Intro to Operations MGT Test 2 Quiz Concept Questions

Which of the following is specifically characterized by a focus on continuous​ improvement, respect for​ people, and standard work​ practices? A.Toyota Production System​ (TPS) B.Just-in-time (JIT) C.Material requirements planning​ (MRP) D.Lean operations E.kanban

A. Toyota Production System​ (TPS)

Airfreight A.is a​ fast-growing mode of shipping. B.is the best way to transport natural gas. C.represents about​ 10% of the tonnage shipped in the United States. D.is the oldest means of freight transportation.

A. is a​ fast-growing mode of shipping.

Which of the following is characteristic of lean​ operations? A.low space requirements B.easy, mindless jobs C.no supplier partnerships D.inventory buffers between each workstation to minimize system downtime E.specialty workers with no​ cross-training

A. low space requirements

A large quantity and large variety of products are produced in A.mass customization. B.repetitive focus. C.process focus. D.product focus.

A. mass customization.

Product-focused processes: A.tend to have​ long, continuous production runs. B.allow more​ customization, but are not very efficient. C.apply only to service​ firms, not to manufacturers. D.are processes that accommodate a variety of products or customer groups. E.are profitable because customers demand​ flexibility, not specialization.

A. tend to have​ long, continuous production runs.

Prior to embarking on supply chain​ design, operations managers must first consider A."make-or-buy" and outsourcing decisions. B.how to select suppliers. C.how to manage supply chain inventory. D.what kind of distribution network to have.

A. ​"make-or-buy" and outsourcing decisions.

Prior to embarking on supply chain​ design, operations managers must first consider A."make-or-buy" and outsourcing decisions. B.how to select suppliers. C.what kind of distribution network to have. D.how to manage supply chain inventory.

A. ​"make-or-buy" and outsourcing decisions.

Which of the following statements is true regarding​ cross-sourcing? A.Cross-sourcing uses one supplier for a component and a second supplier for another​ component, where each supplier acts as a backup for the other. B.Cross-sourcing develops the ability to produce goods or services previously purchased or actually buying a supplier or distributor. C.Cross-sourcing enhances technological skills. D.Cross-sourcing describes suppliers who become part of a company coalition.

A. ​Cross-sourcing uses one supplier for a component and a second supplier for another​ component, where each supplier acts as a backup for the other.

In​ MRP, system nervousness is caused​ by: A.management's attempt to continually respond to minor changes in production requirements. B.management's attempt to evaluate alternative plans before making a decision. C.management's marking part of the master production schedule as​ "not to be​ rescheduled". D.the use of the​ lot-for-lot approach. E.the use of phantom bills of material.

A. ​management's attempt to continually respond to minor changes in production requirements.

Frito-Lay is to​ ________ focus as Dell Computer is to​ ________ focus. A.product, mass customization B.product, repetitive C.repetitive, product D.process, product E.process, repetitive

A. ​product, mass customization

Which of the following best represents the relationship between the master production schedule​ (MPS) and the aggregate​ plan? A.The MPS disaggregates the aggregate plan. B.The MPS is the same as the aggregate plan. C.The MPS precedes the aggregate plan in the planning process. D.There is no relationship between the MPS and the aggregate plan.

A.The MPS disaggregates the aggregate plan.

What is a list of quantities of​ components, ingredients, and materials required to make a​ product? A.bill-of-material B.master production schedule C.purchase order D.engineering change notice

A.bill-of-material

What is transferring a​ firm's activities that have traditionally been internal to external​ suppliers? A.outsourcing B.keiretsu network C.vertical integration D.make-or-buy

A.outsourcing

Which of the following allows a segment of the master schedule to be designated as​ "not to be​ rescheduled?" A.time fence B.freeze point C.pegging D.system nervousness

A.time fence

A specific product has demand during lead time of 100​ units, with a standard deviation during lead time of 25 units. What safety stock​ (approximately) provides an​ 85% service​ level? A.165 B.26 C.133 D.126 E.41

B. 26

JIT makes quality cheaper​ because: A.JIT adds more buffers to the system. B.JIT prevents long runs of defects. C.the cost of low quality can be hidden in inventory. D.B and C E.A, B and C

B. JIT prevents long runs of defects.

Which of the following statements regarding a pull system is​ TRUE? A.Large lots are pulled from upstream stations. B.Problems become more obvious. C.Work is pulled to the downstream stations before it is actually needed. D.Manufacturing cycle time is increased. E.None of the above is true of a pull system.

B. Problems become more obvious.

If a factory wants to cut its current lot size in​ half, by what proportion must setup cost​ change? A.Setup cost must also be cut in half from its current value. B.Setup cost must be cut to one fourth its current value. C.Cannot be determined. D.Setup cost must double from its current value. E.Setup cost must quadruple from its current value.

B. Setup cost must be cut to one fourth its current value.

Adding a complementary product to what is currently being produced is a demand management strategy used​ when: A.price increases have failed to bring about demand management. B.the existing product has seasonal or cyclical demand. C.efficiency exceeds 100 percent. D.demand exceeds capacity. E.capacity exceeds demand for a product that has stable demand.

B. the existing product has seasonal or cyclical demand.

One of the similarities between product focus and​ mass-customization is: A.the use of modules. B.the volume of outputs. C.many departments and many routings. D.the variety of outputs. E.All of the above are similarities.

B. the volume of outputs.

Which of the following would NOT generally be a motive for a firm to hold​ inventories? A.to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand B.to minimize holding costs C.to decouple various parts of the production process D.to take advantage of quantity discounts E.to hedge against inflation

B. to minimize holding costs

Harley​ Davidson: A.uses a large number of modules to build a small number of different bikes. B.uses work cells to feed its assembly line. C.uses product focused manufacturing. D.utilizes job shops to make each of its modules. E.All of the above are true.

B. uses work cells to feed its assembly line.

A lawnmower assembly plant uses a variety of​ nuts, bolts,​ screws, and other fasteners in its operation. Its supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule. This is an example of A.e-procurement. B.vendor-managed inventory. C.postponement. D.single stage control of replenishment.

B. ​vendor-managed inventory.

Which of the following​ lot-sizing techniques results in the lowest holding​ costs? A.EOQ B.Wagner-Whitin algorithm C.the quantity discount model D.lot-for-lot E.POQ

D. ​lot-for-lot

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? A.24 B.600 C.141 D.100 E.346

D. 100

Which of the following is specifically characterized by continuous and forced problem solving via a focus on throughput and reduced​ inventory? A.Material requirements planning​ (MRP) B.Toyota Production System​ (TPS) C.kanban D.just-in-time (JIT) E.Lean operations

D.Just-in-time (JIT)

Which of the following statements about quantity discounts is​ FALSE? A.The smaller the ordering​ cost, the less attractive a discount schedule will be. B.If carrying costs are expressed as a percentage of​ value, EOQ is larger at each lower price in the discount schedule. C.In inventory​ management, item cost becomes relevant to order quantity decisions when a quantity discount is available. D.The larger the annual​ demand, the less attractive a discount schedule will be. E.The​ cost-minimizing solution may or may not be where annual holding costs equal annual ordering costs.

D.The larger the annual​ demand, the less attractive a discount schedule will be. .

Which of the following products is likely to be assembled on a repetitive process​ line? A.custom cakes B.steel C.beer D.automobiles E.custom personal computers

D.automobiles

The purpose of safety stock is​ to: A.eliminate the likelihood of a stockout due to erroneous inventory tally. B.replace failed units with good ones. C.protect the firm from a sudden decrease in demand. D.control the likelihood of a stockout due to variable demand​ and/or lead time. E.eliminate the possibility of a stockout.

D.control the likelihood of a stockout due to variable demand​ and/or lead time.

What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a​ distributor? A.horizontal integration B.virtual companies C.outsourcing D.vertical integration

D.vertical integration

Which one of the following is a characteristic of a JIT​ partnership? A.third-party logistics never used B.maximal product specifications imposed on supplier C.active pursuit of vertical integration D.frequent deliveries in large lot quantities E.removal of incoming inspection

E. removal of incoming inspection

Product-focused processes: A.are processes that accommodate a variety of products or customer groups. B.allow more​ customization, but are not very efficient. C.apply only to service​ firms, not to manufacturers. D.are profitable because customers demand​ flexibility, not specialization. E.tend to have​ long, continuous production runs.

E. tend to have​ long, continuous production runs.

The crossover point is that production quantity​ where: A.the process no longer loses money. B.total costs equal total revenues for a process. C.fixed costs of a process are equal to its variable costs. D.variable costs of one process equal the variable costs of another process. E.total costs for one process equal total costs for another process.

E. total costs for one process equal total costs for another process.

Which of the following statement is NOT​ true? A.Probabilistic models relax the assumption that demand for a product is constant and certain. B.Having certain demand raises the possibility of a stockout. C.The service level is the complement of the probability of a stockout. D.Probabilistic models are a​ real-world adjustment because demand and lead time will not always be known and constant.

B.Having certain demand raises the possibility of a stockout.

Which of the following is FALSE regarding the links between JIT and​ quality? A.Inventory hides bad​ quality; JIT immediately exposes it. B.JIT increases the cost of obtaining good quality. C.If consistent quality​ exists, JIT allows firms to reduce all costs associated with inventory. D.JIT reduces the number of potential sources of error by shrinking queues and lead times. E.As quality​ improves, fewer inventory buffers are​ needed; in​ turn, JIT performs better.

B.JIT increases the cost of obtaining good quality.

Which of the following is NOT one of the assumptions of​ fixed-period systems? A.Items are independent of one another. B.Lead times are variable. C.The only relevant costs are the ordering and holding costs. D.Lead times are known.

B.Lead times are variable.

​Low-level coding means​ that: A.a final item has only a few levels in the BOM structure. B.a component item is coded at the lowest level at which it appears in the BOM structure. C.the top level of the BOM is below level zero and that BOMs are not organized around the finished product. D.the code being used is the code for the lowest level in the BOM structure. E.the​ lowest-paid staff member in the production department performs the coding.

B.a component item is coded at the lowest level at which it appears in the BOM structure.

A​ single-period inventory model is NOT applicable for A.newspapers. B.furniture. C.seasonal goods. D.milk.

B.furniture.

In mass service and professional​ service, the operations manager should focus extensively​ on: A.sophisticated scheduling. B.human resources. C.equipment maintenance. D.automation. E.cost-cutting initiatives.

B.human resources.

A specific product has demand during lead time of 100​ units, with a standard deviation during lead time of 25 units. What safety stock​ (approximately) provides an​ 85% service​ level? A.126 B.133 C.26 D.165 E.41

C. 26

A production order quantity problem has a daily demand rate​ = 10 and a daily production rate​ = 50. The production order quantity for this problem is approximately 750 units. What is the average inventory for this​ problem? A.61 B.245 C.300 D.375 E.600

C. 300

A work system has five stations that have process times of​ 5, 9,​ 4, 6, and 8. What is the throughput time of the​ system? A.18 B.9 C.32 D.7 E.35

C. 32

Christopher's Cranks uses a machine that can produce 100 cranks per hour. The firm operates 12 hours per​ day, five days per week. Due to regularly scheduled preventive​ maintenance, the firm expects the machine to be running during approximately​ 95% of the available time. Based on experience with other​ products, the firm expects to achieve an efficiency level for the cranks of​ 75%. What is the expected weekly output of cranks for this​ company? A.5100 B.4845 C.4275 D.5700 E.8421

C. 4275

Which of the following could reduce distribution​ risk? A.use multiple suppliers B.cross-country diversification C.careful​ selection, monitoring and effective contracts with penalties D.secure IT systems

C. careful​ selection, monitoring and effective contracts with penalties

Utilization will typically be lower than efficiency​ because: A.effective capacity is greater than design capacity. B.effective capacity equals design capacity. C.effective capacity is less than design capacity. D.expected output is less than actual output. E.expected output is less than rated capacity.

C. effective capacity is less than design capacity.

Utilization will typically be lower than efficiency​ because: A.effective capacity is greater than design capacity. B.expected output is less than rated capacity. C.effective capacity is less than design capacity. D.effective capacity equals design capacity. E.expected output is less than actual output.

C. effective capacity is less than design capacity.

Which of the following statements is NOT one of the response strategy​ decisions? A.use buffer stocks to ensure speedy supply B.low setup time C.gather and communicate market research data D.fast transportation

C. gather and communicate market research data

The advantage of having many potential suppliers is their willingness to A.provide innovations. B.provide technical expertise. C.offer lower prices in the short term. D.participate in JIT.

C. offer lower prices in the short term.

Which of the following is an element of inventory holding​ costs? A.material handling costs B.investment costs C.pilferage, scrap, and obsolescence D.housing costs E.All of the above are elements of inventory holding costs.

E.All of the above are elements of inventory holding costs.

Which of the following statements regarding the production order quantity model is​ TRUE? A.It applies only to items produced in the​ firm's own production departments. B.It minimizes inventory. C.It relaxes the assumption that the demand rate is constant. D.It minimizes the total production costs. E.It relaxes the assumption that all the order quantity is received at one time.

E.It relaxes the assumption that all the order quantity is received at one time

Which of the following is not one of the strategies for improving service​ productivity? A.self-service B.automation C.separation D.scheduling E.mass customization

E.mass customization

Capacity decisions are based on technological​ concerns, not demand True False

False

Utilization is the number of units a facility can​ hold, receive,​ store, or produce in a period of time. True False

False

All EXCEPT which of the following statements about ABC analysis are​ true? A.ABC analysis categorizes​ on-hand inventory into three groups based on annual dollar volume. B.ABC analysis is an application of the Pareto principle. C.ABC analysis suggests that all items require the same high degree of control. D.In ABC​ analysis, inventory may be categorized by measures other than dollar volume. E.ABC analysis suggests that there are the critical few and the trivial many inventory items.

C.ABC analysis suggests that all items require the same high degree of control.

Which of these statements about the production order quantity model is​ A.All else​ equal, the smaller the ratio of demand rate to production​ rate, the smaller is the production order quantity. B.Because receipt is​ noninstantaneous, some units are used immediately and not stored in inventory. C.Average inventory is more than​ one-half of the production order quantity. D.The production order quantity model is appropriate when the assumptions of the basic EOQ model are​ met, except that receipt is noninstantaneous. E.None of the above is false.

C.Average inventory is more than​ one-half of the production order quantity.MR

What is the term of shipping directly from the supplier to the end consumer rather than from the​ seller, saving both time and reshipping​ costs? A.Vendor-managed inventory B.Direct shipping C.Drop shipping D.Postponement

C.Drop shipping

Consider a production line with five stations. Station 1 can produce a unit in 9 minutes. Station 2 can produce a unit in 10 minutes. Station 3 has two identical​ machines, each of which can process a unit in 12 minutes​ (each unit only needs to be processed on one of the two​ machines). Station 4 can produce a unit in 11 minutes. Station 5 can produce a unit in 8 minutes. Which station is the bottleneck​ station? A.Station 2 B.Station 3 C.Station 4 D.Station 1 E.Station 5

C.Station 4

How can a reduction of​ in-transit inventory be​ encouraged? A.use of​ trains, not trucks B.low carrying costs C.supplier location near plants D.low-cost, global suppliers E.high setup costs

C.supplier location near plants

Christopher's Cranks uses a machine that can produce 100 cranks per hour. The firm operates 12 hours per​ day, five days per week. Due to regularly scheduled preventive​ maintenance, the firm expects the machine to be running during approximately​ 95% of the available time. Based on experience with other​ products, the firm expects to achieve an efficiency level for the cranks of​ 75%. What is the expected weekly output of cranks for this​ company? A.4845 B.8421 C.5700 D.4275 E.5100

D. 4275

Which of the following industries is most likely to have low equipment​ utilization? A.auto manufacturing B.steel manufacturing C.commercial baking D.restaurants. E.television manufacturing

D. restaurants.

The minimum record accuracy required for successful MRP is approximately which of the​ following? A.90% B.95% C.lower than​ 90% D.99% E.​97%

D. ​99%

An organization whose capacity is on the portion of the average unit cost curve that increases as output​ rises: A.has utilization higher than efficiency. B.has a facility that is above optimum operating level and should reduce facility size. C.is enjoying economies of scale. D.has a facility that is at optimum operating level. E.has a facility that is below optimum operating level and should build a larger facility.

has a facility that is above optimum operating level and should reduce facility size.

A response strategy requires suppliers be selected based primarily on A.being willing to share information. B.product development skills. C.cost. D.capacity, speed, and flexibility.

​capacity, speed, and flexibility.

Which of the following statements about ABC analysis is​ FALSE? A.ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings. B.Criteria other than annual dollar​ volume, such as high holding cost or delivery​ problems, can determine item classification in ABC analysis. C.In ABC​ analysis, forecasting methods for​ "C" items may be less sophisticated than for​ "A" items. D.In ABC​ analysis, "A" items should have tighter physical inventory control than​ "B" or​ "C" items have. E.ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings.

A. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.

Which of the following statements about ABC analysis is​ FALSE? A.ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings. B.Criteria other than annual dollar​ volume, such as high holding cost or delivery​ problems, can determine item classification in ABC analysis. C.ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings. D.In ABC​ analysis, forecasting methods for​ "C" items may be less sophisticated than for​ "A" items. E.In ABC​ analysis, "A" items should have tighter physical inventory control than​ "B" or​ "C" items have.

A. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.

Which of the following statements is NOT​ true? A.An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting. B.Supply chain management describes the coordination of all supply chain​ activities, starting with raw​ materials, and ending with a satisfied customer. C.A supply chain includes​ suppliers; manufacturers​ and/or service​ providers; and​ distributors, wholesalers,​ and/or retailers who deliver the product​ and/or service to the final customer. D.The objective of supply chain management is to coordinate activities within the supply chain to maximize the supply​ chain's competitive advantage and benefits to the ultimate consumer.

A. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.

What is an information system for identifying and planning the​ enterprise-wide resources needed to​ take, make,​ ship, and account for customer​ orders? A.ERP B.MRP C.SCM D.EIS

A. ERP

JIT makes quality cheaper​ because: A.JIT prevents long runs of defects. B.the cost of low quality can be hidden in inventory. C.JIT adds more buffers to the system. D.B and C E. A, B and C

A. JIT prevents long runs of defects.

What is a dependent demand technique that uses a​ bill-of-material, inventory, expected​ receipts, and a master production schedule to determine material​ requirements? A.Material requirements planning​ (MRP) B.Material requirements method​ (MRM) C.Periodic order planning​ (POP) D.Economic order method​ (EOM)

A. Material requirements planning​ (MRP)

Which of the following statements about quantity discounts is​ FALSE? A.The larger the annual​ demand, the less attractive a discount schedule will be. B.The​ cost-minimizing solution may or may not be where annual holding costs equal annual ordering costs. C.The smaller the ordering​ cost, the less attractive a discount schedule will be. D.If carrying costs are expressed as a percentage of​ value, EOQ is larger at each lower price in the discount schedule. E.In inventory​ management, item cost becomes relevant to order quantity decisions when a quantity discount is available.

A. The larger the annual​ demand, the less attractive a discount schedule will be.

Which of the following statements is NOT true regarding the bullwhip​ effect? A.Bullwhip fluctuations in the supply chain decrease customer service and profitability. B.The bullwhip effect occurs as order are relayed from​ retails, to​ distributors, to​ wholesalers, to​ manufacturers, with fluctuations decreasing at each step in the sequence. C.Bullwhip fluctuations in the supply chain increase the costs associated with​ inventory, transportation, shipping and receiving. D.Inaccurate information results in distortions and​ fluctuations, causing what is known as the bullwhip effect.

B. The bullwhip effect occurs as order are relayed from​ retails, to​ distributors, to​ wholesalers, to​ manufacturers, with fluctuations decreasing at each step in the sequence.

Which of the following statements is TRUE about the MRP plan when using​ lot-for-lot ordering? A.The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent. B.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. C.The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent. D.The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent. E.All of the above are true.

B. 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.

What is a​ long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship. A.drop shipping B.blanket order C.advanced shipping notice D.postponement

B. blanket order

By​ convention, what is the top level in a product​ structure? A.level 100 B.level 0 C.level 1 D.level T E.level 10

B. level 0

Which of the following industries has the highest supply chain cost as a percentage of​ sales? A.automobile B.petroleum C.metals D.restaurants

B. petroleum

Which of the following mitigation tactics is NOT designed to reduce the risk of information loss or​ distortion? A.redundant databases B.training of supply chain partners on the proper interpretations and use of information C.alternate sourcing D.secure IT systems

C. alternate sourcing

What is required for an MRP system to​ work? A.A small bill of material B.Long lead times C.Accurate inventory records D.A high number of purchase orders outstanding

C. Accurate inventory records

Which of the following is one of the four principles of bottleneck​ management? A.Lost time at a​ non-bottleneck is lost system capacity. B.Increasing capacity at bottleneck stations is a mirage. C.Release work orders to the system at the​ bottleneck's capacity pace. D.Bottlenecks should be moved to the end of the system process. E.Increased​ non-bottleneck capacity is increased system capacity.

C. Release work orders to the system at the​ bottleneck's capacity pace.

Which of the following is FALSE regarding repetitive​ processes? A.They use modules. B.They are the classic assembly lines. C.They allow easy switching from one product to the other. D.They include the assembly of basically all automobiles. E.They have more structure and less flexibility than a job shop layout.

C. They allow easy switching from one product to the other.

​High-volume, low-variety production is best suited for which of the following process​ strategies? A.repetitive focus B.mass customization C.product focus D.process focus

C. product focus

Which of the following is generally found in most Lean​ environments? A.push systems B.a push system for purchased parts and a pull system for manufactured parts C.pull systems D.a push or pull​ system, depending upon the rate of demand E.a push system for high margin items and a pull system for low margin items

C. pull systems

Adding a complementary product to what is currently being produced is a demand management strategy used​ when: A.capacity exceeds demand for a product that has stable demand. B.demand exceeds capacity. C.the existing product has seasonal or cyclical demand. D.price increases have failed to bring about demand management. E.efficiency exceeds 100 percent.

C. the existing product has seasonal or cyclical demand.

Adding a complementary product to what is currently being produced is a demand management strategy used​ when: A.demand exceeds capacity. B.capacity exceeds demand for a product that has stable demand. C.the existing product has seasonal or cyclical demand. D.efficiency exceeds 100 percent. E.price increases have failed to bring about demand management.

C. the existing product has seasonal or cyclical demand.

What is the primary purpose of the basic economic order quantity model shown​ below? ​Q*​ = square root of 2DS/H A.to maximize the customer service level B.to minimize the sum of carrying cost and holding cost C.to minimize the sum of setup cost and holding cost D.to calculate the reorder​ point, so that replenishments take place at the proper time E.to calculate the optimum safety stock

C. to minimize the sum of setup cost and holding cost

The crossover point is that production quantity​ where: A.total costs equal total revenues for a process. B.variable costs of one process equal the variable costs of another process. C.total costs for one process equal total costs for another process. D.the process no longer loses money. E.fixed costs of a process are equal to its variable costs.

C. total costs for one process equal total costs for another process.

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? A.1350 students B.1710 students C. 78.9% D.90% E.87.7%

C. ​78.9%

A​ firm's probability of a stockout for a popular item is​ 2%. Given this​ information, what is its service level for this popular​ item? A.2% B.4% C.98% D.96%

C. ​98%

A process focused facility is A.a production facility organized around products. B.based on the classical assembly line. C.a​ rapid, low-cost production facility that caters to constantly changing unique customer desires. D.a production facility organized around specific activities.

D. a production facility organized around specific activities.

A supply chain ends with A.distributors. B.suppliers. C.manufacturers. D.a satisfied customer.

D. a satisfied customer.

Kanban is associated with all EXCEPT which of the​ following? A.signals, such as​ cards, lights, or flags B.moving inventory only as needed C.reductions in inventory D.increased material handling E.small lot sizes

D. increased material handling

Characteristics of​ just-in-time partnerships do NOT​ include: A.produce with zero defects. B.long-term contracts. C.removal of​ in-transit inventory. D.large lot sizes to save on setup costs and to gain quantity discounts. E.focus on core competencies.

D. large lot sizes to save on setup costs and to gain quantity discounts.

By​ convention, what is the top level in a product​ structure? A.level 10 B.level 100 C.level 1 D.level 0 E.level T

D. level 0

Which of the following phrases best describes process​ focus? A.Operators are less broadly skilled. B.high fixed​ costs, low variable costs C.Finished goods are usually made to a forecast and stored. D.low​ volume, high variety E.low inventory

D. low​ volume, high variety

A grill assembly takes 20 washers. Instead of listing these washers​ separately, they are grouped into a single kit for production. How is the bill of material for the washers​ classified? A.component bill B.modular bill C.low-level bill D.planning bill E.phantom bill

D. planning bill

Which of the following is NOT a goal of JIT​ partnerships? A.removal of unnecessary activities B.removal of​ in-transit inventory C.obtain improved quality and reliability D.removal of​ in-plant inventory E.All of the above are goals of JIT partnerships.

E. All of the above are goals of JIT partnerships.

Which of the following is TRUE regarding the steps to reducing setup​ times? A.The cycle of steps is repeated until setup time is reduced to under a minute. B.The first step involves performing as much setup preparation as possible while the​ process/machine is operating. C.The standardization of both tooling and work procedures is advantageous to setup time reduction. D.Move material closer and improve material handling are done before operator training. E.All of the above are true.

E. All of the above are true.

Which of the following statements about the basic EOQ model is​ TRUE? A.If the ordering cost were to​ double, the EOQ would rise. B.If annual demand were to​ double, the number of orders per year would increase. C.If the carrying cost were to​ increase, the EOQ would fall. D.If annual demand were to​ double, the EOQ would increase. E.All of the above statements are true.

E. All of the above statements are true.

Which one of the following statements is TRUE regarding JIT​ inventory? A.It increases if setup costs decrease. B.It hides variability. C.It is minimized with large lot production. D.It exists just in case something goes wrong. E.It is the minimum inventory necessary to keep a perfect system running.

E. It is the minimum inventory necessary to keep a perfect system running.

ABC analysis divides​ on-hand inventory into three​ classes, generally based upon which of the​ following? A.the number of units on hand B.unit price C.annual demand D.item quality E.annual dollar volume

E. annual dollar volume

Price changes are useful for matching the level of demand to the capacity of a facility. True False

True