ISDS Test 2

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Intangible costs include which of the​ following?

D a. availability of public transportation b. quality of education c. quality of prospective employees d. All of the above.

Which of the following is TRUE of random​ stocking?

E a. Its results always minimize handling costs. b. Products have their own permanent storage spot. c. Each pick can be of only one product. d. Because items are stocked​ randomly, accurate inventory records are not necessary. e. None of the above is true.

Which of the following is NOT one of the techniques for building employee​ empowerment?

Eliminate formal organization structures such as teams and quality circles.

A bank office with five​ tellers, each with a separate line of​ customers, exhibits the characteristics of a multiphase queuing system.

False

A focused work center is well suited to the production of a large family of products requiring similar​ processing, even if their demands are not very stable.

False

A​ waiting-line system with one waiting line and three sequential processing stages is a​ multiple-server, single-phase system.

False

Capacity decisions are based on technological concerns, not demand forecasts.

False

The greater the margin by which the arrival rate exceeds the service​ rate, the better the performance of the waiting line.

False

The study of waiting lines calculates the cost of providing good service but does not value the cost of​ customers' waiting time.

False

​Product-oriented layouts tend to have high levels of​ work-in-process inventories.

False

Which of the following is the best example of the proximity rule​ that, for service​ firms, proximity to market is the most important location​ factor?

Few people will travel​ out-of state for a routine haircut.

A c​-chart is based on the

Poisson distribution

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.

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?

Station 4

A​ process-oriented layout is the traditional way to support a product differentiation strategy.

True

One drawback of a​ product-oriented layout is that work stoppage at any one point ties up the whole operation.

True

One reason for a firm locating near its competitors is the presence of a major resource it needs.

True

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

True

The most common tactic to arrange departments in a​ process-oriented layout is to minimize material handling costs.

True

The ratio of labor cost per day to​ productivity, in units per​ day, is the labor cost per unit.

True

Unfavorable exchange rates can offset other savings in a location decision.

True

​Cross-docking processes items as they are​ received, rather than placing them in storage.

True

What is the reasoning behind setting the upper and lower control limits plus or minus n3sigma Subscript x overbar from the​ mean?

We know that​ 99.73% of natural variation is contained within plus or minus3sigma Subscript x overbar​, and thus any data point outside of the limits is likely due to assignable variation

Traffic counts and purchasing power analysis of drawing area are techniques associated​ with:

a retail or professional service location decision.

A system in which the customer receives service from only one station and then exits the system is which of the​ following?

a single-phase system

A good layout requires​ determining:

a. cost of moving between various work areas. b. capacity and space requirements. c. environment and aesthetics. d. material handling equipment. e. All of the above.

Of the four approaches to capacity​ expansion, the approach that​ "straddles" demand:

a. uses incremental expansion. b. works best when demand is not growing but is stable. c. some times leads​ demand, and at other times lags. d. uses​ one-step expansion. e. Choices A and C are both correct.

The common measures of a queuing​ system's performance​ include:

average time each customer spends in the​ system, probability that the service system will be​ idle, and average time each customer spends in the queue.

Which of the following is NOT one of​ McDonald's "seven major​ innovations"?

the Happy Meal

Adding a complementary product to what is currently being produced is a demand management strategy used​ when:

the existing product has seasonal or cyclical demand.

What is the probability of accepting a bad lot?

type II error (beta)

​"A special arrangement of machinery and equipment to focus on production of a single product or group of related​ products" describes what layout​ type?

work cell

Which of these factors would be considered when making a location decision at the site​ level?

zoning regulations

An employee produces 10 parts during a shift in which he made​ $90. What is the labor content of the​ product?

$9

A work system has five stations that have process times of​ 5, 9,​ 14, 9, and 8. What is the bottleneck​ time?

14

An assembly line has 10 stations with times of​ 1, 2,​ 3, 4,​ ..., 10, respectively. What is the bottleneck​ time?

18.18% of the throughput time

​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?

4275

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?

78.9%

Which of the following represents a customer who reneged due to the waiting​ line?

A customer at a gas station went inside to buy a​ soda, but after waiting in line for a minute left the soda behind and went outside​ empty-handed.

Cause-and-effect diagrams are also known as

fish-bone charts

One of the major advantages of​ process-oriented layouts​ is:

flexibility in equipment and labor assignment.

In acceptance​ sampling, the​ producer's risk is the risk of having a

good lot rejected.

An organization whose capacity is on the portion of the average unit cost curve that increases as output​ rises:

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

Why is Singapore used as a cluster for computer hardware​ manufacturing?

high technological penetration rates and per capita GDP

Which of the following TQM tools would be best suited for displaying the number of students majoring in each business​ discipline?

histogram

The R​-chart

is used to indicate gains or losses in dispersion.

A hospital's layout most closely resembles which of the following?

job shop

Which of the following is the Japanese term used to describe continuous improvement​ efforts?

kaizen

The reason fast food restaurants often are found in close proximity to each other​ is:

location clustering near high traffic flows.

The main goal of retail layout​ is:

maximizing profitability per square foot of floor space.

One hundred percent inspection

means that every part is checked to see whether or not it is defective.

Process capability

means that the natural variation of the process must be small enough to produce products that meet the standard.

A college​ registrar's office requires you to first visit with one of three advisors and then with one of two financial professionals. This system is best described as which of the​ following?

multiple-server, multiphase system

A concert​ hall, employing both ticket takers and ushers to seat​ patrons, behaves typically as which of the​ following?

multiple-server, multiphase system

Governmental attitudes toward issues such as private​ property, intellectual​ property, zoning,​ pollution, and employment stability may change over time. What is the term associated with this​ phenomenon?

political risk

Which type of layout features departments or other functional groupings in which similar activities are​ performed?

process-oriented

What layout strategy deals with​ low-volume, high-variety​ production?

process-oriented layout

The​ ________ layout's main objective is to equalize the task time for each station.

product oriented

The objective of a statistical process control​ (SPC) system is to

provide a statistical signal when assignable causes of variation are present.

Taguchi's quality loss function is based on a

quadratic equation

Which of the following is NOT a common TQM​ tool?

queuing models

In location​ planning, environmental​ regulations, cost and availability of​ utilities, and taxes​ are:

regional/community factors.

Which of the following costs is NOT a cost of​ quality?

research and development

Which of the following is NOT among the eight determinants of revenue and volume for a service​ firm?

shipment cost of finished goods

Which one of the following is NOT a characteristic of a Model B or​ M/M/S system?

single server

Which of the following reduces product​ handling, inventory, and facility​ costs, but requires both​ (1) tight scheduling and​ (2) accurate inbound product​ information?

cross-docking

Which of the following is an example of a finite arrival​ population?

copy machines in a copying shop that break down

When making a location decision at the​ region/community level, which of these would be​ considered?

cost and availability of utilities

Which one of the following is NOT a characteristic of a Model C or​ M/D/1 system?

exponential service time pattern


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