The mean absolute deviation (MAD) is used to a seasonally adjust the forecast b. estimate the trend line . c. eliminate forecast errors d. measure forecast accuracy Accuracy in forecasting can be measured by a. MSE b. MAPE c. All the above d. MAD Production systems with customized outputs typically have relatively a. low unit costs

b. non specialized equipment c. high volumes of output d. skilled workers Service operations require additional inventory because of the unpredictability of consumer demand a. True b. False

The value of outputs is measured by the price customers are willing to pay for goods or services a. True b. False The use of models will guarantee the best possible decisions. - a. True -b. False Which of the following is not a type of judgmental forecasting? - a sales force opinions -b. consumer surveys - c. time series analvsis - d. executive opinions A systems approach emphasizes interrelationships among subsystems -a. False -b. True The goal of the basic EOQ model is to - a. minimize the sum of ordering and holding costs -b. minimize the sum of the purchasing and ordering costs c. minimize order size d. minimize holding cost Which of the following items represent a significant difference between manufacturing and service operations? - a. uniformity of output b all the above c. customer contact d. measurement of productivity The Pareto phenomenon is one of the concepts that identify the vital few to help managers for Improvement a. True b. False Which of the following is not a characteristic of service operations? - a easy measu. rement of productivity B. high customer contact - c. intangible output - d. high labor content Which of the following is not one of the assumptions of the basic EO0 model? - a. Quantity discounts are available -b. Lead time does not vary - c. Each order is received in a single delivery - d. Annual demand requirements are known and constant. In an assembly operation at a furniture factory, six employees assembled an average of 450 standard dining chairs per 5-day week. What is the labor productivity of this operation? - a. 90 chairs/worker/day b. 20 chairs/worker/day c. 15 chairs/worker/day d. 75 chairs/worker/day Which one of the following is not a requirement for effective inventory management? a. Reasonable estimates of holding and shortage costs b. A system to keep track of inventory on hand c. All are requirements d. A classification system for inventory items "Assignable variation" is variation due to a specific cause. a. False - b. True The amount of inspection we choose can range from no inspection at all to inspecting each item numerous times a True - b. False Determine the productivity for a machine produced 70 pieces in two hours However, 3 pieces were unusable a. 34 pieces / hour b. 33.5 pieces / hour c. 33 pieces / hour d. 34.5 pieces / hour Variation in a sample statistic collected from a process may be either random variation or assignable variation - or both a. True -b. False Compute the multifactor productivity measure for an eight-hour day in which the accepted output was 300 units, produced by three workers, who have an hourly salary of 520 . And used 800 pounds of materials with cost equal to $1 per pound Overhead is 1.5 times labor cost. a 3.67 units of output per dollar of input b. 0.167 units of output per dollar of input c. 1.67 units of output per dollar of input. d. 267 units of output per dollar of input Production systems with customized outputs typically have relatively. - a. non specialized equipment - b. skilled workers - c. low unit costs d. high volumes of output A process that shows random variability would be judged to be out of control a. True b. False A control chart is a statistical tool used to a. Distinguish common cause variations from special causes variation b. Focus attention on the most important problem areas. c. Decide if there is a correlation between the values of two variables - d. Identify the most likely possible causes for a problem As an abstraction of reality, a model is a simplified version of a real phenomenon. a. False b. True Service involves a much higher degree of customer contact than manufacturing. - a. True b. False If the unit cost to buy something is less than the variable cost to make it, the decision to make or buy is based solely on the fixed costs. a False -b. True Design capacity is just another term used to indicate effective capacity a False b. True It both the lead time and daily demand are constant (no variation), the ROP is equal to a. Safety stock -b. Expected demand plus safety stock c. Daily demand times lead time d. Expected demand minus safety stock A process that shows random variability would be judged to be out of control. Efficiency, in capacity terms, is the ratio of a. Design capacity to effective capacity b. Actual output to design capacity c. Actual output to effective capacity. d. Lifetime capacity to actual output Compute the mutilator productivity measure for an eight-hour day in which the accepted output wa 300 units, produced by three workers, who have an hourly salary of $20. And used 600 pounds of materials with cost equal to st per pound. Overhead is 1.5 times labor cost. a. 0.167 units of output per dollar of input b. 2.67 units of output per dollar of input - c. 1,67 units of output per dollar of input - d. 3.67 units of output per dollar of input Organizations that decided to outsource from another organization has the following disadvantag - a. Potential suppliers may offer superior products/services b. Increased risk of supply chain disturbance c. Very risky especially when demand is unpredictable d. Require high investment Many operations management decisions can be described as tradeoffs a. False Moving average forecasting techniques do the following: a. lead changes in the data -b. immediately reflect changing patterns in the data c. operate independently of recent data - d. smooth variations in the data Given the following information, find the utilization for Effective capacity =20 units per day Design capacity =60 units per day Actual output =15 units per day a, 75% -b. 25% c. 138.3% d. 50% Which of the following is not a type of operations? a. all the above involve operations b. storage/transportation c. goods production - d. entertainment The efficiency of an operation will increase as the ratio of design capacity to actual output increases (Design capacity divided by actual output) a. True b False Capacity refers to: a. Vesical demand variations b. The maximum rate of output that an operating unit can handle c. The long term considerations relate to the overall level of output - d. The short term considerations relate to the probable variations in output Accuracy in forecasting can be measured by a. MSE - b. MAPE - c. All the above d. MAD The mean absolute deviation (MAD) is used to; a. seasonally adjust the forecast - b. estimate the trend line - c. eliminate forecast errors d. measure forecast accuracy Production systems with customized outputs typically have relatively: - a. low unit costs - b. non specialized equipment c. high volumes of output d. skilled workers Service operations require additional inventory because of the unpredictability of consumer demand -a. True b. False The value of outputs is measured by the price customers are willing to pay for goods or services a. True -b. False The use of models will guarantee the best possible decisions a. True -b. False Which of the following is not a type of judgmental forecasting? - a sales force opinions -b. consumer surveys c. time series analysis d executive opinions A systems approach emphasizes interrelationships among subsystems. a. False b. True The goal of the basic EOQ model is to a. minimize the sum of ordering and holding costs b. minimize the sum of the purchasing and ordering costs c. minimize order size d. minimize holding cost The Pareto phenomenon is one of the concepts that identify the vital few to help managers for improvement a. True b. False Which of the following items represent a significant difference between manufacturing and service operations? a. uniformity of output b. all the above - c. customer contact d. measurement of productivity Which of the following is not one of the assumptions of the basic EOQ model? - a. Quantity discounts are available - b. Lead time does not vary c. Each order is received in a single delivery - d. Annual demand requirements are known and constant in an assembly operation at a furniture factory, six employees assembled an average of 450 standard dining chairs per 5-day week. What is the labor productivity of this operation? - a. 90 chairs/worker/day - b. 20 chairs/worker/day - c. 15 chairs/worker/day - d. 75 chairs/worker/day Which of the following is not one of the assumptions of the basic EOQ model? - a. Each order is received in a single delivery b. Lead time does not vary - c. Annual demand requirements are known and constant. d. Quantity discounts are available Which of the following is not one of the assumptions of the bas a. Each order is received in a single delivery - b. Lead time does not vary c. Annual demand requirements are known and constant. - d. Quantity discounts are available If both the lead time and daily demand are constant (no variation), the ROP is equal to - a. Expected demand minus safety stock b. Safety stock c. Daily demand times lead time - d. Expected demand plus safety stock In a two-bin inventory system the amount contained in the second bin is equal to the a. The quantity needed during lead time b. Safety stock c. Optimum stocking level d. EOG A control chart is a statistical tool used to a. Distinguish common cause variations from special causes variation - b. Focus attention on the most important problem areas. - d. Decide if there is a correlation between the values of two variables Accuracy in forecasting can be measured by: a. MAD b. All the above c. MSE O d. MAPE Forecasting techniques generally assume an existing causal system that will continue in the future - a. False -b. True Manufacturing firms that experience seasonal demand are sometimes able to gives a way to create additional demand. a. True b. False variation is a variation whose cause can be identified. a. Statistical - b. Assignable - c. Controllable - d. Random Proactive Planning Strategy attempt to modify demand to match capacity. - a. True b. False Variation in a sample statistic collected from a process may be either random variation or assignable variation - or both. a. False b. True In a two-bin inventory system, the amount contained in the second bin is equal to the: a. Safety stock - b. Optimum stocking level - c. The quantity needed during lead time - d. EOQ Moving average forecasting techniques do the following a. smooth variations in the data b. immediately reflect changing patterns in the data - c. lead changes in the data - d. operate independently of recent data A weighted averaging method based on previous forecast plus a percentage of the forecast error is called - a. Weighted moving average - b. Exponential smoothing - c. Simple moving average - d. Naive approach Forecasting techniques generally assume an existing causal system that will continue to exist in the future. a. True b. False Which of the following is a benefit of using models in decision making? - a. They provide a standardized format for analyzing a problem. -b. They serve as a consistent tool for evaluation. c. They are easy to use and less expensive than dealing with the actual situation. - d. All of the above. Compute the multifactor productivity measure for an eight-hour day in which the accepted output was 300 units, produced by three workers, who have an hourly salary of $20. And used 600 pounds of materials with cost equal to $1 per pound. Overhead is 1.5 times labor cost. - a. 0.167 units of output per dollar of input b. 1.67 units of output per dollar of input c. 2.67 units of output per dollar of input d. 3.67 units of output per dollar of input Forecasting techniques generally assume an existing causal system that wil continue to exist in the future. a. False b. True The shorter the forecast period, the more accurately the forecasts tend to track what actually happens. a. True b. False