Operations and Production Management – Flashcards

Which of the following is not true about systems approach? A) A systems viewpoint is almost always beneficial in decision making. B) A systems approach emphasizes interrelationships among subsystems. C) A systems approach concentrates on efficiency within subsystems. D) A systems approach is essential whenever something is being redesigned or improved. E) All of the above are true.

In business, forecasts are the basis for: A) capacity planning B) budgeting C) sales planning D) production planning E) all of the above

At the break-even point: A) output equals capacity B) total cost equals total revenue C) total cost equals profit D) variable cost equals fixed cost E) variable cost equals total revenue

Heuristic rules are usually applied when: A) an optimum is necessary B) a computer program isn't available C) a problem has a small number of alternatives D) a problem has a large number of alternatives E) other approaches have failed

The term 'standardization' is closely associated with: A) customization B) high cost C) longer lead times D) variety E) interchangeability

Ergonomics is the use of computers and robots in the workplace. A) True B) False

According to Deming, it is the systems that management puts into place that are primarily responsible for poor quality, not employees. A) True B) False

A c-chart is used for: A) means B) ranges C) percent defective D) fraction defective per unit E) number of defects per unit

JIT delivery, i.e. frequent deliveries of small shipments, actually results in an increase in the transportation cost per unit. A) True B) False

ERP automates the tasks involved in performing a business process, such as order fulfillment and financial reporting. A) True B) False

In the lean philosophy, the ideal lot size is: A) the economic order quantity B) the economic run size C) one unit D) the capacity of a standard container E) N=(DT(1+X))/C

With regard to suppliers, lean systems typically involve: A) delivery of large lots on short notice B) the highest quality at the lowest price C) long-term relationships D) multiple suppliers to assure continuous availability E) dedicated staging areas for material

A popular tool for planning and scheduling simple projects, and for initial planning on more complex projects, is the: A) activity-on-arrows network B) activity-on-nodes network C) Gantt chart D) critical path method E) program evaluation and review technique

To _____ an activity means to shorten the time it will take. A) Speed B) Fund C) Crash D) Aggregate E) Matrix

The output of MRP is A) gross requirements B) net requirements C) a schedule for all parts & end items D) inventory reorder points E) economic order quantities & reorder points

The MRP input stating which end items are to be produced, when they are needed, and what quantities are needed, is the: A) master schedule B) bill-of-materials C) inventory records D) assembly-time chart E) net-requirements chart

Small changes in consumer demand can result in large variations in orders placed because of the A) Supply Chain B) Safety stock requirement C) Lead time effect D) Bullwhip effect E) FCFS scheduling

The automatic identification of material is part of: A) holding costs B) RFID C) working capital reduction D) net present value calculations E) vendor analysi

_________ has helped business concentrate on their core business. A) Supply chains B) Scheduling C) Outsourcing D) ERP E) Lean production

The EOQ model is most relevant for which one of the following? A) ordering items with dependent demand B) determination of safety stock C) ordering perishable items D) determining fixed interval order quantities E) determining fixed order quantities