ISDS 3115 FINAL
Arnold Palmer Hospital uses which focus?
process
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.
How can a reduction of in-transit inventory be encouraged?
supplier location near plants
A disadvantage of the "few suppliers" sourcing strategy is:
the high cost of changing partners.
Break-even analysis can be used by a firm that produces more than one product, but:
the break-even point depends upon the proportion of sales generated by each of the products.
Which of the following would NOT generally be a motive for a firm to hold inventories?
to minimize holding costs
Which of the following is one of the four principles of bottleneck management?
Release work orders to the system at the bottleneck's capacity pace.
In the basic EOQ model, if D = 6000 per year, S = $100, and holding cost = $10 per unit per month, what is the economic order quantity?
100
Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are $90,000, and its variable cost is $15 per unit. The revenue is $23 per unit. What is the break-even point for machine A?
11,250 UNITS
The Academic Computing Center has five trainers available in its computer labs to provide training sessions to students. Assume that the design capacity of the system is 1900 students per semester and that effective capacity equals 90% of design capacity. If the number of students who actually got their orientation session is 1500, what is the utilization of the system? Part 2
78.9%
Which of the following statements about ABC analysis is FALSE?
ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.
Lean operations are known for their: A. employee development. B. supplier partnerships. C. supplier education. D. challenging jobs. E. All of the above are attributes of lean operations. Your answer is correct.
All of the above
Outsourcing A. transfers traditional internal activities to outside vendors. B. allows the outsourcing firm to focus on its key success factors. C. utilizes the efficiency that comes with specialization. D. All of the above are true of outsourcing. Your answer is correct. E. None of the above is true of outsourcing.
All of the above
Which of the following is an element of inventory holding costs?pilferage, scrap, and obsolescence B. material handling costs C. housing costs D. investment costs E. All of the above are elements of inventory holding costs.
All of the above are elements of inventory holding costs.
Which of these statements about the production order quantity model is FALSE?
Average inventory is more than one-half of the production order quantity.
Which one of the following statements is TRUE regarding JIT inventory?
It is the minimum inventory necessary to keep a perfect system running.
Which of the following statements regarding a pull system is TRUE? Part 2 A. Manufacturing cycle time is increased. B. Large lots are pulled from upstream stations. C. Work is pulled to the downstream stations before it is actually needed. D. Problems become more obvious. Your answer is correct. E. None of the above is true of a pull system.
Problems become more obvious.
Which of the following products is likely to be assembled on a repetitive process line?
automobiles
Which of the following statements about quantity discounts is FALSE?
The larger the annual demand, the less attractive a discount schedule will be.
A grocery store is attempting to implement a kanban system. Which of the following would NOT be an application of kanbans? Part 2
The meat department stocking up on turkeys before Thanksgiving.
Which of the following statements is TRUE about the MRP plan when using lot-for-lot ordering?
The quantity of gross requirements for a child item is equal to the quantity of planned order release(s) multiplied by the number of child items used in the parent assembly.
A work cell at Chris Ellis Commercial Laundry has a workstation with two machines, and each unit produced at the station needs to be processed by both of the machines. (The same unit cannot be worked on by both machines simultaneously.) Each machine has a production capacity of 4 units per hour.
The throughput time of the work cell=30 minutes per unit
Which of the following is FALSE regarding repetitive processes? - They are the classic assembly lines. - They use modules. - They include the assembly of basically all automobiles. - They have more structure and less flexibility than a job shop layout. - They allow easy switching from one product to the other.
They allow easy switching from one product to the other. Your answer is correct.
Low-level coding means that:
a component item is coded at the lowest level at which it appears in the BOM structure.
The fixed−period inventory system requires more safety stock than a fixed-quantity system because:
a stockout can occur during the review period as well as during the lead time.
The bullwhip effect: A. increases the costs associated with inventory in the supply chain. B. occurs as orders are relayed from retailers to distributors to wholesalers to manufacturers. C. occurs because of distortions in information in the supply chain. D. results in increasing fluctuations at each step of the sequence. E. All of the above are true.
all of the above
ABC analysis divides on-hand inventory into three classes, generally based upon which of the following?
annual dollar volume
Enterprise resource planning (ERP):
automates and integrates the majority of business processes.
A fried chicken fast-food chain that acquired feed mills and poultry farms has performed which of the following?
backward integration
The purpose of safety stock is to:
control the likelihood of a stockout due to variable demand and/or lead time.
he purpose of safety stock is to:
control the likelihood of a stockout due to variable demand and/or lead time.
In the mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except:
customization.
Utilization will typically be lower than efficiency because:
effective capacity is less than design capacity
The supply chain management opportunity called postponement involves delaying deliveries to avoid accumulation of inventory at the customer's site.
false
In mass service and professional service, the operations manager should focus extensively on:
human resources
Which of the following is NOT an opportunity for effective management in the supply chain?
local optimization
Which of the following lot-sizing techniques results in the lowest holding costs?
lot-for-lot
Which of the following phrases best describes process focus?
low volume, high variety
Which of the following is not one of the strategies for improving service productivity?
mass customization
The Theory of Constraints (TOC) strives to reduce the effect of constraints by:
offloading work from constrained workstations. + increasing constrained workstation capability.
Hewlett-Packard delays customization of its laser printers as long as possible. This is an example of which of the following?
postponement
What is the practice of keeping a product generic as long as possible before customizing?
postponenment
In MRP, the number of units projected to be available at the beginning of each time period refers to:
projected on hand.
Which one of the following is a characteristic of a JIT partnership?
removal of incoming inspection
An assembly line is an example of a:
repetitive process
Which of the following industries is most likely to have low equipment utilization? A. auto manufacturing B. steel manufacturing C. television manufacturing D. restaurants Your answer is correct. E. commercial baking
restaurants
Savings in the supply chain exert more leverage as the firm's net profit margin decreases.
true
The bullwhip effect refers to the increasing fluctuations in orders that often occur as orders move through the supply chain.
true
Which one of the following is not a benefit of JIT implementation?
variability increase
Which of the following are all strategies for improving productivity in services?
separation, self-service, automation, and scheduling
