True/false questions
Complicated models are preferred over simplified ones.
False
Higher production implies higher productivity.
False
If output is more than the optimal level, increasing the output results in decreasing average per unit costs and this is called " Economies of Scale."
False
Increasing capacity at an idle station improves system performance.
False
Increasing capacity at an idle station would significantly improve system performance.
False
Influence charts show the formula that will be used to create spreadsheet models.
False
It becomes less expensive to store and transport goods, as they are more value-added by the processes in the supply chain.
False
Process is one or more actions that transform resources into outputs.
False
Production and productivity are the same things.
False
Production is the creation of goods.
False
Strategy is the reason for an organization's existence.
False
There are three types of leading strategies: leading, following, and benchmarking.
False
There are two types of models: physical and mathematical models.
False
Operations management is the management of systems or processes that create goods and/or service.
True
Productivity is defined as the ration of input to output.
True
Shadow price for binding constraints is greater than 0.
True
Shadow price for unbinding constraints is always equal to 0.
True
Spreadsheet principles are parameterization, modularization, sequencing, and documentation.
True
Strategy is a plan/roadmap for achieving organizational goals.
True
Tacking productivity measures over time enables managers to judge organizational performance and decide where improvements are needed.
True
Work Breakdown Structure (WBS) is a hierarchal listing of what must be done during a project.
True
It is possible that a highly available system can be unreliable.
True
Mission is the reason or an organization's existence.
True
Major elements of an optimization problem are decision variables, objective function, parameters, and constraints.
True
At break-even production quantity profit becomes $0.
True
At indifference point, cost of buying and cost of making are equal.
True
Bottleneck is an operation in a sequence of operations whose capacity is lower than that of the other operations.
True
Bottleneck operation is the slowest operation in a sequence of operations.
True
Bottleneck station has the highest utility.
True
