Exam 3

If it takes a supplier 25 days to deliver an order once it has been placed and the standard deviation of daily demand is 20, which of the following is the standard deviation of usage during lead time? 50 100 400 1,000 1,600

100

T/F: "Green-belt" programs are coordinated public works projects aimed at placing an environmentally friendly zone around major cities

True

T/F: "product-service bundling" refers to a company building service activities into its product offerings for its customers.

True

T/F: A favorable business climate in facility location decision making might include local government intervention to facilitate businesses locating in an area via subsidies.

True

T/F: A major aspect of planning involves developing a set of metrics to monitor the supply chain

True

T/F: A modular bill of materials is the term for an item that can be produced and stocked as a subassembly.

True

T/F: A third-party logistics company is a firm that manages all or part of another company's product delivery operations.

True

T/F: A time series is defined in the text as chronologically ordered data that may contain one or more components of demand variation: trend, seasonal, cyclical, autocorrelation, and random.

True

T/F: A variable arrival rate is more common in waiting line management than a constant arrival rate

True

T/F: Activity-system maps are useful in understanding how well a system of activities fits the overall company's strategy

True

T/F: Activity-system maps show how a company's strategy is delivered through a set of tailored activities

True

T/F: All managers should understand the basic principles that guide the design of transformation processes

True

T/F: An example of assignable variation in a production system may be that a machine is not adjusted properly

True

Which of the following is not included as an inventory holding cost? Annualized cost of materials Handling Insurance Pilferage Storage facilities

Annualized cost of materials

T/F: "Projected available balance" is a term referring to unsold finished goods inventory.

False

T/F: A free trade zone operates under different rules and laws than a foreign trade zone.

False

T/F: A good forecaster is one who develops special skills and experience at one forecasting technique and is capable of applying it to widely diverse situations.

False

T/F: A modular bill of materials includes items with fractional options.

False

T/F: A p-chart has upper and lower control limits expressed as lines on the chart. As long as the sample values fall between these two lines, there is no need to investigate process behavior

False

T/F: A tellers' window in a bank is an example of a single-channel, multiphase queuing system

False

T/F: Activity-system maps depict the geographic reach of a company's business strategies

False

T/F: An operations strategy must resist change because of the long-term nature of equipment and personnel investments.

False

T/F: Arrival characteristics in a queuing problem analysis include the length of the queue

False

T/F: Bayesian analysis is the simplest way to choose weights for the weighted moving average forecasting model.

False

T/F: Because the world is becoming more highly interconnected, the proximity of an important supplier's plants is not crucial in supporting lean production methods.

False

T/F: Best customer last is a queue discipline discussed in the textbook

False

T/F: By following a straddling strategy, firms can broaden their capabilities and effectively compete with more focused firms in markets requiring low cost for success

False

T/F: Calculating the early start and early finish times for each activity in a CPM analysis does not provide any useful information

False

T/F: Exponential smoothing is always the best and most accurate of all forecasting models.

False

T/F: Facility location decisions are made using analytical techniques that are able to weigh a large number of different variables equally.

False

T/F: Fixed-order-quantity systems assume a random depletion of inventory, with less than an immediate order when a reorder point is reached.

False

T/F: Gas stations, loading docks, and parking lots have infinite potential length of lines for their respective queuing systems

False

T/F: Governmental barriers to enter and locate in many countries are increasing through restrictive protectionist legislation.

False

T/F: In a hub-and-spoke system, each warehouse in the system acts as a spoke.

False

T/F: In decomposition of time series data, it is relatively easy to identify cycles and autocorrelation components.

False

T/F: In facility location decision making, matching the educational and skill levels of the labor pool to a company's needs is even more important than the labor pool's willingness and ability to learn.

False

T/F: In facility location decision making, the factor-rating system is one of the least used general location techniques.

False

T/F: Internet technology has made the sharing of reliable real-time information expensive

False

T/F: LTPD in acceptance sampling stand for lot tolerance for parts defective

False

T/F: Market research is a quantitative method of forecasting.

False

T/F: Once an operations strategy is adopted and articulated, the primary emphasis becomes perfecting the system of activities that make up the strategy through detailed refinements over a long period of time

False

T/F: One hundred percent inspection is justified when the cost of inspection is low

False

T/F: One of the disadvantages of a pure project organizational structure is that the project manager has full authority over the project

False

T/F: Operations and supply chain strategy are not important issues to investors who tend to focus on growth, dividends, and earnings per share

False

T/F: Process control is concerned with monitoring quality after the product or service has been produced

False

T/F: Quality of life in a host community is not a major factor in making the facility location decision.

False

T/F: Services are homogenous

False

T/F: Shortage costs are precise and easy to measure.

False

T/F: Spreadsheet simulations have become obsolete due in part to specialized computer simulation language like SLAM or SIMAN

False

T/F: The "sawtooth effect," named after turn-around artist Al "Chainsaw" Dunlap, is the severe reduction of inventory and service levels that occurs when a firm has gone through a hostile takeover.

False

T/F: The Greek letter alpha is associated with consumer's risk

False

T/F: The approach that advocates making revolutionary changes as opposed to evolutionary changes is called "creation theory"

False

T/F: The critical path in a CPM analysis is always the shortest path through the network

False

T/F: The customer arrivals in a queuing system come almost exclusively from finite populations

False

T/F: The customer arrivals in a queuing system come almost exclusively from infinite populations

False

T/F: The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to smooth out and become even over time.

False

T/F: The economic order quantity (EOQ) lot-sizing technique produces or acquires exactly the amount of product that is needed each time period with none carried over into future periods.

False

T/F: The fixed-order-quantity inventory model favors less expensive items because average inventory is lower.

False

T/F: The fixed-time-period inventory system has a smaller average inventory than the fixed-order-quantity system because it must also protect against stock outs during the review period when inventory is checked.

False

T/F: The optimal stocking decision in inventory management, when using marginal analysis, occurs at the point where the benefits derived from carrying the next unit are more than the costs for that unit.

False

T/F: The term "queue discipline" involves the art of controlling surly and unruly customers who have become irritated by waiting

False

T/F: The valuations in an EVM analysis must either be profits or revenue

False

T/F: Trend lines are usually the last things considered when developing a forecast.

False

T/F: Variation that is inherent in a production process itself is called assignable variation

False

T/F: When implemented correctly, MRP links all areas of the business.

False

T/F: Within a sustainability framework, the environmental dimension of the triple bottom line concept has to do with labor, the community, and the region in which a firm conducts its business

False

For which of the following should we use a p-chart to monitor process quality? The dimensions of brick entering a kiln Lengths of boards cut in a mill The weight of fluid in a container Grades in a freshman "pass/fail" course Temperatures in a classroom

Grades in a freshman "pass/fail" course

Very few products are moved without at least part of their journey being by which mode of transportation? Highway Rail Water Pipeline Air

Highway

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should be excluded from the analysis? Historical costs Inbound distribution costs Land Construction Regional costs

Historical costs

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions? Government barriers Trading blocs Environmental regulation Immigration rules Local labor costs

Immigration rules

Current issues in OSCM do not include: Coordinating relationships between organizations Making senior management aware that OSCM can be a competitive weapon Optimizing global supplier, production, and distribution networks Managing customer touch points Increasing global supply chain employment

Increasing global supply chain employment

Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal? Economic order quantity Lot-for-lot Least total cost Least unit cost ABC analysis

Least total cost

In general, which forecasting time frame is best to detect general trends? Short-term forecasts Quick-time forecasts Long-range forecasts Medium-term forecasts Rapid-change forecasts

Long-range forecasts

In a typical inventory status record, which of the following would you not expect to see? Scrap allowance Order quantity Gross requirements Planned-order releases Lost items

Lost items

Which of the following forecasting methodologies is considered a qualitative forecasting technique? Simple moving average Market research Linear regression Exponential smoothing Multiple regression

Market research

A series of projects that are organized in such a way that each project utilizes people from different functional areas is using which of the following organizational structures? Matrix project Integrated task force Functional project Pure project Cross-functional flexible team

Matrix project

Popular project management software used in mid-sized projects is Microsoft Word Microsoft Primavera Microsoft Project Microsoft Excel None of these

Microsoft Project

Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we would expect which of the following? A consistent lag of supply behind demand Minimized carrying costs Minimized setup costs A just-in-time management philosophy Minimized quality problems

Minimized carrying costs

Buying a ticket for a college football game where there are multiple windows at which to buy the ticket features which type of queuing system line structure Single channel, single phase Single channel, multiphase Multichannel, single phase Multichannel, multiphase None of these

Multichannel, single phase

Buying food at a large food store with multiple checkout counters features which type of queuing system line structure Single channel, single phase Single channel, multiphase Multichannel, single phase Multichannel, multiphase None of these

Multichannel, single phase

T/F: The least total cost method (LTC) lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal.

True

T/F: The least unit cost method of lot-sizing technique adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size, picking the lot size with the lowest unit cost.

True

T/F: The local government's willingness to invest in upgrading infrastructure to the levels required by company is an important issue in a company's decision of where to locate a new facility

True

T/F: The probability associated with rejecting a high-quality lot is denoted in acceptance sampling with the Greek letter alpha

True

T/F: The process when a company seeks to match the benefits of a successful position while maintaining its existing position by adding new features, services, and technologies into its current portfolio it is called straddling

True

T/F: The social impact of the triple bottom line concept pertains to fair and beneficial business practices toward labor, the community, and the region in which a firm conducts its business

True

T/F: The supply chain processes mentioned in the textbook are planning, sourcing, delivering, and returning.

True

T/F: The supply network as can be thought of as a pipeline through which cash, material, and information flows.

True

T/F: The time-phased plan specifying how many and when the firm plans to build each end item is called the master production schedule (MPS).

True

T/F: The triple bottom line considers evaluating the firm against social, economic, and environmental criteria

True

T/F: The value of the smoothing constant alpha in an exponential smoothing model is between 0 and 1.

True

T/F: Time series forecasting models make predictions about the future based on analysis of past data.

True

T/F: Upper-level management must decide between pure, functional, and matrix structures as ways to organize projects.

True

T/F: Variation that is inherent in a production process itself is called common variation

True

T/F: Within a sustainability framework, the economic dimension of the triple bottom line concept goes beyond just profit for the firm but also provides lasting economic benefit to society

True

T/F: a project milestone is a specific event to be reached by a particular point in time

True

The capability index indicates the position of the mean and tails of a process's variance relative to design specifications

True

Which of the following forecasting methodologies is considered a time series forecasting technique? Delphi method Exponential averaging Simple movement smoothing Weighted moving average Simulation

Weighted moving average

A project can be subdivided into which of the following? Job orders Sub-jobs Work packages Sub-paths Events and decisons

Work packages

T/F: An infinite population in waiting line management refers to a population that is large enough in relation to the service system so that the change in population size caused by subtractions or additions to the population does not significantly affect the system probabilities

True

T/F: An operations and supply chain strategy must be integrated with the organization's corporate strategy

True

T/F: An order winner is a set of criteria that differentiates the products or services of one firm from another

True

T/F: Business process reengineering, which seeks revolutionary change, is contrasted with total quality management which commonly advocates incremental change

True

T/F: Computing the quantity of each component that goes into a finished product can be done by expanding (or exploding) each item in a product structure file and summing at all levels.

True

T/F: Core service providers integrate tangible goods into their product

True

T/F: Cross-docking is an approach used in consolidation warehouses, where large shipments are broken down into small shipments for local delivery in an area.

True

T/F: Decomposition of a time series means identifying and separating the time series data into its components.

True

T/F: During a recession, efficient firms often have an opportunity to increase market share while maintaining profitiability

True

T/F: Earned value management (EVM) is a technique for measuring project progress in an objective manner

True

T/F: Experience and trial and error are the simplest ways to choose weights for the weighted moving average forecasting model.

True

T/F: Facility location analysis considers proximity to customers important to timeliness of deliveries.

True

T/F: Facility location analysis considers the competitive imperative of a favorable business climate as indicated by the presence of other companies in the same industry.

True

T/F: Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of low wage costs and/or skill levels.

True

T/F: Fixed-order-quantity inventory models are "event triggered."

True

T/F: Green and black belt programs teach six-sigma quality tools to managers at many corporations

True

T/F: In a CPM analysis, if you subtract the early start from the late start, the result is the activities slack time.

True

T/F: In a department 25 machines are kept running by three operators who respond to randomly occurring equipment problems. An analyst who wanted to now how much production was being lost by machines waiting for service could use the queuing theory analysis to find out

True

T/F: In a net change MRP system, requirements and schedules are updated whenever a transaction is processed that has an impact on the item.

True

T/F: In acceptance sampling, the number of units in the sample (n) is determined by the interaction of the acceptable quality level (AQL), the lot tolerance percent defective (LTPD), the probability of rejecting a high-quality lot (alpha), and the probablility of accepting a low-quality lot (beta)

True

T/F: In the fixed-time-period model it is necessary to determine the inventory currently on hand to calculate the size of the order to place with a vendor.

True

T/F: In the time-cost CPM model, cost is assumed to be a linear function of time

True

T/F: In variables sampling, the actual measurements of the variable observed are used regardless of whether the unit is good or bad

True

T/F: Investors pay close attention to efficiency and productivity measures like net income per employee because they are interested in how well the firm manages its workforce relations

True

T/F: Issues of product mix and capacity are strongly interconnected to the facility location decision.

True

T/F: MRP is a logical, easily understandable approach to the problem of determining the number of parts, components, and materials needed to produce each end item.

True

T/F: MRP provides the schedule specifying when each part and component of an end item should be ordered or produced.

True

T/F: Net change MRP systems are "activity" driven.

True

T/F: One of the advantages of a functional project organizational structure is that a team member can work on several projects

True

T/F: One of the assumptions made using CPM is that project activities can be identified with clear beginning and ending points

True

T/F: One of the competitive dimensions that form the competitive position of a company when planning its strategies is cost

True

T/F: One of the competitive dimensions that form the competitive position of a company when planning its strategies is delivery speed

True

T/F: One of the daily, delicate balancing acts that logistics managers have to perform involves the trade-off between transportation costs and fulfillment speed.

True

T/F: One of the drivers of the direct-to-store (direct distribution) approach is the upstream migration of value-added logistics services.

True

T/F: Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and delver the firm's primary products and services.

True

T/F: Operations and supply chain processes can be conveniently categorized as planning, sourcing, making, and delivering.

True

T/F: Price-break models deal with discrete or step changes in price as order size changes rather than a per-unit change.

True

T/F: Projected available balance is the amount of inventory that is expected as of the beginning of a period.

True

T/F: Regardless of the computer language chosen for a simulation model, too much data from a simulation can be dysfunctional to problem solving

True

T/F: Sampling plans are generally displayed graphically through the use of operating characteristic (OC) curves

True

T/F: Service innovations can be patented

True

T/F: Service science management and engineering aims to apply the latest concepts in information technology to continue to improve service productivity of technology-based organizations

True

T/F: Some inventory situations involve placing orders to cover only one demand period or to cover short-lived items at frequent intervals.

True

T/F: Statistical process control involves testing random samples of output from a process to determine whether the process is producing items within a preselected range

True

T/F: The Association for Operations Management defines logistics as "the art and science of obtaining, producing, and distributing material and product in the proper place and in proper quantities."

True

T/F: The Baldrige National Quality Award was started under the direction of the National Institute of Standards and Technology

True

T/F: The Poisson probability distribution is used in waiting line management when one is interested in the number of arrivals to a queue during some fixed time period

True

T/F: The approach that advocates making revolutionary changes as opposed to evolutionary changes is called "business process reengineering"

True

T/F: The central problem in virtually every waiting line situation is a decision balancing the costs of adding services with the costs of waiting

True

T/F: The computation of a firm's inventory position is found by taking the inventory on hand and adding it to the on-order inventory, and then subtracting backordered inventory.

True

T/F: The demand on a hospital's emergency medical services is considered an uncontrollable arrival pattern of the calling population

True

T/F: The economic order quantity (EOQ) lot-sizing technique uses the "square root formula" to balance setup cost and carrying cost.

True

T/F: The fact that organizations are flattening is one of the reasons that project management is important

True

Using the fixed-order-quantity model, which of the following is the total ordering cost of inventory given an annual demand of 36,000 units, a cost per order of $80, and a holding cost per unit per year of $4? $849 $1,200 $1,889 $2,267 $2,400

$2,400

A company wants to determine where it should locate a new warehouse. It has two existing production plants (i.e., plant A and plant B) that will ship units of a product to this warehouse. Plant A is located at the (X, Y) coordinates of (50, 100) and will have volume of shipping of 250 units a day. Plant B is located at the (X, Y) coordinates of (150, 200) and will have a volume of shipping of 150 units a day. Using the centroid method, which of the following are the X and Y coordinates for the new plant location? (81, 117) (88, 138) (117, 102) (76, 123) X and Y coordinates cannot be computed from the data given.

(88, 138)

You want to determine the control lines for a p-chart for quality control purposes. If the total number of defects from all samples is 2,500, the number of samples is 100, and the sample size is 50, which of the following would be the standard deviation used in developing the control lines? 0.4900 0.2499 0.1556 0.0707 0.02499

.0707

You want to develop a three-sigma R-chart. You know the average range is 12 based on several samples of size 6. Which of the following is the resulting LCL? 20.0 18.3 7.02 5.6 0.0

0.0

You want to determine the lower control line for a p-chart for quality control purposes. You take several samples of a size of 50 items in your production process. From the samples, you determine the fraction defective is 0.006 and the standard deviation is 0.001. If the desired confidence level is 99.7 percent, which of the following is the resulting LCL value for the line? 0.0 0.002 0.003 0.004

0.003

You are going to develop an X-bar chart based on range statistics, and you are using a sample size of 12 for your charting purposes. Which of the following is the A2 factor for the X-bar chart? 0.37 0.31 0.27 0.22 0.18

0.27

Assume the service rate for a queue in a truck-loading operation is 2 trucks per hour. Using the infinite queuing notion for the models presented in the textbook, which of the following is the average service time? 2 hours 1 hour 0.5 hour 0.25 hour None of these

0.5 hour

In modeling a simulation, random numbers from 00 to 99 are assigned with the intervals determined from frequency distributions for each behavior occurrence. Assume there are two behaviors, X and Y, out of 50 tallies. On behavior X you record 20 tallies, and on behavior Y you record 30 tallies. Which of the following is a correct random-number interval for behavior X? 00 to 19 01 to 20 00 to 39 41 to 61 45 to 100

00 to 39

In modeling a simulation, random numbers from 00 to 99 are assigned with the intervals determined from frequency distributions for each behavior occurrence. Assume there are two behaviors, A and B, out of 100 tallies. On behavior A you record 45 tallies, and on behavior B you record 55 tallies. Which of the following is a correct random-number interval for behavior A? 00 to 45 00 to 44 56 to 99 55 to 100 45 to 100

00 to 44

If the intercept value of a linear regression model is 40, the slope value is 40, and the value of X is 40, which of the following is the resulting forecast value using this model? 120 1,600 1,640 2,200 64,000

1,640

The total output from a production system in one day is 900 units and the total labor necessary to produce the 900 units is 900 hours. Using the appropriate productivity measure, what is the resulting productivity ratio? 1.000 1.428 0.700 0.411 None of these

1.000; 900/900

The total output from a production system in one day is 500 units and the total labor necessary to produce the 500 units is 350 hours. Using the appropriate productivity measure, which of the following numbers represents the resulting productivity ratio? .000 1.428 0.700 0.411 None of these

1.428; 500/350

Using the probability approach to determine an inventory safety stock and wanting to be 95 percent sure of covering inventory demand, which of the following is the number of standard deviations necessary to have the 95 percent service probability assured? 1.28 1.64 1.96 2.00 2.18

1.64

You are going to develop an R-chart based on range statistics, and you are using a sample size of 15 for your charting purposes. Which of the following is the upper control limit D4 factor for the chart? 1.65 1.70 1.76 1.87 1.92

1.65

A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented here: Using CPM, what is the latest finish time for the last activity in this project (i.e., the total time to complete the project)? 9 days 10 days 11 days 12 days 13 days

11 days

A simple project listing of five activities, their predecessors, and their respective time estimates are presented here: Using CPM, what is the latest finish time for the last activity in this project (i.e., the total time to complete the project)? 0 days 7 days 8 days 12 days 9 days

12 days

You have collected the data for a time-cost CPM scheduling model analysis. The time is in days and the project "direct costs" are given here. The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days, the total indirect costs are $400; 15 days, they will be $250; 14 days, they will be $200; and 13 days, they will be $100. At what day do we achieve the lowest? Total project cost (i.e., direct plus indirect costs)? 16 days 15 days 14 days 13 days 12 days

15 days

Various financial data for SunPath Manufacturing for 2012 and 2013 follow. What is the percentage change in the labor partial productivity measure for SunPath between 2012 and 2013? 9.22 2.33 -0.53 2.88 10.39

2.33

Various financial data for SunPath Manufacturing for 2012 and 2013 follow. What is the percentage change in the energy partial productivity measure for SunPath between 2012 and 2013? -9.22% 2.33% -0.53% 2.88% 22.2%

22.2%

Given a prior forecast demand value of 230, a related actual demand value of 250, and a smoothing constant alpha of 0.1, what is the exponential smoothing forecast value for the following period? 230 232 238 248 250

232

You are developing an X-bar chart based on sample means. You know the standard deviation of the sample means is 4, the desired confidence level is 99.7 percent, and the average of the sample means is 24. Which of the following is your UCL? 36 24 12 4 None of these

36

A company has actual unit demand for three consecutive years of 124, 126, and 135. The respective forecasts for the same three years are 120, 120, and 130. Which of the following is the resulting MAD value that can be computed from these data? 1 3 5 15 123

5

If a firm produced a standard item with relatively stable demand, the smoothing constant alpha (reaction rate to differences) used in an exponential smoothing forecasting model would tend to be in which of the following ranges? 5 to 10 percent 20 to 50 percent 20 to 80 percent 60 to 120 percent 90 to 100 percent

5 to 10 percent

Which of the following is the net requirement using an MRP program if the gross requirement is 1,000 and the inventory on hand is 500? 1,000 950 500 400 350

500

A company has recorded the last five days of daily demand on its only product. Those values are 120, 125, 124, 128, and 133. The time from when an order is placed to when it arrives at the company from its vendor is 5 days. Assuming the basic fixed-order-quantity inventory model fits this situation and no safety stock is needed, which of the following is the reorder point (R)? 120 126 630 950 1,200

630

Larry's Auto Body Repair Shop had revenues that averaged $60,000 per week in April and $50,000 per week in May. During both months, the shop employed six full-time (40 hours/week) workers. In April the firm also had four part-time workers working 25 hours per week, but in May there were only two part-time workers and they only worked 10 hours per week. What is the percentage change in labor productivity from April to May for Larry's Auto Body Repair? -20.00% -15.82% 8.98% 2.3% -25.00%

8.98%

As a consultant, you have been asked to generate a unit demand forecast for a product for year 2017using exponential smoothing. The actual demand in year 2016was 750. The forecast demand in year 2016was 960. Using these data and a smoothing constant alpha of 0.3, which of the following is the resulting year 2017forecast value? 766 813 897 1,023 1,120

897

Heavy sales of umbrellas during a rain storm is an example of which of the following? A trend A causal relationship A statistical correlation A coincidence A fad

A causal relationship

Quality control charts usually have a central line and upper and lower control limit lines. Which of the following is a reason that the process being monitored with the chart should be investigated? A single plot falls above or below the control limits.Correct Behavior is normal. A large number of plots are on or near the central line. There is no real trend in any direction. There is a change in raw materials or operators.

A single plot falls above or below the control limits

A project starts out as which of the following? A statement of work Critical path method (CPM) A series of milestones A Gantt chart A latest-start-time estimate

A statement of work

Some of the advantages of a functional project where the project is housed in a functional division include which of the following? The project manager has full authority over the project Team pride, motivation, and commitment are high A team member can work on several projects Needs of the client are secondary None of these

A team member can work on several projects

A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented here: Using CPM, which activities make up the critical path? A, B, D, F, G A, C, E, F, G A, C, B, F, E A, D, E None of these

A, B, D, F, G

The Pareto principle is best applied to which of the following inventory systems? EOQ Fixed-time-period ABC classification Fixed-order quantity Single-period ordering system

ABC classification

Plant A is located at the (X, Y) coordinates of (200, 500) and has a volume of shipping of 400 units a day. Plant B is located at the (X, Y) coordinates of (300, 100) and has a volume of shipping of 300 units a day. Using the centroid method, which of the following is the X coordinate for the new plant location? About 208 About 227 About 243 About 389 X coordinate cannot be computed from the data given.

About 243

A company wants to determine its reorder point (R). Demand is variable and the company wants to build a safety stock into R. The company wants to have a service probability coverage of 95 percent. If average daily demand is 8, lead time is 3 days, and the standard deviation of usage during lead time is 2, which of the following is the desired value of R? About 17.9 About 19.7 About 24.0 About 27.3 About 31.2

About 27.3

Which of the following is an input file necessary to run an MRP system? Bill of materials (BOM) file Quality management report Exception reports Planned-order schedules Purchasing contracts

Bill of materials (BOM) file

An example of a trading bloc is which of the following? Central American Free Trade Agreement countries Free trade zones ISO-9000 companies American Production and Inventory Control Society Walmart and its suppliers

Central American Free Trade Agreement countries

Which of the following is a plant location methodology good for locating a single facility within a set of existing facilities based in distances and volumes of goods shipped? Factor-rating systems Centroid method Decision trees Linear programming Regression analysis

Centroid method

Which of the following are defined as core goods? Chemicals Airlines Data Storage Systems Hotels None of these

Data Storage Systems

Which of the following are not listed in the texts as jobs in OSCM? Department store manager Project manager Hospital administrator Data center manager Call center manager

Data center manager

Which of the following is not a suggestion for managing queues presented in the textbook? Train your servers to be friendly Segment the customers Determine an acceptable waiting time for your customers Inform your customers of what to expect Encourage customers to come during slack periods

Determine an acceptable waiting time for your customers

You are looking at a chart that has the terms BCWS, BCWP, and AC indicating lines on the chart. What kind of chart are you looking at? Gantt chart PERT chart Bar/milestone chart Total program cost breakdown EVM chart

EVM chart

Which of the following is a fixed-order-quantity inventory model? Economic order quantity model The ABC model Periodic replenishment model Cycle counting model P model

Economic order quantity model

Which of the following queue disciplines is discussed in the textbook? Emergencies first Garner-Whitten formula Newest customer first Patient customers last None of these

Emergencies first

Which of the following is considered a secondary report in an MRP system? Planned order schedule Exceptions reports Inventory record Firm orders from known customers Engineering change reports

Exceptions reports

One of the "package of features" that make up a service is: Appearance Facilitating goods Packaging Cost Implied use

Facilitating goods

Which of the following is a possible source of bias error in forecasting? Failing to include the right variables Using the wrong forecasting method Employing less sophisticated analysts than necessary Using incorrect data Using standard deviation rather than MAD

Failing to include the right variables

Which of the following is a perpetual system for inventory management? Fixed-time period Fixed-order quantity P model First-in-first-out The wheel of inventory

Fixed-order quantity

Which of the following is an input to the master production schedule? Bill of materials (BOM) file Inventory records file Exception reports Planned-order schedules None of these

None of these

Which of the following is a multifactor measure of productivity? Output/Materials Output/(Labor+Capital+Energy) Output/All resources used Output/Inputs All of these

Output/(Labor+Capital+Energy)

Which of the following is a total measure of productivity? Output/Materials Output/(Labor+Capital+Energy) Output/All resources used Output/Inputs All of these

Output/Inputs

Which of the following is a partial measure of productivity? Output/Materials Output/(Labor+Capital+Energy) Output/All resources used Output/Inputs All of these

Output/Materials

Which of the following is an example of general-purpose simulation software? PC-MODEL MAP/1 SIMFACTORY Canella IV OPUS/2.3

PC-MODEL

In most cases, demand for products or services can be broken down into several components. Which of the following is not considered a component of demand? Average demand for a period A trend Seasonal elements Past data Autocorrelation

Past data

Which of the following is considered a primary report in an MRP system? Planned order schedule Peg report Planning report Inventory accuracy report Aggregate production plan report

Planned order schedule

Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions? Proximity to customers Corporate policy Competitor's locations Competitive advantage Host-community politics

Proximity to customers

Which of the following is not an assumption of the basic fixed-order-quantity inventory model? Ordering or setup costs are constant. Inventory holding cost is based on average inventory. Returns to scale of holding inventory are diminishing.\ Lead time is constant. Demand for the product is uniform throughout the period.

Returns to scale of holding inventory are diminishing.

Which of the following is the symbol used in the textbook for the cost of placing an order in the fixed-order-quantity inventory model? C TC H Q S

S

Which of the following forecasting methods can be used for short-term forecasting? Simple exponential smoothing Delphi technique Market research Hoskins-Hamilton smoothing Serial regression

Simple exponential smoothing

In order to determine the standard deviation of usage during lead time in the reorder point formula for a fixed-order-quantity inventory model, which of the following must be computed first? Standard deviation of daily demand Number of standard deviations for a specific service probability Stock-out cost Economic order quantity Safety stock level

Standard deviation of daily demand

When a company seeks to match the benefits of a successful position while maintaining its existing position in offering customers a variety of differing services, what is this process called? Operations capability analysis Straddling Order qualifying Order winning Inter-functional analysis

Straddling

For which of the following should we use an R-chart to monitor process quality? Weighing trucks at a highway inspection station to determine if they are overloaded Deciding whether an airliner has sufficient fuel for its trip Student grades measured from 1 to 100 Determining whether vehicles from a motor pool will run Determining the accuracy of a forecast of "snow"

Students grades measured from 1 to 100

In development of an operations and supply chain strategy, which one of the following may be an important product-specific criteria to consider? Focus Production lot size Supplier after-sale support Learning curve Total Quality Management

Supplier after-sale support

For an activity in a CPM analysis, the early finish time is 20 and the late finish time is 20. Which of the following statements is true? The activity's late start must happen before its early start The activity is on the critical path The slack for this activity is 20 The duration of this task is zero The duration of this task is 20

The activity is on the critical path

Which of the following is an example of a finite population in a queuing system People waiting to place their order at a fast-food restaurant The departmental faculty in line at the copier People waiting in line at an ATM Patients seeking help in a hospital emergency room Taxpayers calling for assistance from the IRS

The departmental faculty in line at the copier

You have just used the capability index (Cpk) formulas to compute the two values "min [1, 1]." Which of the following is the proper interpretation of these numbers? The true capability index value is exactly 2. The mean of the production process has shifted to the left of the design limits. The mean of the production process has shifted to the right of the design limits. The mean has not shifted at all.Correct None of these

The mean has not shifted at all

You have just used the capability index (Cpk) formulas to compute the two values "min [1.5, 1]." Which of the following is the interpretation of these numbers? The true capability index value is 1. The mean of the production process has shifted to the left of the design limits. The mean of the production process has shifted to the right of the design limits.Correct The mean has not shifted at all. The true capability index value is between 1.5 and 1.

The mean of the production process has shifted to the right of the design limits

If a firm produced a product that was experiencing growth in demand, the smoothing constant alpha (reaction rate to differences) used in an exponential smoothing forecasting model would tend to be which of the following? Close to zero A very low percentage, less than 10 percent The more rapid the growth, the higher the percentage The more rapid the growth, the lower the percentage 50 percent or more

The more rapid the growth, the higher the percentage

Here are the data for a time-cost CPM scheduling model analysis. The time is in days and the costs include both direct and indirect costs. What are the total time of this project and total normal cost? Total time is 13 days, total cost is $1,200. Total time is 12 days, total cost is $1,700. Total time is 11 days, total cost is $1,600. Total time is 10 days, total cost is $1,750. Total time is 9 days, total cost is $1,700.

The total time is 12 days, total cost is $1,700.

In business forecasting, what is usually considered a medium-term time period? Six weeks to one year Three months to two years One to five years One to six months Six months to six years

Three months to two years

Which of the following is a suggestion for managing queues that is mentioned in the textbook? Put up a serpentine lane to keep people from jumping ahead in line Use humor to defuse a potentially irritating situation Train your servers to be friendly Assure customers that the wait is fair, and inform them of the queue discipline Tell people in the queue that each will be served as soon as possible

Train your servers to be friendly

You have just performed a CPM analysis and have found that more than one path through the project network has zero slack values. What can you conclude? You have incorrectly performed the analysis You have multiple critical paths Only one path is optimal More than one path is optimal The project will not be completed by the desired time

You have multiple critical paths

T/F: The master production schedule states the number of items to be produced during specific time periods.

true