mang 3402 final
Which of the following sets is determined during a backward pass? A. LS and LF B. LS and ES C. LS and EF D. ES and EF
A. LS and LF
Dummy activities A. are used when two activities have identical starting and ending events B. have a duration equal to the shortest non-dummy activity in the network. C. cannot be on the critical path. D. are found in both AOA and AON networks.
A. are used when two activities have identical starting and ending events
Which of the following statements regarding CPM is true? A. The critical path is the shortest of all paths through the network. B. All activities on the critical path have their LS equal to the maximum EF of all immediate predecessors. C. The critical path is that set of activities that has positive slack. D. All activities on the critical path have their ES equal to their LF. E. Some networks have no critical path.
All activities on the critical path have their LS equal to the maximum EF of all immediate predecessors.
Which of the following is an element of inventory holding costs? A. housing costs B. material handling costs C. investment costs D. pilferage, scrap, and obsolescence E. All of the above are elements of inventory holding costs.
All of the above are elements of inventory holding costs.
Question Help Which of the following is NOT a retail layout practice? A. Use prominent locations for high-impulse and high-margin items. B. Use end-aisle locations to maximize product exposure. C. Distribute power items throughout the store. D. Locate the high-draw items around the periphery of the store. E. All of the above are retail layout practices.
All of the above are retail layout practices.
Which of the following represents an opportunity for generating a new product? A. economic change, such as rising household incomes B. changes in professional standards C. demographic change, such as decreasing family size D. understanding the customer E. All of the above are such opportunities.
All of the above are such opportunities.
Which of the following statements regarding the reorder point is TRUE? A. The reorder point is that quantity that triggers an action to restock an item. B. A shorter lead time implies a smaller reorder point. C. The reorder point is larger than d × L if safety stock is present. D. There is a reorder point even if lead time and demand during lead time are constant. E. All of the above are true.
All of the above are true.
Which of the following statements is NOT true? A. The objective of supply chain management is to coordinate activities within the supply chain to maximize the supply chain's competitive advantage and benefits to the ultimate consumer. B. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting. C. A supply chain includes suppliers; manufacturers and/or service providers; and distributors, wholesalers, and/or retailers who deliver the product and/or service to the final customer. D. Supply chain management describes the coordination of all supply chain activities, starting with raw materials, and ending with a satisfied customer.
An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.
Which of the following factor-rating method steps comes EARLIEST? A. Assign a weight to each factor to reflect its relative importance in the company's objectives. B. Multiply the score by the weights for each factor and total the score for each location. C. Have management score each location for each factor. D. Develop a scale for each factor.
Assign a weight to each factor to reflect its relative importance in the company's objectives.
Which of the following statements is NOT true? A. The objective of the product decision is to develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage. B. The term "products" refers to tangible goods only. C. The product decision includes the selection, definition, and design of products. D. Many service firms refer to their offerings as "products."
B. The term "products" refers to tangible goods only.
"Souped up" ATM kiosks A. will replace all tellers. B. are safer than traditional ATMs. C. will not allow for customized transactions. D. will not be able to restock themselves.
B. are safer than traditional ATMs.
The critical path of a network is the A. path with the fewest activities. B. longest time path through the network. C. shortest time path through the network. D. path with the most activities.
B. longest time path through the network.
The latest finish of an activity is A. ES + Activity time. B. Min{LS of all immediate following activities}. C. LF−Activity time. D. Max{EF of all immediate predecessors}.
B. Min{LS of all immediate following activities}.
Which of the following represents the FIRST step to crash a project? A. Find the critical path(s) in the project network. B. Select the best activity to be crashed and crash it by one period. C. Compute the crash cost per week for each activity in the network. D. Update all activity times.
C. Compute the crash cost per week for each activity in the network.
How is the EF computed? A. LF −Activity time B. Min{LS of all immediate following activities} C. ES + Activity time D. Max{EF of all immediate predecessors}
C. ES + Activity time
Which of the following statements is NOT true? A. Political/legal change brings about new trade agreements, tariffs, and government requirements. B. Understanding the customer is the premier issue in new-product development. C. Economic change brings increasing levels of affluence in the short run but economic cycles and price changes in the long run. D. Sociological and demographic change may appear in such factors as decreasing family size.
C. Economic change brings increasing levels of affluence in the short run but economic cycles and price changes in the long run.
Which of the following is NOT a limitation of PERT? A. There is the inherent danger of placing too much emphasis on the critical path. B. Time estimates tend to be subjective and are subject to fudging by managers. C. Only one time estimate can be used for each activity. D. Precedence relationships must be specified and networked together. E. Project activities have to be clearly defined, independent, and stable in their relationships.
C. Only one time estimate can be used for each activity.
A simple CPM network has three activities, A, B, and C. A is an immediate predecessor of B and of C. B is an immediate predecessor of C. The activity durations are A=4, B=3, C=8. A. The critical path is A-B-C, duration 13.5 B. The critical path is A-C, duration 12. C. The critical path is A-B-C, duration 15. D. The network has no critical path. E. The critical path cannot be determined without knowing PERT expected activity times.
C. The critical path is A-B-C, duration 15.
Ambient conditions; spatial layout and functionality; and signs, symbols, and artifacts are all: A. elements of successful office layouts. B. indicators that cross-docking has been successful. C. elements of servicescapes. D. indicators of imbalance on an assembly line. E. elements of customization in a warehouse layout.
C. elements of servicescapes.
Manufacturability and value engineering has which of the following benefits? I. Reduced complexity of the product II. Reduction of environmental impact III. Additional standardization of components IV. Robust design V. Improved job design and safety A. II, IV B. I, III, IV C. I, II, III, IV, V D. IV E. I, III, V
C. I, II, III, IV, V
Which of the following steps is NOT a basic step followed by PERT and CPM? A. Draw the network connecting all the activities. B. Compute the critical path. C. Define the project. D. Identify and eliminate non-critical activities.
D. Identify and eliminate non-critical activities.
Which of the following phases of the product life cycle has negative cash flow and increasing spending on development and production? A. growth phase B. maturity phase C. decline phase D. introductory phase
D. introductory phase
Which of the following phrases best describes process focus? A. low inventory B. high fixed costs, low variable costs C. Finished goods are usually made to a forecast and stored. D. low volume, high variety E. Operators are less broadly skilled.
D. low volume, high variety
If an activity whose normal duration is 13 days can be shortened to 10 days for an added cost of $1,500, what is the crash cost per period? A. $13,000 B. $750 C. $15,000 D. $1,500 E. $500
E. $500
An inventory decision rule states, "When the inventory level goes down to 14 gearboxes, 100 gearboxes will be ordered." Which of the following statements is TRUE? A. Fourteen is the reorder point, and 100 is the order quantity. B. Fourteen is the safety stock, and 100 is the reorder point. C. One hundred is the reorder point, and 14 is the order quantity. D. The number 100 is a function of demand during lead time. E. None of the above is true.
Fourteen is the reorder point, and 100 is the order quantity.
Which of the following statement is NOT true? A. Probabilistic models relax the assumption that demand for a product is constant and certain. B. Probabilistic models are a real-world adjustment because demand and lead time will not always be known and constant. C. Having certain demand raises the possibility of a stockout. D. The service level is the complement of the probability of a stockout.
Having certain demand raises the possibility of a stockout.
Which of the following assumptions is NOT associated with strategies for goods-producing location decisions? A. Focus on identifiable costs. B. Intangible costs can be evaluated. C. Location is a major determinant of cost. D. Most major costs can be identified explicitly for each site. E. High customer-contact issues are critical.
High customer-contact issues are critical.
Question Help Which of the following characteristics best describes repetitive focus? A. Its output is a standardized product produced from modules. B. low volume, high variety C. It is widely used for the manufacture of steel. D. Operators are broadly skilled. E. It uses sophisticated scheduling to accommodate custom orders.
Its output is a standardized product produced from modules.
Which of the following statements is TRUE regarding the approach Japanese organizations use for product development? A. Japanese organizations use teams to develop products. B. Japanese organizations assign a product manager to "champion" the product. C. Japanese organizations bypass the team issue by not subdividing organizations into research and development, engineering, production, and so forth. D. The Japanese approach to product development is an organization with distinct departments.
Japanese organizations bypass the team issue by not subdividing organizations into research and development, engineering, production, and so forth.
Why is Northern Mexico used as a cluster for electronics firms? A. natural resources of land and climate B. high traffic flows C. high per capita GDP D. NAFTA E. venture capitalists located nearby
NAFTA
Which of the following statements regarding critical paths is true? A. On a specific project, there can be multiple critical paths, all with exactly the same duration. B. Some activities on the critical path may have slack. C. Every network has only one critical path. D. The duration of the critical path is the average duration of all paths in the project network. E. The shortest of all paths through the network is the critical path.
On a specific project, there can be multiple critical paths, all with exactly the same duration.
Which of these statements is NOT true about project scheduling? A. Project scheduling encourages the setting of realistic time and cost estimates for each activity. B. Project scheduling shows the relationship of each activity to others. C. Project scheduling helps make better use of resources by identifying the non-critical paths through the network. D. Project scheduling identifies the precedence relationships among activities.
Project scheduling helps make better use of resources by identifying the non-critical paths through the network.
What is the major difference in focus between a location decision in the service sector vs. the manufacturing sector? A. The focus in manufacturing is on revenue maximization, while the focus in service is on cost minimization. B. The focus in service is on revenue maximization, while the focus in manufacturing is on cost minimization. C. There is no difference in focus. D. The focus in manufacturing is on labor, while the focus in service is on raw materials.
The focus in service is on revenue maximization, while the focus in manufacturing is on cost minimization.
Which of the following statements concerning CPM activities is false? A. The late finish is the earliest of the late start times of all successor activities. B. The late finish of an activity is the earliest late start of all preceding activities. C. The early finish of an activity is the early start of that activity plus its duration. D. The early start of an activity is the latest early finish of all preceding activities. E. The late start of an activity is its late finish less its duration.
The late finish of an activity is the earliest late start of all preceding activities.
A simple CPM network has five activities, A, B, C, D, and E. A is an immediate predecessor of C and of D. B is also an immediate predecessor of C and of D. C and D are both immediate predecessors of E. Which of the following statements is true? A. There are four paths in this network. B. There are six paths in this network. C. There are two paths in this network. D. There are five paths in this network. E. There are 25 paths in this network.
There are four paths in this network.
Which of the following is a limitation of PERT and CPM? A. They are applicable to only a narrow variety of projects and industries. B. The graphical nature of a network delays comprehension of the activity list's interrelationships. C. There is the inherent danger of placing too much emphasis on the critical path. D. They can be used only to monitor schedules.
There is the inherent danger of placing too much emphasis on the critical path.
What is the primary reason why retailers tend to locate high-draw items around the periphery of the store? A. More shelf space for those popular items is available around the periphery. B. It is easier to put large advertisement signs on the outside walls right next to the items. C. This arrangement allows customers to travel through the store as quickly as possible. D. This arrangement will help to maximize customer exposure to other items in the store. E. There will be less congestion of customers than there would be in the middle.
This arrangement will help to maximize customer exposure to other items in the store.
ABC analysis divides an organization's on-hand inventory into three classes based upon A. unit price. B. annual dollar volume. C. annual demand. D. the number of units on hand.
annual dollar volume.
Which of the following products is likely to be assembled on a repetitive process line? A. custom personal computers B. steel C. beer D. automobiles E. custom cakes
automobiles
Question Help In a PERT network, non-critical activities that have little slack need to be monitored closely: A. because near-critical paths could become critical paths with small delays in these activities. B. because PERT treats all activities as equally important. C. because slack is undesirable and needs to be eliminated. D. because they are causing the entire project to be delayed. E. because they have a high risk of not being completed.
because near-critical paths could become critical paths with small delays in these activities.
Which of the following methods is a mathematical technique used for finding the best location for a single distribution point that services several stores or areas? A. center-of-gravity method B. factor-rating method C. transportation model D. locational cost-volume analysis
center-of-gravity method
The appropriate level of safety stock is typically determined by A. choosing the level of safety stock that assures a given service level. B. taking the square root of the economic order quantity. C. carrying sufficient safety stock so as to eliminate all stockouts. D. minimizing the expected stockout cost.
choosing the level of safety stock that assures a given service level.
What term refers to the location of competing companies near each other? A. battling B. clustering C. neighboring D. centralizing
clustering
The purpose of safety stock is to: A. eliminate the likelihood of a stockout due to erroneous inventory tally. B. control the likelihood of a stockout due to variable demand and/or lead time. C. replace failed units with good ones. D. eliminate the possibility of a stockout. E. protect the firm from a sudden decrease in demand.
control the likelihood of a stockout due to variable demand and/or lead time.
What is the shortest duration required to complete an activity? A. pessimistic time B. crash time C. optimistic time D. most likely time
crash time
In the mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except: A. tight quality control. B. removing some services. C. standardization. D. customization. E. automation.
customization.
. Branch banks want to serve customers with more technology in less space to A. more closely resemble an Apple store. B. avoid going the way of Blockbuster. C. slash expenses. D. All of the above.
d
Operation of a hair salon is an example of A. modularization. B. an assembly line. C. delayed customization. D. automation.
delayed customization.
The objective of layout strategy is to A. improve employee morale. B. improve the flow of information. C. improve customer interaction. D. develop an effective and efficient layout that will meet the firm's competitive requirements.
develop an effective and efficient layout that will meet the firm's competitive requirements.
An example of the postponement strategy for improving service productivity is having the customer wait until you have sufficient time to serve the customer. t/f
f
At the economic order quantity, holding costs are equal to product costs. t/f
f
Because service firms do not acquire goods and services externally, their supply chain management issues are insignificant. t/f
f
In location decisions, intangible costs are easier to measure than tangible costs. t/f
f
In the simple EOQ model, if annual demand were to increase, the EOQ would increase proportionately. t/f
f
In the simple EOQ model, if the carrying cost were to double, the EOQ would also double. t/f
f
Location decisions of goods-producing companies often assume that costs are relatively constant for a given area; therefore, the revenue function is critical. t/f
f
Professional services typically require low levels of labor intensity. t/f
f
Safety stock in inventory systems depends only on the average demand during the lead time. t/f
f
Shortening the project's duration by deleting unnecessary activities is called "project crashing." t/f
f
Supply chain decisions are not generally strategic in nature, because purchasing is not a large expense for most firms. t/f
f
The critical path can be determined by use of either the "forward pass" or the "backward pass." t/f
f
The shortest of all paths through the network is the critical path. t/f
f
The supply chain for a brewery would include raw ingredients such as hops and barley but not the manufactured goods such as bottles and cans. t/f
f
The center-of-gravity method finds the location of a centralized facility, such as a distribution center, that will maximize the organization's revenue. t/f
f
With the "many suppliers" sourcing strategy, the order usually goes to the supplier that offers the highest quality. t/f
f
Work-in-process inventory is devoted to maintenance, repair, and operating materials. t/f
f
Question Help The objective of warehouse layout is to A. build teams. B. provides for comfort, safety, and movement of information. C. maximize profitability per square foot of floor space. D. find the optimum trade-off between handling cost and costs associated with warehouse space.
find the optimum trade-off between handling cost and costs associated with warehouse space.
The advantage of having few suppliers is to A. take advantage of diseconomies of scale. B. form a long-term relationship. C. pursue low cost. D. look for short-term attributes.
form a long-term relationship.
A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributors. This is an example of which of the following? A. backward integration B. current transformation C. forward integration D. keiretsu E. horizontal integration
forward integration
In the basic EOQ model, if the cost of placing an order doubles, and all other values remain constant, the EOQ will: A. increase by 200%. B. increase by 100%. C. increase, but more data is needed to say by how much. D. increase by about 41%. E. either increase or decrease.
increase by about 41%.
Which of the following is NOT a service design technique used to increase service efficiency? A. delay customization B. increase customer interaction C. limit the options D. automation E. modularization
increase customer interaction
Which of the following does NOT belong to ordering costs? A. order processing B. cost of supplies C. clerical support D. interest payments
interest payments
A product-oriented layout A. addresses the layout requirements of large, bulky projects such as ships and buildings. B. is organized around products or families of similar high-volume, low variety production. C. allocates shelf space and responds to customer behavior. D. deals with low-volume, high-variety production.
is organized around products or families of similar high-volume, low variety production.
With respect to PERT and CPM, slack A. is a task or subproject that must be completed. B. is the amount of time a task may be delayed without changing the overall project completion time. C. marks the start or completion of a task. D. is the latest time an activity can be started without delaying the entire project.
is the amount of time a task may be delayed without changing the overall project completion time.
Which of the following is an external product development strategy? A. joint ventures B. new internally developed products C. enhancements to existing products D. migrations of existing products
joint ventures
Which of the following would NOT typically be considered as part of a manufacturing firm's supply chain? A. retailers B. suppliers C. landscaping contractors D. wholesalers E. distributors
landscaping contractors
Which of the following is an example of ambient conditions? A. Walmart's greeter at the door B. Best Buy's wide center aisle C. Hard Rock cafe's wall of guitars D. leather chairs at Starbucks
leather chairs at Starbucks
Which of the following is NOT an advantage of the "few suppliers" sourcing strategy? A. suppliers have a learning curve that yields lower transaction and production costs B. suppliers are more likely to understand the broad objectives of the end customer C. less vulnerable trade secrets D. creation of value by allowing suppliers to have economies of scale E. suppliers' willingness to provide technological expertise
less vulnerable trade secrets
The reason fast food restaurants often are found in close proximity to each other is: A. low cost. B. they enjoy competition. C. availability of skilled labor. D. location clustering near high traffic flows. E. All of the above.
location clustering near high traffic flows.
For which corporate strategy(ies) should supply chain inventory be minimized? A. low cost and response B. low cost C. low cost and differentiation D. differentiation E. response
low cost and differentiation
A fast food restaurant is an example of A. low customization and low degree of labor. B. low customization and high degree of labor. C. high customization and low degree of labor. D. high customization and high degree of labor.
low customization and low degree of labor.
Which of the following is a direct responsibility of the project manager? A. making sure that the people assigned to the project receive the motivation, direction, and information needed to do their jobs B. drawing the network diagram C. calculating completion probabilities for all tasks in the project D. performing all of the activities in the project
making sure that the people assigned to the project receive the motivation, direction, and information needed to do their jobs
Which sourcing strategy is particularly common when the products being sourced are commodities? A. virtual companies B. keiretsu C. few suppliers D. many suppliers E. vertical integration
many suppliers
Which of the following is not one of the strategies for improving service productivity? A. mass customization B. self-service C. scheduling D. separation E. automation
mass customization
A large quantity and large variety of products are produced in A. process focus. B. repetitive focus. C. mass customization. D. product focus.
mass customization.
The main goal of retail layout is: A. maximizing profitability per square foot of floor space. B. minimizing customer confusion regarding location of items. C. minimizing storage costs. D. minimizing space required. E. minimizing material handling cost.
maximizing profitability per square foot of floor space.
A network has been crashed to the point where all activities are critical. Additional crashing: A. is prohibitively expensive. B. is impossible. C. can be done, but all critical tasks must be reduced in duration. D. is unnecessary. E. may require crashing multiple tasks simultaneously.
may require crashing multiple tasks simultaneously.
Generally the goal of assembly line balancing is to A. minimize imbalance between machines or personnel while meeting a required output from the line. B. maximize the number of workstations. C. minimize the efficiency of the line. D. determine the maximum time that an item is allowed at a workstation.
minimize imbalance between machines or personnel while meeting a required output from the line.
oncept Question 2.2 Question Help Policies based on ABC analysis might include investing A. extra care in forecasting for C items. B. the most time and effort verifying the accuracy of records for B items. C. more in inventory security for C items. D. more in supplier development for A items.
more in supplier development for A items.
Bank customers want A. 3,000 square feet, not 4,400 square foot branches. B. more simplicity. C. larger branches with more services. D. no tellers.
more simplicity.
The advantage of having many potential suppliers is their willingness to A. provide technical expertise. B. offer lower prices in the short term. C. provide innovations. D. participate in JIT.
offer lower prices in the short term.
Which of the following does NOT belong to holding costs? A. pilferage, scrap, and obsolescence B. insurance on inventory C. storage costs D. order processing
order processing
What is transferring a firm's activities that have traditionally been internal to external suppliers? A. outsourcing B. vertical integration C. make-or-buy D. keiretsu network
outsourcing
Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm? A. labor costs B. attitude toward unions C. energy and utility costs D. cost of shipping finished goods E. parking and access
parking and access
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. legislative risk B. political risk C. judicial risk D. bureaucratic risk E. democratic risk
political risk
Which of the statements below best describes office layout? A. allocates shelf space and responds to customer behavior B. deals with low-volume, high-variety production C. seeks the best personnel and machine utilization in repetitive or continuous production D. positions workers, their equipment, and spaces/offices to provide for movement of information E. addresses the layout requirements of large, bulky projects such as ships and buildings
positions workers, their equipment, and spaces/offices to provide for movement of information
Three of the four types of processes are: A. manual, automated, and service. B. process focus, repetitive focus, and product focus. C. goods, services, and hybrids. D. input, transformation, and output. E. modular, continuous, and technological.
process focus, repetitive focus, and product focus.
Which of the quadrants in the service process matrix has high labor intensity and high customization? A. service shop B. professional service C. mass service D. service factory
professional service
Which of the following is NOT a benefit generated by manufacturability and value engineering? A. reduced standardization of components B. reduction of environmental impact C. reduced complexity of the product D. improved job design and job safety
reduced standardization of components
Extra units that are held in inventory to reduce stockouts are called A. just-in-time inventory. B. safety stock. C. demand variance. D. reorder point.
safety stock.
Which of the quadrants in the service process matrix has low labor intensity and low customization? A. service shop B. service factory C. mass service D. professional service
service factory
Which of the following terms describes the physical surroundings in which a service takes place, and how they affect customers and employees? A. servicescape B. ambience C. service decor D. landscape
servicescape
Which of the following is NOT among the eight determinants of revenue and volume for a service firm? A. uniqueness of the firm's and the competitors' locations B. competition in the area C. quality of management D. purchasing power of the customer-drawing area E. shipment cost of finished goods
shipment cost of finished goods
Banks of the future will be A. all electronic. B. a series of outdoor kiosks. C. smaller. D. the same size.
smaller.
An example of an intangible cost, as it relates to location decisions, is the quality of education. t/f
t
A fast-food retailer that acquired a spice manufacturer would be practicing backward integration. t/f
t
Every network has at least one critical path. t/f
t
In ABC analysis, "A" items are the most tightly controlled. t/f
t
Manufacturers may want to locate close to their customers if the transportation of finished goods is expensive or difficult. t/f
t
One function of inventory is to take advantage of quantity discounts. t/f
t
One guideline for determining the arrangement and space allocation of a retail store is to place high-impulse and high-margin items in prominent locations. t/f
t
One reason for a firm locating near its competitors is the presence of a major resource it needs. t/f
t
One responsibility of a project manager is to make sure that the project meets its quality goals. t/f
t
Outsourcing is a form of specialization that allows the outsourcing firm to focus on its key success factors. t/f
t
Rapidly developing products and moving them to the market is part of time-based competition. t/f
t
Service blueprinting is a process analysis technique that focuses on the customer and the provider's interaction with the customer. t/f
t
Servicescape refers to the physical surrounding in which the service is delivered. t/f
t
The ES of an activity that has only one predecessor is simply the EF of that predecessor. t/f
t
The graphic approach to locational cost-volume analysis displays the range of volume over which each location is preferable. t/f
t
The objective of the make-or-buy decision is to help identify the products and services that can be obtained externally. t/f
t
The reorder point is the inventory level at which action is taken to replenish the stocked item. t/f
t
The project organization may be LESS helpful when A. the work contains complex interrelated tasks requiring specialized skills. B. the project cuts across organizational lines. C. work tasks can be defined with a specific goal and deadline. D. the job is familiar to the existing organization.
the job is familiar to the existing organization.
One of the similarities between process focus and mass-customization is: A. the use of modules. B. the volume of outputs. C. the variety of outputs. D. many departments and many routings. E. All of the above are similarities.
the variety of outputs
The two most basic inventory questions answered by the typical inventory model are: A. timing of orders and cost of orders. B. order quantity and cost of orders. C. timing of orders and order quantity. D. ordering cost and carrying cost. E. order quantity and service level.
timing of orders and order quantity.
What is the primary purpose of the basic economic order quantity model shown below? Q* = 2DSH A. to minimize the sum of carrying cost and holding cost B. to maximize the customer service level C. to calculate the reorder point, so that replenishments take place at the proper time D. to calculate the optimum safety stock E. to minimize the sum of setup cost and holding cost
to minimize the sum of setup cost and holding cost
Which of the following techniques might a service or retail organization use to make a location decision? A. transportation method B. traffic counts C. crossover charts D. locational cost-volume analysis
traffic counts
A goods-producing location decision would likely emphasize the importance of which of the following? A. utility and labor costs B. appearance and image C. security and lighting D. parking and access
utility and labor costs
Which of the following is most likely to affect the location strategy of a manufacturing firm? A. competition in the area B. purchasing power of drawing area C. appearance/image of the area D. utility costs E. parking availability
utility costs
What is a review of successful products that takes place during the production process? A. CAD B. LCA C. value analysis D. virtual reality
value analysis
What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor? A. horizontal integration B. virtual companies C. outsourcing D. vertical integration
vertical integration
Balancing low-cost storage with low-cost material handling is important in which of the following? A. process-oriented layout B. warehouse layout C. fixed-position layout D. office layout E. repetitive and product-oriented layout
warehouse layout
Which of the following arranges machinery and equipment to focus on production of a single product or group of related products? A. process-oriented layout B. product-oriented layout C. fixed-position layout D. work-cell layout
work-cell layout
Prior to embarking on supply chain design, operations managers must first consider A. "make-or-buy" and outsourcing decisions. B. how to select suppliers. C. how to manage supply chain inventory. D. what kind of distribution network to have.
"make-or-buy" and outsourcing decisions.
A product-focused process is commonly used to produce: A. low-volume, high-variety products. B. high-volume, high-variety products. C. high-volume, low-variety products. D. low-variety products at either high- or low-volume. E. high-volume products of either high- or low-variety.
high-volume, low-variety products.