final exam

Question 1

If demand is not uniform and constant, then stockout risks can be controlled by:

a. spreading annual demand over more frequent, but smaller, orders.
b. adding safety stock.
c. reducing the reorder point.
d. raising the selling price to reduce demand.
e. increasing the EOQ

Answer 1

b. adding safety stock.

Question 2

Building morale and meeting staffing requirements that result in an efficient, responsive
operation are easier if managers have:

a. more job classifications and fewer work-rule constraints.
b. more job classifications and more work-rule constraints.
c. fewer job classifications and fewer work-rule constraints.
d. fewer job classifications and more work-rule constraints

Answer 2

c.fewer job classifications and fewer​ work-rule constraints.

Question 3

Which of the following statements regarding aggregate planning in services is FALSE?

a. Approaches to aggregate planning differ by the type of service provided.
b. Level scheduling is far more common than using a chase strategy.
c. Aggregate planning in some service industries may be easier than in manufacturing.
d. Some service organizations conduct aggregate planning in exactly the same way as
manufacturing firms, but with demand management taking a more active role.
e. Labor is the primary aggregate planning vehicle.

Answer 3

b. Level scheduling is far more common than using a chase strategy.

Question 4

Service level is:
a. the probability of not stocking out.
b. the probability of stocking out.
c. something that should be minimized in retail.
d. calculated as the cost of an overage divided by (the cost of shortage + the cost of
overage) for single-period models.
e. the probability of stocking out and calculated as the cost of an overage divided by (the
cost of shortage + the cost of overage) for single-period models

Answer 4

a. the probability of not stocking out.

Question 5

Which of the following characteristics best describes repetitive focus?

a. It is widely used for the manufacture of steel.
b. Operators are broadly skilled.
c. low volume, high variety
d. It uses sophisticated scheduling to accommodate custom orders.
e. Its output is a standardized product produced from modules.

Answer 5

e. Its output is a standardized product produced from modules.

Question 6

What is a concept that results in material being produced only when requested and moved to
where it is needed just as it is needed?

a. pull system
b. procrastination system
c. push system
d. requisition system

Answer 6

a. pull system

Question 7

What sends a lot to two different machines for the same operation?

a. overlapping
b. lot splitting
c. pegging
d. operations splitting

Answer 7

d. operations splitting

Question 8

What describes a system that stores and displays information that can be linked to a geographic
location?

a. GIS
b. LIS
c. GLOC
d. AIS
e. LOC

Answer 8

a. GIS

Question 9

Management should foster a work environment based on

a. nepotism.
b. disloyalty.
c. intimidation.
d. mutual trust and commitment.

Answer 9

d. mutual trust and commitment.

Question 10

To develop a standard or benchmark, firms need to start with

a. forming a benchmark team.
b. identifying benchmarking partners.
c. collecting benchmarking information.
d. determining what to benchmark.

Answer 10

d. determining what to benchmark.

Question 11

. Which of the following terms implies an increase in responsibility and control in the vertical
direction?
a. job re-design
b. job enrichment
c. job satisfaction
d. job enlargement
e. job rotation

Answer 11

b. job enrichment

Question 12

12. Which of the following would most likely fall under the scope of only an operations manager?
    a. new product plans
    b. Setting inventory levels
    c. capital investments
    d. facility location/capacity
    e. research and development

Answer 12

b. Setting inventory levels

Question 13

The “four Ms” of cause-and-effect diagrams are:
a. mentality, motivation, management, and manpower.
b. material, management, manpower, and motivation.
c. named after four quality experts.
d. material, machinery/equipment, manpower, and methods.
e. material, methods, men, and mental attitude.

Answer 13

d. material, machinery/equipment, manpower, and methods.

Question 14

14. Solving a load-distance problem for a process-oriented layout requires that:

a. takt time be less than 1.
b. the cost to move a load be the same for all possible paths.
c. Proplanner software examines all possible department configurations.
d. the difficulty of movement varies for all possible paths.
e. pickup and set-down costs be constant from department to department.

Answer 14

e. pickup and set-down costs be constant from department to department.

(d if it says same or e if it says vary)

Question 15

15. Which of the following statements is true regarding lean sustainability?

a. Lean requires examining the systems in which the firm and its stakeholders operate.
b. Lean and sustainability both seek to maximize resource and economic efficiency.
c. Lean drives out waste because waste has adverse affects on the environment, while
sustainability drives out waste because waste adds nothing for the customer
d. Sustainability is focused on only the immediate process and system

Answer 15

b. Lean and sustainability both seek to maximize resource and economic efficiency.

Question 16

16. Which of the following statements regarding control of service inventories is TRUE?

a. Good personnel selection, training, and discipline are easy.
b. Effective control of all goods leaving the facility is one applicable technique.
c. Service inventory is a fictional concept, because services are intangible.
d. Service inventory needs no safety stock, because there’s no such thing as a service
stockout

Answer 16

b. Effective control of all goods leaving the facility is one applicable technique.

Question 17

. Which of the following is NOT one of the criteria used to evaluate scheduling performance?
a. maximize WIP
b. maximize utilization
c. minimize completion time
d. minimize customer waiting time

Answer 17

a. maximize WIP

Question 18

Which among the following has the highest level of job expansion along the job design
continuum?
a. enlargement
b. empowerment
c. specialization
d. enrichment

Answer 18

b. empowerment

Question 19

The sequence of work for a job is also known as its
a. path.
b. load.
c. routing.
d. trajectory

Answer 19

c. routing.

Question 20

Which of the following could reduce costs and increase profit?
a. increased productivity
b. flexible pricing
c. improved reputation
d. improved response

Answer 20

a. increased productivity

Question 21

A flexible workweek is sometimes called
a. a compressed workweek.
b. a part-time workweek.
c. flextime.
d. a jellyfish workweek

Answer 21

a. a compressed workweek.

Question 22

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:
a. scatter diagram.
b. Pareto chart.
c. cause-and-effect diagram.
d. flowchart.
e. quality loss function

Answer 22

b. Pareto chart.

Question 23

Which of the following statements regarding the gross material requirements plan is TRUE?

a. It shows total demand for an item.
b. It requires several inputs, including an accurate bill of material.
c. It combines a master production schedule with the time-phased schedule.
d. It shows when an item must be ordered from a supplier or when production must be
started.
e. All of these are true

Answer 23

e. All of these are true

Question 24

Which of the following statements is NOT true about MRP?
a. MRP is an independent demand technique used in a production environment.
b. MRP provides a clean structure for dependent demand.
c. MRP uses a bill-of-material, inventory, expected receipts, and a master production
schedule to determine material requirements.
d. MRP has evolved as the basis for Enterprise Resource Planning

Answer 24

a. MRP is an independent demand technique used in a production environment.

Question 25

Which of the determinants of service quality involves having the customer’s best interests at
heart?
a. tangibles
b. responsiveness
c. access
d. courtesy
e. credibility

Answer 25

e. credibility

Question 25

. Activity charts

a. depict right- and left-hand motions.
b. are used to study and improve the utilization of an operator and a machine.
c. are graphic representations that depict a sequence of steps for a process.
d. are schematics used to investigate movement of people or material.

Answer 25

b. are used to study and improve the utilization of an operator and a machine.

Question 26

To develop a standard or benchmark, firms need to start with
a. collecting benchmarking information.
b. forming a benchmark team.
c. determining what to benchmark.
d. identifying benchmarking partners

Answer 26

c. determining what to benchmark.

Question 27

The Japanese concept of a company coalition of suppliers is:
a. poka-yoke.
b. dim sum.
c. keiretsu.
d. illegal.
e. kaizen.

Answer 27

c. keiretsu.

Question 28

In supply chain management, ethical issues:
a. become more complex the more global is the supply chain.
b. may be guided by the principles and standards of the Institute for Supply Management.
c. may be guided by company rules and codes of conduct.
d. are particularly important because of the enormous opportunities for abuse.
e. All of these are true.

Answer 28

e. All of these are true.

Question 29

Which of the following is NOT classified as a work-environment factor?
b. illumination
c. temperature and humidity
d. noise and vibration
e. feedback

Answer 29

e. feedback

Question 30

What is the process of breaking an aggregate plan into greater detail?
a. disaggregation
b. aggregation
c. decomposition
d. S&OP

Answer 30

a. disaggregation

Question 31

In MRP, the number of units projected to be available at the beginning of each time period refers
to:
a. projected on hand.
b. net requirements.
c. the amount necessary to cover a shortage.
d. planned order releases.
e. scheduled receipts.

Answer 31

a. projected on hand.

Question 32

What process uses warehousing to add value to a product through component modification,
repair, labeling, and packaging?
a. servicescaping
b. customizing
c. ambient conditioning
d. cross-docking

Answer 32

b. customizing

Question 33

Which of the following occurs first within a production planning system?
a. master production schedule
b. priority scheduling for products
c. aggregate planning
d. detailed work schedules for people

Answer 33

c. aggregate planning

Question 34

A system using an automated work cell controlled by electronic signals from a common
centralized computer facility is called:
a. an automatic guided vehicle (AGV) system.
b. robotics.
c. a manufacturing cell.
d. a flexible manufacturing system.
e. an adaptive control system.

Answer 34

d. a flexible manufacturing system.

Question 35

Which of the following TQM tools would be best suited for displaying the number of students
majoring in each business discipline?
a. flowchart
b. scatter diagram
c. cause-and-effect diagram
d. histogram

Answer 35

d. histogram

Question 36

. Generally the goal of assembly line balancing is to
a. minimize the efficiency of the line.
b. minimize imbalance between machines or personnel while meeting a required output
from the line.
c. determine the maximum time that an item is allowed at a workstation.
d. maximize the number of workstations.

Answer 36

b. minimize imbalance between machines or personnel while meeting a required output
from the line.

Question 37

Which of the following does NOT support the retail layout objective of maximizing customer
exposure to products?
a. Use prominent locations for high-impulse and high-margin items.
b. Use end-aisle locations.
c. Locate high-draw items around the periphery of the store.
d. Convey the store’s mission with the careful positioning of the lead-off department.
e. Maximize exposure to expensive items

Answer 37

e. Maximize exposure to expensive items

Question 38

0. The do-it-yourselfer plucked a gallon can of base paint from the shelf of the local hardware store
   and handed it to Keith, the cheerful clerk at the paint counter. Their eyes met briefly and the doit-yourselfer silently handed over sample 150C-1, Musical Mist, to the clerk. It was impractical to
   keep several gallons of every possible color on the shelves at the hardware store, so the paint
   manufacturer had created clever workaround. The workaround was a computer-based system that
   added predetermined quantities of pigments to a gallon can of base paint depending on the
   desired shade, in this case, Musical Mist. The hardware store now needed to stock only the base
   paint, this machine, and a small supply of paint pigments in order to create the thousands of
   colors in its catalog. This scenario is a prime example of
   a. the bullwhip effect.
   b. postponement.
   c. drop shipping.
   d. vendor-managed inventory

Answer 38

b. postponement.

Question 38

Which of the following statements regarding work-in-process (WIP) inventory is FALSE?
a. During most of the time a product is “being made,” it is in fact sitting idle.
b. Actual “run” time is usually a significant portion of the material flow time.
c. WIP inventory describes products or components that are no longer raw materials but
have yet to become finished products.
d. WIP exists because of flow time.
e. Reducing flow time reduces WIP inventory.

Answer 38

b. Actual “run” time is usually a significant portion of the material flow time.

Question 39

1. Workspace can inspire informal and productive encounters if it balances three physical and social
   aspects:
   a. product, people, and permission.
   b. proximity, privacy, and permission.
   c. proximity, people, and permission.
   d. product, privacy, and permission.

Answer 39

b. proximity, privacy, and permission.

Question 40

Which category of inventory holding costs has a much higher percentage than average for rapidchange industries such as tablets and smart phones?
a. labor cost
b. housing costs
c. investment costs
d. pilferage, scrap, and obsolescence
e. material handling costs

Answer 40

d. pilferage, scrap, and obsolescence

Question 40

. What is a successful technique used by companies such as Ingall Ship Building Corporation to
avoid some of the difficult problems producing items in fixed-position layouts?
a. hire cross-trained workers
b. use blanket purchase contracts that cover projected purchasing needs over a one-year
time period
c. complete as much of the project as possible offsite
d. hire time-flexible workers

Answer 40

c. complete as much of the project as possible offsite

Question 40

What are the four stages of supplier selection?
a. negotiations, contracting, centralized purchasing, and E-procurement
b. introduction, growth, maturity, and decline
c. supplier evaluation, supplier development, negotiations, and contracting
d. supplier evaluation, negotiations, supplier acquisition, and supplier development
e. supplier evaluation, supplier development, negotiations, and centralized purchasing

Answer 40

c. supplier evaluation, supplier development, negotiations, and contracting

Question 41

Demand for a given item is said to be dependent if:
a. there is a deep bill of material.
b. the item has several children.
c. the finished products are mostly services (rather than goods).
d. it originates from the external customer.
e. it is a component of a clearly identifiable parent

Answer 41

e. it is a component of a clearly identifiable parent

Question 42

Which of the following is NOT one of the five elements for each city that geographic information
systems use to analyze location decision factors?
a. residential areas
b. transportation options
c. cultural and entertainment centers
d. rivers, mountains, lakes, and forests

Answer 42

d. rivers, mountains, lakes, and forests

Question 42

Which of the following statements regarding “proximity” in the location decision is FALSE?
a. Reduction in bulk during production is a good reason for a manufacturer to locate near
the supplier.
b. Manufacturers want to be near customers when their product is bulky, heavy, or fragile.
c. Service organizations find that proximity to suppliers is the most critical primary location
factor.
d. Clustering among fast-food chains occurs because they need to be near high traffic flows.
e. Perishability of raw materials is a good reason for manufacturers to locate near the
supplier, not the customer.

Answer 42

d. Clustering among fast-food chains occurs because they need to be near high traffic flows.

Question 43

Which of the following mitigation tactics could reduce economic risk?
a. subcontractors on retainer
b. multiple transportation modes and warehouses
c. purchasing contracts that address price fluctuations
d. franchising and licensing

Answer 43

c. purchasing contracts that address price fluctuations

Question 43

. Which of the following is most likely to affect the location decision of a service firm rather than a
manufacturing firm?
a. labor costs
b. energy and utility costs
c. attitude toward unions
d. parking and access
e. cost of shipping finished goods

Answer 43

d. parking and access

Question 44

Which of the following is one of the main advantages of a product-oriented layout?
a. low capital cost
b. high customer exposure rates
c. employability of highly skilled labor
d. high flexibility
e. low variable cost per unit

Answer 44

e. low variable cost per unit

Question 45

A goods-producing location decision would likely emphasize the importance of which of the
following?
a. appearance and image
b. security and lighting
c. utility and labor costs
d. parking and access

Answer 45

c. utility and labor costs

Question 46

Which of the following is NOT one of the requirements of cellular production?
a. identification of families of products, often through the use of group technology codes or
equivalents
b. testing (poka-yoke) at each station in the cell
c. a high level of training, flexibility, and empowerment of employees
d. being self-contained, with its own equipment and resources
e. adequate volume for high equipment utilization

Answer 46

e. adequate volume for high equipment utilization

Question 47

What are the three classic types of negotiation strategies?
a. Theory X, Theory Y, and Theory Z
b. traditional auctions, reverse auctions, and online exchanges
c. cost-based price model, market-based price model, and competitive bidding
d. supplier evaluation, supplier development, and supplier selection
e. many suppliers, few suppliers, and keiretsu

Answer 47

c. cost-based price model, market-based price model, and competitive bidding

Question 48

The 5Ss:
a. can be used to assist with necessary changes in organizational culture.
b. have the “flavor” of a housekeeping list.
c. have become a list of seven items in American practice.
d. are a checklist for lean operations.
e. All of these are true.

Answer 48

e. All of these are true.

Question 49

Which of the following is NOT an example of tangible costs?
a. public transportation facilities
b. labor
c. utilities
d. depreciation

Answer 49

a. public transportation facilities

Question 50

Warehouses sometimes perform certain other functions besides storing goods. Which of the
following is NOT typically one of those functions?
a. cross-docking
b. purchasing
c. postponement
d. break-bulk activities
e. consolidation point

Answer 50

b. purchasing

Question 51

All of the following costs are likely to decrease as a result of better quality EXCEPT:
a. scrap costs.
b. maintenance costs.
c. warranty and service costs.
d. inspection costs.
e. customer dissatisfaction costs

Answer 51

b. maintenance costs.

Question 52

Kanban is associated with all EXCEPT which of the following?
a. moving inventory only as needed
b. small lot sizes
c. signals, such as cards, lights, or flags
d. reductions in inventory
e. increased material handling

Answer 52

e. increased material handling

Question 53

In the basic EOQ model, if the cost of placing an order doubles, and all other values remain
constant, the EOQ will:
a. increase by about 41%.
b. increase by 100%.
c. increase, but more data is needed to say by how much.
d. increase by 200%.
e. either increase or decrease.

Answer 53

a. increase by about 41%.

Question 54

Prior to embarking on supply chain design, operations managers must first consider
a. how to select suppliers.
b. how to manage supply chain inventory.
c. “make-or-buy” and outsourcing decisions.
d. what kind of distribution network to have.

Answer 54

c. “make-or-buy” and outsourcing decisions.

Question 55

. The transportation model
a. determines the best pattern of shipments from several points of supply to several points
of demand.
b. finds the location of a single distribution center that minimizes distribution costs.
c. determines the crossover point between two different locations.
d. uses both qualitative and quantitative factors.

Answer 55

a. determines the best pattern of shipments from several points of supply to several points
of demand.

Question 55

Disaggregation:
a. converts product schedules and labor assignments to a facility-wide plan.
b. breaks the aggregate plan into greater detail.
c. transforms the master production schedule into an aggregate plan.
d. is an assumption required for the use of the transportation model in aggregate planning.
e. calculates the optimal price points for yield management

Answer 55

b. breaks the aggregate plan into greater detail

Question 56

Inventory control models assume that demand for an item is
a. identical to the demand for other items.
b. always independent on the demand for other items.
c. always dependent on the demand for other items.
d. either independent of or dependent on the demand for other items

Answer 56

d. either independent of or dependent on the demand for other items

Question 57

Which of the following is a function of inventory?
a. to take advantage of quantity discounts
b. to provide a selection of goods for anticipated customer demand and to separate the firm
from fluctuations in that demand
c. to decouple various parts of the production process
d. to hedge against inflation
e. All of these are functions of inventory

Answer 57

e. All of these are functions of inventory

Question 58

Major retailers lose ________ of overall profits due to poor or inaccurate inventory records.
a. 110% to 25%
b. 5% to 10%
c. 1% to 3%
d. 50%
e. 3% to 5%

Answer 58

a. 110% to 25%

Question 59

Which of the following statements is NOT true?
A-Adding flexibility to the production process can be a major competitive advantage.Building flexibility into a production process is usually inexpensive, but difficult.
b- Selecting the best equipment requires understanding the specific industry and available processes
and technology.
c-The selection of equipment requires considering cost, cash flow, market stability, quality,
capacity, and flexibility.
d-Selection of a particular process strategy requires decisions about equipment and technology

Answer 59

A-Adding flexibility to the production process can be a major competitive advantage.Building flexibility into a production process is usually inexpensive, but difficult.

Question 60

Distribution management focuses on which of the following?
a. setting dividend rates
b. allocation of demand among suppliers
c. incoming materials
d. the outbound flow of products
e. balancing an assembly line

Answer 60

d. the outbound flow of products

Question 61

With regard to the cost-based price model negotiation strategy, which of the following is true?
a. Prices float based on what the customer is willing to pay.
b. Prices are based upon supplier costs.
c. Prices are based in some way upon market standards agreed to by both supplier and
purchaser.
d. Potential suppliers each submit quotations as to price, delivery, and so on.

Answer 61

b. Prices are based upon supplier costs.

Question 61

What is the fundamental rethinking of business processes to bring about dramatic improvements
in performance?
a. process analysis
b. process design
c. process redesign
d. process strategy

Answer 61

c. process redesign

Question 62

Which of the following statements describes job rotation?
a. The job contains a larger number of similar tasks.
b. The operator’s schedule is flexible.
c. The operator is allowed to move, for example, from one type of CNC machine to another.
d. The operator works on different shifts on a regular basis.
e. The job includes some planning and control necessary for job accomplishment.

Answer 62

c. The operator is allowed to move, for example, from one type of CNC machine to another.

Question 63

Which of the following statements is TRUE regarding the master production schedule?
a. The schedule is independent of the aggregate plan.
b. The master production schedule sets the upper and lower bounds on the aggregate plan.
c. It disaggregates the aggregate plan.
d. It specifies the work-shift schedule for the assembly line workers.
e. It specifies what is to be made and how.

Answer 63

c. It disaggregates the aggregate plan.

Question 64

. The cost to produce the goods or services sold for a given period is referred to as
a. inventory investment.
b. inventory turnover.
c. weeks of supply.
d. cost of goods sold.

Answer 64

d. cost of goods sold.

Question 65

What does the Japanese word “kanban” mean?
a. low inventory
b. lot size of one
c. employee empowerment
d. continuous improvement
e. card

Answer 65

e. card

Question 66

Which of the following is consistent with a chase strategy?
a. vary workforce to meet demand requirements
b. vary production levels and workforce to meet demand requirements
c. vary production levels to meet demand requirements
d. little or no use of inventory to meet demand requirements
e. All of these are consistent with a chase strategy

Answer 66

e. All of these are consistent with a chase strategy

Question 67

What does TPS stand for?
a. Total Production Streamlining
b. Total Process Simplification
c. Transparent Processing System
d. Toyota Production System
e. Taguchi’s Production S’s

Answer 67

d. Toyota Production System

Question 68

Attribute inspection measures
a. if cause and effect are present.
b. whether or not the product attributes conform to the inspector’s personal tastes.
c. such dimensions as weight, speed, size, or strength to see if an item falls within an
acceptable range.
d. if the product is good or bad.

Answer 68

d. if the product is good or bad.

Question 69

Which critical ratio value implies that a job is already late?
a. 1
b. less than 1
c. 3.4
d. more than 100
e. 10

Answer 69

b. less than 1

Question 70

Orders are processed in the sequence in which they arrive if (the) ________ rule sequences the
jobs.
a. first come, first served
b. Johnson’s
c. critical ratio
d. slack time remaining
e. earliest due date

Answer 70

a. first come, first served

Question 71

MRP II is accurately described as:
a. an enhancement of MRP that plans for all levels of the supply chain.
b. MRP software designed for services.
c. material resource planning.
d. MRP with a new set of computer programs that execute on microcomputers.
e. a new generation of MRP software that extends MRP to planning and scheduling
functions.

Answer 71

c. material resource planning.

Question 72

Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events
through which a product travels is a:
a. poka-yoke.
b. check sheet.
c. Taguchi map.
d. flowchart.
e. Pareto chart

Answer 72

d. flowchart.

Question 73

Which of the following best describes backward integration?
a. sell products to a supplier or a distributor
b. build long-term partnerships with a few suppliers
c. produce goods or services previously purchased
d. develop the ability to produce products that complement the original product
e. develop the ability to produce the specified good more efficiently than before

Answer 73

c. produce goods or services previously purchased

Question 74

The role of decision trees in product design is to:
a. calculate the value of the moment of truth.
b. rank products in descending order of their dollar contribution to the firm.
c. calculate the expected value of each course of action.
d. better understand the customers’ wants.
e. calculate the value of quality function deployment

Answer 74

c. calculate the expected value of each course of action.

Question 75

Which of the following statements is NOT true regarding production technologies?
a. Flexible manufacturing systems and computer-integrated manufacturing are increasing
the distinction between low-volume/high-variety and high-volume/low-variety
production.
b. Robots are mechanical devices that use electronic impulses to activate motors and
switches.
c. CNC is machinery with its own computer and memory.
d. Vision systems combine video cameras and computer technology and are often used in
inspection roles.

Answer 75

a. Flexible manufacturing systems and computer-integrated manufacturing are increasing
the distinction between low-volume/high-variety and high-volume/low-variety
production.

Question 76

A system that keeps track of each withdrawal or addition to inventory continuously is
a. a perpetual inventory system.
b. a continuous inventory system.
c. a constant monitoring system.
d. a fixed period system.

Answer 76

a. a perpetual inventory system.

Question 77

The gross material requirements plan combines
a. a master production schedule and the net requirements plan.
b. a master production schedule and the time-phased schedule.
c. the net requirements plan and the time-phased schedule.
d. the net requirements plan and the aggregate plan.

Answer 77

b. a master production schedule and the time-phased schedule.

Question 78

Methods analysis focuses on:
a. the design of the machines used to perform a task.
b. establishing time standards.
c. reducing the number of skills needed for the completion of a task.
d. issues such as the movement of individuals or material.
e. evaluating training programs to see if they are efficient.

Answer 78

d. issues such as the movement of individuals or material.

Question 78

Which of the following lot-sizing techniques is likely to prove the most complex to use?
a. Wagner-Whitin
b. economic order quantity (EOQ)
c. lot-for-lot
d. periodic order quantity (POQ)
e. Which of the following is an advantage of ERP?

Answer 78

a. Wagner-Whitin

Question 79

Which of the following is used by methods analysis in analyzing body movement at the
workstation level?
A) MTM chart
B) flow diagram
C) operations chart
D) process chart
E) improvement chart

Answer 79

C) operations chart

Question 80

7. Which of the following is NOT an opportunity for effective management in the supply chain?
   A) accurate “pull” data
   B) vendor-managed inventory
   C) postponement
   D) local optimization
   E) CPFR

Answer 80

D) local optimization

Question 80

The phrase, “designed to show economy of motion by pointing out wasted motion and idle time
(delay),” describes which of the following?
A) a flow diagram
B) an activity chart
C) an operations chart
D) a process chart
E) a work sample

Answer 80

C) an operations chart

Question 81

Local optimization is a supply-chain complication best described as:
A) optimizing one’s local area without full knowledge of supply chain
needs.
B) obtaining very high production efficiency in a decentralized supply
chain.
C) the prerequisite of global optimization.
D) the result of supply chains built on suppliers with compatible corporate
cultures.
E) the opposite of the bullwhip effect.

Answer 81

A) optimizing one’s local area without full knowledge of supply chain
needs.

Question 82

The bullwhip effect:
A) occurs as orders are relayed from retailers to distributors to wholesalers
to manufacturers.
B) results in increasing fluctuations at each step of the sequence.
C) increases the costs associated with inventory in the supply chain.
D) occurs because of distortions in information in the supply chain.
E) All of the above are true

Answer 82

E) All of the above are true

Question 83

Drop shipping:
A) is equivalent to cross-docking.
B) is the opposite of a blanket order.
C) means the supplier will ship directly to the end consumer, rather than to
the seller.
D) is the same thing as keiretsu.
E) is a good reason to find a new firm to ship your products.

Answer 83

C) means the supplier will ship directly to the end consumer, rather than to
the seller.

Question 84

Which of the following statements regarding aggregate planning is TRUE?
A) In a pure level strategy, production rates or work force levels are
adjusted to match demand requirements over the planning horizon.
B) A pure level strategy allows lower inventories when compared to pure
chase and hybrid strategies.
C) Mixed strategies in aggregate planning may utilize inventory, work
force, and production rate changes over the planning horizon.
D) Because service firms have no inventory, the chase strategy does not
apply.
E) A disadvantage of the option of changing inventory levels is that it forces
abrupt production changes.

Answer 84

C) Mixed strategies in aggregate planning may utilize inventory, work
force, and production rate changes over the planning horizon.

Question 85

In level scheduling, what is kept uniform from month to month?
A) product mix
B) inventory levels
C) production/workforce levels
D) demand levels
E) sub-contracting levels

Answer 85

C) production/workforce level

Question 86

Which of the following is consistent with a chase strategy?
A) vary production levels to meet demand requirements
B) vary work force to meet demand requirements
C) vary production levels and work force to meet demand requirements
D) little or no use of inventory to meet demand requirements
E) All of the above are consistent with a chase strategy

Answer 86

E) All of the above are consistent with a chase strategy

Question 86

Which of the following is NOT consistent with level scheduling?
A) varying the use of subcontracting
B) finding alternative work for employees during low-demand periods
C) using built-up inventory to meet demand requirements
D) varying production levels and/or work force to meet demand
requirements
E) All of the above are inconsistent with the pure level strategy.

Answer 86

D) varying production levels and/or work force to meet demand
requirements

Question 87

Which of the following is NOT an advantage of level scheduling?
A) stable employment
B) lower absenteeism
C) matching production exactly with sales
D) lower turnover
E) more employee commitment

Answer 87

C) matching production exactly with sales

Question 88

Value-stream mapping:
A) is a variation of time-function mapping.
B) examines the supply chain to determine where value is added.
C) extends time function mapping back to the supplier.
D) starts with the customer and works backwards.
E) All of the above are true.

Answer 88

E) All of the above are true.

Question 89

One fundamental difference between a process chart and a flowchart is that:

A) the process chart adds a time dimension to the horizontal axis, while a
flowchart is not time-oriented.
B) the process chart includes the supply chain, while the flowchart stays
within an organization.
C) the process chart is more like a table, while the flowchart is more like a
schematic diagram.
D) the process chart focuses on the customer and on the provider’s
interaction with the customer, while the flowchart does not deal directly
with the customer.
E) None of these is true, because a process chart and a flowchart are the
same thing.

Answer 89

C) the process chart is more like a table, while the flowchart is more like a
schematic diagram.

Question 90

Service blueprinting:
A) provides the basis to negotiate prices with suppliers.
B) mimics the way people communicate.
C) determines the best time for each step in the process.
D) focuses on the provider’s interaction with the customer.
E) uses the schematic of a house to diagram a service process.

Answer 90

D) focuses on the provider’s interaction with the customer.

Question 91

Kaizen is a Japanese term meaning:
A) a foolproof mechanism.
B) just-in-time (JIT).
C) a fishbone diagram.
D) setting standards.
E) continuous improvement

Answer 91

E) continuous improvement

Question 92

What is a drawing of the movement of material, product, or people?
A) flowchart
B) process chart
C) service blueprint
D) process map
E) vision system

Answer 92

A) flowchart

Question 93

A successful TQM program incorporates all EXCEPT which of the following?
A) continuous improvement
B) employee involvement
C) benchmarking
D) centralized decision-making authority
E) JIT

Answer 93

D) centralized decision-making authority

Question 94

Which of the following statements regarding “Six Sigma” is TRUE?

A) The term has two distinct meanings–one is statistical; the other is a
comprehensive quality system.
B) Six Sigma means that about 94 percent of a firm’s output is free of
defects.
C) The Six Sigma program was developed by Toyota in the 1970s.
D) The Six Sigma program is for manufacturing firms and is not applicable
to services.
E) Six Sigma certification is granted by the International Standards
Organization (ISO).

Answer 94

A-The term has two distinct meanings–one is statistical; the other is a

Question 95

Members of quality circles are:
A) paid according to their contribution to quality.
B) external consultants designed to provide training in the use of quality
tools.
C) always machine operators.
D) all trained to be facilitators.
E) None of the above; all of the statements are false.

Answer 95

E) None of the above; all of the statements are false.

Question 96

Techniques for building employee empowerment include:

A) building communication networks that include employees.
B) developing open, supportive supervisors.
C) moving responsibility from both managers and staff to production
employees.
D) building high-morale organizations.
E) All of the above are techniques for employee empowerment

Answer 96

E) All of the above are techniques for employee empowerment

Question 97

Building high-morale organizations and building communication networks that include
employees are both elements of:
A) ISO 9000 certification.
B) Six Sigma certification.
C) employee empowerment.
D) Taguchi methods.
E) the tools of TQM.

Answer 97

C) employee empowerment.

Question 98

The process of identifying other organizations that are best at some facet of your
operations and then modeling your organization after them is known as:
A) continuous improvement.
B) employee empowerment.
C) benchmarking.
D) copycatting.
E) patent infringement.

Answer 98

C) benchmarking.

Question 99

Costs of dissatisfaction, repair costs, and decreased future demand are elements of cost in
the:
A) quality loss function.
B) Pareto chart.
C) ISO 9000 quality cost calculator.
D) process chart.
E) Ishikawa diagram.

Answer 99

A) quality loss function.

Question 100

Which of the determinants of service quality involves performing the service right the first time?
a. access
b. courtesy
c. credibility
d. reliability
e. responsivenes

Answer 100

d. reliability

Question 101

Which of the following phrases best describes process focus?

A) low volume, high variety
B) Finished goods are usually made to a forecast and stored.
C) Operators are less broadly skilled.
D) high fixed costs, low variable costs
E) low inventory

Answer 101

A) low volume, high variety