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1. OPS 571 Final Exam Guide (April, 2019)
FOR MORE CLASSES VISIT
www.ops571genius.com
In Hau Lee's uncertainty framework classify supply chains, a supply
chain for functional products with a stable supply process is called
which of the following? Responsive Agile Efficient Risk hedging
Forward looking If annual demand is 12,000 units, annual holding cost
is $15 per unit, and setup cost per order is $25, which of the following is
the EOQ lot size? 1,000 1,200 200 300 2,000 Matching the production
rate the order rate by hiring and laying off employees as the order rate
varies is which of the following pure production planning strategies?
Minimizing inven ry Stable workforce, variable work hours Level Chase
Meeting demand Given a prior forecast demand value of 1,100, a related
actual demand value of 1,000, and a smoothing constant alpha of 0.3,
what is the exponential smoothing forecast value rev:
04_28_2014_QC_48598 1,130 970 1,000 1,070 1,030 Which of the
following is not a problem definition ol from the operations consulting
ol kit? Five forces model Gap analysis Cus mer surveys Issue trees
Computer simulation A company must perform a maintenance project
consisting of seven activities. The activities, their predecessors, and their
respective time estimates are presented here: Using CPM, what is the
latest finish time for the last activity in this project (i.e., the tal time
complete the project)? 12 days 11 days 10 days 13 days 9 days An
activity where the parts that go in each unit of a product are periodically
removed from inven ry and accounted for based on the number of units

2. produced is called which of the following? Frozen window Kanban
Backflush Level schedule Group technology According the theory of
constraints, which of the following is a kind of time that makes up the
cycle time in production? Quality time Research time Break time Just-
in-time Idle time Which of the following is a priority rule used
schedule the sequence of jobs in a production operation? Parts on hand
first First on hand first Last-come, first-served Longest slack time first
Last complaint first Using the fixed-order-quantity model, which of the
following is the tal ordering cost of inven ry given an annual demand of
36,000 units, a cost per order of $80, and a holding cost per unit per year
of $4? $2,267 $849 $1,200 $1,889 $2,400 Which of the following is a
perpetual system for inven ry management? The wheel of inven ry First-
in-first-out Fixed-time period P model Fixed-order quantity Which of
the following address elimination of waste under lean production?
Outsourced housekeeping Backflush Quality at the source Bot m-round
management Info-matic warehouse networks Which of the following is a
reason that there are disparities between a firm's learning curve rate and
that of its industry? Learning curves don't reflect organizational learning.
There may be procedural differences in the manner that different firms
collect and report data. Companies don't always report sensitive data
outside agencies accurately. The starting points for different firms were
different. The cumulative number of units produced is different. For
which of the following should we use an X-bar chart based on sample
means moni r process quality? Grades in a freshman "pass/fail" course
Number of units with missing operations Tire pressures in an au
assembly plant Vehicles passing emissions inspection Computer
software errors Which of the following are the three major components
of a queuing system? rev: 02_17_2017_QC_CS-79354 The number of
cus mers the system serves, the number of steps in the service system,
and how quickly cus mers exit the system The number of servers, the

3. service speed, and the waiting line The number of cus mers and how
they arrive, how cus mers exit the system, and the service system The
service speed, the queue discipline, and the waiting line The source
population, how cus mers exit the system, and the queuing discipline
Which of the following basic types of process structures is one in which
equipment or work processes are arranged according the progressive
steps by which the product is made? Assembly line Continuous process
Work center Project Manufacturing cell Which of the following is one of
the three contrasting approaches delivering on-site service? Production-
line approach Quality approach Professional approach S ck market
approach Retail approach Which of the following is a measure of
operations and supply management efficiency used by Wall Street?
Current ratio Receivable turnover Financial leverage Earnings per share
growth Dividend payout ratio When a company seeks match the
benefits of a successful position while maintaining its existing position
in offering cus mers a variety of differing services, what is this process
called? Inter-functional analysis Order qualifying Order winning
Straddling Operations capability analysis Which of the following is a tal
measure of productivity? Output/(Labor + Capital + Energy)
Output/Labor All of these Output/Materials Output/Inputs In the service-
system design matrix, a face- -face tal cus mization service encounter is
expected have which of the following? Low degree of cus mer/server
contact None of these Low production efficiency High production
efficiency Low sales opportunity We would expect see in a
manufacturing cell layout which of the following? None of these Long
production setup times Large teams who collectively do a small part of a
finished product A small team of workers who turn out complete units of
work More in-process inven ry Which of the following is a major fac r
that distinguishes service design and development from manufacturing
design and development? Capacity decisions are much more critical in

4. manufacturing operations. Manufacturing is far more capital intensive
than services. The service process and service product can be developed
independently. The service package has the same legal protection
available manufactured goods. The service package is the major output
of the development process. The cus mer order decoupling point
determines the position of what in the supply chain? Orders
Transportation facilities Inven ry Cus mers Manufacturing facilities
Machine breakdown and repair in a 12-machine fac ry having one repair
mechanic would develop which type of queuing system line structure
concerning machine breakdowns? Single channel, single phase None of
these Multichannel, single phase Single channel, multiphase
Multichannel, multiphase Assume the service rate for a queue in a truck-
loading operation is 2 trucks per hour. Using the infinite queuing notion
for the models presented in the textbook, which of the following is the
average service time? 0.25 hour 0.5 hour 2 hours 1 hour None of these
An assumption of learning curve theory is which of the following? Unit
time will decrease at a decreasing rate. Unit time will hold constant. Unit
time will increase at an increasing rate. Unit time will increase at a
decreasing rate. Unit time will decrease at an increasing rate. The unit
improvement fac r for a 60 percent learning curve at 25 units is 0.0933.
The first and second timings of a person doing a job are 5 minutes and 3
minutes respectively. Which of the following is the learning-adjusted
time estimate for unit number 25? 0.0933 minute 9.33 minutes 3 minutes
4.665 minutes 0.4665 minute For which of the following should we use
a p-chart moni r process quality? Letter grades on a final examination
Temperature of entrees in a restaurant Weight errors in cans of soup
Errors in the length of a pencil Defective electrical switches You have
been called in as a consultant set up a Kanban control system. The first
thing do is determine the number of Kanban card sets needed. Your
research shows that the expected demand during lead time for a

5. particular component is 150 per hour. You estimate the safety s ck
should be set at 25 percent of the demand during lead time. The te trays
used as containers can hold 8 units of s ck, and the lead time it takes
replenish an order is 2 hours. Which of the following is the number of
Kanban card sets necessary support this situation? 94 68 42 47 89
Which of the following is a fixed-order-quantity inven ry model? P
model Periodic replenishment model The ABC model Economic order
quantity model Cycle counting model Using the fixed-order-quantity
model, which of the following is the tal ordering cost of inven ry given
an annual demand of 36,000 units, a cost per order of $80, and a holding
cost per unit per year of $4? $1,889 $2,267 $849 $2,400 $1,200 Assume
there are five jobs (i.e., A, B, C, D, and E) that need be sequenced in a
production schedule. The remaining operating time necessary for
completion of job A is 4 days (i.e., job A will take 4 more days
complete), B will take 7 days, C will take 8 days, D will take 2 days, and
E will take 5 days. Which job should be scheduled first if you use the
SOT priority rule for job sequencing? E B C D A Which of the
following is a "focusing step" of Dr. Eli Goldratt's theory of constraints?
Reinforce system constraints. If you have no system constraints, make
some. Identify system constraints. Reduce system constraints. Support
system constraints In implementing a lean production system you should
work with suppliers do which of the following? Make frequent
deliveries. Calculate lead times. Achieve bot m-round management.
Freeze windows. Use quality circles. For an activity in a CPM analysis,
the early finish time is 20 and the late finish time is 20. Which of the
following statements is true? The slack for this activity is 20. The
activity's late start must happen before its early start. The activity is on
the critical path. The duration of this task is 20. The duration of this task
is zero. You have been placed in charge of a large project. Shortened
communication lines are required ensure quick resolution of problems

6. as they arise. You recognize that the project is going take a lot of time
and require a lot of team pride, motivation, and commitment by all
members. Which project management structure should you use in this
situation? Pure project PERT Task force Functional project Matrix
project Which of the following is not a principle of reengineering?
Capture information many times, at the source and where it is
interpreted. Treat geographically dispersed resources as though they
were centralized. Merge information processing work in the work that
produces the information. Link parallel activities instead of integrating
their results. Organize around outcomes not tasks. Which of the
following forecasting methodologies is considered a qualitative
forecasting technique? Simple moving average Market research
Exponential smoothing Linear regression Multiple regression A
company wants generate a forecast for unit demand for year 2014 using
exponential smoothing. The actual demand in year 2013 was 120. The
forecast demand in year 2013 was 110. Using these data and a
smoothing constant alpha of 0.1, which of the following is the resulting
year 2014 forecast value? 111 100 114 120 110 Maintaining a stable
workforce working at a constant output rate while shortages and
surpluses are absorbed by fluctuating inven ry levels, order backlogs,
and allowing lost sales is which of the following production planning
strategies? Full employment Stable workforce, variable work hours Skill
maintenance Level Chase What are two of the main objectives of ERP?
Transaction processing and logistic optimizing Resource tracking and
master schedule planning Product tracking and cus mer invoicing
Transaction processing and decision support If the best operating level
of a piece of equipment is at a rate of 400 units per hour and the actual
output during an hour is 300 units, which of the following is the capacity
cushion? 133 percent 25 percent 100 units per hour 125 percent 75
percent Under the lot-for-lot (L4L) lot sizing technique as used in MRP,

7. we would expect which of the following? A consistent lag of supply
behind demand Minimized carrying costs Minimized setup costs
Minimized quality problems A just-in-time management philosophy A
product tree can do which of the following? Help compute component
usage. Reduce product scrap. Reduce regular time labor. Locate raw
material supplies. Reduce labor overtime. Very few products are moved
without at least part of their journey being by which mode of
transportation? Rail Highway Pipeline Water Air In Hau Lee's
uncertainty framework classify supply chains, a supply chain for
innovative products with an evolving supply process is called which of
the following? Responsive Efficient Agile Risk hedging Forward
looking 1. Which of the following is a measure of operations and supply
management efficiency used by Wall Street? Dividend payout ratio
Receivable turnover Current ratio Financial leverage Earnings per share
growth 2. An activity-system map is which of the following? A diagram
that shows how a company's strategy is delivered cus mers A timeline
displaying major planned events A network guide route airlines A
facility layout schematic noting what is done where A listing of
activities that make up a project 3. Which of the following is a tal
measure of productivity? Output/Materials Output/Labor Output/(Labor
+ Capital + Energy) All of these Output/Inputs 4. Which of the
following approaches service design is characterized by having the cus
mer take a greater role in the production of the service? Quality
approach Self-service approach Production-line approach Do-it-yourself
approach Personal-attention approach 5. Which of the following basic
types of production layout formats is one that has similar equipment or
functions are grouped gether? Workcenter layout Production line layout
Group technology layout Manufacturing cell layout Assembly line
layout 6. Which of the following is a characteristic that can be used
guide the design of service systems? Services are all similar. Services

8. cannot be inven ried. Services businesses are inherently entrepreneurial.
Even service businesses have internal services. Quality work means
quality service. 7. An advantage of a make- -s ck process is which of the
following? All units of output are unique. It features rapid delivery of a
standard product. It combines the best features of other processes. It
responds directly cus mer orders. It allows the firm avoid inven ry
costs. 8. Getting an au graph from a famous person might involve
standing in which type of queuing line structure? Single channel, single
phase None of these Single channel, multiphase Multichannel,
multiphase Multichannel, single phase 9. For an infinite queuing
situation, if the arrival rate for loading trucks is 5 trucks per hour, what
is the mean time between arrivals? 2.5 hours 5 hours 0.2 hour 0.1 hour
None of these 10. An assumption of learning curve theory is which of
the following? Organizational learning is not included in learning
theory. The time required do a task will vary randomly each time the
task is repeated. Unit time will decrease at an increasing rate. Learning
will not be transferred from one worker the next. The reduction in unit
time will follow a predictable pattern. 11. A company's production
process has an 80 percent learning curve rate. The process has produced
1,000 units date. A process refinement is estimated allow a future
learning curve rate for the identical product of 75 percent. However, the
initial unit made using the new process will take the same amount of
time as the initial unit produced using the old process. At what point,
using the new process, will the production rate exceed the production
rate achieved by the old process? Before the 100th unit Before the 120th
unit Before the 80th unit Before the 50th unit Before the 250th unit 12.
For which of the following should we use a p-chart moni r process
quality? Grades in a freshman "pass/fail" course Temperatures in a
classroom The dimensions of brick entering a kiln The weight of fluid in
a container Lengths of boards cut in a mill 13. You have been called in

9. as a consultant set up a Kanban control system. The first thing do is
determine the number of Kanban card sets needed. Your research shows
that the expected demand during lead time for a particular component is
150 per hour. You estimate the safety s ck should be set at 25 percent of
the demand during lead time. The te trays used as containers can hold 8
units of s ck, and the lead time it takes replenish an order is 2 hours.
Which of the following is the number of Kanban card sets necessary
support this situation? 42 68 89 47 94 14. Which of the following is a
fixed-time-period inven ry model? Just-in-time model The EOQ model
Periodic system model The Q model The least cost method 15. A
company is planning for its financing needs and uses the basic fixed-
order-quantity inven ry model. Which of the following is the tal cost
(TC) of the inven ry given an annual demand of 10,000, setup cost of
$32, a holding cost per unit per year of $4, an EOQ of 400 units, and a
cost per unit of inven ry of $150? None of these $1,501,600 $1,498,200
$499,313 $500,687 A.$1,501,600 Q = 400. Average Inven ry = Q/2 =
200. Holding cost/year = $4. Thus, annual holding cost = $800. Annual
set-up cost = 10,000/400 = 25 x $32 = 800. Demand x cost per unit =
10,000 x $150 = 1,500,000. Hence, TC = $1,500,000 + 800 + 800 =
$1,501,600. 16. Which of the following is a principle of work center
scheduling? Reschedule every day. Once started, a job can and should be
finished even if unavoidably interrupted. Assign the first worker all of
the days that require staffing. Achieve certainty in standards and
routings. Give work centers less do then their maximum. 17. Which of
the following is a "focusing step" of Dr. Eli Goldratt's theory of
constraints? Identify system constraints. Support system constraints. If
you have no system constraints, make some. Reduce system constraints.
Reinforce system constraints. 18. In designing a lean production facility
layout, a designer should do which of the following? Locate flexible
workstations offline. Balance capacity using job shop analysis. Design

10. for work flow balance. Always keep operations on a single floor of the
fac ry. Link operations through a push system. 19. A simple project
listing of five activities and their respective time estimates are presented
here: Using CPM, which activities make up the critical path? None of
these A, B, D, E A, D, E A, C, B, D, E A, C, D, E 20. A company must
perform a maintenance project consisting of seven activities. The
activities, their predecessors, and their respective time estimates are
presented here: Using CPM, which activities make up the critical path?
A, C, B, F, E None of these A, B, D, F, G A, C, E, F, G A, D, E 21.
Which of the following is not a problem definition ol from the
operations consulting ol kit? Issue trees Five forces model Computer
simulation Cus mer surveys Gap analysis 22. Which of the following is
not one of the basic types of forecasting? Simulation Causal
relationships Qualitative Time series analysis Force field analysis 23. A
company has actual unit demand for three consecutive years of 124, 126,
and 135. The respective forecasts for the same three years are 120, 120,
and 130. Which of the following is the resulting MAD value that can be
computed from these data? 3 1 15 123 5 C MAD = ABS[(124 - 120) +
(126 - 120) + (135 - 130)]/3 = 15/3 = 5. 24. From an operational
perspective, yield management is most effective under which of the
following circumstances? Inven ry is perishable. The firm doing yield
management is very profitable. Demand cannot be segmented by cus
mer. Fixed costs are low, and variable costs are high. The cus mer is a
"captive" of the system. 25. What is transaction processing? The
decision support system used efficiently handle multiple transactions
The movement of paperwork through a system using a decision tree The
scheduling of machinery minimize time and scrap The posting and
tracking of the detailed activities of a business 26. If the actual output of
a piece of equipment during an hour is 500 units and its best operating
level is at a rate of 400 units per hour, which of the following is the

11. capacity utilization rate? 0.75 1.00 1.25 1.33 100 27. Which of the
following is an input the master production schedule (MPS)? Planned
order schedules The bill of materials The aggregate plan The exception
report Inven ry records file 28. Which of the following is considered a
primary report in an MRP system? Cycle counting reports Performance
reports Planned order schedules Planning reports Exception reports 29.
The centroid method for plant location uses which of the following data?
Probabilities and payoffs Correlation matrix of existing facilities
Volume of goods be shipped between existing points Inbound
transportation costs Transport times between facilities 30. In Hau Lee's
uncertainty framework classify supply chains, a supply chain for
functional products with an evolving supply process is called which of
the following? Responsive Forward looking Efficient Risk hedging
Agile
==============================================
OPS 571 Final Exam Guide (New, 2019)
FOR MORE CLASSES VISIT
www.ops571genius.com
In Hau Lee's uncertainty framework classify supply chains, a supply
chain for functional products with a stable supply process is called
which of the following? Responsive Agile Efficient Risk hedging
Forward looking If annual demand is 12,000 units, annual holding cost
is $15 per unit, and setup cost per order is $25, which of the following is

12. the EOQ lot size? 1,000 1,200 200 300 2,000 Matching the production
rate the order rate by hiring and laying off employees as the order rate
varies is which of the following pure production planning strategies?
Minimizing inven ry Stable workforce, variable work hours Level Chase
Meeting demand Given a prior forecast demand value of 1,100, a related
actual demand value of 1,000, and a smoothing constant alpha of 0.3,
what is the exponential smoothing forecast value rev:
04_28_2014_QC_48598 1,130 970 1,000 1,070 1,030 Which of the
following is not a problem definition ol from the operations consulting
ol kit? Five forces model Gap analysis Cus mer surveys Issue trees
Computer simulation A company must perform a maintenance project
consisting of seven activities. The activities, their predecessors, and their
respective time estimates are presented here: Using CPM, what is the
latest finish time for the last activity in this project (i.e., the tal time
complete the project)? 12 days 11 days 10 days 13 days 9 days An
activity where the parts that go in each unit of a product are periodically
removed from inven ry and accounted for based on the number of units
produced is called which of the following? Frozen window Kanban
Backflush Level schedule Group technology According the theory of
constraints, which of the following is a kind of time that makes up the
cycle time in production? Quality time Research time Break time Just-
in-time Idle time Which of the following is a priority rule used
schedule the sequence of jobs in a production operation? Parts on hand
first First on hand first Last-come, first-served Longest slack time first
Last complaint first Using the fixed-order-quantity model, which of the
following is the tal ordering cost of inven ry given an annual demand of
36,000 units, a cost per order of $80, and a holding cost per unit per year
of $4? $2,267 $849 $1,200 $1,889 $2,400 Which of the following is a
perpetual system for inven ry management? The wheel of inven ry First-
in-first-out Fixed-time period P model Fixed-order quantity Which of

13. the following address elimination of waste under lean production?
Outsourced housekeeping Backflush Quality at the source Bot m-round
management Info-matic warehouse networks Which of the following is a
reason that there are disparities between a firm's learning curve rate and
that of its industry? Learning curves don't reflect organizational learning.
There may be procedural differences in the manner that different firms
collect and report data. Companies don't always report sensitive data
outside agencies accurately. The starting points for different firms were
different. The cumulative number of units produced is different. For
which of the following should we use an X-bar chart based on sample
means moni r process quality? Grades in a freshman "pass/fail" course
Number of units with missing operations Tire pressures in an au
assembly plant Vehicles passing emissions inspection Computer
software errors Which of the following are the three major components
of a queuing system? rev: 02_17_2017_QC_CS-79354 The number of
cus mers the system serves, the number of steps in the service system,
and how quickly cus mers exit the system The number of servers, the
service speed, and the waiting line The number of cus mers and how
they arrive, how cus mers exit the system, and the service system The
service speed, the queue discipline, and the waiting line The source
population, how cus mers exit the system, and the queuing discipline
Which of the following basic types of process structures is one in which
equipment or work processes are arranged according the progressive
steps by which the product is made? Assembly line Continuous process
Work center Project Manufacturing cell Which of the following is one of
the three contrasting approaches delivering on-site service? Production-
line approach Quality approach Professional approach S ck market
approach Retail approach Which of the following is a measure of
operations and supply management efficiency used by Wall Street?
Current ratio Receivable turnover Financial leverage Earnings per share

14. growth Dividend payout ratio When a company seeks match the
benefits of a successful position while maintaining its existing position
in offering cus mers a variety of differing services, what is this process
called? Inter-functional analysis Order qualifying Order winning
Straddling Operations capability analysis Which of the following is a tal
measure of productivity? Output/(Labor + Capital + Energy)
Output/Labor All of these Output/Materials Output/Inputs In the service-
system design matrix, a face- -face tal cus mization service encounter is
expected have which of the following? Low degree of cus mer/server
contact None of these Low production efficiency High production
efficiency Low sales opportunity We would expect see in a
manufacturing cell layout which of the following? None of these Long
production setup times Large teams who collectively do a small part of a
finished product A small team of workers who turn out complete units of
work More in-process inven ry Which of the following is a major fac r
that distinguishes service design and development from manufacturing
design and development? Capacity decisions are much more critical in
manufacturing operations. Manufacturing is far more capital intensive
than services. The service process and service product can be developed
independently. The service package has the same legal protection
available manufactured goods. The service package is the major output
of the development process. The cus mer order decoupling point
determines the position of what in the supply chain? Orders
Transportation facilities Inven ry Cus mers Manufacturing facilities
Machine breakdown and repair in a 12-machine fac ry having one repair
mechanic would develop which type of queuing system line structure
concerning machine breakdowns? Single channel, single phase None of
these Multichannel, single phase Single channel, multiphase
Multichannel, multiphase Assume the service rate for a queue in a truck-
loading operation is 2 trucks per hour. Using the infinite queuing notion

15. for the models presented in the textbook, which of the following is the
average service time? 0.25 hour 0.5 hour 2 hours 1 hour None of these
An assumption of learning curve theory is which of the following? Unit
time will decrease at a decreasing rate. Unit time will hold constant. Unit
time will increase at an increasing rate. Unit time will increase at a
decreasing rate. Unit time will decrease at an increasing rate. The unit
improvement fac r for a 60 percent learning curve at 25 units is 0.0933.
The first and second timings of a person doing a job are 5 minutes and 3
minutes respectively. Which of the following is the learning-adjusted
time estimate for unit number 25? 0.0933 minute 9.33 minutes 3 minutes
4.665 minutes 0.4665 minute For which of the following should we use
a p-chart moni r process quality? Letter grades on a final examination
Temperature of entrees in a restaurant Weight errors in cans of soup
Errors in the length of a pencil Defective electrical switches You have
been called in as a consultant set up a Kanban control system. The first
thing do is determine the number of Kanban card sets needed. Your
research shows that the expected demand during lead time for a
particular component is 150 per hour. You estimate the safety s ck
should be set at 25 percent of the demand during lead time. The te trays
used as containers can hold 8 units of s ck, and the lead time it takes
replenish an order is 2 hours. Which of the following is the number of
Kanban card sets necessary support this situation? 94 68 42 47 89
Which of the following is a fixed-order-quantity inven ry model? P
model Periodic replenishment model The ABC model Economic order
quantity model Cycle counting model Using the fixed-order-quantity
model, which of the following is the tal ordering cost of inven ry given
an annual demand of 36,000 units, a cost per order of $80, and a holding
cost per unit per year of $4? $1,889 $2,267 $849 $2,400 $1,200 Assume
there are five jobs (i.e., A, B, C, D, and E) that need be sequenced in a
production schedule. The remaining operating time necessary for

16. completion of job A is 4 days (i.e., job A will take 4 more days
complete), B will take 7 days, C will take 8 days, D will take 2 days, and
E will take 5 days. Which job should be scheduled first if you use the
SOT priority rule for job sequencing? E B C D A Which of the
following is a "focusing step" of Dr. Eli Goldratt's theory of constraints?
Reinforce system constraints. If you have no system constraints, make
some. Identify system constraints. Reduce system constraints. Support
system constraints In implementing a lean production system you should
work with suppliers do which of the following? Make frequent
deliveries. Calculate lead times. Achieve bot m-round management.
Freeze windows. Use quality circles. For an activity in a CPM analysis,
the early finish time is 20 and the late finish time is 20. Which of the
following statements is true? The slack for this activity is 20. The
activity's late start must happen before its early start. The activity is on
the critical path. The duration of this task is 20. The duration of this task
is zero. You have been placed in charge of a large project. Shortened
communication lines are required ensure quick resolution of problems
as they arise. You recognize that the project is going take a lot of time
and require a lot of team pride, motivation, and commitment by all
members. Which project management structure should you use in this
situation? Pure project PERT Task force Functional project Matrix
project Which of the following is not a principle of reengineering?
Capture information many times, at the source and where it is
interpreted. Treat geographically dispersed resources as though they
were centralized. Merge information processing work in the work that
produces the information. Link parallel activities instead of integrating
their results. Organize around outcomes not tasks. Which of the
following forecasting methodologies is considered a qualitative
forecasting technique? Simple moving average Market research
Exponential smoothing Linear regression Multiple regression A

17. company wants generate a forecast for unit demand for year 2014 using
exponential smoothing. The actual demand in year 2013 was 120. The
forecast demand in year 2013 was 110. Using these data and a
smoothing constant alpha of 0.1, which of the following is the resulting
year 2014 forecast value? 111 100 114 120 110 Maintaining a stable
workforce working at a constant output rate while shortages and
surpluses are absorbed by fluctuating inven ry levels, order backlogs,
and allowing lost sales is which of the following production planning
strategies? Full employment Stable workforce, variable work hours Skill
maintenance Level Chase What are two of the main objectives of ERP?
Transaction processing and logistic optimizing Resource tracking and
master schedule planning Product tracking and cus mer invoicing
Transaction processing and decision support If the best operating level
of a piece of equipment is at a rate of 400 units per hour and the actual
output during an hour is 300 units, which of the following is the capacity
cushion? 133 percent 25 percent 100 units per hour 125 percent 75
percent Under the lot-for-lot (L4L) lot sizing technique as used in MRP,
we would expect which of the following? A consistent lag of supply
behind demand Minimized carrying costs Minimized setup costs
Minimized quality problems A just-in-time management philosophy A
product tree can do which of the following? Help compute component
usage. Reduce product scrap. Reduce regular time labor. Locate raw
material supplies. Reduce labor overtime. Very few products are moved
without at least part of their journey being by which mode of
transportation? Rail Highway Pipeline Water Air In Hau Lee's
uncertainty framework classify supply chains, a supply chain for
innovative products with an evolving supply process is called which of
the following? Responsive Efficient Agile Risk hedging Forward
looking 1. Which of the following is a measure of operations and supply
management efficiency used by Wall Street? Dividend payout ratio

18. Receivable turnover Current ratio Financial leverage Earnings per share
growth 2. An activity-system map is which of the following? A diagram
that shows how a company's strategy is delivered cus mers A timeline
displaying major planned events A network guide route airlines A
facility layout schematic noting what is done where A listing of
activities that make up a project 3. Which of the following is a tal
measure of productivity? Output/Materials Output/Labor Output/(Labor
+ Capital + Energy) All of these Output/Inputs 4. Which of the
following approaches service design is characterized by having the cus
mer take a greater role in the production of the service? Quality
approach Self-service approach Production-line approach Do-it-yourself
approach Personal-attention approach 5. Which of the following basic
types of production layout formats is one that has similar equipment or
functions are grouped gether? Workcenter layout Production line layout
Group technology layout Manufacturing cell layout Assembly line
layout 6. Which of the following is a characteristic that can be used
guide the design of service systems? Services are all similar. Services
cannot be inven ried. Services businesses are inherently entrepreneurial.
Even service businesses have internal services. Quality work means
quality service. 7. An advantage of a make- -s ck process is which of the
following? All units of output are unique. It features rapid delivery of a
standard product. It combines the best features of other processes. It
responds directly cus mer orders. It allows the firm avoid inven ry
costs. 8. Getting an au graph from a famous person might involve
standing in which type of queuing line structure? Single channel, single
phase None of these Single channel, multiphase Multichannel,
multiphase Multichannel, single phase 9. For an infinite queuing
situation, if the arrival rate for loading trucks is 5 trucks per hour, what
is the mean time between arrivals? 2.5 hours 5 hours 0.2 hour 0.1 hour
None of these 10. An assumption of learning curve theory is which of

19. the following? Organizational learning is not included in learning
theory. The time required do a task will vary randomly each time the
task is repeated. Unit time will decrease at an increasing rate. Learning
will not be transferred from one worker the next. The reduction in unit
time will follow a predictable pattern. 11. A company's production
process has an 80 percent learning curve rate. The process has produced
1,000 units date. A process refinement is estimated allow a future
learning curve rate for the identical product of 75 percent. However, the
initial unit made using the new process will take the same amount of
time as the initial unit produced using the old process. At what point,
using the new process, will the production rate exceed the production
rate achieved by the old process? Before the 100th unit Before the 120th
unit Before the 80th unit Before the 50th unit Before the 250th unit 12.
For which of the following should we use a p-chart moni r process
quality? Grades in a freshman "pass/fail" course Temperatures in a
classroom The dimensions of brick entering a kiln The weight of fluid in
a container Lengths of boards cut in a mill 13. You have been called in
as a consultant set up a Kanban control system. The first thing do is
determine the number of Kanban card sets needed. Your research shows
that the expected demand during lead time for a particular component is
150 per hour. You estimate the safety s ck should be set at 25 percent of
the demand during lead time. The te trays used as containers can hold 8
units of s ck, and the lead time it takes replenish an order is 2 hours.
Which of the following is the number of Kanban card sets necessary
support this situation? 42 68 89 47 94 14. Which of the following is a
fixed-time-period inven ry model? Just-in-time model The EOQ model
Periodic system model The Q model The least cost method 15. A
company is planning for its financing needs and uses the basic fixed-
order-quantity inven ry model. Which of the following is the tal cost
(TC) of the inven ry given an annual demand of 10,000, setup cost of

20. $32, a holding cost per unit per year of $4, an EOQ of 400 units, and a
cost per unit of inven ry of $150? None of these $1,501,600 $1,498,200
$499,313 $500,687 A.$1,501,600 Q = 400. Average Inven ry = Q/2 =
200. Holding cost/year = $4. Thus, annual holding cost = $800. Annual
set-up cost = 10,000/400 = 25 x $32 = 800. Demand x cost per unit =
10,000 x $150 = 1,500,000. Hence, TC = $1,500,000 + 800 + 800 =
$1,501,600. 16. Which of the following is a principle of work center
scheduling? Reschedule every day. Once started, a job can and should be
finished even if unavoidably interrupted. Assign the first worker all of
the days that require staffing. Achieve certainty in standards and
routings. Give work centers less do then their maximum. 17. Which of
the following is a "focusing step" of Dr. Eli Goldratt's theory of
constraints? Identify system constraints. Support system constraints. If
you have no system constraints, make some. Reduce system constraints.
Reinforce system constraints. 18. In designing a lean production facility
layout, a designer should do which of the following? Locate flexible
workstations offline. Balance capacity using job shop analysis. Design
for work flow balance. Always keep operations on a single floor of the
fac ry. Link operations through a push system. 19. A simple project
listing of five activities and their respective time estimates are presented
here: Using CPM, which activities make up the critical path? None of
these A, B, D, E A, D, E A, C, B, D, E A, C, D, E 20. A company must
perform a maintenance project consisting of seven activities. The
activities, their predecessors, and their respective time estimates are
presented here: Using CPM, which activities make up the critical path?
A, C, B, F, E None of these A, B, D, F, G A, C, E, F, G A, D, E 21.
Which of the following is not a problem definition ol from the
operations consulting ol kit? Issue trees Five forces model Computer
simulation Cus mer surveys Gap analysis 22. Which of the following is
not one of the basic types of forecasting? Simulation Causal

21. relationships Qualitative Time series analysis Force field analysis 23. A
company has actual unit demand for three consecutive years of 124, 126,
and 135. The respective forecasts for the same three years are 120, 120,
and 130. Which of the following is the resulting MAD value that can be
computed from these data? 3 1 15 123 5 C MAD = ABS[(124 - 120) +
(126 - 120) + (135 - 130)]/3 = 15/3 = 5. 24. From an operational
perspective, yield management is most effective under which of the
following circumstances? Inven ry is perishable. The firm doing yield
management is very profitable. Demand cannot be segmented by cus
mer. Fixed costs are low, and variable costs are high. The cus mer is a
"captive" of the system. 25. What is transaction processing? The
decision support system used efficiently handle multiple transactions
The movement of paperwork through a system using a decision tree The
scheduling of machinery minimize time and scrap The posting and
tracking of the detailed activities of a business 26. If the actual output of
a piece of equipment during an hour is 500 units and its best operating
level is at a rate of 400 units per hour, which of the following is the
capacity utilization rate? 0.75 1.00 1.25 1.33 100 27. Which of the
following is an input the master production schedule (MPS)? Planned
order schedules The bill of materials The aggregate plan The exception
report Inven ry records file 28. Which of the following is considered a
primary report in an MRP system? Cycle counting reports Performance
reports Planned order schedules Planning reports Exception reports 29.
The centroid method for plant location uses which of the following data?
Probabilities and payoffs Correlation matrix of existing facilities
Volume of goods be shipped between existing points Inbound
transportation costs Transport times between facilities 30. In Hau Lee's
uncertainty framework classify supply chains, a supply chain for
functional products with an evolving supply process is called which of

22. the following? Responsive Forward looking Efficient Risk hedging
Agile
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