Exam 2 Woosley ISDS 3115

Utilization Will typically be lower than efficiency because:

A. effective capacity equals design capacity.

B. effective capacity is less than design capacity.

C. effective capacity is greater than design capacity.

D. expected output is less than actual output.

E. expected output is less than rated capacity.

B. effective capacity is less than design capacity.

A disadvantage of the "few suppliers" sourcing strategy is:

A. the high cost of changing partners.

B. the risk of not being ready for technological change.

C. the suppliers are less likely to understand the broad objectives of the procuring firm and the end customer.

D. the lack of cost savings for customers and suppliers.

E. possible violations of the Sherman Antitrust Act.

A. the high cost of changing partners.

Which of tile following statements regarding a pull system is TRUE?

A. Problems become more obvious.

B. Work is pulled to the downstream stations before it is actually needed.

C. Manufacturing cycle time is increased.

D. Large lots are pulled from upstream stations.

E. None of the above is true of a pull system.

A. Problems become more obvious

Which of the following is FALSE concerning enterprise resource planning (ERP)?

A. It is inexpensive to implement.

B. It provides and accesses information in a real-time environment.

C. It attempts to automate and integrate the majority of business processes.

D. It shares common data and practices across the enterprise. E. ERP software promises reduced transaction costs.

A. It is inexpensive to implement.

Kanban is associated with all EXCEPT which of the following?

A. small lot sizes

B. increased material handling C. signals, such as cards, lights, or flags

D. moving inventory only as needed

E. reductions in inventory

B. increased material handling

Which of the following is one of the benefits in MRP?

A. improved utilization of facilities, labor, and inventory B. marketing response to natural disasters

C. R&D response to customer design and specification changes

D. increased inventory levels

A. improved utilization of facilities, labor, and inventory

Low-level coding means that:

A. a component item is coded at the lowest level at which it appears In the BOM structure. B. a final Item has only a few levels in the BOM structure.

C. the code being used is the code for the lowest level In the BOM structure.

D. the lowest-paid staff member in the production department performs the coding.

E. the top level of the BOM is below level zero and that BOMs are not organized around the finished product.

A. a component item is coded at the lowest level at which it appears in the BOM structure.

ABC analysis divides on-hand Inventory into three classes, generally based upon which of the following?

A. annual dollar volume

B. Item quality

C. annual demand

D. unit price

E. the number of units on hand

A. annual dollar volume

Which of the following products Is likely to be assembled on a repetitive process line?

A. steel

B. custom cakes

C. beer

D. automobiles

E. custom personal computers

D. automobiles

The bullwhip effect:

A. results in increasing fluctuations at each step of the sequence.

B. increases the costs associated with Inventory in the supply chain.

C. occurs as orders are relayed from retailers to distributors to wholesalers to manufacturers. D. occurs because of distortions in information in the supply chain.

E. All of the above are true,

E. All of the above are true.

A work system has six stations that have process times of 10, a, 5, 12, 10, and 20 minutes. Whet is the throughput time of the system in minutes? (Round answer to the nearest whole unit.)

A. 65

B. 20

C. 130

D. 5

E. 11

A. 65 minutes

The two most basic inventory questions answered by the typical inventory model are:

A. ordering cost and carrying cost.

B. order quantity and service level.

C. order quantity and cost of orders.

D. timing of orders and cost of orders.

E. timing of orders and order quantity.

B. timing of orders and order quantity.

Which of the following represents a common way to manage capacity In the service sector?

A. appointments

B. reservations

C. changes in staffing levels

D. "early bird" specials in restaurants

E. first-come, first-served service rule

C. changes in staffing levels

Which of the following would NOT generally be a motive for a firm to hold inventories?

A. to hedge against inflation

B. to minimize holding costs

C. to take advantage of quantity discounts

D. to decouple various parts of the production process

E. to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand

B. to minimize holding costs

What term is used to describe the outsourcing of logistics?

A. shipper-managed inventory (SMI)

B. third-party logistics (3PL)

C. e-logistics

D. sub-logistics

E. hollow logistics

B. third-party logistics (3PL)

Which of the following is an advantage of the postponement technique?

A. reduction In training costs B. reduction In inventory investment

C. early customization of the product

D. reduction in automation

E. better quality of the product

B. reduction in inventory investment

What Is the practice of keeping a product generic as long as possible before customizing?

A. vendor-managed inventory

B. kefretsu

C. forward integration

D. backward integration

E. postponement

E. postponement

The crossover point is that production quantity where:

A. variable costs of one process equal the variable costs of another process.

B. the process no longer loses money.

C. total costs for one process equal total costs for another process.

D. fixed costs of a process are equal to its variable costs.

E. total costs equal total revenues for a process.

C. total costs for one process equal total costs for another process.

A disadvantage of the fixed-period inventory system is that:

A. since there is no count of inventory during the review period, a stockout Is possible.

B. the average inventory level is decreased.

C. additional inventory records are required.

D. orders usually are for larger quantities.

E. it involves higher ordering costs than the fixed quantity inventory system.

A. since there is no count of inventory during the review period, a stockout is possible.

What is a common method used to Increase capacity with a lag strategy?

A. overtime

B. subcontracting

C. new machinery

D. new facilities

E. A and B

E. A and B (overtime and subcontracting)

Lean operations are known for their:

A. challenging lobs.

B. supplier education.

C. supplier partnerships.

D. employee development.

E. All of the above are attributes of lean operations.

E. All of the above are attributes of lean operations.

Which one of the following is not a benefit of JIT implementation?

A. quality improvement

B. cost reduction

C. rework reduction

D. variability Increase

E. rapid throughput

D. variability increase

Which of the following are all strategies for improving productivity in services?

A. reduce inventory, reduce waste, reduce inspection, and reduce rework

B. separation, self-service, automation, and scheduling

C. high Interaction, mass customization, service factory, and lust-in-time

D. lean production, strategy-driven investments, automation, and process focus E. process focus, repetitive focus, product focus, and mass customization focus

B. separation, self-service, automation, and scheduling

Which of the following is NOT a goal of JIT partnerships?

A. obtain Improved quality and reliability

B. removal of in-transit inventory

C. removal of unnecessary activities

D. removal of in-plant inventory

E. All of the above are goals of JIT partnerships.

E. All of the above are goals of JIT partnerships

Which of the following lot-sizing techniques results in the lowest holding costs?

A. the quantity discount model B. EOQ

C. lot-for-lot

D. POQ

E. Wagner-Whilin algorithm

C. lot-for-lot

Which of the following best represents the relationship between the master production schedule (MPS) and the aggregate plan?

A. The MPS precedes the aggregate plan in the planning process.

B. The MPS is the same as the aggregate plan.

C. The MPS disaggregates the aggregate plan.

D. There is no relationship between the MPS and the aggregate plan.

C. The MPS disaggregates the aggregate plan

Which of the following is FALSE regarding repetitive processes?

A. They use modules.

B. They Include the assembly of basically all automobiles.

C. They are the classic assembly lines.

D. They have more structure and less flexibility than a job shop layout.

E. They allow easy switching from one product to the other.

E. They allow easy switching from one product to the other.

A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributors. This is an example of which of the following?

A. current transformation

B. keiretsu

C. backward integration

D. horizontal integration

E. forward integration

C. backward integration

In mess service and professional service, the operations manager should focus extensively on

A. cost-cutting initiatives.

B. equipment maintenance.

C. human resources.

D. sophisticated scheduling.

E. automation.

C. human resources.

The purpose of safety stock is to:

A. control the likelihood of a stockout due to variable demand and/or lead time

B. replace failed units with good ones

C. eliminate the possibility of a stockout

D. eliminate the likelihood of a stockout due to erroneous inventory tally

E. protect the firm from a sudden decrease in demand

A. control the likelihood of a stockout due to variable