ISDS Review Questions Test 2

Question 1

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

Answer 1

E. Choices A and C are both correct

Question 2

​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

Answer 2

D.4275

Question 3

A useful tactic for increasing capacity is to redesign a product in order to facilitate more throughput.

True
False

Answer 3

True

Question 4

​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.

Answer 4

A. tend to have​ long, continuous production runs.

Question 5

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

Answer 5

E. restaurants

Question 6

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.

Answer 6

B. a production facility organized around specific activities.

Question 7

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.

Answer 7

D. Use buffer stocks to ensure speedy supply.

Question 8

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

Answer 8

B. alternate sourcing

Question 9

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

Answer 9

B. outsourcing

Question 10

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

Answer 10

C. blanket order

Question 11

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

Answer 11

D. inventory

Question 12

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

Answer 12

E. removal of incoming inspection

Question 13

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

Answer 13

B. close relationships with trust

Question 14

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)

Answer 14

B. Toyota Production System​ (TPS)

Question 15

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.

Answer 15

A. a component item is coded at the lowest level at which it appears in the BOM structure.

Question 16

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

Answer 16

E. lot-for-lot

Question 17

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)

Answer 17

B. Material requirements planning​ (MRP)

Question 18

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.

Answer 18

C. The larger the annual​ demand, the less attractive a discount schedule will be.

Question 19

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.

Answer 19

E. All of the above are elements of inventory holding costs.

Question 20

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%

Answer 20

D. 98%

Question 21

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.

Answer 21

E.effective capacity is less than design capacity.

Question 22

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.

Answer 22

E. setting the level of safety stock so that a given stockout risk is not exceeded.

Question 23

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

Answer 23

C. to minimize holding costs

Question 24

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.

Answer 24

B. increase by about​ 41%.

Question 25

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.

Answer 25

D. allocated items.

Question 26

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.

Answer 26

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.

Question 27

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

Answer 27

B. level 0

Question 28

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)

Answer 28

A. Toyota Production System​ (TPS)

Question 29

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

Answer 29

A. increased material handling

Question 30

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

Answer 30

D. removal of incoming inspection

Question 31

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

Answer 31

C. securing more inventory to prepare for disruption in production

Question 32

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

Answer 32

A. Increase​ end-of-quarter sales bonuses

Question 33

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

Answer 33

B. vertical integration

Question 34

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

Answer 34

D. careful​ selection, monitoring and effective contracts with penalties

Question 35

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.

Answer 35

B. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.

Question 36

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

Answer 36

D. process focus

Question 37

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.

Answer 37

E. They allow easy switching from one product to the other.

Question 38

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

Answer 38

E. low​ volume, high variety

Question 39

Capacity decisions are based on technological​ concerns, not demand forecasts.

True or False

Answer 39

False

Question 40

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.

Answer 40

E. effective capacity is less than design capacity.

Question 41

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.

Answer 41

C. the existing product has seasonal or cyclical demand.

Question 42

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.

Answer 42

B. control the likelihood of a stockout due to variable demand​ and/or lead time.

Question 43

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.

Answer 43

C. a stockout can occur during the review period as well as during the lead time.

Question 44

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

Answer 44

D. Accurate inventory records

Question 45

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

Answer 45

B. automates and integrates the majority of business processes.

Question 46

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

Answer 46

D. level 0

Question 47

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)

Answer 47

D. ​Just-in-time (JIT)

Question 48

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

Answer 48

C. increased material handling

Question 49

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.

Answer 49

B. inspect all incoming shipments to ensure zero defects

Question 50

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.

Answer 50

D. The customer workstation signals to the supplier workstation when production is needed.

Question 51

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

Answer 51

D. Increase​ end-of-quarter sales bonuses

Question 52

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

Answer 52

B. keiretsu networks

Question 53

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

Answer 53

C. Natural catastrophes

Question 54

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.

Answer 54

B. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.

Question 55

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.

Answer 55

A. high-volume, low-variety products.

Question 56

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.

Answer 56

A. total costs for one process equal total costs for another process.

Question 57

Capacity decisions are based on technological​ concerns, not demand forecasts.

True
False

Answer 57

False

Question 58

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

Answer 58

C. 4275

Question 59

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

Answer 59

D. 18.18% of the throughput time

Question 60

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

Question 61

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.

Answer 61

A. ABC analysis suggests that all items require the same high degree of control.

Question 62

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.

Answer 62

B. timing of orders and cost of orders.

Question 63

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.

Answer 63

A. The MPS disaggregates the aggregate plan.

Question 64

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

Answer 64

A.lot-for-lot

Question 65

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

Answer 65

A.level 0

Question 66

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)

Answer 66

D. Just-in-time (JIT)

Question 67

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.

Answer 67

A. produce in long production runs to reduce the impact of setup costs.

Question 68

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.

Answer 68

C. inspect all incoming shipments to ensure zero defects

Question 69

Because most services cannot be​ inventoried, there is little place for JIT to help service organizations achieve competitive advantage.
True or False

Answer 69

False

Question 70

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

Answer 70

A. Drop shipping

Question 71

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

Answer 71

B. Virtual company

Question 72

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

Answer 72

B. Natural catastrophes.

Question 73

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.

Answer 73

D. is increasingly using computers to manage its operations.

Question 74

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.

Answer 74

C. a production facility organized around specific activities.

Question 75

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.

Answer 75

B. the volume of outputs.

Question 76

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.

Question 77

A useful tactic for increasing capacity is to redesign a product in order to facilitate more throughput.

True
or
False

Answer 77

True

Question 78

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.

Answer 78

B. effective capacity is less than design capacity.

Question 79

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

Answer 79

C. 14

Question 80

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

Answer 80

B.
more than 40

Question 81

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.

Answer 81

B.
inventory has limited value after a certain period of time.

Question 82

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.

Answer 82

A.
It relaxes the assumption that all the order quantity is received at one time.

Question 83

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

Answer 83

B.
​bill-of-material

Question 84

​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.

Answer 84

B.
a component item is coded at the lowest level at which it appears in the BOM structure.

Question 85

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)

Answer 85

A.
Lean operations

Question 86

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.

Answer 86

E.
It is the minimum inventory necessary to keep a perfect system running.

Question 87

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.

Answer 87

E.
All of the above are goals of JIT partnerships.

Question 88

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

Answer 88

D.
low space requirements

Question 89

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

Answer 89

D.
Drop shipping

Question 90

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.

Answer 90

D.
​”make-or-buy” and outsourcing decisions.

Question 91

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

Answer 91

C.
careful​ selection, monitoring and effective contracts with penalties

Question 92

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

Answer 92

C.
careful​ selection, monitoring and effective contracts with penalties

Question 93

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.

Answer 93

D.
is increasingly using computers to manage its operations.

Question 94

A large quantity and large variety of products are produced in

A.
product focus.
B.
process focus.
C.
mass customization.
D.
repetitive focus.

Answer 94

C.
mass customization.

Question 95

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.

Answer 95

E.
They allow easy switching from one product to the other.

Question 96

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.

Answer 96

B.
low​ volume, high variety

Question 97

Capacity decisions are based on technological​ concerns, not demand forecasts.

True
or
False

Answer 97

False

Question 98

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.

Answer 98

E.
effective capacity is less than design capacity.

Question 99

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

Answer 99

C.
​18.18% of the throughput time