Practice Test Questions - Final Exam

5. An item has a lead time of six weeks and an average demand of 150 units per week. The safety, stock for the item is 300 units and the order quantity is 2,000 units. The order point for the item is_______ (A) 300 units (B) 900 units (C) 1,200 units (D) 2,000 units

(C) 1,200 units

6. Which of the following best describes a kanban system? (A) a quality control system (B) push production (C) requires operator flexibility (D) visual reorder point

(D) visual reorder point

9. Which of the following is the most likely impact of doubling the ordering costs for an item? (A) The order quantity will increase. (B) The order point will increase. (C) The order quantity will decrease. (D) The order point will decrease.

(A) The order quantity will increase.

1. Which of the following is most likely to be a dependent demand item? (A) a manufactured subassembly (B) an item in a grocery store (C) a service part (D) an office supply item

(A) a manufactured

7. The demand at a workstation in a lean system typically comes from_______ (A) a pull signal (B) a dispatch list (C) the production plan (D) a control chart

(A) a pull signal

8. The master production schedule (MPS) is________ (A) an anticipated build schedule (B) an input to the production plan (C) a statement of forecast demand (D) driven by material requirements planning

(A) an anticipated build schedule

3. Material requirements planning (MRP) schedules a planned order receipt when_________ (A) a gross requirement exists (B) a net requirement exists (C) an exception is generated (D) safety stock is zero

(B) a net requirement exists

4. Which of the following provides a buffer for seasonal demand? (A) lot-size inventory (B) fluctuation inventory (C) anticipation inventory (D) decoupling inventory

(B) fluctuation inventory

7. Which of the following is a good measure of customer focus? (A) high organizational turnover (B) high quality levels (C) many performance measures (D) many supplier contacts

(B) high quality levels

3. In most cases, the fastest way to increase capacity to meet a short-term requirement is to_______. (A) hire additional workers (B) use overtime. (C) acquire more equipment (D) subcontract work

(B) use overtime.

Item 2 is based on the following data. Beginning inventory = 200 units Ending inventory = 200 units Sales forecast: (Month) Quantity (1) 200 (2) 300 (3) 200 (4) 400 (5) 300 2. What is the required monthly production to achieve level production? (A) 220 units (B) 240 units (C) 280 units (D) 340 units

(C) 280 units

2. Which of the items in the bill of material are parents? (A) A only (B) B, C, and G only (C) A and B only (D) A, B, C, and G only

(C) A and B only

10. Which of the following defines the sequence of operations to be performed to manufacture a part? (A) item master (B) bill of material (C) routing (D) shop calendar

(C) routing

1. How many units of part C are required to produce one unit of part A? (A) 2 (B) 4 (C) 6 (D) 8

(D) 8 As part of B: 2X2X1=4 As part of A: 4X1=4 Total=8

4. A purpose of holding extra inventory is to_________ (A) allow production to select what to run (B) minimize the bill of material levels (C) reduce the number of purchased items (D) buffer production from demand variation

(D) buffer production from demand variation

5. A lean production 5S system is designed to_____. (A) recycle (B) discover defects (C) identify work method deviations (D) create a visual workplace

(D) create a visual workplace

6. The primary purpose of a cycle count program is to__________ (A) correct inventory errors (B) result in fewer counts per year (C) require less skilled counters (D) identify causes of inventory errors

(D) identify causes of inventory errors

Industrial location analysis typically attempts to: A) minimize costs. B) maximize sales. C) focus more on human resources. D) avoid countries with strict environmental regulations. E) ignore exchange rates and currency risks.

Answer: A

1. The typical goal used when developing a process-oriented layout strategy is to: A) minimize the distance between adjacent departments. B) minimize the material handling costs. C) maximize the number of different tasks that can be performed by an individual machine. D) minimize the level of operator skill necessary. E) maximize job specialization.

Answer: B

A forecast with a time horizon of about 3 months to 3 years is typically called a: A) long-range forecast. B) medium-range forecast. C) short-range forecast. D) weather forecast. E) strategic forecast.

Answer: B

In most manufacturing industries, which of the following would likely represent the largest cost to the firm? A) transportation B) purchasing C) insurance D) financing E) advertising

Answer: B

The objective of layout strategy is to: A) minimize cost. B) develop an effective and efficient layout that will meet the firm's competitive requirements. C) maximize flexibility. D) minimize space used. E) maximize worker satisfaction.

Answer: B

Which sourcing strategy is particularly common when the products being sourced are commodities? A) few suppliers B) many suppliers C) keiretsu D) vertical integration E) virtual companies

Answer: B

Traffic counts and purchasing power analysis of drawing area are techniques associated with: A) locational cost-volume analysis. B) a manufacturing location decision. C) a retail or professional service location decision. D) the factor-rating method. E) the transportation model.

Answer: C

The total of all outputs produced by the transformation process divided by the total of the inputs is: A) utilization. B) greater in manufacturing than in services. C) defined only for manufacturing firms. D) multifactor productivity. E) single-factor productivity.

Answer: D

What is sometimes referred to as rated capacity? A) efficiency B) utilization C) effective capacity D) expected output E) design capacity

Answer: D

Which of the following is a similarity between goods and services? A) mass production B) consistency C) automation D) Both have quality standards. E) Both can usually be kept in inventory.

Answer: D

A strategy is a(n): A) set of opportunities in the marketplace. B) broad statement of purpose. C) simulation used to test various product line options. D) plan for cost reduction. E) action plan to achieve the mission

Answer: E

The ability of an organization to produce goods or services that have some uniqueness in their characteristics is: A) mass production. B) time-based competition. C) competing on productivity. D) competing on quality. E) competing on differentiation.

Answer: E

PERT, but not CPM, has the ability to consider the precedence relationships in a project.

Answer: FALSE

One reason to study operations management is to learn how people organize themselves for productive enterprise.

Answer: TRUE

One responsibility of a project manager is to make sure that the project meets its quality goals.

Answer: TRUE

Production processes are being dispersed to take advantage of national differences in labor costs.

Answer: TRUE

The bullwhip effect refers to the increasing fluctuations in orders that often occur as orders move through the supply chain.

Answer: TRUE

The sales force composite forecasting method relies on salespersons' estimates of expected sales.

Answer: TRUE

To attract and retain global talent, and to expand a product's life cycle, are both reasons to globalize.

Answer: TRUE