Question 1

Which of the following statements about learning curves is BEST?

Accepted Answer

Underestimated learning effects may cause overestimation of capacity needs.

Question 2

Consider the system composed of four processes linked by a conveyor belt. There is no storage between these processes pictured below. Which statement is BEST       Four Boxes

Accepted Answer

Overall system improvement efforts should focus on process 1.

Question 3

A customer enters a business and joins the one line that snakes back and forth through the lobby in order to receive service. The initial part of the service is performed by one customer service representative, after which the customer enters a second, shorter line to complete the service before leaving the establishment. Which description of this waiting line system is appropriate?

Accepted Answer

single channel, multiple phase

Question 4

Customer arrivals at a dry cleaning service occur randomly throughout the day. The distribution that is usually used to model the interval between arrivals is the:

Accepted Answer

Poisson distribution.

Question 5

Which of the following statements about simulation is BEST?

Accepted Answer

Simulation permits managers to test the effects of new policies and procedures without disrupting customer service.

Question 6

Which of the following is characteristic of Monte Carlo simulation?

Accepted Answer

Statistical sampling is used to create outcomes for many trials.

Question 7

Each outcome of flipping a fair coin is completely independent of the previous flip. This outcome is known as:

Accepted Answer

memory less.

Question 8

Which of the following statements about theoretical capacity is BEST?

Accepted Answer

Running a factory at this level for a short time is often better than permanently raising resource levels.

Question 9

A bottling machine has a theoretical capacity of 100 bottles per minute. During every ten hour shift it operates continuously but is shut down once for 30 minutes for cleaning, inspection, and lubrication. What is its rated capacity?

Accepted Answer

95 bottles/minute

Question 10

Which of these factors typically does NOT impact capacity?

Accepted Answer

fixed cost

Question 11

A lead capacity strategy has the advantage of:

Accepted Answer

assuring adequate capacity during all types of growth.

Question 12

Which of the following statements about capacity strategies is NOT correct?

Accepted Answer

A lag capacity strategy would be well-suited for a period of high growth.

Question 13

An example of a variable cost is:

Accepted Answer

a payment to your raw materials supplier.

Question 14

If a firm cannot make a profit regardless of output volume, then:

Accepted Answer

VC > R.

Question 15

The bank manager of a busy downtown location found herself unable to find good teller help so she invested in an ATM to handle the routine withdrawals that tended to occupy an inordinate amount of the teller\'s time. Before she installed the ATM she found that customers were arriving on average every 2 minutes (Poisson distributed) and it took a teller 30 seconds (exponentially distributed) to process their request. The ATM is able to maintain a constant 30 second service time. What is the impact on system utilization?

Accepted Answer

There is no change.

Question 16

One advantage of simulation modeling is:

Accepted Answer

it allows the user to conduct a \"what if\" analysis.

Question 17

Which of the following is NOT an appropriate measure of capacity?

Accepted Answer

thickness of laminate on a desktop

Question 18

Jimbo Elrod has obtained fixed and variable cost information for four potential locations for his professional wrestling school and summarized it in tabular form below. All values are in dollars.    Site Fixed Cost Variable Cost  A 10,000 24  B 12,000 20  C 14,000 18  D 16,000 17           What is the break even point for location D if Jimbo decides to charge $21 per

Accepted Answer

4,000 students

Question 19

A company with fixed costs of $10,000 per month has a target price of $165 for their sole product, a heat shield for masonry fireplaces. What level of output represents their break-even point if their variable cost for producing is $35 per

Accepted Answer

between 70 and 80 units

Question 20

Wally\'s Filling Station is manned by one capable attendant that can fill your tank and check your tires, oil, and water in 5 minutes. If four customers arrive each hour, and the service and arrival rates are governed by the Poisson distribution, what is the utilization of the attendant?

Accepted Answer

0.33

Question 21

Customers enter the stadium and purchase refreshments before they are shown to their seats by experienced ushers. The customers are considered objects in the simulation model.

Accepted Answer

True

Question 22

Building rental and depreciation on capital equipment are examples of variable costs.

Accepted Answer

False

Question 23

The Greek letter lambda (Î») is used to represent the service rate of a waiting line system.

Accepted Answer

False

Question 24

In general, higher conformance quality reduces capacity since the extra care taken during production slows the output rate.

Accepted Answer

False

Question 25

A firm\'s capacity cannot be limited by members of its supply chain.

Accepted Answer

False

Question 26

A firm is able to meet current demand. If it adopts a lead capacity strategy, then it is probably making the assumption that demand will increase in the future.

Accepted Answer

True

Question 27

Virtual supply chains have the advantage of efficiency, but this advantage is gained in a trade-off with decreased flexibility.

Accepted Answer

False

Question 28

Capacity is the capability of a worker, machine, work center, plant, or organization to produce output per time period.

Accepted Answer

False

Question 29

All waiting line formulas assume that customers are served on a first-come first-served (FCFS) basis.

Accepted Answer

True

Question 30

A traditional university classroom has room for 30 students and is scheduled for use during 12 consecutive one hour periods from 8:00 a.m. to 8:00 p.m. in the spring semester. Its theoretical capacity is therefore half of its rated capacity.

Accepted Answer

False

Question 31

For a given fixed cost and revenue, as the variable cost rises, the break-even point also rises.

Accepted Answer

False

Question 32

A waiting line cannot be both multiple-channel and multiple-phase.

Accepted Answer

False

Question 33

In a decision tree, outcome points are under direct control of the decision maker and show the results of choices.

Accepted Answer

False

Question 34

The break-even formula FC/(R-VC) does not include a provision for a price break if a customer purchases a large quantity.

Accepted Answer

True

Question 35

Learning curve theory suggests that productivity will increase as people and systems learn to perform tasks more efficiently.

Accepted Answer

True

Question 36

A ninety percent learning curve is steeper than an eighty percent learning curve.

Accepted Answer

False

Question 37

The Theory of Constraints would support the statement that a chain is only as strong as its weakest link.

Accepted Answer

True

Question 38

A busy toll highway that has four toll collectors for northbound traffic is an example of a single-channel, single-phase system.

Accepted Answer

False

Question 39

In operations and supply chain environments that must deal with random demand, it is virtually impossible to achieve very high capacity utilization levels and still provide acceptable customer service.

Accepted Answer

True

Question 40

In waiting line theory, the number of channels refers to the number of customer waiting lines in the system.

Accepted Answer

True

Question 41

In most waiting line models, customers are assumed to arrive at random intervals, based on a normal distribution.

Accepted Answer

False

Question 42

With only a half hour for lunch I screamed into the parking lot of the nearest Golden Arches Supper Club at 40 miles an hour. When I saw the drive through line was 15 cars deep I didn\'t bother getting in line; I was off to visit the Colonel. This behavior might be described as balking.

Accepted Answer

True

Question 43

Everything about two different waiting line systems is the same except one system has a constant service time and the other has a Poisson distributed service time. Customers using the system with the constant service time will have half the waiting time of the customers using the system with Poisson distributed service times.

Accepted Answer

True

Question 44

The term time compression refers to the phenomenon that a server tends to speed up the service process if the waiting line exceeds some critical number of customers.

Accepted Answer

False

Question 45

It is more costly to create a more realistic simulation than one that is less realistic.

Accepted Answer

True

Question 46

In most cases, simulation models provide optimal solutions to problems just like most of the equations presented in your textbook.

Accepted Answer

False

Question 47

Monte Carlo simulation uses statistical sampling to create outcomes for a large number of trials.

Accepted Answer

True

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