SCM4367-Process and Quality Management EXAM 3

Question 1

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

Answer 1

Order Slack (ST) rule

Question 2

Johnson’s rule will minimize average job completion (flow) time in two machine case. T/F

Answer 2

F

Question 3

One way of dealing with the shop-floor complexity is by

Answer 3

priority sequencing rules

Question 4

Priority sequencing rules determine

Answer 4

Which job to work on at the work center?

Question 5

The lowest planning and control level in MPC is:

Answer 5

PAC

Question 6

The lot-for-lot (L4L) procedure

Answer 6

creates order quantities that are exactly equal to net requirements.

Question 7

The economic order quantity (EOQ) procedure

Answer 7

is based on the assumption of constant uniform demand.

Question 8

Freezing the schedule is one way of mitigating

Answer 8

MRP system nervousness

Question 9

When ordering costs are relatively small compared to inventory carrying costs, LFL will yield favorable results. T/F

Answer 9

T

Question 10

MRP lot-sizing procedures are designed specifically for the discrete demand case. T/F

Answer 10

T

Question 11

POQ with T > 1 will minimize inventories. T/F

Answer 11

F

Question 12

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

Answer 12

F

Question 13

There is no cure for reducing MRP nervousness. T/F

Answer 13

F

Question 14

The Critical Ratio rule uses the information about the processing time of the job in the current work center only. T/F

Answer 14

F

Question 15

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

Answer 15

F

Question 16

The routing specifies each operation to be performed to make the part and which work center will perform the operation. T/F

Answer 16

T

Question 17

The primary connection between PAC and the rest of the MPC systems comes from material requirements plans. T/F

Answer 17

T

Question 18

PAC stands for Process Activity Control. T/F

Answer 18

F

Question 19

KBB will provide the minimum total cost only if the net requirements in MRP are lumpy. T/F

Answer 19

F

Question 20

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

Answer 20

F

Question 21

LFL and POQ are the same when T =1. T/F

Answer 21

T

Question 22

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

Answer 22

F

Question 23

Which one of the following lot-sizing rules guarantees an optimal solution when demand is constant?

Answer 23

KBB & EOQ

Question 24

Which of the below lot-sizing procedures provide an optimal solution in MRP lot-sizing?

Answer 24

KBB

Question 25

Which one of the following lot-sizing rules guarantees an optimal solution in a general MRP environment?

Answer 25

KBB

Question 26

When several jobs arrive at a work center, there is a need for

Answer 26

a system of scheduling and prioritizing

Question 27

Examining realistic, multiple-machine, dynamic scheduling situations is possible by using

Answer 27

simulation

Question 28

Sequencing rules are used to establish

Answer 28

the priorities for the jobs in a queue waiting to be processed at a work center.

Question 29

In a one machine system, the EDD rule for sequencing the order of jobs will result in minimizing average lateness. T/F

Answer 29

T

Question 30

Production activity control (PAC) focuses on material requirement plans. T/F

Answer 30

F

Question 31

The primary PAC objective is managing the materials flow to meet MPC plans. T/F

Answer 31

T

Question 32

The SFC system of PAC is updated on changes in the MRP system. T/F

Answer 32

T

Question 33

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

Question 34

Sequencing rules simply prioritize jobs at work centers without reference to the capacity. T/F

Answer 34

T

Question 35

The Theory of Constraints scheduling loads work centers to full capacity by using finite scheduling. T/F

Answer 35

T

Question 36

The Theory of Constraints scheduling is also referred to as the drum-buffer-rope. T/F

Answer 36

T

Question 37

In a TOC system, inventory buffers before bottleneck resources are eliminated. T/F

Answer 37

F

Question 38

Non-bottleneck resources are the focus of the Theory of Constraints. T/F

Answer 38

F

Question 39

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?

Answer 39

Under a Q,R rule, a fixed quantity Q is ordered when the inventory position reaches the order point R.

Question 40

Which of the following is not considered a type of inventory?

Answer 40

customer orders

Question 41

Which one of the following is not generally a determinant of the reorder point?

Answer 41

item purchase cost

Question 42

Which one of the following is not an assumption of the basic EOQ model?

Answer 42

Quantity discounts can be taken advantage of for large lot sizes.

Question 43

In Theory of Constraints, “exploit the bottleneck(s),” suggests

Answer 43

creation of a schedule that maximizes the throughput of the bottlenecks.

Question 44

In Theory of Constraints, which of the following is represented by “drum”?

Answer 44

Bottleneck resource

Question 45

According to Theory of Constraints, buffers should

Answer 45

be actively managed

Question 46

Practical application of the Theory of Constraints involves the implementation of all of the following steps except

Answer 46

Reduce the capacity at the bottleneck(s).

Question 47

Buffers (inventory or time) serve which purpose according to the Theory of Constraints?

Answer 47

Exploit the bottleneck(s).

Question 48

The A-B-C approach involves classifying inventory items based on their name. T/F

Answer 48

F

Question 49

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

Answer 49

T

Question 50

As the service level increases, the probability of not running out of stock during a cycle decreases. T/F

Answer 50

F

Question 51

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

Answer 51

T

Question 52

The EOQ is the smallest lot size that a supplier will allow a customer to order. T/F

Answer 52

F

Question 53

In TOC, bottleneck work centers are scheduled using finite loading techniques. T/F

Answer 53

T

Question 54

TOC stands for Theory of Operating Controls. T/F

Answer 54

F

Question 55

A bottleneck is an operation that has the lowest capacity of any operation in the process. T/F

Answer 55

T

Question 56

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

Answer 56

F

Question 57

Using the EOQ model, the higher an item's carrying costs, the more frequently it will be ordered. T/F

Answer 57

T

Question 58

As the annual demand doubles, the EOQ also doubles. T/F

Answer 58

F

Question 59

When using ABC analysis, class C items should be reviewed frequently. T/F

Answer 59

F

Question 60

The overall objective of inventory management is to achieve satisfactory levels of customer service while keeping inventory costs reasonable. T/F

Answer 60

T

Question 61

The Stock-out probability is:

Answer 61

the probability that inventory will not be sufficient to meet demand during the cycle

Question 62

Which one of the following is implied by a lead time service level of 95 percent?

Answer 62

The probability is 0.95 that demand during lead time will not exceed the amount on hand at the beginning of lead time.

Question 63

Which one of the following descriptions best defines customer service level?

Question 64

Which one of the following is not generally a determinant of the reorder point?

Answer 64

item purchase cost

Question 65

In the basic EOQ model, if lead time increases from five to 10 days, the EOQ will

Answer 65

remain the same.

Question 66

Using the Theory of Constraints scheduling logic in simulation mode can help

Answer 66

negotiate achievable delivery dates and meet customer service goals.

Question 67

In Theory of Constraints, which of the following is represented by “drum”?

Answer 67

Bottleneck resource

Question 68

In Theory of Constraints application, “breaking the constraint” or “elevate the bottleneck(s),” means

Answer 68

increasing capacity of the bottleneck.

Question 69

Theory of Constraints scheduling combines data in which of the following pairs?

Answer 69

the bill of materials (BOM) file with data in the routing file