Ops 571 final exam guide 2018

1. 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

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?

Inter-functional analysis

Order qualifying

Order winning

Straddling

Operations capability analysis

3. Which of the following is a total measure of productivity?

Output/(Labor + Capital + Energy)

Output/Labor

All of these

Output/Materials

Output/Inputs

4. 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

5. 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

6. Which of the following is a major factor 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 to manufactured goods.

The service package is the major output of the development process.

7. The customer order decoupling point determines the position of what in the supply chain?

Orders

Transportation facilities

Inventory

Customers

Manufacturing facilities

8. 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

9. 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

10. 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.

11. 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

12. 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

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 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?

94

68

42

47

89

14. 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

15. 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

16. 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

17. 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

18. 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.

Freeze windows.

Use quality circles.

19. 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.

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?

Pure project

PERT

Task force

Functional project

Matrix project

21. 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 into the work that produces the information.

Link parallel activities instead of integrating their results.

Organize around outcomes not tasks.

22. Which of the following forecasting methodologies is considered a qualitative forecasting technique?

Simple moving average

Market research

Exponential smoothing

Linear regression

Multiple regression

23. 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

24. 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

25. 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

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?

133 percent

25 percent

100 units per hour

125 percent

75 percent

27. 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

28. 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.

29. Very few products are moved without at least part of their journey being by which mode of transportation?

Rail

Highway

Pipeline

Water

Air

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?

Responsive

Efficient

Agile

Risk hedging

Forward looking