OPER 3600 Exam 2 Test MC
A production line is to be designed for a job with four tasks. The task times are 2.4 minutes, 1.4 minutes, 0.9 minutes, and 1.7 minutes. After line balancing, the largest possible assigned cycle time is ________ minutes, and the smallest possible assigned cycle time is ________ minutes. A) 1.8; 1.4 B) 1.6; 0.9 C) 6.4; 2.4 D) 2.4; 0.9 E) 6.4; 0.9
C
A production line is to be designed for a product whose completion requires 21 minutes of work. The factory works 400 minutes per day. Can an assembly line with five workstations make 100 units per day? A) yes, with exactly 100 minutes to spare B) no, but four workstations would be sufficient C) no, it will fall short even with a perfectly balanced line D) yes, but the line's efficiency is very low E) cannot be determined from the information given
C
An assembly line consists of 158 tasks grouped into 32 workstations. The sum of all task times is 105 minutes. The largest assigned cycle time is 4 minutes. What is the efficiency of this line? A) 8 percent B) 21 percent C) 82 percent D) 100 percent E) 81 percent
C
An assembly line consists of 21 tasks grouped into 5 workstations. The sum of the 21 task times is 85 minutes. The largest assigned cycle time is 20 minutes. What is the efficiency of this line? A) 4.2 percent B) 17 percent C) 85 percent D) 100 percent E) 21 percent
C
For which of the following operations would a fixed-position layout be MOST appropriate? A) assembling automobiles B) producing TV sets C) constructing a highway tunnel D) refining of crude oil E) running an insurance agency
C
One of the major advantages of process-oriented layouts is: A) high equipment utilization. B) large work-in-process inventories. C) flexibility in equipment and labor assignment. D) smooth and continuous flow of work. E) small work-in-process inventories.
C
The assumptions necessary for a successful product-oriented layout include all EXCEPT which of the following? A) adequate volume for high equipment utilization B) standardized product C) volatile product demand D) adequately standardized supplies of raw materials and components E) All of the above are appropriate assumptions.
C
The major problem addressed by the warehouse layout strategy is: A) minimizing difficulties caused by material flow varying with each product. B) requiring frequent close contact between forklift drivers and item pickers. C) addressing trade-offs between space and material handling. D) balancing product flow from one work station to the next. E) locating the docks near a convenient access point to the closest highway
C
What is the primary reason why retailers tend to locate high-draw items around the periphery of the store? A) More shelf space for those popular items is available around the periphery. B) There will be less congestion of customers than there would be in the middle. C) This arrangement will help to maximize customer exposure to other items in the store. D) It is easier to put large advertisement signs on the outside walls right next to the items. E) This arrangement allows customers to travel through the store as quickly as possible.
C
Which of the following does NOT support the retail layout objective of maximizing customer exposure to products? A) Locate high-draw items around the periphery of the store. B) Use prominent locations for high-impulse and high-margin items. C) Maximize exposure to expensive items. D) Use end-aisle locations. E) Convey the store's mission with the careful positioning of the lead-off department.
C
Which of the following is NOT a heuristic rule for assigning tasks to workstations in a product layout? A) longest tasks first B) in order of most number of following tasks C) median tasks first D) shortest tasks first E) in accordance with positional weight
C
Which of the following is NOT one of the factors complicating the techniques for addressing the fixed-position layout? A) The volume of materials needed is dynamic. B) At different stages of a project, different materials are needed; therefore, different items become critical as the project develops. C) Takt times at workstations are dynamic. D) There is limited space at virtually all sites. E) All of the above are complicating factors.
C
Which one of the following is NOT common to repetitive and product-oriented layouts? A) a high rate of output B) specialized equipment C) ability to adjust to changes in demand D) low unit costs E) standardized products
C
Workspace can inspire informal and productive encounters if it balances what three physical and social aspects? A) proximity, privacy, and persuasion B) privacy, persuasion, and permission C) proximity, privacy, and permission D) proximity, persuasion, and permission E) proximity, persuasion, and passion
C
product focused processes
C. are processes that are specialized for relatively few products or customer groups
making environmentally sound products through efficient processes
C. can still be profitable
a system using an automated work cell controlled by electronic signals from a common centralized computer facility is called a
C. flexible manufacturing system
"operators simply loan new programs, as necessary, to product different products" describes
C. flexible manufacturing systems
a product-focused process is commonly used to product
C. high-volume, low-variety products
which of the following statements regarding ethical and environmentally friendly processes is true?
C. operations managers can be environmentally sensitive and still follow a low cost strategy
process X has fixed costs of $10,000 and variable costs of $2.40 perunit. process y has fixed costs of $9,000 and variable costs of $2.25 per unit. which of the following statements is true?
C. process Y is cheaper than process X at all volumes; there is no crossover point
3 types of processes are
C. process focus, repetitive focus, and product focus
which of the following transformations generally has the high equipment utilization?
C. product-focused process
an assembly line is an example of a
C. repetitive process
one fundamental difference b/t a process chart and a process map is that
C. the process chart is more like a table, while the process map is more like a schematic diagram
A process layout problem consists of 4 departments, each of which can be assigned to one of four rooms. The number of different solutions to this problem is ________, although all of them may not have different material handling costs. A) 1 B) 4 C) 16 D) 24 E) unknown
D
A special arrangement of machinery and equipment to focus on production of a single product or group of related products" describes what layout type? A) fixed-position layout B) intermittent production C) job shop D) work cell E) warehouse layout
D
Ambient conditions; spatial layout and functionality; and signs, symbols, and artifacts are all: A) indicators of imbalance on an assembly line. B) indicators that cross-docking has been successful. C) elements of customization in a warehouse layout. D) elements of servicescapes. E) elements of successful office layouts.
D
Because problems with fixed-position layouts are so difficult to solve well onsite, operations managers: A) virtually never employ this layout strategy. B) utilize this approach only for construction projects such as bridges and office towers. C) increase the size of the site. D) often complete as much of the project as possible offsite. E) utilize this layout only for defense contractors.
D
Cycle time is computed as: A) desired output divided by the daily operating time. B) daily operating time divided by the product of desired output and the sum of job times. C) the product of desired output and the sum of job times divided by daily operating time. D) daily operating time divided by the scheduled output. E) 1.00 minus station time.
D
Four hundred and eighty minutes of production time are available per day. The schedule calls for the production of 80 units per day. Each unit of the product requires 30 minutes of work. What is the theoretical minimum number of workstations? A) 2 B) 3 C) 4 D) 5 E) 6
D
In a product-oriented layout, what is the process of deciding how to assign tasks to workstations? A) station balancing B) process balancing C) task allocation D) assembly-line balancing E) work allocation
D
In assembly-line balancing, the theoretical minimum number of workstations is: A) the ratio of the sum of all task times to cycle time. B) always (when a fraction) rounded upward to the next larger integer value. C) not always possible to reach when tasks are actually assigned to stations. D) all of the above. E) none of the above.
D
The concept of customizing in a warehouse layout: A) is possible, but it causes serious loss of oversight of the quality function. B) cannot be considered seriously in today's high efficiency factories. C) is theoretically sound, but several years away in practice. D) incorporates value-added activities in warehouses. E) locates stock wherever there is an open location.
D
The fixed-position layout would be MOST appropriate in which of the following settings? A) a fast-food restaurant B) a doctor's office C) a casual dining restaurant D) a cruise ship assembly facility E) a washing machine assembly line
D
The major problem addressed by the process-oriented layout strategy is: A) the movement of material to the limited storage areas around the site. B) how to design a continuous flow process. C) the provision of low-cost storage with low-cost material handling. D) minimizing difficulties caused by material flow varying with each product. E) balancing product flow from one work station to the next.
D
The most common tactic followed in process-layout planning is to arrange departments or work centers so they: A) minimize the cost of skilled labor. B) maximize the machine utilization. C) are equally allocated within the available space. D) minimize the costs of material handling. E) produce a perfectly balanced assembly line.
D
Which of the following constitutes a major trend influencing office layouts? A) downsizing B) globalization C) environmental issues D) off-site employees E) health issues
D
Which of the following is NOT an information requirement for solving a load-distance problem to design a process layout? A) a list of departments or work centers B) a projection of work flows between the work centers C) the distance between locations D) a list of product cycle times E) the cost per unit of distance to move loads
D
Which of the following is TRUE regarding fabrication lines? A) They are the same thing as assembly lines. B) They are the same thing as focused factories. C) They are a special type of process-oriented layout. D) They are usually machine-paced as opposed to worker-paced. E) They require completely different line balancing techniques than do assembly lines.
D
Which of the following is a common heuristic for assembly line balancing? A) first come, first served B) least preceding tasks C) earliest due date first D) ranked positional weight E) most preceding tasks
D
which one of the following technologies is used only for material handling, not actual production or assembly?
D. AGVs
"automatic placement and withdrawal of parts and products into and from designated places in a warehouse" describes
D. ASRS
advances in tech
D. have had dramatic impact on customer interaction with services and with products
which of the following phrases best describes product focus?
D. high fixed costs, low variable costs
in mass service and professional service, the operations manager should focus on
D. human resources
the crossover point is that production quantity where
D. total costs for one process = total costs for another process
harley davidson
D. uses work cells to feed its assembly line
A good layout requires determining: A) material handling equipment. B) capacity and space requirements. C) environment and aesthetics. D) cost of moving between various work areas. E) all of the above
E
Balancing low-cost storage with low-cost material handling is important in which of the following? A) fixed-position layout B) process-oriented layout C) office layout D) repetitive and product-oriented layout E) warehouse layout
E
If a layout problem is solved by use of heuristics, this means that: A) there is no other way to solve the problem. B) no computer software is available. C) the problem has only a few alternatives to evaluate. D) no optimum solution exists. E) a satisfactory, but not necessarily optimal, solution is acceptable.
E
Retail layouts are based on the notion that: A) handling costs should be minimized. B) storage costs should be minimized. C) average customer visit duration should be maximized. D) space used should be minimized. E) maximizing customer exposure rate maximizes sales and profit.
E
Slotting fees: A) are charged by retailers to stock a product. B) can amount to as much as $25,000. C) are not a part of Walmart's business practices. D) can reduce the ability of small businesses to introduce new products. E) all of the above
E
The ________ layout's main objective is to equalize the task time for each station. A) work cell B) fixed position C) office D) job shop E) product oriented
E
The central problem in product-oriented layout planning is: A) minimizing material handling within workstations. B) minimizing labor movement between workstations. C) equalizing the space allocated to the different workstations. D) maximizing equipment utilization. E) minimizing the imbalance in the workloads among workstations.
E
The disadvantages of process-oriented layout come from: A) the use of special purpose equipment. B) machine maintenance, which tends to seriously degrade the capacity of the entire system. C) the use of specialized material handling equipment. D) the need for stable demand. E) the flexibility of general-purpose equipment.
E
The main goal of retail layout is: A) minimizing material handling cost. B) minimizing customer confusion regarding location of items. C) minimizing storage costs. D) minimizing space required. E) maximizing profitability per square foot of floor space.
E
What layout strategy deals with low-volume, high-variety production? A) fixed-position layout B) retail layout C) warehouse layout D) office layout E) process-oriented layout
E
Which of the following is NOT a retail layout practice? A) Locate the high-draw items around the periphery of the store. B) Distribute power items throughout the store. C) Use end-aisle locations to maximize product exposure. D) Use prominent locations for high-impulse and high-margin items. E) All of the above are retail layout practices.
E
Which of the following is TRUE of random stocking? A) Because items are stocked randomly, accurate inventory records are not necessary. B) Its results always minimize handling costs. C) Products have their own permanent storage spot. D) Each pick can be of only one product. E) None of the above is true.
E
Which of the following is a disadvantage of product-oriented layout? A) There is a lack of flexibility necessary for handling a variety of products. B) High volume is required because of the large investment needed to establish the process. C) Work stoppage at any one point can tie up the whole operation. D) There is a lack of flexibility necessary for handling a variety of production rates. E) All of the above are disadvantages of product-oriented layouts.
E
Which of the following is one of the main advantages of a product-oriented layout? A) high customer exposure rates B) employability of highly skilled labor C) high flexibility D) low capital cost E) low variable cost per unit
E
Which of the following reduces product handling, inventory, and facility costs, but requires both (1) tight scheduling and (2) accurate inbound product information? A) phantom-docking B) random stocking C) ASRS D) customizing E) cross-docking
E
which of the following is true regarding opportunities to improve service processes?
E none of the above is true
which of the following industries is likely to have low equipment utilization?
E. restaurants
A fabrication line and an assembly line are both types of repetitive and product-focused layout, but only the fabrication line utilizes workstations True or False?
FALSE
A focused work center is well suited to the production of a large family of products requiring similar processing, even if their demands are not very stable. True or False?
FALSE
A product requires 24 separate tasks, and the sum of those task times is 14 minutes. If the cycle time is 2 minutes, then at least 12 workstations will be needed. True or False?
FALSE
Heuristics are problem-solving procedures that mathematically optimize the solution True or False?
FALSE
Process-oriented layouts typically have low levels of work-in-process inventory. True or False?
FALSE
Product-oriented layouts tend to have high levels of work-in-process inventories True or False?
FALSE
The biggest advantage of a product layout is its flexibility to handle a varied product mix. True or False?
FALSE
The dominant problem associated with the fixed-position layout is that workers are fixed in position, and they cannot be reassigned. True or False?
FALSE
The minimum number of workstations depends upon the set of task times and the precedence chart, but not the number of units scheduled. True or False?
FALSE
The work cell layout, a special arrangement of machinery and personnel to focus on the production of a single product or group of related products, is for manufacturing applications and has no relevance to services. True or False?
FALSE
Utilization of the total "cube" is the dominant consideration in office layout. True or False?
FALSE
True or false? ABC analysis classifies inventoried items into three groups, usually based on annual units or quantities used.
False
True or false? ABC analysis is based on the presumption that carefully controlling all items is necessary to produce important inventory savings.
False
True or false? According to the global company profile, Amazon.com's advantage in inventory management comes from its almost fanatical use of economic order quantity and safety stock calculations.
False
True or false? At the economic order quantity, holding costs are equal to purchasing costs.
False
True or false? Cycle counting is an inventory control technique exclusively used for cyclical items.
False
True or false? In the quantity discount model, the cost of acquiring goods (product cost) is not a factor in determining lot size.
False
True or false? In the simple EOQ model, if annual demand were to increase, the EOQ would increase proportionately.
False
True or false? In the simple EOQ model, if the carrying cost were to double, the EOQ would also double.
False
True or false? Insurance and taxes on inventory are part of the costs known as setup or ordering costs.
False
True or false? Safety stock in inventory systems depends only on the average demand during the lead time.
False
True or false? The EOQ model is best suited for items whose demand is dependent on other products.
False
True or false? Which item to order and with which supplier the order should be placed are the two fundamental issues in inventory management.
False
True or false? Work-in-process inventory is devoted to maintenance, repair, and operations.
False
A process-oriented layout is the traditional way to support a product differentiation strategy. True or False?
TRUE
Category management is the use of computer software to evaluate the profitability of various merchandising plans for hundreds of categories. True or False?
TRUE
Cross-docking processes items as they are received, rather than placing them in storage. True or False?
TRUE
Cycle time is the maximum time that the product is allowed at each workstation. True or False?
TRUE
If the schedule calls for the production of 120 units per day and 480 minutes of production time are available per day, the cycle time would be 4 minutes. True or False?
TRUE
Job lots are groups or batches of parts processed together. True or False?
TRUE
One drawback of a product-oriented layout is that work stoppage at any one point ties up the whole operation. True or False?
TRUE
One guideline for a retail layout is to locate high-draw items around the periphery of the store. True or False?
TRUE
One guideline for determining the arrangement and space allocation of a retail store is to place high-impulse and high-margin items in prominent locations. True or False?
TRUE
Servicescape refers to the physical surrounding in which the service is delivered. True or False?
TRUE
The layout approach that addresses trade-offs between space and material handling is called the fixed-position layout. True or False?
TRUE
The most common tactic to arrange departments in a process-oriented layout is to minimize material handling costs. True or False?
TRUE
The objective of layout strategy is to develop an effective and efficient layout that will meet the firm's competitive requirements. True or False?
TRUE
The work cell improves layouts by reducing both floor space and direct labor cost. True or False?
TRUE
True or false? A major challenge in inventory management is to maintain a balance between inventory investment and customer service.
True
True or false? If setup costs are reduced by substantial reductions in setup time, the production order quantity is also reduced.
True
True or false? In ABC analysis, "A" Items are the most tightly controlled.
True
True or false? In cycle counting, the frequency of item counting and stock verification usually varies from item to item depending upon the item's classification.
True
True or false? In the production order quantity (POQ) model, inventory does not arrive in a single moment but flows in at a steady rate, resulting in a larger lot size than in an otherwise identical EOQ problem.
True
True or false? In the quantity discount model, it is possible to have a cost-minimizing solution where annual ordering costs do not equal annual carrying costs.
True
True or false? One advantage of cycle counting is that it maintains accurate inventory records.
True
True or false? One function of inventory management is to take advantage of quantity discounts.
True
True or false? Retail inventory that is unaccounted for between receipt and time of sale is known as shrinkage.
True
True or false? Service level is the complement of the probability of a stockout.
True
True or false? The demand for automobiles would be considered an independent demand.
True
True or false? The fixed-period inventory model can have a stockout during the review period as well as during the reorder period, which is why fixed-period models require more safety stock than fixed-quantity models.
True
True or false? The reorder point is the inventory level at which action is taken to replenish the stocked item.
True
True or false? Units of safety stock are additions to the reorder point that allow for variability in the rate of demand, the length of lead time, or both.
True
The fixed-period inventory model requires more safety stock than the fixed-quantity models because
a stockout can occur during the review period as well as during the lead time
computer-integrated manufacturing (CIM) includes manufacturing systems that have
a. computer-aided design, a flexible manufacturing system, inventory control, warehousing and shipping integrated
a drawing of the movement of material, product, or people is a
a. flow diagram
If demand is not uniform and constant, then stockout risks can be controlled by
adding safety stock
Among the advantages of cycle counting is that it
allows more rapid identification of errors and consequent remedial action than is possible with annual physical inventory
ABC analysis divides on-hand inventory into three classes, generally based upon
annual dollar volume
which of the following products is likely to be assembled on a repetitive process line?
automobiles, pcs, dishwashers, tv sets e. all of the above
An inventory decision rule states "when the inventory level goes down to 14 gearboxes, 100 gearboxes will be ordered." Which of the following statements is true? a. One hundred is the reorder point, and 14 is the order quantity. b. Fourteen is the reorder point, and 100 is the order quantity. c. The number 100 is a function of demand during lead time. d. Fourteen is the safety stock, and 100 is the reorder point. e. None of the above is true.
b. Fourteen is the reorder point, and 100 is the order quantity.
Which of the following statements regarding the production order quantity model is TRUE? a. It applies only to items produced in the firm's own production departments. b. It relaxes the assumption that all the order quantity is received at one time. c. It relaxes the assumption that the demand rate is constant. d. It minimizes the total production costs. e. It minimizes inventory.
b. It relaxes the assumption that all the order quantity is received at one time.
For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model was 200 units and the total annual inventory (carrying and setup) cost was $600. The inventory carrying cost per unit per year for this item is
$3.00
A product has demand of 4000 units per year. Ordering cost is $20 and holding cost is $4 per unit per year. The EOQ model is appropriate. The cost-minimizing solution for this product will cost _______ per year in total annual inventory costs.
$800
A certain type of computer costs $1,000, and the annual holding cost is 25%. Annual demand is 10,000 units, and the order cost is $150 per order. What is the approximate economic order quantity?
110
If daily demand is normally distributed with a mean of 15 and standard deviation of 5, and lead time is constant at 4 days, 90 percent service level will require safety stock of approximately
13 units
In the basic EOQ model, if D=6000 per year, S=$100, H=$5 per unit per month, the economic order quantity is approximately
141
In a safety stock problem where both demand and lead time are variable, demand averages 150 units per day with a daily standard deviation of 16, and lead time averages 5 days with a standard deviation of 1 day. The standard deviation of demand during lead time is approximately
154 units
The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. The production order quantity for this problem is approximately
184
A production order quantity problem has daily demand rate=10 and daily production rate=50. The production order quantity for this problem is approximately 612 units. The average inventory for this problem is approximately
245
A specific product has demand during lead time of 100 units, with a standard deviation of 25 units. What safety stock (approximately) provides a 95% service level?
41
If daily demand is constant at 10 units per day, and lead time averages 12 days with a standard deviation of 3 days, 95 percent service requires a safety stock of approximately
49 units
A big advantage of a process-oriented layout is: A) its flexibility in equipment and labor assignments. B) its low cost. C) the simplified scheduling problem presented by this layout strategy. D) the ability to employ low-skilled labor. E) its high equipment utilization.
A
ASRS stands for which of the following? A) automated storage and retrieval system B) automated storage and recovery system C) automated scan and recognize system D) automated scan and retail system E) automated scan and retrieval system
A
Cross-docking means which of the following? A) Avoid placing materials or supplies in storage by processing them as they are received. B) The same docks can be used either incoming or outbound shipments. C) The same dock is used to unload and then reload the same truck. D) Warehouse docks are designed in the shape of a cross. E) Docks are placed in the warehouse according to the direction (north, south, east, or west) from which the truck is arriving.
A
Four hundred and eighty minutes of production time are available per day. Scheduled production is 120 units per day. What is the required cycle time? A) 4 minutes B) 5 minutes C) 6 minutes D) 7 minutes E) 8 minutes
A
In the office relationship chart, which rating reflects the highest importance for two departments' closeness to each other? A) A B) E C) I D) O E) X
A
Mathematically, takt time is: A) total work time available divided by units required. B) units required divided by workers required. C) a fictional time increment similar to a therblig. D) workers required divided by total operation time required. E) units required divided by total work time available.
A
Solving a load-distance problem for a process-oriented layout requires that: A) the difficulty of movement be the same for all possible paths. B) pickup and setdown costs vary from department to department. C) the cost to move a load be the same for all possible paths. D) takt time be less than 1. E) Proplanner software examines all possible department configurations
A
Which of the following is NOT one of McDonald's "seven major innovations"? A) the Happy Meal B) drive-through windows C) breakfast menus D) play areas E) self-service kiosks
A
Which of the statements below best describes office layout? A) positions workers, their equipment, and spaces/offices to provide for movement of information B) addresses the layout requirements of large, bulky projects such as ships and buildings C) seeks the best personnel and machine utilization in repetitive or continuous production D) allocates shelf space and responds to customer behavior E) deals with low-volume, high-variety production
A
Which type of layout features departments or other functional groupings in which similar activities are performed? A) process-oriented B) product-oriented C) fixed-position D) mass production E) unit production
A
process A has fixed costs of $1000 and variable costs of $5 per unit. process B has fixed costs of $500 and variable costs of $15 per unit. the crossover point b/t A and B is
A. 50 units
examples of the impact of tech on services include all but which of the following?
A. credit cards
which of the following phrases best describes process focus?
A. low volume, high variety
the use of info tech. to monitor and control a physical process is known as
A. process control
strategies for improving productivity in services are
A. separation, self-service, automation, and scheduling
A product-oriented layout would be MOST appropriate for which one of the following businesses? A) fast food B) steel making C) insurance sales D) clothing alterations E) a grocery store
B
A production line is to be designed to make 500 El-More dolls per day. Each doll requires 11 activities totaling 16 minutes of work. The factory operates 750 minutes per day. What is the required cycle time for this assembly line? A) 0.5 minutes B) 1.5 minutes C) 2 minutes D) 5,500 minutes E) 4.26 minutes
B
Balancing a work cell is done: A) before the work cell equipment is sequenced. B) as part of the process of building an efficient work cell. C) before takt time is calculated. D) so that each assembly line workstation has exactly the same amount of work. E) to minimize the total movement in a process layout.
B
Deloitte & Touche solved the empty desk problem by: A) assigning permanent desks. B) implementing a "hoteling" program. C) creating open offices. D) no longer allowing employees to work from home. E) reducing the number of allowable sick days per employee.
B
In assembly-line balancing, cycle time (the ratio of available production time to scheduled production) is the: A) minimum time that a product is allowed at each workstation. B) maximum time that a product is allowed at each workstation. C) inverse of the minimum number of workstations needed. D) sum of all the task times divided by the maximum number of workstations. E) equivalent of the maximum task time among all tasks.
B
The main issue in designing process-oriented layouts concerns the relative positioning of: A) safety devices. B) departments or work centers. C) raw materials. D) entrances, loading docks, etc. E) supervisors to their employees.
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.
B
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.
B
Which of the following is NOT an advantage of work cells? A) reduced direct labor cost B) decreased equipment and machinery utilization C) heightened sense of employee participation D) reduced raw material and finished goods inventory E) reduced investment in machinery and equipment
B
Which of the following is NOT one of the requirements of cellular production? A) testing (poka-yoke) at each station in the cell B) adequate volume for high equipment utilization C) a high level of training, flexibility, and empowerment of employees D) being self-contained, with its own equipment and resources E) identification of families of products, often through the use of group technology codes or equivalents
B
which of following statements regarding Dell computers is false?
B. Dell builds its computers overseas in order to gain a low-cost advantage
standard register
B. groups people and machines into departments that perform specific activities
which of the following best describes repetitive focus?
B. its output is a standardized product produced form modules
which of the following products is most likely made in a job shop environment?
B. paper forms
which of the following is false regarding repetitive processes?
B. they allow easy switching from one product to the other
A hospital's layout most closely resembles which of the following? A) product oriented B) work cell C) job shop D) project E) retail
C
Which of the following statements regarding Amazon.com is FALSE? a. The company was opened by Jeff Bezos in 1995. b. The company was founded as, and still is, a "virtual retailer" with no inventory. c. The company is now a world-class leader in warehouse management and automation. d. The company uses both United Parcel Service and the U.S. Postal Service as shippers. e. Amazon obtains its competitive advantage through inventory management.
b. The company was founded as, and still is, a "virtual retailer" with no inventory.
which of the following statements regarding automated guided vehicles is false?
b. they are used to move workers from one side of the plant to the other
Which of the following statements regarding control of service inventories is TRUE? a. Service inventory is a fictional concept, because services are intangible. b. Service inventory needs no safety stock, because there's no such thing as a service stockout. c. Effective control of all goods leaving the facility is one applicable technique. d. Service inventory has carrying costs but not setup costs. e. All of the above are true.
c. Effective control of all goods leaving the facility is one applicable technique.
If the standard deviation of demand is six per week, demand is 50 per week, and the desired service level is 95%, approximately what is the statistical safety stock?
cannot be determined without lead time data
The purpose of safety stock is to
control the likelihood of a stockout due to the variability of demand during lead time
Which of the following statements about ABC analysis is FALSE? a. ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings. b. In ABC analysis, "A" Items are tightly controlled, have accurate records, and receive regular review by major decision makers. c. In ABC analysis, "C" Items have minimal records, periodic review, and simple controls. d. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings. e. All of the above statements are true.
d. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.
Which of these statements about the production order quantity model is FALSE? a. The production order quantity model is appropriate when the assumptions of the basic EOQ model are met, except that receipt is non instantaneous. b. Because receipt is non instantaneous, some units are used immediately, not stored in inventory. c. Average inventory is less than one-half of the production order quantity. d. All else equal, the smaller the ratio of demand rate to production rate, the larger is the production order quantity. e. None of the above is false.
d. All else equal, the smaller the ratio of demand rate to production rate, the larger the production order quantity.
Which of the following statements about the basic EOQ model is FALSE? a. If the setup cost were to decrease, the EOQ would fall. b. If annual demand were to increase, the EOQ would increase. c. If the ordering cost were to increase, the EOQ would rise. d. If annual demand were to double, the EOQ would also double. e. All of the above statements are true.
d. If annual demand were to double, the EOQ would also double.
Which of the following is NOT an assumption of the economic order quantity model shown below? a. Demand is known, constant, and independent. b. Lead time is known and constant. c. Quantity discounts are not possible. d. Production and use can occur simultaneously. e. The only variable costs are setup cost and holding (or carrying) cost.
d. Production and use can occur simultaneously.
Which of the following statements about quantity discounts is FALSE? a. The cost-minimizing solution may or may not be where annual holding costs equal annual ordering costs. b. In inventory management, item cost becomes relevant to inventory decisions only when a quantity discount is available. c. If carrying costs are expressed as a percentage of value, EOQ is larger at each lower price in the discount schedule. d. The larger annual demand, the less attractive a discount schedule will be. e. The smaller the ordering cost, the less attractive a discount schedule will be.
d. The larger annual demand, the less attractive a discount schedule will be.
utilization in proces-oriented facilities is frequently low bc
d. excess capacity for peak demands is desirable
service blueprinting
d. focuses on the provider's interaction with the customer
a job shop is an example of a
d. intermittent process
All of the following statements about ABC analysis are true EXCEPT a. inventory may be categorized by measures other than dollar volume b. it categorizes on-hand inventory into three groups based on annual dollar volume c. it is an application of the Pareto principle d. it states that all items require the same degree of control e. it states that there are the critical few and the trivial many inventory items
d. it states that all items require the same degree of control
Which of the following is NOT one of the four main types of inventory? a. raw material inventory b. work-in-process inventory c. maintenance/repair/operating supply inventory d. safety stock inventory e. All of these are main types of inventory.
d. safety stock inventory
Which of the following would NOT generally be a motive for a firm to hold inventories? a. to decouple or separate parts of the production process b. to provide a stock of goods that will provide a selection for customers c. to take advantage of quantity discounts d. to minimize holding costs e. All of the above are functions of inventory.
d. to minimize holding costs
The primary purpose of the basic economic order quantity model shown below is a. to calculate the reorder point, so that replenishments take place at the proper time b. to minimize the sum of carrying cost and holding cost c. to maximize the customer service level d. to minimize the sum of setup cost and holding cost e. to calculate the optimum safety stock
d. to minimize the sum of setup cost and holding cost
Which of the following are elements of inventory holding costs? a. housing costs b. material handling costs c. investment costs d. pilferage, scrap, and obsolescence e. All of the above are elements of inventory holding cost.
e. All of the above are elements of inventory holding cost.
Which of the following is a function of inventory? a. to decouple or separate parts of the production process b. to decouple the firm from fluctuations in demand and provide a stock of goods that will provide a selection for customers c. to take advantage of quantity discounts d. to hedge against inflation e. All of the above are functions of inventory.
e. All of the above are functions of inventory.
Which of the following statements regarding the reorder point is TRUE? a. The reorder point is that quantity that triggers an action to restock an item. b. There is a reorder point even if lead time and demand during lead time are constant. c. The reorder point is larger than d x L if safety stock is present. d. The fixed-period model has no reorder point. e. All of the above are true.
e. All of the above are true.
Which of the following statements about the basic EOQ model is TRUE? a. If the ordering cost were to double, the EOQ would rise. b. If the annual demand were to double, the EOQ would increase. c. If the carrying cost were to increase, the EOQ would fall. d. If annual demand were to double, the number of orders per year would increase. e. All of the above statements are true.
e. All of the above statements are true.
in mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except
e. customization
ethical and environmentall friendly processes include which of teh following?
emission controls, recycling, efficient use of resources, reduction of waste by-products, e. all of the above
a process map with the addition of a time axis becomes a process chart
false
an example of postponement strategy for improving service productivity is having the customer wait until you have sufficient time to serve the customer
false
dell's approach to personal computer manufacturing is to use a product focus, which gives the company its low-cost competitive advantage
false
harley davidson, because it has so many possible combination of products, utilizes the process strategy of mass customization
false
process maps use distance, but not time, to show the movement of material, product, or people through a process
false
production technology has had a major impact on services, but as yet there has been little reduction in service labor requirements
false
professional services typically require low levels of labor intensity
false
successful process redesign focuses on departmental areas where small, continuous improvements can be made
false
the typical full-service restaurant uses a product-focused process
false
value stream mapping is the analysis of where value is added in the production process within a facility
false
a quasi-custom product
gets its apparent customization from the combinations available from a small number of modules, is often the output of repetitive focus facilities, is a valid description of a fast food sandwich e. all but d are true
The EOQ model with quantity discounts attempts to determine
how many units should be ordered
In the basic EOQ model, if the cost of placing an order doubles, and all other values remain constant, the EOQ will
increase by about 41%
A product whose EOQ is 400 experiences a 50% increase in demand. The new EOQ is
increased by less than 50%
when done correctly, mass customization
increases pressure on supply chain perforamnce, helps elimate the guesswork that comes with sales forecasting, drives down inventories, increases pressure on scheduing E. all of the above
value stream mapping
is a variation on time function mapping, examines the supply chain to determine where value is added, extends time function mapping back to the supplier, starts with the customer and works backwards E. all of the above are true
If the actual order quantity is the economic order quantity in a problem that meets the assumption of the economic order quantity model shown below, the average amount of inventory on hand
is one-half of the economic order quantity
process redesign
is the fundamental rethinking of business processes, can focus on any process, tries to bring about dramatic improvements in performance, focuses on acitivities that cross functional lines E. all of the above
which of the following is true regarding the concept of flexibility?
it is the ability to change production rates with little penalty in time, cost, or customer value; it can be accomplished with sophisticated electronic equip; it may involve modular, movable, and even cheap equip d. all of the above are true
When quantity discounts are allowed, the cost-minimizing order quantity
minimizes the sum of holding, ordering, and product costs
Demand for dishwasher water pumps is 8 per day. The standard deviation of demand is 3 per day, and the order lead time is four days. The service level is 95%. What should the reorder point be?
more than 40
flexibility can be achieved with
movable equip, inexpensive equip., sophisticated electronic equip, modular equip e. all of the above
A product whose EOQ is 40 experiences a decrease in ordering cost from $90 per order to $10. The revised EOQ is
one-third as large
Which category of inventory holding costs is much higher than average for rapid-change industries such as PCs and cell phones?
pilferage, scrap, and obsolescence
Cycle counting
provides a measure of inventory accuracy
The proper quantity of safety stock is typically determined by
setting the level of safety stock so that a given stockout risk is not exceeded
A disadvantage of the fixed-period inventory system is that
since there is no count of inventory during the review period, a stockout is possible
ABC analysis is based on the principle that
there are usually a few critical items, and many items which are less critical
An advantage of the fixed-period inventory system is that
there is no physical count of inventory items when an item is withdrawn
which of the following is true regarding vision systems?
they are consistently accurate, they are modest in cost, they do not become bored d. all of the above are ture
which of the following are typical process control systems?
they have snesors, the digitized data are analyzed by computer which generates feedback, their sensors take measurements ona periodic basis, the sensors' measurements are digitized e. all of the above
The two most basic inventory questions answered by the typical inventory model are
timing and quantity of orders
Most inventory models attempt to minimize
total inventory based costs
a firm's process strategy is its approach to transforming resources into goods and services
true
automated storage and retrieval systems are commonly used in distribution facilities of retailers
true
flexibility is important in reptitive focus plants and product focus plants
true
flexible manufacturing systems, because of easily changed control programs, are able to perform such tasks as manufacturing one of a kind parts economically
true
in process-focused facilities, equipment utilization is low
true
in selecting new equipment and technology, decision-makers look for flexibility- the ability to respond with little penalty in time, cost, or customer value
true
intermittent processes are organized around processes
true
one essential ingredient of mass customization is modular design
true
one use of camera-and-computer-based vision systems is to replace humans doing tedious and error-prone visual inspection activities
true
optical checkout scanners and ATMs are examples of technology's impact on services
true
process control is the use of info technology to monitor and control a physical process
true
processes can be environmentally friendly and socially responsible while still contributing to profitable strategies
true
service blueprinting is a process analysis technique that focuses on the customer and the provider's interaction with the customer
true
the assembly line is a classic example of a repetitive process
true
the term 'focused processes' refers to the quest for increased efficiency, whether in goods or services, that results from specialization
true
the tool that calculates which process has the lowest cost at any specified production volume is a crossover chart
true
time-function mapping is a flow diagram with time added to the horizontal axis
true
an organization's process strategy
will have long-run impact on efficiency and flexibility of production, is the same as its transformation strategy, must meet various constraints including cost, is concerned with how resources are transformed into goods and services e. all of the above are true
