Operations Concept Questions

In the newsvendor model, when the selling price of the product increases (while keeping others the same) a. the optimal order quantity increases b. expected loss sales increases c. expected sales decreases d. mean demand increases

a

Which of the following does not change when arrival schedule changes? a. process capacity b. WIP c. flow rate d. actual cycle time

a

Which chart can detect an unusual change in process average performance?

X-bar chart plots the sample mean, so it can monitor changes in average performance. The R-chart plots the sample range, so it monitors changes in the variance

In the newsvendor model, when the salvage value of the product increases(while keeping others the same) A. The optimal order quantity increases B. The expected loss sales increases C. The expected sales decreases D. The mean demand increases

A

If a company decides to institute a policy of no discounts or promotions, what is the effect of this policy on the supply chain? A. The bullwhip effect gets worse B. The bullwhip effect is lessened C. This policy change would not influence the bullwhip effect D. There is no way to know the effect on the supply chain

B

Which of the following is not a reason for carrying inventory? A. To maintain independence of operations B. To reduce the throughput and make the system less productive C. To meet variation in product demand D. To allow flexibility in production scheduling

B

The impact of the bullwhip effect on the supply chain is? A. Downstream demand for products increases when inventory levels in the supply chain are known to be high. B. Downstream demand for products decreases when inventory levels in the supply chain are known to be high. C. Upstream partners carry more inventory to protect themselves from increased variation in demand from downstream partners in an attempt to prevent stockouts. D. Upstream partners carry less inventory to protect themselves from increased variation in demand from upstream partners in an attempt to prevent stockouts

C

Which of the following cost is usually not considered in the EOQ model? A. Annual purchase cost B. Annual ordering cost C. Annual holding cost D. Annual shortage cost

D

Which of the following is NOT an assumption behind the EOQ model: A. Demand is constant and known B. Lead times are deterministic C. Ordering / set-up and holding costs are two different costs involved D. Backorders are allowed if the supply does not meet the demand

D

In the Beer Game, suppose you play the role of Wholesaler. If your "customer"orders16 kegs in the 2nd step, and you have 19 kegs in the warehouse and there are 10 kegs on backorder, then in the 3rd step, you deliver kegs to and the new backorder quantity will be kegs

Deliver 19 kegs to the retailer, new backorder is 7 kegs

which of the following statements is true?

Increased variability in the inter-arrival times can lead to increase queue length in a queuing system

Which of the following statements is true? a. the optimal order quantity increases with annual demand b. total ordering cost is equal to the total holding cost for any order quantity c. the higher the holding cost, the higher the economic order quantity

a

Which of the following is most likely to be a batch process? a. baking cookies b. car final assembly c. petroleum production d. surgery on patients

a car final assembly = assembly line petroleum production = continuous surgery on patients = job shop

The newsvendor model assumes that a. the demand is normally distributed b. leftover items can be sold at certain salvage value c. there could be multiple orders to satisfy 100% customer demand d. the demand is constant

b

Which of the following is the least likely to be a job shop process? a. luxury yacht production b. crude oil refinery c. surgery on patients d. wedding cake bakery

b

For a supply-constrained process, we can always claim that a. Every resource in this process has a utilization strictly below 100% b. The process throughput cannot be increased without increasing the demand c. The actual cycle time equals its designed cycle time d. Line balancing cannot increase the flow rate

c

In the newsvendor model, suppose the demand follows a normal distribution. When the standard deviation increases, which of the following will happen? a. optimal order quantity does not change b. mean demand increases c. expected sold units decreases d. expected lost sales decreases

c

What can be expected after line balancing is performed to a supply-constrained process? a. All stages will have higher utilization b. process utilization will increase c. cost of direct labor per unit will decrease d. there will be no bottleneck stage in the process

c

If the demand rate of a process is greater than the capacity A. The process is demand-constrained B. There will be no bottleneck stage in the process C. The number of jobs waiting to be processed will keep increasing D. Flow rate will be equal to the demand rate

c No sufficient capacity to fulfill demand, so more and more jobs need to wait for the resource. No steady long-time average.)

Which one of the following quantities cannot be altered by the Newsvendor order quantity? a. expected lost sales b. expected profit c. mean demand d. expected sales e. expected leftover inventory

c - mean demand is not affected by the ordering quantity

Which of the following is NOT a strategy to reduce average waiting time? a. serving the customer who requires the shortest service time first b. pooling multiple independent and identical server queues into a multi-server qeueu c. encouraging customers to arrive at the same time d. standardizing the work process and training the workers

c - more people arriving might increase the average waiting time

Which of the following does not belong to run-time parameters? a. flow rate b. actual cycle time c. process capacity d. WIP

c - process capacity belongs to design parameter and does not change when arrival schedule changes design parameters - process is operating as fast as it can (includes process capacity and designed CT) run time parameters - under a demand rate or customer arrival schedule - how fast is the process actual operating?

In the basic EOQ model, if the annual demand doubles, the effect on the optimal order quantity Q* is a. doubled b. half of its previous amount c. about 70% of its previous amount d. increased by about 40% e. none of the above

d

Which of the following affects the flow time? a. resource capacity b. demand rate c. job (customer) arrival scedule d. all the above

d

The process is _____-constrained when ____ exceeds ____ and the flow rate is equal to the demand rate

demand, supply, demand

Which of the following can affect WIP?

process capacity, demand rate, and flow time