ISDS Review Questions Test 2 Flashcards
Of the four approaches to capacity expansion, the approach that “straddles” demand:
A.uses incremental expansion.
B.works best when demand is not growing but is stable.
C.some times leads demand, and at other times lags.
D.uses one-step expansion.
E. Choices A and C are both correct
E. Choices A and C are both correct
Christopher’s Cranks uses a machine that can produce 100 cranks per hour. The firm operates 12 hours per day, five days per week. Due to regularly scheduled preventive maintenance, the firm expects the machine to be running during approximately 95% of the available time. Based on experience with other products, the firm expects to achieve an efficiency level for the cranks of 75%. What is the expected weekly output of cranks for this company?
A.5100
B.5700
C.8421
D.4275
E.4845
D.4275
A useful tactic for increasing capacity is to redesign a product in order to facilitate more throughput.
True
False
True
Product-focused processes:
A. tend to have long, continuous production runs.
B.are processes that accommodate a variety of products or customer groups.
C.are profitable because customers demand flexibility, not specialization.
D.allow more customization, but are not very efficient.
E.apply only to service firms, not to manufacturers.
A. tend to have long, continuous production runs.
Which of the following industries is most likely to have low equipment utilization?
A. commercial baking
B. auto manufacturing
C. steel manufacturing
D. television manufacturing
E. restaurants
E. restaurants
A process focused facility is
A. based on the classical assembly line.
B. a production facility organized around specific activities.
C. a rapid, low-cost production facility that caters to constantly changing unique customer desires.
D. a production facility organized around products.
B. a production facility organized around specific activities.
Which of the following statements is NOT one of the differentiation strategy decisions?
A. Gather and communicate market research data.
B. Modular design to aid product differentiation.
C. Minimize inventory to avoid product obsolescence.
D. Use buffer stocks to ensure speedy supply.
D. Use buffer stocks to ensure speedy supply.
Which of the following mitigation tactics is NOT designed to reduce the risk of information loss or distortion?
A. secure IT systems
B. alternate sourcing
C. redundant databases
D. training of supply chain partners on the proper interpretations and use of information
B. alternate sourcing
What is transferring a firm’s activities that have traditionally been internal to external suppliers?
A. make-or-buy
B. outsourcing
C. vertical integration
D. keiretsu network
B. outsourcing
What is a long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship?
A. drop shipping
B. postponement
C. blanket order
D. advanced shipping notice
C. blanket order
Excess bags of basic commodities such as flour and sugar that are stored in a restaurant’s kitchen represent which of the following wastes?
A. defective product
B. transportation
C. queues
D. inventory
E. overproduction
D. inventory
Which one of the following is a characteristic of a JIT partnership?
A. maximal product specifications imposed on supplier
B. active pursuit of vertical integration
C. third-party logistics never used
D. frequent deliveries in large lot quantities
E. removal of incoming inspection
E. removal of incoming inspection
Concerning relationships with suppliers, which of the following combinations is critical to the success of JIT?
A. distant relationships with trust
B. close relationships with trust
C. close relationships with skepticism
D. distant relationships with skepticism
E. none of the above
B. close relationships with trust
Which of the following is specifically characterized by a focus on continuous improvement, respect for people, and standard work practices?
A. Just-in-time (JIT)
B. Toyota Production System (TPS)
C. kanban
D. Lean operations
E. Material requirements planning (MRP)
B. Toyota Production System (TPS)
Low-level coding means that:
A. a component item is coded at the lowest level at which it appears in the BOM structure.
B. a final item has only a few levels in the BOM structure.
C. the code being used is the code for the lowest level in the BOM structure.
D. the lowest-paid staff member in the production department performs the coding.
E. the top level of the BOM is below level zero and that BOMs are not organized around the finished product.
A. a component item is coded at the lowest level at which it appears in the BOM structure.
Which of the following lot-sizing techniques results in the lowest holding costs?
A. the quantity discount model
B. Wagner-Whitin algorithm
C. EOQ
D. POQ
E. lot-for-lot
E. lot-for-lot
What is a dependent demand technique that uses a bill-of-material, inventory, expected receipts, and a master production schedule to determine material requirements?
A. Material requirements method (MRM)
B. Material requirements planning (MRP)
C. Economic order method (EOM)
D. Periodic order planning (POP)
B. Material requirements planning (MRP)
Which of the following statements about quantity discounts is FALSE?
A. In inventory management, item cost becomes relevant to order quantity decisions when a quantity discount is available.
B. If carrying costs are expressed as a percentage of value, EOQ is larger at each lower price in the discount schedule.
C. The larger the annual demand, the less attractive a discount schedule will be.
D. The smaller the ordering cost, the less attractive a discount schedule will be.
E. The cost-minimizing solution may or may not be where annual holding costs equal annual ordering costs.
C. The larger the annual demand, the less attractive a discount schedule will be.
Which of the following is an element of inventory holding costs?
A. investment costs
B. pilferage, scrap, and obsolescence
C. housing costs
D. material handling costs
E. All of the above are elements of inventory holding costs.
E. All of the above are elements of inventory holding costs.
A firm’s probability of a stockout for a popular item is 2%. Given this information, what is its service level for this popular item?
A. 4%
B. 96%
C. 2%
D. 98%
D. 98%
Utilization will typically be lower than efficiency because:
A. expected output is less than rated capacity.
B. expected output is less than actual output.
C. effective capacity is greater than design capacity.
D. effective capacity equals design capacity.
E.effective capacity is less than design capacity.
E.effective capacity is less than design capacity.
The proper quantity of safety stock is typically determined by:
A. carrying sufficient safety stock so as to eliminate all stockouts.
B. minimizing total costs.
C. multiplying the EOQ by the desired service level.
D. using a single-period model.
E. setting the level of safety stock so that a given stockout risk is not exceeded.
E. setting the level of safety stock so that a given stockout risk is not exceeded.
Which of the following would NOT generally be a motive for a firm to hold inventories?
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 minimize holding costs
D. to decouple various parts of the production process
E. to hedge against inflation
C. to minimize holding costs
In the basic EOQ model, if the cost of placing an order doubles, and all other values remain constant, the EOQ will:
A. either increase or decrease.
B. increase by about 41%.
C. increase by 100%.
D. increase by 200%.
E. increase, but more data is needed to say by how much.
B. increase by about 41%.
the units in inventory that have been assigned to specific future production but have not yet been used or issued from the stockroom are known as
A. planned order receipts.
B. safety stock.
C. planned order releases.
D. allocated items.
D. allocated items.
Which of the following statements is TRUE about the MRP plan when using lot-for-lot ordering?
A. The quantity of gross requirements for a child item is equal to the quantity of planned order release(s) multiplied by the number of child items used in the parent assembly.
B. The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent.
C. The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent.
D. The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent.
E. All of the above are true.
A. The quantity of gross requirements for a child item is equal to the quantity of planned order release(s) multiplied by the number of child items used in the parent assembly.
By convention, what is the top level in a product structure?
Part 2
A.level 1
B. level 0
C. level T
D. level 100
E. level 10
B. level 0
Which of the following is specifically characterized by a focus on continuous improvement, respect for people, and standard work practices?
A. Toyota Production System (TPS)
B. Material requirements planning (MRP)
C. kanban
D. Lean operations
E. Just-in-time (JIT)
A. Toyota Production System (TPS)
Kanban is associated with all EXCEPT which of the following?
A. increased material handling
B. moving inventory only as needed
C. reductions in inventory
D. signals, such as cards, lights, or flags
E. small lot sizes
A. increased material handling
Which one of the following is a characteristic of a JIT partnership?
A. maximal product specifications imposed on supplier
B. third-party logistics never used
C. frequent deliveries in large lot quantities
D. removal of incoming inspection
E. active pursuit of vertical integration
D. removal of incoming inspection
Which one is NOT an application of lean principle in services?
A. JIT in food supply management
B. scheduling personnel availability at 15 minute increments to meet demand fluctuations
C. securing more inventory to prepare for disruption in production
D. inventory sharing among members of the pharmaceutical network
E. improving kitchen layout at McDonald’s to drive seconds out of the production process
C. securing more inventory to prepare for disruption in production
Which of the following would NOT reduce the bullwhip effect?
A. Increase end-of-quarter sales bonuses
B. Reduce lot sizes
C. Share point-of-sales data with all members of the supply chain
D. Implement single-stage control of replenishment
A. Increase end-of-quarter sales bonuses
What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor?
A. horizontal integration
B. vertical integration
C. outsourcing
D. virtual companies
B. vertical integration
Which of the following could reduce distribution risk?
A. cross-country diversification
B. use multiple suppliers
C. secure IT systems
D. careful selection, monitoring and effective contracts with penalties
D. careful selection, monitoring and effective contracts with penalties
Which of the following statements is NOT true?
A. A supply chain includes suppliers; manufacturers and/or service providers; and distributors, wholesalers, and/or retailers who deliver the product and/or service to the final customer.
B. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.
C. Supply chain management describes the coordination of all supply chain activities, starting with raw materials, and ending with a satisfied customer.
D. The objective of supply chain management is to coordinate activities within the supply chain to maximize the supply chain’s competitive advantage and benefits to the ultimate consumer.
B. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.
Low-volume, high-variety production is best suited for which of the following process strategies?
A. repetitive focus
B. product focus
C. mass customization
D. process focus
D. process focus
Which of the following is FALSE regarding repetitive processes?
A. They have more structure and less flexibility than a job shop layout.
B. They are the classic assembly lines.
C. They include the assembly of basically all automobiles.
D. They use modules.
E. They allow easy switching from one product to the other.
E. They allow easy switching from one product to the other.
Which of the following phrases best describes process focus?
A. low inventory
B. high fixed costs, low variable costs
C. Operators are less broadly skilled.
D. Finished goods are usually made to a forecast and stored.
E. low volume, high variety
E. low volume, high variety
Capacity decisions are based on technological concerns, not demand forecasts.
True or False
False
Utilization will typically be lower than efficiency because:
A. expected output is less than rated capacity.
B. expected output is less than actual output.
C. effective capacity is greater than design capacity.
D. effective capacity equals design capacity.
E. effective capacity is less than design capacity.
E. effective capacity is less than design capacity.
Adding a complementary product to what is currently being produced is a demand management strategy used when:
A. capacity exceeds demand for a product that has stable demand.
B. demand exceeds capacity.
C. the existing product has seasonal or cyclical demand.
D. efficiency exceeds 100 percent.
E. price increases have failed to bring about demand management.
C. the existing product has seasonal or cyclical demand.
The purpose of safety stock is to:
A. eliminate the possibility of a stockout.
B. control the likelihood of a stockout due to variable demand and/or lead time.
C. eliminate the likelihood of a stockout due to erroneous inventory tally.
D. protect the firm from a sudden decrease in demand.
E. replace failed units with good ones.
B. control the likelihood of a stockout due to variable demand and/or lead time.
The fixed period inventory system requires more safety stock than a fixed-quantity system because:
A. this model is used for products that require very high service levels.
B. setup costs and holding costs are large.
C. a stockout can occur during the review period as well as during the lead time.
D. this model is used for products that have large standard deviations of demand.
E. replenishment is not instantaneous.
C. a stockout can occur during the review period as well as during the lead time.
What is required for an MRP system to work?
A. A small bill of material
Your answer is not correct.
B. A high number of purchase orders outstanding
C. Long lead times
D. Accurate inventory records
D. Accurate inventory records
Enterprise resource planning (ERP):
Part 2
A. is inexpensive to implement.
B. automates and integrates the majority of business processes.
C. does not integrate well with functional areas other than operations.
D. nseldom requires software upgrade or enhancement.
E. all of the above
B. automates and integrates the majority of business processes.
By convention, what is the top level in a product structure?
A. level 100
B. level T
C. level 10
D. level 0
E. level 1
D. level 0
Which of the following is specifically characterized by continuous and forced problem solving via a focus on throughput and reduced inventory?
A. Toyota Production System (TPS)
B. kanban
C. Lean operations
D. Just-in-time (JIT)
E. Material requirements planning (MRP)
D. Just-in-time (JIT)
Kanban is associated with all EXCEPT which of the following?
A. small lot sizes
B.
signals, such as cards, lights, or flags
C. increased material handling
D. moving inventory only as needed
E. reductions in inventory
C. increased material handling
Which of the following is not a goal of JIT partnerships?
Part 2
A. removal of in-plant inventory
B. inspect all incoming shipments to ensure zero defects
C. removal of unnecessary activities
D. removal of in-transit inventory
E. All of the above are goals of JIT partnerships.
B. inspect all incoming shipments to ensure zero defects
Which one of the following statements is TRUE about the kanban system?
Part 2
A. The supplier workstation signals the customer workstation as soon as a batch is completed.
B. It is associated with a push system.
C. The quantities in the containers are usually large to reduce setup costs.
D. The customer workstation signals to the supplier workstation when production is needed.
E. It is useful to smooth operations when numerous quality problems occur.
D. The customer workstation signals to the supplier workstation when production is needed.
Which of the following would NOT reduce the bullwhip effect?
A. Implement single-stage control of replenishment
B. Reduce lot sizes
C. Share point-of-sales data with all members of the supply chain
D. Increase end-of-quarter sales bonuses
D. Increase end-of-quarter sales bonuses
Which of the following strategies is part collaboration, part purchasing from few suppliers, and part vertical integration?
A. joint ventures
B. keiretsu networks
C. virtual companies
D. horizontal integration
B. keiretsu networks
Toyota attempts to have at least two suppliers, each in a different geographical region, for each component to mitigate which type of supply chain risk?
A. Political
B. Economic
C. Natural catastrophes
D. Distribution
C. Natural catastrophes
Which of the following statements is NOT true?
A. A supply chain includes suppliers; manufacturers and/or service providers; and distributors, wholesalers, and/or retailers who deliver the product and/or service to the final customer.
B. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.
C. The objective of supply chain management is to coordinate activities within the supply chain to maximize the supply chain’s competitive advantage and benefits to the ultimate consumer.
D. Supply chain management describes the coordination of all supply chain activities, starting with raw materials, and ending with a satisfied customer.
B. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.
A product-focused process is commonly used to produce:
A. high-volume, low-variety products.
B.high-volume, high-variety products.
C. high-volume products of either high- or low-variety.
D. low-variety products at either high- or low-volume.
E. low-volume, high-variety products.
A. high-volume, low-variety products.
The crossover point is that production quantity where:
A. total costs for one process equal total costs for another process.
B. variable costs of one process equal the variable costs of another process.
C. the process no longer loses money.
D. total costs equal total revenues for a process.
E.fixed costs of a process are equal to its variable costs.
A. total costs for one process equal total costs for another process.
Capacity decisions are based on technological concerns, not demand forecasts.
True
False
False
Christopher’s Cranks uses a machine that can produce 100 cranks per hour. The firm operates 12 hours per day, five days per week. Due to regularly scheduled preventive maintenance, the firm expects the machine to be running during approximately 95% of the available time. Based on experience with other products, the firm expects to achieve an efficiency level for the cranks of 75%. What is the expected weekly output of cranks for this company?
A. 8421
B. 5100
C. 4275
D. 4845
E. 5700
C. 4275
An assembly line has 10 stations with times of 1, 2, 3, 4, …, 10, respectively. What is the bottleneck time?
A. 550% of the throughput time
B. 50% of the throughput time
C. 100% of the throughput time
D. 18.18% of the throughput time
E. 1.82% of the throughput time
D. 18.18% of the throughput time
Demand for dishwasher water pumps is 8 per day. The standard deviation of demand is 3 per day, and the order lead time is four days. The service level is 95%. What should the reorder point be?
A. about 18
B. about 32
C. about 24
D. about 38
E. more than 40
All EXCEPT which of the following statements about ABC analysis are true?
A. ABC analysis suggests that all items require the same high degree of control.
B. ABC analysis is an application of the Pareto principle.
C. ABC analysis categorizes on-hand inventory into three groups based on annual dollar volume.
D. In ABC analysis, inventory may be categorized by measures other than dollar volume.
E. ABC analysis suggests that there are the critical few and the trivial many inventory items.
A. ABC analysis suggests that all items require the same high degree of control.
The two most basic inventory questions answered by the typical inventory model are:
A. order quantity and service level.
B. timing of orders and cost of orders.
C. timing of orders and order quantity.
D. order quantity and cost of orders.
E. ordering cost and carrying cost.
B. timing of orders and cost of orders.
Which of the following best represents the relationship between the master production schedule (MPS) and the aggregate plan?
A. The MPS disaggregates the aggregate plan.
B. The MPS precedes the aggregate plan in the planning process.
C. the MPS is the same as the aggregate plan.
D. There is no relationship between the MPS and the aggregate plan.
A. The MPS disaggregates the aggregate plan.
Which of the following lot-sizing techniques results in the lowest holding costs?
A.lot-for-lot
B. POQ
C. EOQ
D. the quantity discount model
E. Wagner-Whitin algorithm
A.lot-for-lot
By convention, what is the top level in a product structure?
A.level 0
B. level 1
C. level 10
D. level 100
E. level T
A.level 0
Which of the following is specifically characterized by continuous and forced problem solving via a focus on throughput and reduced inventory?
A. kanban
B. Material requirements planning (MRP)
C. Lean operations
D. Just-in-time (JIT)
E. Toyota Production System (TPS)
D. Just-in-time (JIT)
Great Lakes Barge and Baggage Company makes, among other things, battery-operated bilge pumps. Which of the following activities is NOT part of JIT? They:
A. produce in long production runs to reduce the impact of setup costs.
B. produce in small lots.
C. communicate their schedules to suppliers.
D. use a pull system to move inventory.
E. continuously work on reducing setup time.
A. produce in long production runs to reduce the impact of setup costs.
Which of the following is not a goal of JIT partnerships?
A. removal of in-transit inventory
B. removal of in-plant inventory
C. inspect all incoming shipments to ensure zero defects
D. removal of unnecessary activities
E. All of the above are goals of JIT partnerships.
C. inspect all incoming shipments to ensure zero defects
Because most services cannot be inventoried, there is little place for JIT to help service organizations achieve competitive advantage.
True or False
False
What is the term of shipping directly from the supplier to the end consumer rather than from the seller, saving both time and reshipping costs?
A. Drop shipping
B. Postponement
C. Vendor-managed inventory
D. Direct shipping
A. Drop shipping
What is the term for a company that relies on a variety of supplier relationships to provide services on demand?
A. Integrated network
B. Virtual company
C. Keiretsu network
D. Kanban company
B. Virtual company
Toyota attempts to have at least two suppliers, each in a different geographical region, for each component to mitigate which type of supply chain risk?
A. Political
B. Natural catastrophes.
C. Distribution
D.Economic
B. Natural catastrophes.
Trucking
A. is the least used transportation mode for manufacturing goods.
B. is one of the least flexible transportation modes.
C. does not play a role in multimodal shipping.
D. is increasingly using computers to manage its operations.
D. is increasingly using computers to manage its operations.
A process focused facility is
A. a production facility organized around products.
B. a rapid, low-cost production facility that caters to constantly changing unique customer desires.
C. a production facility organized around specific activities.
D. based on the classical assembly line.
C. a production facility organized around specific activities.
One of the similarities between product focus and mass-customization is:
A. many departments and many routings.
B. the volume of outputs.
C. the variety of outputs.
D.the use of modules.
E. All of the above are similarities.
B. the volume of outputs.
In mass service and professional service, the operations manager should focus extensively on:
A. cost-cutting initiatives.
B. automation.
C. human resources.
D. sophisticated scheduling.
E. equipment maintenance.
A useful tactic for increasing capacity is to redesign a product in order to facilitate more throughput.
True
or
False
True
Utilization will typically be lower than efficiency because:
A. effective capacity is greater than design capacity.
B. effective capacity is less than design capacity.
C. effective capacity equals design capacity.
D. expected output is less than rated capacity.
E. expected output is less than actual output.
B. effective capacity is less than design capacity.
A work system has five stations that have process times of 5, 9, 14, 9, and 8. What is the bottleneck time?
A. 35
B. 45
C. 14
D. 18
E. 9
C. 14
Demand for dishwasher water pumps is 8 per day. The standard deviation of demand is 3 per day, and the order lead time is four days. The service level is 95%. What should the reorder point be?
A.
about 32
B.
more than 40
C.
about 24
D.
about 18
E.
about 38
B.
more than 40
The main trait of a single-period model is that:
A.
the cost of a shortage cannot be determined accurately.
B.
inventory has limited value after a certain period of time.
C.
the order quantity should usually equal the expected value of demand.
D.
supply is limited.
E.
it has the largest EOQ sizes.
B.
inventory has limited value after a certain period of time.
Which of the following statements regarding the production order quantity model is TRUE?
A.
It relaxes the assumption that all the order quantity is received at one time.
B.
It relaxes the assumption that the demand rate is constant.
C.
It minimizes inventory.
D.
It applies only to items produced in the firm’s own production departments.
E.
It minimizes the total production costs.
A.
It relaxes the assumption that all the order quantity is received at one time.
What is a list of quantities of components, ingredients, and materials required to make a product?
A.
master production schedule
B.
bill-of-material
C.
purchase order
D.
engineering change notice
B.
bill-of-material
Low-level coding means that:
A.
the top level of the BOM is below level zero and that BOMs are not organized around the finished product.
B.
a component item is coded at the lowest level at which it appears in the BOM structure.
C.
the lowest-paid staff member in the production department performs the coding.
D.
a final item has only a few levels in the BOM structure.
E.
the code being used is the code for the lowest level in the BOM structure.
B.
a component item is coded at the lowest level at which it appears in the BOM structure.
Which of the following is specifically characterized by the elimination of waste through a focus on exactly what the customer wants?
A.
Lean operations
B.
Toyota Production System (TPS)
C.
Material requirements planning (MRP)
D.
kanban
E.
Just-in-time (JIT)
A.
Lean operations
Which one of the following statements is TRUE regarding JIT inventory?
A.
It is minimized with large lot production.
B.
It increases if setup costs decrease.
C.
It exists just in case something goes wrong.
D.
It hides variability.
E.
It is the minimum inventory necessary to keep a perfect system running.
E.
It is the minimum inventory necessary to keep a perfect system running.
Which of the following is NOT a goal of JIT partnerships?
A.
removal of in-transit inventory
B.
removal of unnecessary activities
C.
removal of in-plant inventory
D.
obtain improved quality and reliability
E.
All of the above are goals of JIT partnerships.
E.
All of the above are goals of JIT partnerships.
Which of the following is characteristic of lean operations?
A.
no supplier partnerships
B.
inventory buffers between each workstation to minimize system downtime
C.
specialty workers with no cross-training
D.
low space requirements
E.
easy, mindless jobs
D.
low space requirements
What is the term of shipping directly from the supplier to the end consumer rather than from the seller, saving both time and reshipping costs?
A.
Vendor-managed inventory
B.
Direct shipping
C.
Postponement
D.
Drop shipping
D.
Drop shipping
Prior to embarking on supply chain design, operations managers must first consider
A.
how to manage supply chain inventory.
B.
how to select suppliers.
C.
what kind of distribution network to have.
D.
”make-or-buy” and outsourcing decisions.
D.
”make-or-buy” and outsourcing decisions.
Question content area
Part 1
Which of the following could reduce distribution risk?
A.
cross-country diversification
B.
secure IT systems
C.
careful selection, monitoring and effective contracts with penalties
D.
use multiple suppliers
C.
careful selection, monitoring and effective contracts with penalties
Question content area
Part 1
Which of the following could reduce distribution risk?
A.
cross-country diversification
B.
secure IT systems
C.
careful selection, monitoring and effective contracts with penalties
D.
use multiple suppliers
C.
careful selection, monitoring and effective contracts with penalties
Trucking
A.
is the least used transportation mode for manufacturing goods.
B.
does not play a role in multimodal shipping.
C.
is one of the least flexible transportation modes.
D.
is increasingly using computers to manage its operations.
D.
is increasingly using computers to manage its operations.
A large quantity and large variety of products are produced in
A.
product focus.
B.
process focus.
C.
mass customization.
D.
repetitive focus.
C.
mass customization.
Which of the following is FALSE regarding repetitive processes?
A.
They use modules.
B.
They have more structure and less flexibility than a job shop layout.
C.
They are the classic assembly lines.
D.
They include the assembly of basically all automobiles.
E.
They allow easy switching from one product to the other.
E.
They allow easy switching from one product to the other.
Which of the following phrases best describes process focus?
A.
Finished goods are usually made to a forecast and stored.
B.
low volume, high variety
C.
low inventory
D.
high fixed costs, low variable costs
E.
Operators are less broadly skilled.
B.
low volume, high variety
Capacity decisions are based on technological concerns, not demand forecasts.
True
or
False
False
Utilization will typically be lower than efficiency because:
A.
effective capacity is greater than design capacity.
B.
effective capacity equals design capacity.
C.
expected output is less than rated capacity.
D.
expected output is less than actual output.
E.
effective capacity is less than design capacity.
E.
effective capacity is less than design capacity.
An assembly line has 10 stations with times of 1, 2, 3, 4, …, 10, respectively. What is the bottleneck time?
A.
550% of the throughput time
B.
100% of the throughput time
C.
18.18% of the throughput time
D.
1.82% of the throughput time
E.
50% of the throughput time
C.
18.18% of the throughput time
