QUESTIONS AND ANSWERS
Adding safety stock - ANS If demand is not uniform and constant, then stockout risks can be
controlled by:
a)spreading annual demand over more frequent, but smaller, orders.
b)adding safety stock.
c)reducing the reorder point.
d)raising the selling price to reduce demand.
e)increasing the EOQ
fewer job classifications and fewer work-rule constraints - ANS Building morale and meeting
staffing requirements that result in an efficient, responsive operation are easier if managers
have:
a)more job classifications and fewer work-rule constraints.
b)more job classifications and more work-rule constraints.
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,c)fewer job classifications and fewer work-rule constraints.
d)fewer job classifications and more work-rule constraints.
Level scheduling is far more common than using a chase strategy - ANS Which of the
following statements regarding aggregate planning in services is FALSE?
a)Approaches to aggregate planning differ by the type of service provided.
b)Level scheduling is far more common than using a chase strategy.
c)Aggregate planning in some service industries may be easier than in manufacturing.
d)Some service organizations conduct aggregate planning in exactly the same way as
manufacturing firms, but with demand management taking a more active role.
e)Labor is the primary aggregate planning vehicle.
the probability of stocking out and calculated as the cost of an overage divided by (the cost of
shortage + the cost of overage) for single-period models - ANS Service level is:
a)the probability of not stocking out.
b)the probability of stocking out.
c)something that should be minimized in retail.
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,d)calculated as the cost of an overage divided by (the cost of shortage + the cost of overage) for
single-period models.
e)the probability of stocking out and calculated as the cost of an overage divided by (the cost of
shortage + the cost of overage) for single-period models
Its output is a standardized product produced from modules. - ANS Which of the following
characteristics best describes repetitive focus?
a)It is widely used for the manufacture of steel.
b)Operators are broadly skilled.
c)low volume, high variety
d)It uses sophisticated scheduling to accommodate custom orders.
e)Its output is a standardized product produced from modules.
pull system - ANS What is a concept that results in material being produced only when
requested and moved to where it is needed just as it is needed?
a)pull system
b)procrastination system
c)push system
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, d)requisition system
operations splitting - ANS What sends a lot to two different machines for the same
operation?
a)overlapping
b)lot splitting
c)pegging
d)operations splitting
GIS - ANS What describes a system that stores and displays information that can be linked to
a geographic location?
a)GIS
b)LIS
c)GLOC
d)AIS
e)LOC
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