You have been called in as a consultant to set up a Kanban control system. The document provides a 30 question exam guide covering operations and supply chain management topics like productivity measures, production layouts, inventory models, forecasting techniques, and supply chain classifications. For more course tutorials, visit www.newtonhelp.com.

1. OPS 571 Final Exam Guide (New, 2018)
You have been called in as a consultant to set up a Kanban control system
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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?

2. A diagram that shows how a company's strategy is delivered to customers
A timeline displaying major planned events
A network guide to 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 total measure of productivity?
Output/Materials
Output/Labor
Output/(Labor + Capital + Energy)
All of these
Output/Inputs
4.

3. Which of the following approaches to service design is characterized by having the
customer 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 together?
Workcenter layout
Production line layout
Group technology layout
Manufacturing cell layout
Assembly line layout

4. 6.
Which of the following is a characteristic that can be used to guide the design of
service systems?
Services are all similar.
Services cannot be inventoried.
Services businesses are inherently entrepreneurial.
Even service businesses have internal services.
Quality work means quality service.
7.
An advantage of a make-to-stock 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.

5. It responds directly to customer orders.
It allows the firm to avoid inventory costs.
8.
Getting an autograph 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

6. 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 to 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 to 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 to date. A process refinement is estimated to 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

7. 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 to monitor 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
14.

8. Which of the following is a fixed-time-period inventory 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
inventory model. Which of the following is the total cost (TC) of the inventory 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 inventory of $150?
None of these
$1,501,600
$1,498,200

9. $499,313
$500,687
A. $1,501,600
Q = 400. Average Inventory = 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 to all of the days that require staffing.
Achieve certainty in standards and routings.

10. Give work centers less to 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.

11. 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 factory.
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

12. 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

13. A, C, E, F, G
A, D, E
21.
Which of the following is not a problem definition tool from the operations consulting
tool kit?
Issue trees
Five forces model
Computer simulation
Customer surveys
Gap analysis
22.

14. 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

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?
Inventory is perishable.
The firm doing yield management is very profitable.
Demand cannot be segmented by customer.
Fixed costs are low, and variable costs are high.
The customer is a "captive" of the system.

16. 25.
What is transaction processing?
The decision support system used to efficiently handle multiple transactions
The movement of paperwork through a system using a decision tree
The scheduling of machinery to 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

17. 1.33
100
27.
Which of the following is an input to the master production schedule (MPS)?
Planned order schedules
The bill of materials
The aggregate plan
The exception report
Inventory records file
28.
Which of the following is considered a primary report in an MRP system?

18. 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 to be shipped between existing points
Inbound transportation costs
Transport times between facilities

19. 30.
In Hau Lee's uncertainty framework to 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