Ops Management Final
Natural variations:
All of the above are true: when grouped form a pattern or distribution, affect almost every production process, are tolerated, within limits, when a process is under control, are the many sources of variation that occur when a process is under control.
Which of the following statements about the basic EOQ model is TRUE?
All of the above statements are true: If annual demand were to double the EOQ would increase, if the carrying cost were to increase the EOQ would fall, If the ordering cost were to double the EOQ would rise, If annual demand were to double the number of orders per year would increase
ABC analysis divides an organization's on-hand inventory into three classes based upon:
Annual dollar volume
Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of $9,000 and variable costs of $2.25 per unit. Which of the following statements is true?
Process Y is cheaper than Process X at all volumes.
High-volume, low-variety production is best suited for which of the following process strategies?
Product focus
The objective of a statistical process control (SPC) system is to:
Provide a statistical signal when assignable causes of variation are present.
the purpose of an x-bar chart is to determine whether there has been a
change in the central tendency of the process output
The purpose of an x-bar chart is to determine whether there has been a
change in the central tendency of the process output.
A measure of the strength of the relationship between two variables is referred to as the
coefficient of correlation
The expected value of perfect information (EVPI) is the:
difference between the payoff under perfect information and the payoff under risk
Statistical process control chart:
display upper and lower limits for process variables or attributes and signal when a process is no longer in control.
The usual purpose of an R-chart is to signal whether there has been a
gain or loss in dispersion.
If the actual order quantity is the economic order quantity in a problem that meets the assumptions of the economic order quantity model shown below, the average amount of inventory on hand: Q*= SquareRoot(2DS/H)
is one-half of the economic order quantity
the R-chart
is used to indicate gains or losses in uniformity.
The critical path of a network is the
longest time path through the network
Which of the following phrases best describes process focus?
low volume, high variety
The causes of variation in statistical process control are:
natural causes and assignable causes
A product whose EOQ is 40 units experiences a decrease in ordering costs from $90 per order to $10 per order. The revised EOQ is:
one-third as large
The objective of a statistical process control (SPC) system is to
provide a statistical signal when assignable causes of variation are present
The objective of a statistical process control (SPC) system is to:
provide a statistical signal when assignable causes of variation are present.
What is the probability of accepting a bad lot?
type 2 error
A c-chart is based on the
Poisson distribution
The most realistic estimate of the time required to complete an activity is referred to as what?
Most likely time
What is the statistical process chart used to control the number of defects per unit of output?
c-chart
the number of defects after a hotel room cleaning (sheets not straight, smears of mirror, missed debris on carpet, etc ) should be measured using what type of control chart?
c-chart