1. ISCOM 471 FINAL EXAM
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1 A resource that limits the capacity for maximum output of a process is a
a. block
b. starve
c. bottleneck
d. process improvement
2 The aggregate operations plan is concerned with setting production rates by
product group or other broad categories for the intermediate team.
a. True
b. False
3 Quality function deployment is a tool used to identify
a. customer requirements
b. process improvements
c. quality
d. cost factors
4 _____________ is the philosophy of continually seeking improvements in a
process through the use of team efforts.
a. Quality control
b. Performance quality
c. Continuous improvement
d. Conformance quality

2. 5 ___________ is a type of forecast in which data related to past demand are used
to predict the future.
a. Linear regression forecasting
b. Focus forecasting
c. Time series analysis
d. Past causal relationships
6 Which of the following factors account for the interest in organizational
management?
a. Current problems/opportunities
b. Inventory costs
c. Customer satisfaction
d. All of the above
7 Fundamental MRP II questions include all of the following EXCEPT
a. What does it take to make it?
b. What do we have?
c. What do we have to get?
d. Who needs it?
8 What is one reason for failure in project scheduling?
a. Lack of management support
b. Inadequate training
c. Incomplete project
d. Lack of diversity in team members
9 A bottleneck is defined as any resource whose capacity limits throughput in the
production line.
a. True

3. b. False
10 A simple inventory system includes:
a. Optional replenishment, Two-bin, One-bin
b. MRP, Two-bin, One-bin
c. Optional replenishment, order point, One-bin
d. Order point, Two-bin, One-bin
11 The bill of material contains all of the following EXCEPT
a. Sequence in which the product is created
b. Transaction files
c. Complete product description
d. Listing of materials
12 What is the inherent value of a product in the marketplace?
a. Conformance quality
b. Design quality
c. Six Sigma
d. Cost
13 "Operations management is defined as the design, operation, and improvement
of the systems that
create and deliver the firm’s primary products and services."
a. True
b. False
14 If there is no bottleneck, then excess capacity exists and the system should be
changed to create a bottleneck.
a. True
b. False

4. 15 Disadvantages of capacity simulation include all of the following EXCEPT
a. A significant amount of computer time may be needed to run complex models.
b. A great deal of time and effort typically is spent to develop a model for the
simulation.
c. Simulation can be used as a game for training experience.
d. None of the above.
16 "_____________ can be defined as planning, directing, and controlling resources
to meet technical,
cost, and time constraints."
a. Project management
b. Configuration management
c. Process analysis
d. Process improvement
17 Which of the following statements are true about time-series forecasting?
a. Time series analysis tries to understand the system underlying and surrounding
the item being forecast.
b. Under time-series methods, demand is divided into the time-based components
such as daily, weekly, and so forth.
c. Time-series methods are useful for long-range forecasts when the demand
pattern is erratic.
d. Time series analysis is based on the idea that the history of occurrences over time
can be used to predict the future.
18 Delay of the process step that differentiates a product as late in the supply chain
as possible is called
a. delayed delivery
b. design logistics
c. fast tracking

5. d. process postponement
19 "The radical change paradigm, introduced by Michael Hammer and major
consulting firms, is referred
to as: "
a. manufacturing strategy paradigm
b. business process reengineering
c. synchronous manufacturing
d. total quality management
20 Given that the previous forecast of 65 turned out to be 4 units less than the
actual demand and the next forecast is 66, what would be the value of alpha if the
simple exponential smoothing forecast method is being used?
a. 0,02
b. 0,25
c. 0,04
d. 0,30
21 ____________ is a measure a firm can use to determine how close it is to its best
operating level.
a. Capacity utilization rate
b. Average aggregation rate
c. Capacity efficiency rate
d. All of the above
22 "A company that can offer on-site repair in only 1 or 2 hours is an example of a
company that is
competing on _______ competitive dimension."
a. flexibility
b. process quality

6. c. delivery reliability
d. delivery speed
23 _____________ is managing the entire organization so that it excels on all
dimensions or product and services that are important to the customer.
a. SRC
b. Six Sigma
c. Cost
d. TQM
24 Manufacturing is involved in what phases of the product design process?
a. Production ramp-up
b. Initial planning
c. Concept development
d. All of the above
25 Variability in demand magnified as we move from the customer to the producer
in the supply chain is called
a. cause and effect
b. push system
c. Pull system
d. Bull Whip effect
26 JIT drawbacks include all of the following EXCEPT
a. stable production level
b. limited flexibility in products produced
c. vendors do not need to be located nearby
d. still require work in process when used with Kanban

7. 27 A _________ approach actually schedules in detail each resource using the setup
and runtime required for each order.
a. infinite loading
b. finite loading
c. forward scheduling
d. backward scheduling
28 The main objectives of manufacturing strategy are
a. translating required competitive dimensions into specific performance
requirements for operations
b. making the necessary plans to ensure that operations capabilities are sufficient
to accomplish performance requirements
c. converting order winners into specific performance requirements
d. all of the above
29 The purpose of a “time fence” is which of the following?
a. Make sure the cows don’t get out of the barn
b. Control flow through the production system
c. Maximize sales to retailers
d. None of the above
30 ________ is when the activities in the stage must stop because there is no place
to deposit the item just completed.
a. Buffering
b. Blocking
c. Starving
d. Bottleneck
31 The seven elements that address the elimination of waste include all of the
following EXCEPT

8. a. quality at the source
b. large batch process
c. group technology
d. uniform plan loading
32 Which MRP system input element specifies how many and when the firm plans
to build each end item?
a. Bills of material
b. Master production schedule
c. Capacity planning
d. None of the above
33 The value for alpha or α must be between which of the following when used in an
Exponential Smoothing model?
a. 1 to 10
b. 1 to 2
c. 0 to 1
d. -1 to 1
34 A travel agency processed 240 customers on Day 1 with a staff of 12, and 360
customers on Day 2 with a staff of 15. What can be said about the productivity shift
from Day 1 to Day 2?
a. An increase in productivity from Day 1 to Day 2
b. A decrease in productivity from Day 1 to Day 2
c. The same productivity from Day 1 to Day 2
d. Can not be computed from data above
35 The basic logic behind the ABC Classification system for inventory management
is which of the following?
a. Two-bin logic

9. b. One-bin logic
c. Pareto principle
d. All of the above
36 Supply-chain strategy concepts are applicable to what types of companies?
a. Service
b. Restaurants
c. Airlines
d. All of the above
37 In the Input-Transformation-Output Relationship, a typical “input” for a
Department Store is which of the following?
a. Displays
b. Stocks of goods
c. Sales clerks
d. None of the above
38 Which of the following is NOT true about JIT systems?
a. JIT is typically applied to repetitive manufacturing.
b. The goal of JIT is to drive all inventory queues to a moderate level thus
minimizing inventory investment and shortening lead times.
c. The JIT system is based on the philosophy of eliminating waste and utilizing the
full capability of the worker.
d. Under JIT, the ideal lot size is one.
39 When a company waits until they have an order for their product in hand before
beginning any production for that order, we can characterize their operation as
which of the following processes?
a. Single-stage process
b. Multi-stage process

10. c. Make-to-order process
d. Make-to-stock process
40 If the “cost of goods sold” for a company is $1,000,000 and the “average
aggregate inventory value” is $25,000, which of the following is the “inventory
turnover”?
a. 40
b. 50
c. 400
d. None of the above
41 The supply chain measure of “Inventory Turnover” is which of the following
ratios?
a. Avg. inventory value/total costs
b. Costs of goods sold/Avg. aggregate inventory value
c. Total costs of goods/Avg. costs of goods
d. Weeks worth of inventory/No. of weeks
42 Which of the following are standard measures of schedule performance used to
evaluate priority rules?
a. Meeting due dates
b. Maximizing job flow time
c. Maximizing work-in-process inventory
d. All of the above
43 To improve the Capacity Utilization Rate we can do which of the following?
a. Increase “best operating level”
b. Reduce “capacity used”
c. Increase “capacity used”
d. All of the above

11. 44 Which type of process is by changing of raw materials into some specific form
(such as sheet metal into a car fender)?
a. Conversion
b. Fabrication
c. Assembly
d. Testing
45 Sales and Operations Planning activities are usually conducted during which
planning time horizon?
a. Really short-range
b. Short-range
c. Intermediate-range
d. Long-range
46 Based on the Service-System Design Matrix, which of the following has a lower
level of “production efficiency”?
a. Face-to-face loose specs
b. Phone contact
c. Internet and on-site technology
d. Face-to-face tight specs
47 Johnson’s rule is a sequencing rule used for scheduling any number of jobs on
two machines.
a. True
b. False
48 According to Goldratt, any resource whose capacity is less than the demand
placed on it, is considered which of the following?
a. Nonbottleneck resource
b. Bottleneck resource

12. c. Capacity-constrained resource
d. A buffer resource
49 The DMAIC cycle of Six Sigma is similar to which of the following quality
management topics?
a. Continuous improvement
b. Servqual
c. ISO 9000
d. External benchmarking
50 In the Pull System the partner that begins the process of “pulling” is which of the
following?
a. CEO
b. Customers
c. Vendors
d. Fabrication personnel
ISCOM 471 FINAL EXAM
PLEASE DOWNLOAD THE
ANSWERS HERE!!!