Burns ISQS 3344 final exam

Which of the following statements concerning average error is true?

A positive value indicates low bias, and a negative value indicates high bias.

Which of the following is not a general characteristic of a project?

A project has more certainty

Which of the following is not one of the three basic costs of inventory management?

All of the above are basic costs. (Carrying, ordering, and shortage)

In lean production, waste is defined as ________.

All the above are waste

In a ________ inventory system, a constant quantity is ordered when inventory declines to a predetermined level.

Continuous

Which of the following is not a principle for reducing setup times?

Converting external setup to internal setup

Which of the following statements is generally true regarding the relationship between project crashing costs and indirect costs?

Crashing costs increase when the project is shortened while indirect costs decrease when the project is shortened

A company is developing a linear programming model for its aggregate production plan. If It = units in inventory at the end of period t, Pt = units produced in period t, and Dt = demand in period t, then the company's demand constraint to ensure that demand is met in quarter 4 is ________.

D4 = I3 - I4 + P4

Which of the following is not a characteristic of aggregate planning for services?

Demand for services is easy to predict

________ setups that can be performed in advance while the machine is running.

External

A bar graph displaying when activities are scheduled to start, when they will be finished, and where extra time is available is known as a ________.

Gantt chart

Which of the following is not used to calculate probabilistic time estimates?

Least likely

Which of the following is not a typical component of lead time?

Maintenance time

Which of the following statements is false?

Ordering costs equal shortage costs when replenishing inventory using the economic order quantity

A company is developing a linear programming model for its aggregate production plan. Each worker can produce 1500 units per quarter. If Wt = workforce size in period t and Pt = number of units produced in period t, then the production constraint for period 3 is ________.

P3 = 1500W3

Which of the following is not a type of predictable demand behavior?

Random variation

Which of the following is not a basic element of lean production?

Repetitive production

Which of the following statements concerning small-lot production is not true?

Small-lot production requires more capital investment

_______ is generally credited with the development of lean production

Taiichi Ohno

A company is developing a linear programming model for its aggregate production plan. If Wt = workforce size for period t, Ht = number of workers hired for period t, and Ft = number of workers fired for period t, then the company's workforce constraint for period 3 is ________.

W3 = W2 + H3 - F3

The ABC classification system is based upon the principle that ________.

a small percentage of items accounts for most of the inventory value

Mixed-model sequencing ________.

achieves uniform production levels

The ________ forecast method consists of an exponentially smoothed forecast with a trend adjustment factor added to it.

adjusted exponentially smoothed

The economic order quantity (EOQ model) assumes ________.

all costs are known and constant

Selecting the type of forecasting method to use depends on ________.

all of the above

The most effective aggregate planning strategy depends on ________.

all of the above (demand distribution, competitive position, firms cost structure)

Value stream mapping (VSM) is a tool for ________.

analyzing process flow

The difference between planned production and customer orders is known as ________.

available-to-promise

Yield management can be used to address all of the following problems except ________.

backorders

The ________ probability distribution is typically used to describe uncertain activity times in a project

beta

Adjusting available capacity by hiring and firing workers to match demand is an example of a(n) ________ strategy.

chase demand

Most inventory items in an ABC classification system are classified as ________.

class C

The process of breaking an aggregate plan into more detailed plans is referred to as ________.

collaborative planning

The longest path through a project network is referred to as the ________.

critical path

Regression forecasting methods relate ________ to other factors that cause demand behavior.

demand

Lean production is difficult to implement when ________.

demand is highly variable

A long-range forecast would normally not be used to ________.

determine production schedules

A standard procedure for numerically measuring a project's progress is referred to as a(n) ________.

earned value analysis

Independent demand items include ________.

final products

Problems associated with using a part-time workers strategy for adjusting capacity include all of the following except ________.

high retirement costs

The primary cost associated with the level production strategy is the cost of ________.

holding inventory

The authority given to the worker to stop the production line if quality problems are encountered is known as ________.

jidoka

In a pull production system a card that corresponds to a standard quantity of production is known as a(n) ________.

kanban

An exponential smoothing forecasting technique requires all of the following except ________.

large amounts of historical demand data

An optimizing technique originally developed for aggregate planning in the paint factory is the ________.

linear decision rule

A mathematical technique for forecasting that relates the dependent variable to an independent variable is _______

linear regression

Correlation is a measure of the strength of the ________.

linear relationship between a dependent and independent variable

The key elements of project control includes all the following except ________.

material management

A(n) ________ is a project team structure that includes members from different functional areas.

matrix organization

The purpose of safety stock is to ________.

minimize the probability of a stockout

Lower inventory levels make processes ________.

more dependent on each other while revealing bottlenecks more quickly

A forecast where the current period's demand is used as the next period's forecast is known as a ________.

naïve forecast

For an activity-on-node (AON) network ________.

nodes represent activities and arrows indicate precedence relationships

All of the following information is needed to calculate safety stock except ________.

order quantity

The economic order quantity (EOQ) model is used to determine the order size that minimizes ________.

ordering cost and carrying (holding) cost only

A ________ is a foolproof device that prevents defects from occurring.

poka-yoke

Forecast methods based on judgment, opinion, past experiences, or best guesses are known as ________ methods.

qualitative

Forecasts, like the models that produce them, are exactly right ________.

rarely, but often useful nevertheless

All of the following are benefits expected from implementing lean production except ________.

reduced capacity

In a pull system reducing the number of kanbans ________.

reduces inventory making problems more visible

In capacity planning, the feasibility of the sales and operations production plan is verified by a ________.

resource requirements plan

All of the following are inputs to the aggregate production planning process except ________.

sales plans

The ________ is a document that provides a common understanding, justification, and expected result for a project

scope statement

The pace at which production should take place to match the rate of customer demand is known as ________.

takt time

The closer the smoothing constant, α, is to 1.0, ________.

the greater the reaction to the most recent demand

In a periodic inventory system, ________.

the time between orders is constant

In project management the term slack refers to the amount of time ________.

to complete an activity without delaying the project

The mean absolute percentage deviation (MAPD) measures the absolute error as a percentage of ________.

total demand

Combining the practice of preventive maintenance with the concepts of total quality is known as ________.

total productive maintenance

The reorder point is expressed as ________ for the basic economic order quantity (EOQ) model.

units

Strategies for proactive demand management would not include ________.

using subcontracting to meet unexpected high demand levels

Analyzing process flow and eliminating waste is referred to as ________.

value stream mapping

A ________ breaks down a project into components, subcomponents, activities, and tasks

work breakdown structure (WBS)