OPSY Ch.12,14,15,16

In a periodic review inventory system, how many units are ordered? Target inventory level Target inventory level - on hand balance Max inventory level - min inventory level The EOQ Average demand during review period + average demand during lead time

Target inventory level - on hand balance

Total cost of ownership (TOC) is defined by all except? software cost internal human resource costs services cost 3 years of maintenance cost

internal human resource costs

To schedule effectively which information is not required? what has to be done how long it should take where it must be done who must do it what is the priority

where it must be done

What level of average inventory must be maintained on hand to provide 4 hours of production supply if the average material consumption rate is $12 per hour? $3 3 units 12 units $48 48 units

48 units

If the EOQ is ordered, which of the following is true? Annual ordering cost exceeds annual holding cost. Annual holding cost exceeds annual ordering cost. Annual ordering cost is equal to annual holding cost. The sum of annual ordering cost plus annual holding cost is maximized. The annual holding cost curve is decreasing.

Annual ordering cost is equal to annual holding cost.

__________ MRP is an MRP system that includes production planning, master production scheduling, and capacity requirements planning. Fully-integrated Closed-loop Open-loop Wide-range Enterprise

Closed-loop

The three types of lot size rules are F&Q, L$L, P@Q SAP, L4L, POQ FOQ, L4L, POQ ASP, L4L, MRP FOQ, ADP, POQ

FOQ, L4L, POQ

A visual planning and control chart that shows workloads and monitors job progress is called a: loading chart planning chart Gantt chart Johnson chart bottleneck chart

Gantt chart

Which of the following is valid for Johnson's rules sequencing? Job activities must flow unidirectional. The first activity for every job is the same. You must finish the first job before you can begin the second activity. It does not minimize makespan. Job activities must be in different geographical locations.

It does not minimize makespan.

Which of the following statements is true of material resource planning? It uses backward scheduling to check that enough work is scheduled for operations. It uses capacity requirements planning that enables companies to have the right materials at the right time. Its objective is to determine the quantity and timing of material requirements. Its ability to respond to changes in the daily environment is limited. It is designed to automate routine business activities.

Its objective is to determine the quantity and timing of material requirements.

Which of the following statements is not true? An hour lost at a bottleneck is an hour lost forever. An hour lost at a non-bottleneck is just a mirage. Bottlenecks determine throughput and system inventory. The transfer batch does not have to equal the process batch. Lead times are predetermined.

Lead times are predetermined.

Which of the following techniques for determining order quantity entails ordering exactly what is needed? Fixed-order quantity Min-max system Order n periods Just-in time Lot-for-lot

Lot-for-lot

Hand tools, lubricants, and cleaning supplies are usually examples of what? WIP inventory finished goods inventory raw materials inventory distribution inventory MRO inventory

MRO inventory

Which of the following is not an assumption of priority rules? There is no variability in the setup time. There is no variability in the run time of the job. Multiple jobs are waiting to be processed. Only a single job is waiting to be processed. None of these answer choices is correct.

Only a single job is waiting to be processed.

__________ is the probability that demand during lead time will not exceed on-hand inventory. EOQ service level Fill rate Stockout risk Order-cycle service level Lead time service level

Order-cycle service level

Which of the following is an assumption of the basic EOQ model? Lead time is unknown. Demand may be seasonal. Orders arrive at once (in one lot). Quantity discounts are considered. Lost sales are allowed, but not back orders.

Orders arrive at once (in one lot).

Which basic EOQ assumption does the EPQ model relax? Lead time is known and constant. Demand is known and constant. Quantity discounts are not considered. Orders arrive at once. Back orders are not allowed.

Orders arrive at once.

Which of the following is not true for planned orders? They are necessary only for finished products. They result when there is not enough inventory to cover the gross requirements. The quantity is calculated using the lot-sizing rule. The lead time is required to determine when the order should be placed. The inventory records file is updated for the order.

They are necessary only for finished products.

What does average number of jobs in the system measure? WIP inventory due-date performance makespan job tardiness job lateness

WIP inventory

Which of the following is not a feature of flow operations? a process layout fixed routings special-purpose equipment and tooling high volume production high levels of labor and equipment utilization

a process layout

Which of the following is not a type of manufacturing inventory? work-in-process inventory finished goods inventory raw materials inventory distribution inventory accounting inventory

accounting inventory

What costs are considered in the quantity discount model? annual ordering costs + annual holding costs annual purchasing costs + annual holding costs + annual ordering costs annual ordering costs + annual holding costs + annual shortage costs annual purchasing costs + annual ordering costs + annual holding costs + annual shortage costs ordering costs per order + annual holding costs

annual purchasing costs + annual holding costs + annual ordering costs

How can both the JIT and EOQ inventory theories effectively be reconciled? They can't. A firm must choose either one or the other. by using MRP by considering the setup cost as a variable instead of a parameter by applying Kanban cards to the EOQ system by assuming a finite production rate

by considering the setup cost as a variable instead of a parameter

What are the three areas for Inventory objectives? customer service, cost-efficient operations, minimum inventory investment customer service, cost-prohibitive operations, minimum inventory investment customer service, cost-efficient operations, minimum inventory withdrawal marketing, cost-efficient operations, minimum inventory investment customer service, cost-efficient operations, maximum inventory investment

customer service, cost-efficient operations, minimum inventory investment

What does ERP stand for? educational resources planning enterprise resource planning enterprise reliability production end routing procedure easy resource planning

enterprise resource planning

Independent demand is the demand for __________. finished products subassemblies parts raw materials components

finished products

Which of the following is the scheduling technique that uses a prioritized list of jobs? LCFS forward scheduling backward scheduling finite loading infinite loading

finite loading

Which of the following scheduling techniques tends to break down over the long term? finite loading infinite loading forward scheduling backward scheduling input/output control

finite loading

Which of the following techniques loads jobs up to a predetermined capacity level? finite loading infinite loading forward scheduling backward scheduling input/output control

finite loading

Which of the following scheduling techniques determines the earliest possible completion time for a job? finite loading infinite loading forward scheduling backward scheduling input/output control

forward scheduling

Which of the following is not a tangible benefit of ERP? reduction in inventory global sharing of information improved order management increased revenue and profits improved on-time delivery performance

global sharing of information

Capacity requirements planning enables the company to evaluate __________. employee morale its suppliers its manufacturing costs quality how well it is using its critical work centers

how well it is using its critical work centers

If setup costs are essentially zero (negligible when compared to carrying costs), which approach should be used for lot sizing? lot for lot fixed order quantity period order quantity with POQ = 6 periods period order quantity with POQ = 2 periods period order quantity with POQ = 4 periods

lot for lot

The quantity of the replenishment order is based on the __________. capacity available size of the item number of workers available inventory space available lot sizing rule used

lot sizing rule used

Priority rule SPT focuses on all of the following except which one? minimizes mean job flow time mean job lateness minimizes job tardiness average number of jobs in system shortest processing time

minimizes job tardiness

For every scheduled receipt in an MRP table, there is also in the organization a(n) __________. shop floor order order that has been placed but not yet been received planned order period order dispatch list

order that has been placed but not yet been received

A(n) __________ inventory record provides an up-to-date inventory balance by recording all inventory transactions as they happen. infinite everlasting constant permanent perpetual

perpetual

A visual depiction of the subassemblies and components that are needed to produce a finished product is called a(n) __________. assembly time chart product structure tree peg product chart blueprint

product structure tree

The availability of ERP supported data can increase __________ as well as __________. productivity, customer costs productivity, invoicing costs material costs, customer satisfaction material costs, human resource satisfaction productivity, customer satisfaction

productivity, customer satisfaction

What are purchased items or extracted materials that will be transformed into components or products called? work-in-process inventory finished goods inventory raw materials inventory distribution inventory MRO inventory

raw materials inventory

Which of the following scheduling rules is a global priority rule? first come, first served last come, first served earliest due date shortest processing time slack per remaining operations

slack per remaining operations

Which of the following is used in determining the order quantity in the periodic review system? reorder point critical ratio target inventory level EOQ EPQ

target inventory level

The cumulative lead time is __________. the sum of the lead times for all the components the sum of the lead time and the safety time the number of time buckets used in the MRP the longest route in terms of time from the low level items to the end item in the product structure tree lead time less the safety time

the longest route in terms of time from the low level items to the end item in the product structure tree

What does job flow time measure? the time a job spends in the shop due-date performance the amount of time it takes to finish a batch of jobs job tardiness job lateness

the time a job spends in the shop