1. Make-to-stock processes
a. 0 are best when demand is predictable andsteady
b. 0 result in longer lead times to fulfillorders
c. 1 are best when demand is seasonal
d. 0 result in lower inventory costs
2. One way to decrease the process throughputtime would be
a. 0 to increase the process operation time
b. 0 to increase the process setup time
c. 1 to increase the process throughput rate
d. 0 to increase the work in process
3. Productivity is usually measured in __________units and __________.
a. 1 monetary, labor
b. 0 labor, time
c. 0 monetary, time
d. 0 labor, rate
4. When designing a process flow structuremanagers should consider
a. 0 required customer delivery times
b. 1 quantities required and the degree ofproduct customization
c. 0 potential supply chain disruptions
d. 0 prevailing local labor rates
5. Capital equipment, such as robotic assemblylines used to replace hourly workers,
a. 0 improve production flexibility
b. 0 lower fixed costs
c. 1 increase the break-even point
d. 0 increase variable costs
6. Learning curve theory is based on the premisethat
a. 0 the unit time required to produce a productwill decrease at an increasing rate
b. 0 the unit time to produce a product may beestimated by linear regression
c. 1 the unit time required to produce a productwill decrease at a decreasing rate
d. 0 the unit time required to produce a productwill decrease at a constant rate
7. When evaluating a new product developmentproject using net present value analysis, which of the followingwill make the project more attractive?
a. 0 Delaying the start of the project
b. 0 Making the project run over a longer periodof time
c. 1 Improving (bringing forward) the date whenrevenue will begin
d. 0 Reducing sunk costs
8. Value analysis/value engineering (VA/VE)
a. 0 relies on engineering inputs to minimize thecost of the product under development
b. 0 relies on research and development in orderto provide the latest technological improvements in the productunder development
c. 1 relies on customer provided inputs toprovide optimal performance at the lowest possible cost for theproduct under development
d. 0 relies on sales force input to design andbuild products at a cost making them easy to sell
9. When marketing, engineering, and operationssimultaneously develop a process (cross-functional integration),this approach is known as
a. 0 sequential process
b. 0 traditional approach
c. 1 concurrent engineering
d. 0 core competency
10. A corporate ISO 9001 certification
a. 1 applies only to service organizations
b. 0 mandates adoption of Six Sigmamethodology
c. 0 is required for TQM designation
d. 0 requires a periodic audit of the certifiedfirm
11. A free product replacement under warranty isan example of
a. 1 an external failure cost
b. 0 an internal failure cost
c. 0 the cost of quality
d. 0 a sales and marketing cost
12. An example of prevention costs as a type ofcost of quality is
a. 0 inspection
b. 0 testing
c. 1 train personnel
d. 0 rework
13. Inventory carrying costs
a. 0 decrease as inventory on hand becomesobsolete
b. 1 increase when the cost of capitalincreases
c. 0 increase when there is a stockout
d. 0 decrease when shipping charges increase
14. Fixed–time period ordering models(P-models)
a. 1 are most useful when demand ispredictable
b. 0 are most useful when demand unexpectedlyspikes
c. 0 are most useful when inventory carryingcosts are high
d. 0 are most useful when lead times are long
15. The optimal order quantity Q-opt
a. 0 increases as holding costs increase
b. 1 increases as setup costs increase
c. 0 is independent of demand
d. 0 decreases as demand increases
16. Materials requirement planning (MRP)
a. 1 is an infinite, backwards schedulingsystem
b. 0 is an infinite, forward schedulingsystem
c. 0 is a finite, backwards scheduling system
d. 0 is a finite, forward scheduling system
17. Job sequencing priority rules
a. 0 impact the lead times
b. 0 impact the due date
c. 0 impact job processing times
d. 1 impact the total completion time
18. According to Goldratt, a useful measure ofprofitabilty is
a. 1 cash flow
b. 0 gross margin on sales
c. 0 net profit divided by current assets
d. 0 earnings before interest and taxdeductions
19. According to Goldratt and Fox, inventorydollar days are
a. 1 inventory costs multiplied by days indepartment
b. 0 work in process in department divided bycycle time
c. 0 cost of good sold multiplied by process setup time
d. 0 work in process in department multiplied bycycle time
20. Matrix style organizations
a. 0 provide overall authority to the functionalmanager
b. 0 provide overall authority to the projectmanager
c. 0 do not allow participants to work on morethan one project at a time
d. 1 permit functional organizations to remainintact when projects are concluded
21. One advantage of the network planning modelsover the Gantt chart is that
a. 0 they are easy to use and quite widelyunderstood
b. 1 they provide a procedure for determining aproject’s critical path
c. 0 they are less costly to use
d. 0 they relate activities to time in a usablefashion
22. Outsourcing
a. 0 is always driven by the desire to reducecosts
b. 0 always results in mass lay-offs
c. 1 always turns fixed costs into variablecosts
d. 0 always allows an organization to improveprofit margins
23. Capacity planning will always
a. 0 require the planners to consider the cost ofnew equipment
b. 0 involve trade-offs between outsourcing andbuilding a new factory
c. 0 require a physical inventory count
d. 1 require a sales forecast
24. A kanban card is used to signal that
a. 0 work is ready to be moved to the nextstation
b. 0 a worker has run out of parts
c. 0 a machine has broken down
d. 1 work is authorized to replenish a downstreamstation
25. In a just-in-time manufacturingenvironment,
a. 0 value stream mapping is used to setinventory levels
b. 0 safety stock is kept at constant levels
c. 0 everything is made to order
d. 1 nothing is manufactured until it isneeded
26. Lean production was embodied in The ToyotaProduction System developed in Japan. Two philosophies of theJapanese culture are
a. 0 customer satisfaction and respect forpeople
b. 0 respect for people and increased employeeparticipation
c. 0 eliminate waste and increased employeeparticipation
d. 1 respect for people and eliminate waste
27. In the functional areas of finance andaccounting, __________ provide the basis for budgetary planning andcost control.
a. 0 time series analysis
b. 0 casual relationships
c. 1 forecasts
d. 0 demand management
28. The form of capacity planning that covers atime horizon for the next 6 to 18 months, with time increments thatare monthly or quarterly is
a. 0 short-range planning
b. 0 long-range planning
c. 1 intermediate-range planning
d. 0 sales and operation planning
29. Strategic capacity planning dictates thatwhen product demand temporarily declines,
a. 0 production overhead needs to be permanentlyreduced
b. 0 finished goods inventory needs to bereduced
c. 1 any existing external capacity should bereduced
d. 0 capacity cushions must be maintained
30. The centroid method calculates the optimallocation for a single facility based upon
a. 0 customer density function
b. 0 shipping costs between facilities
c. 0 overhead expenses
d. 1 the location of existing facilities andvolumes shipped
ScholarMatic: Explanation & Answer
Your ready answer from a verified tutor is just a click away for as little as $14.99
Click Order Now to get 100% Original Answer Customized to your instructions!
