BUS 370 Operations Managment – Flashcards
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In MRP, under lot-for-lot ordering, planned-order receipts are:
answer
A. Identical to planned-order releases.
B. available-to-promise inventory.
C. gross requirements.
D. open orders (that is, ordered before the first time bucket, but not delivered yet).
E. identical to scheduled receipts.
Correct Answer:A
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A visual depiction of the subassemblies and components that are needed to produce and/or assemble a product is called a(n):
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A. assembly time chart.
B. pegging.
C. Gantt chart.
D. product structure tree.
E. MRP II.
Correct Answer: D
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In MRP, the gross requirements of a given component part are calculated from:
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A. planned orders of the immediate parent.
B. planned orders of the end item.
C. net requirements + amount on-hand.
D. gross requirements of the immediate parent.
E. net requirements of end item.
Correct Answer: A
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The output of MRP is:
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A. a schedule of requirements for all parts and end items.
B. economic order quantities and reorder points.
C. net requirements.
D. inventory reorder points.
E. gross requirements.
Correct Answer: A
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An MRP system that is updated periodically to account for all changes which have occurred within a given time interval is called a(n) ________ system.
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A. pegging
B. regenerative
C. net-change
D. exception report
E. planned order release
Correct Answer: B
Regenerative systems are updated periodically.
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The MRP input storing information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size) is the:
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A. net requirements chart.
B. bill of materials.
C. master production schedule.
D. assembly time chart.
E. inventory records.
Correct Answer: E
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Which one of the following is not an input in an MRP system?
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A. master production schedule
B. bill of materials
C. All are inputs.
D. inventory records
E. planned-order schedules
Correct Answer: E
Planned-order schedules are outputs from MRP.
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In MRP, scheduled receipts are:
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A. identical to planned-order receipts.
B. net requirements.
C. identical to planned-order releases.
D. open orders (that is, ordered before the first time bucket, but not delivered yet).
E. available-to-promise inventory.
Correct Answer: D
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The MRP input listing the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product is the:
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A. net requirements chart.
B. master production schedule.
C. assembly time chart.
D. inventory records.
E. bill of materials.
Correct Answer: E
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Which is true of a net-change system?
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A. It is a batch-type system which is updated periodically.
B. It indicates the amount and timing of future changes.
C. It is usually run at the beginning of each month.
D. The basic production plan is modified to reflect changes as they occur.
E. It is used to authorize the execution of planned orders.
Correct Answer: D
Net-change systems are updated as transactions occur
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Which one of the following most closely describes net material requirements?
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A. gross requirements − order releases + amount on hand
B. gross requirements − amount on hand + planned order releases
C. gross requirements − planned receipts
D. gross requirements − planned order releases
E. gross requirements − amount on hand − scheduled receipts
Correct Answer: E
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The multiplication process used by MRP to determine lower-level requirements is called:
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A. netting.
B. exploding.
C. time-phasing.
D. projecting.
E. pegging.
Correct Answer: B
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Which of the following represents an attempt to balance the benefits of stability against the benefits of responding to new information?
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A. bills of material
B. safety time
C. fixed-period lot sizing
D. time fences
E. safety stock
Correct Answer: D
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Which of the following most closely describes dependent demand?
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A. derived demand
B. demands placed on suppliers by their customers
C. demand generated by suppliers
D. net material requirements
E. estimates of demand using regression analysis of independent variables
Correct Answer: A
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An MRP system whose records are updated continuously is referred to as a(n):
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A. net-change system.
B. gross-change system.
C. regenerative system.
D. batch-type system.
E. Plossl-Wright system.
Correct Answer: A
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To facilitate utilization of bottleneck operations, in theory of constraints scheduling ________ can be split into __________ to reduce waiting times.
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A. bottleneck lots; nonbottleneck lots
B. sized lots; constrained lots
C. buffer lots; transfer lots
D. transfer batches; process lots
E. process batches; transfer batches
Correct Answer: E
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Scheduling pertains to:
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A. hiring workers.
B. timing the use of specific resources.
C. buying machinery.
D. determining the lowest cost.
E. process selection.
Correct Answer:B
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The priority rule where jobs are processed according to the smallest ratio of due date to processing time is:
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A. EEDD.
B. CR.
C. FCFS.
D. S/O.
E. SPT.
Correct Answer: B
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The two different approaches to load work centers in job-shop scheduling are:
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A. load charts and schedule charts.
B. Gantt charts and assignment method.
C. linear programming and makespan.
D. infinite charting and finite charting.
E. infinite loading and finite loading.
Correct Answer: E
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Ensuring that the constraining resource is used to its maximum is an example of constraint:
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A. elimination.
B. elevation.
C. exploitation.
D. identification.
E. subordination.
Correct Answer: C
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The maximum possible output given a product mix, scheduling difficulties, quality factors, and so on is:
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A. utilization.
B. design capacity.
C. available capacity.
D.effective capacity.
F. efficiency.
Correct Answer: D
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Maximum capacity refers to the upper limit of:
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A. inventories.
B. supplies.
C. rate of output.
D. finances.
E. demand.
Correct Answer: C
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Which of the following is not a reason why capacity decisions are so important?
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A. Capacity is a long-term commitment of resources.
B. Capacity limits the rate of output possible.
C. Capacity affects operating costs.
D. Capacity affects organizations' images.
E. Capacity is a major determinant of initial costs.
Correct Answer: D
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Given the following information, what would efficiency be?
Effective capacity = 50 units per day
Design capacity = 100 units per day
Actual output = 30 units per day
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A. 80 percent
B. 90 percent
C. 50 percent
D. 40 percent
E. 60 percent
Correct Answer: E
Efficiency is actual output divided by effective capacity
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Efficiency is defined as the ratio of:
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A. design capacity to effective capacity.
B. effective capacity to actual output.
C. actual output to effective capacity.
D. design capacity to actual output.
E. actual output to design capacity.
Correct Answer: C
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Students at a major university must go through several registration steps. Officials have observed that it is typically the case that the waiting line at the fee-payment station is the longest. This would seem to suggest that the fee-payment station is the ___________ in the student registration process.
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A. capacity cushion
B. diseconomy of scale
C. bottleneck
D. first station
E. economy of scale
Correct Answer: C
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Which of the following is not a basic question in capacity planning?
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A. when is it needed
B. how much is needed
C. who will pay for it
D. what kind is needed
E. what it will be used for
Correct Answer: C
Type, quantity, and timing are the essential elements of the capacity decision.
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Utilization is defined as the ratio of:
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A. actual output to effective capacity.
B. actual output to design capacity.
C. effective capacity to actual output.
D. design capacity to effective capacity.
E. design capacity to actual output.
Correct Answer B
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Last quarter, a retailer sold 8,000 T-shirts, 7,000 of which were sold directly from on-hand inventory. This retailer's ________ was 88 percent.
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A. inventory yield
B. profit margin
C. inventory turnover
D. working yield
E. fill rate
Correct Answer E
Fill Rate was 88%
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It is especially the case for small businesses that closer interactions and increased agility make __________ relatively more attractive.
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A. domestic suppliers
B. risk transfer
C. decentralized purchasing
D. global suppliers
E. centralized purchasing
Correct Answer: A
For small businesses, the advantages of domestic suppliers include lower shipping times and costs, closer interactions with suppliers, and increased agility.
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Which of the following would not usually be a main factor in selecting a vendor?
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A. vendor services
B. location
C. inventory turnover
D. quality
E. price
Correct Answer: C
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The interface between the firm and its suppliers is:
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A. production.
B. distribution.
C. purchasing.
D. engineering.
E. accounting.
Correct Answer: C
The purchasing function bridges the organization and its suppliers.
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Examination of the sources of supply for purchased parts or materials in order to improve performance is called:
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A. vendor analysis.
B. negotiated purchasing.
C. value analysis.
D. disintegration.
E. reverse engineering.
Correct Answer: A
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Which of the following is not true of vendor analysis?
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A. Its purpose is to reduce costs and/or improve performance of purchased goods or services.
B. It involves an examination of the function of purchased parts or raw materials.
C. If improvements are identified, purchasing implements those that purchasing agrees are justified.
D. It is usually performed only periodically.
E. Representatives from design and operations may work with purchasing.
Correct Answer: B
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The ultimate objective in a lean system is:
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A. low to moderate levels of inventory.
B. high quality, zero defects.
C. minimal waste (less than 6 percent).
D. balanced and rapid flow.
E. all of these.
Correct Answer: D
Balance and rapid flow is key to being a wast-free system
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Although lean systems tend to produce standardized product lines, to provide production variety without accompanying waste, lean producers often use __________ in __________.
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A. modular parts; flexible designs
B. capable parts; automated designs
C. standardized parts; modular designs
D. jidoka parts; kaizen designs
C. heijunka parts; kanban designs
Correct Answer: C
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The ultimate goal of lean operations is to have:
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A. no setup times.
B. no in-process inventories.
C. cross-trained workers capable of handling every process.
D. a smooth, rapid flow of materials through the system.
E. all of the choices.
Correct Answer: D
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Building up an inventory of standard parts or modules instead of immediately producing the finished end items is the essence of:
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A. kanban.
B. delayed differentiation.
C. autonomation.
D. matrix management.
E. and on.
Correct Answer B
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A basic requirement for operating with the low inventories present in lean systems is:
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A. Major problems must have been solved.
B. Inventories must be reduced rapidly.
C. Inventory space must be increased.
D. Inventory investment must be increased.
E. Major problems must be identified.
Correct Answer: A
Identifying problems does not facilitate low-inventory operations. Solving problems does.
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Process design that supports lean does not include:
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A. minimal inventory storage.
B. production flexibility.
C. small lot sizes.
D. setup time reduction.
E. duplicate facilities.
Correct Answer: E
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With regard to suppliers, lean systems typically require:
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A. the lowest price possible.
B. long-term relationships and commitments.
C. multiple sources from which to purchase.
D. delivery of large lots at regular intervals.
E. buyer inspection of goods and materials.
Long-term relationships help ensure that suppliers become partners in the lean firm's waste-reduction efforts.
Correct answer B
Long-term relationships help ensure that suppliers become partners in the lean firm's waste-reduction efforts.
