Operations and Production Management

The automatic identification of material is part of: A) holding costs B) RFID C) working capital reduction D) net present value calculations E) vendor analysi

B.) RFID

At the break-even point: A) output equals capacity B) total cost equals total revenue C) total cost equals profit D) variable cost equals fixed cost E) variable cost equals total revenue

B.) Total cost equals total revenue

Ergonomics is the use of computers and robots in the workplace. A) True B) False

B.) False

The MRP input stating which end items are to be produced, when they are needed, and what quantities are needed, is the: A) master schedule B) bill-of-materials C) inventory records D) assembly-time chart E) net-requirements chart

A.) Master schedule

According to Deming, it is the systems that management puts into place that are primarily responsible for poor quality, not employees. A) True B) False

A.) True

ERP automates the tasks involved in performing a business process, such as order fulfillment and financial reporting. A) True B) False

A.) True

JIT delivery, i.e. frequent deliveries of small shipments, actually results in an increase in the transportation cost per unit. A) True B) False

A.) True

The output of MRP is A) gross requirements B) net requirements C) a schedule for all parts & end items D) inventory reorder points E) economic order quantities & reorder points

C.) A schedule for all parts & end items

Which of the following is not true about systems approach? A) A systems viewpoint is almost always beneficial in decision making. B) A systems approach emphasizes interrelationships among subsystems. C) A systems approach concentrates on efficiency within subsystems. D) A systems approach is essential whenever something is being redesigned or improved. E) All of the above are true.

C.) A systems approach concentrates on efficiency within subsystems.

To _____ an activity means to shorten the time it will take. A) Speed B) Fund C) Crash D) Aggregate E) Matrix

C.) Crash

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

C.) Gantt Chart

With regard to suppliers, lean systems typically involve: A) delivery of large lots on short notice B) the highest quality at the lowest price C) long-term relationships D) multiple suppliers to assure continuous availability E) dedicated staging areas for material

C.) Long-term relationships

In the lean philosophy, the ideal lot size is: A) the economic order quantity B) the economic run size C) one unit D) the capacity of a standard container E) N=(DT(1+X))/C

C.) One Unit

_________ has helped business concentrate on their core business. A) Supply chains B) Scheduling C) Outsourcing D) ERP E) Lean production

C.) Outsourcing

Heuristic rules are usually applied when: A) an optimum is necessary B) a computer program isn't available C) a problem has a small number of alternatives D) a problem has a large number of alternatives E) other approaches have failed

D.) A problem has a large number of alternatives

Small changes in consumer demand can result in large variations in orders placed because of the A) Supply Chain B) Safety stock requirement C) Lead time effect D) Bullwhip effect E) FCFS scheduling

D.) Bullwhip effect

In business, forecasts are the basis for: A) capacity planning B) budgeting C) sales planning D) production planning E) all of the above

E.) All of the above

The term 'standardization' is closely associated with: A) customization B) high cost C) longer lead times D) variety E) interchangeability

E.) Interchangeability

A c-chart is used for: A) means B) ranges C) percent defective D) fraction defective per unit E) number of defects per unit

E.) Number of defects per unit

The EOQ model is most relevant for which one of the following? A) ordering items with dependent demand B) determination of safety stock C) ordering perishable items D) determining fixed interval order quantities E) determining fixed order quantities

E.) determining fixed order quantities