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operations management
Questions and Answers of
Operations Management
Why is a "Black Swan crisis" technically impossible?
If an event is unforeseeable, how can a good contingency plan help?
In disaster planning, which is more important, mitigation or response? Why?
How do robustness and redundancy relate to biomimicry, the copying of design principles from natural systems?
How does Voltaire's quote, "the perfect is the enemy of the good," relate to the well- known problem, "paralysis of analysis"?
If an organization deliberately tolerates a possibility of loss, is this possibility a stra- tegic or an external risk?
Consider three organizations, one operating during an emergency, one during a cri- sis, and one during a disaster. By definition of the three terms, which organization has the best potential to stop
If a company considers 10 different future states of nature to be equally likely, and each of the 10 has a different value, how can that company calculate the expected value?
Is disruptive innovation more likely to create an emergency or a crisis?
A manager assumes an unlikely request in an order must be the result of some unusual customer. Is this an example of outcome bias or normalization?
Someone complains about a supplier who makes mistakes and a manager shrugs and says, "At least they're consistent." Did the manager just comment on the reli- ability or the robustness of the
Does increasing system complexity without increasing redundancy then increase or decrease system reliability?
Does increasing redundancy increase or decrease reliability?
Does increasing redundancy increase or decrease overall utilization of the system?
Which requires improvisation-business impact analysis or bricolage?
Is the newsvendor problem an example of overbooking or yield management?
If a group of people stop the discussion of an important decision for fear of an argu- ment between two members, the outcome of that decision is in danger of suffering from what?
There is a 60% chance of sales of 1 million, a 30% chance of sales of 2 million, and a 10% chance of sales of 3 million. What is the expected value of sales?
A chance event can result in three future states of nature, the first two states having a probability of 20% each. What is the probability of the third future state of nature?
An operation consists of two steps, the first of which has a reliability of 97 % and the second a reliability of 99%. What is the reliability of the operation?
An operation consists of two steps, the first of which has a reliability of 97% and the second a reliability of 99%. What is the probability that the operation will fail?
A component has a reliability of 98% and is backed up by a redundant component with the same probability. What is their combined reliability?
A processer has a 10% probability of freezing, at which point an identical backup processor is activated. What is the probability they both freeze?
There is a 60% chance of a loss of $100, a 30% chance of sales of $100, and a 10% chance of sales of $200. What is the expected value of sales?
An ambulance generally transports between one and eight patients a day. If the ambulance crew reports no particular pattern within that range, what is the expected value of the daily number of
You are the supervising manager for the 6 p.m. to 2 a.m. shift at a hotel. At 1 a.m. your maintenance crew chief reports the strong smell of something burning in the third-floor corridor. However, no
A single ambulance is generally available 70% of the time. If three ambulances are stationed in a service area, what is the reliability of ambulance service? In other words, what is the probability
The online order system for a pizza delivery service has just informed the pizza kitchen of an order for 333 pizzas to be delivered to a nearby residential address. The kitchen crew is surprised by
The Arms Hotel has 56 rooms. A rented room represents \($150\) in profit, while turn- ing away a customer who made a reservation (but the Arms Hotel did not have a room available) costs \($100\).
Damon Telecom is designing a new workhorse satellite to eventually replace all the orbital satellites it manages in its telecommunication network. The design of this satellite consists of five
Atlantic Air operates a low-cost passenger airline fleet of identical airplanes that provide 156 coach class seats each. Atlantic Air serves small airports through a hub-and-spoke network in which
Merchant Real Estate Trust (MRET) buys and develops property for long- term rental to clients such as restaurant chains and department stores. MRET is interested in acquiring land near Exit 44 of
Brightland Tech manufactures computer control boards for other manufac- turers of consumer goods such as microwave ovens, toys, and flat screen monitors. Brightland's product is intended for finished
Recall from Chapter 1 that Convex Productions produces full-length motion pictures for distribution worldwide. Convex has just purchased the rights to a movie script entitled Native Sun, which it
A system held inventory to protect it from uncertainties in supply. In an effort to be lean, this inventory is used and not replaced, although the uncertainties in supply remain unchanged. What is
Why is vendor-managed inventory considered a lean practice? Does VMI reduce inventory?
Why does Toyota's kanban formula contain a safety factor? When is it appropriate for X to be a smaller value? When should it be a larger value?
Just as lean systems are also called just-in-time systems, earlier approaches to inven- tory control are sometimes called just-in-case systems. The phrase just-in-case refers to what?
The emergence of JIT and lean operation are relatively recent when compared to other styles of production and inventory control, but what exactly is new about JIT/ lean? What are its defining
What does the lean principle of level scheduling imply about finished goods inven- tory? Is this a contradiction to the philosophy of lean?
Does lean operation rely on implicit or explicit production planning?
Is a lean operation considered a push or a pull system?
Does lean operation rely more on precise calculations or reaction to signals?
Push versus pull refers to pushing or pulling what?
Muda is another term for what?
In a dual card kanban system, one kind of card represents permission to produce. What does the second type of card represent permission to do?
What does reducing the number of kanban cards circulating in a single card kanban loop reduce?
Lean refers to less what?
An employee says, "I've got to get back to work now. I've got to calculate how many of each kind of part the factory needs to make next week. Then I've got to fill out all those work orders and make
What is the ideal order size in a lean/JIT environment?
Revising a process such that its desired outcome is the only outcome possible, also known casually (and rather inaccurately) as "dummy proofing" or "mistake proof- ing," is a principle known formally
Will implementing leaner practices likely increase or reduce the frequency of order- ing materials?
The usage rate D of a component is 200 an hour, the lead time L on a container of the component is 1 hour, and each container holds 110 components. Assum- ing a policy variable X of 0.10, how many
The usage rate D of a component is 200 an hour, the lead time L on a container of the component is 1 hour, and each container holds 22 components. Assuming a policy variable X of 0.10, how many
The usage rate D of a component is 200 an hour, the lead time L on a container of the component is 1 hour, and each container holds 22 components. Assuming a policy variable X of 0.21, how many
Five hundred of part A and 2,000 of part B are used annually. If the job shop that creates and uses these parts operates 250 working days a year, level scheduling requires the shop to create how many
An item arrives for processing at an average rate of 200 items an hour (), where each item spends an average of 30 hours (W) being processed. On average, how many items are in the processing system?
An item arrives for processing at an average rate of 200 items an hour (X), where each item spends an average of 30 minutes (W) being processed. On average, how many items are in the processing
An item arrives for processing at an average rate of 100 items an hour (\), where each item spends an average of 30 minutes (W) being processed. On average, how many items are in the processing
One common illustration used to demonstrate the philosophy of just-in-time inven- tory management shows a lake in which sharp rocks are hiding beneath the water's surface. What do the rocks represent?
One common illustration used to demonstrate the philosophy of just-in-time inven- tory management shows a lake in which sharp rocks are hiding beneath the water's surface. What does the water
The usage rate of a component is 600 an hour, the lead time on a container of the com- ponent is 30 minutes, and each container holds 110 components. Assuming a policy variable of 10%, how many
A kanban system has just been introduced into a machine shop to control the pro- duction of a common part used by many different subassemblies at many different workstations. The kanban system has
Three kanban cards are hanging on a board next to a work area, while another identical kanban card is attached to the container that an employee is busy filling with parts created in that work area.
The Belmont Company must produce 1,500 boxes of product A each year, 2,000 boxes of product B each year, and 500 boxes of product C each year. The Belmont Company works 250 days a year, and it can
The fabrication department provides a component for the assembly department. The assembly department's usage of the component is 4,800 units per 8-hour day. The fabrication department fills each
Darden Company uses a kanban loop to control SKU #303, which is produced on stamping machines. They have six kanban cards circulating in the loop. Next month Darden will replace its stamping machines
The Fine Crate Company has several machines that cut wooden planks used for building storage pallets and automatically load them into rolling bins for trans- portation and handling. Each bin holds
Tartan Technologies insists on planning on a weekly basis, as they produce 50 weeks out of the year. Tartan Technologies produces three finished goods: the economical model A, the midrange model B,
Rothera Point Utilities operates Rothera Point Power Plant, a coal-fired generation facility that operates continuously, provid- ing electricity to nearly 700,000 households in its service area.
Which represents the greatest threat to the success of an operation, the producer's or the consumer's risk?
What types of operations exhibit the greatest natural variation in their output? How useful is statistical process control to these operations?
If the Central Limit Theorem were to suddenly become invalid, how would the cur- rent use of control charts then be misguided?
Suppose the range within a sample was calculated and then plotted on an R-chart, but this sample range fell outside the lower control limit on the R-chart. Does this necessarily represent defective
Why would a consumer tolerate a certain amount of defectiveness in a product? When is this more common?
A production process that exhibits only natural variation would be considered what?
Another term or description for natural variation is what?
If a point plotted on a control chart falls outside one of the control limits, what does this suggest?
Producer's risk refers to what potential mistake?
To what potential mistake does consumer's risk refer?
Will the variation in sample means be greater or less than the variation in the process being sampled?
A process capability index value greater than 1.0 indicates what?
Will widening the distance between the control limits on a mean chart increase or decrease producer's risk?
How does decreasing the sample size influence the producer's risk in acceptance sampling?
Theoretically, how does an increasing proportion of defects in incoming product influence the probability of accepting a batch?
Do larger sample sizes lead to narrower or wider control limits on a process?
Do larger sample sizes increase or decrease consumer's risk?
Five cans are measured from the recent output of a high-speed bottling line. The weights of each of these cans are 12.23, 12.55, 12.01, 12.26, and 12.17 ounces. What is the mean weight of this sample
Five cans are measured from the recent output of a high-speed bottling line. The weights of each of these cans are 12.23, 12.55, 12.01, 12.26, and 12.17 ounces. What is the range in this sample of
Samples of five cans are to be selected periodically from a canning process that has a standard deviation (o) of 0.2 ounces when in control. What will the standard devia- tion in the sampling
A certain product can weigh no more than 1.001 and no less than 0.998 ounces by design. A machine being considered to produce this product has natural standard deviation of 0.0004 ounces in its
Thirty samples of 16 cans each are measured from a canning process while it is in control. The mean of the 30 sample means is 12.03 ounces and the average range is 0.04 ounces. What should the upper
Thirty samples of 16 cans each are measured from a canning process while it is in control. The mean of the 30 sample means is 12.03 ounces and the average range is 0.04 ounces. What should the upper
The average proportion defective is known to be 1%. What should the upper and lower control limits of a p-chart be if n = 25 and z = 3.0?
The average number of defects is 35 per day. What should the upper and lower control limits of a c-chart be if z = 3.0?
If a sampling plan used a sample size of n = 100 for batches of N = 1,000 units with a 58.3% chance of accepting batches that have an actual proportion defective of p = 10%, what AOQ would result
Suppose a manager must construct either a mean chart with known variation or a p-chart to monitor some process. When the process is in control, the manager wants only 0.6% of the samples taken to
Suppose a manager must construct either a mean chart with known variation or a p-chart to monitor some process. When the process is in control, the manager wants only 12.6% of the samples taken to
Samples of five cans are to be selected periodically from a canning process that has a variance (o) of 0.2 ounces when in control. What will the standard deviation in the sampling distribution be?
A certain product can weigh no more than 1.001 and no less than 0.998 ounces by design. What is the maximum natural variation a process can have to be considered capable of supporting these design
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