SCM 186 Exam 2 (Final)
Which of the following is NOT a tool for process analysis and design? A. process mapping B. Pareto chart C. flowchart D. process chart
Pareto chart
Which distribution most frequently describes the arrival rate in queuing theory? A. Normal B. Beta C. Poisson D. Negative exponential
Poisson
Which of the following attributes is NOT for lean operations? A. Build processes that increase variability. B. Empower employees. C. Develop worker flexibility. D. Develop collaborative partnerships with suppliers.
build processes that increase variability
Inventory reduction via JIT is an effective tool for identifying A. setup costs. B. inefficiencies in warehouse layout. C. holding costs. D. causes of variability.
causes of variability
What provides feedback to the capacity plan, master production schedule, and production plan so planning can be kept valid at all times? A. lot sizing B. system nervousness C. MRP II D. closed-loop MRP system
closed-loop MRP system
Managing quality helps build successful strategies of A. differentiation, low cost and response. B. differentiation, time and service. C. differentiation, time and response. D. differentiation, low cost and service.
differentiation, low cost and response
In manufacturing, excess capacity can be used to A. do more setups, shorten production runs, and drive down inventory costs. B. do more setups, lengthen production runs, and drive down inventory costs. C. do fewer setups, lengthen production runs, and drive down inventory costs. D. do fewer setups, shorten production runs, and drive down inventory costs.
do more setups, shorten production runs, and drive down inventory costs
Supply chain management systems in the grocery industry that tie sales to buying, to inventory, to logistics, and to production are called A. grocery resource planning. B. efficient consumer response. C. enterprise resource planning. D. distribution resource planning.
efficient consumer response
Inventory control models assume that demand for an item is A. either independent of or dependent on the demand for other items. B. always independent on the demand for other items. C. identical to the demand for other items. D. always dependent on the demand for other items.
either independent of or dependent on the demand for other items
Which of the following is NOT one of Taiichi Ohno's seven wastes? A. transportation B. energy C. motion D. queues
energy
Cause-and-effect diagrams are also known as A. Pareto charts. B. fish-bone charts. C. target specification graphs. D. flowcharts.
fish-bone charts
What is the ability to respond with little penalty in time, cost, or customer value? A. mass customization B. repetitive process C. flexibility D. postponement
flexibility
What is a drawing of the movement of material, product or people? A. AIS B. flowchart C. process chart D. RFID
flowchart
A single-period inventory model is NOT applicable for A. furniture. B. newspapers. C. seasonal goods. D. milk.
furniture
What is a schedule that shows when an item must be ordered from suppliers or when the production of an item must be started to satisfy demand for the finished product by a particular date? A. net requirements plan B. master production schedule C. lead time D. gross material requirements plan
gross material requirements plan
Which of the following DOES NOT increase profit by improving quality? A. improved reputation B. increased productivity C. flexible pricing D. higher warranty costs
higher warranty costs
Which of the following is NOT one of the assumptions of fixed-period systems? A. The only relevant costs are the ordering and holding costs. B. Items are independent of one another. C. Lead times are variable. D. Lead times are known.
lead times are variable
What are bills of material organized by major subassemblies or by product options? A. modular bills B. phantom bills C. product bills D. planning bills
modular bills
Which of the following does NOT belong to the planning phase of project management? A. team organization B. monitoring resources C. goal setting D. defining the project
monitoring resources
Policies based on ABC analysis might include investing A. more in inventory security for C items. B. more in supplier development for A items. C. extra care in forecasting for C items. D. the most time and effort verifying the accuracy of records for B items.
more in supplier development for A items
Most bank teller services are operated with what kind of system? A. single-server, multiphase B. single-server, single-phase C. multiple-server, single-phase D. multiple-server, multiphase
multiple-server, single-phase
What is a means of determining the discounted value of a series of future cash receipts? A. future value B. variable cost C. net present value D. cash flow
net present value
What sends a lot to two different machines for the same operation? A. lot splitting B. operations splitting C. pegging D. overlapping
operations splitting
Which of the following does NOT belong to holding costs? A. pilferage, scrap, and obsolescence B. order processing C. storage costs D. insurance on inventory
order processing
Which of the following tools means tracing upward in the BOM from the component to the parent item? A. pegging B. time fencing C. bucketing D. system nervousness
pegging
What is the primary method in which airlines adjust to short-term fluctuations in customer demand? A. denial of service B. personnel availability C. postponement of service D. changes in inventory
personnel availability
Among the following, critical path and slack time analysis MOST help A. managers define the project activities. B. highlight relationships among project activities. C. point out who is responsible for various activities. D. pinpoint activities that need to be closely watched.
pinpoint activities that need to be closely watched
Gantt charts are A. not widely used. B. planning charts used to schedule resources and allocate time. C. not easy to understand. D. widely used network techniques.
planning charts used to schedule resources and allocate time
The three phases involved in the management of large projects are A. scheduling, operating, and evaluating. B. scheduling, designing, and operating. C. planning, scheduling, and evaluating. D. planning, scheduling, and controlling.
planning, scheduling, and controlling
A device or technique that ensures production of a good unit every time is a A. poka-yoke. B. zero defect. C. fail-safe. D. control chart.
poka-yoke
Which column in Microsoft Project defines the precedence relationships among the activities? A. predecessors B. relations C. order D. successors
predecessors
Computerized PERT/CPM reports and charts do NOT include A. detailed cost breakdowns for each task. B. probability estimates for on-time completion. C. variance reports. D. cost distribution tables.
probability estimates for on-time completion
Low-volume, high-variety production is best suited for which of the following process strategies? A. process focus B. repetitive focus C. mass customization D. product focus
process focus
What is a flowchart with time added on the horizontal axis? A. process mapping B. service blueprinting C. process chart D. CNC
process mapping
What is the fundamental rethinking of business processes to bring about dramatic improvements inperformance? A. process analysis B. process design C. process redesign D. process strategy
process redesign
A bill of materials for a menu item in a restaurant is also called a A. food bill. B. product specification. C. bill of ingredients. D. recipe.
product specification
Which of the quadrants in the service process matrix has high labor intensity and high customization? A. professional service B. mass service C. service shop D. service factory
professional service
What is a concept that results in material being produced only when requested and moved to where it is needed just as it is needed? A. procrastination system B. push system C. requisition system D. pull system
pull system
Taguchi's quality loss function is based on a A. binomial distribution. B. quadratic equation. C. linear equation. D. negative exponential distribution.
quadratic equation
The body of knowledge about waiting lines is called A. queuing theory. B. waiting science. C. line analysis. D. patience discipline.
queuing theory
Which of the following types of inventory describes inventory that has been purchased but not processed? A. raw material inventory B. work-in-process inventory C. maintenance/repair/operating supply inventory D. finished-goods inventory
raw material inventory
Which of the following determinants of service quality means the firm performs the service right the first time and that the firm honors its promises? A. competence B. responsiveness C. reliability D. credibility
reliability
Which of the following costs is NOT a cost of quality? A. research and development B. scrap C. rework D. lost goodwill
research and development
Which of the following costs is NOT a cost of quality? A. rework B. scrap C. lost goodwill D. research and development
research and development
What is the cost to prepare a machine or process for production? A. preparation cost B. holding cost C. setup cost D. ordering cost
setup cost
What is the cost to prepare a machine or process for production? A. setup cost B. holding cost C. preparation cost D. ordering cost
setup cost
What is an electronically guided and controlled cart used to move materials? A. RFID B. AIS C. CNC D. AGV
AGV
Which of the following statements is NOT true? A. Adding flexibility to the production process can be a major competitive advantage. Building flexibility into a production process is usually inexpensive, but difficult. B. Selecting the best equipment requires understanding the specific industry and available processes and technology. C. Selection of a particular process strategy requires decisions about equipment and technology. D. The selection of equipment requires considering cost, cash flow, market stability, quality, capacity, and flexibility.
Adding flexibility to the production process can be a major competitive advantage. Building flexibility into a production process is usually inexpensive, but difficult.
What is a time-phased stock-replenishment plan for all levels of the supply chain? A. MRP B. BOM C. MRP II D. DRP
DRP
Which of the following statements about DRP is NOT true? A. DRP stands for "distribution resource planning." B. DRP procedures and logic are analogous to MRP. C. Lead times are considered in DRP. D. DRP pushes inventory through the system.
DRP pushes inventory through the system
Which of the following is an award for quality achievement in Japan? A. Deming Prize B. Malcolm Baldrige National Quality Award C. ISO 9000 D. Tokyo Medal for Excellence in Quality
Deming Prize
What is an information system for identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders? A. BOM B. MRP C. CIM D. ERP
ERP
Which of the following statements is NOT true regarding ERP? A. ERP allows companies share a common database and business practices throughout the enterprise. B. ERP promises slow, but accurate, information. C. The objective of an ERP system is to coordinate a firm's whole business. D. ERP usually provides financial and human resource management information.
ERP promises slow, but accurate, information
Which of the following is NOT one of the techniques for building employee empowerment? A. Develop open, supportive supervisors. B. Build high-morale organizations. C. Build communication networks that include employees. D. Eliminate formal organization structures such as teams and quality circles.
Eliminate formal organization structures such as teams and quality circles.
Most queuing models assume what type of service discipline? A. shortest processing time B. FIFO C. critical ratio D. LIFO
FIFO
Which of the following is NOT a technique that allows managers to plan, schedule, and control projects? A. CPM B. Factor-rating method C. Gantt charts D. PERT
Factor-rating method
When the assumptions of the M/M/1, M/M/S, M/D/1, and limited-population queuing models do not hold true, there are no other approaches available to us. A. False B. True
False
Which of the following statements is NOT true regarding production technologies? A. Vision systems combine video cameras and computer technology and are often used in inspection roles. B. Flexible manufacturing systems and computer-integrated manufacturing are increasing the distinction between low-volume/high-variety and high-volume/low-variety production. C. CNC is machinery with its own computer and memory. D. Robots are mechanical devices that use electronic impulses to activate motors and switches.
Flexible manufacturing systems and computer-integrated manufacturing are increasing the distinction between low-volume/high-variety and high-volume/low-variety production.
Which of the following statements is NOT true? A. For any product, some components of that product are independent demand items. B. Less inventory frees up capital and floor space for other uses. C. Demand for items is dependent when the relationship between the items can be determined. D. For any product for which a schedule can be established, dependent techniques should be used.
For any product, some components of that product are independent demand items
Which of the following is NOT true about Gantt charts? A. Gantt charts are low-cost means of helping managers make sure that activities are planned. B. Gantt charts also can be used for scheduling repetitive operations. C. Gantt charts are planning charts used to schedule resources and allocate time. D. Gantt charts adequately illustrate the interrelationships between the activities and the resources.
Gantt charts adequately illustrate the interrelationships between the activities and the resources
Which of the following is NOT one of the principles for standard work practice at Toyota? A. Improvements in the system must be made in accordance with the "scientific method," at the highest possible level in the organization. B. Work is completely specified as to content, sequence, timing, and outcome. C. Material and service flows are to be simple and direct. D. Internal and external customer-supplier connections are direct, specifying personnel, methods,timing, and quantity.
Improvements in the system must be made in accordance with the "scientific method," at the highest possible level in the organization
Which of the following is NOT a feature of Toyota's new Japanese plant? A. Retooling permits faster changeovers, allowing for shorter product runs of components, supporting level scheduling. B. The assembly line has cars sitting side-by-side, rather than bumper-to-bumper. C. The assembly line uses quiet friction rollers with fewer moving parts, requiring less maintenance than conventional lines and reducing worker fatigue. D. Instead of perching car chassis on raised platforms, they dangle from overhead conveyors.
Instead of perching car chassis on raised platforms, they dangle from overhead conveyors
How has McDonald's driven seconds out of the production process to be able to produce made-to-order hamburgers in 45 seconds? A. It reconfigured its kitchen layout. B. It changed its core management philosophy. C. It invented a stove that can cook hamburger meat in 22 seconds. D. It altered its order-entry procedures.
It reconfigured its kitchen layout
Which of the following is NOT a type of inventory? A. work-in-process B. MRP C. raw material D. finished goods
MRP
Which of the following is NOT true about MRP limitations? A. MRP is an excellent tool for product-focused and repetitive facilities, but it has limitations in process(make-to-order) environments. B. MRP does not do detailed scheduling. C. MRP does not tell you that a job needs to be completed on a certain week or day. D. MRP is considered an infinite scheduling technique.
MRP does not tell you that a job needs to be completed on a certain week or day
Which of the following statements is NOT true about MRP? A. MRP is an independent demand technique used in a production environment. B. MRP provides a clean structure for dependent demand. C. MRP uses a bill-of-material, inventory, expected receipts, and a master production schedule to determine material requirements. D. MRP has evolved as the basis for Enterprise Resource Planning.
MRP is an independent demand technique used in a production environment
What is the most popular example of specialized software for managing projects? A. Project Apple B. Microsoft Management Tool C. PERT/CPM+ D. Microsoft Project
Microsoft Project
What is a lot-sizing technique that orders the quantity needed during a predetermined time between orders? A. EOQ B. part period balancing C. POQ D. Wagner-Whitin
POQ
Which of the following statements is NOT true regarding process redesign? A. Effective process redesign works only if the basic process and its objectives are reexamined. B. Process redesign is also called process reinvention. C. Process redesign also focuses on those activities that cross functional lines. D. Process redesign is also called process reengineering.
Process redesign is also called process reinvention
Which of these statements is NOT true about project scheduling? A. Project scheduling encourages the setting of realistic time and cost estimates for each activity. B. Project scheduling identifies the precedence relationships among activities. C. Project scheduling shows the relationship of each activity to others. D. Project scheduling helps make better use of resources by identifying the non-critical paths through the network.
Project scheduling helps make better use of resources by identifying the non-critical paths through the network
Which of the following is NOT an example of technology's impact on the financial services industry? A. debit cards B. Internet stock trading C. RFID D. electronic funds transfer
RFID
Which of the following statements is NOT true about DRP? A. Effective use of DRP requires an integrated information system to rapidly convey planned order releases from one level to the next. B. When depenent techniques are used in the supply chain, they are called distribution resource planning (DRP). C. The goal of a DRP system is small and frequent replenishment within the bounds of economical ordering and shipping. D. The DRP procedure starts with the forecast at the supplier level.
The DRP procedure starts with the forecast at the supplier level
Which of the following statements is NOT true regarding the importance of the role that an operations manager plays in addressing service quality? A. The tangible component of many services is important. B. Managers must expect exceptions. C. The manager may be able to influence the quality of the service but has little control over the customers' expectation. D. The operations manager should realize that the customer' expectations are the standard against which the service is judged.
The manager may be able to influence the quality of the service but has little control over the customers' expectation
Virtually every restaurant deals with its suppliers on A. a JIT basis. B. an EOQ basis. C. a production order quantity basis. D. a fixed-period inventory system basis.
a JIT basis
A system that triggers ordering on a uniform time basis is called A. a fixed-period system. B. an EOQ system. C. a reorder point system. D. a fixed-quantity system.
a fixed-period system
Which of the following statements is NOT true about a fixed-period system? A. A fixed-period system is also called "continuous review." B. The disadvantage of the fixed-period system is that because there is no tally of inventory during the review period, there is the possibility of a stockout during this time. C. The advantage of the fixed-period system is that there is no physical count of inventory items after an item is withdrawn. D. A fixed-period system is appropriate when vendors make routine visits to customers to take fresh orders or when purchasers want to combine orders to save ordering and transportation costs.
a fixed-period system is also called "continuous review"
The gross material requirements plan combines A. the net requirements plan and the time-phased schedule. B. a master production schedule and the time-phased schedule. C. the net requirements plan and the aggregate plan. D. a master production schedule and the net requirements plan.
a master production schedule and the time-phased schedule
A system that keeps track of each withdrawal or addition to inventory continuously is A. a constant monitoring system. B. a continuous inventory system. C. a fixed period system. D. a perpetual inventory system.
a perpetual inventory system
A statistical model applicable when product demand or any other variable is not known but can be specified by means of a probability distribution is referred as A. a probabilistic model. B. the EOQ. C. a robust model. D. a quantity discount model.
a probabilistic model
Which of the following determinants of service quality means approachability and ease of contact? A. tangibles B. courtesy C. access D. security
access
Efficiency is given by A. actual output divided by effective capacity. B. design capacity divided by utilization. C. effective capacity divided by actual output. D. actual output divided by design capacity.
actual output divided by effective capacity
Inspections should NOT take place A. during the step-by-step production process. B. at your supplier's plant while the supplier is producing. C. after costly or irreversible processes. D. at your facility upon receipt of goods from your supplier.
after costly or irreversible processes
A successful quality strategy begins with A. an understanding of the principles of quality. B. an organizational culture that fosters quality. C. engaging employees in the necessary activities to implement quality. D. satisfying customers and obtaining a competitive advantage.
an organizational culture that fosters quality
ABC analysis divides an organization's on-hand inventory into three classes based upon A. annual dollar volume. B. the number of units on hand. C. unit price. D. annual demand.
annual dollar volume
Which service strategy describes separating services that may lend themselves to some type of automation? A. modules B. separation C. automation D. focus
automation
Which of the following is an example of technology's impact on wholesale/retail trade industry? A. bar-coded data B. automatic teller machines C. automatic toll booths D. interactive TV
bar-coded data
What is a list of quantities of components, ingredients, and materials required to make a product? A. engineering change notice B. master production schedule C. purchase order D. bill-of-material
bill-of-material
The difference between selling price and variable cost is called A. the bottleneck. B. fixed cost. C. the break-even point. D. contribution.
contribution
What are the two most important cost considerations in queuing problems? A. cost of lost time waiting and cost of marketing B. cost of providing service and cost of waiting time C. cost of providing service and cost of marketing D. cost of line management and cost of marketing
cost of providing service and cost of waiting time
Which of the following is NOT a Lean quality tactic? A. cross-train workers to add flexibility B. use statistical process control C. build fail-safe methods D. empower employees
cross-train workers to add flexibility
Which of the following activities does NOT need to be virtually eliminated for a lean organization? A. material handling B. inspection C. inventory D. cross-training
cross-training
JIT has an internal focus while lean production begins with an external focus on A. design. B. logistics. C. supplier relationships. D. customers.
customers
Which of the following activities does NOT belong to the controlling phase of project management? A. monitor resources, costs, quality, and budgets B. shift resources C. define the project D. revise plans
define the project
To develop a standard or benchmark, firms need to start with A. forming a benchmark team. B. determining what to benchmark. C. collecting benchmarking information. D. identifying benchmarking partners.
determining what to benchmark
Attribute inspection measures A. whether or not the product attributes conform to the inspector's personal tastes. B. such dimensions as weight, speed, size, or strength to see if an item falls within an acceptable range. C. if the product is good or bad. D. if cause and effect are present.
if the product is good or bad
Which of the following is NOT one of the benefits in MRP? A. increased inventory levels B. better response to customer orders as the result of improved adherence to schedules C. improved utilization of facilities and labor D. faster response to market changes
increased inventory levels
Which of the following could reduce costs and increase profit? A. increased productivity B. improved response C. improved reputation D. flexible pricing
increased productivity
As the level of service increases, the cost of providing service A. remains unchanged. B. decreases. C. first decreases, then increases. D. increases.
increases
Inventory record accuracy would be decreased by A. reorder points. B. increasing stockroom accessibility. C. cycle counting. D. ABC analysis.
increasing stockroom accessibility
Which of the following does NOT belong to ordering costs? A. order processing B. interest payments C. clerical support D. cost of supplies
interest payments
Which of the following is an advantage of ERP? A. Data fields do not have to be defined identically across the entire enterprise. B. It creates commonality of databases. C. It is very inexpensive to purchase. D. It is simple enough that companies have an easy time adjusting to it.
it creates commonality of databases
The Japanese call the practice of stopping production when a defect occurs A. kaizen. B. jidoka. C. kanban. D. poka-yoke.
jidoka
Which of the following is the Japanese term used to describe continuous improvement efforts? A. six sigma B. poka-yoke C. kanban D. kaizen
kaizen
Which of the following pieces of information is NOT contained in a bill of material? A. lead times B. raw materials to be used C. physical dimensions D. quantities of components
lead times
Which of the following statements is true regarding lean sustainability? A. Sustainability is focused on only the immediate process and system. B. Lean requires examining the systems in which the firm and its stakeholders operate. C. Lean drives out waste because waste has adverse affects on the environment, while sustainability drives out waste because waste adds nothing for the customer D. Lean and sustainability both seek to maximize resource and economic efficiency.
lean and sustainability both seek to maximize resource and economic efficiency
What is a report showing the resource requirements in a work center for all work currently assigned there as well as all planned and expected orders? A. closed-loop report B. load report C. pegging report D. MRP II report
load report
What is the act of breaking up an order and running part of it ahead of schedule? A. lot splitting B. overlapping C. operations splitting D. pegging
lot splitting
What is the lot-sizing technique that generates exactly what was required to meet the plan? A. economic order quantity B. Wagner-Whitin C. periodic order quantity D. lot-for-lot
lot-for-lot
A fast food restaurant is an example of A. low customization and low degree of labor. B. low customization and high degree of labor. C. high customization and low degree of labor. D. high customization and high degree of labor.
low customization and low degree of labor
Which of the following activities are NOT part of project scheduling? A. Chart separate schedules for personnel needs by type of skill and materials needs. B. Compute resources needed at each stage of production. C. Make sure all necessary activities are finished in proper sequence and on time. D. Decide how long each activity will take.
make sure all necessary activities are finished in proper sequence and on time
Which of the following is a direct responsibility of the project manager? A. making sure that the people assigned to the project receive the motivation, direction, and information needed to do their jobs B. drawing the network diagram C. performing all of the activities in the project D. calculating completion probabilities for all tasks in the project
making sure that the people assigned to the project receive the motivation, direction, and information needed to do their jobs
Which of the following is NOT true regarding PERT and CPM? A. Time estimates are subject to fudging by managers. B. Managers only need to closely monitor the critical path. C. PERT and CPM are useful in monitoring costs. D. PERT and CPM are useful when controlling large projects.
managers only need to closely monitor the critical path
One hundred percent inspection A. catches all of the defective parts. B. means that every part is checked to see whether or not it is defective. C. means that only good parts will be shipped to a customer. D. is practical and an excellent fit for world-class manufacturers.
means that every part is checked to see whether or not it is defective
The 5Ss developed by the Japanese do NOT include A. simplify/straighten. B. standardize. C. safety. D. sort/segregate.
safety
Which of the following is NOT an external failure cost? A. scrap B. returned goods C. costs to society D. lost goodwill
scrap
Which of the following is NOT part of project controlling? A. using a feedback loop to revise the project plan B. sequencing and allotting time to all project activities C. shifting resources to where they are needed most D. close monitoring of resources, costs, quality, and budgets
sequencing and allotting time to all project activities
Which of the following is NOT one of the techniques that Disney uses to try to keep visitors happy while waiting in line? A. makes lines appear to be constantly moving forward B. posts signs telling visitors how many minutes until they reach each ride C. serves drinks D. entertains people while they wait
serves drinks
Which of the following is NOT a production technology that enhances production and productivity? A. vision systems B. automatic identification systems C. service blueprinting D. process control
service blueprinting
Which of the quadrants in the service process matrix has low labor intensity and low customization? A. service factory B. mass service C. professional service D. service shop
service factory
What is training and empowering frontline employees to solve a problem immediately? A. quality circle B. employee empowerment C. courtesy D. service recovery
service recovery
For seasonal products, the service level should be set to equal A. overage cost / (overage cost minus shortage cost). B. overage cost / (overage cost + shortage cost). C. shortage cost / (overage cost minus shortage cost). D. shortage cost / (overage cost + shortage cost).
shortage cost / (overage cost + shortage cost)
What is a system for ordering items that have little or no value at the end of a sales period? A. EOQ B. production order quantity model C. single-period inventory model D. ROP
single-period inventory model
Which of the following is an advantage of PERT and CPM? A. Project activities have to be clearly defined, independent, and stable in their relationships. B. Useful in monitoring only schedules. C. Precedence relationships must be specified and networked together. D. Straightforward concept and not mathematically complex.
straightforward concept and not mathematically complex
The objective of inventory management is to A. decouple various parts of the production process. B. strike a balance between inventory investment and customer service. C. provide a selection of goods for anticipated customer demand. D. take advantage of quantity discounts.
strike a balance between inventory investment and customer service
Which of the following is the THIRD level in work breakdown structure (WBS)? A. subtasks in major tasks B. activities to be completed C. project D. major tasks in the project
subtasks in major tasks
What does Microsoft Project call an activity? A. task B. job C. event D. goal
task
Which of the following statements is NOT true about the EOQ? A. The EOQ is preferable when dependent demand exists. B. The EOQ can be used as a lot-sizing technique for MRP systems. C. The EOQ can be a reasonable lot-sizing technique when demand is relatively constant and independent. D. The EOQ is a statistical technique using averages, whereas the MRP procedure assumes known demand reflected in a master production schedule.
the EOQ is preferable when dependent demand exists
The project organization may be LESS helpful when A. the project cuts across organizational lines. B. the job is familiar to the existing organization. C. work tasks can be defined with a specific goal and deadline. D. the work contains complex interrelated tasks requiring specialized skills.
the job is familiar to the existing organization
Which of the following is a requirement to be able to compute expected monetary value? A. the probability of each state of nature is known B. each state of nature is equally likely to occur C. the probability of each decision alternative is known D. each decision alternative needs at least two states of nature
the probability of each state of nature is known
The American Society for Quality defines quality as A. the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs. B. the degree of excellence at an acceptable price and the control of variability at an acceptable cost. C. how well a product fits patterns of consumer preferences. D. even though it cannot be defined, you know what it is.
the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs
Which of the following is a limitation of PERT and CPM? A. The graphical nature of a network delays comprehension of the activity list's interrelationships. B. They can be used only to monitor schedules. C. There is the inherent danger of placing too much emphasis on the critical path. D. They are applicable to only a narrow variety of projects and industries.
there is the inherent danger of placing too much emphasis on the critical path
How do pharmacies implement lean operations to ensure that customers will always receive their medications upon demand? A. They locate no further than 10 miles away from their suppliers. B. They hold a large amount of safety stock for all of their drugs. C. They pay a premium for 60-minute delivery from their suppliers. D. They develop community networks as backup systems.
they develop community networks as backup systems
Which of the following allows a segment of the master schedule to be designated as "not to be rescheduled?" A. pegging B. system nervousness C. time fence D. freeze point
time fence
The operations manager has two important tools available to deal with MRP system nervousness. Those tools are A. pseudo bills and kits. B. net and gross requirements. C. time fences and pegging. D. buckets with back flush.
time fences and pegging
One use of inventory is A. to provide a hedge against inflation. B. to tightly synchronize a firm's production with its customers' demand. C. to ensure that item cost is maximized. D. to tightly synchronize production and distribution processes.
to provide a hedge against inflation
In many applications, human quality inspectors can be replaced effectively by A. FMS. B. vision systems. C. RFID tags. D. automated storage and retrieval systems.
vision systems