Exam final opma 3306

In a typical inventory reordering scenario, if the lead time for delivery of the item increases the_____ will need to be increased if stockout risk is to remain unchanged

Safety Stock

which of the following location considerations tends to be more important for service firms than for manufacturers

Proximity to customers

if last week a firm had the theoretical capacity to produce 1000 units and it actually produced 850 units its______ was 85%

utilization

Which of the following statements comparing the weighted moving average technique and exponential smoothing is true:

Exponential smoothing typically requires less record keeping of past data.

The Carbondale Hospital is considering the purchase of a new ambulance. The decision will rest partly on the anticipated mileage to be driven next year. The miles driven during the past 5 years are as​ follows:

Using a​ 2-year moving​ average, the forecast for year 6​ = ? miles ​(round your response to the nearest whole​number).

3,775

add years 4-5 and divide by 2

John's House of Pancakes uses a weighted moving average method to forecast pancake sales. It assigns a weight of 5 to the previous month's demand, 3 to demand two months ago, and 1 to demand three months ago. If sales amounted to 1000 pancakes in May, 2200 pancakes in June, and 3000 pancakes in July, what should be the forecast for August?

25111000+(2200x3)+(3000x5)/9 = 2511

Upper and lower control limits for a cutting operation have been formatted as follows:

UCL(x-bar) 38.2

LCL(x-bar) 37.8

UCL(R) 1.2

LCL(R) 0

Process is in control

A six-month moving average forecast is generally better than a three-month moving average forecast if demand:

is rather stable

In shop floor management, which of the following items are ordinarily non-value adding activities?

All of the above:

queue time, moving, inspecting, and setup time

Very few products are moved without at least part of their journey being by which mode of transportation?

Highway

One of the main purposes of a MRP system is which of the following?

Develop schedules specifying when each component should be ordered or produced.

Which of the following is an input to the master production schedule?

Forecasts of demand from customers

Which of the following is not a production activity report generated by MRP?

Bill of materials report

Which of the following is not included as an inventory holding cost?

Annualized cost of materials

which of the following is usually included as an inventory holding cost

breakage

Which of the following are fixed-time period inventory models?

Periodic system model

Assuming no safety stock, what is the reorder point (R) given an average daily demand of 78 units and a lead time of 3 days?

234

If annual demand is 12,000 units, the ordering cost is $6 per order, and the holding cost is $2.50 per unit per year, which of the following is the optimal order quantity using the fixed-order-quantity model?

240

Which of the following are related to lean production?

A philosophy of waste elimination

Which of the following are elements that address elimination of waste under lean production?

Kanban production control system

In setting up a Kanban control system you need to determine the number of Kanban card sets needed. If the expected demand during lead time is 25 per hour, the safety stock is 20% of the demand during lead time, the container size is 5, and the lead time to replenish an order is 5 hours, what is the number of Kanban card sets needed?

30

25*5= 125

125*.2= 25 unites

125+25=150units

150/5=30 card sets

If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is inventory turnover

.5

600,000/1,200,000

The effect of the lack of synchronization among supply chain members is referred to as which of the following?

Bullwhip effect

which of the following is an organizational driven reason for outsourcing

improve effectiveness by focusing on what the firm does best

When considering outsourcing, what should firms be sure to avoid?

Giving the outsourcing partner opportunities to become a strong competitor

Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions?

Proximity to customers

One of the objectives in facility location analysis is to select a site with the lowest total cost. Which of the following costs are hidden costs that should be included in the analysis?

Movement of preproduction material between locations

An example of a trading bloc is which of the following?

Central American Free Trade Agreement countries

Not among the factors related to infrastructure in making facility location decisions is which of the following?

Satisfactory hotel accommodations

which of the following is the cost of quality classification for costs such as scrap

Internal failure costs

open ended