QUESTIONS AND ANSWERS
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 - ANS b. adding safety stock.
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.
c. fewer job classifications and fewer work-rule constraints.
d. fewer job classifications and more work-rule constraints - ANS c. fewer job classifications
and fewer work-rule constraints.
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.
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,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. - ANS b. Level scheduling is far more
common than using a chase strategy.
Service level is:
a. the probability of not stocking out.
b. the probability of stocking out.
c. something that should be minimized in retail.
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 - ANS 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
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 - ANS e. Its output is a
standardized product produced from modules
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
d. requisition system - ANS a. pull system
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,What sends a lot to two different machines for the same operation?
a. overlapping
b. lot splitting
c. pegging
d. operations splitting - ANS d. operations splitting
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 - ANS a. GIS
Management should foster a work environment based on
a. nepotism.
b. disloyalty.
c. intimidation.
d. mutual trust and commitment - ANS d. mutual trust and commitment
To develop a standard or benchmark, firms need to start with
a. forming a benchmark team.
b. identifying benchmarking partners.
c. collecting benchmarking information.
d. determining what to benchmark. - ANS d. determining what to benchmark.
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, Which of the following terms implies an increase in responsibility and control in the vertical
direction?
a. job re-design
b. job enrichment
c. job satisfaction
d. job enlargement
e. job rotation - ANS b. job enrichment
Which of the following would most likely fall under the scope of only an operations manager?
a. new product plans
b. Setting inventory levels
c. capital investments
d. facility location/capacity
e. research and development - ANS b. Setting inventory levels
The "four Ms" of cause-and-effect diagrams are:
a. mentality, motivation, management, and manpower.
b. material, management, manpower, and motivation.
c. named after four quality experts.
d. material, machinery/equipment, manpower, and methods.
e. material, methods, men, and mental attitude. - ANS d. material, machinery/equipment,
manpower, and methods.
Solving a load-distance problem for a process-oriented layout requires that:
a. takt time be less than 1.
b. the cost to move a load be the same for all possible paths.
c. Proplanner software examines all possible department configurations.
d. the difficulty of movement varies for all possible paths.
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