OPM 311 CH 6 HW

You are in a line at the bank drive-through and 4 cars are in front of you. You estimate that the clerk is taking about three minutes per car to serve. How long do you expect to wait in line?

12 minutes

The time needed to respond to a customer's order is called the customer response time.

False The time needed to respond to a customer order is called the lead time.

Little's law states that supply chain processes can be regarded as unrelated and thus treated and analyzed separately.

False We can think of Little's law as a relationship between units and time.

A high-level map or diagram of a supply chain process can be useful to understand how material flows and where inventory is held.

True

Assembling-to-order means moving the customer order decoupling point from finished goods to subassemblies or components.

True

Engineer-to-order firms will work with the customer to design the product, and then make it from purchased materials, parts, and components.

True

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

True

Little's law can be thought of as a relationship between units and time

True

The essential issue in satisfying customers in the make-to-stock environment is to balance the level of finished inventory against the level of service to the customer.

True

The focus in the make-to-stock environment is on providing finished goods where and when the customers want them.

True

One methodology used to evaluate equipment investment decisions where the investment entails an initial investment, fixed costs, and variable costs is Break-Even Analysis.

True A standard approach to choosing among alternative processes or equipment is breakeven Analyze

The term "assembly line" refers to progressive assembly linked by some material handling device.

True An assembly line is a layout design for the special purpose of building a product by going through a progressive set of steps. The assembly steps are done in areas referred to as "stations," and typically the stations are linked by some form of material handling device.

A project layout is characterized by a high degree of task ordering.

True In a project layout, a high degree of task ordering is common.