1
According to the theory of constraints, which of the
following is a financial measurement that can be used to measure the firm’s
ability to make money?
Net profit
Throughput
Inventory
Sales
A material requirements planning system is an example of
which of the following scheduling systems?
Infinite loading, backward scheduling
Finite loading, forward scheduling
Finite loading, backward scheduling
Infinite loading, forward scheduling
A company can produce a small lot of products the first time
at a cost of $2,000. If their 85 percent learning curve allows them to reduce
their costs on each lot, what is the total cost of producing 5 lots?
$10,000.00
$9,376.50
$8,062.00
$4,031.00
In business forecasting, what is usually considered a
medium-term time period?
One to six months
One to five years
Three months to two years
Six weeks to one year
You want to determine the upper control line for a p-chart
for quality control purposes. You take several samples of a size of 100 items
in your production process. From the samples, you determine the fraction
defective is 0.05 and the standard deviation is 0.01. If the desired confidence
level is 99.7 percent, which of the following is the resulting UCL value for
the line?
0.08
0.39
0.05
0.06
6
Which of the following is a multifactor measure of
productivity?
Output/(Labor + Capital + Energy)
Output/Inputs
Output/(Materials)
Output/All resources used
Which of the following is a time-to-market performance
measure used in judging product development performance?
Frequency of new-product introductions
Product reliability
Yield
Customer loyalty
You have just been assigned to oversee a series of projects.
Functional areas will loan you personnel for each project, and separate project
managers will be responsible for separate projects. These project managers will
report to you. Which project management structure is being used?
Functional project
Matrix project
Pure project
Task force
In setting up a kanban control system you need to determine
the number of kanban card sets needed. If the expected demand during lead time
is 25 per hour, the safety stock is 20 percent of the demand during lead time,
the container size is 5, and the lead time to replenish an order is 5 hours,
what the number of kanban card sets is needed?
30
27
20
5
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?
Pipeline
Highway
Water
Rail
11
We would expect to see which of the following in an MRP
system’s inventory status file?
Scrap parts
Labor efficiency
Late/early delivery records
End items produced
12
There are many applications of poka-yokes in service
organizations. Which of the following is one of the three-T’s used to classify
poka-yokes?
Task
Trust
Time
Teamwork
A project starts out as which of the following?
A series of milestones
Critical path method (CPM)
A statement of work
A latest-start-time estimate
Which of the following is a major factor that distinguishes
service design and development from manufacturing design and development?
The service package has the same legal protection available
to manufactured goods.
Manufacturing is far more capital intensive than services.
The service package is the major output of the development
process.
The service process and service product can be developed
independently.
You are a consultant called in to estimate the costs after
the employees learn how to do a job more efficiently by repetition of new
product. You find a company can produce a product the first time at a cost of
$5,000. If their 90 percent learning curve allows them to reduce their costs on
each unit, what is the total cost of producing 100 units of the new product?
$250,687
$290,700
$390,000
$500,000
The ability to rapidly and inexpensively switch production
from one product to another enables what are sometimes referred to as:
Economies of scale
Economies of shape
Economies of scope
Economies of size
17
What is a work breakdown structure?
A definition of the hierarchy of project tasks, subtasks,
and work packages
A depiction of the activities making up a project
A list of the activities making up the higher levels of the
project
A Gantt chart
In development of an operations and supply chain strategy,
which of the following may be an important product-specific criteria to
consider?
Focus
Production lot size
Learning curve
Supplier after-sale support
19
For which of the following should we use an R-chart to
monitor process quality?
Deciding whether an airliner has sufficient fuel for its
trip
Weighing trucks at a highway inspection station to determine
if they are overloaded
Determining whether vehicles from a motor pool will run
Student grades measured from 1 to 100
If a firm produced a standard item with relatively stable
demand, the smoothing constant alpha (reaction rate to differences) used in an
exponential smoothing forecasting model would tend to be in which of the
following ranges?
20 to 80 percent
20 to 50 percent
60 to 120 percent
5 to 10 percent
Which of the following is one of Dr. Eli Goldratt’s rules of
production scheduling for optimized production technology?
Utilization and activation of a resource are not the same
Balance the capacities, not the flows
Do not allow bottlenecks to govern the flow of the line
An hour lost at a bottleneck saves an hour for the entire
system
Which of the following is a reason that firms must develop
more new products than ever?
They are replacing old customers with new ones
Commitments to joint venture partners
Product life cycles are shorter
To amortize heavy investments in development labs
Assuming no safety stock, what is the reorder point (R)
given an average daily demand of 78 units and a lead time of 3 days?
234
26
78
421
Capacity planning that involves hiring, layoffs, some new
tooling, minor equipment purchases, and subcontracting is considered as which
one of the following planning horizons?
Intermediate range
Short range
Long range
Current
25
Which of the following is an alternative possible service
encounter included in the service-system design matrix?
Internet
Face-to-face distance
Questionnaire response
Automated teller (ATM)
A major competitive dimension that forms a company’s
strategic operational competitive position in their strategic planning is which
of the following?
Focus
Automation
Cost or price
Straddling
Which of the following is a measure of operations and supply
management efficiency used by Wall Street?
Receivable turnover
Earnings per share growth
Dividend payout ratio
Current ratio
The objectives of work center scheduling include which of
the following?
Minimizing setup costs
Following all the priority rules
Avoiding tradeoffs
Providing variety to workforce
29
The Pareto principle is best applied to which of the following
inventory systems?
Fixed-order quantity
EOQ
ABC classification
Fixed-time-period
The centroid method for plant location uses which of the
following data?
Correlation matrix of existing facilities
Transport times between facilities
Volume of goods to be shipped between existing points
Inbound transportation costs
