Busmgt 3230 Final - LC quiz questions
Judgment methods of forecasting should never be used with quantitative forecasting methods. True False
False
While lean systems work very well for manufacturing systems, they cannot be applied to service systems. True False
False
A workstation in a process is a bottleneck if A. it has the highest total time per unit processed. B. it processes the smallest total workload. C. it has the lowest average utilization. D. it has the smallest average capacity.
a
The traditional method of making product mix decision considers A. producing the products with the highest contribution margins first. B. not producing the products with the lowest contribution margins at all. C. not producing products that have a large capacity impact on the bottleneck. D. producing products that have a large capacity impact on the bottleneck first.
a
The project's objective statement should contain A. activities, completion times, and incentives. B. slack time and activities. C. strengths and weaknesses of subcontractors. D. scope, time frame, and allocated resources.
d
Cumulative sum of forecast errors are always positive. True False
false
When looking at inventory management, the term "lot size" refers to the physical dimensions of the area where the inventory is stored. True False
false
Inventory management is the planning and controlling of inventories in order to meet the competitive priorities of the organization. True False
true
Just-in-time (JIT) systems need close relationships with suppliers. True False
true
Kaizen is the Japanese term for continuous improvement. True False
true
Project managers should be able to organize a set of disparate activities. True False
true
Projects often cut across organizational lines. True False
true
Quality at the source is a philosophy whereby defects are caught and corrected where they are created. True False
true
Scope creep is one of the primary causes of project failure. True False
true
Takt time is the cycle time needed to match the rate of production to the rate of sales. True False
true
The Toyota Production System requires that any process improvements are to be made at the lowest level of the organization. True False
true
The network diagram is a planning method that is designed to depict the relationships between activities. True False
true
A reorder point will fall if A. the lead time falls. B. the chance of a stockout falls. C. the variance of demand rises. D. the setup cost rises.
A
Judgment methods may be the only practical way to make a forecast when A. there is no historical data due to a new product introduction. B. quantitative models have been performing particularly well in recent periods. C. the forecast made in the previous period had a MAPE of less than 10%. D. there is a great deal of historical product data.
A
There are three consecutive steps in a customer service process. The first two steps are each capable of serving 25 customers per hour while the third step can process only 20 customers per hour. Which of the following statements regarding this system is true? A. If the first two steps are run at full capacity, then the third step has a waiting line. B. The entire system is capable of processing 25 customers per hour. C. There are floating bottlenecks in the system. D. The first and second steps are bottlenecks for the system.
A
What is the one popular design for efficient supply chains? A. make-to-stock (MTS) B. assemble-to-order (ATO) C. make-to-order (MTO) D. design-to-order (DTO)
A
Which is the best statement regarding work breakdown structure? A. Each activity in the WBS must have an "owner" who is responsible for doing the work. B. WBS should not include a task representing planning of the project that is being planned. C. A Level 1 activity is a more micro view (greater level of detail) than a Level 2 activity. D. A packet is the smallest unit of work effort consuming both time and resources that the project manager can schedule and control.
A
Work should be released into the system: A. when the bottlenecks need work. B. when the first step in the process is idle. C. when a customer order is received. D. when a customer order is completed.
A
A manager uses data on demand at time t-1 but not at time t to predict the demand at time t+1. Which of the following best describes this type of forecasting method. A. Simple Moving Average B. Weighted Moving Average C. Exponential Smoothing D. Naive forecasting
B
Assume that activity G has the following times: Early start time = 7 days Early finish time = 13 days Late start time = 15 days Late finish time = 21 days Which of the following statements is TRUE about activity G? A. Activity G takes 2 days to complete. B. Activity G has a slack time of 8 days. C. Activity G takes 14 days to complete. D. Activity G is on the critical path.
B
A firm's database showed that the average value of all inventory items for the year was $7,650. The cost of goods sold was reported at $76,500. Because the company closes for two weeks each year, its business year is reduced in length. How many weeks of supply were held in inventory? A. 0.2 B. 5.0 C. 2.0 D. 10.0
B
For the manufacturing firm, tier 2 suppliers provide ______________ with components. A. tier 3 suppliers B. tier 1 suppliers C. the manufacturing firm's competitors D. distribution centers
B
The firm that allows customers to select from a variety of standard options to create the service or product of their choice is practicing A. channel assembly. B. mass customization. C. postponement. D. None of the above.
B
The primary lever to reduce anticipation inventory is to A. improve demand forecasts so that fewer surprises come from customers. B. match demand rate with production rate. C. rely on more equipment and labor buffers. D. streamline the methods for placing orders and making setups.
B
What is the primary lever to reduce cycle inventory? A. improve demand forecasts B. reduce the lot sizes C. place orders closer to the time when they must be received D. use flexible automation
B
A form of shrinkage called ________ occurs when inventory cannot be used or sold at full value, owing to model changes, engineering modifications, or unexpectedly low demand. A. life-cycle shrink B. deterioration C. obsolescence D. pilferage
C
An individual item or product that has an identifying code and is held in inventory somewhere along the supply chain is called a A. inventory item. B. stockable unit. C. stock-keeping unit. D. MRO.
C
An item that has been built to stock has yet to be sold. Which TOC operational measure is used to describe it in its current state? A. Operational expense B. Utilization C. Inventory D. Throughput
C
Efficient supply chains are used by firms that A. must serve demand that is unpredictable. B. have frequent new-service/product introductions. C. have a competitive priority of consistent quality. D. have high product variety
C
Inventory used to absorb uneven rates of demand or supply is referred to as A. independent demand inventory. B. pipeline inventory. C. anticipation inventory. D. cycle inventory.
C
Managers that use data in period t as the forecast in period t+1 are implementing which of the following forecast method. A. Simple Moving Average B. Weighted Moving Average C. Naive Forecasting D. Exponential Smoothing
C
The _________ of forecasting is a process of gaining consensus from a group of experts. A. technological method B. salesforce estimate method C. Delphi method D. consulting method
C
A project has three paths. A--B--C has a length of 25 days. A--D--C has a length of 15 days. Finally, A--E--C has a length of 20 days. Which one of the following statements is TRUE? A.The expected duration of this project is 25 + 15 + 20 = 60 days. B.A--D--C is the critical path. C.A--B--C has the most slack. D.The expected duration of this project is 25 days.
D
Assume that a timeminusseries forecast is generated for future demand and subsequently it is observed that the forecast method did not accurately predict the actual demand. Specifically, the forecast errors were found to be: Mean absolute percent error = 10% Cumulative sum of forecast errors = 0 Which one of the statements concerning this forecast is TRUE? A. The forecast has no bias and has a standard deviation of errors equal to zero. B. The forecast has a positive bias and a positive standard deviation of errors. C. The forecast has a positive bias and a standard deviation of errors equal to zero. D. The forecast has no bias but has a positive standard deviation of errors.
D
Bottlenecks exist in which type of manufacturing processes? A. job process B. batch process C. line process D. All of the above.
D
Firms that design and build products entirely to the customer's specifications tend to use which of the following supply chain designs? A. make-to-order (MTO) B. assemble-to-order (ATO) C. make-to-stock (MTS) D. design-to-order (DTO)
D
Pitfalls that should be carefully explored before outsourcing include A. it is difficult to fully integrate outsourced processes with the firm's other processes. B. deciding to outsource a process before making a good-faith effort to fix the existing one. C. the firm with a technology advantage may be setting up the other firm to be a future competitor. D. All of the above.
D
The theory of constraints principles outlined are NOT applicable to what type of processes? A. large service processes B. large manufacturing processes C. large hospital processes D. TOC is applicable to all of the above processes.
D
Which of these statements is NOT required in order for the EOQ model to be a reasonable approach? A. The demand rate is known and constant. B. The lead time is known and constant. C. No constraints are placed on the size of each lot. D. The setup/ordering cost must exceed the annual holding cost of one unit.
D
Which of these terms is NOT one of the Five Ss? A. Sustain B. Sort C. Shine D. Store
D
A forecast with a large cumulative sum of forecast errors (CFE) indicates A. that the forecast has no bias. B. consistent forecasting mistakeslong dashthe forecast is always too high or too low. C. that the forecast will cause very little disruption to planning efforts. D. All of the above.
b
Inversion Specialists, Inc., is relatively new in the industry and has calculated its inventory turnover at 5. What action would result in decreased inventory turns for Inversion Specialists, Inc.? A. Improve internal supply-chain relations. B. Increase the average aggregate inventory value. C. Increase sales. D. Improve information flows with customers and supplier.
b
The fourth step in Theory of Constraints application, "elevate the bottleneck(s)," means that the analyst should: A. schedule nonminusbottleneck resources to support the bottleneck. B. create a schedule that maximizes the throughput of the bottlenecks. C. consider increasing capacity of the bottleneck. D. repeat the analysis process to look for other bottlenecks.
c
The process of planning, implementing, and controlling the efficient, cost effective flow of products, materials, and information from the point of consumption back to the point of origin is called A. remanufacturing. B. recycling logistics. C. reverse logistics. D. return logistics.
c
Throughput time is defined as A. the elapsed time a job spends at a bottleneck. B. the elapsed time from the start to the finish of a job, not including the time the job waits for processing. C. the total elapsed time from the start to the finish of a job being processed at one or more workcenters. D. the average time between products completed on an assembly line.
c
A bottleneck is an operation that has the lowest effective capacity of any operation in the process. True False
true
A power cord that can be plugged in only one way is an example of a poka-yoke. True False
true
A project is an interrelated set of activities that has a definite starting and ending point. True False
true
A quantity discount is attractive because there is a drop in the price per unit when the order is sufficiently large. True False
true
A relationship that determines the sequence for undertaking activities is a precedence relationship. True False
true
Automatically stopping the process when something is wrong and then fixing the problems on the line itself as they occur is called jidoka. True False
true
Forecast error is found by subtracting the forecast from the actual demand for a given period. True False
true
In lean systems, work-in-process inventory is a direct result of overproduction and waiting. True False
true