Operations final

Question 1

what is a project?

Answer 1

a temporary endeavor to create unique product

has a defined beginning and end

Question 2

what are the 3 objectives of a project

Answer 2

stay within budget
meet the schedule
meet project specs

Question 3

scheduling techniques

Answer 3

Critical PAth method
PERT
gant charts
network method

Question 4

Critical Path Method

Answer 4

assumed that activity times are known/constant

Question 5

PERT

Answer 5

program evaluation and review technique, recognizes uncertainty in activity time, assumes pessimistic and optimistic times.

Question 6

gaant chart

Answer 6

does not show relationship between activities

Question 7

network method

Answer 7

activity on node

Question 8

purposes of inventory

Answer 8

protect against uncertainty
allow economic production
cover unanticipated changes in supply and demand
provide for transit

Question 9

inventory cost structures

Answer 9

item cost
ordering and setup cost
carrying and holding cost
stockout costs

Question 10

independent demand

essay

Answer 10

EX: finished goods, spare parts, MRO supplies

based on market demand and requires forecasting
Replenishment philosophy: re-order when inventory reached a prespecified level

Question 11

dependent demand

essay

Answer 11

EX: parts that go into finished goods

known function of independent demand
can be calculated based on forecast

Requirement philosophy: only order based on higher level component

Question 12

Economic order to quantity

Answer 12

How much do we order?
EOQ
optimum trade-off of ordering costs and inventory costs

Question 13

Frequent orders _____ avg inventory

Answer 13

lower

Question 14

Fewer orders lead to ________ inventory

Answer 14

higher

Question 15

continuous review system

Answer 15

EOQ- check each time if there is demand

if inventory drops below re-order point, place order

Question 16

what are the periodic review systems

Answer 16

not constantly reviewing inventory
reviewed at fixed intervals
Use when: 
Must order in specific quantity
multiple items from same supplier
inexpensive items

Question 17

ABC inventory classifier

Answer 17

A items: 20% inventory, 80% dollars
B items: 30% inventory, 15% dollars
C items: 50% inventory, 5% dollars
used to set ordering/ monitoring positions

Question 18

elements of MRP

Answer 18

Primary inputs
Primary outputs
Terminology

Question 19

Primary inputs

Answer 19

Master schedule, end items
bill of materials, whats in the item
inventory records, whats on hand?

Question 20

Primary outputs

Answer 20

Purchase orders

shop orders

Question 21

Termonology

Answer 21

parts explosion
gross-to-net requirements
lead-time offset

Question 22

ERP

Answer 22

MRP on steroids
allows other functions to benefit from it
can be shared across the supply chain