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An appliance manufacturer has two factories located around the world, each with its own capacity: • F1 can make 8 appliances per day. • F2 can make 10 per day. The factories can deliver to two different distribution centers. Every day each distribution center must receive 9 appliances each. The cost to deliver appliances from each factory to each distribution center is listed in the table below: Distribution Center 1 Distribution Center 2 F1 $4 $3 F2 $8 $3 Using the factory production constraints and the delivery costs in the above matrix, what is the lowest cost to deliver all 18 appliances to the distribution centers? $3 $67 $81 $98 $114
$67
An auto service center that specializes in oil changes has two service bays that serve, on average, a total of 24 cars per eight-hour business day. On average, each bay can finish one oil change in 30 minutes. What is the design capacity? 24 oil changes 30 oil changes 32 oil changes 48 oil changes
32 oil changes
A furniture company receives an order for 100 dining tables with four legs each. The planner has determined that the projected number of legs on hand is 60 units. If there is no previously scheduled production for legs, what will be the planned production of legs? 400 340 240 160
340
The original capacity in each process for a computer manufacturer's operations is as follows: Parts inventory: 500 units available per day Assembly: 300 units assembled per day Delivery: 450 units processed per day After the computer manufacturer upgrades the assembly system, it can assemble 550 units per day. According to this information, what is the throughput for this computer manufacturer? 550 units/day 500 units/day 450 units/day 200 units/day
450 units/day
Products A and B for a manufacturing company are level scheduled. Daily requirements are 15 units for product A and 20 units for product B. If three units of product A and four units of product B are produced in each cycle, how many daily cycles should be scheduled? 4 5 6 7
5
What is the time horizon for medium-range forecasting? 3 to 4 months 6 to 18 months 3 to 5 years 7 to 9 years
6 to 18 months
A large retail chain is developing an aggregate plan for its "holiday tree" product line. It does not specify Douglas fir, pine, spruce tree, or artificial tree variations, just overall quantity of trees to be offered throughout the holiday season. What is the appropriate time fence for the aggregate plan? 2 to 6 months before the holiday season begins 6 to 18 months before the holiday season begins 24 to 36 months before the holiday season begins 2 months after the prior holiday season ends
6 to 18 months before the holiday season begins
A rental company has a fleet of 50 cars that can be rented daily if all vehicles have been washed and inspected and are free of mechanical and electrical defects. Due to maintenance requirements and late returns by customers, the rental company is, in general, able to prepare 45 cars per day for rental. On average, 30 cars are rented daily. What is the efficiency rate for this company? 30% 40% 60% 67%
67%
Which two company practices reflect the guiding principles of Six Sigma? Choose 2 answers A company tries to reduce variation in the quality of products it offers. A company emphasizes the quality of suppliers because the quality of outputs are determined by the quality of inputs. A company emphasizes the variety of suppliers because the variety of outputs are determined by the variety of inputs. A company tries to reduce the variety in the kinds of products it offers.
A company tries to reduce variation in the quality of products it offers. A company emphasizes the quality of suppliers because the quality of outputs are determined by the quality of inputs.
Which competitive advantage would a company gain from having suppliers managing inventory within the company's facilities? An increase in customer coordination An decrease in the number of unfinished goods An increase in employee cross-training A decrease in overhead costs
A decrease in overhead costs
What can be used in a company with a just-in-time (JIT) environment to reduce inventory? A pull system Large lot sizes An increased setup time Medium lot sizes
A pull system
Strategic planning is based on a firm's strengths and weaknesses, as well as the threats and opportunities in the external environment. Regarding strategic planning, what is JIT? A strength A weakness An opportunity A threat
A strength
A cell phone manufacturer makes a new model every six months with the latest available technology. The demand for these high-end models is not easy to predict. The manufacturer needs to ensure it has the right components for the new phone model on time. Which supply chain integration strategy should the manufacturer use to get new components quickly? Forward vertical integration with cell phone retailers Global production Agile supply chain Lean supply chain
Agile supply chain
What type of supply chain structure focuses on getting products quickly to market? Efficient supply chain structure Lean supply chain structure Agile supply chain structure Effective supply chain structure
Agile supply chain structure
An employee for a manufacturing company calls a supervisor to take time off to care for an ill parent until the employee can arrange for care for the parent. The company has a benefit policy that provides employees with up to five paid time off days for family emergencies. However, there are imminent production deadlines that must be met. Which action should the supervisor take? Deny the employee time off because production deadlines must be met Allow the employee to take time off, but only after the employee trains a replacement to fill in Allow the employee to take time off and fill in for the employee if necessary to meet deadlines Encourage the employee to find another relative to care for the ill parent
Allow the employee to take time off and fill in for the employee if necessary to meet deadlines
A semiconductor manufacturer recently purchased a copper ore mine to ensure access to a copper supply for a long period of time. Which supply chain integration strategy did this manufacturer use? Agile supply chain Forward vertical integration Strategic partnership Backward vertical integration
Backward vertical integration
A company makes garage door tracks for residential and commercial customers. The production manager prefers to run all the footage for residential requirements first each day and then change over for the commercial size after the residential orders are completed. The tooling is changed back to the residential size before the end of business each day. Which process strategy is this company using? Continuous flow of standard products on special purpose equipment Batch processing with some product variety on moderately flexible equipment Job shop with high product variety on flexible equipment Project-based with high product variety and low volume on flexible equipment
Batch processing with some product variety on moderately flexible equipment
A company makes rulers that are designed to be 20 cm in length with allowance ±0.1 cm. If the actual length of a ruler is 20.2 cm, which factor will the company use to judge the quality of the length of the rulers? Performance Features Conformance Serviceability Aesthetics
Conformance
The CEO of a service company wants to change the strategy of the company from volume sales to high-quality products. Which philosophy should the CEO implement to emphasize quality over volume? Shewhart's variation reduction Deming's 14 points Ohno and Shingo's kaizen Taguchi's loss function
Deming's 14 points
A company is experiencing rapid changes in the technology of one of its products. Which characteristic of a SWOT analysis will be of greatest benefit to this company? Identifying environmental threats so they can strive to change these threats into opportunities Determining a plan to enter new markets with very high barriers to entry Benchmarking with competitors that have been slow to implement technology improvements Determining opportunities through the examination of previously under-served markets
Determining opportunities through the examination of previously under-served markets
Which aspect of quality is demonstrated by a vehicle that has a useful life of 165,000 miles? Performance Reliability Features Durability
Durability
Which statement is true for periodic inventory systems? Exact inventory balances cannot be kept without a physical count. A large amount needs to be invested in the capital cost for inventory. A costly investment in resources for updates and upgrades is required. Proactive maintenance is unnecessary.
Exact inventory balances cannot be kept without a physical count.
A company manufactures ceramic coffee cups. The company employs automated pottery making machines in creating the ceramic coffee cups. Which one of the production steps is a bottleneck? Firing the coffee cups in a kiln Preparing the clay in making the coffee cups Coating the coffee cups with glaze Polishing the coffee cups
Firing the coffee cups in a kiln
A mattress manufacturer holds many patents on their mattresses because they are specially constructed out of unique materials. This leads the manufacturer to open retail stores in high-traffic areas to increase visibility and brand recognition. Which supply chain integration strategy is the mattress manufacturer using? Revenue sharing Outsourcing Insourcing Forward vertical integration
Forward vertical integration
A lawn mowing service contracts with homeowners and businesses to cut grass during the growing season. There are several elements that affect a lawn mowing service, such as rainy weather, employee turnover, fuel prices, and maintenance repairs that can compress the amount of resources available on any given day. Which two factors could create bottlenecks? Choose 2 answers Low fuel prices Frequent rain and thundershowers High employee turnover Grass going dormant
Frequent rain and thundershowers High employee turnover
Which equipment can be used in a just-in-time (JIT) environment to reduce setup time? General-purpose machines Special-purpose machines Machines without preventive maintenance Machines with preventive maintenance
General-purpose machines
A clothing retailer sends out evaluations to customers to rate quality as "outstanding," "good," "average," and "bad." If the retailer wants to know the annual frequency of each evaluation category, which tool should the retailer use? Pareto chart Control chart Scatter plot Histogram
Histogram
A company desires to increase the throughput of the products that it manufactures. The firm finds a bottleneck in the availability of its raw materials. What is the firm accomplishing? Identifying the system constraint Exploiting the system constraint Elevating the system constraint Subordinating everything else to the constraint Not allowing inertia to create a system constraint
Identifying the system constraint
What are two steps in the theory of constraints? Choose 2 answers Ignoring the system constraint Identifying the system constraint Elevating the system constraint Reducing the system constraint Abusing the system constraint
Identifying the system constraint Elevating the system constraint
Which quality management philosophy uses cause-and-effect fishbone diagrams for root-cause analysis, emphasizes a bottom-up approach to quality, and considers standardization and quality control to move together in improvement? Six Sigma Goldratt's theory of constraints Deming's 14 points for management Taguchi methods Ishikawa's quality circle
Ishikawa's quality circle
The CEO of a large manufacturing company is aware of impending financial problems, but this has not been disclosed to the board of directors. What can correctly be said of the CEO's lack of disclosure? It is in the best interests of the company. It is a morally sound decision. It is an unethical decision. It is an example of social responsibility.
It is an unethical decision.
A road building crew is supplied with hot asphalt mix from a supplier that is located 30 miles from the worksite. As the road extends, the distance increases from the asphalt supplier. Currently, the bottleneck for the project has been the throughput rate of the paving equipment being used on the road. What will happen to the bottleneck as the project nears completion? It will remain the same. It will change to become the transportation time of the asphalt trucks. It will be resolved. It will change to become the throughput rate of the mixing equipment.
It will change to become the transportation time of the asphalt trucks.
A bicycle company receives an order to deliver 200 bicycles by the end of the month. Which planning process will help this company to decide the required quantity of bicycle tires to meet the order? MRP II MRP Purchasing MAP
MRP
A manager is planning staffing needs for a seasonal ice cream stand. The manager expects to have the following number of customers per day each month: January: 20 February: 23 March: 30 April: 60 May: 90 Jun: 120 July: 130 August: 150 September: 100 October: 80 November: 60 December: 30 Which capacity planning strategy should the manager use to achieve this customer demand? Lead Lag Match Adjustment
Match
An aircraft manufacturer has many highly complex subassemblies such as seats, cockpit, engines, and landing gear. It works with other manufacturers to design and build these subassemblies while doing project management and final assembly themselves. Which supply chain integration strategy is the aircraft manufacturer using? Outsourcing Horizontal integration Agile supply chain Revenue sharing with suppliers
Outsourcing
A hardware store in a small town cannot afford to invest in an automated inventory system. This means they will not generally know the inventory levels of the many sizes of nuts and bolts that they carry. In order to determine those inventory levels, they take a physical count of their fasteners every two weeks. Which inventory system is the hardware store using? Daily cycle count system Periodic inventory system Active maintenance system Perpetual inventory system
Periodic inventory system
A bank needs to know how much a customer has in their account at any particular time. This enables the bank to determine if the customer has available funds for a withdrawal from their account. Which inventory system should the bank use? Daily cycle count system Periodic inventory system Active maintenance system Perpetual inventory system
Perpetual inventory system
If a retail store needs to keep an accurate inventory level at all times, which inventory system should be used? Periodic inventory systems Perpetual inventory systems Daily cycle count systems Active maintenance systems
Perpetual inventory systems
What helps to reduce setup time in a JIT system? Choose 2 answers Placing the needed tools and equipment in predetermined locations Shortening the downtime of equipment Using inexpensive equipment Producing large lot sizes
Placing the needed tools and equipment in predetermined locations Shortening the downtime of equipment
A computer company receives an order for 100 computers from a customer inside of its lead time. The production planner agrees to support the order. Which two outputs will the MRP system issue? Choose 2 answers Planned order receipts Expedite notice Shipping confirmation Master schedule quantity
Planned order receipts Expedite notice
A restaurant manager inside a major entertainment venue needs to estimate the amount of soft drinks to order for the coming month. Cumulative convention attendance for each event is estimated at 20,000 people. The manager understands the historical pull-through and turnover rate metrics at the restaurant. Which two tools should the manager use to estimate the total amount of soft drinks to purchase? Choose 2 answers Weighted moving average from the historical metrics for the last 30 days Panel of experts to estimate total soft drink use Weighted moving average using attendance estimates Simple regression using independent variables to estimate total soft drink use
Weighted moving average using attendance estimates Simple regression using independent variables to estimate total soft drink use
A retail store is planning to place a large order. Their suppliers will offer a lower price per unit for a large order. Which model will help the store decide the optimal quantity to order? Basic economic order quantity (EOQ) Production order quantity model Quantity discount model Reorder point model
Quantity discount model
Imelda Company wants to minimize the total of their ordering costs and holding costs. However, they also understand that ordered items usually cost less per unit when purchased by the case rather than individually. Which inventory management model should they use? Production order quantity model Quantity discount model Reorder point model Economic order quantity model
Quantity discount model
In order to optimize a just-in-time production system, what should companies strive to do? Reduce setup times of machinery. Maximize inventory lot sizes. Create a push system for production. Emulate a job-shop process.
Reduce setup times of machinery.
A vice president of a major retailer is trying to reduce the wait time for customers in the checkout line by appropriately opening checkout lines. To do this, the VP needs to know the relationship and degree of correlation between monthly customer visits and area population. Which tool should be used in this situation? Pareto chart Control chart Scatter plot Histogram
Scatter plot
Which quality tool examines patterns, flow, and causes of variation of data points over time? Quality function deployment Cause-and-effect matrix Students t-test Statistical process control
Statistical process control
An electric company wants to increase service reliability by building new high-voltage wiring. Because service improves for other electric companies on the same grid, the company partners with other companies to plan routes and finance construction. Which supply chain integration strategy is the electric company using? Horizontal integration Merge with competitors Strategic alliance Agile supply chain
Strategic alliance
What is a characteristic of an agile supply chain? Suppliers are encouraged to deliver standardized products. Varying levels of competition are created among suppliers. Suppliers help develop new products that can better meet individual customer needs. A fixed production process is developed to assure a steady, consistent flow of products.
Suppliers help develop new products that can better meet individual customer needs.
A hospital administrator needs to determine how many beds to make available for exam rooms, operating rooms, and in-patient care. The hospital board announces they will be getting more patient referrals from specialists at a newly opened clinic. What should the adminstrator use to forecast how many beds to make available, given the increased number of patients? Simple moving average using data from prior years Weighted moving average using patient referral data Panel of experts Buildup method
Weighted moving average using patient referral data
An electronic manufacturer is developing a SWOT analysis in order to build a strategic plan to expand its business to China over the next three years. Which statement is an opportunity based on the SWOT analysis? The Chinese government has developed new policies to attract manufacturing companies to do business in China. The market share in China is shrinking due to competition. Labor cost in developing countries, including China, is increasing. The minimum labor hourly rate in China is increasing due to the regulation policy change.
The Chinese government has developed new policies to attract manufacturing companies to do business in China.
The sales department for a company is having their sales representatives meet with customers to develop a sales plan for the coming year. The sales plan details prior year sales, current year sales, and year-to-year sales growth. Each customer can estimate how many products they plan to buy from the sales representatives the following year. Each customer signs the sales plan, and the sales representatives forward it to their sales managers. The sales managers then tally up the estimated sales and forward the totals on to the vice president of sales. The vice president then announces what the predicted sales for the company will be for the coming year. What was used to predict sales for the coming year? Exponential smoothing Simple moving average A panel of experts The buildup method
The buildup method
An employee for a manufacturing company is handing out literature from a local organized labor union in the company break room. The employees have been complaining about low wages and long hours. The operations manager would like to make socially responsible recommendations to the general manager to resolve these concerns. Which two recommendations should the operations manager make? Choose 2 answers The company should develop a pay-for-skills training program. The company should discipline the employee that handed out the union literature. The company should confiscate the union literature and post an announcement about why unions are bad for workers. The company should begin one-on-one meetings with employees to listen and develop solutions that address their complaints.
The company should develop a pay-for-skills training program. The company should begin one-on-one meetings with employees to listen and develop solutions that address their complaints.
Which two statements reflect strengths discovered when conducting a SWOT analysis at a computer company? Choose 2 answers The price of a computer is more expensive than the price of other companies' computers. The company's brand name and reputation are much better than those of its competitors. The quality of this company's products is better than that of other companies' products. This company's capital expenditures are more costly in comparison to its competitors.
The company's brand name and reputation are much better than those of its competitors. The quality of this company's products is better than that of other companies' products.
Which statement represents a threat for a company? The reputation and brand name of competitors are not good as this company. The competition is more intense in the current market. Competitors have a narrower range of products than that of this company. This company is user-friendly.
The competition is more intense in the current market.
What would be considered a bottleneck for the process of going through airport security? The throughput rate of the full-body scanner The size of the trays for personal items The number of security officers The "fast lane" used by pilots, flight attendants, and airport personnel
The throughput rate of the full-body scanner
Six Sigma is adopted by a manufacturing company. How can the company use Six Sigma to establish quality improvement? There should be no more than 3.4 defects per million products from a manufacturing company statistically. There should be no more than 6.8 defects per million products from a manufacturing company statistically. There should be no more than 15% of defects per million products from a manufacturing company statistically. There should be no more than 10% of defects per million products from a manufacturing company statistically.
There should be no more than 3.4 defects per million products from a manufacturing company statistically.
A company that produces motors uses the following check sheet: Why would the company use this check sheet? To create a control chart to measure the engine assembly process To create a flow chart of the engine assembly process To develop a suppliers, inputs, process, outputs, customers (SIPOC) diagram To develop a Pareto chart identifying the root causes of engine defects
To develop a Pareto chart identifying the root causes of engine defects
A company wants to establish a new gas station in a location with heavy traffic. The company performs a traffic analysis for four locations during four different time periods. The table below depicts the number of cars that passed each location during the four time periods: Time Period Main Street Fell Avenue Veterans Parkway Market Street Midnight - 6:00 a.m. 1,000 500 1,500 750 6:00 a.m. - noon 4,500 6,000 5,500 4,000 Noon - 6:00 p.m. 6,000 4,500 6,000 5,000 6:00 p.m. - midnight 2,500 1,500 3,000 6,000 Which location should the company choose for the new gas station? Main Street Fell Avenue Veterans Parkway Market Street
Veterans Parkway
An oil refinery receives crude oil on a regular basis, which must be refined into five different octane-rated gasoline formulas and diesel. Demand for these fuels is easy to predict. The cost to refine the oil decreases rapidly depending on the size of the refinery that refines the oil. Based on this information, which process strategy should the oil refinery use in its refining process? Job shop Batch flow Mass customization Continuous flow
Continuous flow
A quality improvement team is trying to illustrate to upper management how a process is varying over time as measurements are collected. Which two statistical process control (SPC) tools should the team use? Choose 2 answers Cause-and-effect diagrams Scatter diagrams Histograms Run charts Check sheets Pareto charts Control charts
Control charts Run charts
A company sells garage doors through a national retailer and contracts with local installers to complete the installations. The operations manager is responsible for completing the installations in a 14-day period after the sale. The company will be penalized financially if it fails to achieve these objectives. The operations manager's daily responsibilities include contacting installers to expedite orders and ensure deadlines are met. Which two tools that should be used to measure installer performance? Choose 2 answers Control charts to measure the time elapsed to completion Fishbone diagram to chart the method, material, machine, and manpower Gantt chart to measure how much performance has improved Run charts to chart output around the 14-day central tendency
Control charts to measure the time elapsed to completion Run charts to chart output around the 14-day central tendency
Which quality management philosophy assigns cost to quality, defines quality by how well a product can be used for its intended purpose, and uses Pareto charts? Deming's 14 points for management Juran Institute's management theory Taguchi methods Shewhart cycle Crosby's "Quality Is Free"
Juran Institute's management theory
A company has a repetitive manufacturing situation where the master schedule does not vary from day to day and is level loaded. Under these circumstances, which manufacturing system should be employed? Just-in-time Material requirements planning Enterprise resource planning Batch processing
Just-in-time
A printing company prints a magazine dedicated to reporting on new scientific discoveries. The company has almost no paper inventory, but rather orders and then receives the paper a day before it prints an edition of the magazine. Which inventory control system is the printing company using? Vendor managed inventory Just-in-time inventory Honda production system Value stream mapping
Just-in-time inventory
A computer company needs to order 50 computer screens from a vendor so they can assemble 100 computers by the end of the month. What does the computer company need to know to ensure the parts arrive when they are needed? Lead time Order quantity Purchase price Gross requirements
Lead time
A folding chair manufacturer continues to make the same five chairs it has made for the past 15 years. It has worked to minimize inventory throughout the supply chain by sharing information with component suppliers and continuous improvement. Which supply chain integration strategy is the chair manufacturer using? Agile supply chain Lean supply chain Strategic alliance Reverse logistics
Lean supply chain
A customer contacts a major retailer one month after purchasing a display model of a BBQ grill island that has been discontinued. The grill was sold "as-is." During the installation, the customer somehow loosened a fitting that is part of a subassembly and is concealed inside the unit. The only way to access the fitting is to dismantle an external bulkhead after removing the stone veneer finish the customer has installed. This repair is a major headache, and the customer is not taking any responsibility for their incorrect actions. What is the socially responsible solution for the major retailer? Do nothing because there is no explicit warranty for this type of breakdown and the customer bought the grill "as-is" Recommend a repairman for the customer to contact Schedule a time with the customer to repair the grill with no questions asked Negotiate a cost-sharing agreement with the customer and schedule a visit with the customer to get the grill repaired
Negotiate a cost-sharing agreement with the customer and schedule a visit with the customer to get the grill repaired
Which two elements of a SWOT analysis reflect the external impact on productivity? Choose 2 answers Strength Weakness Opportunity Threat
Opportunity Threat
A computer company assembles computers to meet market demand. Which inventory model should the company adopt to minimize the total setup cost and carrying cost? Basic economic order quantity (EOQ) model Production order quantity model Quantity discount model Reorder point model
Production order quantity model
A children's clothing retailer is looking to build a store in a city that happens to be close to one of the company's distribution centers. The retailer opens a retail store on this city's busiest street, which also has other clothing retailers and a department store. Which two factors were influential in opening this store at this location? Choose 2 answers Labor productivity Taxes Proximity to customers Cost of labor Proximity to competitors (clustering)
Proximity to customers Proximity to competitors (clustering)