ISDS Quiz 4 Conceptual

In the office relationship chart, which reflects the highest importance for two departments closeness to each other? a.) A b.) E c.) I d.) X e.) O

A

The main goal of retail layout is: a.) maximizing profitability per square foot of floor space b.) minimizing storage costs c.)minimizing customer confusion regarding location of items d.) minimizing space required e.) minimizing material handling cost

A

The staff training center at a large regional hospital provides training sessions in CPR to all employees. Assume that the capacity of this training system was designed to be 1200 employees per year. Since the training center was first put into use, the program has become more complex, so that 1050 now represents the most employees that can be trained per year. In the past year, 950 employees were trained. The efficiency of this system is approximately _______ and its utilization is approximately _______. a.) 90.5 percent; 79.2 percent b.) 110.5 percent; 114.3 percent c.) 87.5 percent; 950 percent d.) 950 employees; 1050 employees e.) 79.2 percent; 90.5 percent

A

What is the primary reason why retailers tend to locate high-draw items around the periphery of the store? a.) this arrangement will help to maximize customer exposure to other items in the store b.) this arrangement allows customers to travel through the store as quickly as possible c.) more shelf space for those popular items is available around the periphery d.) there will be less congestion of customers than there would be in the middle e.) it is easier to put large advertisement signs on the outside walls right next to the items

A

Which of the following is NOT among the eight determinants of revenue and volume for a service firm? a.) shipment cost of finished goods b.) purchasing power of the customer-drawing area c.) competition in the area d.) uniqueness of the firm's and the competitor's locations e.)quality of management

A

Which of the following is NOT one of McDonald's "seven major innovations?' a.) the happy meal b.) drive-through windows c.) breakfast menu d.) self-service kiosks e.) play areas

A

"A special arrangement of machinery and equipment to focus on production of a single product or group related products" describes what layout type? a.) intermittent production b.) work cell c.) warehouse layout d.) fixed position layout e.) job shop

B

A hospital's layout most closely resembles which of the following? a.) retail b.) job shop c.) project d.) work cell e.) product oriented

B

A waiting line, or queuing, system has three parts, which are: a.) distribution of arrival times, discipline while waiting, and distribution of service times b.) arrivals or inputs, queue discipline or the waiting line itself, and the service facility c.) arrival discipline, queue discipline and service sequencing d.) sequencing policy, penalty for reneging and expediting of arrivals e.) arrival rate, service rate, and utilization rate

B

An organization whose capacity is on that portion of the average unit cost curve that falls as output rises: a.) has utilization higher than efficiency b.) has a facility that is below optimum operating level and should build a larger facility c.) has expected output higher than rated capacity d.) has a facility that is above optimum operating level and should reduce facility size e.) is suffering from diseconomies of scale

B

Consider a production line with five stations. Station 1 can produce a unit in 9 minutes. Station 2 can produce a unit in 10 minutes. Station 3 has two identical machines, each of which can process a unit in 12 minutes (each unit only needs to be processed on one of the two machines). Station 4 can produce a unit in 5 minutes. Station 5 can produce a unit in 8 minutes. Which station is the bottleneck station? a.) Station 1 b.) Station 2 c.) Station 3 d.) Station 4 e.) Station 5

B

East Texas Seasonings is preparing to build one processing center to serve its four sources of seasonings. The four source locations are at coordinates shown below. Also, the volume from each source is provided. [Chart] a.) X=27.5; Y=40 b.) X=28.125; Y=31.25 c.) X=2; Y=40 d.) X=22,000; Y=24,000 e.) center of gravity= 28

B

Globalization of the location decisions is the result of all EXCEPT which of the following? a.) market economics b.) higher quality of labor overseas c.) ease of capital flow between countries d.) high differences in labor cost e.) more rapid, reliable travel and shipping

B

In location planning, environmental regulations, cost and availability of utilities, and taxes are: a.) global factors b.) regional/community factors c.) country factors d.) site-related factors e.) none of the above

B

Production and transportation costs are always considered in which of the following location decision methods? a.) clustering b.) transportation model c.) proximity of markets d.) purchasing power e.) traffic counts

B

What layout strategy deals with low-volume, high-variety production? a.) fixed-position layout b.) process-oriented layout c.) office layout d.) warehouse layout e.) retail layout

B

Which of the following is an example of a finite arrival population? a.) shoppers arriving at a supermarket b.) copy machines in a copying shop that break down c.) cars arriving at a suburban car wash d. ) students at a large university registering for classes e.) all of the above

B

Which of the following represents an unlimited queue? a.) restaurant with no outside seating and limited capacity due to fire department restrictions b.) toll booth serving automobiles on an interstate c.) faculty office with limited seating during office hours d.) small barbershop with only 5 chairs for waiting customers e.) drive-thru lane at a fast-food restaurant

B

Which type of layout features departments or other functional groupings in which similar activities are performed? a.) fixed-postioni b.) process oriented c.) product-oriented d.) unit production e.) mass production

B

Why is Northern Mexico used as a cluster for electronics firms? a.) natural resources of land and climate b.) NAFTA c.) high traffic flows d.) high per capita GDP e.) venture capitalists located nearby

B

A work system has five stations that have process times of 5, 9, 4, 9, and 8. What is the bottleneck time? a.) 35 b.) 4 c.) 9 d.) 7 e.) 18

C

Adding a complementary product to what is currently being produced is a demand management strategy used when: a.) efficiency exceeds 100 percent b.) price increases have failed to bring about demand management c.) the existing product has seasonal or cyclical demand d.) capacity exceeds demand for a product that has stable demand e.) demand exceeds capacity

C

Balancing a work cell is done: a.) before the work cell equipment is sequenced b.) so that each assembly line workstation has exactly the same amount of work c.) as part of the process of building an efficient work cell d.) to minimize the total movement in a process layout e.) before take time is calculated

C

The ______ layout's main objective is to equalize the task time for each station. a.) office b.) job shop c.) product oriented d.) fixed position e.) work cell

C

Which of the following is NOT a characteristic of a Model B or M/M/S system? a.) single phase b.) Poisson arrival rate pattern c.) single server d.) unlimited population size e.) exponential service time pattern

C

A McDonald's single-lane drive-through that has one window for making the payment and a second window for receiving the food behaves most like which of the following? a.) single-server, sequential-phase system b.) multiple-server, multiphase system c.) single-server, single-phase system d.) single-server, multiphase system e.) multiple-server, single-phase system

D

A college registrar's office requires you to first visit with one of three advisors and then with one of two financial professionals. This system is best described as which of the following? a.) multiple-server, cross-phase system b.) single-server, multiphase system c.) multiple-server, single-phase system d.) multiple-server, multiphase system e.) single-server, single-phase system

D

A employee produces 15 parts during a shift in which he made $90. What is the labor content of the product? a.) $90 b.) $0.67 c.) $1,350 d.) $6 e.) $5

D

An assembly line has 10 stations with times of 1, 2, 3, 4..., 10, respectively. What is the bottleneck time a.) 50% of the throughput time b.) 100% of the throughput time c.) 550% of the throughput time d.) 18.18% of the throughput time e.) 1.82% of the throughput time

D

In a basic queuing model (M/M/1), what probability distribution describes service times? a.) Poisson b.) lognormal c.) normal d.) negative exponential e.) binomial

D

Which of the following represents a customer that reneged due to the waiting line? a.) a Black Friday shopper skipped one store because the line went around the building b.) a husband and wife decide to eat out instead after seeing the movie ticket line c.) a care drives past the first fast-food restaurant on Hamburger Row because the drive-through was full d.) a customer at a gas station went inside to buy a soda, but after waiting in line for a minute left the soda inside, and went outside empty handed e.) a student ordered pizza online because the phone line was busy

D

A good layout requires determining: a.) capacity and space requirements b.) material handling equipment c.) environment and aesthetics d.) cost of moving between various work areas e.) all of the above

E

A location decision for a traditional department store (e.g., Macy's) would tend to have what type of focus? a.) environmental focus b.) labor focus c.) education focus d.) cost focus e.) revenue focus

E

The objective of layout strategy is to: a.) minimize cost b.) maximize flexibility c.) maximize worker satisfaction d.) minimize space used e.) develop an efficient layout that will meet the firm's competitive requirements

E

Which of the following is not one of the four principles of bottleneck management? a.) lost time at the bottleneck is lost system capacity b.) increasing capacity at non-bottleneck stations is a mirage c.) release work orders to the system at the bottleneck's capacity pace d.) increased bottleneck capacity is increased system capacity e.) bottlenecks should be moved to the end of the system process

E

Which of these factors would be considered when making a location decision at the site level? a.) cultural and economic issues b.) proximity to raw materials and customers c.) cost and availability of utilities d.) government rules, attitudes, stability, incentives e.) zoning regulations

E

A concert hall, employing both ticket takers and ushers to seat patrons, behaves typically as which of the following? a.) multiple-server, multiphase system b.) multiple-server, single-phase system c.) single-server, multiphase system d.) single-server, single-phase system e.) multiple-server, cross-phase system

A

An airline ticket counter, with several agents for one line of customers, is an example of which of the following? a.) multiple-server, single-phase system b.) cross-server, single-phase system c.) single-server, multiphase system d.) single-server, single-phase system e.) multiple-server, multiphase system

A

Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor? a.) few people will travel out-of state for haircut b.) patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital c.) Furniture makers choose to locate near the source of good hardwoods, even though it means locating near other furniture manufacturers d.) soft drinks are bottled in many local plants, where carbonated waters added to proprietary syrups that may have been shipped long distances e.) metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's source

A

Which of the following represents a common way to manage capacity in the service sector? a.) changes in staffing levels b.) "early bird" specials in restaurants c.) reservations d.) first-come, first-served service rule e.) appointments

A

A work system has five stations that have process times of 5,9,4,9, and 8. What is the throughput time of the system? a.) 18 b.) 35 c.) 7 d.) 4 e.) 9

B

Among the following choices, an operations manager might best evaluate political risk of a country by looking at which type of country ranking? a.) based on magnitude of government social programs b.) based on corruption c.) based on cost of doing business d.)based on competitiveness e.) based on average duration between presidential/ prime minister elections

B

The common measures of a queuing system's performance include: a.) average queue length, maximum time a customer may spend in the queue, and the utilization factor for the system b.) maximum queue length, maximum time a customer may spend in the queue, and average queue length c.) average time each customer spends in the system, probability that the service system will be idle, and average time each customer spends in the queue d.) probability that the service facility will be idle, average queue length, and probability that the waiting time will exceed a specified duration e.) average time each customer spends in the system, maximum queue length, and probability of a specific number of customers in the system

C

The fixed-position layout would be MOST appropriate in which of the following settings? a.) a washing machine assembly line b.) a fast-food restaurant c.) a cruise ship assembly facility d.) a doctor's office e.) a casual dining restaurant

C

Traffic counts and purchasing power analysis of drawing area are techniques associated with: a.) the transportation model b.) the factor-rating method c.) a retail or professional service location decision d.) locational cost-volume analysis e.) a manufacturing location decision

C

When making a location decision at the region/community level, which of these would be considered? a.) zoning restrictions b.) cultural and economic issues c.) cost and availability of utilities d.) air, rail, highway, waterway systems e.) government rules, attitudes, stability and incentives

C

Because problems with fixed-position layouts are so difficult to solve well onsite, operations managers: a.) virtually never employ this layout strategy b.) utilize this layout only for defense contractors c.) utilize this approach only for construction projects such as bridges and office towers d.) often complete as much of the project as possible offsite e.) increase the size of the site

D

Governmental attitudes toward issues such as private property, intellectual property, zoning pollution, and employment stability may change over time. What is the term associated with this phenomenon? a.) bureaucratic risk b.) democratic risk c.) judicial risk d.) political risk e.) legislative risk

D

Intangible costs include which of the following? a.) availability of public transportation b.) quality of perspective employees c.) quality of education d.) all of the above e.) none of the above

D

One of the major advantages of process-oriented layouts is: a.) high equipment utilization b.) large work-in-process inventories c.) small work-in-process inventories d.) flexibility in equipment and labor assignment e.) smooth and continuous flow of work

D

The transportation model, when applied to location analysis: a.) minimizes total transportation costs b.) minimizes total fixed costs c.) minimizes the movement of goods d.) minimizes total production and transportation costs e.) maximizes revenues

D

Which of the following reduces product handling, inventory and facility costs, but requires both (1) tight scheduling and (2) accurate inbound product information? a.) customizing b.) random stocking c.) phantom-docking d.) cross-docking e.) ARS

D

Which of the following statements regarding "proximity" in the location decision is FALSE? a.) manufacturers want to be near customers when their product is bulky, heavy, or fragile b.) reduction in bulk is a good reason for a manufacturer to locate near the supplier c.) perishability of raw materials is a good reason for manufacturers to locate near the supplier, not the customer d.) clustering among fast food chains occurs because they need to be near their labor supply e.) service organizations find that proximity to market is the most critical primary location factor

D

Industrial location analysis typically attempts to: a.) avoid countries with strict environmental regulations b.) focus more on human resources c.) ignore exchange rates and currency risks d.) maximize sales e.) minimize costs

E

Of the four approaches to capacity expansion, the approach that "straddles" demand: a.) uses incremental expansion b.) works best when demand is not growing but is stable c.) at some times leads demand, and at other times lags d.) uses one-step expansion e.) choices A and C are both correct

E

The Academic Computing Center has five trainers available in its computer labs provide training sessions to students. Assume that the design capacity of the system is 1900 students per semester and that effective capacity equals 90% of design capacity. If the number of students who actually got their orientation session is 1500, what is the efficiency of the system? a.) 1710 students b.) 90% c.) 78.9% d.) 1350 students e.) 87.7%

E

The typical goal used when developing a process-oriented layout strategy is to: a.) minimize the distance between adjacent departments b.) maximize job specialization c.) minimize the level of operator skill necessary d.) maximize the number of different tasks that can be performed by an individual machine e.) minimize the material handling costs

E

Utilization will always be lower than efficiency because: a.) effective capacity equals design capacity b.) expected output is less than actual output c.) expected output is lees than rated capacity d.) effective capacity is greater than design capacity e.) effective capacity is less than design capacity

E

When making a location decisions at the country level, which of these would be considered? a.) air, rail, highway, waterway systems b.) land/construction costs c.) zoning restrictions d.) corporate desires e.) location of markets

E

Which of the following is NOT a characteristic of a Model A or M/M/1 system? a.) single number of servers b.) Poisson arrival rate pattern c.) exponential service time pattern d.) single number of phases e.) limited population size

E

Which of the following is NOT a characteristic of a Model C or M/D/1 system? a.) single server b.) single phase c.) Poisson arrival rate pattern d.) unlimited population size e.) exponential service time pattern

E

Which of the following is TRUE of random stocking? a.) each pick can be of only one product b.) because items are stocked randomly, accurate inventory records are not necessary c.) products have their own permanent storage spot d.) its results always minimize handling costs e.) none of the above

E