361

Which of the following is most likely to be a batch process? A. Baking cookies B. Car final assembly C. Petroleum production D. Surgery on patients

A. Baking cookies

In the newsvendor model, when the salvage value of the product increases (while keeping others the same) A. The optimal order quantity increases B. The expected loss sales increases C. The expected sales decreases D. The mean demand increases

A. The optimal order quantity increases

In the newsvendor model, when the selling price of the product increases (while keeping others the same) A. The optimal order quantity increases B. The expected loss of sales increases C. The expected sales decreases D. The mean demand increases

A. The optimal order quantity increases

If a company decides to institute a policy of no discounts or promotions, what is the effect of this policy on the supply chain? A. The bullwhip effect gets worse B. The bullwhip effect is lessened C. This policy change would not influence the bullwhip effect D. There is no way to know the effect on the supply chain

B. The bullwhip effect is lessened

Which of the following is not a reason for carrying inventory? A. To maintain independence of operations B. To reduce the throughput and make the system less productive C. To meet variations in product demand D. To allow flexibility in production scheduling

B. To reduce the throughput and make the system less productive

What can be expected after line balancing is performed to a supply-constrained process A. All stages will have higher utilization B. Process utilization will increase C. Cost of direct labor per unit will decrease D. There will be no bottleneck stage in the process

C. Cost of direct labor per unit will decrease

In the Beer Game, suppose you play the role of Wholesaler. If your "customer" orders 16 kegs in the 2nd step, and you have 19 kegs in the warehouse and there are 10 kegs on back order, then in the 3rd step, you deliver _____ kegs to _____ and the new backorder quantity will be _____ kegs. A. Deliver 19 kegs to the consumer, new backorder is 3 kegs B. Deliver 19 kegs to the consumer, new backorder is 7 kegs C. Deliver 19 kegs to the retailer, new backorder is 7 kegs D. Deliver 16 kegs to the retailer, new backorder is 7 kegs

C. Deliver 19 kegs to the retailer, new backorder is 7 kegs

Which of the following is NOT a strategy to reduce average waiting time? A. Serving the customer who requires the shortest service time first. B. Pooling multiple independent and identical single server queues into a multi-server queue. C. Encouraging customers to arrive at the same time. D. Standardizing the work process and training the workers

C. Encouraging customers to arrive at the same time.

Which one of the following quantities cannot be altered by the Newsvendor order quantity? A. Expected Lost Sales B. Expected Profit C. Mean Demand D. Expected Sales E. Expected Leftover Inventory

C. Mean Demand

Which of the following does not belong to run-time parameters? A. Flow Rate B. Actual Cycle Time C. Process Capacity D. Work-in-process (WIP)

C. Process Capacity

If the demand rate of a process is greater than the capacity A. The process is demand-constrained B. There will be no bottleneck stage in the process C. The number of jobs waiting to be processed will keep increasing D. Flow rate will be equal to the demand rate

C. The number of jobs waiting to be processed will keep increasing

The impact of the bullwhip effect on the supply chain is? A. Downstream demand for products increases when inventory levels in the supply chain are known to be high. B. Downstream demand for products decreases when inventory levels in the supply chain are known to be high. C. Upstream partners carry more inventory to protect themselves from increased variation in demand from downstream partners in an attempt to prevent stock outs. D. Upstream partners carry less inventory to protect themselves from increased variation in-demand upstream partners in an attempt to prevent stockouts

C. Upstream partners carry more inventory to protect themselves from increased variation in demand from downstream partners in an attempt to prevent stock outs.

Which chart can detect an unusual change in process average performance? A. R chart B. Flowchart C. X-bar chart D. Fishbone diagram

C. X-bar chart

Which of the following affects the flow time? A. Resource capacity B. Demand rate C. Job (customer) arrival schedule D. All of the above

D. All of the above

Which of the following cost is usually not considered in the EOQ model? A. Annual purchase cost B. Annual ordering cost C. Annual holding cost D. Annual shortage cost

D. Annual shortage cost

Which of the following is NOT an assumption behind the EOQ model: A. Demand is constant and known B. Lead times are deterministic C. Ordering/set-up and holding costs are two different costs involved D. Backorders are allowed if the supply does not meet the demand

D. Backorders are allowed if the supply does not meet the demand

In the basic EOQ model, if the annual demand doubles, the effect on the optimal order quantity Q* is: A. Doubled B. Half its previous amount C. About 70% of its previous amount D. Increased by about 40% E. None of the above

D. Increased by about 40%