OPERATIONS MANAGEMENT

Jones Company had sales of $100,000 last week. The company had forecasted that sales would be $120,000. Using exponential smoothing with a smoothing constant of 0.2, what is the forecast for this week's sales?

$116,000

Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months. The company's expected monthly demand is given in the following chart. The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month. Following is other critical data: Production cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month. What is the inventory carrying cost of a chase plan accomplished through hiring and firing?

$2,000

If the project is crashed so that all work can be completed in 45 hours, what is the total crash cost?

$1,150

Given the tasks, estimated durations, and crash costs shown below, if the benefit to crash the project by each day is a maximum of $750, how many days would it be worthwhile to crash the project?

1

Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months. The company's expected monthly demand is given in the following chart. The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month. Following is other critical data: Production cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month. What is the regular monthly actual production for a level plan?

1,250

Alpha Company sold 2,000 widgets yesterday. It had forecasted sales of 1,900 units. Using exponential smoothing with a smoothing constant of 0.6, what is the forecast for today's sales of widgets?

1,960

Given the project data below, what is the standard deviation of durations for path A, B, C?

1.4

An office manager forecasts demand for office stationery by exponential smoothing, with alpha = 0.4. Actual demand two weeks ago (i.e., the week before last) was 12 boxes, but the forecast for that period was only 10. Actual demand last week was 7. What was the forecast for last week?

10.8

Using the BOM, if 2 units of A are needed, how many used of K will be required? Assume that there is no on-hand inventory of any items.

104

Jude and Pat Strohsal have a crack in their water line and need to replace it. This will require digging up the water line, replacing it, filling the hole, leveling the soil, and reseeding the grass. The Strohsal's plumber suggests that, because they will have the water line dug up, they also should replace the foot valve. Below are the plumber's estimates of the time (in hours) necessary to perform each of the activities required. If the plumber and his crew begin working at 7:00 a.m., how much time is expected for them to take to finish the job? (Round your answer to 2 decimal places.)

12.47 ± 0.1 hours

End item A is made by assembling 2 parts of B and 4 parts of C. Part C is made from 3 parts of D and 2 parts of E. Gross requirements for end item A are 100 units. What is the net requirement for part C?

125 units

Given the tasks, estimated durations, and crash costs shown below, what is the total cost of the steps needed to provide the cheapest way to reduce the project length by three days?

$2,500

For Platinum Nugget Hotel in Las Vegas, Saturday is the best day of the week for business. The gambling take for the hotel on Saturdays over the past four weeks was: 1. $250,000 2. $190,000 3. $300,000 4. $280,000 Using a moving average with n = 3 terms, what would be the forecast for week 5?

$256,667

Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months. The company's expected monthly demand is given in the following chart. The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month. Following is other critical data: Production cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month. What is the total cost of a chase plan which uses only hiring/firing?

$257,000

Jones Company uses widgets as component parts. In a particular week it has gross requirements for 250 units of widgets, beginning inventory of 50 widgets, and scheduled receipts of 350 widgets. Available inventory for the next period is:

150.

Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months. The company's expected monthly demand is given in the following chart. The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month. Following is other critical data: Production cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month. What is the total cost of the level plan?

$260,700

For Platinum Nugget Hotel in Las Vegas, Saturday is the best day of the week for business. The gambling take for the hotel on Saturdays over the past four weeks was: 1. $250,000 2. $190,000 3. $300,000 4. $280,000 Platinum Nugget uses a three-period weighted moving average to forecast demand, with at = 0.6, at-1 = 0.3, and at-2 = 0.1. What is the forecast for week 5?

$277,000

Zanda Corporation is preparing an aggregate production plan for its product for the next four months. The company's expected monthly demand is given in the following chart. The company will have 100 units in inventory at the beginning of the month and wishes to maintain at least 100 units at the end of each month. Following is other critical data: Production cost per unit = $125 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $50 Firing cost per worker = $100 Beginning number of workers = 25 Each worker can produce 25 units per month. What is the total cost of a CHASE plan (using hiring/firing)?

$380,300

Zanda Corporation is preparing an aggregate production plan for its product for the next four months. The company's expected monthly demand is given in the following chart. The company will have 100 units in inventory at the beginning of the month and wishes to maintain at least 100 units at the end of each month. Following is other critical data: Production cost per unit = $125 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $50 Firing cost per worker = $100 Beginning number of workers = 25 Each worker can produce 25 units per month. The total inventory carrying cost of a chase plan is:

$4,000

Dave's Stove-Top Popcorn currently has three full-time employees who are each paid $1,500 per month. An employee can only work a maximum of 100 hours per month because production normally takes place at night. They do receive $1,500 even if they do not work 100 hours, however. Part-time employees can be hired at a cost of $25 per hour. Dave's Stove-Top Popcorn has forecasted that demand for the next six months will be as follows: What is the total cost if Dave hires one more full-time employee to meet additional demand?

$40,750

Dave's Stove-Top Popcorn currently has three full-time employees who are each paid $1,500 per month. An employee can only work a maximum of 100 hours per month because production normally takes place at night. They do receive $1,500 even if they do not work 100 hours, however. Part-time employees can be hired at a cost of $25 per hour. Dave's Stove-Top Popcorn has forecasted that demand for the next six months will be as follows: What is the total cost if Dave relies on part-time employees to meet additional demand?

$43,500

Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months. The company's expected monthly demand is given in the following chart. The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month. Following is other critical data: Production cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month. What is the total cost of hiring and firing the workers in a chase plan which uses only hiring and firing?

$5,000

Jones Corporation is preparing an aggregate production plan for washers for the next four quarters. The company's expected quarterly demand is given in the following chart. The company will have 1,000 washers in inventory at the beginning of the year and wishes to maintain at least that number at the end of each quarter. Following is other critical data: Production cost per unit = $250 Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory) Hiring cost per worker = $1,000 Firing cost per worker = $2,000 Beginning number of workers = 10 Each worker can produce 100 units per quarter. Any worker on the staff at the end of the year will not be fired at that time. Given this data, what is the total cost of a LEVEL plan?

$5,110,000

Jones Corporation is preparing an aggregate production plan for washers for the next four quarters. The company's expected quarterly demand is given in the following chart. The company will have 1,000 washers in inventory at the beginning of the year and wishes to maintain at least that number at the end of each quarter. Following is other critical data: Production cost per unit = $250 Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory) Hiring cost per worker = $1,000 Firing cost per worker = $2,000 Beginning number of workers = 10 Each worker can produce 100 units per quarter. Any worker on the staff at the end of the year will not be fired at that time. Given this data, what is the inventory carrying cost of a LEVEL plan?

$70,000

Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months. The company's expected monthly demand is given in the following chart. The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month. Following is other critical data: Production cost per unit = $50 Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300 Firing cost per worker = $200 Beginning number of workers = 16 Each worker can produce = 50 units per month. What is the total inventory carrying cost for the level plan?

$8,000

A company uses actual demand data to develop its seasonal indices. It has the data shown below for each quarter of the previous two years.

0.732

Jones Corporation is preparing an aggregate production plan for washers for the next four quarters. The company's expected quarterly demand is given in the following chart. The company will have 1,000 washers in inventory at the beginning of the year and wishes to maintain at least that number at the end of each quarter. Following is other critical data: Production cost per unit = $250 Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory) Hiring cost per worker = $1,000 Firing cost per worker = $2,000 Beginning number of workers = 10 Each worker can produce 100 units per quarter. Any worker on the staff at the end of the year will not be fired at that time. If Jones prefers a level plan, what will be the regular production rate per quarter?

5,000 units

Zanda Corp. has experienced demand in the last four years shown in the table below. What is the trend value (b) in the data (choose the closest answer)?

5.6 units/period

Using the data below, what is the MAPE?

5.99 percent

If a project path has an expected duration of 10 days and a standard deviation of 3 days, what is the probability that the path will be completed in 10 days or less?

50 percent

Annie is planning a large surprise party for her sister Gwendolyn. She has developed the plan below, including estimates of the time (in hours) and cost necessary to perform each of the activities required at the currently planned pace and at the crashed pace. Annie is most interested in reducing the time associated with plan menu. What is the crash cost per hour for that activity? (Round your answer to 2 decimal places.)

50.00 ± 0.01

Based on the information in the MPS, what is the amount that is available to promise in week 4?

500

Using a lot-for-lot rule, what is the MSP quantity for week 4?

500

Task X has a best-case duration of 4 days, a worst-case duration of 10 days, and a most likely duration of 6 days. Using this information, we can estimate a 50 percent probability that the task will be completed in no more than how many days?

6.3 days

Task X is expected to take 3 days to complete. The maximum (latest) earliest finish date for any predecessors to task X is 10. Therefore, the earliest finish for task X is:

7

Using the data below, the company has forecasted next year's demand to be 400. What is the seasonally adjusted forecast for Quarter 1 (choose the closest answer).

73

An MRP record for a motor is shown in the following table. What is the planned order release for week 4?

8,000

Using a lot-for-lot rule, what is the MPS quantity for period 1?

80

If a project path has an expected duration of 10 days and a standard deviation of 3 days, what is the probability that the path will be completed in 13 days or less?

84 percent

A simple sequential project (each task must be completed before the next one can begin) has the time estimates (in days) shown below: What is the expected total time for the path?

9.00 days

Annie is planning a large surprise party for her sister Gwendolyn. She has developed the following plan, including estimates of the time (in hours) and cost necessary to perform each of the tasks required. Annie will save $40 for every hour she can reduce from her plan. Annie has decided to crash her project and use the money she saves to purchase a larger gift for Gwendolyn. Which task should she crash first?

A

Annie will save $60 for every hour she can reduce from her plan. Annie has decided to crash her project and use the money she saves to purchase a larger gift for Gwendolyn. Which activity should she crash first?

A

If there is a desire to crash the project, which task should be crashed first?

A

Advanced planning and scheduling systems:

A and C Use logic similar to the logic found in MRP. Integrate materials and capacity planning into one system.

Which of the following is true concerning sales and operations planning?

A benefit of the process is that the firm should achieve high service levels with lower inventory.

The tracking signal will suggest to a manager that

A forecast mode's parameters may need adjustment.

A primary advantage of a functional project organizational structure is:

A functional manager controls both the budget and the schedule.

he network diagram below shows the five tasks required to complete a project and the associated times for those tasks. Which of the following identifies the critical path tasks?

A, B, E, F

As technology and cultures evolve, the best approach for operations managers is to:

Adapt their business models.

The following table shows capacity requirements data for making table tops. Which of the following is TRUE?

All of the excess demand in days 4 and 5 can be shifted to day 3.

Zanda Corp. and Jones Corp. are identical in every way (products produced, costs, demand, etc.) except for one. Zanda uses a level production plan while Jones prefers a chase production plan. Which of the following is most likely to be true? ...

All of the options are true.

What is a key factor that must be considered when an organization evaluates the potential of a project?

All of these.

Which of the following factors should be considered when one designs a forecasting process?

All of these.

A forecasting system that changes the value of the alpha parameter in response to the level of forecast error is known as:

An adaptive model.

If the cumulative lead time is 8 weeks, to be feasible the MPS planning horizon must be:

At least 8 weeks.

Which of the following are technological factors affecting the success of a project?

B & C Equipment, facilities, and communications systems. Organizational structure and reward systems.

The forward pass in a critical path algorithm involves:

Calculating the earliest possible start and finish times for each task.

Which of the following is NOT one of the costs considered in aggregate production planning?

Capital equipment cost.

A specific analysis of the total greenhouse gases caused directly or indirectly by a product is called:

Carbon footprinting.

Significant changes in an MPS quantity several weeks into the planning horizon can:

Cause inconsistencies in the MRP.

Project manager Bill Jones has determined that task R has a high variation between "best case" and "worst case" estimated durations. Task R is probably a good candidate for:

Close monitoring and frequent status reporting.

In recent years some companies have begun to work closely with their customers and/or suppliers by sharing information to develop demand plans and execute those plans. The procedure they are following is known as:

Collaborative planning, forecasting, and replenishment.

Which of the following statements about projects and project management is NOT true?

Completing a project within budget is the most critical criterion for project success.

Which of the following factors was most responsible for the breakdown of the Daimler-Benz/Chrysler merger?

Cultural incompatibility

Which of the following sustainability issues has a significant impact on supply chain relationships?

Culture

The longest lead time path in the BOM is the:

Cumulative lead time.

Annie has now crashed activity A by four hours at a cost of $130 and activity D by one hours at a cost of $50. What other activity could she crash to further profitably reduce the project?

D

Annie has now crashed activity A by four hours at a cost of $130. What other activity could she crash to further profitably reduce the project?

D

The network diagram below shows the five tasks required to complete a project and the associated times for those tasks. Which task has the greatest amount of slack?

D

The positioning and replenishment of finished goods inventories at the retail level can be determined using:

DRP.

Zanda Company is looking for a requirements planning system to help plan replenishment of its finished goods throughout its network of distribution centers. The type of system Zanda should consider is known as:

DRP.

Nearly all projects seem to go through the same phases and in the following sequence:

Definition, planning, execution, and completion

The primary difference between demand management and demand forecasting is:

Demand management is proactive, while forecasting attempts to predict.

What is the relationship between demand management and demand forecasting?

Demand management plans are usually an input to demand forecasting.

Downcycling, as described in the chapter, is a critical consideration during which stage of the product life cycle?

Disposal

Annie turns her attention to crashing another task in her project. If she wants to benefit even more, what is the next task to crash?

E

Software that consolidates all of the business planning systems and data throughout an organization is:

ERP.

Benefits of ERP systems include all of the following EXCEPT:

Easy implementation.

When people and profit intersect, from a sustainability perspective, which of the following areas is most impacted?

Equitability

Typically the resources required during a project's life are greatest in which stage of its life?

Execution

Suppose your firm is about to launch a radically new product. The type of demand forecasting system you would most likely use is:

Executive judgment.

A company has the data in the table below concerning its forecast performance over the past four time periods. Complete the table and compute the MAD.

20

What is the probability that the project shown in Exhibit 15S-5 will be completed within 8.5 days? (Choose the closest answer.)

20 percent

What is the available to promise for period 2?

20.

A company has the following information regarding its forecast performance in the past three periods. What is the mean absolute deviation (MAD)?

200

Assume that the forecast for the last period is FITt = 200 units, and recent experience suggests a likely sales increase of 10 units each period. Actual sales for the last period reached 230 units. Assuming a smoothing coefficient of α = 0.20 and a trend smoothing coefficient of β = 0.10, what is the BASE forecast for the next period?

206

The figure below shows the tasks required to complete a project and the expected duration for each task. How long should we expect it to take to complete this project?

21 weeks

Assume that the forecast for the last period is FITt = 200 units, and recent experience suggests a likely sales increase of 10 units each period. Actual sales for the last period reached 230 units. Assuming a smoothing coefficient of α = 0.20 and a trend smoothing coefficient of β = 0.10, what is the ADJUSTED forecast for the next period?

216.6

Assume that the forecast for the last period is FITt = 200 units, and recent experience suggests a likely sales increase of 10 units each period. Actual sales for the last period reached 230 units. Assuming a smoothing coefficient of α = 0.20 and a trend smoothing coefficient of β = 0.10, if demand in period t+1 turned out to be 220, what is the adjusted forecast for period t+2 (choose the closes answer)?

227.3

What is the duration of the fully crashed project?

23 hours

The network diagram below shows the five tasks required to complete a project and the associated times for those tasks. What is the earliest completion of the project diagrammed?

24 weeks

Colson Corp. has planned a simple project having four tasks. The task information for the project is shown below: What is the estimated completion time for the project?

25 days

End item A is made by assembling 2 parts of B and 4 parts of C. Part C is made from 3 parts of D and 2 parts of E. Gross requirements for end item A are 100 units. What is the gross requirement for part E?

250

Jude Strohsal can't bear to see her lawn all dug up so she has decided to visit her mother on the day the work is to be done. Jude wants to return home at 6:45 p.m. What is the probability the work will be complete when she arrives home? (Round your intermediate calculations and final answer to 2 decimal places.)

26.76 ± 0.5% probability

Over a six-month period, the demand for a product has been: June = 200, July = 210, August = 240, September = 240, October = 260, and November = 280. The three-month moving average forecast for December is

260.

Jones Corp. has noticed that sales of its product seem to be related to a variable it calls Gamma. It has developed the data shown below. Develop a simple linear regression from the data and tell Jones what the sales forecast will be if Jones expects Gamma to be 16 (round your forecast to the nearest number of whole units).

31

Using the data below and the regression model, what is the sales forecast if Gamma is expected to be 21? (Round your forecast to the nearest number of whole units.)

39

Using the data in the table below for Zanda, what is the linear regression forecast for period 5 (choose the nearest number of whole units)?

44

The following environmentally responsible process/material matrix was developed for Zanda Corp. Zanda has determined that a score of 40 is its goal at this time, but efforts to lower its score will continue regardless. What is Zanda's current score, and what is your conclusion?

47, Zanda is doing worse than its goal.

The following environmentally responsible process/material matrix was developed for Zanda Corp. Zanda has determined that a score of 50 is its goal at this time, but efforts to lower its score will continue regardless. What is Zanda's current score, and what is your conclusion?

47, but Zanda must do something about solid residue during extraction now.

The network diagram below shows the five tasks required to complete a project and the associated times for those tasks. What is the latest start date for task C?

5 weeks

The plumber has scheduled another small job at 6:00 p.m. If it takes 1/2 hour to drive from the Strohsals' to the other job, what is the probability the plumber will be able to make the 6:00 p.m. appointment on time? (Round your intermediate calculations and final answer to 2 decimal places.)

probability 4.46 ± 0.5%

The focus of an aggregate production plan, in general, is on all of the following EXCEPT:

Facilities and capital equipment rather than labor and inventory.

Which of the following programs/initiatives strives to improve the lives of suppliers and their families?

FairTrade

From an operations standpoint, sustainability means that:

Firms should pursue profit without damaging the environment or the well-being of future generations.

Joe Jones is a project manager on a major installation. He has been asked to provide weekly status reports on the project schedule. Joe should consider using which of the following:

Gantt chart

Which of the following is NOT a stakeholder, as considered from the P-People perspective of sustainability?

Government

A forecasting technique that seeks inputs from people who are in close contact with customers is known as:

Grassroots forecasting.

John Jones, senior VP for Zanda Corp., is looking at three alternative aggregate production plans for the next six-month period. At his company, demand varies by month with substantial month-to-month differences. The three alternatives are a "pure level plan," which keeps an absolutely constant workforce, a "pure chase plan" relying on hiring and layoffs, and a hybrid plan. He is most likely to find that the hybrid plan:

Has lower inventory carrying cost than the level plan and lower hiring/layoff cost than the chase plan.

In evaluating time-cost trade-offs, we start by crashing the task on the critical path that:

Has the lowest cost to reduce by one unit of time.

If a company strongly prefers that its aggregate output plan be closer to a level plan than a chase plan, this implies that it is concerned about minimizing:

Hiring and layoff costs.

In examining the data below, the manager exclaimed that he was very happy to see no bias in the forecasts. How would you respond to the manager?

I'm sorry, but there appears to be a very strong positive bias.

Which of the following environmental initiatives/programs deals most specifically with the firm's environmental management system?

ISO 14000

Walmart has announced that suppliers must attempt to improve their efforts in environmental management. In this announcement, Walmart could have included a requirement that suppliers meet the standards of:

ISO 14000.

If a make-to-stock manufacturing firm with highly seasonal demand follows a level production strategy, which of the following is likely to be true?

Inventory will fluctuate significantly during the year.

Which of the following statements most accurately represents the challenge of being environmentally sustainable?

It is not easy to be environmentally responsible since the choices facing management involve trade-offs.

Lean systems thinking in operations management can extend to sustainability in what way?

Its focus on reducing waste of all types.

Which of the following environmental initiatives/programs deals most specifically with building design and construction?

LEED certification

End item A is made by assembling 2 of part B and 3 of part C. Part C is made from 2 of component D and 2 of component E. Component D is considered to be a:

Level 2 input.

Which type of aggregate production plan is likely to have the LEAST negative impact on the local community and the workforce?

Level plan

Which of the following approaches provides management with an appropriate tool for assessing the full impact from "seed to sewer" (from creation to disposal)?

Life cycle analysis

A bill-of-materials file contains:

Lists of materials required to produce end item products.

The following table shows capacity requirements data for making Blodgetts. A load profile would show:

Load below capacity in periods 1 and 3.

Which of the following is an advantage of a chase production strategy (as compared to a level plan)?

Lower inventory investment.

The quantities of end items to be completed in each time period into the future is shown in a(n):

MPS.

The project organizational structure that provides the greatest balance between speed and efficiency is:

Matrix organizational structure.

How does aggregate planning for services differ from aggregate production planning for products?

Most service plans are based primarily on labor requirements.

Designing postponable products has the potential to allow operations managers to:

Move from build-to-stock to assemble or make-to-order operations.

Given the data below, the bias of these forecasts is:

Negative.

Which of the following is NOT included in the information about the inventory records file for an item?

Net requirements

John Jones, senior VP for Zanda Corp., is looking at three alternative aggregate production plans for the next six-month period. At his company, demand varies by month with substantial month-to-month differences. The three alternatives are a "pure level plan," which keeps an absolutely constant workforce, a "pure chase plan" relying on hiring and layoffs, and a hybrid plan. He is most likely to find that the pure level plan:

None of these.

Which of the following best describes organizational culture?

Organizational culture is critical to long-term success.

Over which stage of the product's life cycle does operations management have the greatest amount of direct control?

Packaging/transportation

The "triple bottom line" suggests that efforts should be devoted to assessing the impact of activities on:

People, planet, profit.

Which of the following is NOT a good reason to kill a project?

Personnel problems on the project.

Materials requirement planning (MRP) systems are used primarily to:

Plan materials.

Which of the following is NOT an input into the MRP?

Planned order release

A project manager usually has the greatest ability to affect social and technical success factors of a project in what stage of the project?

Planning

MRP is a process that would be most applicable in which situation?

Planning requirements for bicycle seats in a bicycle production plant.

How does product design affect forecasting accuracy?

Postponable product designs remove the need to forecast demand for final product configurations.

Why do businesses often NOT pursue the best mix of projects in their project portfolio?

Projects are selected based on criteria that are not always consistent with the business strategy.

Why does project management often involve the management of conflict?

Projects often compete with routine operations and other projects for resources and personnel and Projects are often staffed with personnel who may have greater allegiance to their functional managers than to the project managers.

Which of the following statements is true of projects?

Projects usually involve greater unknowns and uncertainty than repeated routine operations do.

Zanda Corp. has decided that it needs a project team to implement a new ERP system. It wants the system implemented as soon as possible. Given this criterion, Zanda should choose a:

Pure project structure.

You sir are one lazy person. Odds are after copying and pasting all these questions for your McGraw-Hill homework...you still won't understand.

READ THE BOOK! DONT LOOK FOR THE EASY WAY OUT!

Zanda Corp. has been testing the performance of two different forecasting models to see which it should adopt for use. It wants to choose the model that has the smaller standard deviation of the forecast errors. Zanda should compare which of the following to make its choice?

RMSE of the two models

Rough-cut capacity planning does all of the following EXCEPT:

Recalculates the MRP plan.

Which of the following environmental initiatives/programs is an example of an industry-specific program aimed at improving environmental performance?

Responsible Care

Each month the sales and operations team at Johnson Company meets to develop plans for each of the next six months. This process is known as:

Rolling planning horizons.

Generally speaking, the sales function and operations function differ in objectives. Which of the following is NOT one of those differences?

Sales prefers detailed forecasts for setting bonuses, operations prefers aggregate forecasts.

The demand for housing is characterized by a regular pattern of increasing to a peak, then falling. When the demand reaches a low point, it then repeats the pattern. This pattern usually takes place over a three- to five-year period. This is an example of which type of demand pattern?

Seasonality and cycles

Planning for which of the following products would see the LEAST benefit from the use of an MRP system?

Shampoo

"Crashing" in a project refers to:

Speeding up an activity.

Which of the following terms best describes the impact of sustainability initiatives on the business model?

Sustainability affects the entire business model.

Which of the following statements best describes the role of sustainability measurement and reporting in many of today's firms?

Sustainability reporting is becoming more important with more metrics being provided by different organizations.

Constant changing of the master schedule and the resulting changes in the requirements for components is referred to as:

System nervousness.

Decisions being made about the aggregate production plans represent what type of planning?

Tactical planning

Colson Corp. has planned a simple project having four tasks. The task information for the project is shown below: Does any task have slack? If so, how much?

Task C has 3 days of slack.

If a make-to-stock manufacturing firm with highly seasonal demand follows a chase demand strategy, which of the following is likely to be true?

The firm likely will have higher capital investment than if it followed a level plan.

Zanda Corp. has always operated within one country. It is contemplating opening production facilities in another country. Zanda should realize:

The means of motivating the workforce domestically may not work well in a different country.

Strategic demand planning would best be utilized:

To decide whether or not to close a manufacturing plant.

Which of the following phrases BEST defines the concept of sustainability, as set out by the United Nations Brundtland Commission:

To meet the needs of the present without compromising the ability of future generations to meet their needs.

Long-term/strategic demand planning is typically done using what units?

Total business unit sales

How much money did Annie save by crashing the project?

Total cost saved $130.00

Convex Computer Company makes many different forecasts. Which of the following forecasts is probably the least accurate?

Total number of laptops with 2 gigabyte RAM, 80 gigabyte hard drive, and 16 x DVD drive to be sold next year.

BMW has introduced a program of covered scheduled maintenance for its cars. That is, when you bring in your vehicle for maintenance at a BMW dealership, BMW will cover the costs of everything (except for worn-out tires). This practice specifically targets which stage of the product life cycle?

Usage

Consider the supply chain planning implementation project depicted in Figure 15S-1. Suppose that the client has offered a $9,200 bonus to us if we can complete the project five working days early. Crash Schedule for Planning System Installation Project Task Current Planned Duration Minimum Duration Crash Cost per Day *Select System Modules 9 6 $1,500 Prepare Data 5 4 $ 300 *Set System Protocols 3 1 $ 900 *Populate System Data 5 3 $ 1,100 Prepare Documentation 14 10 $ 700 Design Training Program 2 2 — Hold Training Sessions 1 1 — *Test System 6 3 $ 900 *Debug System 4 2 $ 1,300 *Pilot Test 3 2 $ 1,000 *Hold "Go Live" Meeting 1 1 — *Task is on the critical path Based upon the crash cost information provided in the above table, would you accept the client's proposal? By how many days could you profitably shorten the project?

Yes 8 days

You are sitting next to a person in business class on a flight from Los Angeles to Sydney, Australia. You mention to that person that you got your ticket two months ago for only $12,500. The person responds that she bought her ticket two days ago for $7,800. This sometimes happens because airlines often use an approach called:

Yield management.

Zanda Corp. and Jones Corp. are identical in every way (products produced, costs, demand, etc.) except for one. Zanda uses a level production plan while Jones prefers a chase production plan. Which of the following is most likely to be true?

Zanda will have higher inventory carrying costs.