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operations management 6th

Questions and Answers of Operations Management 6th

The required number of kanbans equals:a) 1.b) Demand during lead time / Qc) Size of container.d) Demand during lead time.e) Demand during lead time + Safety stock / Size of container
The six attributes of Lean organizations are: ________, ________, ________, ________, ________, and ________.
Lean applies to services:a) Only in rare instances.b) Except in terms of the supply chain.c) Except in terms of employee issues.d) Except in terms of both supply chain issues and employee issues.e)
The semiconductor used in the Sullivan Wrist Calculator has five circuits, each of which has its own reliability rate. Component 1 has a reliability of .90; component 2, .95; component 3, .98;
A recent engineering change at Sullivan Wrist Calculator places a backup component in each of the two least reliable transistor circuits. The new circuits will look like the following:What is the
The two main tactics for improving reliability are _______ and _______.
The reliability of a system with n independent components equals:a) The sum of the individual reliabilities.b) The minimum reliability among all components.c) The maximum reliability among all
What is the formula for the mean time between failures?a) Number of failures 4 Number of unit-hours of operating timeb) Number of unit-hours of operating time ÷ Number of failuresc) (Number of
The process that is intended to find potential failures and make changes or repairs is known as:a) Breakdown maintenance.b) Failure maintenance.c) Preventive maintenance.d) All of the above.
The two main tactics for improving maintenance are _______ and _______.
The appropriate maintenance policy is developed by balancing preventive maintenance costs with breakdown maintenance costs. The problem is that:a) Preventive maintenance costs are very difficult to
______ maintenance partners operators with maintenance personnel to observe, check, adjust, clean, and notify.a) Partneringb) Operatorc) Breakdownd) Six Sigmae) Autonomous
At Maggard Micro Manufacturing, Inc., workers press semiconductors into predrilled slots on printed circuit boards. The elemental motions for normal time used by the company are as follows:(Each time
To obtain the estimate of time a worker is busy for a work sampling study, a manager divides a typical workday into 480 minutes. Using a random-number table to decide what time to go to an area to
When product demand fluctuates and yet you maintain a constant level of employment, some of your cost savings might include:a) Reduction in hiring costs.b) Reduction in layoff costs and unemployment
The difference between job enrichment and job enlargement is that:a) Enlarged jobs contain a larger number of similar tasks, while enriched jobs include some of the planning and control necessary for
The work environment includes these factors:a) Lighting, noise, temperature, and air qualityb) Illumination, carpeting, and high ceilingsc) Enough space for meetings and videoconferencingd) Noise,
Methods analysis focuses on:a) The design of the machines used to perform a task.b) How a task is accomplished.c) The raw materials that are consumed in performing a task.d) Reducing the number of
The least preferred method of establishing labor standards is:a) Time studies.b) Work sampling.c) Historical experience.d) Predetermined time standards.
The allowance factor in a time study:a) Adjusts normal time for errors and rework.b) Adjusts standard time for lunch breaks.c) Adjusts normal time for personal needs, unavoidable delays, and
To set the required sample size in a time study, you must know:a) The number of employees.b) The number of parts produced per day.c) The desired accuracy and confidence levels.d) Management’s
Jon Jackson Manufacturing is searching for suppliers for its new line of equipment. Jon has narrowed his choices to two sets of suppliers. Believing in diversification of risk, Jon would select two
Over the past 10 weeks, demand for gears at Michael’s Metals has been 140, 230, 100, 175, 165, 220, 200, and 178. Michael has placed weekly orders of 140, 250, 90, 190, 140, 240, 190, and 168
A French car company ships 120,000 cars annually to the United Kingdom. The current method of shipment uses ferries to cross the English Channel and averages 10 days. The firm is considering shipping
Which of the following combinations would result in needing to utilize the largest number of suppliers?a) A high value of S and high value of Ub) A high value of S and low value of Uc) A low value of
Typically, the bullwhip effect is most pronounced at which level of the supply chain?a) Consumers b) Suppliersc) Wholesalers d) Retailers
Which of the following is not a characteristic of the factor-weighting approach to supplier evalution?a) It applies quantitative scores to qualitative criteriab) The weights typically sum to 100%c)
A more expensive shipper tends to provide:a) Faster shipments and lower holding costsb) Faster shipments and higher holding costsc) Slower shipments and lower holding costsd) Slower shipments and
Which of the following items is most likely to be storedat the back of a warehouse, furthest away from the shipping dock?a) Low number of trips and low number of storage blocksb) Low number of trips
David Alexander has compiled the following table of six items in inventory at Angelo Products, along with the unit cost and the annual demand in units:Use ABC analysis to determine which item(s)
The Warren W. Fisher Computer Corporation purchases 8,000 transistors each year as components in minicomputers. The unit cost of each transistor is \($10,\) and the cost of carrying one transistor in
Leonard Presby, Inc., has an annual demand rate of 1,000 units but can produce at an average production rate of 2,000 units. Setup cost is \($10;\) carrying cost is \($1.\) What is the optimal number
Whole Nature Foods sells a gluten-free product for which the annual demand is 5,000 boxes. At the moment, it is paying \($6.40\) for each box; carrying cost is 25% of the unit cost; ordering costs
Children’s art sets are ordered once each year by Ashok Kumar, Inc., and the reorder point, without safety stock (dL), is 100 art sets. Inventory carrying cost is $10 per set per year, and the cost
What safety stock should Ron Satterfield Corporation maintain if mean sales are 80 during the reorder period, the standard deviation is 7, and Ron can tolerate stockouts 10% of the time?
ABC analysis divides on-hand inventory into three classes, based on:a) Unit price.b) The number of units on hand.c) Annual demand.d) Annual dollar values.
Cycle counting:a) Provides a measure of inventory turnover.b) Assumes that all inventory records must be verified with the same frequency.c) Is a process by which inventory records are periodically
The two most important inventory-based questions answered by the typical inventory model are:a) When to place an order and the cost of the order.b) When to place an order and how much of an item to
Extra units in inventory to help reduce stockouts are called:a) Reorder point.b) Safety stock.c) Just-in-time inventory.d) All of the above.
The difference(s) between the basic EOQ model and the production order quantity model is(are) that:a) The production order quantity model does not require the assumption of known, constant demand.b)
The EOQ model with quantity discounts attempts to determine:a) The lowest amount of inventory necessary to satisfy a certain service level.b) The lowest purchase price.c) Whether to use a
The appropriate level of safety stock is typically determined by:a) Minimizing an expected stockout cost.b) Choosing the level of safety stock that assures a given service level.c) Carrying
The roofing manufacturer described in Examples 1 to 4 of this chapter wishes to consider yet a fourth planning strategy (plan 4). This one maintains a constant workforce of eight people and uses
A Dover, Delaware, plant has developed the accompanying supply, demand, cost, and inventory data. The firm has a constant workforce and meets all its demand. Allocate production capacity to satisfy
The outputs from an S&OP process are:a) Long-run plans.b) Detail schedules.c) Aggregate plans.d) Revenue management plans.e) Short-run plans.
Aggregate planning is concerned with determining the quantity and timing of production in the:a) Short term.b) Intermediate term.c) Long term.d) All of the above.
Aggregate planning deals with a number of constraints. These typically are:a) Job assignments, job ordering, dispatching, and overtime help.b) Part-time help, weekly scheduling, and SKU production
Which of the following is not one of the graphical method steps?a) Determine the demand in each period.b) Determine capacity for regular time, overtime, and subcontracting each period.c) Find labor
When might a dummy column be added to a transportation table?a) When supply does not equal demandb) When overtime is greater than regular timec) When subcontracting is greater than regular timed)
Revenue management requires management to deal with:a) Multiple pricing structures.b) Changes in demand.c) Forecasts of use.d) Forecasts of duration of use.e) All of the above.
Determine the low-level coding and the quantity of each component necessary to produce 10 units of an assembly we will call Alpha. The product structure and quantities of each component needed for
The factors involved in location decisions includea) Foreign exchange.b) Attitudes.c) Labor productivity.d) All of the above.
If Fender Guitar pays \($30\) per day to a worker in its Ensenada, Mexico, plant, and the employee completes four instruments per 8-hour day, the labor cost/unit isa) \($30.00\).b) \($3.75\).c)
Evaluating location alternatives by comparing their composite (weighted-average) scores involvesa) Factor-rating analysis.b) Cost–volume analysis.c) Transportation model analysis.d) Linear
On the cost–volume analysis chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity at which:a) Fixed costs are
A regional bookstore chain is about to build a distribution center that is centrally located for its eight retail outlets. It will most likely employ which of the following tools of analysis?a)
What is the major difference in focus between location decisions in the service sector and in the manufacturing sector?a) There is no difference in focus.b) The focus in manufacturing is revenue
Aero Maintenance is a small aircraft engine maintenance facility located in Wichita, Kansas. Its new administrator, Ann Daniel, decides to improve material flow in the facility, using the process
The assembly line whose activities are shown in Figure 9.18 has an 8-minute cycle time. Draw the precedence graph, and find the minimum possible number of one-person workstations. Then arrange the
Which of the statements below best describes office layout?a) Groups workers, their equipment, and spaces/offices to provide for movement of information.b) Addresses the layout requirements of large,
Which of the following does not support the retail layout objective of maximizing customer exposure to products?a) Locate high-draw items around the periphery of the store.b) Use prominent locations
The major problem addressed by the warehouse layout strategy is:a) Minimizing difficulties caused by material flow varying with each product.b) Requiring frequent contact close to one another.c)
A fixed-position layout:a) Groups workers to provide for movement of information.b) Addresses the layout requirements of large, bulky projects such as ships and buildings.c) Seeks the best machine
A process-oriented layout:a) Groups workers to provide for movement of information.b) Addresses the layout requirements of large, bulky projects such as ships and buildings.c) Seeks the best machine
For a focused work center or focused factory to be appropriate, the following three factors are
Before considering a product-oriented layout, it is important to be certain
An assembly line is to be designed for a product whose completion requires 21 minutes of work. The factory works 400 minutes per day. Can a production line with five workstations make 100 units per
As pit crew manager for Rusty Wallace’s NASCAR team (see the Global Company Profile that opens this chapter), you would like to evaluate how your “Jackman” (JM) and “Gas Man #1” (GM #1) are
A work operation consisting of three elements has been subjected to a stopwatch time study. The recorded observations are shown in the following table. By union contract, the allowance time for the
The preliminary work sample of an operation indicates the following:What is the required sample size for a 99.73% confidence level with ±4% precision? Number of times operator working Number of
Amor Manufacturing Co. of Geneva, Switzerland, has just observed a job in its laboratory in anticipation of releasing the job to the factory for production. The firm wants rather good accuracy for
Sara James Bakery, described in Examples S1 and S2, has decided to increase its facilities by adding one additional process line. The firm will have two process lines, each working 7 days a week, 3
Marty McDonald has a business packaging software in Wisconsin. His annual fixed cost is \($10,000,\) direct labor is \($3.50\) per package, and material is \($4.50\) per package. The selling price
John has been asked to determine whether the $22.50 cost of tickets for the community dinner theater will allow the group to achieve break-even and whether the 175 seating capacity is adequate. The
Your boss has told you to evaluate the cost of two machines. After some questioning, you are assured that they have the costs shown at the right. Assume:a) The life of each machine is 3 years.b) The
T. Smunt Manufacturing Corp. has the process displayed below. The drilling operation occurs separately from and simultaneously with the sawing and sanding operations. The product only needs to go
Capacity decisions should be made on the basis of:a) Building sustained competitive advantage.b) Good financial returns.c) A coordinated plan.d) Integration into the company’s strategy.e) All of
Effective capacity is:a) The capacity a firm expects to achieve, given the current operating constraints.b) The percentage of design capacity actually achieved.c) The percentage of capacity actually
System capacity is based on:a) The bottleneck.b) Throughput time.c) Time of the fastest station.d) Throughput time plus waiting time.e) None of the above.
The break-even point is:a) Adding processes to meet the point of changing product demands.b) Improving processes to increase throughput.c) The point in dollars or units at which cost equals
Expected monetary value is most appropriate:a) When the payoffs are equal.b) When the probability of each decision alternative is known.c) When probabilities are the same.d) When both revenue and
Net present value:a) Is greater if cash receipts occur later rather than earlier.b) Is greater if cash receipts occur earlier rather than later.c) Is revenue minus fixed cost.d) Is preferred over
Ching-Chang Kuo is considering opening a new foundry in Denton, Texas; Edwardsville, Illinois; or Fayetteville,Arkansas, to produce high-quality rifle sights. He has assembled the following
The Metropolis Public Library plans to expand with its first major branch library in the city’s growing north side. The branch will serve six census tracts. Here are the coordinates of each tract
Quarterly demand for Ford F150 pickups at a New York auto dealer is forecast with the equation:The demand for trucks is seasonal, and the indices for Quarters I, II, III, and IV are 0.80, 1.00, 1.30,
Cengiz Haksever runs an Istanbul high-end jewelry shop. He advertises weekly in local Turkish newspapers and is thinking of increasing his ad budget. Before doing so, he decides to evaluate the past
Using the data in Solved Problem 4.7, find the coefficient of determination, r2, for the model.Data From Problem 4.7Cengiz Haksever runs an Istanbul high-end jewelry shop. He advertises weekly in
Forecasting time horizons include:a) Long range. b) Medium range.c) Short range. d) All of the above.
Qualitative methods of forecasting include:a) Sales force composite.b) Jury of executive opinion.c) Consumer market survey. d) Exponential smoothing.e) All except (d).
The difference between a moving-average model and an exponential smoothing model is that________.
Three popular measures of forecast accuracy are:a) Total error, average error, and mean error.b) Average error, median error, and maximum error.c) Median error, minimum error, and maximum absolute
Average demand for iPods in the Rome, Italy, Apple store is 800 units per month. The May monthly index is 1.25. What is the seasonally adjusted sales forecast for May?a) 640 units b) 798.75 unitsc)
The main difference between simple and multiple regression is_________.
The tracking signal is the:a) Standard error of the estimate.b) Cumulative error.c) Mean absolute deviation (MAD).d) Ratio of the cumulative error to MAD.e) Mean absolute percent error (MAPE).
The design team for Superior Electronics is creating a mobile audio player and must choose between two design alternatives. Which is the better environmental design alternative, based on achieving a
The City of High Point is buying new school buses for the local school system. High Point has found two models of school buses that it is interested in. Eagle Mover costs \($80,000\) to buy and uses
Corporate social responsibility includes:a) Doing what’s right.b) Having policies that consider environmental, societal, and financial impact.c) Considering a product from design to disposal.d) All
Sustainability deals:a) Solely with green products, recycling, global warming, and rain forests.b) With keeping products that are not recyclable.c) With meeting the needs of present and future
The 3Rs of sustainability are:a) Reputation, reuse, reduce.b) Reputation, recycle, reuse.c) Reputation, reverse logistics, renewal.d) Reuse, reduce, recycle.e) Recycle, review, reuse.
Design for disassembly is:a) Cost–benefit analysis for old parts.b) Analysis of the amount of revenue that might be reclaimed versus the cost of disposing of a product.c) A means of recycling

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