question

If the actual order quantity is the same as the economic order quantity in a problem that meets the assumptions of the economic order quantity model shown below, the average amount of inventory on hand

answer

C) is one-half of the economic order quantity

question

A university has several technicians in the repair station to care for the computers in the student labs. This system is most likely

answer

multi-channel, limited population system

question

Which of the following is not an assumption of the M/M/1 model?

answer

Service times occur according to a normal curve.

question

13) A certain type of computer costs $1,000, and the annual holding cost is 25%. Annual demand is 10,000 units, and the order cost is $150 per order. What is the approximate economic order quantity?

answer

C) 110

question

A product whose EOQ is 40 experiences a decrease in ordering cost from $90 per order to $10. The revised EOQ is

answer

B) one-third as large -q decreases by the square root of 1/9 which is 1/3

question

When quantity discounts are allowed, the total cost-minimizing order quantity

answer

minimizes the sum of holding, ordering, and product costs

question

Which of the following are elements of inventory holding costs?

answer

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 cost.

question

Which of the international operations strategies uses the existing domestic model globally?

answer

A) international strategy B) global strategy C) transnational strategy D) *multidomestic strategy E) none of the above

question

Global Strategy

answer

-Standardized product -Economies of scale -Cross-cultural learning Examples: Texas Instruments Caterpillar Otis Elevator

question

International Strategy

answer

-Import/export or license existing product -Examples U.S. Steel Harley Davidson

question

Transnational Strategy

answer

-Move material, people, ideas across national boundaries -Economies of scale -Cross-cultural learning -Examples Coca-Cola Nestlé

question

Multidomestic Strategy

answer

-Use existing domestic model globally -Franchise, joint ventures, subsidiaries Examples -Heinz -The Body Shop -McDonald's -Hard Rock Cafe

question

What % of sales from new products is indicative of industry leaders?

answer

A)* 50% B) below 25% C) 25 to 35% D) above 60% E) 35 to 45%

question

Which of the following is true regarding value engineering?

answer

A) Value engineering occurs only after the product is selected and designed. B) Value engineering is the same as product-by-value analysis. C) *Value engineering is oriented toward improvement of design. D) Value engineering occurs during production when it is clear the product is a success. E) Value engineering can save substantial amounts of product cost, but quality suffers.

question

What are some benefits of value engineering?

answer

-Reduced complexity of products -Reduction of environmental impact -Additional standardization of products -Improved functional aspects of product -Improved job design and job safety -Improved maintainability (serviceability) of the product -Robust design

question

Which of the following is true regarding the two smoothing constants of the Forecast Including Trend (FIT) model?

answer

A) One constant is positive, while the other is negative. B) They are called MAD and cumulative error. C) Alpha is always smaller than beta. D) One constant smoothes the regression intercept, whereas the other smoothes the regression slope. E) *Their values are determined independently.

question

Which of the following are the primary functions of all organizations?

answer

D) marketing, operations, and finance/accounting

question

Eli Whitney, in the __________, provided the foundations for __________ in operations management.

answer

A) 1920s; statistical sampling

question

Cost cutting in international operations can take place because of

answer

E) all of the above

question

The fundamental purpose of an organization's mission statement is to

answer

B) define the organization's purpose in society

question

According to the text, which of the following strategic concepts allow firms to achieve their missions?

answer

B) differentiation, cost leadership, and quick response

question

Which answer choice uses the following three types of participants: decision makers staff personnel, and respondents?

answer

C) the Delphi method

question

The fundamental difference between cycles and seasonality is the

answer

A) duration of the repeating patterns

question

__________ expresses the error as a percent of the actual values, undistorted by a single large value.

answer

C) MAPE

question

A primary advantage of decision trees compared to decision tables is that decision trees

answer

E) can be used for sequential problems

question

An operations task performed at Hard Rock Café is

answer

D) preparing employee schedules

question

Which of the following statements is true?

answer

A) The person most responsible for initiating use of interchangeable parts in manufacturing was Eli Whitney.

question

The Ten Critical Decisions of Operations Management include

answer

C) process and capacity design

question

Which of the following does not represent reasons for globalizing operations?

answer

C) reduce responsiveness

question

The fundamental purpose of an organization's mission statement is to

answer

B) define the organization's purpose in society

question

Which of the following is least likely to be a Cost Leadership competitive advantage?

answer

D) broad product line

question

Standardization is an appropriate strategy in which stage of the product life cycle?

answer

C) maturity

question

Forecasts

answer

B) are rarely perfect

question

For a given product demand, the time series trend equation is 53 - 4 X. The negative sign on the slope of the equation

answer

C) is an indication that product demand is declining

question

A shadow price (or dual value) reflects which of the following in a maximization problem?

answer

C) the increase in profit that would accompany one added unit of a scarce resource

question

When should product strategy focus on forecasting capacity requirements?

answer

B) at the growth stage of the product life cycle

question

The dimensions, tolerances, materials, and finishes of a component are typically shown on a(n)

answer

A) assembly chart

question

A graphic technique for defining the relationship between customer desires and product/service is

answer

A) the House of Quality

question

Bridget's Hamburger Stand uses only 7 ingredients but offers 15 different burgers. This process is known as

answer

C) Modular Design

question

Which of the following would not be an operations function in a fast-food restaurant?

answer

B) designing the layout of the facility

question

Which of the following is not one of The Ten Critical Decisions of Operations Management?

answer

D) mass customization

question

Which of the following did the authors of the text book not suggest as a reason for globalizing operations?

answer

C) stockholder approval ratings

question

Which of the following is the best example of competing on low-cost leadership?

answer

A) A firm produces its product with less raw material waste than its competitors.

question

Which of the following statements about organizational missions is false?

answer

C) They are formulated after strategies are known.

question

) A six-month moving average forecast is better than a three-month moving average forecast if demand

answer

A) is rather stable

question

Sensitivity analysis helps to

answer

A) see the value of increased scarce resources B) determine even better solutions C) see the impact of parameter changes (such as changes in RHS values and changes to objective function coefficients) D) *A and C E) A, B, and C

question

Which of the following would represent an operations task performed at Hard Rock Café is

answer

D) preparing employee schedules

question

An operations manager is not likely to be involved in

answer

C) the identification of customers' wants and needs

question

Productivity can be improved by

answer

D) decreasing inputs while holding outputs steady

question

Which of the following did we not suggest might be a reason for globalizing operations?

answer

C) stockholder approval ratings

question

6) Which of the following is an example of competing on quick response?

answer

C) A firm's products are introduced into the market faster than its competitors' products.

question

7) Which of the international operations strategies uses the existing domestic model globally?

answer

D) multidomestic strategy

question

A problem that involves a sequence of decisions

answer

B) can be better analyzed with a decision tree than by a decision table

question

What % of sales from new products is indicative of industry leaders?

answer

50%

question

Which of the following is true regarding value engineering?

answer

D) Value engineering occurs during production when it is clear the product is a success.

question

Which of the following is true regarding the two smoothing constants of the Forecast Including Trend (FIT) model?

answer

E) Their values are determined independently.

question

Which of the following phrases best describes process focus?

answer

D) high fixed costs, low variable costs

question

Adding a complementary product to what is currently being produced is a demand management strategy used when

answer

C) the existing product has seasonal or cyclical demand

question

An improvement in quality must necessarily increase costs.

answer

False

question

Internal failure costs are associated with scrap, rework, and downtime.

answer

True

question

The phrase Six Sigma has two meanings. One is statistical, referring to an extremely high process capability; the other is a comprehensive system for achieving and sustaining business success.

answer

A. True

question

One of the ways that Just-In-Time (or JIT) influences quality is that by reducing inventory, bad quality is exposed.

answer

A. True

question

Pareto charts are a graphical way of identifying the few critical items from the many less important ones.

answer

A. True

question

A cause-and-effect diagram helps identify the source of a problem.

answer

A. True

question

Mistakes stemming from workers'? inadequate training represent an assignable cause of variation.

answer

A. True

question

The x-bar chart indicates that a gain or loss of uniformity has occurred in dispersion of a production process.

answer

B. False

question

If the process average is in control, then the process range must also be in control.

answer

B. False

question

A p-chart is appropriate to plot the number of typographic errors per page of text.

answer

B. False

question

A lot that is accepted by acceptance sampling is free of defects.

answer

B. False

question

In acceptance sampling, a manager can reach the wrong conclusion if the sample is not representative of the population it was drawn from.

answer

A. True

question

In aggregate planning, the amount of overtime and the size of the work force are both adjustable elements of capacity.

answer

A. True

question

The use of part-time workers as an aggregate planning option may be less costly than using full-time workers, but may also reduce quality levels.

answer

A. True

question

The x-bar chart tells us whether there has been a

answer

C) change in the central tendency of the process output

question

Three broad categories of definitions of quality are

answer

B) user-based, manufacturing-based, and product-based

question

Quality can improve profitability by reducing costs. Which of the following is not an aspect of reduced costs by quality improvements?

answer

A) flexible pricing

question

Which of the following statements regarding "?Six Sigma"? is true?

answer

The term has two distinct meanings-one is statistical; the other is a comprehensive quality system.

question

A quality loss function includes all of the following costs except

answer

D) sales costs

question

Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events through which a product travels is a

answer

B) process chart

question

Which of the following is not a typical inspection point?

answer

E) after a costly process

question

A Cp of 1.67 indicates how many sigma limits

answer

D) 4

question

In most acceptance sampling plans, when a lot is rejected, the entire lot is inspected and all defective items are replaced. When using this technique the AOQ (Average Outgoing Quality)

answer

B) improves (AOQ becomes a smaller fraction)

question

Dependence on an external source of supply is found in which of the following aggregate planning strategies?

answer

B) subcontracting

question

A firm uses the pure chase strategy of aggregate planning. It produced 1000 units in the last period. Demand in the next period is estimated at 800, and demand over the next six periods (its aggregate planning horizon) is estimated to average 900 units. In following the chase strategy, the firm will

answer

D) lay off workers to match the 200 unit difference

question

In the case "Process Control at Polaroid" we examined a shift in Polaroid's quality model from ___________ to _________.

answer

D) Logic control to statistical control

question

Which of the following aggregate planning models is based primarily upon a manager'?s past experience?

answer

C) the management coefficients model

question

Which choice below best describes the counterseasonal demand option?

answer

B) developing a mix of products that smoothes out their combined demands

question

Disaggregation

answer

breaks the aggregate plan into greater detail

question

A graphic technique for defining the relationship between customer desires and products/services is

answer

C) House of Quality

question

PDCA, developed by Shewhart, stands for which of the following?

answer

A) Plan-Do-Check-Act

question

A production manager at a pottery factory has noticed that about 70 percent of defects result from impurities in raw materials, 15 percent result from human error, 10 percent from machine malfunctions, and 5 percent from a variety of other causes. This manager is most likely using

answer

A production manager at a pottery factory has noticed that about 70 percent of defects result from impurities in raw materials, 15 percent result from human error, 10 percent from machine malfunctions, and 5 percent from a variety of other causes. This manager is most likely using

question

Which of the following is not one of the major categories of costs associated with quality?

answer

E) None of the above; they are all major categories of costs associated with

question

Which of the following is false regarding control charts?

answer

A) Values above the upper control limits always imply that the product's quality is exceeding expectations

question

"Poka-yoke" is the Japanese term for

answer

B) foolproof.

question

An x-bar control chart was examined and no data points fell outside of the limits. Can this process be considered in control?

answer

I) No, there could be a pattern to the points. II) No, the R-chart must be checked.A) Both I ; II

question

The "four Ms" of cause-and-effect diagrams are

answer

D) material, machinery/equipment, manpower, and methods.

question

One fundamental difference between a process chart and a process map is that

answer

C) the process chart is more like a table, while the process map is more like a

question

Which of the following technologies would enable a cashier to scan the entire contents of a shopping cart in seconds?

answer

D) RFID

question

When a lot has been accepted by acceptance sampling, we know that

answer

A) it has more defects than existed before the sampling B) it has had all its defects removed by 100% inspection C) it will have the same defect percentage as the LTPD D) it has no defects present E) *All of the above are false

question

Which of the following makes products that are friendlier to the environment?

answer

A) Using less materials B) Using More recycled materials C) Using less energy D) Using less harmful ingredients E) All of the above E) All of the above

question

Natural variations

answer

a. affect almost every production process b. are the many sources of variation that occur c. when a process is under control when grouped, form a pattern, or distribution d. are tolerated, within limits, when a process is under control e. *All of the above are true.

question

Which of the following is true regarding the process capability index Cpk?

answer

B) The larger the Cpk, the more units meet specifications.

question

Reducing the complexity of a product and improving a product's maintainability for use are activities of

answer

C) manufacturability and value engineering

question

9) Modern ATM machines are an automated example of a service design that

answer

A) reduces customer interaction

question

Three types of processes are

answer

C) process focus, repetitive focus, and product focus

question

14) Which of the following is not one of the four principles of bottleneck management?

answer

E) Bottlenecks should be moved to the end of the system process.

question

15) Basic break-even analysis typically assumes that

answer

B) variable costs and revenues increase in direct proportion to the volume of production

question

16) Which of the following statements about aggregate planning is true?

answer

D) Aggregate planning uses the adjustable part of capacity to meet production requirements.

question

18) Which of the following aggregate planning strategies is a "capacity option"?

answer

D) changing inventory levels

question

20) A successful quality strategy features which of the following steps?

answer

A) organization environment that fosters quality B) understanding the principles of quality C) engaging employees in the necessary activities for quality implementation D) A and C E)*A, B, and C

question

The process improvement technique that sorts the "vital few" from the "trivial many"

answer

B) Pareto analysis

question

A manager tells her production employees, "It's no longer good enough that your work fall anywhere within the specification limits. I need your work to be as close to the target value as possible." Her thinking is reflective of

answer

D) Taguchi concepts

question

23) Which of the following is false regarding control charts?

answer

A) *Values above the upper control limits always imply that the product's quality is exceeding expectations. B) Control charts are built so that new data can be quickly compared to past performance data. C) Control charts graphically present data. D) Control charts plot data over time. E) None of the above is false.

question

A restaurant kitchen contains a wall poster that shows, for each sandwich on the menu, a sketch of the ingredients and how they are arranged to make the sandwich. This is an example of a(n)

answer

A) assembly drawing

question

30) Which of the following is not a service design technique used to reduce cost?

answer

A) increasing customer interaction

question

Which of the following statements is not true?

answer

C) Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product.

question

A successful TQM program incorporates all of the following except

answer

D) centralized decision-making authority

question

The objective of aggregate planning is to meet demand while __________ over the planning period.

answer

A) minimizing cost

question

The role of quality in limiting a firm's product liability is illustrated by

answer

A) ensuring that contaminated products such as impure foods do not reach customers B) ensuring that products meet standards such as those of the Consumer Product Safety Act C) designing safe products to limit possible harm to consumers D) using processes that make products as safe or durable as their design specifications call for E)*All of the above are valid.

question

Which of the following is not one of the major categories of costs associated with quality?

answer

E) None of the above; they are all major categories of costs associated with quality.

question

If a sample of items is taken and the mean of the sample is outside the control limits the process is

answer

A) out of control and the cause should be established

question

The number of defects after a hotel room cleaning (sheets not straight, smears on mirror, missed debris on carpet, etc) should be measured using a(n)

answer

D) c-chart

question

A process that is assumed to be in control with limits of 89 +/- 2 had sample averages of the following- 87.1, 87, 87.2, 89, 90, 89.5, 88.5, and 88. Is the process in control?

answer

E) No, two or more consecutive points are very near the lower (or upper) limit.

question

Jars of pickles are sampled and weighed. Sample measures are plotted on control charts. The ideal weight should be precisely 11 oz. Which type of chart(s) would you recommend?

answer

C) X- and R-charts

question

A product-focused process is commonly used to produce

answer

C) high-volume, low-variety products

question

Ethical and environmentally friendly processes include which of the following?

answer

E) all of the above

question

Break-even is the number of units at which

answer

E) total revenue equals total cost

question

Which of these aggregate planning strategies adjusts capacity to match demand?

answer

B) using part-time workers

question

. Which of the following is not an advantage of level scheduling?

answer

C) matching production exactly with sales

question

A university has several technicians in the repair station to care for the computers in the student labs. This system is most likely

answer

D) multi-channel, limited population system

question

2) Which of the following is not an assumption of the M/M/1 model?

answer

E) Service times occur according to a normal curve.

question

15) When quantity discounts are allowed, the total cost-minimizing order quantity

answer

E) minimizes the sum of holding, ordering, and product costs

question

16) Which of the following are elements of inventory holding costs?

answer

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 cost.

question

3) If the actual order quantity is the same as the economic order quantity in a problem that meets the assumptions of the economic order quantity model shown below, the average amount of inventory on hand

answer

C) is one-half of the economic order quantity

question

3) If the actual order quantity is the same as the economic order quantity in a problem that meets the assumptions of the economic order quantity model shown below, the average amount of inventory on hand

answer

C) is one-half of the economic order quantity

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