Operations Management Tests
What does WIP stand for? - answer Work in process
Hand tools, lubricants, and cleaning supplies are usually examples of what? – answer
MRO Inventory
What inventory function exists between the manufacturing plant and the distribution
plant? - answer transportation inventory
If a company carries 13 weeks of supply, what is the inventory turnover? - answer52
weeks / 13 weeks = 4
What is an assumption of the basic EOQ model? - answer Quantity discounts are not
considered
What is an assumption of the basic EOQ model? - answer Demand is known and
constant
If annual demand is 24,000 units, orders are placed every 0.5 months, and the cost to
place an order is $50, what is the annual ordering cost? - answer12 months / 0.5
months = 24 * $50 = $1,200
Suppose that a plant manager uses economic batch sizes for production of a product.
Suppose further that the setup cost is $50 per batch, the holding cost per unit per year
is $10, the annual demand is 30,000 units, the firm operates (and experiences demand)
300 days per year, and the production rate per day is 1,000 units. What will be the
maximum inventory level that this product ever reaches? - answerP = 1,000 units
D = 30, = 100
S = $50
Q = √(2DS/(H(1- D/P))) = 577
Imax = Q(1-(D/P)) = 577(1-(100/1000)) = 519
The definition of quality that involves the product functioning as expected without failure
is - answerreliability
Quality has gained such prominence because organizations - answerhave gained an
understanding of the high cost of poor quality
Not only does TQM encompass the entire organization, but it - answerstresses quality is
customer driven
(TQM and JIT focus on customers)
, Studying business practices of companies considered "best in class" is called -
answerbenchmarking
Machine downtime due to failure in the process, scrap and rework are examples of -
answerinternal failure costs
Warranty claims, customer complaints, and costs of litigation are examples of -
answerexternal failure costs
What quality control tool resembles a "fishbone"? - answerCause and effect diagrams
For control charts, which of the following situations means that the process is NOT in
control? - answerA measured observation is above the UCL
Suppose that a product has three parts, each of which must work in order for the
product to function. The reliabilities of the parts are 0.898, 0.933 and 0.946 respectively.
What is the reliability of the product? - answerRs = (R1)(R2)(R3) = (0.898)(0.933)
(0.946) = 0.793
Suppose that a product has two parts, both of which must be working in order for the
product to function. The reliability of the first part is 0.85, and the reliability of the second
part is 0.82. In addition, the second part comes with a backup that is 50% reliable. What
is the overall reliability of the product? - answer0.82 + 0.5(1 - 0.82) = 0.91
(0.85)(0.91) = 0.7735
Common causes of variation are also known as - answerrandom causes
Variation in the production process leads to - answerquality defects
An x-bar chart is an example of what? - answerStatistical process control
Causes of variation that can be identified and eliminated are called what? -
answerAssignable
All processes will have what type of variation? - answerRandom/Common
What measures the central tendency of a set of data? - answerMean
The center line of a control chart represents what? - answerMean
Upper and lower control limits are usually set at +/- how many standard deviations from
the mean? - answer3
Each day for two workweeks (10 days total), George weighs 4 bags from that day's
production. If the average of the means is 14 oz. and the average range is 0.4 oz., what
What does WIP stand for? - answer Work in process
Hand tools, lubricants, and cleaning supplies are usually examples of what? – answer
MRO Inventory
What inventory function exists between the manufacturing plant and the distribution
plant? - answer transportation inventory
If a company carries 13 weeks of supply, what is the inventory turnover? - answer52
weeks / 13 weeks = 4
What is an assumption of the basic EOQ model? - answer Quantity discounts are not
considered
What is an assumption of the basic EOQ model? - answer Demand is known and
constant
If annual demand is 24,000 units, orders are placed every 0.5 months, and the cost to
place an order is $50, what is the annual ordering cost? - answer12 months / 0.5
months = 24 * $50 = $1,200
Suppose that a plant manager uses economic batch sizes for production of a product.
Suppose further that the setup cost is $50 per batch, the holding cost per unit per year
is $10, the annual demand is 30,000 units, the firm operates (and experiences demand)
300 days per year, and the production rate per day is 1,000 units. What will be the
maximum inventory level that this product ever reaches? - answerP = 1,000 units
D = 30, = 100
S = $50
Q = √(2DS/(H(1- D/P))) = 577
Imax = Q(1-(D/P)) = 577(1-(100/1000)) = 519
The definition of quality that involves the product functioning as expected without failure
is - answerreliability
Quality has gained such prominence because organizations - answerhave gained an
understanding of the high cost of poor quality
Not only does TQM encompass the entire organization, but it - answerstresses quality is
customer driven
(TQM and JIT focus on customers)
, Studying business practices of companies considered "best in class" is called -
answerbenchmarking
Machine downtime due to failure in the process, scrap and rework are examples of -
answerinternal failure costs
Warranty claims, customer complaints, and costs of litigation are examples of -
answerexternal failure costs
What quality control tool resembles a "fishbone"? - answerCause and effect diagrams
For control charts, which of the following situations means that the process is NOT in
control? - answerA measured observation is above the UCL
Suppose that a product has three parts, each of which must work in order for the
product to function. The reliabilities of the parts are 0.898, 0.933 and 0.946 respectively.
What is the reliability of the product? - answerRs = (R1)(R2)(R3) = (0.898)(0.933)
(0.946) = 0.793
Suppose that a product has two parts, both of which must be working in order for the
product to function. The reliability of the first part is 0.85, and the reliability of the second
part is 0.82. In addition, the second part comes with a backup that is 50% reliable. What
is the overall reliability of the product? - answer0.82 + 0.5(1 - 0.82) = 0.91
(0.85)(0.91) = 0.7735
Common causes of variation are also known as - answerrandom causes
Variation in the production process leads to - answerquality defects
An x-bar chart is an example of what? - answerStatistical process control
Causes of variation that can be identified and eliminated are called what? -
answerAssignable
All processes will have what type of variation? - answerRandom/Common
What measures the central tendency of a set of data? - answerMean
The center line of a control chart represents what? - answerMean
Upper and lower control limits are usually set at +/- how many standard deviations from
the mean? - answer3
Each day for two workweeks (10 days total), George weighs 4 bags from that day's
production. If the average of the means is 14 oz. and the average range is 0.4 oz., what
