For more classes visit www.snaptutorial.com Which of the following is a measure of operations and supply management efficiency used by Wall Street?

1. OPS 571 Final Exam Guide (Jan, 2019)
For more classes visit
www.snaptutorial.com
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 to match the benefits of a successful position
while maintaining its existing position in offering customers 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 total measure of productivity?

2. Output/(Labor + Capital + Energy)
Output/Labor
All of these
Output/Materials
Output/Inputs
In the service-system design matrix, a face-to-face total customization
service encounter is expected to have which of the following?
Low degree of customer/server contact
None of these
Low production efficiency
High production efficiency
Low sales opportunity
We would expect to 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 inventory
Which of the following is a major factor that distinguishes service
design and development from manufacturing design and
development?

3. 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 to
manufactured goods.
The service package is the major output of the development process.
The customer order decoupling point determines the position of what
in the supply chain?
Orders
Transportation facilities
Inventory
Customers
Manufacturing facilities

4. Machine breakdown and repair in a 12-machine factory 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.

5. The unit improvement factor 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 to monitor
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 to set up a Kanban control
system. The first thing to do is to 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 stock should be set at 25 percent of the demand
during lead time. The tote trays used as containers can hold 8 units of
stock, and the lead time it takes to replenish an order is 2 hours.

6. Which of the following is the number of Kanban card sets necessary
to support this situation?
94
68
42
47
89
Which of the following is a fixed-order-quantity inventory 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
total ordering cost of inventory 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

7. Assume there are five jobs (i.e., A, B, C, D, and E) that need to 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 to 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 to do which of the following?
Make frequent deliveries.
Calculate lead times.
Achieve bottom-round management.

8. 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 to ensure quick resolution of
problems as they arise. You recognize that the project is going to 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.

9. Treat geographically dispersed resources as though they were
centralized.
Merge information processing work into 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 to 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

10. Maintaining a stable workforce working at a constant output rate
while shortages and surpluses are absorbed by fluctuating inventory
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 customer 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

11. 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 to 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

12. In Hau Lee's uncertainty framework to 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. The total output from a production system in one day is 500
units and the total labor necessary to produce the 500 units is 350
hours. Using the appropriate productivity measure, which of the
following numbers represents the resulting productivity ratio?
2. When a company seeks to match the benefits of a successful
position while maintaining its existing position in offering customers
a variety of differing services, what is this process called?
3. Which of the following is a measure of operations and supply
management efficiency used by Wall Street?
4. Which of the following approaches to service design is
characterized by having the customer take a greater role in the
production of the service?
5. A difference between project and continuous flow categories
of process flow structures is which of the following?

13. 6. Which of the following is a characteristic that can be used to
guide the design of service systems?
7. An advantage of a make-to-stock process is which of the
following?
It features rapid delivery of a standard product
8. Which of the following production process terms best
describes the situation when activities in a stage of production must
stop because there is no work?
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?
10. An assumption of learning curve theory is which of the
following?
11. A company's production process has an 85 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 very first
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?
12. For which of the following should we use an R-chart to
monitor process quality?

14. 13. In setting up a Kanban control system you need to determine
the number of kanban card sets needed. If assume the expected
demand during lead time is 50 per hour, the safety stock is 20 percent
of the demand during lead time, the container size is 4, and the lead
time to replenish an order is 8 hours, what number of Kanban card
sets is needed?
120
14. Using the ABC classification system for inventory, which of
the following is a true statement?
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 annualdemand 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?
16. The assignment method is useful in solving scheduling
problems that have which of the following characteristics?
There are no jobs to be distributed to n machines or workers.
17. According to the theory of constraints, which of the following
is an operational measurement that can be used to measure the firm's
ability to make money?
18. Which of the following are related to lean production?
19. A simple project listing of five activities and their respective
time estimates are presented here:

15. Using CPM, which activities make up the critical path?
20. You have been placed in charge of a large project. Shortened
communication lines are required to ensure quick resolution of
problems as they arise. You recognize that the project is going to 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?
21. One of the principles of reengineering is which of the
following?
22. Which of the following forecasting methodologies is
considered a qualitative forecasting technique?
23. A company wants to forecast demand using the simple moving
average. If the company uses three prior yearly sales values (i.e., year
2011 = 130, year 2012 = 110, and year 2013 = 160), which of the
following is the simple moving average forecast for year 2014?
24. Which of the following is considered a "pure" production
planning strategy?
25. What are two of the main objectives of ERP?

16. 26. 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?
27. If annual demand is 6,125 units, annual holding cost is $5 per
unit, and setup cost per order is $50, which of the following is the
EOQ lot size?
28. What are the three primary data sources used by the MRP
system?
29. What transportation mode has very high initial investment
costs but gives a very low cost per mile for products that are highly
specialized and require no packaging?
30. In Hau Lee's uncertainty framework to classify supply chains,
a supply chain for innovative products with an evolving supply
process is called which of the following?
**********************************************
OPS 571 Final Exam Guide (New, 2019)
For more classes visit
www.snaptutorial.com

17. 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 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

18. Output/(Labor + Capital + Energy)
All of these
Output/Inputs
4.
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

19. 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.
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

20. 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 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.

21. 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
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
13.
You have been called in as a consultant to set up a Kanban control
system. The first thing to do is to determine the number of Kanban

22. 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 stock should be set at 25 percent of the demand
during lead time. The tote trays used as containers can hold 8 units of
stock, and the lead time it takes to replenish an order is 2 hours.
Which of the following is the number of Kanban card sets necessary
to support this situation?
42
68
89
47
94
14.
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?

23. None of these
$1,501,600
$1,498,200
$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.
Give work centers less to do then their maximum.
17.

24. 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 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
A, B, D, E

25. 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 tool from the
operations consulting tool kit?
Issue trees
Five forces model
Computer simulation
Customer surveys

26. 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.

27. 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.
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
1.33
100

28. 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?
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

29. Inbound transportation costs
Transport times between facilities
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
1. Identify a disadvantage of implementing group technology in a
firm.
The number of employees required for a process increases
exponentially.
The workers must be flexible enough to run several machines and
processes.
It increases inventory.
The waiting time between operations is increased.
2. A shopkeeper purchases raw materials to manufacture souvenirs
for a local event that happens once every five years. In this case.

30. identify the model that the shopkeeper is most likely to use to
maintain stock.
Lot sizing model
Fixed—time period model
Fixed—order quantity model p.
Single-period model
3 Define synchronous manufacturing as stated by Goldratt's theory.
It is a production process organized to achieve the goals of the firm.
It is an integrated set of activities designed to achieve high quality
and high levels of production with minimal inventories of raw
materials.
It is a production process in which machines are the critical resource
used for scheduling.
It is the optimization of the rate at which cash is generated by
production through sales.
4. involves testing random samples of the end product from a
process to determine if the process is churning out items within the
predetermined range.
Organizational leaming
Statistical process control
Cyclical strategic scheduling
Event simulation
5. Utilization is the ratio between the actual amount of time a
resource is activated for and the total amount of time the resource is
available for use.
Utilization
Lead time

31. Service rate
Pacing
6. The manager of a shop floor schedules production based on the
equipment that are used in the process as a key resource. In this
case. the manager is most likely using a
backward scheduling
forward scheduling
machine-limited process
labor-limited process
7 Define lead time.
It is the time required to achieve high customer service with minimum
levels of inventory investment.
It is the time required to produce a variety of products typically at
lower volume levels.
It is the time required to attend to a customer order.
It is the time required to position inventory in the supply chain.
8. refers to the integrated activities designed to achieve high quality
and high levels of production with minimal inventories of raw
materials and to eliminate wastes.
The Shingo system
Kanban system
Lean production
Process mapping
9. Define preventive maintenance.
It is the grouping of similar parts and processes into a specialized
workcell.

32. It is the improvement that stems from both a person's experience and
the changes in equipment. product design. and administration.
It is the periodic inspection and repair of equipment to avoid
breakdowns.
It is the emphasis of getting a product or a process right the first time.
10. shows the relationship between the total number of units
produced and the unit production tim
A Poisson distribution
A learning curve
Cycle time
Service rate
11 Identify a true statement about services.
A service is a tangible process.
A service is inherently heterogeneous
A service has physical dimensions.
A service has very limited or no customer interaction.
12. In a the product remains in a specific location and the
equipment labor and material required for the product are gathered
to the specific location
project layout
functional layout
manufacturing cell
workcenter
13. Rachel performs an analysis in which she analyzes the
performance of the clients of her organization relative to the

33. expectations of the client's customers. In this scenario. Rachel is
most likely using a
Pareto analysis
gap analysis
Gantt chart
bar chart
14. is the design operation and improvement of the processes that
create and deliver a company's essential products and services.
Inventory control
Operations and supply chain management
Product routing
Aggregate sales and operations planning
15. determines the amount of inventory, which includes parts.
components. and materials. necessary to produce a product
Break-even analysis
Dynamic programming
Material requirements planning
GAP analysis
16. Define customer order decoupling point.
It involves the analysis of current business data to better solve
business problems using mathematical calculations.
It is the time required to attend a customer order.
It is the positioning of inventory in a supply chain.
It illustrates the method by which a company's strategy is delivered
through a set of supporting activities.

34. 17. Define waste reduction.
It is the process of combining the concept of cross-docking and
consolidation.
It is the elimination of non—value-adding activities and the
optimization of value-adding activities that are part of a process.
It is the optimization of the rate at which cash is generated by
production through sales.
It is the integration of activities to increase the customer value of a
process.
18. Identify the true statements about the learning curve theory.
It assumes that the unit time for a task will decrease at a decreasing
rate.
A drawback of the learning curve theory is that the performance can
be measured only in terms of time per unit.
In a learning curve. the time for task completion will increase each
time the task is undertaken.
In a learning curve the reduction in time will be unpredictable.
19. is the characteristics of a product in terms of quality that are
sorted as either conforming or nonconforming to specification.
The capability index
A throughput rate
A learning curve
An attribute
20. Identify a true statement about an operations consulting process.
Its results are immediately measurable.
It leads to changes in attitudes and culture of an organization.

35. Unlike general management consulting. operations consulting does
not require extensive interviewing of employees.
It takes a longer time than general management consulting to yield
results that can be measured.
21. Identify a true statement about water transportation mode.
It is a highly specialized mode of transport limited to the delivery of
gases-
Moving high volumes of products is costly.
It can handle a high capacity of materials.
Fast transit times can be achieved in this mode of transportation.
22 A pharmaceutical company keeps detailed documentation of its
inventory. The company replenishes its inventory whenever the
inventory level falls below a certain limit and there is a threat of a
stockout. This company is most likely using a model.
fixed-order quantity
fixed-time period
regression
single-period
23. According to Goldratt's definition, is the rate at which cash is
generated by production through sales.
expediting
throughput
productivity
cash flow
24. Identify an advantage of pure projects.
Team pride, motivation, and commitment are high.

36. Team members have authority over the project.
Organizational goals and policies are upheld.
Duplication of resources is eliminated
25. are used for decisions that are related to aggregate and strategy
demand-
Process assessments
P-models
Periodic review systems
Strategic forecasts
26. Identify a disadvantage of pure projects.
Equipment and people are not shared across projects.
A lot of time is consumed while making decisions.
Lines of communication are lengthened.
The project manager has no authority over the project.
27. is responsible for scheduling, dispatching, monitoring, and
regulating production on the shop floor.
Manufacturing execution system
P-model
ABC classification
Enterprise resource planning
28. is the average time required to finish a cycle of an operation.
Cycle time
Lead time
Queue time

37. Changeover time
29. A manufacturing firm efficiently assembles an airplane by
bringing all the necessary raw materials, parts, and equipment to a
central location. This scenario illustrates a
functional layout
workcenter
manufacturing cell
project layout
30. The main objective of the aggregate operations plan is to:
achieve better integration between suppliers and manufacturers.
minimize the cost of resources necessary to meet demand.
determine future demand with the help of past data.
keep demand and supply in balance.
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