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Operations Management > Multiple Choice > Flashcards

Multiple Choice Flashcards

1
Q

In​ August, General Motors produced 8200 customized vans at its plant in Oshawa. The labour productivity at this plant is known to have been 0.50 vans per​ labour-hour during that month. Three-hundred labourers were employed at the plant that month.
How many hours did the average labourer work that​ month? (Round to the nearest whole number).

A

55

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2
Q

A strategy is a(n)

A

action plan to achieve the mission

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3
Q

True of false: Functional strategies are shaped by corporate strategy.

A

True

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4
Q

The ability of an organization to produce goods or services that have some uniqueness in their characteristics is

A

competing on differentiation

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5
Q

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

A

A firm’s products are introduced into the market faster than its competitors’ products.

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6
Q

Response-based competitive advantage can be

A

Flexible, realiable, and quick response (all of the above)

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7
Q

An operations manager is not likely to be involved in

A

the identification of customers’ wants and needs

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8
Q

True or false : The number of people employed in manufacturing has increased since 1950

A

False - Each manufacturing employee now produces about 20 times more than in 1950

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9
Q

The Ten Critical Decisions of Operations Management include

A

Layout strategies, maintenance, process and capacity design, managing quality (all of the above)

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10
Q

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

A

mass customization

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11
Q

True or False : All organizations, including service firms such as banks and hospitals, have a production function.

A

True

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12
Q

A foundry produces circular utility access hatches (manhole covers). Currently, 120 covers are produced in a 10-hour shift. If labor productivity can be increased by 25%, it would then be

A

15 covers/hr

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13
Q

Suppose that a 9-person team (each working 10 hours per day) produces a total of 500 engines each day. If production is increased to 705 engines each day, how many labour hours can be added without losing any productivity (round it to the nearest whole number)?

A

37

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14
Q

Suppose that a 7-person team (each working 9 hours per day) produces a total of 536 engines each day. What is their productivity in engines per labour-hour

A

9

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15
Q

A firm cleans chemical tank cars in the Edmonton area. With standard equipment, the firm typically cleaned 70 chemical tank cars per month. They utilized 10 gallons of solvent, and two employees worked 20 days per month, 8 hours a day. The company decided to switch to a larger cleaning machine. Last August, they cleaned 60 tank cars in only 15 days. They utilized 12 gallons of solvent, and the two employees worked 6 hours a day.
What is the percentage (%) change in labour productivity? (Round it to the nearest whole number).

A

52

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16
Q

Suppose your start-up business won a contract to develop a mobile application that must be tested and running by the start of the next December (2022). If you must complete the project by the beginning of November (2022), you might need to______ to do the same work in less time.

A

increase the budget of the project

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17
Q

True or false: In PERT analysis, the identification of the critical path can be incorrect if a noncritical activity takes substantially more than its expected time.

A

True

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18
Q

True or false: The critical path can be determined by use of either the “forward pass” or the “backward pass.”

A

False

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19
Q

The following represents a project with four activities. All times are in weeks.

What is the minimum expected completion time for the project (please round off to two decimal digits)?

A

19.33

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20
Q

Learning curves have a variety of purposes, which can be placed into these broad categories:

A

internal, external, and strategic

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21
Q

If it took 1000 hours to produce the first unit of a product, and the learning curve is 70%, how long will it take to produce units 26 through 50?

A

3,903 hours

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22
Q

Ethical issues that may arise in projects large and small include

A

Gifts from customers, exaggerated expense reports, comprised safety or health, pressure to mask delays ( all of the above)

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23
Q

True or false: Gantt charts are visual devices that show the duration of activities in a project.

A

True

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24
Q

A project manager is interested in crashing a project with variable activity times. Which of the following tools should he/she employ?

A

PERT

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25
Q

A project whose critical path has an estimated time of 180 days with a variance of 100 has a 25% chance that the project will be completed before day (please round off to two decimal digits)

A

173.30

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26
Q

The following represents a project with known activity times. All times are in weeks. What is the minimum possible time required for completing the projec

A

17

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27
Q

You have been assigned to manage a outsourcing project. This company-ewide initiative will be rolled out to 15 locations within 10 months in three geographical regions: Halifax, Toronto, and Edmonton. Because of the short time frame, you must look for ways to reduce your timelines for the various activities. By utilizing scheduling technique, you determine several opportunities for overlapping phases in order to speed up the process. This is an example of

A

Fast tracking

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28
Q

A local project being analyzed by PERT has 11 activities, 6 of which are on the critical path. If the estimated time along the critical path is 105 days with a project variance of 25, what is the probability that the project will be completed in 110 days or less? (please answer to four decimal digits)

A

0.8413

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29
Q

An activity on a PERT network has the following time estimates: optimistic = 6, most likely = 14, and pessimistic = 27. Its
standard deviation is (please round off to two decimal digits)

A

3.5

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30
Q

A marketing firm is planning to conduct a survey of a segment of the potential product audience for one of its customers. The planning process for preparing to conduct the survey consists of six activities with the following activity time estimates and precedence relationships.

A

The critical path cannot be determined without knowing activity times.

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31
Q

A firm has a contract to make 10 specialty lenses for night vision equipment. The first one took 60 hours. Learning is expected at the 80% rate. How long will it take to finish all 10 units? (round it to the nearest whole number)

A

379

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32
Q

It took 200 hours to make the first unit of a product. After the second and third units were made, the learning curve was estimated to be 75%. At $70 per hour, what is the total labour bill for all four units? (round it to the nearest whole number)

A

41244

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33
Q

The first unit took 100 hours and the fourth unit took 65 hours to complete. What is the learning curve (%)?

A

81

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34
Q

A local project being analyzed by PERT has 15 activities, 8 of which are on the critical path. If the estimated time along the critical path is 105 days with a project variance of 25, what is the probability that the project will be completed in 100 days or less? (please answer to four decimal places)

A

0.1587

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35
Q

What is the minimum expected completion time for the project (please round off to two decimal digits)?

A

19.17

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36
Q

What is the minimum possible time required for completing the project

A

20

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37
Q

A firm has a contract to make 10 specialty lenses for night vision equipment. The first one took 10 hours. Learning is expected at the 90% rate. How long will it take to finish the 10th unit? (round it to the nearest whole number)

A

7

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38
Q

If an activity whose normal duration is 50 days can be shortened to 10 days for an added cost of $2570, what is the crash cost per period? (please round off to two decimal digits)

A

64.25

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39
Q

An activity on a PERT network has the following time estimates: optimistic = 6, most likely = 12, and pessimistic = 24. Its
expected time is (please round off to two decimal digits)

A

13

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40
Q

True or False: The use of CPM for a maintenance shut-down at the DU Pont works in Louisville, Kentucky (in 1958), reduced unproductive time by approximately 50% (from 125 hours to 93 hours).

A

True

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41
Q

An activity on a PERT network has the following time estimates: optimistic = 8, most likely = 15, and pessimistic = 30. Its
variance is (please round off to two decimal digits)

A

13.44

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42
Q

If 16 million passengers pass through the Toronto Pearson International Airport with checked baggage each year, a successful Six Sigma program for baggage handling would result in how many passengers with misplaced luggage (round off to two decimal digits)

A

54.4

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43
Q

For the last ten years for the Univeral Company has produced an average of 100 units per hour, 20 percent of which are defective, yielding 80 good units per hour. The board of directors now demands that top management increases productivity by 10 percent. The directives goes out to the employees, who are told that instead of producing 100 units per hour, they must produce 110 units per hour. Responsibility for producing more units falls on the employees, creating stress, frustration, and fear. They try to meet the new demands, but must cut corners to do so. Pressure to raise productivity creates a defect rate of 25 percent and only increases production to 104 units, yielding 78 good units per hour, two fewer than the original 80 good units per hour. Calculate the percentage (%) change in productivity. (Round off to two decimal places).

A

-2.50

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44
Q

To become ISO 9000 certified, organizations must

A

document quality procedures, have an onsite assessment, have an ongoing series of audits of their products or service (ALL OF THESE)

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45
Q

The philosophy of zero defects is

A

consistent with the commitment to continuous improvement

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46
Q

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

A

All of these are valid

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47
Q

Of the several determinants of service quality, access is the one that relates to keeping customers informed in language they can understand

A

FALSE

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48
Q

Security is the determinant of service quality that means freedom from danger, risk, or doubt.

A

True

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49
Q

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

A

TRUE

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50
Q

If the Cpk index exceeds 1

A

must be less than one-third of the absolute value of the difference between each specification and the process mean

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51
Q

To set x-bar chart upper and lower control limits, one must know the process central line, which is the

A

average of the sample means

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52
Q

Plots of sample ranges indicate that the most recent value is below the lower control limit. What course of action would you recommend?

A

Variation is not in control; investigate what created this condition.

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53
Q

A process that is in statistical control will always yield products that meet their design specifications.

A

FALSE

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54
Q

The x-bar chart, like the c-chart, is based on the exponential distribution.

A

false

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55
Q

The Cpk index measures the difference between desired and actual dimensions of goods or services produced.

A

TRUE

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56
Q

The average proportion of defective for a product has historically been about 0.01. What is the upper control chart limit if you wish to use a sample size of 100 and 3 sigma limits? (Round to two decimal places)

A

0.04

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57
Q

The average proportion of defective for a product has historically been about 0.02. What is the lower control chart limit if you wish to use a sample size of 100 and 3 sigma limits? (Round to two decimal places)

A

0

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58
Q

The population mean and standard deviation for a process for which we have a substantial history are 120 and 18.18, respectively. For the variable control chart, a sample size of 16 will be used. What is the standard deviation of the sampling distribution? (Round to two decimal places)

A

4.55

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59
Q

The population mean and standard deviation for a process for which we have a substantial history are 120 and 5.77, respectively. For the variable control chart, a sample size of 16 will be used. What is the three-sigma upper control limit for the process? (Round to two decimal places)

A

124.33

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60
Q

The population mean and standard deviation for a process for which we have a substantial history are 120 and 15.23, respectively. For the variable control chart, a sample size of 16 will be used. What is the three-sigma lower control limit for the process? (Round to two decimal places)

A

108.58

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61
Q

Uber receives multiple complaints per day about driver behavior. Over 10 days the manager recorded the number of calls to be 4, 3, 0, 8, 9, 6, 7, 4, 9, 8. What is the three-sigma lower control limit for c-bar? (Round to two decimal places)

A

0.00

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62
Q

Uber receives multiple complaints per day about driver behavior. Over 10 days the manager recorded the number of calls to be 4, 3, 0, 8, 9, 6, 7, 4, 9, 8. What is the two-sigma upper control limit for c-bar? (Round to two decimal places)

A

10.62

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63
Q

onsider a firm that decided to use a c-chart to help keep track of the number of telephone requests received daily for information on a given product. Over 30-day period, an average of 60 requests per day are received. What is the value of the centerline?

A

60

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64
Q

Consider a firm that decided to use a c-chart to help keep track of the number of telephone requests received daily for information on a given product. Over a 30-day period, an average of 11 requests per day are received. What is a three-sigma upper control limit for c-chart?

A

20.95

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65
Q

Consider the output of a paper mill: the product appears at the end of a web and is rolled onto a spool called a reel. Every reel is examined for the number of blemishes, which are imperfections. What would be a three-sigma upper control limit for c-chart? (Round off to two decimal places).

A

13.21

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66
Q

Consider the output of a paper mill: the product appears at the end of a web and is rolled onto a spool called a reel. Every reel is examined for the number of blemishes, which are imperfections. What would be a a three-sigma lower control limit for c-chart?

A

0

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67
Q

A system has three components in series with reliabilities 0.829, 0.519, and 0.969. System reliability is (round to three decimal place).

A

0.417

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68
Q

A system has three components in parallel with reliabilities 0.652, 0.822, and 0.943. System reliability is (round to three decimal place).

A

0.996

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69
Q

If 39 million passengers pass through the Toronto Pearson International Airport with checked baggage each year, a successful Six Sigma program for baggage handling would result in how many passengers with misplaced luggage? (Please round off to two decimal digits)

A

132.6

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70
Q

Which of the following is true about ISO 14000 certification?

A

All of these are true

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71
Q

Which of the following statements best describes the relationship between quality management and product strategy?

A

Managing quality helps build successful product strategies.

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72
Q

The “four Ms” of cause-and-effect diagrams are

A

material, machinery/equipment, manpower, and methods

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73
Q

TRUE OR FALSE: An improvement in quality must necessarily increase costs.

A

False

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74
Q

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

A

True

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75
Q

TRUE OR FALSE: TQM is important because quality influences all of the ten decisions made by operations managers.

A

True

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76
Q

Average outgoing quality (AOQ) usually

A

improves with inspection

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77
Q

Red Top Cab Company receives multiple complaints per day about driver behavior. Over 9 days the owner recorded the number of calls to be 3, 0, 8, 9, 6, 7, 4, 9, 8. What is the upper control limit for the c-chart?

A

13.35

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78
Q

A Cpk index of 1.00 equates to a defect rate of

A

2.7 per 1,000 items

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79
Q

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

A

True

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80
Q

TRUE OR FALSE: In statistical process control, the range often substitutes for the standard deviation.

A

True

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81
Q

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

A

False

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82
Q

The average proportion of defective for a product has historically been about 0.06. What is the upper

A

0.13

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83
Q

The average proportion of defective for a product has historically been about 0.08. What is the lower control chart limit if you wish to use a sample size of 100 and 3 sigma limits? (Round to two decimal places)

A

0

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84
Q

The population mean and standard deviation for a process for which we have a substantial history are 120 and 17.67, respectively. For the variable control chart, a sample size of 16 will be used. What is the standard deviation of the sampling distribution? (Round to two decimal places)

A

4.42

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85
Q

The population mean and standard deviation for a process for which we have a substantial history are 120 and 19.17, respectively. For the variable control chart, a sample size of 16 will be used. What is the three-sigma upper control limit for the process? (Round to two decimal places)

A

134.38

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86
Q

The population mean and standard deviation for a process for which we have a substantial history are 120 and 19.77, respectively. For the variable control chart, a sample size of 16 will be used. What is the three-sigma lower control limit for the process? (Round to two decimal places)

A

105.17

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87
Q

Uber receives multiple complaints per day about driver behavior. Over 10 days the manager recorded the number of calls to be 10, 3, 0, 8, 9, 6, 7, 4, 9, 8. What is the three-sigma lower control limit for c-bar? (Round to two decimal places)

A

0.00

88
Q

Uber receives multiple complaints per day about driver behavior. Over 10 days the manager recorded the number of calls to be 5, 3, 0, 8, 9, 6, 7, 4, 9, 8. What is the two-sigma upper control limit for c-bar? (Round to two decimal places)

A

10.76

89
Q

Consider a firm that decided to use a c-chart to help keep track of the number of telephone requests received daily for information on a given product. Over 30-day period, an average of 10 requests per day are received. What is the value of the centerline?

A

10

90
Q

Consider a firm that decided to use a c-chart to help keep track of the number of telephone requests received daily for information on a given product. Over a 30-day period, an average of 19 requests per day are received. What is a three-sigma upper control limit for c-chart?

A

32.08

91
Q

Consider a firm that decided to use a c-chart to help keep track of the number of telephone requests received daily for information on a given product. Over 30-day period, an average of 10 requests per day are received. What is the value of the centerline?

A

10

92
Q

Consider the output of a paper mill: the product appears at the end of a web and is rolled onto a spool called a reel. Every reel is examined for the number of blemishes, which are imperfections. What would be a three-sigma upper control limit for c-chart? (Round off to two decimal places).

A

14.94

93
Q

Consider the output of a paper mill: the product appears at the end of a web and is rolled onto a spool called a reel. Every reel is examined for the number of blemishes, which are imperfections What would be a a three-sigma lower control limit for c-chart? (Round off to two decimal places).

A

0.00

94
Q

A system has three components in series with reliabilities 0.737, 0.608, and 0.671. System reliability is (round to three decimal place)

A

0.301

95
Q

A system has three components in parallel with reliabilities 0.534, 0.947, and 0.806. System reliability is (round to three decimal place).

A

0.995

96
Q

The cook in a fast-food restaurant knows that 2 hamburger patties and an order of fries should be started for each car that is waiting in line. This is best an example of

A

Kanban

97
Q

If a casual-dining restaurant is attempting to practice JIT and lean operations, which of the following would not be present?

A

food preparation in large batches

98
Q

The number of kanbans should be equal to

A

the ratio of (demand during lead time + safety stock) to container size

99
Q

Reduction of in-transit inventory can be encouraged through use of

A

supplier location near plants

100
Q

Which of the following statements regarding a pull system is true?

A

Problems become more obvious.

101
Q

The potential restaurant customer who says to her husband, “The line looks too long; let’s eat somewhere else,” is an illustration of which element of queue discipline?

A

Balk

102
Q

A queuing model which follows the M/M/1 assumptions has = 2 and = 3. The average number in the system is

A

2

103
Q

In queuing problems, which of the following probability distributions is typically used to describe the number of arrivals per unit of time

A

Poisson

104
Q

A waiting-line system that meets the assumptions of M/M/S has = 5, = 4, and M = 2. For these values, Po is approximately 0.23077 and Ls is approximately 2.05128. The average time a unit spends in this system

A

is approximately 0.4103

105
Q

A waiting line model meeting the assumptions of M/M/1 has an arrival rate of 2 per hour and a service rate of 6 per hour; the utilization factor for the system is approximately

A

0.33

106
Q

Which of the following is specifically characterized by continuous and forced problem solving through a focus on throughput and reduced inventory?

A

Just-in-time (JIT)

107
Q

Kanban is associated with all of the following except

A

Increased material handling

108
Q

What is the time required to move orders through the production process, from receipt to delivery

A

Throughput

109
Q

A grocery store is attempting to implement a kanban system. Which of the following would not be an application of kanbans?

A

The meat department stocking up on lambs before Easter.

110
Q

Which of the following is generally found in most JIT environments?

A

Pull Systems

111
Q

The shopper who says to himself, “I’ve waited too long in this line. I don’t really need to buy this product today,” and leaves the store is an illustration of which element of arrival behavior?

A

renege

112
Q

A queuing model which follows the M/M/1 assumptions has = 3 and = 2. The average number in the system is

A

growing without limit, since is larger than

113
Q

The common measures of a queuing system’s performance include

A

average time each customer spends in the system, probability that the service system will be idle, average time each customer spends in the queue

114
Q

Students arrive randomly at the help desk of the computer lab. There is only one service agent, and the time required for inquiry varies from student to student. Arrival rates have been found to follow the Poisson distribution, and the service times follow the negative exponential distribution. The average arrival rate is 12 students per hour, and the average service rate is 20 students per hour. What is the average service time for this problem?

A

3 minutes

115
Q

A waiting-line system that meets the assumptions of M/M/1 has = 1, = 4. For this system, Po is __________ and utilization is __________.

A

0.75; 0.25

116
Q

The main goal of retail layout is

A

maximizing profitability per square foot of floor space

117
Q

Retail layouts thrive on the notion that

A

maximizing customer exposure rate maximizes sales and profit

118
Q

In assembly line balancing, the theoretical minimum number of workstations is

A

Aall of these

119
Q

A production line is to be designed for a product whose completion requires 21 minutes of work. The factory works 400 minutes per day. Can an assembly line with five workstations make 100 units per day?

A

no, it will fall short even with a perfectly balanced line

120
Q

Balancing low-cost storage with low-cost material handling is important in a(n)

A

warehouse layout

121
Q

TOC strives to reduce the effect of constraints by

A

offloading work from constrained workstations and increasing constrained workstation capability

122
Q

Consider a production line with five stations. Station 1 can produce a unit in 9 minutes. Station 2 can produce a unit in 10 minutes. Station three has two identical machines, each of which can process a unit in 12 minutes (each unit only needs to be processed on one of the two machines). Station 4 can produce a unit in 5 minutes. Station 5 can produce a unit in 8 minutes. Which station is the bottleneck station

A

Station 2

123
Q

An assembly line is an example of a

A

repetitive process

124
Q

Utilization will always be lower than efficiency because

A

Effective capacity is less than design capacity.

125
Q

Product Focused processes

A

are processes that are specialized for relatively few products or customer groups

126
Q

The graphic approach to location break-even analysis displays the range of volume over which each location is preferable.

A

Trueq

127
Q

When making a location decision at the country level, which of these would be considered?

A

location of markets

128
Q

A firm is considering two location alternatives. At location West, fixed costs would be $8,000,000 per year, and variable costs $30 per unit. At alternative East, fixed costs would be $7,200,000 per year, with variable costs of $35 per unit. If annual demand is expected to be 10 million units, which location offers the lowest total cost

A

Location West, because it is cheaper than Location East for all volumes over 160,000 units.

129
Q

Which of the following statements regarding the center-of-gravity method is false

A

It is designed to minimize the maximum possible travel distance to any location.

130
Q

Starbucks Coffee’s use of geocoded demographic and consumer data in site selection decisions is an example of the use of a Geographic Information System, or GIS.

A

True

131
Q

Location A would result in annual fixed costs of $300,000 and variable costs of $55 per unit. Annual fixed costs at Location B are $600,000 with variable costs of $49 per unit. Sales volume is estimated to be 20000 units per year. At what volume are the two facilities equal in cost?

A

50000

132
Q

A regional bookstore chain is about to build a distribution center that is centrally located for its eight retail outlets. It will most likely employ which of the following tools of analysis?

A

center-of-gravity model

133
Q

A employee produces 2 parts during a shift in which he made $180. The labor content of the product is

A

$90

134
Q

A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites.

A

38; 32

135
Q

The reason fast food restaurants often are found in close proximity to each other is

A

location clustering near high traffic flows

136
Q

A hospital’s layout most closely resembles which of the following?

A

job shop

137
Q

A production line is to be designed for a job with four tasks. The task times are 2.4 minutes, 1.4 minutes, 0.9 minutes, and 1.7 minutes. After line balancing, the largest possible assigned cycle time is ________ and the smallest possible assigned cycle time is ________ minutes.

A

6.4; 2.4

138
Q

Which layout’s main objective is to equalize the task time for each station

A

product oriented

139
Q

An assembly line consists of 20 tasks grouped into 5 workstations. The sum of the 20 task times is 56 minutes. The largest assigned cycle time is 20 minutes. The efficiency of this line is (in %) (Round it to the nearest whole number)

A

56

140
Q

Four hundred and eighty minutes of production time are available per day. The schedule calls for the production of 60 units per day. Each unit of the product requires 25 minutes of work. What is the theoretical minimum number of workstations?

A

4

141
Q

A product sells for $5, and has unit variable costs of $3. This product accounts for $20,000 in annual sales, out of the firm’s total of $60,000. When performing multiproduct break-even analysis, the weighted contribution of this product is approximately

A

0.133

142
Q

Which of the following is not one of the four principles of bottleneck management

A

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

143
Q

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

A

the existing product has seasonal or cyclical demand

144
Q

A work system has five stations that have process times of 5, 9, 4, 9, and 8. What is the process time of the system?

A

9

145
Q

A high value for which of the following signals that an operations manager is excelling

A

efficiency

146
Q

Given forecast errors of -1, 4, 8, and -3.0, what is the mean absolute deviation? (round to two decimal place)

A

4

147
Q

Suppose that the actual demand in period 1 was 10 units and the actual demand in period 2 was 9 units. Assume that the forecast for period 1 was for 8 units. If the firm uses exponential smoothing with an alpha value of 0.4, what should be the forecast for period 3? (Round answer to two decimal places.)

A

8.88

148
Q

What is the approximate forecast for May using a four-month moving average? (Round off to the nearest whole number) 39,36,39,42,48,53

A

46

149
Q

What is the approximate forecast for May using a two-month weighted moving average? Use 4 and 2 for the weights of the most recent and the earlier months, respectively. (Round off to the nearest whole number)

A

45

150
Q

Given an actual demand of 105, a previous demand forecast value of 112, and an alpha of 0.0, the exponential smoothing forecast for the next period would be (Round it to the nearest whole number

A

112

151
Q

You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 52 weeks a year and has the following characteristics for its primary item:

   Demand = 25,000 units/year

   Ordering cost = $29/order

   Holding cost = $5/unit/year

   Lead time = 2 weeks

Standard deviation in weekly demand = 100 units

What is the economic order quantity (EOQ) for this item?

(Please round your calculations to the nearest whole number.)

Your Answer:

A

539

152
Q

You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 52 weeks a year and has the following characteristics for its primary item:

   Demand = 25,000 units/year

   Ordering cost = $29/order

   Holding cost = $1/unit/year

   Lead time = 4 weeks

 Standard deviation in weekly demand = 75 units

What safety stock level provides a 95 percent cycle-service level (z=1.65)?

(Please round your calculations to the nearest whole number.)

Your Answer:

A

248

153
Q

You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and has the following characteristics for its primary item:

   Demand = 25,000 units/year

   Ordering cost = $34/order

   Holding cost = $3/unit/year

   Lead time = 4 days

 Standard deviation in daily demand = 3 units

Service level = 95% (z=1.65)

What is the reorder point?

(Please round your calculations to the nearest whole number.)

A

407

154
Q

You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and has the following characteristics for its primary item:

   Demand = 25,000 units/year

   Ordering cost = $14/order

   Holding cost = $5/unit/year

   Lead time = 4 days

 Standard deviation in daily demand = 4 units

What is the optimal (expected) number of orders (N) per year (to the nearest whole number)?

A

67

155
Q

You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and has the following characteristics for its primary item:

   Demand = 25,000 units/year

   Ordering cost = $12/order

   Holding cost = $5/unit/year

   Lead time = 4 days

 Standard deviation in daily demand = 7 units

What is the expected time between orders (T) per year (to the nearest whole number)?

A

3

156
Q

You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and has the following characteristics for its primary item:

   Demand = 25,000 units/year

   Ordering cost = $34/order

   Holding cost = $1/unit/year

   Lead time = 4 days

 Standard deviation in daily demand = 1 units

What is the total setup cost per year (to the nearest whole number)?

A

652

157
Q

You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and has the following characteristics for its primary item:

   Demand = 25,000 units/year

   Ordering cost = $35/order

   Holding cost = $3/unit/year

   Lead time = 4 days

 Standard deviation in daily demand = 4 units

What is the total holding cost per year, including annual holding cost for safety stock (to the nearest whole number)? (Service level=95%)

A

1185

158
Q

A local food processing firm uses (demand) 24,000 glass jars to produce gourmet jams and jellies per year. It costs the firm $60 each time it places an order for jars with the manufacturers. The inventory holding cost is $0.8 per jar per year. The stock is received 4 working days after an order has been placed. No backorders are allowed. Because of space limitations, suppose the firm orders 500 jars at a time. What would be the annual cost saved by shifting from the 500-jars order policy to the EOQ? (Please round your calculations to the nearest whole number.)

A

1562

159
Q

Corin sells Sunday papers outside a retirement home on Sunday mornings. Corin collects $2.91 per paper and pays $1.14 for a paper. The retirement home residents think fondly of Corin and aren’t too upset when papers run out. On the other hand, any papers Corin is left with are thrown into the recycling bin. Corin is trying to figure out a systematic ordering policy. When Corin runs out of papers, the sale is lost. Calculate the service level. (two decimal places, 0.00)

A

0.61

160
Q

Corin sells Sunday papers outside a retirement home on Sunday mornings. Corin collects $2.60 per paper and pays $1.17 for a paper. The retirement home residents think fondly of Corin and aren’t too upset when papers run out. On the other hand, any papers Corin is left with are thrown into the recycling bin. Corin is trying to figure out a systematic ordering policy. When Corin runs out of papers, the sale is lost.

Demand is uniformly distributed between 10 and 36 newspapers per day. Calculate the optimal stocking. (round off to the nearest whole number)

A

24

161
Q

Given forecast errors of -1, 4, 8, and 5.0, what is the mean absolute deviation? (round to two decimal place)

A

4.50

162
Q

Suppose that the actual demand in period 1 was 10 units and the actual demand in period 2 was 9 units. Assume that the forecast for period 1 was for 8 units. If the firm uses exponential smoothing with an alpha value of 0.0, what should be the forecast for period 3? (Round answer to two decimal places.)

A

8

163
Q

What is the approximate forecast for May using a four-month moving average? (Round off to the nearest whole number)
Nov. Dec. Jan. Feb. Mar. April
39 36 33 42 48 53

A

44

164
Q

What is the approximate forecast for May using a two-month weighted moving average? Use 4 and 2 for the weights of the most recent and the earlier months, respectively. (Round off to the nearest whole number

A

52

165
Q

Given an actual demand of 105, a previous demand forecast value of 111, and an alpha of 0.5, the exponential smoothing forecast for the next period would be (Round it to the nearest whole number)

A

108

166
Q

ou are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 52 weeks a year and has the following characteristics for its primary item:

   Demand = 25,000 units/year

   Ordering cost = $37/order

   Holding cost = $3/unit/year

   Lead time = 2 weeks

Standard deviation in weekly demand = 100 units

What is the economic order quantity (EOQ) for this item?

A

785

167
Q

You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 52 weeks a year and has the following characteristics for its primary item:

   Demand = 25,000 units/year

   Ordering cost = $11/order

   Holding cost = $5/unit/year

   Lead time = 4 weeks

 Standard deviation in weekly demand = 120 units

What safety stock level provides a 95 percent cycle-service level (z=1.65)?

A

396

168
Q

ou are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and has the following characteristics for its primary item:

   Demand = 25,000 units/year

   Ordering cost = $30/order

   Holding cost = $3/unit/year

   Lead time = 4 days

 Standard deviation in daily demand = 9 units

Service level = 95% (z=1.65)

What is the reorder point?

A

427

169
Q

You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and has the following characteristics for its primary item:

   Demand = 25,000 units/year

   Ordering cost = $34/order

   Holding cost = $1/unit/year

   Lead time = 4 days

 Standard deviation in daily demand = 2 units

What is the optimal (expected) number of orders (N) per year (to the nearest whole number)?

A

19

170
Q

ou are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and has the following characteristics for its primary item:

   Demand = 25,000 units/year

   Ordering cost = $11/order

   Holding cost = $4/unit/year

   Lead time = 4 days

 Standard deviation in daily demand = 9 units

What is the expected time between orders (T) per year (to the nearest whole numbe

A

4

171
Q

You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and has the following characteristics for its primary item:

   Demand = 25,000 units/year

   Ordering cost = $39/order

   Holding cost = $3/unit/year

   Lead time = 4 days

 Standard deviation in daily demand = 4 units
A

1209

172
Q

You are the operations manager of a firm that uses the continuous review inventory control system. Suppose the firm operates 252 days a year and has the following characteristics for its primary item:

   Demand = 25,000 units/year

   Ordering cost = $32/order

   Holding cost = $4/unit/year

   Lead time = 4 days

 Standard deviation in daily demand = 2 units

What is the total holding cost per year, including annual holding cost for safety stock (to the nearest whole number)? (Service level=95%)

A

1291

173
Q

A local food processing firm uses (demand) 24,000 glass jars to produce gourmet jams and jellies per year. It costs the firm $60 each time it places an order for jars with the manufacturers. The inventory holding cost is $0.8 per jar per year. The stock is received 4 working days after an order has been placed. No backorders are allowed. Because of space limitations, suppose the firm orders 6200 jars at a time. What would be the annual cost saved by shifting from the 6200-jars order policy to the EOQ? (Please round your calculations to the nearest whole number.)

A

1194

174
Q

Corin sells Sunday papers outside a retirement home on Sunday mornings. Corin collects $1.89 per paper and pays $1.01 for a paper. The retirement home residents think fondly of Corin and aren’t too upset when papers run out. On the other hand, any papers Corin is left with are thrown into the recycling bin. Corin is trying to figure out a systematic ordering policy. When Corin runs out of papers, the sale is lost. Calculate the service level. (two decimal places, 0.00)

A

0.47

175
Q

orin sells Sunday papers outside a retirement home on Sunday mornings. Corin collects $1.99 per paper and pays $0.39 for a paper. The retirement home residents think fondly of Corin and aren’t too upset when papers run out. On the other hand, any papers Corin is left with are thrown into the recycling bin. Corin is trying to figure out a systematic ordering policy. When Corin runs out of papers, the sale is lost.

Demand is uniformly distributed between 21 and 50 newspapers per day. Calculate the optimal stocking.

A

44

176
Q

as the number of components in a system connected in a series increases all other things being equal, the reliability of the system usually

A

decreases

177
Q

productivity decreases when

A

inputs increase while outputs remain the same

178
Q

which of the following statements comparing learning rates (L) to progress rates is true

A

a 75% learning rate corresponds to a 25% rate of progress

179
Q

which of the following statements regarding critical path is true

A

Ona specific project, there can be multiple critical paths, all with exactly the same duration

180
Q

Toronto Pearson International Airport (YYZ) keeps track of the number of late arrivals (more than 30 minutes part the scheduled arrival time) per day. The Airport operation manager plans on using a control chart to the plot the results. Which type of control charts would you recommend

A

c -charts

181
Q

a cpk index of 2.00 equates to a defect rate of

A

3.4 defects per a million

182
Q

which of the following attributes is most typical of a service

A

production and consumption occur simultaneosuly

183
Q

which of the following staements regarding PERT analysis is true

A

only critical activities contribute to theproject variance

184
Q

All of the following decision fall within the scope of operations management except for

A

creating the company income statement

185
Q

The process for a wall thickness control chart below is “outof control” because

A

point b is above the upper limit control limit and is a candidate for corrective action

186
Q

According to a recent QSR magazine report Mcdonalds experienced its slowest average speed of service in the past 15 years, at 189.49 seconds. The operation manager plans on tracking the speed of service at the drive-trhu and using a control chart to plot the results. Which type of control chart would you recommend

A

x and r charts

187
Q

reducing the overall critical time is based on whcih of the following steps

A

crashing activties on the critical path based on the lowest cost per period

188
Q

Reasons to study operations management include learning about

A

all of these

189
Q

Which of the following activity within a University is not related to operations

A

payroll and payment services

190
Q

Which of the following statements regarding PERT analysis is true

A

only critical activities contribute to the project variance

191
Q

Components A, B, C, are connected in series. Components D is connected in parallel to component B, Which of the following statements is true

A

the system works when A works, C work, and either B or do work

192
Q

Which of the following would result in a decrease in productivity

A

Increase inputs while outputs remain the same

193
Q

Which of the following statements about ABC is false

A

ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings

194
Q

The two most basic inventory questions answered by the typical inventory model are

A

timing and quanityt of orders

195
Q

Services often

A

are unique

196
Q

Which of the following best conveys the essence of learning curves

A

as the number of repetition increases, time per unit decreases

197
Q

for the system shown below, what is the realiability of the product design

A

0.855

198
Q

what effect would a change in demand, other things being constant, have on the economic order quantity

A

there is not enough information to know

199
Q

You have to bring your smartphone into the store to fix a problem with the reception covered under the waranty. This is an example of which type of quality associated cost

A

External failure cost

200
Q

A company belives a process monitored by an x-bar chart to be in control. When the most recent control point exceeded the upper control limit value by 20% the company should

A

suspect that an assignable cause of variation now exists and can be found

201
Q

the ability of an organization to produce goods or services that have some uniqueness in their characteristics is

A

competing on differentiation

202
Q

if 2 million passengers pass through the Toronto Pearson International Airport with checked baggage each month, a successful Six Sigma program for baggage handling would result in how many passengers with misplaced luggage

A

6.8

203
Q

productivity can be improved by

A

decreasing inputs while holding outputs steady

204
Q

An exponential smoothing forecast with a smoothing constant of one (better = 1 ) is equivalent to

A

a naive forecast

205
Q

a project whose critical path has an estimate time of 112 days with a variance of 100 has a 50% chance that the project will be completed before day

A

112

206
Q

The two most basic inventory questions answered by the typical inventory model are

A

timing and quantity of orders

207
Q

The ten critical decisions of operations management does not include

A

marketing and finance

208
Q

an inventory decision rule states “when ivnentory level goes down to the 140 books, 500 book will be ordered” which of the following statements is true

A

1540 is the reorder point, and 500 is the order quantity

209
Q

the manufacturing of compact disks requires four steps in a series. The realiabilities of the steps are 80%, 95%, 85%, and 90%. What is the realiability of the process to product a good compact disk

A

58.14%

210
Q

Greyhound Canada recieves serveral complaints per day about its services. Over a 5-day period (where days are the units of measure), the company received this number of calls fromirate passengers: 2, 4,3,6 and 5. Compute a three-sigma lower control limit for this service process

A

0.00

211
Q

Which of the following best conveys the essence of learning curves

A

as the number of repetition increases, time per unit decreases

212
Q

activity D on a CPM network has predessors B and C and has successor F. D has duration 6. B’s earliest finish is 18 while C’s is 20. F’s late start is 26. which of the following is definitely true

A

d is critical and has zero slack

213
Q

the process for a wall thickness control chart below is out of control because

A

points B and d are candadites for corrective action

214
Q

four major cost cateogries are associated with total quality management.W which of the following is NOT one of those cost categories

A

inventory cost

215
Q

a firm manufactures and sells an item. Ways have been found to cut both the setup and inventory holding costs in half. What effect will this have on the economic order quantities of the items?

A

it will not change.

Operations Management (1 decks)

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