SCM4367-Process and Quality Management EXAM 3 Flashcards
Summing the setup times and run times for all remaining operations, and subtracting this from the time remaining until the due date is referred to as
Order Slack (ST) rule
Johnson’s rule will minimize average job completion (flow) time in two machine case. T/F
F
One way of dealing with the shop-floor complexity is by
priority sequencing rules
Priority sequencing rules determine
Which job to work on at the work center?
The lowest planning and control level in MPC is:
PAC
The lot-for-lot (L4L) procedure
creates order quantities that are exactly equal to net requirements.
The economic order quantity (EOQ) procedure
is based on the assumption of constant uniform demand.
Freezing the schedule is one way of mitigating
MRP system nervousness
When ordering costs are relatively small compared to inventory carrying costs, LFL will yield favorable results. T/F
T
MRP lot-sizing procedures are designed specifically for the discrete demand case. T/F
T
POQ with T > 1 will minimize inventories. T/F
F
The economic order quantity (EOQ) lot-sizing technique produces or acquires exactly the amount of product that is needed each time period with none carried over into future periods. T/F
F
There is no cure for reducing MRP nervousness. T/F
F
The Critical Ratio rule uses the information about the processing time of the job in the current work center only. T/F
F
Dispatching involves the use of logic that guides the prioritizing of jobs at a workstation. These rules are referred to as lot-sizing rules. T/F
F
The routing specifies each operation to be performed to make the part and which work center will perform the operation. T/F
T
The primary connection between PAC and the rest of the MPC systems comes from material requirements plans. T/F
T
PAC stands for Process Activity Control. T/F
F
KBB will provide the minimum total cost only if the net requirements in MRP are lumpy. T/F
F
The economic order quantity (EOQ) lot-sizing technique produces or acquires exactly the amount of product that is needed each time period with none carried over into future periods. T/F
F
LFL and POQ are the same when T =1. T/F
T
An implicit enumeration technique, like a branch and bound, is a heuristic method as it does not evaluate all the possible enumerations of the combinatorial problem. T/F
F
Which one of the following lot-sizing rules guarantees an optimal solution when demand is constant?
KBB & EOQ
Which of the below lot-sizing procedures provide an optimal solution in MRP lot-sizing?
KBB
Which one of the following lot-sizing rules guarantees an optimal solution in a general MRP environment?
KBB
When several jobs arrive at a work center, there is a need for
a system of scheduling and prioritizing
Examining realistic, multiple-machine, dynamic scheduling situations is possible by using
simulation
Sequencing rules are used to establish
the priorities for the jobs in a queue waiting to be processed at a work center.
In a one machine system, the EDD rule for sequencing the order of jobs will result in minimizing average lateness. T/F
T
Production activity control (PAC) focuses on material requirement plans. T/F
F
The primary PAC objective is managing the materials flow to meet MPC plans. T/F
T
The SFC system of PAC is updated on changes in the MRP system. T/F
T
Dispatching involves the use of logic that guides the prioritizing of jobs at a workstation. These rules are referred to as lot-sizing rules. T/F
Sequencing rules simply prioritize jobs at work centers without reference to the capacity. T/F
T
The Theory of Constraints scheduling loads work centers to full capacity by using finite scheduling. T/F
T
The Theory of Constraints scheduling is also referred to as the drum-buffer-rope. T/F
T
In a TOC system, inventory buffers before bottleneck resources are eliminated. T/F
F
Non-bottleneck resources are the focus of the Theory of Constraints. T/F
F
An inventory system answers two important questions: when to order and how much to order. Which of the following statements correctly explains how a Q,R system (continuous review system) answers these questions?
Under a Q,R rule, a fixed quantity Q is ordered when the inventory position reaches the order point R.
Which of the following is not considered a type of inventory?
customer orders
Which one of the following is not generally a determinant of the reorder point?
item purchase cost
Which one of the following is not an assumption of the basic EOQ model?
Quantity discounts can be taken advantage of for large lot sizes.
In Theory of Constraints, “exploit the bottleneck(s),” suggests
creation of a schedule that maximizes the throughput of the bottlenecks.
In Theory of Constraints, which of the following is represented by “drum”?
Bottleneck resource
According to Theory of Constraints, buffers should
be actively managed
Practical application of the Theory of Constraints involves the implementation of all of the following steps except
Reduce the capacity at the bottleneck(s).
Buffers (inventory or time) serve which purpose according to the Theory of Constraints?
Exploit the bottleneck(s).
The A-B-C approach involves classifying inventory items based on their name. T/F
F
The primary reason for keeping inventories low is that inventory represents a temporary monetary investment in goods on which a firm must pay interest. T/F
T
As the service level increases, the probability of not running out of stock during a cycle decreases. T/F
F
ABC analysis is a process for categorizing items according to dollar usage so that managers can focus on items with the highest dollar value. T/F
T
The EOQ is the smallest lot size that a supplier will allow a customer to order. T/F
F
In TOC, bottleneck work centers are scheduled using finite loading techniques. T/F
T
TOC stands for Theory of Operating Controls. T/F
F
A bottleneck is an operation that has the lowest capacity of any operation in the process. T/F
T
Dependent-demand items are those items for which demand is influenced by market conditions and is not related to inventory decision for any other item held in stock. T/F
F
Using the EOQ model, the higher an item’s carrying costs, the more frequently it will be ordered. T/F
T
As the annual demand doubles, the EOQ also doubles. T/F
F
When using ABC analysis, class C items should be reviewed frequently. T/F
F
The overall objective of inventory management is to achieve satisfactory levels of customer service while keeping inventory costs reasonable. T/F
T
The Stock-out probability is:
the probability that inventory will not be sufficient to meet demand during the cycle
Which one of the following is implied by a lead time service level of 95 percent?
The probability is 0.95 that demand during lead time will not exceed the amount on hand at the beginning of lead time.
Which one of the following descriptions best defines customer service level?
Which one of the following is not generally a determinant of the reorder point?
item purchase cost
In the basic EOQ model, if lead time increases from five to 10 days, the EOQ will
remain the same.
Using the Theory of Constraints scheduling logic in simulation mode can help
negotiate achievable delivery dates and meet customer service goals.
In Theory of Constraints, which of the following is represented by “drum”?
Bottleneck resource
In Theory of Constraints application, “breaking the constraint” or “elevate the bottleneck(s),” means
increasing capacity of the bottleneck.
Theory of Constraints scheduling combines data in which of the following pairs?
the bill of materials (BOM) file with data in the routing file
