1. Identify which of the following describes characteristics of a line arrangement for processes.

Low volume of standardized products in a process characterized by high customer contact.

Mid-range volume of very low-quality products produced at low cost.

High volume of few product types made on machines with little flexibility.

Mid-range volume of a variety of somewhat customizable products.

2. Daily demand for a computer is 1,000 units. The ordering cost is $150 per order. For an order quantity of 110 computers, what is the daily ordering cost? Select the closest number.

$1,364

$835

$1,040

$98

3. An order qualifier is ...

A characteristic of a product - good or service - that a customer does not expect.

A characteristic of a product - good or service - that will win business from competitors.

A characteristic of a product - good or service - that a customer expects as a minimum.

A characteristic present only in an exceptionally high-quality product - good or service.

4. The ideal utilization of any process activity is...

greater than 200%

context specific, depending on degree of uncertainty

greater than 100%

close to 0%

5. If a factory has an average of 2,500 units of materials in the system, and if the average flow rate of the system is 5,000 units per day, then according to Little's Law, the average throughput time is...

20 days.

100 days.

0.5 days.

0.05 days.

6. The daily demand for a product is distributed following the Normal distribution with mean (average) of 100 units and standard deviation of 40 units. The lead time of delivery of the product is 9 days. What is the safety stock required under the continuous review policy for a 97.5% service level? (Take z = 1.98, and round your response to the nearest integer).

512

900

72

238