ISDS 3115 FINAL

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Arnold Palmer Hospital uses which​ focus?

process

A disadvantage of the​ fixed-period inventory system is​ that:

since there is no count of inventory during the review​ period, a stockout is possible.

How can a reduction of​ in-transit inventory be​ encouraged?

supplier location near plants

A disadvantage of the​ "few suppliers" sourcing strategy​ is:

the high cost of changing partners.

​Break-even analysis can be used by a firm that produces more than one​ product, but:

the​ break-even point depends upon the proportion of sales generated by each of the products.

Which of the following would NOT generally be a motive for a firm to hold​ inventories?

to minimize holding costs

Which of the following is one of the four principles of bottleneck​ management?

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

In the basic EOQ​ model, if D​ = 6000 per​ year, S​ = $100, and holding cost​ = $10 per unit per​ month, what is the economic order​ quantity?

100

Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are​ $90,000, and its variable cost is​ $15 per unit. The revenue is​ $23 per unit. What is the​ break-even point for machine​ A?

11,250 UNITS

The Academic Computing Center has five trainers available in its computer labs to provide training sessions to students. Assume that the design capacity of the system is 1900 students per semester and that effective capacity equals​ 90% of design capacity. If the number of students who actually got their orientation session is​ 1500, what is the utilization of the​ system? Part 2

78.9%

Which of the following statements about ABC analysis is​ FALSE?

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

Lean operations are known for​ their: A. employee development. B. supplier partnerships. C. supplier education. D. challenging jobs. E. All of the above are attributes of lean operations. Your answer is correct.

All of the above

Outsourcing A. transfers traditional internal activities to outside vendors. B. allows the outsourcing firm to focus on its key success factors. C. utilizes the efficiency that comes with specialization. D. All of the above are true of outsourcing. Your answer is correct. E. None of the above is true of outsourcing.

All of the above

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

All of the above are elements of inventory holding costs.

Which of these statements about the production order quantity model is​ FALSE?

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

Which one of the following statements is TRUE regarding JIT​ inventory?

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

Which of the following statements regarding a pull system is​ TRUE? Part 2 A. Manufacturing cycle time is increased. B. Large lots are pulled from upstream stations. C. Work is pulled to the downstream stations before it is actually needed. D. Problems become more obvious. Your answer is correct. E. None of the above is true of a pull system.

Problems become more obvious.

Which of the following products is likely to be assembled on a repetitive process​ line?

automobiles

Which of the following statements about quantity discounts is​ FALSE?

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

A grocery store is attempting to implement a kanban system. Which of the following would NOT be an application of​ kanbans? Part 2

The meat department stocking up on turkeys before Thanksgiving.

Which of the following statements is TRUE about the MRP plan when using​ lot-for-lot ordering?

The quantity of gross requirements for a child item is equal to the quantity of planned order​ release(s) multiplied by the number of child items used in the parent assembly.

A work cell at Chris Ellis Commercial Laundry has a workstation with two​ machines, and each unit produced at the station needs to be processed by both of the machines.​ (The same unit cannot be worked on by both machines​ simultaneously.) Each machine has a production capacity of 4 units per hour.

The throughput time of the work cell=30 minutes per unit

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

They allow easy switching from one product to the other. Your answer is correct.

Low-level coding means​ that:

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

The fixed−period inventory system requires more safety stock than a​ fixed-quantity system​ because:

a stockout can occur during the review period as well as during the lead time.

The bullwhip​ effect: A. increases the costs associated with inventory in the supply chain. B. occurs as orders are relayed from retailers to distributors to wholesalers to manufacturers. C. occurs because of distortions in information in the supply chain. D. results in increasing fluctuations at each step of the sequence. E. All of the above are true.

all of the above

ABC analysis divides​ on-hand inventory into three​ classes, generally based upon which of the​ following?

annual dollar volume

Enterprise resource planning​ (ERP):

automates and integrates the majority of business processes.

A fried chicken​ fast-food chain that acquired feed mills and poultry farms has performed which of the​ following?

backward integration

The purpose of safety stock is​ to:

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

he purpose of safety stock is​ to:

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

In the mass service and service factory quadrants of the service process​ matrix, the operations manager could focus on all of the following​ except:

customization.

Utilization will typically be lower than efficiency​ because:

effective capacity is less than design capacity

The supply chain management opportunity called postponement involves delaying deliveries to avoid accumulation of inventory at the​ customer's site.

false

In mass service and professional​ service, the operations manager should focus extensively​ on:

human resources

Which of the following is NOT an opportunity for effective management in the supply​ chain?

local optimization

Which of the following​ lot-sizing techniques results in the lowest holding​ costs?

lot-for-lot

Which of the following phrases best describes process​ focus?

low​ volume, high variety

Which of the following is not one of the strategies for improving service​ productivity?

mass customization

The Theory of Constraints​ (TOC) strives to reduce the effect of constraints​ by:

offloading work from constrained workstations. + increasing constrained workstation capability.

Hewlett-Packard delays customization of its laser printers as long as possible. This is an example of which of the​ following?

postponement

What is the practice of keeping a product generic as long as possible before​ customizing?

postponenment

In​ MRP, the number of units projected to be available at the beginning of each time period refers​ to:

projected on hand.

Which one of the following is a characteristic of a JIT​ partnership?

removal of incoming inspection

An assembly line is an example of​ a:

repetitive process

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

restaurants

Savings in the supply chain exert more leverage as the​ firm's net profit margin decreases.

true

The bullwhip effect refers to the increasing fluctuations in orders that often occur as orders move through the supply chain.

true

Which one of the following is not a benefit of JIT​ implementation?

variability increase

Which of the following are all strategies for improving productivity in​ services?

​separation, self-service,​ automation, and scheduling


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