For each question, select theBESTanswer and click on the corresponding radio button for your answer next to the appropriate answer choice for that question. There are 25 questions; each question is worth four points.

Variable Control Chart Constants

Sample Size X-bar Chart ____________R Chart___________________

N A₂ D₃ D₄

2 1.880 0 3.267

3 1.023 0 2.574

4 0.729 0 2.282

5 0.577 0 2.114

6 0.483 0 2.004

7 0.419 0.076 1.924

8 0.373 0.136 1.864

9 0.337 0.184 1.816

10 0.308 0.223 1.777

12 0.266 0.283 1.717

14 0.235 0.328 1.672

16 0.212 0.363 1.637

18 0.194 0.391 1.608

20 0.180 0.415 1.585

22 0.167 0.434 1.566

24 0.157 0.451 1.548

Questions 1 - 3 are based on the following homework problem from chapter 6 in the text.

The management of the Diners Delight franchised restaurant chain is in the process of establishing quality-control charts for the time that its service people give to each customer. Management thinks that the length of time that each customer is given should remain within certain limits to enhance service quality. A sample of four service people was selected and the customer service they provided was observed three times. The activities that the service people performed were identified and the time to service one customer was recorded as noted below:

Service Time (in seconds)

Service Person Sample 1 Sample 2 Sample 3_____

1 120 90 150

2 130 110 140

3 200 180 175

4 165 155 140

______________________________________________________________________________

This test allows 2 attempts. This is attempt number 1.

This test can be saved and resumed later.

Question 1

1. • What are the upper and lower control limits for an X-bar chart with a sample size of four?

   A.	UCL = 146.25, LCL = 68.33
   B.	UCL = 182.05, LCL = 110.44
   C.	UCL = 196.07, LCL = 96.43
   D.	UCL = 199.36, LCL = 97.31
   E.	none of the above

4 points

Question 2

1. • What are the upper and lower control limits for an R-chart with a sample size of four?

   A.	UCL = 90.09, LCL = 0
   B.	UCL = 155.93, LCL = 0
   C.	UCL = 192.69, LCL = 0
   D.	UCL = 199.36, LCL = 0
   E.	none of the above

4 points

Question 3

1. A.	X-bar = 176.25, R = 42; process is in control
   B.	X-bar = 176.25, R = 42; process is out of control
   C.	X-bar = 180, R = 50; process is in control
   D.	X-bar = 180, R = 50; process is out of control
   E.	none of the above

4 points

Question 4

1. Strategies for adjusting capacity to match demand include all of the following EXCEPT:

   A.	Sharing capacity
   B.	Taking reservations
   C.	Cross-training employees
   D.	Using the customer as a co-producer
   E.	Using part-time and temporary workers

4 points

Question 5

1. In the Malcolm Baldridge Quality Award competition, criteria used to evaluate an applicant's overall quality management system include all of the following EXCEPT:

   A.	Results
   B.	Leadership
   C.	Workforce focus
   D.	Customer and market focus
   E.	Documentation of planning and control processes

4 points

Question 6

1. Some ways of dealing with service delays aimed at preventing lost customers include all of the following EXCEPT:

   A.	offer the customer a pager
   B.	offer the customer a comment card to fill out
   C.	offer to reschedule a customer's appointment
   D.	inform the customer of the reason for the delay
   E.	inform the customer of the expected length of delay

4 points

Question 7

1. Inventory held to prevent stockouts in case of possible delivery delays is called:

   A.	Buffer inventory.
   B.	Cyclical inventory.
   C.	Seasonal inventory.
   D.	Speculative inventory.
   E.	Decoupling inventory.

4 points

Question 8

1. Strategies to manage demand by holding fixed capacity include all of the following EXCEPT:

   A.	Partitioning demand
   B.	Offering price incentives
   C.	Promoting off-peak demand
   D.	Increasing customer participation
   E.	Developing complementary services

4 points

Question 9

1. Which of the following tools is used to identify, explore, and graphically display in increasing detail all possible causes of a problem or condition?

   A.	5S
   B.	Six sigma
   C.	Pareto chart
   D.	Control chart
   E.	Cause and effect diagram

4 points

Question 10

1. When designing complaint-handling procedures, best practices for dealing with the customer include all of the following EXCEPT:

   A.	apologizing
   B.	showing empathy
   C.	owning the problem
   D.	involving management
   E.	informing the customer about what has changed

4 points

Question 11

1. All of the following are receiving and inspection costs except:

   A.	Transportation, shipping, and pickup
   B.	Transferring items into storage areas
   C.	Examining packages for visible damage
   D.	Following up to make sure that purchase orders are received by suppliers
   E.	Counting or weighing items to make sure that the correct amount has been delivered

4 points

Question 12

1. The best tool for managers who have a fixed capacity service and must determine the most likely number of customers who will use their service is:

   A.	partitioning demand
   B.	the critical fractile method
   C.	using the customer as a co-producer
   D.	sharing capacity with other companies
   E.	using part-time and temporary workers

4 points

Question 13

1. Six sigma tools are used to:

   A.	Apply for quality awards
   B.	Apply for ISO certification
   C.	Uncover quality problems
   D.	Reduce variation and costs
   E.	Benchmark best-in-class firms

4 points

Question 14

1. Spare parts, cleaning supplies, and hand tools are examples of which of the following types of inventory?

   A.	Pipeline
   B.	Raw material
   C.	Finished goods
   D.	Work-in-process
   E.	Maintenance, repair, and operating supplies

4 points

Question 15

1. Yield management is used by service firms with which of the following characteristics:

   A.	A perishable inventory
   B.	A relatively fixed capacity
   C.	The ability to segment markets
   D.	Low marginal sales costs and high marginal capacity change costs
   E.	All of the above

4 points

Question 16

1. All of the following are points in W. Edwards Deming's 14-point program EXCEPT:

   A.	Cease dependence on mass inspection
   B.	Break down barriers between departments
   C.	Institute a vigorous program of education and training
   D.	End the practice of awarding business on price tag alone
   E.	Identify an organization that excels in the business process

4 points

Question 17

1. Which of the following types of forecasting models uses a specified number of recent observations to make a short-term forecast of demand?

   A.	Regression
   B.	Econometric
   C.	Moving average
   D.	Cross-impact analysis
   E.	Exponential smoothing

4 points

Question 18

1. Which of the following challenges in improving service processes does this observation describe?With services, customers are simultaneously suppliers and customers, which makes it difficult for the service provider to control supplied inputs.

   A.	Capricious labor
   B.	Customer suggestions
   C.	The unreliable supplier dilemma
   D.	Measuring customer expectations
   E.	None of the above

4 points

Question 19

1. When people latch onto information early then fail to update their knowledge when new facts are available, they are exhibiting which of the following mental biases:

   A.	Anchoring
   B.	Availability
   C.	Spurious awareness
   D.	Selective perception
   E.	Confirming evidence

4 points

Question 20

1. Which of the following is a unique assumption of the quantity discount model?

   A.	Lead time does not vary
   B.	Annual demand is known
   C.	Each order is received in a single delivery
   D.	Customers are willing to tolerate stockouts
   E.	Price per item decreases as order quantity increases

4 points

Question 21

1. Service guarantees are useful for organizations for all of the following reasons EXCEPT:

   A.	they reduce producer's risk
   B.	they provide valuable information about service failures
   C.	they force a company to identify its customers' expectations
   D.	they help improve the service delivery system and its procedures
   E.	an unambiguous guarantee for the customer also sets clear standards for the organization

4 points

Question 22

1. A florist would most likely use which of the following inventory models to determine order quantities of fresh flowers?

   A.	Single-period
   B.	Retailing discount
   C.	Planned shortages
   D.	Fixed order interval
   E.	Economic order quantity

4 points

Question 23

1. A service recovery approach that uses a protocol to handle customer complaints is the:

   A.	just-in-time approach
   B.	case-by-case approach
   C.	early-intervention approach
   D.	substitute recovery approach
   E.	systematic-response approach

4 points

Question 24

1. If a store shuts down for a day so that employees can physically count all pieces of merchandise in the store, the store is engaging in:

   A.	Periodic review
   B.	Perpetual review
   C.	Marginal analysis
   D.	Expected value analysis
   E.	ABC inventory classification

4 points

Question 25

1. Which of the following inventory models triggers orders at a certain time instead of at a certain inventory level?

   A.	Single-period
   B.	Retailing discount
   C.	Planned shortages
   D.	Fixed order interval
   E.	Economic order quantity