler must consider?
Be involved with customer order promising. Trade-off manufacturing, engineering and marketing conflicts. Never lose sight of the aggregate plan.
Which of the following are benefits of the sales and operations planning process? Multiple select question. Better customer service Stabilized production rates Higher quality Lower inventory
Better customer service Stabilized production rates Lower inventory
Which of the following products would use a project layout? Bridge Laptop Automobile Mass produced toy
Bridge
Which of the following is not an example of a limited line capacity? Parking lot Bridge toll booth Loading dock Gas station
Bridge toll booth
In the service-system matrix, which of the following has the lowest sales opportunity, but offers the highest level of efficiency?
Buffered core
In the service-system matrix, which of the following has the lowest sales opportunity, but offers the highest level of efficiency? Permeable system Reactive system Buffered core
Buffered core
Which if the following actions would be possible in a level strategy plan?
Building inventory during slow periods
Which if the following actions would be possible in a level strategy plan? Having workers take time off to reduce production Hiring and laying off employees Asking workers to work overtime Building inventory during slow periods
Building inventory during slow periods
Match the production planning strategies with their definition. Instructions Chase strategy Level strategy Stable workforce - variable work schedule Production output is varied by changing work schedules to include overtime (when more production is needed) and idle time (when less production is needed) Production rate is matched to order rate by hiring and firing employees Maintain a stable workforce and work schedule while using inventory to meet variation in demand
Chase strategy: Production rate is matched to order rate by hiring and firing employees Level strategy: Maintain a stable workforce and work schedule while using inventory to meet variation in demand Stable workforce - variable work schedule: Production output is varied by changing work schedules to include overtime (when more production is needed) and idle time (when less production is needed)
With which of the following goods would a continuous process be used? Computers Houses Chemicals Cars
Chemicals
Which of the following could be considered examples of poka-yokes?
Color coding parts to prevent assembly errors. Designing connectors with a shape that only allows joining in the correct configuration.
WAITING TIME IN THE FIRST SYSTEM IS TWO TIMES THE SECOND
Consider two queuing systems identical except for the service time distribution. In the first system, the service time is random and distributed according to a Poisson distribution. The service time is constant in the second system. How would the waiting time differ in the two systems?
What type of arrivals occur when customers arrive with exactly the same time between successive arrivals? Constant Random Variable Finite
Constant
Which process layout is best used for manufacturing liquids? Project Continuous Manufacturing Cell Assembly line
Continuous
From an operational perspective, yield management is most effective when
Demand can be segmented by customer. Fixed costs are high and variable costs are low. Inventory is perishable. Product can be sold in advance. Demand is highly variable.
Which of the following could be considered examples of poka-yokes? Multiple select question. Designing connectors with a shape that only allows joining in the correct configuration. Designing a product to use a less-expensive component. Color coding parts to prevent assembly errors. Using advertising to convince customers that a firm is trustworthy.
Designing connectors with a shape that only allows joining in the correct configuration. Color coding parts to prevent assembly errors.
Which of the following is NOT a step in the process of developing a manufacturing cell? Determine which machines perform the same process. Physically regroup machines into cells. Group parts into families that follow a common sequence of steps. Identify dominant flow patterns for each family.
Determine which machines perform the same process.
Which of the following is not a strategic use of the service-system matrix?
Determining worker skills
A high degree of technology and total face-to-face customization requires workers to use more
Diagnostic Skills
Which of the following is not a way to manage queues?
Don't give customers information about what to expect.
Which of the following is not a way to manage queues? Don't give customers information about what to expect. Train your servers to be friendly. Try to divert customers' attention when waiting. Segment the customers.
Don't give customers information about what to expect.
A(n) _____ _____ _____ system is a computer system that integrates application programs from the functional areas of a firm.
E R P
In which of the following industry types would MRP provide high benefits? Multiple select question. Engineer-to-order Make-to-order Assemble-to-stock Assemble-to-order
Engineer-to-order Assemble-to-stock Assemble-to-order
When product shortages occur, which of the following costs may be incurred?
Expediting costs Loss of goodwill Loss of sales revenue
When customers arrive at a service facility in a purely random fashion, it is expected that interarrival times follow which distribution? Normal Logarithmic Uniform Exponential
Exponential
Which distribution is used to approximate random service times? Exponential Logarithmic Uniform Poisson
Exponential
Which of the following is a possible configuration of a reactive service system?
Face-to-face loose specs
True or false: A large party of 10 at a restaurant is an example of a single arrival size.
False
True or false: Finished goods purchased by individuals external to the organization are considered dependent demand items.
False
True or false: Most waiting line problems that have a series of services can be solved manually as they are simple.
False
True or false: The choice of line format depends only on the volume of customers served.
False
True or false: The cut-and-try approach will always identify the aggregate plan with the lowest overall cost.
False
True or false: The time customers spend waiting in line is not a factor that the firm can control.
False
True or false: The total work at a workstation is equal to the sum of all tasks to complete a product.
False
True or false: There is no difference in analysis for queues with infinite arrivals and ones with finite arrivals.
False
True or false: Yield management is most effective when fixed costs are low and variable costs are high.
False
True or false: Services can be inventoried.
False -Services cannot have a buildup or safety stock of inventory.
True or false: Service systems with a high degree of customer contact are easier to manage and control.
False, The more the customer is involved in the process, the more likelihood for system variability and customer influence.
In a service system, arrivals can be drawn from what types of populations? Multiple select question. Homogeneous Finite Infinite Unknown
Finite Infinite
Arrival patterns are controllable in the following situations except? Fire department Grocery store Department store Bakery
Fire department
70 - 80%
Firms that desire high service levels where customers have short wait times should target server utilization levels at no more than this percent
Which of the following is the most commonly used priority rule? Best customers first Reservations first First come, first served Random service
First come, first served
Which of the following is not a lot sizing technique used in MRP systems? Fixed time costs Economic order quantity Lot-for-lot Least total costs
Fixed time costs
Sales and operations planning specifically helps businesses with the following:
General management control Customer service and delivery lead times Inventory management Production rate stabilization
Sales and operations planning specifically helps businesses with the following: Multiple select question. General management control Customer service and delivery lead times Potential customer sales lead generation Production rate stabilization Inventory management
General management control Customer service and delivery lead times Production rate stabilization Inventory management
Which of the following is/are a part of an MRP record? Multiple select question. Scheduled repairs Raw material receipts Gross requirements Net requirements Planned order receipts
Gross requirements Net requirements Planned order receipts
What are some ways a manager can minimize the impact during long wait periods?
Have a voice recording announce the average wait times when customers call and offer a call back to those who choose not to wait. Allow customers with fewer items to use a special checkout line. Train the servers to be friendly to the customers.
Which if the following actions would be possible in a stable workforce-variable work hours plan? Multiple select question. Hiring and laying off employees Having workers take time off to reduce production. Building inventory during slow periods Asking workers to work overtime.
Having workers take time off to reduce production. Asking workers to work overtime.
A major drawback with lot-for-lot sizing is? Low investment costs High capital investments High setup costs Low setup costs
High setup costs
Which are characteristics of a continuous process line? Multiple select question. Highly automated machinery is used. Product is moved from one workstation to the next workstation in a sequence of events. Shutdowns can be expensive. May operate 24 hours a day.
Highly automated machinery is used. Shutdowns can be expensive. May operate 24 hours a day.
21 units
If a production process makes a unit every two hours and it takes 42 hours for the unit to go through the entire process, then the expected work-in-process is equal to this.
GREATER THAN 10%
In most cases, if a firm increases its service capacity by 10 percent , it would expect waiting times to be reduced by what percent? Assume customer arrival and service times are random.
Some trade-offs associated with using a level strategy for production planning are?
Increased inventory costs. Decreased customer service levels.
Some trade-offs associated with using a level strategy for production planning are? Multiple select question. Increased inventory costs. Variable production rates. Decreased customer service levels. Low employee morale.
Increased inventory costs. Decreased customer service levels.
A bill-of-materials that uses differences in alignment to indicate the order of assembly of components is using which type of structure? Uneven structure Duplicate structure Component structure Indented structure
Indented structure
What two terms are utilized to describe line length? Unlimited and set number Infinite and limited Unlimited and limited Infinite and set number
Infinite and limited
Select all that apply Which of the following are features of a service package? Multiple select question. Pricing options Information Facilitating goods Supporting facility
Information Facilitating goods Supporting facility
Which of the following are features of a service package?
Information Supporting facility Facilitating goods
Which of the following are sources of demand for products in a material requirements planning system? Multiple select question. Inter-department transactions. Customer orders that have been canceled. Customer orders from sales personnel. The master production schedule.
Inter-department transactions. Customer orders from sales personnel.
In a service setting, what general operations-related variable is not available compared to a production setting?
Inventory
Spoilage and obsolescence costs are considered what type of relevant cost? Inventory holding costs Production rate costs Basic production costs Backordering costs
Inventory holding costs
In the service-system design matrix, as the degree of customer contact increases, the production efficiency tends to become
LOWER
the part quantities issued in the planned order receipt and planned order release sections of an MRP schedule.
Least total cost
Maintain a stable workforce working at a constant output rate. Shortages and surpluses are absorbed by fluctuating inventory levels, order backlogs, and lost sales.
Level strategy
The long-term relationship between inventory, throughput, and flow time is mathematically related using _______________'s law. The long-term relationship between inventory, throughput, and flow time is mathematically related using 's law.
Little
Cross-functional teams from which of the following are involved in the sales and operations planning (S&OP) process? Multiple select question. Logistics Marketing Purchasing Product development
Logistics Marketing Product development
When product shortages occur, which of the following costs may be incurred? Multiple select question. Inventory holding costs Loss of sales revenue Expediting costs Loss of goodwill
Loss of sales revenue Expediting costs Loss of goodwill
______________ are the part quantities issued in the planned order receipt and planned order release sections of an MRP schedule. Lot sizes Least total cost Demand numbers Economic order quantity
Lot sizes
Which of the following is true about MRP? Multiple select question. MRP is not used for dependent demand items. MRP is used to determine the number of parts, components, and other materials needed to produce a product. MRP is the highest level of planning in most organizations. MRP is an acronym for Material Requirements Planning.
MRP is used to determine the number of parts, components, and other materials needed to produce a product. MRP is an acronym for Material Requirements Planning.
Which of the follow is not an operations and supply chain task performed in an intermediate-range plan? Forecasting Make vs. buy assessment Sales and operations planning Demand management
Make vs. buy assessment
The issue of balancing the level of finished inventory against the level of service to the customer occurs in which type of firm? Assemble-to-order Make-to-stock Engineer-to-order Make-to-order
Make-to-stock
Which type of firm invests in lean manufacturing programs in order to improve customer service levels for a given inventory investment? Make-to-order Engineer-to-order Make-to-stock Assemble-to-order
Make-to-stock
Which layout format groups machines to work on products that have similar processing requirements? Manufacturing cell Project layout Assembly line Workcenter
Manufacturing cell
Which layout format groups machines to work on products that have similar processing requirements? Project layout Workcenter Assembly line Manufacturing cell
Manufacturing cell
For a queuing system with a single channel, a single phase, and with an exponential service time distribution, which waiting line model is appropriate? Any model is appropriate Model 3 - Multichannel system Model 1 - Simple system Model 2 - Constant service time system
Model 1 - Simple system
For a queuing system with a single channel, a single phase, and with a constant service time distribution, which waiting line model is appropriate?
Model 2 - Constant service time system
For a queuing system with multiple channels, a single phase, and with an exponential service time distribution, which waiting line model is appropriate?
Model 3 - Multichannel system
For a queuing system with multiple channels, a single phase, and with an exponential service time distribution, which waiting line model is appropriate? Model 1 - Simple system Model 3 - Multichannel system Any model is appropriate Model 2 - Constant service time system
Model 3 - Multichannel system
A chase strategy can create what major concern?
Motivational impacts due to fear of being laid off during time of low production.
A chase strategy can create what major concern? Motivational impacts due to fear of being laid off during time of low production. High motivation since employees only have to work when needed. Low production due to economical impacts. The inability to slow down production because you have too many employees.
Motivational impacts due to fear of being laid off during time of low production.
Identify the true statements about assembly-line and continuous process layouts. Multiple select question. In an assembly line, the stations are completely independent of each other. Often, the item being produced in a continuous process is a liquid or chemical that actually flows through the system. In an assembly line, a product goes through a progressive set of steps. In a continuous process, a product moves continuously through the process.
Often, the item being produced in a continuous process is a liquid or chemical that actually flows through the system. In an assembly line, a product goes through a progressive set of steps. In a continuous process, a product moves continuously through the process.
Sales and operations planning typically requires an integrated effort and cooperation from the following: Multiple select question. Operations Accounting Sales Product Development Finance Human Resources Distribution and Logistics
Operations Sales Product Development Finance Distribution and Logistics
Which distribution is obtained by finding the probability of exactly n arrivals during a time period T? Uniform Exponential Logarithmic Poisson
Poisson
The mean of the _______________ distribution is λ and the mean of the _______________ distribution is 1/λ.
Poisson exponential
Cross-functional teams from which of the following are involved in the sales and operations planning (S&OP) process?
Product development Logistics Marketing
Projected balance, the amount of inventory expected at the end of a period, is calculated using which equation? Projected available balance = sum of on-hand inventory + gross requirements - scheduled receipts + planned orders Projected available balance = sum of on-hand inventory + gross requirements - scheduled receipts - planned orders Projected available balance = sum of on-hand inventory + gross requirements + scheduled receipts - planned orders Projected available balance = sum of on-hand inventory - gross requirements + scheduled receipts + planned orders
Projected available balance = sum of on-hand inventory - gross requirements + scheduled receipts + planned orders
In Model 3, a multichannel system, the probability a customer will have to wait in line is represented by what symbol/variable? Ws Ls Wq Pw
Pw
What term describes a priority rule or set of rules for determining the order of service to customers waiting in line? Queue discipline Reneging Balking Number of lines
Queue discipline
Which of the following is not a channel structure in queue structures? Single Mixed Multichannel Queue phased
Queue phased
What is the term that refers to a process where customers wait in line for service?
Queuing system
What is the term that refers to a process where customers wait in line for service? Line management Line analysis Balking Queuing system
Queuing system
Which of the following is not a step in the process to balance an assembly line? Calculate the efficiency of the balance. Randomly assign tasks to workstations. Determine the theoretical number of workstations. Determine the required workstation cycle time.
Randomly assign tasks to workstations.
Select all that apply When structuring the service encounter, the service-system design matrix uses which of the following to determine the degree of customer service contact? Multiple select question. Sustainable system Reactive system Permeable system Buffered Core
Reactive system Permeable system Buffered Core
When structuring the service encounter, the service-system design matrix uses which of the following to determine the degree of customer service contact? Multiple select question. Reactive system Permeable system Buffered Core Sustainable system
Reactive system Permeable system Buffered Core
The first step in the MRP explosion process is? Retrieve the gross requirements for end items from the master schedule. Place part orders for net requirements. Calculate the lead times for all products that have been schedule on the master schedule. Identify the inventory on hand for all parts.
Retrieve the gross requirements for end items from the master schedule.
Which symbol is used to represent the number of servers in Model 3, multichannel system, calculations? S W λ L
S
What process gives senior management a better handle on meeting customer demand over a 3 to 18 month time horizon?
Sales and operations planning
What process gives senior management a better handle on meeting customer demand over a 3 to 18 month time horizon? The marketing plan The income statement Sales and operations planning The production schedule
Sales and operations planning
Which of the following terms describes the number of customers that can be handled during a given time period? Length Arrival rate Service time Service rate
Service rate
DEGREE OF CUSTOMER CONTACT
Service systems can be generally categorized according to this characteristic that relates to the customer
An EOQ lot sizing technique will try to balance the sum of which of the following costs given a fairly constant demand? Multiple select question. Marketing Transportation Setup Holding costs
Setup Holding costs
The size of arrivals can be described in what two terms? Single and Group Patient and Batch Patient and Group Single and Batch
Single and Batch
Which type of time fence allows for changes to a specific product so long as parts are available? Slushy Frozen Scheduled Liquid
Slushy
Which of the following are benefits of the sales and operations planning process?
Stabilized production rates Lower inventory Better customer service
Vary the output by varying the number of hours worked through flexible work schedules or overtime.
Stable workforce—variable work hours
An external factor that influences a production plan is? Physical capacity Finished goods inventory Subcontractor capacity Current workforce
Subcontractor capacity
A company producing widgets only needs Part A for 40% of the widgets built. This company is likely using what type of bill-of-material? Partial bill-of-material Modular bill-of-material Deluxe bill-of-material Super bill-of-material
Super bill-of-material
Which of the following is NOT a part of the material requirements planning system? Master production schedule Supplier delivery schedule Bill-of-materials Inventory records
Supplier delivery schedule
The file containing the complete product description, parts listing, quantity needed and product build sequence is called? The peg record The bill-of-material The inventory log The MPS
The bill-of-material
Which of the following is not a major component of a queuing system?
The distraction technique selected
Which of the following is not a major component of a queuing system? The condition of customers exiting the system The source population The distraction technique selected The servicing system
The distraction technique selected
Which of the following is not a main factor to consider with waiting lines regarding line structure and service rate?
The distribution utilized
Which of the following is not a main factor to consider with waiting lines regarding line structure and service rate? The line length The number of lines The queue discipline The distribution utilized
The distribution utilized
What does n refers to in the Poisson distribution? The number of arrivals in a system The number of customers leaving the system The time period The mean number of arrivals per period
The number of arrivals in a system
The objective of the __________________ is to minimize the cost of resources required to meet demand over that period.
The objective of the aggregate operations plan is to minimize the cost of resources required to meet demand over that period.
Which of the following statements about aggregate operations plans is true? Multiple select question. The plan is generally stated in aggregate units rather than specifying particular products. The plan may be derived from the corporate plan. The plan may be developed by simulating a number of master production schedules to choose the best option. Once the plan is developed, it is not updated regardless of conditions.
The plan is generally stated in aggregate units rather than specifying particular products. The plan may be derived from the corporate plan. The plan may be developed by simulating a number of master production schedules to choose the best option.
FIRST COME, FIRST SERVED
The queuing models assume that customers are served in what order?
Product-Process Matrix
The relationship between how different layout structures are best suited depending on volume and product variety characteristics is depicted on this type of graph.
When customers leave the service system, which of the following exit fates are considered in queuing system analysis? Multiple select question. The customer may perform the service for other customers waiting in line. There may be a low probability that the customer will require service again. The customer may utilize service time to ask questions. The customer may return to the source population.
There may be a low probability that the customer will require service again. The customer may return to the source population.
Manufacturing Cell
This is a production layout where similar products are made. Typically it is scheduled on an as-needed basis in response to current customer demand.
LINE OF VISIBILITY
This is the key feature that distinguishes a service blueprint from a normal flowchart
Match each inventory measure with its definition. Total average value of inventory Inventory turn Days-of-supply Cost of goods sold/Average inventory Average Inventory/Cost of goods sold x 365 Sum of raw materials, work-in-progress, and finished goods inventory
Total average value of inventory: Sum of raw material, work-in-process, and finished goods inventory Inventory turn: Cost of goods sold/Average inventory Days-of-supply: Average inventory/Cost of goods sold x 365
Which of the following is/are issues a master scheduler must consider? Multiple select question. Trade-off manufacturing, engineering and marketing conflicts. Be involved with customer order promising. The firms financing plans. Never lose sight of the aggregate plan. Adjust the raw material supply schedule as needed.
Trade-off manufacturing, engineering and marketing conflicts. Be involved with customer order promising. Never lose sight of the aggregate plan.
True or false: A least total cost lot sizing technique is a dynamic approach that continually looks for an optimal lot size where carrying costs and ordering costs are close to equal.
True
True or false: Distribution and logistics is typically involved in sales and operations planning.
True
True or false: In services, the process and the product must be designed simultaneously.
True
True or false: Intermediate-range plan activities include forecasting.
True
True or false: Typically, there is a trade-off where quicker response to customer demand comes at the expense of greater inventory investment.
True
Which of the following is not a way to reduce the required time for a task? Work overtime Share the task among several workstations Use a less skilled worker Product redesign
Use a less skilled worker
Which of the following are issues that arise in managing yield? Multiple select question. Inventory that has not arrived on time will delay production. Variability in arrival times, starting times, duration, and time between customers. The customer must feel the pricing structures are logical. Managing the service process so capacity can quickly be reallocated or added.
Variability in arrival times, starting times, duration, and time between customers. The customer must feel the pricing structures are logical. Managing the service process so capacity can quickly be reallocated or added.
Which of the following is not a type of time fence described in the text? Variable Frozen Slushy Liquid
Variable
Which of the following terms describes the arrival rate that occurs when customers arrive at a non-constant rate? Constant Variable Infinite Periodic
Variable
Posting a sign with the proper customer greeting next to the cash register is what type of poka-yoke?
Visual Contact Method
Posting a sign with the proper customer greeting next to the cash register is what type of poka-yoke?
Visual contact method
Which of the following is one of the dimensions depicted on a product-process matrix? Service Time Cost Volume
Volume
100%
What is the average utilization of the servers in a system that has three servers? On average, 15 customers arrive every 15 minutes. It takes a server exactly three minutes to wait on each customer
INFINITE
What is the expected waiting time for the following system: On average, 15 customers arrive every 15 minutes. It takes a server exactly three minutes to wait on each customer Average utilization of servers has three servers
When classifying services they can be grouped by? Location of service facility and the service being provided. Who the customer is and the service being provided. Who the customer is and the service delivery options. Who the customer is and the location of the service facility.
Who the customer is and the service being provided. Reason: Services are generally classified by who the customer is (individuals or businesses) and the service provided (finances, health, etc).
Which work flow structure is appropriate for a process with great flexibility to produce a variety of products? Workcenter Continuous process Manufacturing cell Project layout
Workcenter
The number of workers needed to meet production requirements is called? Shift load Workforce level Worker teams Lead requirements
Workforce level
In Model 2, a constant service time system, the average time customers spend waiting in line is calculated as? Wq=Lq/μ Wq=Lq/λ Wq=Ls/μ Wq=Ls/λ
Wq=Lq/λ
The average total time in the system (including time to be served) is calculated using which of the following equations for an infinite queue model? Lq=Ls/λ Ws=Ls/λ Ls=Ws/λ Wq=Lq/λ
Ws=Ls/λ
The average total time in the system (including time to be served) is calculated using which of the following in Model 2, constant service time system, equations? Ws=Ls/λ Lq=Ls + Ls/λ Ls=Lq + Lq/λ Wq=Ls/λ
Ws=Ls/λ
The practice of allocating capacity and manipulating demand to make it more predictable.
Yield management
Least unit cost provides _________ as an advantage when taking variable ordering costs and setup costs into account. a shorter computation a simple return on investment a quick reference a more complete analysis
a more complete analysis
One key to a successful budgeting process is
accurate aggregate plan
Firms invest in lean manufacturing programs in order to assemble products after a customer has placed an order. ensure that products are highly customized. achieve high customer service with minimum levels of inventory investment. design products after a customer has placed an order.
achieve high customer service with minimum levels of inventory investment.
Workcenters with large amounts of interdepartmental traffic are often placed adjacent to each other. far away from each other. in areas where few machines are located. near exits.
adjacent to each other.
During the sales and operations planning process, both marketing and operations focus on the ________ product and sales volumes.
aggregate
During the sales and operations planning process, both marketing and operations focus on the _______________ product and sales volumes.
aggregate
the main purpose of the ____________ plan is to specify the optimal combination of production rate, workforce level, and inventory on hand.
aggregate
translates annual and quarterly business plans into broad labor and output plans for the intermediate term (3 to 18 months).
aggregate operations plan
The output of the sales and operation planning process is the
aggregate plan
a high-level operational plan that can be executed by the operations and supply chain functions.
aggregate plan
Long-range planning is generally done _______________ and for a time horizon greater than _______________ year(s).
annually one
long range planning is generally done _____ and for a time horizon greater than ____
annually one year
In the exponential distribution, lambda (λ) represents the mean number of ___________ per time period? customers waiting seconds departures arrivals
arrivals
An _______________ _______________ arranges processes according to the sequence of steps by which the product is manufactured. arranges processes according to the sequence of steps by which the product is manufactured.
assembly line
If a company has more units in the master production schedule than firm customer orders, the residual is called?
available to promise
which relevant costs are often the most difficult to measure
backordering costs
The two types of impatient arrivals are known as balking and reneging. surveying and reneging. surveying and waiting. balking and waiting.
balking and reneging.
what are the four costs relevant to aggregate production plan
basic production costs costs associated with changes in the production rate inventory holding costs backorder costs
MRP systems tend to work best in companies where products are made in _____ using the same productive equipment.
batches
MRP systems tend to work best in companies where products are made in_____________, using the same productive equipment.
batches
Customer order decoupling points Multiple select question. can impact inventory investment. determine lead times. are not a necessary supply chain production process. allow manufacturers to see every customer purchase.
can impact inventory investment. determine lead times.
Unlike designing a product to sell, services offer all customers the same interactions. are typically stored for use at a later time. do not require customer interaction. cannot be patented.
cannot be patented.
A major component of inventory holding costs is often the cost of _____ tied up in inventory.
capital
Lumpiness, or the tendency for uneven production, further down the creation sequence is cause by items being withdrawn from inventory in single items. not possible with an ERP system in place. caused by items being withdrawn from inventory in lots.
caused by items being withdrawn from inventory in lots.
A strategy where the production rate is set to match expected demand.
chase
Match the production rate to the order rate by hiring and laying off employees as the order rate varies.
chase strategy
in production planning, adjusting the production rate by hiring and laying off employees to match the sales forecast is called a:
chase strategy
In production planning, adjusting the production rate by hiring and laying off employees to match the sales forecast is called a level strategy. pull strategy. master production strategy. chase strategy.
chase strategy.
three production planning strategies are:
chase, level and stable workforce.
The three production planning strategies are _____. chase, stable, and level stable, mixed, and pure chase, stable, and mixed stable, level, and mixed
chase, stable, and level
When the degree of customer contact is low, workers rely more heavily on
clerical skills.
A _____ product is one that may help smooth cyclical demand fluctuations.
complementary
may help smooth cyclical demand fluctuations.
complementary product
Complex waiting lines that cannot be analyzed with simple formulas, can often be addressed through _______________ simulation.
computer
Complex waiting lines that cannot be analyzed with simple formulas, can often be addressed through simulation.
computer
When the time between successive arrivals is always exactly the same, the arrival distribution is described as ________. random exponential constant frequent
constant
Yield management is defined as the process of allocating the right type of _____ capacity to the right type of at the right price and _____ to maximize profit.
customer time
The term that refers to the physical presence of the customer in the system is known as Multiple choice question.
customer contact
The term that refers to the physical presence of the customer in the system is known as customer satisfaction. customer variability. customer service. customer contact.
customer contact.
The point in the supply chain where inventory is positioned to allow the preceding processes to operate independently is the manufacturing independence point. forecast level. customer order independence point. customer order decoupling point.
customer order decoupling point.
Aggregation on the demand side is done by groups of _______________.
customers
aggregation on the demand side is done by groups of ______
customers
One simple means of developing aggregate plans, which involves analyzing various alternative plans and selecting the best one, is called _____-and-_____.
cut try
The entries within the service-system matrix list the ways in which a service can be
delivered
The entries within the service-system matrix list the ways in which a service can be _______________.
delivered
From an operation perspective, yield management is most effective when Multiple select question. inventory can be stored for long periods of time. demand can be segmented by customer. demand is stable. fixed costs are high and variable costs are low.
demand can be segmented by customer. fixed costs are high and variable costs are low.
Long-range planning activities include Multiple select question. purchasing materials for production. developing the optimal production workforce plan to meet the sales forecast. designing the manufacturing and service processes that produce the products of the firm. designing the logistics activities that deliver products to the customer.
designing the manufacturing and service processes that produce the products of the firm. designing the logistics activities that deliver products to the customer.
A high degree of technology and total face-to-face customization requires workers to use more
diagnostic skills
A manufacturing cell is generally made up of ___________ machines. dissimilar similar identical
dissimilar
Inventory turn is calculated by dividing average inventory value by cost of goods sold. dividing cost of goods sold by average inventory value. multiplying cost of goods sold by 52 weeks. multiplying cost of goods sold by average inventory.
dividing cost of goods sold by average inventory value.
The required workstation cycle time is determined by dividing the production time per day by the required output per day. dividing required output per day by the production time per day. multiplying the production time per day by the required output per day. observing the process to determine its current cycle time.
dividing the production time per day by the required output per day.
Level 0 items during the explosion process are typically referred to as _____ items, or gross requirements.
end
The master production schedule is used to plan
end items
The master production schedule is used to plan raw materials. end items. supply parts. rework.
end items.
In a queuing system, it is important to understand the condition of customers as they ____________ the system because they may or may not rejoin the source population.
exit
In a queuing system, it is important to understand the condition of customers as they_________ the system because they may or may not rejoin the source population.
exit
In a queuing system, it is important to understand the condition of customers as they _______________ the system because they may or may not rejoin the source population.
exit, leave, go away from, depart from, or depart
True or false: Finished goods purchased by individuals external to the organization are considered dependent demand items.
false
True or false: Most waiting line problems that have a series of services can be solved manually as they are simple.
false
True or false: Services can be inventoried. True false question. True False
false
True or false: The time customers spend waiting in line is not a factor that the firm can control.
false
True or false: There is no difference in analysis for queues with infinite arrivals and ones with finite arrivals.
false
When a queue has a limited-size customer pool that will use the service, it has a(n) __________ population.
finite
When a queue has a limited-size customer pool that will use the service, it has a(n) __________ population. infinite defined finite unknown
finite
Basic production costs consist of _____ and _____ costs incurred in producing a given product type in a given time period.
fixed variable
basic production costs consist of _____ and _____ costs incurred in producing a given product type in a given time period.
fixed and variable
Basic production costs consist of ___________and _____________ costs incurred in producing a given product type in a given time period.
fixed, variable
Service systems with a_________ degree of customer contact are more challenging to control.
high or higher
When dealing with customer arrivals, a(n) _________ population is large enough that additions or subtractions of customers does not significantly affect the system probabilities.
infinite
When dealing with customer arrivals, a(n) _________ population is large enough that additions or subtractions of customers does not significantly affect the system probabilities. status-quo finite infinite indefinite
infinite
When the customer pool is large enough that adding or removing customers who receive service does not affect system probabilities, the population is defined as _______________.
infinite
top management considers an aggregate operations plan a _______ term planning tool
intermediate
__________ planning activities include forecasting and demand management, as well as sales and operations planning.
intermediate-range planning
Using complex lot-sizing techniques, larger lot sizes can cause an increase in __________, complicating plant logistics. inventory setup costs supplier costs demand
inventory
spoilage and obsolescence costs are considered what type of relevant cost?
inventory holding costs
what is an internal factor that influences a production plan
inventory levels
is unused inventory carried over from the previous period.
inventory on hand
unused inventory that is carried over from the previous period is called?
inventory on hand
A material requirements planning system interfaces with the master production schedule, bill-of-materials file and __________
inventory records file.
A material requirements planning system interfaces with the master production schedule, bill-of-materials file and __________. product demand. inventory records file. forecasted sales. customer purchase order.
inventory records file.
When changes occur because of stock receipts and disbursements, scrap losses, wrong parts and canceled orders, the real-time file capturing these changes is called the peg record file. bill-of-material file. inventory transactions file. inventory backlog file.
inventory transactions file.
The inventory records file contains information such as Multiple select question. item description. list of authorized suppliers. lead time. planned order releases. safety stock.
item description. lead time. planned order releases. safety stock.
Basic production costs consist mainly of charges related to
labor.
Basic production costs consist mainly of charges related to labor. training. insurance. inventory.
labor.
The practice of achieving high levels of customer service with a minimal inventory investment is known as _______________ manufacturing. The practice of achieving high levels of customer service with a minimal inventory investment is known as manufacturing.
lean
The _____ _____ _____ method is a dynamic approach that adds ordering and inventory carrying costs for each trial lot size, divides the costs by the number of units, and chooses the lot size with the lowest unit cost.
least unit cost
One of the limitations with least total coast (LTC) is the influence by the size of the manufacturing site. length of the planning horizon. number of parts ordered. selection of suppliers.
length of the planning horizon.
In production planning, a __________ strategy is executed by maintaining a stable workforce and producing output at a constant rate.
level
a ___________ schedule holds production constant over a period of time.
level
A strategy that uses inventory and backorders as part of the strategy to meet demand.
level strategy
On a service blueprint, the line that shows the distinction between the high customer aspects of the service and those activities that the customer does not see is known as the
line of visibility
On a service blueprint, the line that shows the distinction between the high customer aspects of the service and those activities that the customer does not see is known as the line of visibility. line of interaction. line of support. line of communication.
line of visibility.
Activities such as designing of manufacturing and service processes or designing logistics activities are part of the _____-range planning process.
long
Activities such as designing of manufacturing and service processes or designing logistics activities are part of the
long range planning process
__________ planning activities include the design of the manufacturing and service processes that produce the products of the firm, and the design of the logistics activities that deliver products to the customer.
long-range
are the part quantities issued in the planned order receipt and planned order release sections of an MRP schedule. Economic order quantity
lot sizes
In the service-system design matrix, as the degree of customer contact increases, the production efficiency tends to become:
lower
In the service-system design matrix, as the degree of customer contact increases, the production efficiency tends to become ________. higher irrelevant lower level
lower Reason: As the degree of customer contact increases, the production efficiency tends to become lower.
The master production schedule typically deals with end items, but can be broken down to __________ if the item is large or expensive. inexpensive components work-in-process major subassemblies single use
major subassemblies
A map showing the flow of materials through a manufacturing system is known as a _______________-to-_______________ process map. A map showing the flow of materials through a manufacturing system is known as a -to- process map.
make stock
Firms whose product is built directly from raw materials and components in response to a customer are known as engineer-to-order. make-to-stock. assemble-to-order. make-to-order.
make-to-order.
When using the cut-and-try approach, you may not find all costs in the accounting records. You may need to get them indirectly from ______ personnel.
management
Waiting lines are a factor that can be controlled by Multiple select question. managing arrival rates. managing service rates. monitoring competitors.
managing arrival rates. managing service rates.
A pure platform business creates value by
managing transactions between customers and providers
A pure platform business creates value by
managing transactions between customers and providers.
A pure platform business creates value by managing transactions between customers and providers. sales their own products and those of others. carrying an inventory of goods. own and produce their products.
managing transactions between customers and providers. Reason: Pure platform businesses only manage transactions between customers and providers.
A _______________ _______________ layout uses dedicated areas for production of similar products. layout uses dedicated areas for production of similar products.
manufacturing cell
The goal of a yield management system is to maximize profit or revenue. reduce inventory costs. reduce supplier lead times. maximize customer satisfaction.
maximize profit or revenue.
When attempting to balance an assembly-line, the amount of idle time across workstations should be _________________. maximized minimized the projected monthly sales unimportant
minimized
If an organization is using overtime, hiring/firing employees, and subcontracting to modify production plans, it is likely deploying which type of production strategy?
mixed
if an organization is using overtime, hiring/firing employees, and subcontracting to modify production plans, it is likely deploying which type of production strategy?
mixed
An item that can be produced and stocked as a subassembly often uses a _____ bill-of-materials for planning.
modular
When two or more servers each have a line in front of their station, the system is described as having _______________ lines.
multiple
If inventory turn is known, days-of-supply is calculated by multiplying the inverse of inventory turn by 365 days. dividing the inventory turn by 365 days. multiplying the inventory turn by 365 days. multiplying the inventory turn by 12 months.
multiplying the inverse of inventory turn by 365 days.
After finding gross requirements, the next step in the MRP explosion process references inventory on hand and scheduled orders to calculate _____ requirements.
net
the main purpose of an aggregate plan is to specify the
optimal combination of production rate, workforce level and inventory on hand
Workcenters are often structured _______________ to the movement of material. Workcenters are often structured to the movement of material.
optimize
The ultimate goal of any MRP lot sizing approach is to balance the setup or _____ costs and the _____ costs associated with meeting the net requirements generated by the MRP planning process.
order holding
the ultimate goal of any MRP lot sizing approach is to balance the setup or _______________ costs and the ______________costs associated with meeting the net requirements generated by the MRP planning process.
order, holding
In a stable workforce-variable work hours plan, one varies the _____ rate by varying the number of _____ worked through flexible schedules and overtime.
output hours
in a stable workforce - variable work hours plan, one varies the ____ by varying the number of _____ worked through flexible schedules and overtime.
output hours
The file created by retracing a material requirement upward in the product structure to identify each parent item that created the demand is called a _____ record.
peg
Which of the following would be located on the MPS plan? Multiple select question. vehicle engine purchased for a production line. pens ordered from an office supply company. pen caps ordered by a pen manufacturer from a supplier. a new vehicle purchased from an automotive dealer.
pens ordered from an office supply company. a new vehicle purchased from an automotive dealer.
The arrival rate is the number of units per
period
The arrival rate is the number of units per _______________.
period
Aggregate plans vary from company to company based on size and need, formal reports generally contain the human resources procedures for hiring. simple calculations for staffing strategies. planning premises that lead to planning objectives.
planning premises that lead to planning objectives.
Procedures that prevent mistakes from becoming service defects are known as
poka-yokes.
The _______________ relationship identifies the restrictions imposed by product design and process technologies. relationship identifies the restrictions imposed by product design and process technologies.
precedence
Training workers and managers on how to handle frequent _____ changes is an important part of operating a yield management system.
price
The ______________-_______________ matrix shows when different production process types are used in relation to product volume and standardization. matrix shows when different production process types are used in relation to product volume and standardization.
product process
On the supply side of the business, aggregate planning is done by groups of customers. competitors. product families. suppliers.
product families.
The bill-of-material (BOM) file is also known as a Multiple select question. product structure file. product recipe. assembly instruction. product tree.
product structure file. product tree.
A framework depicting when the different production process types are typically used depending on volume and standardization is known as the product-volume matrix. process-cost matrix. process-time matrix. product-process matrix.
product-process matrix.
The aggregate operations plan's objective is to set _____ rates for the intermediate term, from 3 to 18 months.
production
The number of units completed per unit of time is called the _____rate.
production
the number of units completed per unit of time is called the _______ rate
production
To determine the required workstation cycle time, an analyst needs to know the _______________ _______________ per day and the required _______________ per day (in units). To determine the required workstation cycle time, an analyst needs to know the per day and the required per day (in units).
production time output
Hiring, training and laying off personnel are costs associated with
production rate
refers to the number of units completed per unit of time (such as per hour or per day).
production rate
the main purpose of the aggregate plan is to specify the optimal combination of ______, workforce level, and inventory on hand
production rate
Hiring, training, and laying off personnel are costs associated with
production rate changes.
Hiring, training, and laying off personnel are costs associated with financial services. backordering costs. inventory. production rate changes.
production rate changes.
When doing aggregate planning, these are the three general operations-related variables that can be adjusted.
production rate, workplace level, inventory
Before investigating alternative production plans, demand forecasts should be converted into production requirements. inventory requirements. forecast for the next period. only safety stock requirements.
production requirements.
The workforce level can be determined by which calculation? inventory on-hand x production rate production/production rate production x production rate inventory on-hand/production rate
production/production rate
When an organization consistently uses a single variable only to modify production plans, such as, hiring/firing employees or building/depleting inventory, it is likely deploying a _____ strategy.
pure
when an organization consistently uses a single variable only to modify production plans, such as, hiring/firing employees, it is likely deploying a _____ strategy
pure
Some benefits of an ERP system are Multiple select question. quality management can develop inspection points for products during manufacturing. manufacturing knows about orders as soon as they are entered. human resources knows how many employees to schedule. sales can track all the details of an order.
quality management can develop inspection points for products during manufacturing. manufacturing knows about orders as soon as they are entered. sales can track all the details of an order.
Intermediate-range plans cover a period from 3 to 18 months, and can use increments of time such as Multiple select question. annually. quarterly. weekly. monthly.
quarterly. weekly. monthly.
In addition to line length and number of lines, _________ discipline is a key factor in waiting line analysis.
queue
In addition to line length and number of lines, _______________ discipline is a key factor in waiting line analysis.
queue
In addition to line length and number of lines__________discipline is a key factor in waiting line analysis.
queue
A means of justifying a price difference to customers (such as first-class airline seats) is known as a _____ fence.
rate
Accurate medium-range planning can increase the likelihood of
receiving the requested budget. operating within the limits of the budget.
Accurate medium-range planning can increase the likelihood of Multiple select question. receiving the requested budget. utilizing a chase strategy. reducing inventory expenditures. operating within the limits of the budget.
receiving the requested budget. operating within the limits of the budget.
By simulating various master production schedules and calculating corresponding capacity, labor and equipment requirements, one is developing a:
rough cut aggregate plan
By simulating various master production schedules, and calculating corresponding capacity and labor and equipment requirements, one is developing a(n)
rough-cut aggregate plan.
By simulating various master production schedules, and calculating corresponding capacity and labor and equipment requirements, one is developing a(n) rough-cut aggregate plan. financial plan. inventory model. production forecast.
rough-cut aggregate plan.
The calculated theoretical number of workstations should be ____________________. greater than three. rounded up to the next highest integer. calculated using the first task. rounded down to the nearest integer.
rounded up to the next highest integer.
The planning process that helps firms provide better customer service, shorter lead times, and allows top management to get a handle on the business is known as
sales and operations
The planning process that helps firms provide better customer service, shorter lead times, and allows top management to get a handle on the business is known as ____ planning. material requirements service sales and operations enterprise resource
sales and operations
The term ________________________ was coined by companies to refer to the process that helps firms keep demand and supply in balance, which was originally called aggregate planning.
sales and operations planning
what process gives senior management a better handle on the meeting customer demand over a 3 to 18 month time horizon
sales and operations planning
short-term operations and supply chain tasks are focused mostly on scheduling ______ and shipment ______
scheduling production and shipment orders
A key issue in operating a yield management system is managing the _____ process.
service
The number of customers a server can handle during a given time period is known as the _______________ rate.
service
A _______________ _______________ is a flowchart used to emphasize the importance of service process design.
service blueprint
A flowchart of a service process, emphasizing what is visible and what is not visible to the customer is known as a
service blueprint
a flowchart used to emphasize the importance of service process design.
service blueprint
A flowchart of a service process, emphasizing what is visible and what is not visible to the customer is known as a
service blueprint.
A flowchart of a service process, emphasizing what is visible and what is not visible to the customer is known as a service driver. service strategy. service blueprint. service guarantee.
service blueprint.
A dominant issue in service design is
service capacity.
A dominant issue in service design is service capacity. service culture. service response. service variability.
service capacity.
A bundle of goods and services provided by a firm is called a
service package
a flowchart used to emphasize the importance of service process design.
service-blueprint
___________ planning activities are focused mostly on scheduling production and shipment orders.
short-term
A system with one server and one line leading to that server is described as a multiple line system. single line system. short line system.
single line system.
When overtime is used to meet demand and avoid the costs associated with hiring and firing.
stable workforce - variable work hours
Sometimes a firm may choose to have all or part of the work done by an outside vendor. This is the term used for the approach.
subcontracting
A company producing widgets only needs Part A for 40% of the widgets built. This company is likely using what type of bill-of-material?
super
the end goal of a sales and operations planning meeting is to find the best course of actions to achieve the optimal balance between _____ and _____
supply and demand
In a project layout, a high degree of __________ is common. workcenter design assembly line work process cell formation task ordering
task ordering
In plan 2 of our aggregate production plan, the constant number of workers is calculated by finding _____. the average number of workers required each day over the horizon the total number of workers required throughout the duration the total number of workers required in a day multiplied by the duration the average number of workers required each week over the horizon
the average number of workers required each day over the horizon
When managing a line, a manager must consider the trade-off between
the cost of providing more rapid service and the cost of waiting.
When managing a line, a manager must consider the trade-off between the cost to employees and the cost to customers. the cost of providing more rapid service and the cost of waiting. the cost of employee breaks and the cost of waiting. the cost of providing slower service and the cost to employees.
the cost of providing more rapid service and the cost of waiting.
If ordering costs and setup costs remain constant then _________ is the easiest method for lot sizing. the lowest total cost method any method the least unit cost method the lot-for-lot method
the lowest total cost method
The group of potential customers for a queuing system is known as the
the source population
When a customer exits the queue, the customer may return to the source population to be served again or the customer files a complaint. the customer returns to the end of the line. the customer becomes a server. there is a low chance of reservice.
there is a low chance of reservice.
_____ _____ are a company's attempt to provide a controlled window of opportunity to make changes to the master production schedule.
time fences
At any point in time, an MRP system can access the status segment of the inventory record according to specific time periods commonly known as
time buckets
At any point in time, an MRP system can access the status segment of the inventory record according to specific time periods commonly known as low-level coding system. product part matrix. bill-of-material. time buckets.
time buckets.
A production process map is built by tracking the flow of material through the system. determining where inventory is purchased. identifying where value is added to materials. identifying where labor is utilized.
tracking the flow of material through the system.
In services, the process and the product must be designed simultaneously. True false question.
true
True or false: The cost trade-off decision in the management of queues is often straightforward.
true
distribution and logistics is typically involved in sales and operations planning
true
intermediate-term plan activities include forecasting
true
true or false: Distribution and logistics is typically involved in sales and operations planning.
true
True or false: The output of a service process is intangible.
true: Services do not have physical dimensions that can be weighed or measured.
The most common arrival distribution observed in service systems is the ________ arrival distribution. frequent variable constant timed
variable
Yield management is most common when price is __________ and duration is _____________.
variable, predictable
Standardization on the product-process matrix refers to the amount of product being produced. the volume the process is designed to produce. raw materials shared between processes. variations in the product.
variations in the product.
Standardization on the product-process matrix refers to variations in the product. the amount of product being produced. the volume the process is designed to produce. raw materials shared between processes.
variations in the product.
A _______________ _______________ business does not own inventory, they merely provide a means for connecting parties interested in conducting business.
web platform
_________. __________business does not own inventory, they merely provide a means for
web platform
In a _______________ layout, machines are grouped according to type or function and parts travel to the appropriate location for processing. layout, machines are grouped according to type or function and parts travel to the appropriate location for processing.
workcenter
is the number of workers needed for production (production = production rate × workforce level).
workforce level
the number of workers needed to meet production requirements is called
workforce level
The aggregate operations plan is mainly concerned with optimal Multiple select question. workforce levels. quality assurance. production rates. purchasing.
workforce levels. production rates.
Production planning strategies involve trade-offs among Multiple select question. workforce size. size of production facility. production schedule. inventory.
workforce size. inventory.
When parts are moved on a conveyor that passes a series of workstations in a uniform time interval, this is called the ___________________. workstation cycle time assembly-line balance assembly-line design workstation task
workstation cycle time
The time between successive units coming off the end of an assembly line is referred to as assembly-line balancing. line balancing. process flow. workstation cycle time.
workstation cycle time.
One means of making demand more predictable is _____ management.
yield
can be defined as the process of allocating the right type of capacity to the right type of customer at the right price and time to maximize revenue or yield
yield management
Which Greek symbol is used to represent the arrival rate in an infinite queuing model? λ 1/μ μ 1/λ
λ
In Model 1, a simple system, the average number of customers in the system is calculated as? λ/λ+μ λ/μ-λ λ/λ−μ λ/μ+λ
λ/μ-λ
Which Greek symbol is used to represent the service rate in an infinite queuing model? λ 1/μ μ 1/λ
μ
