MIS - Final Exam Review

Which of the following is an example of a postponement tactic? mass customization standardization process mapping service blueprinting delayed differentiation

delayed differentiation

Although it is generally the case that service systems have enough capacity, waiting lines result when __________ exceeds capacity for periods of time. homogeneity variability price demand heterogeneity

demand

The comprehensive approach used in lean systems to deal with quality includes: designing quality into products and processes. insisting vendors provide high-quality materials. making workers responsible for producing high quality. designing in quality, insisting on quality materials, and making workers responsible for quality. 100 percent inspection of raw materials, work-in-process, and finished goods.

designing in quality, insisting on quality materials, and making workers responsible for quality.

The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. What would the potential profit be if he were to split 4,000 cords of wood with this machine? $200,000 $50,000 $0 $75,000 $100,000

$50,000

Increasing capacity just before a bottleneck operation will improve the output of the process. True False

False

Kanban is the Japanese term for autonomation. True False

False

Managing supply chain visibility involves making sure that potential supply chain partners are aware of your organization's needs. True False

False

Measurement of productivity in service is more straightforward than in manufacturing since it is not necessary to take into account the cost of materials. True False

False

Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization's goods or services. True False

False

Robust design describes a product that will perform satisfactorily so long as it is used in a very narrow range of conditions. True False

False

The objective of inventory management is to minimize the cost of holding inventory. True False

False

Time-series techniques involve the identification of explanatory variables that can be used to predict future demand. True False

False

Carrying cost is a function of order size; the larger the order, the higher the inventory carrying cost. True False

True

Increased setup times equal increased work-in-process inventories. True False

True

Interest, insurance, and opportunity costs are all associated with holding costs. True False

True

Profit margins tend to be inversely related to inventory turns. True False

True

Some organizations use a matrix organization to integrate the activities of specialists within a functional framework. True False

True

Strategic partnering is encouraged when two or more business organizations have complementary products or services that would benefit the others. True False

True

The basic EOQ model ignores the purchasing cost. True False

True

The process of dismantling and inspecting a competitor's product to discover improvements is called reverse engineering. True False

True

The two basic issues in inventory are how much to order and when to order. True False

True

When to order can be calculated by the ROP and expressed as a quantity. True False

True

In which of these settings would one be least likely to encounter first-come service? a fast-food restaurant a doctor's office a hotel check-in operation an emergency room a check-out line

an emergency room

A single-bay car wash with a Poisson arrival rate and an exponential service time has cars arriving an average of 10 minutes apart, and an average service time of four minutes. The system utilization is: .24. .40. .67. 2.50. 1.25.

.40.

The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new variety of rosebush, which she could then sell for $6 each. Per-unit variable cost would be $3. How many rosebushes would she have to produce and sell in order to break even? 1,600 2,000 1,500 2,400 1,000

2,000

A multiple-channel queuing system with a Poisson arrival rate and exponential service time has an average arrival rate of four customers per hour and an average service time of 18 minutes per customer. The minimum number of servers required to avoid an overloaded system is: 1. 2. 3. 4. 5.

2.

In the basic EOQ model, if annual demand is 50, carrying cost is $2, and ordering cost is $15, EOQ is approximately: 11. 20. 24. 28. 375.

28.

Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is three days, and the pepperoni itself costs $3.00 per pound. If she were to order 80 pounds of pepperoni at a time, what would be the average inventory level? 20 pounds 40 pounds 60 pounds 80 pounds 100 pounds

40 pounds

A single-channel queuing system has an average service time of eight minutes and an average time between arrivals of 10 minutes. The arrival rate is: 6 per hour. 7.5 per hour. 8 per hour. 10 per hour. 12.5 per hour.

6 per hour.

Given the following information, what would efficiency be? Effective capacity = 50 units per day Design capacity = 100 units per day Actual output = 30 units per day 40 percent 50 percent 80 percent 90 percent 60 percent

60 percent

Global supply chains make purchasing easier because there are more options. True False

False

Companies are either producing goods or delivering services. This means that only one of the two types of operations management strategies are used. True False

False

A hierarchical (vertical) listing of what must be done during a project is called matrix. True False

False

A moving average forecast tends to be more responsive to changes in the data series when more data points are included in the average. True False

False

A popular tool for planning and scheduling simple projects, and for initial planning on more complex projects, is the: activity-on-arrows network. activity-on-nodes network. Gantt chart. critical path method. program evaluation and review technique.

Gantt chart.

If a manager increases system utilization (assuming no change in the customer arrival rate) what happens to the customer waiting time? It increases exponentially. It increases proportionally. It decreases proportionally. It decreases exponentially. No change.

It increases exponentially.

Which of these pairs of functions would tend to be affected most dramatically by a product or service redesign? Finance and Human Resources Finance and Engineering Operations and Accounting Marketing and Operations Engineering and Accounting

Marketing and Operations

_________ has/have helped firms to concentrate on their core business. Supply chains Scheduling Outsourcing ERP Lean production

Outsourcing

The Five S's do not include: Sort. Straighten. Sanitize. Sweep. Standardize.

Sanitize.

A forecast based on the previous forecast plus a percentage of the forecast error is: a centered moving average forecast. an associative forecast. a naive forecast. an exponentially smoothed forecast. a simple moving average forecast.

an exponentially smoothed forecast.

Small changes in consumer demand can result in large variations in orders placed because of the: supply chain. safety stock requirement. lead time effect. bullwhip effect. FCFS scheduling.

bullwhip effect.

The value of standardizing some or all of a service is demonstrated by the shorter wait times observed in models with: constant demand rates. finite queues. infinite sources. finite sources. constant service times.

constant service times.

To _____ an activity means to shorten the time it will take. speed fund crash aggregate matrix

crash

Which of the following does not contribute to reduced setup time and cost? standardized setup tools standardized setup equipment custom setup procedures for each product use of multipurpose equipment or attachments use of group technology

custom setup procedures for each product

Which of the following is not characteristic of preventive maintenance in lean systems? maintaining equipment in good operating condition replacing parts when they are worn but before they fail workers maintaining their own equipment eliminating supplies of spare parts to reduce capital investment perceiving breakdowns as an opportunity for improvement

eliminating supplies of spare parts to reduce capital investment

The type of layout in which workers, materials, and equipment are moved to the product as needed is: batch. process. mass. product. fixed-position.

fixed-position.

The more __________ a company's supply chain, the more difficult it is to ensure that the supply chain is managed ethically. interconnected global visible shortened competitive

global

Which of the following would not usually be a main factor in selecting a vendor? location price quality inventory turnover vendor services

inventory turnover

Which one of the following is not a major component of TQM? customer focus employee empowerment lean manufacturing and JIT continuous improvement none of the above

lean manufacturing and JIT

With regard to suppliers, lean systems typically require: delivery of large lots at regular intervals. buyer inspection of goods and materials. multiple sources from which to purchase. long-term relationships and commitments. the lowest price possible.

long-term relationships and commitments.

In a project network, the critical path is the sequence of activities which has the: most activities. most nodes. most events. longest duration. greatest variance.

longest duration.

The decision to outsource opens the firm up to certain risks, among them _________ and ________. lower costs; fewer task-specific investments greater capacity rigidity; tight knowledge control loss of direct control over operations; need to disclose proprietary information access to greater expertise; greater demand variability higher marketing costs; small orders

loss of direct control over operations; need to disclose proprietary information

Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____________ is leading to increased emphasis on ____________ management. outsourcing; supply chain internationalization; intercultural offshoring; lean downsizing; total quality optimizing; inventory

outsourcing; supply chain

Which of the following is not a benefit of centralized purchasing? potential for quantity discounts better service from suppliers quick response to local needs potential for use of purchasing specialists supplier research

quick response to local needs

A customer growing frustrated with the wait and leaving the facility (without being served) is an example of: reneging. utilizing. balking. jockeying. departing.

reneging.

Although transitioning to a lean system can be a powerful means of improving performance, it is generally thought that using __________ along with lean can lead to even better results. kaizen ERP six sigma JIT jidoka

six sigma

A basic difference between infinite-source and finite-source queuing models is the: number of servers. average waiting time. arrival distribution. size of potential calling population. processing rate.

size of potential calling population.

Production systems with customized outputs typically have relatively: low unit costs. high volumes of output. skilled workers. fast work movement. high amount of specialized equipment.

skilled workers.

Job shops tend to be __________ while continuous processes tend to be __________. in services; in manufacturing standardized; customized low cost-per-unit; high cost-per-unit short-term and capital intensive; long-term and labor intensive small scale and flexible; large-scale and inflexible

small scale and flexible; large-scale and inflexible

Although lean systems tend to produce standardized product lines, to provide production variety without accompanying waste, lean producers often use __________ in __________. standardized parts; modular designs jidoka parts; kaizen designs modular parts; flexible designs capable parts; automated designs heijunka parts; kanban designs

standardized parts; modular designs

Which of the following most involves coordinating the activities among all the elements of the business? technological change competition from foreign manufacturers quality management pollution control supply chain management

supply chain management

The forecasting method which uses anonymous questionnaires to achieve a consensus forecast is: executive opinions. sales force opinions. consumer surveys. time series analysis. the Delphi method.

the Delphi method.

Gradual, long-term movement in time series data is called: cycles. random variation. irregular variation. trend. seasonal variation.

trend.

Why is there waiting in an infinite-source queuing system? poor scheduling of servers slow service low utilization variability in arrival and service rates multiple-phase processing

variability in arrival and service rates

A method used for establishing a logical framework for identifying the required activities for the project is called: work breakdown structure. PERT. planning matrix. crashing. critical path analysis.

work breakdown structure.

Which of the following would probably not involve the use of PERT? planning and constructing a new city hall developing an advertising campaign for a new product designing and constructing a subway system writing a poem preparing for the visit of a foreign dignitary

writing a poem