Operations Management (Multiple Choice)
FMS attempts to (choose the best answer): a. create the flexibility of a job shop environment. b. achieve the low cost of a mass production environment. c. achieve low cost while improving flexibility. d. utilize the job shop planning cycle while utilizing the mass production time horizon.
create the flexibility of a job shop environment.
Which of the following are related to the ABC inventory control principle? I. Allocate control resources to the high dollar volume items. II. Order slow moving items less frequently. III. Typically 80% of the annual dollar volume of inventory exists in 20% of the items. IV. Order the high dollar volume items more frequently. a. I and II only. b. II and III only. c. III and IV only d. I, II, III, and IV
d. I, II, III, and IV
Changing an alpha value in single exponential smoothing from .2 to .5 would make: a. forecasts more dependent on most recent actual b. no difference. c. forecasts slower to respond to most recent actual. d. the equations invalid.
forecasts more dependent on most recent actual
CAD increases flexibility through (choose the best answer): a. reduced cost of design. b. simplification of the design process and reduction of design leadtime. c. complication of the design process. d. improved materials handling.
simplification of the design process and reduction of design leadtime.
The three pieces of data needed to forecast when using the exponential smoothing method are: a. the most recent forecast, the actual demand for that period, and a smoothing constant. b. the usual average demand, the autocorrelation, and a smoothing constant. c. the actual demand for the most recent period, the seasonal factor, and a smoothing constant. d. the most recent forecast, the actual demand for that period, and the autocorrelation.
the most recent forecast, the actual demand for that period, and a smoothing constant.
The basic purpose of supply chain management is A) to create an exclusive set of suppliers who will not supply to your competitors. B) to link your customers together so that the flow of materials remains under control. C) to synchronize the operations of all suppliers with those of purchasing, production, distribution, and customers. D) to reduce the inventory by proper selection of customers
to synchronize the operations of all suppliers with those of purchasing, production, distribution, and customers.
Long-range capacity planning should be the responsibility of: a. analysts b. middle management c. top management d. marketing management
top management
A continuous process usually involves: a. low volume of output b. work stations grouped by the process requirements of the product. c. high labor relative to capital investment d. varied routes and sequences of operations
work stations grouped by the process requirements of the product.
An operation routing sheet does which of the following? a. shows an exploded view of the product and components b. shows how parts go together and the order of assembly c. specifies the sequence of machines used to assemble the product d. shows the manufacturing process cycle
Shows the manufacturing process cycle
As presented in the supplement and in class, all of the following tend to be "distinctive characteristics" of service (rather than manufacturing) organizations except: a. capacity is time perishable. b. site location dictated more by raw material location. c. decentralization of decision making and control. d. difficulty in measuring output.e. labor intensive nature.
Site location dictated more by raw material location
Aggregate production planning typically covers what length planning horizon or schedule? (a) Daily schedule (especially if computer available) (b) Weekly (at most, two weeks or 1/2 month)(c) Three weeks to a month (d) Six to eighteen months (e) Five to eight years
Six to eighteen months
The type of goods for which efficient supply chain is appropriate is: A) product cost is high. B) design changes are frequent. C) contribution margin is high. D) staple products
Staple products
The control limits of a p-chart are set up and the four sequential points out of 30 samples fall outside the control limits, a. stop the process and make adjustments. b. continue the process, but watch it closely for more outside points. c. the process is OK. Continue. d. none of the above.
Stop the process and make adjustments
Which one of the following statements regarding supplier selection criteria is TRUE? A) Supplier should be selected on the basis of price only because the cost of materials is a significant portion of total product cost. B) Supplier should be selected on the basis of quality, price, and delivery. C) Supplier should be selected primarily on the basis of the shortest lead time because higher lead time increases the cost of inventory. D) Supplier should be selected on the basis of quality because quality is always the most important characteristic of a product.
Supplier should be selected on the basis of quality, price, and delivery.
Which one of the following is TRUE for supply chain management? A) Supply chain concept applies to both manufacturing and service organizations. B) Supply chain applies only to manufacturing since it deals with flow of materials. C) Supply chain is about suppliers and does not include distributors or customers. D) Supply chain includes any operation that deals with materials.
Supply chain concept applies to both manufacturing and service organizations
The basis for the ABC classification system in determining which item should receive the greatest control is: a. The size of the inventory for each item. b. The rate of turnover for each item. c. The annual dollar usage for each item. d. The cost of the order.
The annual dollar usage for each item
In class we discussed the necessity of matching product mix and process pattern. A product-process matrix was provided that depicts different combinations of process patterns and product mix. Absent a unique strategy, the importance of being close to the diagonal was emphasized. Which best describes the concept of "lost opportunity costs" (being above the diagonal) as used in class discussions relative to the product-process matrix? a. It is important to be the first company to move to assembly line type production to achieve the maximum position on the experience curve. All companies switching after this "leader" will incur some amount, however small, of lost opportunity cost. b. If we switch to an assembly line prior to the optimal time to switch, we will have lost the opportunity to minimize our costs as compared to our competitors. c. A company must make a smooth, orderly transition from a job shop type facility to an assembly line type facility. Any deviation from this smooth, orderly transition (either too fast or too slow) will result in lost opportunity costs. d. If we switch to an assembly line after the optimal time to switch, we will incur a "lost opportunity" to manufacture the goods at a cheaper cost. e. A company should switch to an assembly line facility at the time when the company's "out of pocket" costs exactly equal the company's "lost opportunity costs" from the present process.
Unknown
Which of the following is a mixed strategy for absorbing demand fluctuations in aggregate production planning? a. altering the production rate by changing the size of the labor force b. using subcontracting to meet peak fluctuations in demand c. using overtime, inventory, and subcontracting d. keeping work force and production rate constant, allowing fluctuations in the inventory level
Using overtime inventory and subcontracting
Demand can be made to more closely equal production capacity by all of the following except: a. adding contra-cyclical products b. varying the level of customer service through order backlogs c. varying marketing through price cuts, increased promotion, and advertising d. varying the level of inventory
Varying the level of customer service through order backlogs
What is usually the most important factor in deciding to move from an existing "process" layout to a "product" layout? a. skill levels of workers b. volume level to be produced c. number of machines to be included d. information system available
Volume level to Be produced
Among the components of operations leadtime, which of the following shop managers have the major responsibility to reduce: a. moving times between machines b. job setup times c. job processing times d. waiting times in queue
Waiting times in queue
A student is working similar homework problems and notes a decrease in the amount of time it takes to complete each problem because of a learning effect. For similar problems she notes that problem No.1 takes 20 minutes to complete, while No.2 takes only 10 minutes to complete. How long will it take her to complete No.4 problem? a. 1.25 b. 2.50 c. 5.0 d. 7.5 e. 10
2.50
Which best describes the ABC inventory classification scheme as presented in class and in the text:? a) The classification scheme is based on each item in inventory; the "A" items are highly perishable, the "B" and "C" items are less perishable. b) The classification scheme is based on the storage location of each item. c) "A" items are those with independent demand, "C" items are those with dependent demand, and "B" items can be either. d) "A" items are those with a deterministic demand, "C" items are those with probabilistic demand, and "B" items are somewhat in between. e) "A" items are those accounting for a large dollar contribution to total inventory holding costs, "B" and "C" items have much smaller contribution to total inventory holding costs.
"A" items are those with a deterministic demand, "C" items are those with probabilistic demand, and "B" items are somewhat in between.
A forecasting model yields the following forecasts as compared to the actual. Forecasting:10 10 20 30 40 50 60 Actual:7 11 23 35 42 56 66 Which one of the following is the MAD for this forecasting model? a. - 2.86 b. 3.01 c. 3.71 d. 26.00
3.71
A firm can order an item at two costs. As shown below, the larger order quantity yields a quantity discount. Weekly demand is 200 units. The inventory holding cost rate is 20%. The cost to place an order is $10/order. There are 50 weeks per year. QuantityCost/unit < 500$10 ³ 500$ 8 What is the economic order quantity to minimize total cost? a.700 b. 500 c. 233 d. 316
316
Compute the required cycle time for a company which operates two identical production lines for 7.5 hours a day with a demand of 16,225 items per week (5 workday/week.) a. .1387 minutes b. .0277 minutes c. .0046 minutes d. .2800 minutes
.2800 minutes
Compute the required cycle time for a process that operates 8 hours daily with a required output of 300 units per day. a. .625 min. b. 1.6 min. c. 37.5 min. d. .027 min.
1.6 min
The company is scheduling the repair of buses for next month. Currently, there are five buses needing repair (all are similar). Bus: V WXYZ Repair Time in Days: 5 83 6 7 The minimum mean flow time of the buses in the repair shop is which of the following? a. 5.8 days b. 15 days c. 29 days d. 75 days
15 Days
TWA is scheduling the repair of five identical 707 aircraft next month. The time to repair each of the aircraft is given below: Aircraft:12345 Repair Time (Days): 67258 If the sequence of repair were 1-2-3-4-5, what would the mean job flow time be for the aircraft? a. 14 b. 16.4 c. 28 d. 82
16.4
A job is said to be enlarged horizontally if: a. a worker is involved in a greater variety of tasks. b. a worker is involved in planning. c. a worker is involved in organizing work. d. a worker inspects his or her own work.
A worker is involved in a greater variety of tasks
A firm desires to control inventory levels so as to minimize the sum of holding and order costs. It costs the firm $20 to place an order. The firm estimates its inventory holding costs at $2/unit/year. Weekly demand is 100 units and there are 50 weeks in the work year. What quantity of the item should be ordered each time? a. 32 b. 145 c. 224 d. 316
316
Four patients arrive at a non-emergency health care clinic at the same time. None has an appointment, also, first-come, first-serve is not the priority rule used by the clinic. All patients are of equal importance, therefore, which of the following is the order which will minimize average wait times of patients in the clinic? Patient:1 2345 Process Time by Doctor : 14131810 15 a. 4 2 3 1 5 b. 2 5 1 4 3 c. 2 4 1 5 3 d. 2 5 1 3 4 e. 4 2 1 5 3
42153
If a firm experiences a learning rate of 80% and unit number 1 took 10 hours, then how many hours will unit number 8 take? a. 8 b. 6.4 c. 5.12 d. 4.096 e. 3.21
5.12
Demand for the product is non-seasonal with a mean of 200 units per week. The standard deviation of demand during the lead times is 40 units. The lead time for the item is a constant of 3 weeks. With a confidence level of 95% (a = 5% with z = 1.96), what will be the reorder point (R) of the system? a. 600 b. 200 c. 78.4 d. 678.4
678.4
A plant produces Item A on an assembly line with a total manufacturing leadtime of 100 hours. From data records, total setup time of all operations for this item is 2 hours, total processing time is 12 hours, and all other times (moving, waiting, etc.) take 6 hours. What is the JIT measure of LT/PT ratio for this production line? a. .2 b. 8.33 c. 5.0 d. 7.14 e. 5.55
8.33
A firm uses exponential smoothing to forecast demand. In period 10 the forecast was 90 and the actual was 100. If a is equal to .10, then what is the forecast for period 11? a. 89 b. 91 c. 90 d. 99
91
A company is using single exponential smoothing. Last month they predicted a sale of 1,000 cases of a certain chemical. The a value they have been using is .1. Because they sold 800 cases, they are predicting a sale this month of: a. 800 b. 990 c. 980 d. 1,080
980
A firm uses exponential smoothing to forecast demand. In period 10 the forecast was 100 and the actual was 90. If a is equal to .10, then what is the forecast for period 11? a. 89 b. 91 c. 90 d. 99
99
Which of the following best describes an "Operating Characteristic" (OC) Curve as discussed in class and in the text? (a) A curve showing the percentage of defectives to be expected in a population of items when the reliability of the process generating the defects is known. (b) A curve showing the proper sample size for a given population of items when the mean number of defects in the population is known. (c) A curve showing the discrimination power of a particular sampling plan. (d) A type of process control chart showing the number of defects from a process plotted over time.
A curve showing the discrimination power of a particular sampling plan.
As per our class discussions and articles in the supplement, which best describes the Japanese system of "Kanban?" a) An automated production system based to a large extent on robotics. b) A management system based upon employee commitment and lifetime employment. c) Participative management practices, in which quality circles are a key factor. d) A systematic inventory control practice which attempts to maintain low inventory levels.
A systematic inventory control practice which attempts to maintain low inventory levels.
The Manufacturing leadtime consists of which of the following? a. Order preparing time b. Shop flow time c. Pre-delivery time d. All of above
All of the above
Which of the following types of processes will be used to produce refrigerators? a. Project Shop b. Batch Processing c. Assembly lines d. Continuous Processing
Assembly lines
CIM is: I. a method used to increase flexibility. II. a method which automates and integrates design, planning, control, and manufacturing itself. III. an automated version of the generic manufacturing process. IV. synonymous with JIT. a. I only. b. I, II, and III only. c. I, III, and IV only. d. I, II, III, and IV.
B I,II,III
The company is scheduling the repair of buses for next month. Currently, there are five buses needing repair (all are similar). Bus: VWXYZ Repair Time in Days: 5 8 3 6 7 The optimum sequence (minimum flow time) of buses to repair is which of the following? a. V W X Y Z b. X V Y Z W c. W Z Y V X d. X Z V W Y
B, X V Y Z W
64. In which TWO of the following situations would MRP be LEAST applicable? I. The fabrication and assembly of radios. II. The production of simple one-piece wrenches. III. The refining of crude oil. IV. The production of copying machines. a. I and III only b. II and III only c. II and IV only d. III and IV only
B. II and III only
Which of the following types of processes will be used to produce low volume plastic parts? a. Project shop b. Batch Processing c. Assembly lines d. Continuous Processing
Batch processing
Which of the following types of processes will be used to produce low-priced popular clothing? a. Assembly line b. Batch Processing c. Project shop d. Continuous Processing
Batch processing
Which of the following is not a mark of a good plant layout: a. straight line flow pattern b. bottleneck operations. c. work stations close together. d. open plant floors (high visibility).
Bottleneck operations
In a JIT system, quality is: a. reduced because of high productivity b. lowered by frequent inspection c. built in, not inspected in d. lowered by inspecting every item
Built in, not inspected in
Primary inputs to the MRP process include: I. The Master Production Schedule II. Planned Order Releases III. The Product Structure Tree (Bill of Materials) IV. Inventory status records V. Planned order receipts a) Only I and II b) Only I, II, and V c) Only I, III, and IV d) Only I, II, III, and IV e) I, II, III, IV, and V
C I,II,IV
Which of the following ARE NOT associated with Just-In-Time purchasing? I. Cooperation among suppliers and customersII. A large number of second source suppliers III. Reliable suppliersIV. Continuous competitive bids among many suppliers V. Short term contracts a. I and II only b. I, II, and III only c. II, IV, and V d. I, III, and IV only
C II,IV,V
The individual steps of the acquisition process are: 1) select a supplier, 2) Recognize a need, 3) Receive the order, 4) Track the order, 5) Place the order. ill what order should the above steps be taken ? A) 1-2-5-4-3 B) 1-4-2-5-3 C) 2-1-5-4-3 D) 2-4-1-5-3
C) 2-1-5-4-3
Which of the following are not associated with Just-In-Time production? I. Group Technology II. Reduced Lot Sizes III. Increased Holding Costs IV. Large Set-Up Times V. Uniform Plant Loads a. I and II only b. II and III only c. III and IV only d. III, IV, and V only
C. III and IV only
In an MRP system, component demand is: a. forecasted b. established by the MPS c. calculated by MRP from MPS d. ignored
Calculated by MRP from MPS
A layout which groups dissimilar machines into work centers is referred to as: a. Process layout b. Product layout c. cellular layout d. Fixed-position layout
Cellular layout
Which of the following types of processes will be used to produce chemicals? a. Job shop b. Batch Processing c. Assembly lines d. Continuous Processing
Continuous processing
Which of the following types of processes will be used to produce gasoline and petroleum products? a. Project shop b. Batch Processing c. Assembly lines d. Continuous Processing
Continuous processing
The direct inputs to the CRP include all of the following EXCEPT: a. planned order releases of MRP. b. Engineering routing standards. c. Actual MRP order releases. d. Current inventory levels.
Current inventory levels
Which of the following are associated with efficient Just-In-Time production? I. Elimination of Waste II. Large, economical lot sizes III. Use of group technology IV. Reductions in set-up times V. Large batch sizes a. I, II, and IV only b. I, II, and III only c. III, IV, and V only d. I, III, and IV only
D I,III, and IV only
The inputs to the layout decision are: I. specification of objectives of the system in terms of inputs. II. estimation of product or service demand on the system. III. processing requirements. IV. space availability within the facility itself. a. I and IV only. b. III and IV only. c. I, III, and IV only. d. II, III, and IV only.
D II,III,IV
In class we discussed the differentiation that can exist in the products/processes of two companies. The production and sales of hand-held calculators by Texas Instruments (TI) and Hewlett Packard (HP) served as an example. Which of the following are true relative to the differentiation between TI and HP? I. HP is more likely to practice vertical integration. II. TI is more likely to use assembly line production techniques. III. HP is more likely to emphasize product engineers (rather than process engineers). a. only I b. only III c. I and II d. II and III e. I, II and III.
D, II and III
If the Check-Rite case (check printing), what seemed to be the important strategic contribution of operations to the firm's success? a. Cost leadership (especially labor productivity) and quality b. Delivery speed and customization c. Technological innovation and cost leadership d. Delivery reliability and quality e. Cost leadership, quality, and customization
Delivery reliability and quality
Efficient supply chain should be preferred when A) product variety is high. B) demand is highly predictable. C) competitive priority is customization. D) demand is unpredictable.
Demand is unpredictable
When balancing an assembly line, it is sometimes very hard in: a. determining the required cycle time. b. computing the minimum number of work stations. c. drawing a network diagram. d. establishing rules by which tasks are to be assigned to work stations.
Determining the required cycle time
The critical ratio is associated with which of the following? a. Balances the utilization of capacity b. Effective in job shop scheduling with valid and updated due dates and process times. c. Effective in scheduling jobs of equal importance. d. Minimizes the total times for all jobs through two machines
Effective in job shop scheduling with valid and updated due dates and process times.
Fixed-order quantity models are: a. time triggered. b. fixed for a specified time period. c. made up of a variable order size. d. event triggered.
Event triggered
All of the following changes in a manual student-class registration system will reduce the average time needed to register EXCEPT: a. Adding more administrators at the table to hand out cards. b. Putting more students into the hall to push more out. c. Extending the hours of registration. d. Scheduling only as many students into the hall as could be processed.
Extending the hours of registration.
Which one of the following is not true about the MRP? a. It plans production and purchase orders for materials. b. Its main input is the Master Production Schedule. c. It is an output of the Capacity Requirements Plan. d. It plans the priority of materials.
It plans the priority of materials
The Aggregate Production Plan does which of the following? a. It plans and schedules the production of components. b. It calculates the load for most work centers. c. It plans the production of families of products. d. It plans and schedules the finished goods build schedule.
It plans the production of families of products
An observer records various time values, averages them, and multiplies this average by a performance rating. The value which he obtains is called the: a. observed time. b. standard time. c. normal time. d. incentive time.
Normal time
The type of goods for which responsive supply chain is appropriate are A) fashion goods. B) products with a long shelf life. C) expensive products. D) those with infrequent design changes.
Fashion goods
The inherent value of a product in the market place refers to its: a. functional productivity. b. fitness for use. c. conformance quality. d. design quality.
Fitness for use
A professor's office is an example of a: a. Process layout b. Product layout c. cellular layout d. Fixed-position layout
Fixed-position layout
Which of the following is also referred to as a process layout? a. functional layout b. Product layout c. cellular layout d. Fixed-position layout
Functional layout
If a JIT plant needs 100 units a month, they would prefer to schedule them: a. 20 daily lots of 5 b. in a single lot of 100 c. in 2 lots of 50 d. in uniform lots of 10
In uniform lots of 10
MRP analysis is appropriate for: (a) Inventory items for which there is an independent demand. (b) Inventory items for which there is a dependent demand. (c) Aggregate production planning analysis. (d) Facility location analysis.
Inventory items for which there's is a dependent demand
MRP does which of the following? a. It plans and schedules the production of components. b. It calculates the load for most work centers. c. It plans the production of families of products. d. It calculates loads for critical, bottleneck work centers.
It plans and schedules the production of components
Which one of the following statements is TRUE about a cooperative orientation in supplier relationships? A) It can not be implemented in Western countries because competitive bidding is more effective in that culture. B) It can not be implemented in the Western countries because it always benefits the supplier. C) It requires all parts and subassemblies to be purchased from the same supplier. D) It requires few suppliers for each item or service.
It requires all parts and subassemblies to be purchased from the same supplier.
Which one of the following statements is TRUE about a competitive orientation in supplier relationships? A) It tends to emphasize short term advantages over long-term commitments. B) The supplier gains repeatability and can move toward a line flow process. C) The supplier is obliged to offer the lowest possible price every time. D) The supplier is obliged to deliver the material in the shortest possible time, every time.
It tends to emphasize short term advantages over long-term commitments.
Rough Cut Capacity Planning does which of the following: a. It plans and schedules the production of components. b. It verifies the load for work centers. c. It plans the production of families of products. d. It plans and schedules the finished goods build schedule.
It verifies the load for work centers
Which of the following types of processes will be used to produce electronic components? a. Job shop b. Mass (batch) processing c. Assembly lines d. Continuous Processing
Mass (batch) processing
Quality costs are generally classified into all of the following areas except: a. appraisal costs. b. overhead. c. failure costs. d. internal prevention costs. e. external prevention costs.
Overhead
The costs of quality include all of the following except: a. overhead. b. rework. c. scrap. d. inspection. e. warranties.
Overhead
Which of the following is not a component of demand in a typical time series model? a. Average demand for period b. Trend c. Seasonal influence d. Cyclical elements e. Peak demand for period
Peak demand for period
The major variables associated with aggregate production planning include changes in all of the following except: a. production rate b. inventory level c. work force size d. price of the product
Price of the product
Decisions concerning the nature of the processing system, the equipment to be used, and the routing of the product refer to the concept of: a. product design. b. product selection. c. process selection. d. production planning.
Process selection
A flow line layout is often referred to as a: a. Process layout b. Product layout c. cellular layout d. Fixed-position layout
Product layout
Assembly lines relate most closely to a: a. functional layout. b. product layout. c. process layout. d. departmental layout.
Product layout
The initial pull in a Kanban system is exerted by the: a. last assembly station b. production foreman c. final assembly schedule d. first assembly station
Production foreman
Which of the following types of processes will be used to produce large turbines? a. Project shop b. Job shop c. Assembly lines d. Continuous Processing
Project shop
Which of the following is a definition of productivity? a. Ratio of output to input b. The effectiveness of capital and equipment c. The degree of goal attainment d. The effectiveness of labor
Ratio of output to input
One of the benefits of a cooperative orientation in supplier relationships is: A) The buyer sometimes suggests ways to improve the supplier's operations. B) The supplier can implement his own quality standards. C) The buyer does not have to share much information with the supplier. D) The supplier has complete freedom in choosing the delivery time.
The buyer sometimes suggests ways to improve the supplier's operations.
A company is considering using a fixed reorder quantity model (standard EOQ model) and a fixed time period model with orders laced every 60 days. The demand pattern is deterministic. Under the standard EOQ model, it is determined that orders would be placed every 52 days. Lead time for the inventoried item under consideration is 2 weeks. Ignoring the administrative costs of operating each system, and only considering traditional ordering and holding costs, is it clear which model will yield lower costs? (a) The fixed order quantity (EOQ) system. (b) The fixed time period system. (c) Since the model is deterministic, the models should yield identical results if the most economical order quantity is chosen under each model. (d) Can't say - depends on cost parameters. (e) Can't say - depends specifically on the lead time usage as compared to the order size in each model.
The fixed order quantity (EOQ) system
As one moves from a job shop process to a machine paced assembly line process, typically: a. product customization increases. b. work-in-process increases. c. the number of different kinds of products made decreases. d. competition is less likely to be on the basis of price alone. e. individual jobs become more complex and require more judgment.
The number of different kinds of products made decreases
You are a junior inventory analyst who has been assigned the job of setting an inventory policy for a particular product which your company uses as raw material. You use a very standard EOQ model and compute the optimum order quantity as 767. You then find out that the units must be ordered in even hundred unit lots. Which of the following best describes the best approach to take with this additional information? a) The optimal lot size will be 700 (next smallest size) . b) The optimal lot size will be 800 (closer to 767) . c) The optimal lot size will be either 700 or 800. You should compute the cost of using both lot sizes and compare. d) The optimal lot size may not be either 700 or 800 since the additional lot size information must now be included in the analysis.
The optimal lot size may not be either 700 or 800 since the additional lot size information must now be included in the analysis.
Assume that a standard (basic) EOQ model has been derived under an assumption of deterministic demand. The economic order quantity has been computed to be 500. Your accountant now informs you that the holding cost you used was too high. That is, you should have used a smaller holding cost in your calculations. All other assumptions and costs are correct. What can you say about the revised economic order quantity that would be computed with the smaller holding cost? (a) The revised EOQ will be larger than 500. (b) The revised EOQ will be smaller than 500. (c) The revised EOQ will be 500, it will not change. (d) It depends on the other costs used in the model. It could be either larger or smaller, depending on the other cost data.
The revised EOQ will be larger than 500
Exponentially smoothed forecasting models are an example of which of the following forecasting techniques? a. Qualitative b. Time series analysis c. Causal d. Simulation models.
Time series analysis
What is the purpose of classifying items into group, when using the ABC type inventory planning system? a. To determine unit cost of items. b. To establish the appropriate degree of control over each item. c. To determine if group deviations are normally distributed. d. To determine if an item has a high dollar value.
To establish the appropriate degree of control over each item
The socio-technical approach to job design recognizes the need for management: a. to provide fast feedback on job performance. b. to break up autonomous groups. c. to minimize skill requirements for the job. d. to minimize task variety.
To provide fast feedback on job performance