Test Bank for Operations and Supply Chain Management 16th Edition Jacobs.-1 by ACADEMIAMILL

Test Bank for Operations and Supply Chain Management 16th Edition by Jacobs

TABLE OF CONTENTS Chapter 1: Introduction Chapter 2: Strategy Chapter 3: Design of Products and Services Chapter 4: Projects Chapter 5: Strategic Capacity Management Chapter 6: Learning Curves Chapter 7: Manufacturing Processes Chapter 8: Facility Layout Chapter 9: Service Processes Chapter 10: Waiting Line Analysis and Simulation Chapter 11: Process Design and Analysis Chapter 12: Quality Management Chapter 13: Statistical Quality Control Chapter 14: Lean Supply Chains Chapter 15: Logistics and Distribution Management Chapter 16: Global Sourcing and Procurement Chapter 17: The Internet of Things and ERP Chapter 18: Forecasting Chapter 19: Sales and Operations Planning Chapter 20: Inventory Management Chapter 21: Material Requirements Planning Chapter 22: Work center Scheduling

F. ROBERT JACOBS, 2024

Operations and Supply Chain Management 17th Edition Jacobs Test Bank 1) One reason for studying operations and supply chain management (OSCM) is which of the following? A) OSCM is essential for understanding organizational behavior. B) Most business graduates do OSCM work regardless of their job title. C) All managers should understand the basic principles that guide the design of transformation processes. D) E)

OSCM is a required course in all business degree programs. OSCM is the most rigorous business discipline.

The goods-services continuum consists of which set of the following categories?

A) B) C)

No goods, some goods, even mix, some service, no service Pure goods, core goods, core services, pure services No service, some service, good service, excellent

D) E)

Self-service, help desk service, face-toface service, service-with- a-smile None of these choices are correct

service

Which of the following are defined as core goods?

A) B) C)

Chemicals Airlines Data storage systems

D) E)

Hotels None of these choices are correct

Which of the following are not listed in the text as jobs in OSCM?

A) B) C) D) E)

Department store manager Project manager Hospital administrator Data center manager Call center manager

F. ROBERT JACOBS, 2024

Which of the following is not a characteristic that distinguishes services from goods?

A) B) C) D) E)

Service jobs are unskilled. A service is intangible. Services are perishable. Services are heterogeneous. None of these choices are correct

6) Which of the following is not a way that operations and supply processes are categorized?

A) B) C) D) E)

Planning Return Delivery Selecting Making

7) One of the "package of features" that make up a service is:

A) B) C) D) E)

appearance facilitating goods packaging cost implied use

8) Which of the following is not a measure of operations and supply chain management efficiency used by Wall Street? A) B) C) D)

Inventory turnover Revenue per employee Receivable turnover Earnings per share

Asset turnover

9) Which of the following is a measure of operations and supply management efficiency used by Wall Street? A) B) C) D) E)

Dividend payout ratio Current ratio Receivable turnover Earnings per share growth Financial leverage

10) will

All other things remaining the same, if the sales revenue increases, asset turnover ratio

A) B) C)

increase. decrease. stay the same. F. ROBERT JACOBS, 2024

D) E)

may increase or decrease. there is no way to tell for sure.

11)

Inventory turnover measures:

A) B) C) D) E)

the efficiency in turning inventory into sales. liquidity. the speed of receivables collection. liquidity and the efficiency in turning inventory into sales. none of the these.

12)

The correct order in the good-services continuum is goods.

A) B) C) D) E)

pure services - core Services - core goods - pure pure goods - pure services - core services - core goods. pure goods - pure services - core goods - core services. pure goods - core goods - core services - pure services. core goods - core services - pure goods - pure services.

13)

The goods-services continuum consists of which set of the following categories?

A) B) C)

No goods, some goods, even mix, some service, no service Pure goods, core goods, core services, pure services No service, some service, good service, excellent

D) E)

Self-service, help desk service, face-toface service, service-with- a-smile None of these choices are correct service

14)

consists of the processes needed to operate an existing supply chain strategically.

A) B)

Planning Sourcing

C) D) E)

Making Delivering Returning

15) involves the selection of suppliers that will deliver the goods and services needed to create the firm’s product.

A) B) C) D) E)

Planning Sourcing Making Delivering Returning

16)

is where the major product is produced or the service provided.

F. ROBERT JACOBS, 2024

A) B) C) D) E)

Planning Sourcing Making Delivering Returning

17) is where carriers are picked to move products to warehouses and customers, coordinate and schedule the movement of goods and information through the supply network, develop and operate a network of warehouses, and run the information systems. A) B) C) D) E)

Planning Sourcing Making Delivering Returning

18) involves processes for receiving worn-out, defective, and excess products back from customers and support for customers who have problems with delivered products.

A) B) C) D) E)

Planning Sourcing Making Delivering Returning

19) Which of the following is not a “Core Service”? A) B) C) D)

Hotels Airlines Internet service providers Universities

20) What is the term that emphasizes how a factory’s capabilities could be used strategically to gain advantage over a competing company?

A) B) C)

Manufacturing strategy Just-in-time Total quality control

D) E)

Lean manufacturing Total quality management

F. ROBERT JACOBS, 2024

21) This philosophy is an integrated set of activities designed to achieve high-volume production using minimal inventories of parts that arrive exactly when they are needed.

A) B) C)

Manufacturing strategy Just-in-time Total quality control

D) E)

Lean manufacturing Total quality management

22)

This concept aggressively seeks to eliminate causes of production defects.

A) B) C)

Manufacturing strategy Just-in-time Total quality control

D) E)

Lean manufacturing Total quality management

23) This philosophy seeks to achieve high customer service with minimum levels of inventory investment. D) Lean A) Manufacturing strategy B) Just-in-time C) Total quality control

manufacturing E) Total quality management

24) What is known as managing the entire organization so it excels in all dimensions of products and services important to the customer?

A) B) C)

Manufacturing strategy Just-in-time Total quality control

Lean manufacturing F. ROBERT JACOBS, 2024

Total quality management

25)

Efficiency means doing the right things to create the most value for the company.

⊚

true

⊚

false

26)

Effectiveness means doing the right things to create the most value for the company.

⊚

true

⊚

false

27) A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms, we could refer to this doctor as being efficient but not effective. ⊚

true

⊚

false

28)

A worker can be efficient without being effective.

⊚

true

⊚

false

29)

A process can be effective without being efficient.

⊚

true

⊚

false

30) Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services. ⊚

true

⊚

false

31) The term "value" refers to the relationship between quality and the price paid by the consumer. F. ROBERT JACOBS, 2024

⊚

true

⊚

false

32) Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict between the two goals.

⊚

true

⊚

false

33) Central to the concept of operations strategy are the notions of operations focus and trade-offs. ⊚

true

⊚

false

34) OSCM is concerned with management of the trickiest parts of the system that produces a good or delivers a service. ⊚

true

⊚

false

35)

OSCM is a functional field of business with clear line management responsibilities.

⊚

true

⊚

false

36) The supply network can be thought of as a pipeline through which cash, material, and information flow. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

https://www.stuvia.com/user/AnswersCOM 37)

Supply networks cannot be constructed for every product or service.

⊚

true

⊚

false

38) "Operations" refers to manufacturing and service processes used to transform resources employed by a firm ⊚

true

⊚

false

39) "Supply chain" refers to processes that move information and material to and from the manufacturing and ⊚

true

⊚

false

40)

"Supply chain" includes only inbound freight and inventory.

⊚

true

⊚

false

41) It is critical that a sustainable strategy meet the needs of shareholders and employees first, and then focus on into products desired by customers.

service processes of the firm.

F. ROBERT JACOBS, 2024

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preserving the environment.

⊚

true

⊚

false

42) Planning is where a firm must determine how anticipated demand will be met with available resources. ⊚

true

⊚

false

43) Although planning involves determining how the various supply chain processes (sourcing, making, delivering, and returning) will be met, planning itself is not considered a supply chain process. ⊚

true

⊚

false

44) The supply chain processes mentioned in the textbook are planning, sourcing, delivering, and returning. ⊚

true

⊚

false

45) All managers should understand the basic principles that guide the design of transformation processes. ⊚

true

⊚

false

46) Operations and supply management changes constantly because of the dynamic nature of competing in global business and the constant evolution of information technology. ⊚

true

⊚

false F. ROBERT JACOBS, 2024

1 1

47)

Internet technology has made the sharing of reliable real-time information expensive.

⊚

true

⊚

false

48) Capturing information directly from the source through such systems as point-of-sale, radio-frequency identification tags, bar-code scanners, and automatic ⊚ true ⊚ false

49) Use of systems like point-of-sale, radio-frequency identification tags, bar-code scanners, and automatic recognition has made it more difficult to understand what all the information is saying. ⊚

true

⊚

false

recognition has had little impact on operations and supply chain management.

50) Operations and supply chain processes can be conveniently categorized as planning, sourcing, making, and delivering. ⊚

true

⊚

false

51) A major aspect of planning involves developing a set of metrics to monitor the supply chain. ⊚

true

⊚

false

52) Returning involves processes for receiving worn-out, defective, and excess products back from customers but does not involve support for customers who have problems with the product. ⊚

true

F. ROBERT JACOBS, 2024

1 2

⊚

false

53) Delivering is not considered in supply chain analysis when outside carriers are contracted to move products to customers. ⊚

true

⊚

false

54)

Services are intangible processes that cannot be weighed or measured.

⊚

true

⊚

false

55)

Service innovations can be patented.

⊚

true

⊚

false

56)

Services are homogeneous.

⊚

true

⊚

false

57)

Services are defined and evaluated as a package of features that affect the five senses.

⊚

true

⊚

false

58)

Automobiles and appliances are classified as "pure goods."

⊚

true

59)

Core service providers integrate tangible goods into their product.

⊚

false

F. ROBERT JACOBS, 2024

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⊚

true

⊚

false

60) "Product-service bundling" refers to a company building service activities into its product offerings for its customers. ⊚

true

⊚

false

61) In contrast to careers in finance and marketing, careers in OSCM involve hands-on involvement with people and processes. ⊚

true

⊚

false

62)

A supply chain manager is an OSCM job while a purchasing manager is not.

⊚

true

⊚

false

63) Just-in-time (JIT) production was a major breakthrough in manufacturing philosophy pioneered by the Japanese.

⊚

true

⊚

false

64)

Lean manufacturing refers to just-in-time production coupled with total quality control.

⊚

true

⊚

false

65) The Baldrige National Quality Award was started under the direction of the National Institute of Standards and Technology. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

1 4

66) The approach that advocates making revolutionary changes as opposed to evolutionary changes is called "creation theory." ⊚

true

⊚

false

67) The approach that advocates making revolutionary changes as opposed to evolutionary changes is called ⊚

true

⊚

false

"business process reengineering."

68) Business process reengineering, which seeks revolutionary change, is contrasted with total quality management which commonly advocates incremental change. ⊚

true

⊚

false

69) The "triple bottom line" relates to the economic, employee, and environmental impact of a firm's strategy. ⊚

true

⊚

false

70)

Sustainability is the ability to maintain profits in a system.

⊚

true

⊚

false

71) "Green belt" programs are coordinated public works projects aimed a placing an environmentally friendly zone around major cities. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

1 5

72) Green and black belt programs teach six-sigma quality tools to managers at many corporations.

⊚

true

⊚

false

73) The central idea of supply chain management is to apply a total system approach to managing the flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customer. ⊚

true

⊚

false

74) The term "electronic commerce" refers to the buying and selling of electronic products and devices. ⊚

true

⊚

false

75) The term "electronic commerce" refers to the use of the Internet as an essential element of business activity. ⊚

true

⊚

false

76) "Business analytics" involves the analysis of data through a unique combination of linear programming, game theory, and queuing theory to better solve business problems. ⊚

true

⊚

false

77) The mathematical results of Business Analytics are used to automate decision making and eliminate the decision maker. ⊚

true

⊚

false

78)

Services cannot be stored. F. ROBERT JACOBS, 2024

1 6

⊚

true

⊚

false

79)

Service does not require interaction with the customer.

⊚

true

⊚

false

Answer Key

Test name: Chapter 01 Test Bank

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19)

C B C D A D B D C A D D B A B C D E D

20)

21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33)

B C D E FALSE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE F. ROBERT JACOBS, 2024

1 7

34) 35) 36) 37) 38) 39) 40)

FALSE TRUE FALSE FALSE TRUE TRUE FALSE

41)

FALSE

42) 43) 44) 45) 46) 47) 48) 49) 50) 51) 52) 53) 54) 55) 56) 57) 58) 59) 60) 61)

TRUE FALSE FALSE TRUE TRUE FALSE FALSE FALSE FALSE TRUE FALSE FALSE TRUE FALSE FALSE TRUE FALSE TRUE TRUE TRUE

62)

FALSE

63) 64) 65) 66) 67) 68) 69) 70) 71) 72) 73) 74) 75) 76) 77) 78) 79)

TRUE TRUE TRUE FALSE TRUE TRUE TRUE FALSE FALSE TRUE TRUE FALSE TRUE FALSE FALSE TRUE FALSE F. ROBERT JACOBS, 2024

1 8

Student name: 1) Which of the following is not a major strategic operational competitive dimension that forms a company's competitive position?

A) B) C)

Cost or price Delivery speed Delivery reliability

D) E)

Management acumen Coping with changes in demand

2) A major competitive dimension that forms a company's strategic operational competitive position in their A) B) C)

Cost or price Focus Automation

strategic planning is which of the following? D) Straddling E) Activity- system mapping

3) When developing an operations and supply chain strategy, which of the following is an important productspecific criterion to consider?

A) B)

Technical liaison and support Learning curve

size D)

Production lot

Total quality

Competitor's product performance

management

F. ROBERT JACOBS, 2024

1 9

https://www.stuvia.com/user/AnswersCOM

4) In development of an operations and supply chain strategy, which of the following may be an important productA) B) C)

Focus Production lot size Supplier after-sale support

specific criteria to consider? D) Learning

curve

5) What is the process called where a company seeks to match the benefits of a successful position while maintaining its existing position in offering customers a variety of differing services?

A) B) C)

Operations capability analysis Straddling Order qualifying

D) E)

Order winning Inter- functional analysis

An activity-system map is which of the following?

A network guide to route airlines

where

A timeline

B) C) D)

A listing of activities that make up a project A diagram that shows how a company's strategy is delivered to customers A facility layout schematic noting what is done

displaying major planned events

F. ROBERT JACOBS, 2024

2 0

Which of the following is a partial measure of productivity?

A) B)

Output ÷ Materials Output ÷ (Labor + Capital + Energy)

Inputs

Output ÷

All of these

Output ÷ All resources used choices are correct

A) B)

Output ÷ Materials Output ÷ (Labor + Capital + Energy)

Inputs D)

Output ÷

All of these

Output ÷ All resources used choices are correct

Which of the following is a total measure of productivity?

A) B)

Output ÷ Materials Output ÷ (Labor + Capital + Energy)

Inputs

Output ÷ F. ROBERT JACOBS, 2024

2 1

All of these

Output ÷ Labor

choices are correct

10) If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, what kind of A) B) C)

partial measure multifactor measure total measure

productivity measure could you use to compute productivity? D) global measure E) All of these choices are correct

11) If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, and the total materials used were 425 units, what kind of productivity measure(s) could you use to compute productivity?

A) B) C)

Partial measure Multifactor measure Total measure

D) E)

Partial measure and Multifactor measure Multifactor

measure and Total measure

12) 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?

A) B)

D) 0.411 1.000 E) None of 1.428 thesechoices are correct F. ROBERT JACOBS, 2024

2 2

0.700

13) The total output from a production system in one day is 900 units and the total labor necessary to produce the 900 units is 900 hours. Using the appropriate productivity measure, what is the resulting productivity ratio?

A) E) B) C)

1.000 D) 0.411 None of 1.428 thesechoices are correct 0.700

14) Larry's Auto Body Repair Shop had revenues that averaged $60,000 per week in April and $50,000 per week in May. During both months, the shop employed six full-time (40 hours ÷ week) workers. In April the firm also had four part-time workers working 25 hours per week, but in May there were only two part-time workers and they only worked A)

−20.00%

−15.82%

10 hours per week. What is the percentage change in labor productivity from April to May for Larry's Auto Body Repair? C) D)

8.98% 2.30%

−25.00%

A) B) C)

D) 27,800 3,200 E) Not enough 11,905 information to calculate 19,533

16) A process has a total measure of productivity of 1.41 and total inputs of 9,050. What was the output?

A) B) C)

3,750 12,761 18,104

D) E)

21,850 Not enough information to calculate

F. ROBERT JACOBS, 2024

2 3

17)

Various financial data for SunPath Manufacturing for 2019 and 2020 follow.

2019

2020

Capital Employed Other What is the percentage change in SunPath's total productivity measure between 2019 and 2020? C)

−0.53

D) E)

2.88 10.39

What is the percentage change in the energy partial productivity measure for SunPath between 2019 and 2020?

−9.22%

2.33%

−0.53%

D) E)

2.88% 22.2%

19)

Various financial data for SunPath Manufacturing for 2019 and 2020 follow.

2019

2020

Capital Employed Other 0 0 Raw Materials 45,00 51,00 What is the percentage 0 0 change in the labor partial Energy10,00 9,000 productivity measure for 0 SunPath between 2019 and 2020? C)

−0.53

−9.22 D)

2.88

2.33

10.39

F. ROBERT JACOBS, 2024

2 4

20) 2019

Various financial data for SunPath Manufacturing for 2019 and 2020 follow. 2020 Capital Employed Other

What is the percentage change in the multifactor labor and raw materials productivity measure for SunPath between 2019 and 2020? A)

−9.22 C)

−0.53

−2.88 B)

2.33

10.39

21) If the employees of a firm attend a training program, then the time to assemble one unit is reduced by 10%. The training program will

A) B) C)

increase the labor productivity only. increase the multifactor productivity only. increase both labor and multifactor productivity.

D) E)

decrease capital productivity. have no effect on productivity.

22) If the material usage per unit of final product decreases to half of the current usage, then the firm will double the material productivity.increase the multifactor productivity.decrease capital productivity.have no effect on productivity.

A) I B) II C) D) III E) IV

both I and II

23) The nature of risks lends them to a three-step risk management process that can be applied to situations where disruptions are possible. There are three steps to the process. A)

Identify the sources of potential disruptions.

F. ROBERT JACOBS, 2024

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Which of the following is not one of those steps? B)

Insure to protect against the risks.

C) D)

Assess the potential impact of the risk. Develop plans to mitigate the risk.

24) An operations and supply chain strategy must be integrated with the organization's corporate strategy. ⊚

true

⊚

false

25)

Operations effectiveness relates to the profitability of the core business processes.

⊚

true

⊚

false

26) Operations and supply chain strategy can be viewed as part of a planning process that coordinates operational goals ⊚

true

⊚

false

27) There are two characteristics of a product or service that define quality: design quality and cost. with those of the larger organization.

⊚

true

⊚

false

F. ROBERT JACOBS, 2024

2 6

28) The corporate strategy is operationalized through a set of operations and supply chain decisions. ⊚

true

⊚

false

29) An operation can excel simultaneously on all competitive dimensions. This is what makes a truly great operations company. ⊚

true

⊚

false

30) Straddling occurs when activities are incompatible so that more of one thing necessitates less of another. ⊚

true

⊚

false

31) One of the competitive dimensions that forms the competitive position of a company when planning its strategies is cost. ⊚

true

⊚

false

32)

One of the competitive dimensions

that forms the competitive position of a company when planning its strategies is delivery speed. ⊚

true

⊚

false

33) One of the competitive dimensions that forms the competitive position of a company when planning its ⊚

true

⊚

false F. ROBERT JACOBS, 2024

2 7

34) The process where a company seeks to match the benefits of a successful position while maintaining its existing position by adding new features, services, and technologies ⊚

true

⊚

false

35) The process where a company seeks to match the benefits of a successful position while maintaining its existing position by adding new features, services, and technologies ⊚

true

⊚

false

36) By following a straddling strategy, firms can broaden their capabilities and effectively compete with more focused strategies is making the best trade-off.

into its current portfolio is called flexibility.

into its current portfolio is called straddling.

firms in markets requiring low cost for success. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

2 8

37) An order winner is a set of criteria that differentiates the products or services of one firm from another. ⊚

true

⊚

false

38) An order winner is a set of screening criteria that permits a firm's products to be considered as possible candidates for purchase. ⊚

true

⊚

false

39) An order qualifier is a set of screening criteria that permits a firm's products to be considered as possible candidates for purchase. ⊚

true

⊚

false

40) Activity-system maps show how a company's strategy is delivered through a set of tailored activities. ⊚

true

⊚

false

41) Activity-system maps are useful in understanding how well a system of activities fits the overall company's strategy. ⊚

true

⊚

false

42) Operations risk is the likelihood of a disruption that would impact the ability of a company to continuously supply products or services. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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43) Risk mapping involves assessment of the probability or relative frequency of an event against the aggregate severity of the loss. ⊚

true

⊚

false

44)

Activity-system maps depict the geographic reach of a company's business strategies.

⊚

true

⊚

false

45) An operations strategy must resist change because of the long-term nature of equipment and personnel investments.

⊚

true

⊚

false

46) Operations and supply strategy can be viewed as part of a planning process that coordinates operational goals with ⊚

true

⊚

false

47) The job of operations and supply chain strategy is to deliver the most feature-rich, highest quality product at the lowest price within specified parameters of delivery time and customization. ⊚

true

⊚

false

48)

Productivity is a relative measure.

⊚

true

⊚

false

49) In a partial measure of productivity, the denominator of the ratio would include all resources used or all inputs. F. ROBERT JACOBS, 2024

3 0

those of the larger organization.

⊚

true

⊚

false

50) In a multifactor measure of productivity, the denominator of the ratio would include all resources used or all inputs. ⊚

true

⊚

false

51) The triple bottom line considers evaluating the firm against social, economic, and environmental criteria. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

3 1

52) Sustainability means meeting a firm's current needs without excessively compromising the ability of future ⊚

true

⊚

false

53) The social impact of the triple bottom line concept pertains to fair and beneficial business practices toward labor, the community, and the region in which a firm conducts its business. generations to meet their own needs.

⊚

true

⊚

false

54) A firm's business practices toward its labor force pertain mainly to the economic aspect of the triple bottom line concept. ⊚

true

⊚

false

55) According to the economic aspect of the triple bottom line concept, the firm is required to compensate shareholders by paying dividends and growing the value of their common ⊚ true ⊚ false

F. ROBERT JACOBS, 2024

3 2

56) Within a sustainability framework, the economic dimension of the triple bottom line concept goes beyond just profit for the firm but also provides lasting economic benefit to society. ⊚

true

⊚

false

stock faster than their competitors.

57) Within a sustainability framework, the environmental dimension of the triple bottom line concept has to do with labor, the community, and the region in which a firm conducts its business. ⊚

true

⊚

false

Answer Key

Test name: Chapter 02 Test Bank

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19)

D A A C B C A B D A D B A C B B D E B

20)

21) 22) 23) 24)

C C B TRUE F. ROBERT JACOBS, 2024

3 3

25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) 40)

FALSE TRUE FALSE FALSE FALSE FALSE TRUE TRUE FALSE FALSE TRUE FALSE TRUE FALSE TRUE TRUE

41)

TRUE

42) 43) 44) 45) 46) 47) 48) 49) 50) 51) 52) 53) 54) 55) 56) 57)

FALSE TRUE FALSE FALSE TRUE FALSE TRUE FALSE FALSE TRUE FALSE TRUE FALSE FALSE TRUE FALSE

Student name: 1) Which of the following is not a typical phases of product development?

A) B) C)

Concept development Value engineering System-level design

D) Testing and refinement E) Production/ramp-up

F. ROBERT JACOBS, 2024

3 4

Which of the following is a characteristic of concurrent engineering?

A) B) C) D)

Integrated computer-assisted design Using automated guided vehicles Separate development teams working at once Having an excellent forecasting system

The design- build-test cycle

3) Which of the following is primarily used to help design products that will connect product attributes with customer desires?

A) B) C)

Phase 0: Planning House of quality matrix Value analysis/value engineering

D) Concurrent engineering E) System-level design

4) Design for manufacturing and assembly delivers product improvements by emphasizing which of the following?

Reducing product quality during the assembly

process

Simplification

of the product by reducing the number of separate parts C) Reducing equipment in the production process D) Designing products so they can be manufactured by a virtual factory E)

Designing products that customers will want

5) Which of the following is a time-to-market performance measure used in judging product development performance?

F. ROBERT JACOBS, 2024

3 5

A) B) C)

Frequency of new-product introductions Product reliability Customer loyalty

D) E)

Yield Value analysis

6) What dimension of competitiveness does time-to- market performance in product design and process selection affect?

A) B)

Engineering hours per project The cost of ongoing service

design D)

Aesthetics of

None of these

Responsiveness to customer needs choices are correct

What dimension of competitiveness does quality in product design affect?

A) B)

Engineering hours per project The cost of ongoing service

design D)

Aesthetics of

None of these

Responsiveness to customer needs choices are correct

A reason that firms must develop more new products than ever is which of the following?

Product life cycles are shorter.

labs.

F. ROBERT JACOBS, 2024

3 6

The increased

B) C) D)

Commitments to joint venture partners. They are replacing old customers with new ones. To amortize heavy investments in development

difficulty of defending patents and trade names.

9) Concept development assumes a proven technology in which variant of the generic product development process?

A) B) C)

Technology-push products Quick-build products Complex systems

D) E)

Platform products Process- intensive products

10) Similarity of projects allows for a streamlined and highly structured development process in which variant of the A) B) C)

Technology-push products Customized products Complex systems

generic product development process? D) Quick-build products E) Process- intensive products

11) Sensitivity analysis of the base-case financial model is a useful tool for which of the following reasons?

To determine how long the development process can profitably last

To understand how many technical people are needed to make the

F. ROBERT JACOBS, 2024

3 7

project a success C) To help understand the basic trade-offs of resources committed and cash received D) To identify the necessary product launch date E)

To set marketing and sales budgets

12)

Advocates of financial modeling of product design projects argue that:

A) financial analysis focuses on measurable quantities only. B) financial analysis brings discipline and control to the product development process. C) sufficiently rigorous financial analysis can accurately forecast the product's profit potential. D) E)

financial analysis is as solid as the assumptions that go into the model. financial analysis nurtures innovation and creativity.

13) System integration and validation are an important step in which variant of the generic product development process?

A) B) C)

Technology-push products Customized products Complex systems

D) E)

Quick-build products Process- intensive products

14) Consumer electronics is an example of a product developed in which variant of the generic product development process?

A) B) C)

Technology-push products Customized products Platform products

D) E)

Quick-build products Process- intensive products

F. ROBERT JACOBS, 2024

3 8

15)

The most basic categories of cash flow for a typical new product do not include:

A) B) C)

Depreciation Ramp-up cost Development cost

D) E)

Sales revenue Marketing cost

16) Economic analysis of product development projects is useful in which of the following circumstances?

A) B) C)

Factory location Distribution decisions Go/no-go milestones

D) E)

Demand estimation Pricing

17) Economic analysis of product development projects must evaluate which of the following?

A) B) C)

Planned profitability of the product Expected market share to be attained Net present value of profits

D) E)

Timing and amount of net cash flow Demand elasticity of the product

18) D) A) units. B) C)

Quality function deployment (QFD): is a place is a manufacturing function aimed at lowering cost by reducing the portion of rejected fills the house of quality matrix with the designer's aspirations for the product. starts with studying and listening to customers.

where the quality assurance function is housed. E) is another term for value engineering. F. ROBERT JACOBS, 2024

3 9

19)

The aim of quality function deployment (QFD) is:

A) B) C) D)

to facilitate house of quality analysis. to provide value analysis/value engineering input. to integrate design for manufacturing and assembly (DFMA). to facilitate better cooperation between business

functions. E) to get the voice of the customer into the design of a product.

20)

The purpose of value analysis/value engineering (VA/VE) is to:

A) B) C)

simplify products and processes improve the value that customers find in existing products relate the customer's needs to technical specifications

D) E)

meet budgets and improve the results of financial models facilitate better cooperation between business functions

21)

Which of the following is not a typical phase of product development?

A) B) C)

Concept development Planning System-level design

D) Early market feedback E) Production/ramp-up

22) A)

Performance measures discussed for development projects do not include frequency of

F. ROBERT JACOBS, 2024

4 0

new product introductions. B) yield. C) percentage sales coming from very old products. D) cost of materials and tooling. E) conformance —reliability in use.

23) A core competency has three characteristics. Which of the following is not one of those characteristics?

A) B) C)

It provides potential access to a wide variety of markets. It provides a low cost. It increases perceived customer benefit.

It is hard for competitors to imitate.

24) In this phase, the needs of the target market are identified, alternative product concepts are generated and evaluated, and one or more concepts are selected for further development and testing.

A) B) C)

Phase 1: Concept development Phase 2: System-level design Phase 3: Detail design

D) E)

Phase 4: Testing and refinement Phase 5: Production ramp-up

25) This phase includes the definition of the product architecture and the decomposition of the product into A) B) C)

Phase 1: Concept development Phase 2: System-level design Phase 3: Detail design

subsystems and components. D) Phase 4: Testing and refinement E) Phase 5: Production ramp-up

F. ROBERT JACOBS, 2024

4 1

26) This phase includes the complete specification of the geometry, materials, and tolerances of all the unique parts in the product and the identification of all the standard parts to A) B) C)

Phase 1: Concept development Phase 2: System-level design Phase 3: Detail design

be purchased from suppliers. D) E)

Phase 4: Testing and refinement Phase 5: Production ramp-up

27) This phase involves the construction and evaluation of multiple preproduction versions of the product.

A) B) C)

Phase 1: Concept development Phase 2: System-level design Phase 3: Detail design

D) E)

Phase 4: Testing and refinement Phase 5: Production ramp-up

28)

In this phase, the product is made using the intended production system.

A) B) C)

Phase 1: Concept development Phase 2: System-level design Phase 3: Detail design

D) E)

Phase 4: Testing and refinement Phase 5: Production ramp-up

29) An important issue when developing a new service or changing an existing one is the question of how different the new service is compared to the current services offered by the firm. Which of the following is not a general factor to A) B)

Similarity to current services Similarity of expected customers to current

consider when determining this?

F. ROBERT JACOBS, 2024

4 2

customers

C) D)

Similarity to current processes Financial justification

30)

The inherent value of the product in the marketplace is:

A) B) C)

conformance quality. overall quality. customer quality.

D) E)

meaningful quality. design quality.

31)

The degree to which the product or service design specifications are met is:

A) B) C)

conformance quality. overall quality. customer quality.

D) E)

meaningful quality. design quality.

32)

Concept development is one of the typical phases of product development.

⊚

true

⊚

false

33) Early prototypes of a new product, using the same geometry and material processes as the production versions, are usually constructed during the concept development phase of the product development process.

⊚

true

⊚

false F. ROBERT JACOBS, 2024

4 3

34) A key decision point in the generic development process during "Phase 4: Testing and Refinement" is concept approval. ⊚

true

⊚

false

35) A key decision point in the generic development process during "Phase 1: Concept Development" is project approval. ⊚

true

⊚

false

36) The generic development process outlined in the textbook is followed by many, if not most, of the firms in the Fortune 500. ⊚

true

⊚

false

37) Target customers are specified during "Phase 0: Planning" of the generic product development process. ⊚

true

⊚

false

38)

The main purpose of concurrent engineering is to improve product quality.

⊚

true

⊚

false

39) Quality function deployment is an engineering analysis whose purpose is to simplify products and processes. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

4 4

40) Quality function deployment involves listening to customers to determine the characteristics of a superior product. ⊚

true

⊚

false

41) Designing a new product for aesthetics and for the user is generally termed industrial design. ⊚

true

⊚

false

42) One of the methodologies that can aid in designing a new product for customers is a house of quality matrix. ⊚

true

⊚

false

43) Value analysis/value engineering has as its objective to increase product quality and reduce costs. ⊚

true

⊚

false

44)

DFMA stands for design for manufacturing and assembly.

⊚

true

⊚

false

45) In a concurrent engineering approach to product design and development, an integration team ensures that various parts of the product are compatible with the needs of the target customer. ⊚

true

⊚

false

46)

A key tool of a quality function deployment team is the house of quality matrix.

F. ROBERT JACOBS, 2024

4 5

⊚

true

⊚

false

47)

A contract manufacturer is an

organization capable of manufacturing and/or purchasing all of the components needed to produce a finished product or device. ⊚

true

⊚

false

48) Specialized design firms tend to have highly developed processes that support the needs of particular industries. ⊚

true

⊚

false

49)

Core competencies are those things that everyone in the firm must be able to do well.

⊚

true

⊚

false

50)

A competency is not core if it is easy for competitors to imitate.

⊚

true

⊚

false

51)

One goal of having a core competency is to do something better than anyone else.

⊚

true

⊚

false

52) The conclusion of the product development process is when the product is withdrawn from the market. ⊚

true

⊚

false F. ROBERT JACOBS, 2024

4 6

53) In the generic product development process, Phase 2 (system-level design) begins with corporate strategy and ⊚

true

⊚

false

54) In the generic product development process, collecting customer needs is accomplished during Phase 0 (planning). ⊚

true

⊚

false

55) The "house of quality" matrix is a technique that relates customer requirements to concrete operating or engineering goals. incorporates market objectives.

⊚

true

⊚

false

F. ROBERT JACOBS, 2024

4 7

56) One of the major benefits of DFMA is that products are designed that customers will want. ⊚

true

⊚

false

57) Incorporation of environmental considerations in the design and development of products or services is called ecodesign. ⊚

true

⊚

false

58) Ecodesign replaces one or more of the other requirements considered in the design process. ⊚

true

⊚

false

59) Because ecodesigned products are innovative and have better environmental performance, they can be of a slightly ⊚

true

⊚

false

lesser quality than the market standard.

60) The ecodesign approach focuses exclusively on the design and commercial launch phases of the product's life cycle.

⊚

true

⊚

false

61)

Designing a service is very similar to designing a product.

⊚

true

⊚

false

F. ROBERT JACOBS, 2024

4 8

62) In determining how different a new service is compared to the current services offered by the firm, there are four things to consider. ⊚

true

⊚

false

63)

Designing a new service is costly.

⊚

true

⊚

false

64) In service design, divergence is a measure of how different a new service is from the existing services of the firm. ⊚

true

⊚

false

65) Operational design and development decisions involve deciding if the firm should go ahead with a given decision or stop now. ⊚

true

⊚

false

66) The best way to understand the financial implications of a product development project is to construct a base-case financial model. ⊚

true

⊚

false

67) Sensitivity analysis uses mathematical models to model consumer acceptance of a new product based on the features that are included. ⊚

true

⊚

false

68)

An increase in cost will result in an increase in the NPV.

⊚

true

F. ROBERT JACOBS, 2024

4 9

⊚

false

69)

Productivity is a measure of how hard workers work.

⊚

true

⊚

false

70)

DPMO measures variability.

⊚

true

⊚

false

71) Measures that relate to the reliability of the product in use are referred to as conformance quality. ⊚

true

⊚

false

72)

Ultimate value is the measure of the value of a product in the marketplace.

⊚

true

⊚

false

Answer Key Test name: Chapter 03 Test Bank

2) 3) 4) 5) 6) 7) 8)

C B B A C B A F. ROBERT JACOBS, 2024

5 0

9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) 20) 21)

D B C B C C A C D C E A D

22)

23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) 40) 41) 42)

B A B C D E B E A TRUE FALSE FALSE FALSE FALSE TRUE FALSE FALSE TRUE TRUE TRUE

43)

FALSE

44) 45) 46) 47) 48) 49) 50) 51) 52) 53) 54)

TRUE FALSE TRUE TRUE TRUE FALSE TRUE FALSE FALSE FALSE FALSE F. ROBERT JACOBS, 2024

5 1

55) 56) 57) 58) 59) 60) 61) 62) 63)

TRUE FALSE TRUE FALSE FALSE FALSE FALSE FALSE TRUE

64)

FALSE

65) 66) 67) 68) 69) 70) 71) 72)

FALSE TRUE FALSE FALSE FALSE TRUE TRUE FALSE

Student name:

A) B) C)

Job orders Sub-jobs Work packages

1) D) E)

A project can be subdivided into which of the following? Sub-paths Events and decisions

A project starts out as which of the following?

A) B) C)

A statement of work Critical path method (CPM) A series of milestones

D) E)

A Gantt chart A latest-start- time estimate

What is a work breakdown structure? F. ROBERT JACOBS, 2024

5 2

A) B) C)

A list of the activities making up the higher levels of the project A definition of the hierarchy of project tasks, subtasks, and work packages A depiction of the activities making up a project

D) E)

A Gantt chart A structure that is incompatible with the critical path method

In a Gantt chart, the horizontal axis is usually which of the following?

A) B)

Activities Cost

C) D) E)

Profit Time Milestones

Which of the following is a graphic project report used

A) B) C) D)

Project proposal Approved project plan Humphrey chart Equipment and supplies chart

Cost and performance tracking schedule

in project management?

6) An advantage of a pure project where self-contained teams work full time on a project is which of the following?

A) B) C) D)

Team members can work on several projects. Functional area is a "home" after the project is completed. There are duplicated resources. Lines of communication are shortened.

Overall organizational policies and goals can be ignored.

7) Some of the advantages of a functional project where the project is housed in a functional division include which of the following?

F. ROBERT JACOBS, 2024

5 3

A) B)

The project manager has full authority over the project. Team pride, motivation, and commitment are

D) E)

Needs of the client are secondary. None of these choices are correct

high. C)

A team member can work on several projects.

8) A series of projects that are organized in such a way that each project utilizes people from different functional areas is using which of the following organizational structures? A) Matrix project

B) C)

Integrated task force Functional project

D) E)

Pure project Cross- functional flexible team

9) You are looking at a chart that has the terms BCWS, BCWP, and AC indicating lines on the chart. What kind of chart are you looking at?

A) B) C)

Gantt chart PERT chart Bar/milestone chart

D) E)

Total program cost breakdown EVM chart

10)

PERT is an abbreviation for which of the following methodologies?

A) B) C) D)

Product evaluation, result, and treatment Programming and evaluation realization technology Program evaluation and review technique Process evaluation and review technology

It is a name, not an abbreviation for anything.

F. ROBERT JACOBS, 2024

5 4

11) 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?

A) B) C)

Pure project Task force Matrix project

project D)

Functional

PERT

12) 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?

A) B) C)

Pure project Task force Matrix project

project D)

Functional

PERT

13) A simple project listing of five activities and their respective time estimates are presented here:

Activity

Immediate Predecessor

Time in Days E

2 F. ROBERT JACOBS, 2024

5 5

A B C D

None 1 A 2 A 1 B and C

Using CPM, which activities make up the critical path?

A) B) C)

A, C, D, E A, B, D, E A, C, B, D, E

D) E)

A, D, E None of these choices are correct

14) A simple project listing of five activities, their predecessors, and their respective time estimates are presented here:

Activity Immediate Predecessor Time A None B A C A D B and C E D

in Days 3 2 1 3 4

Using CPM, what is the latest finish time for the last activity in this project (i.e., the total time to complete the project)? A) 10 days D) 8 days 12 days B) 7 days E)

9 days

15) A simple project listing of five activities, their predecessors, and their respective time estimates are presented here:

Activity

Immediate Predecessor

Time in Days E A B

None 2 A 2 F. ROBERT JACOBS, 2024

5 6

C D

A 1 B and C

Using the CPM, which activities have slack in this project? A) B)

A B

C) D) E)

C D C and E

16) A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented here: Activity Designat ion Immediat e Predeces Time in Days sor Break down both machines A None 3 Clean machine 1 B A Clean machine 2 C A

3 3

Using CPM, which activities make up the critical path?

A) B) C)

A, B, D, F, G A, C, E, F, G A, C, B, F, E

D) E)

A, D, E None of these choices are correct

17) A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented here: Activity Designat Immediat Time in machin ion e Predeces sor Days es Final test

2 F. ROBERT JACOBS, 2024

5 7

Break down both machines A

None 3

Clean machine 1 Clean machine 2 Re-set machine 1 Re-set machine 2 Re-calibrate both

B C D E F

A) D) 12 B)

13 days

9 days C) 11 days days 10 days

A A B C and

3 3 1 2 1

Using CPM, what is the latest finish time for the last activity in this project (i.e., the total time to complete the project)?

18) A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented here:

Activity Designat Immediat Time in Using CPM, which ion e Predec es Days activities have slack in this project? sor A None 3 Break down both machines B A 3 Clean machine 1 Clean machine 2 C A 3 Re-set machine 1 D B 4 Re-set machine 2 E C 2 Re-calibrate both F D and E 1 machines Final test G F 1

A) B)

A, B, C B, D

C) D) E)

Only C C, E F, G

19) For an activity in a CPM analysis, the early start time is 8 and the late start time is 10. Which of the following statements is true? F. ROBERT JACOBS, 2024

5 8

A) B) C)

The late finish is 12. The early finish is 10. The slack for this activity is 2.

D) E)

The duration of this activity is 2. The activity is on the critical path.

20) 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?

A) B) C)

The activity's late start must happen before its early start. The activity is on the critical path. The slack for this activity is 20.

D) E)

The duration of this task is zero. The duration of this task is 20.

21) A listing of immediate predecessor activities is important information in a CPM analysis for which of the following reasons?

A) B) C) D)

It specifies the relationships in the CPM network of activities. It provides useful timing information. It includes cost information. It is the probability information required in the

final step of CPM. E) None of these choices are correct

22) You have just performed a CPM analysis and have found that more than one path through the project network has A) B) C) D)

You have incorrectly performed the analysis. You have multiple critical paths. Only one path is optimal. More than one path is optimal.

zero slack values. What can you conclude? E) The project will not be completed by the desired time. F. ROBERT JACOBS, 2024

5 9

23) You have the following time and cost information for use in a time-cost CPM scheduling model. Activ Norma Crash Norma Crash Cost C 4 1 ity

l Time

Time

l Cost

A 00 B 00

$ 60 0 $ 12 00 What are the three costs per unit of time to expedite each activity?

A) B) C)

A = $300, B = $200, C = $300 A = $100, B = $200, C = $400 A = $200, B = $200, C = $200

D) A = $100, B = $400, C = $300 E) A = $200, B = $300, C = $400

24) Here are the data for a time-cost CPM scheduling model analysis. The time is in days and the costs include both direct and indirect costs. Activit Immedia Normal Crash NormalB A y te Predece Time C

Time A

Cost

ssor A None 3

B and C

What are the total time of

F. ROBERT JACOBS, 2024

6 0

this project and total normal cost?

A) B) C) D)

Total time is 13 days, total cost is $1,200. Total time is 12 days, total cost is $1,700. Total time is 11 days, total cost is $1,600. Total time is 10 days, total cost is $1,750.

Total time is 9 days, total cost is $1,700.

25) Here are the data for a time-cost CPM scheduling model analysis. The time is in days and the costs include both direct and indirect costs. Activit Immedia y te Time Predece ssor A None 3 B A 4

NormalCrash NormalD Time Cost

A) B) C) D)

Total time is 13 days, total cost is $1,500. Total time is 12 days, total cost is $2,000. Total time is 12 days, total cost is $2,300. Total time is 11 days, total cost is $1,850.

E 2 3

B and C

If you crash this project to reduce the total time by one day, what is the total time of the project and total cost?

E) Total time is 11 days, total cost is $2,350.

26) You have collected the data for a time-cost CPM scheduling model analysis. The time is in days and the project "direct costs" are given here. Activit Immedia Normal

Crash NormalCrash Cost (Dirsescotr)

y te Predece Time Time (Direct A

Cost

None

F. ROBERT JACOBS, 2024

6 1

The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days, the total indirect costs are $400; 15 days, they will be $250; 14 days, they will be $200; and 13 days, they will be $100. If you crash this project by one day,What is the total (i.e., direct and indirect) project cost?

A) B)

$2,150 $2,300

C) D) E)

$2,400 $2,450 $2,500

27) You have collected the data for a time-cost CPM scheduling model analysis. The time is in days and the project "direct costs" are given here.

Activit y Immedia Normal te Time Predece ssor Crash Time Normal Cost (Direct ) Crash Cost (Direct) A None 3 2 B A 3 3 C A 1 1 D B and C 3 2 E D 2 1 F E 3 3 G F 2 2

The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days, the total indirect costs are $400; 15 days, they will be $250; 14 days, they will be $200; and 13 days, they will be $100. At what day do we achieve the lowest total project cost (i.e., direct plus indirect costs)?

A) B)

16 days 15 days

14 days F. ROBERT JACOBS, 2024

6 2

D) E)

13 days 12 days

28) You know when you have arrived at the optimal solution in using the time-cost CPM scheduling model analysis when what happens?

costs.

A) B) C)

You have found the critical path. You have run out of crash time. You no longer have a linear relationship with

D) E)

You have reached the minimum total cost. You have run out of crash costs.

29) In CPM analysis, it is generally expected that the relationship between activity direct costs and project indirect costs will be which of the following?

A) B) C)

Positively related Optimally related Negatively related

related D) E)

Not related Fractionally

F. ROBERT JACOBS, 2024

6 3

30) D) A) B) C)

Popular project management software used in mid- sized projects is Microsoft Microsoft Word. Microsoft Primavera. Microsoft Project.

Excel. E) None of thesechoices are correct

31) You have just used the network planning model and found the critical path length is 30 days and the variance of the critical path is 25 days. The probability that the project will be completed in 33 days or less is equal to (2 decimal accuracy).

A) B)

0.73 0.55

C) D) E)

0.12 0.27 0.60

32) You have just used the network planning model and found the critical path length is 60 days and there are two critical paths. The standard deviation of the first critical path is 10 days and the s.d. of the second critical path is 15 days. A) B)

0.84 0.25

The probability that the project will be completed in 70 days or less is equal to (2 decimal accuracy). C) 0.16 D) 0.75 E) 0.66

33) You have just used the network planning model for a county road resurfacing project and found the critical path length is 40 days and the standard deviation of the critical path is 10 days. Suppose you want to pick a time (in days) within which you will complete the project with 90%

F. ROBERT JACOBS, 2024

6 4

A) B)

40 13

confidence level. What should be that time (in days and round to the nearest whole number)? C) D) E)

37 29 53

34)

A structure for organizing a project where a self-

A) B) C) D) E)

pure project modified project functional project hybrid project matrix project

contained team works full

35) In this structure, team members are assigned from the functional units of the organization. The team members remain a part of their functional units and typically are not dedicated to the project.

A) B) C)

Pure project Modified project Functional project

D) E)

Hybrid project Matrix project

36) In this structure, each project uses people from different functional areas. A dedicated project manager decides what tasks need to be performed and when, but the functional managers control which people to use.

A) B) C)

Pure project Modified project Functional project

D) E)

Hybrid project Matrix project

F. ROBERT JACOBS, 2024

6 5

37)

Which of the following is not an advantage of a pure project?

A) B) C)

The project manager has full authority over the project. Team members report to one boss. A team member can work on several projects.

D) E)

Decisions are made quickly. Team motivation is high.

38)

Which of the following is not a disadvantage of a pure project?

Needs of the client are secondary and are

responded to slowly. B) Equipment

and people are not shared across projects. C) Team members are often both physically and psychologically removed from headquarters. D) The organization falls behind in its knowledge of new technology. E)

Team members worry about life- after-project, and project termination is delayed.

39)

Which of the following is not an advantage of a functional project?

A) A team member can work on several projects. B) Technical expertise is maintained within the functional area. C) Functional specialists can advance vertically. D) A critical mass of specialized functional-area experts creates synergistic solutions to a project’s technical problems. E) Communication between functional divisions is enhanced.

40)

Which of the following is not a disadvantage of a functional project?

F. ROBERT JACOBS, 2024

6 6

A) Aspects of the project that are not directly related to the functional area get shortchanged. B) Equipment and people are not shared across projects. C) Motivation of team members is often weak. D)

Needs of the client are secondary and are responded to slowly.

41) C) A) B)

Which of the following is not an advantage of a matrix project? Duplication of The project manager has full authority over the project. Communication between functional divisions is enhanced.

resources is minimized. D) Policies of the parent organization are followed.

42)

Which of the following is not a disadvantage of a matrix project?

A) B) C)

There are two bosses. It is doomed to failure unless the PM has strong negotiating skills. Suboptimization is a danger.

Motivation of team members is often weak.

43) This is usually a written description of the objectives to be achieved, with a brief statement of the work to be done and a proposed schedule specifying the start and completion dates.

A) B) C)

Work package Work breakdown structure Project milestone

work D) E)

Task Statement of

F. ROBERT JACOBS, 2024

6 7

44) This is a further subdivision of a project. It is usually not longer than several months in duration and is performed by one group or organization.

A) B) C)

Work package Work breakdown structure Project milestone

work D) E)

Task Statement of

45) C) A) B)

A group of activities combined to be assignable to a single organizational unit is: project work package. work breakdown structure.

milestone. D) activities. E) statement of work.

46)

The hierarchy of project tasks, subtasks, and work packages is:

A) B) C)

work package. work breakdown structure. project milestone.

work. D) E)

activities. statement of

F. ROBERT JACOBS, 2024

6 8

47)

Pieces of work within a project that consume time are:

A) B) C)

work package. work breakdown structure. project milestone.

work. D) E)

activities. statement of

48)

A specific event in a project is:

A) B) C)

work package. work breakdown structure. project milestone.

work. D) E)

activities. statement of

49)

Which of the following takes the least amount of time?

A) B)

Task Subtask

C) D) E)

Milestone Work package Activity

50)

A project has four

F. ROBERT JACOBS, 2024

6 9

activities: A, B, C, and D. The amount spent on each activity to date is $22K, $14K, $12K, and $28K respectively. The planned percentages complete for the current date are 90%, 80%, 70%, and 20% respectively. The actual percentages complete for the current date are 100%, 90%, 75%, and 10% respectively. The actual cost of the work performed to date is $40K. What is the BCWS for Activity A? D)

$15.01K −

$0 − $5K

$5.01K − $10K

$10.01K − $15K

$20K

Over $20K

51) A project has four activities: A, B, C, and D. The amount spent on each activity to date is $22K, $14K, $12K, and $28K respectively. The planned percentages complete for the current date are 90%, 80%, 70%, and 20% respectively. The actual percentages complete for the current date are 100%, 90%, 75%, and 10% respectively. The actual cost of the work performed to date is $40K. What is the BCWS for Activity B? A)

$0 − $5K

$5.01K − $10K

$10.01K − $15K

$20K

F. ROBERT JACOBS, 2024

7 0

$15.01K −

Over $20K

52) A project has four activities: A, B, C, and D. The amount spent on each activity to date is $22K, $14K, $12K, and $28K respectively. The planned percentages complete for the current date are 90%, 80%, 70%, and 20% respectively. The actual percentages complete for the current date are 100%, 90%, 75%, and 10% respectively. The actual cost of the work performed to date is $40K. What is the BCWS for Activity C?

$15.01K −

$0 − $5K

$5.01K − $10K

$10.01K − $15K

$20K

Over $20K

53) A project has four activities: A, B, C, and D. The amount spent on each activity to date is $22K, $14K, $12K, and $28K respectively. The planned percentages complete for the current date are 90%, 80%, 70%, and 20% respectively. The actual percentages complete for the current date are 100%, 90%, 75%, and 10% respectively. The actual cost of the work performed to date is $40K. What is the BCWS for Activity D? A)

$0 − $5K

$5.01K − $10K

$10.01K − $15K

F. ROBERT JACOBS, 2024

7 1

$20K

$15.01K −

Over $20K

54) A project has four activities: A, B, C, and D. The amount spent on each activity to date is $22K, $14K, $12K, and $28K respectively. The planned percentages complete for the current date are 90%, 80%, 70%, and 20% respectively. The actual percentages complete for the current date are 100%, 90%, 75%, and 10% respectively. The actual cost of the work performed to date is $40K. What is the BCWS for the project?

$45.01K −

$0 − $15K

$15.01K − $30K

$40.01K − $45K

$60K

Over $60K

55) A project has four activities: A, B, C, and D. The amount spent on each activity to date is $22K, $14K, $12K, and $28K respectively. The planned percentages complete for the current date are 90%, 80%, 70%, and 20% respectively. The actual percentages complete for the current date are 100%, 90%, 75%, and 10% respectively. The actual cost of the work performed to date is $40K. What is the BCWP for Activity A?

F. ROBERT JACOBS, 2024

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$0 − $5K

$5.01K − $10K

$10.01K − $15K

$20K D)

$15.01K −

Over $20K

56) A project has four activities: A, B, C, and D. The amount spent on each activity to date is $22K, $14K, $12K, and $28K respectively. The planned percentages complete for the current date are 90%, 80%, 70%, and 20% respectively. The actual percentages complete for the current date are 100%, 90%, 75%, and 10% respectively. The actual cost of the work performed to date is $40K. What is the BCWP for Activity B?

$15.01K −

$0 − $5K

$5.01K − $10K

$10.01K − $15K

$20K

Over $20K

57) A project has four activities: A, B, C, and D. The amount spent on each activity to date is $22K, $14K, $12K, and $28K respectively. The planned percentages complete for the current date are 90%, 80%, 70%, and 20% respectively. The actual percentages complete for the current date are 100%, 90%, 75%, and 10% respectively. The actual cost of the work performed to date is $40K. What is the BCWP for Activity C? A)

$0 − $5K

F. ROBERT JACOBS, 2024

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$5.01K − $10K

$10.01K − $15K

$20K

$15.01K −

Over $20K

58) A project has four activities: A, B, C, and D. The amount spent on each activity to date is $22K,

$14K, $12K, and $28K respectively. The planned percentages complete for the current date are 90%, 80%, 70%, and 20% respectively. The actual percentages complete for the current date are 100%, 90%, 75%, and 10% respectively. The actual cost of the work performed to date is $40K. What is the BCWP for Activity D? D)

$15.01K −

$0 − $5K

$5.01K − $10K

$10.01K − $15K

$20K

F. ROBERT JACOBS, 2024

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Over $20K

59) A project has four activities: A, B, C, and D. The amount spent on each activity to date is $22K, $14K, $12K, and $28K respectively. The planned percentages complete for the current date are 90%, 80%, 70%, and 20% respectively. The actual percentages complete for the current date are 100%, 90%, 75%, and 10% respectively. The actual cost of the work performed to date is $40K. What is the BCWP for the project? A)

$0 − $15K

$15.01K − $30K

$40.01K − $45K

$60K

$45.01K −

Over $60K

60) A project has four activities: A, B, C, and D. The amount spent on each activity to date is $22K, $14K, $12K, and $28K respectively. The planned percentages complete for the current date are 90%, 80%, 70%, and 20% respectively. The actual percentages complete for the current date are 100%, 90%, 75%, and 10% respectively. The actual cost of the work performed to date is $40K. What is the schedule variance for the project?

F. ROBERT JACOBS, 2024

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1.41K −

Under 1.00K

1.00K− 1.20K

1.21K− 1.40K

1.60K

Over 1.60K

61) A project has four activities: A, B, C, and D. The amount spent on each activity to date is $22K, $14K, $12K, and $28K respectively. The planned percentages complete for the current date are 90%, 80%, 70%, and 20% respectively. The actual percentages complete for the current date are 100%, 90%, 75%, and 10% respectively. The actual cost of the work performed to date is $40K. What is the cost variance for the project?

1.41K −

Under 1.00K

1.00K− 1.20K

1.21K− 1.40K

1.60K

Over 1.60K

62) A project has four activities: A, B, C, and D. The amount spent on each activity to date is $22K, $14K, $12K, and $28K respectively. The planned percentages complete for the current date are 90%, 80%, 70%, and 20% respectively. The actual percentages complete for the current date are 100%, 90%, 75%, and 10% respectively. The actual cost of A)

Less than zero

0 − 1.05

the work performed to date is $40K. What is the schedule performance index for the project?

F. ROBERT JACOBS, 2024

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1.051 − 1.10

1.11 − 1.15

Over 1.15

63) A project has four activities: A, B, C, and D. The amount spent on each activity to date is $22K, $14K, $12K, and $28K respectively. The planned percentages complete for the current date are 90%, 80%, 70%, and 20% respectively. The actual percentages complete for the current date are 100%, 90%, 75%, and 10% respectively. The actual cost of A)

Less than zero

0 − 1.05

the work performed to date is $40K. What is the cost performance index for the project?

1.051 − 1.10

1.11 − 1.15

Over 1.15

64) An activity has an optimistic time of 16, a most likely time of 25, and a pessimistic time of 40. What is the expected time for the activity? A)

15 − 20

20.01 − 25

25.01 − 30

30.01 − 35

Over 35

65) An activity has an optimistic time of 16, a most likely time of 25, and a pessimistic time of 40. What is the variance for the activity? A)

15 − 20 F. ROBERT JACOBS, 2024

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20.01 − 25

25.01 − 30

30.01 − 35

Over 35

66) Project management can be defined as planning, directing, and controlling resources to meet the technical, ⊚

true

⊚

false

cost, and time constraints of the project.

67) A project may be defined as a series of related jobs directed toward some major output and requiring a significant period of time to perform. ⊚

true

⊚

68)

The second step in managing a project is writing the statement of work.

⊚

true

69)

An event unit package is a subdivision of a project.

⊚

true

⊚

false

⊚

false

70) Complex projects are often subdivided into a series of tasks that are typically configured to be not longer than several months in duration. ⊚

true F. ROBERT JACOBS, 2024

7 8

⊚

false

71) A work breakdown structure is used in project management but it is not used when the critical path method is involved. ⊚

true

⊚

false

72) The fact that organizations are flattening is one of the reasons that project management is important. ⊚

true

⊚

false

73)

The Gantt chart is an example of a project control chart.

⊚

true

⊚

false

74) Upper-level management must decide between pure, functional, and matrix structures as ways to organize projects. ⊚

true

⊚

false

75) One of the disadvantages of a pure project organizational structure is that the project manager has full authority over the project. ⊚

true

⊚

false

76) One of the advantages of a functional project organizational structure is that a team member can work on several projects. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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77)

A matrix project attempts to blend properties of functional and pure project structures.

⊚

true

⊚

false

78) A disadvantage of a matrix project organizational structure is that a project manager is held responsible for ⊚

true

⊚

false

79) The critical path of activities in a project is the sequence of activities that form the shortest chain in a project network of activities. ⊚

true

⊚

false

80)

CPM is an abbreviation for critical path method.

⊚

true

⊚

false

81) In CPM, the late start time estimate is the latest time you can start an activity and still keep the entire project on schedule. successful completion of the project.

F. ROBERT JACOBS, 2024

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⊚

true

⊚

false

82) The critical path in a project is that sequence of activities that consume the longest amount of time in a project network of activities. ⊚

true

⊚

false

83)

The critical path in a CPM analysis is always the shortest path through the network.

⊚

true

⊚

false

84) Slack activity time is the difference between the early start and the late finish of a project activity time. ⊚

true

⊚

false

85) In a CPM analysis, if you subtract the late finish from the early finish, the result is the activity's slack time. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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86) In a CPM analysis, if you subtract the early start from the late start, the result is the activity's slack time.

⊚

true

⊚

false

87) The critical path in a CPM analysis is found by locating the activities times with zero slack. ⊚

true

⊚

false

88) Calculating the early start and early finish times for each activity in a CPM analysis does not provide any useful information. ⊚

true

⊚

false

89) The project indirect costs associated with a project include overhead, facilities, and resource opportunity costs. ⊚

true

⊚

false

90) The activity direct costs associated with a project might include giving workers overtime to complete a project ⊚

true

⊚

false

in less than the expected time.

91) You are managing a project and need to cut the cost of the project. You decide to transfer workers to another job to cut the project's costs. Costs associated with transferring the ⊚

true

⊚

false F. ROBERT JACOBS, 2024

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92) Using the time-cost CPM model, the crash time is the shortest possible time allowed for each activity in the project. ⊚

true

⊚

false

93)

In the time-cost CPM model, cost is assumed to be a linear function of time.

⊚

true

⊚

false

94) When reducing the planned duration of a project using the time-cost CPM model, we select the activity to crash by determining the cost of each alternative and selecting the one whose cost is the greatest. ⊚

true

⊚

false

workers are an example of project indirect costs.

F. ROBERT JACOBS, 2024

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95)

One of the assumptions made using

CPM is that project activities can be identified with clear beginning and ending points. ⊚

true

⊚

false

96) One of the assumptions made using CPM is that project activity sequence relationships can be specified and networked. ⊚

true

⊚

false

97)

A project milestone is a specific event to be reached by a particular point in time.

⊚

true

⊚

false

98) Breakthrough projects are those that provide fundamental improvements to existing products. ⊚

true

⊚

false

99) Derivative projects are those that address incremental changes to products or processes. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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100) Earned value management (EVM) is a technique for measuring project progress in an objective manner. ⊚

true

⊚

false

101) The valuations in an earned value management analysis must be either profits or revenue. ⊚

true

⊚

false

102) Earned value management (EVM) has the capability to combine measurements of scope, schedule, and cost in a project. ⊚

true

⊚

false

103)

Derivative projects have high levels of change.

⊚

true

⊚

false

104)

With a pure project, team members report to multiple managers.

⊚

true

105)

Pure projects suffer from duplication of resources.

⊚

true

⊚

false

106)

Functional projects have high levels of team member motivation.

⊚

true

⊚

false

⊚

false

F. ROBERT JACOBS, 2024

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107) If a single estimate of the time required to complete an activity is not reliable, the best procedure is to use a mean and ⊚

true

⊚

false

108) Currently, there are only two major companies producing project management software, Microsoft, with Microsoft Project, and Primavera, with Primavera Project Planner. ⊚

true

⊚

false

standard deviation (or variance) for each activity.

109) A tracking Gantt chart superimposes the current schedule onto a baseline plan so deviations are easily noticed. ⊚

true

⊚

false

Answer Key

Test name: Chapter 04 Test Bank

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19)

C A B D E D C A E C C A B D C A C D C

F. ROBERT JACOBS, 2024

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20)

21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) 40)

A B E B D A B D C C A D E A C E C A E B

41)

42) 43) 44) 45) 46) 47) 48) 49) 50) 51) 52) 53) 54) 55) 56) 57) 58) 59) 60) 61)

D E D A B D C C D C B B C E C B A D C E

62)

F. ROBERT JACOBS, 2024

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63) 64) 65) 66) 67) 68) 69) 70) 71) 72) 73) 74) 75) 76) 77) 78) 79) 80) 81) 82)

E C A TRUE TRUE FALSE FALSE TRUE FALSE TRUE TRUE TRUE FALSE TRUE TRUE FALSE FALSE TRUE TRUE TRUE

83)

FALSE

84) 85) 86) 87) 88) 89) 90) 91) 92) 93) 94) 95) 96) 97) 98) 99) 100) 101) 102) 103)

FALSE TRUE TRUE TRUE FALSE TRUE TRUE FALSE TRUE TRUE FALSE TRUE TRUE TRUE FALSE TRUE TRUE FALSE TRUE FALSE

104)

FALSE

105) 106) 107)

TRUE FALSE FALSE F. ROBERT JACOBS, 2024

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108) 109)

FALSE TRUE

Student name: 1) The ability to rapidly and inexpensively switch production from one product to another enables what are sometimes referred to as?

A) B)

Economies of scale Economies of size

scope D)

Economies of

Economies of shape shipping

2) Capacity planning that involves hiring, layoffs, some new tooling, minor equipment purchases, and subcontracting is considered as which one of the following planning horizons?

A) B)

Intermediate range Long range

C) D) E)

Short range Current Upcoming

3) Capacity planning involving acquisition or disposal of fixed assets such as buildings, equipment or facilities is considered as which one of the following planning horizons?

A) B)

Intermediate range Long range

C) D) E)

Short range Current Upcoming

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 4) 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 utilization rate?

A) B)

0.75 1.00

C) D) E)

1.33 2.33 300

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? C) 1.25 A) 0.75 D) 1.33 B) 1.00 E) 100

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? C) 75 percent A) 25 percent D) 125 percent B) 100 units per hour E) 133 percent

7) The capacity focus concept can be put into practice through a mechanism called which of the following?

A) B) C)

Best operating level (BOL) Plant within a plant (PWP) Total quality management (TQM)

D) E)

Capacity utilization rate (CUR) Zero changeover time (ZXT)

The way to build in greater flexibility in your workers is to do which of the following?

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM

A) Pay higher wages to motivate a willingness to do a variety to tasks. B) Provide a broader range of training. C) Provide a wide variety of technology to augment workers’ skills. D) E)

Institute a "pay for skills" program. Use part-time employees with specialized skills as needed.

9) When deciding to add capacity to a factory, which of the following need not be considered?

A) B) C)

Maintaining system balance The frequency of capacity additions Use of external capacity

D) E)

Immediate product demand Availability of raw materials

10) Which of the following is not a step used in determining production capacity requirements?

A) B) C)

Forecasting to predict product sales Forecasting raw material usage Projecting availability of labor

D) E)

Calculating equipment and labor needs Projecting equipment availability

11) Which of the following models uses a schematic model of the sequence of steps in a problem and the conditions and consequences of each step?

A) B)

Probability indexing Johnson's sequencing rule

C) D)

Decision trees Activity system maps

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM E)

Decision mapping

12) Compared with a service operation, a manufacturing operation's capacity is which of the following?

A) B) C)

Manufacturing capacity is more dependent on time and location. Manufacturing capacity is subject to more volatile demand fluctuations. Utilization rates for manufacturing capacity more directly impacts quality.

D) E)

Demand can be smoothed by inventory policies. Manufacturing capacity is more capable of reacting to demand fluctuations.

13) At a decision point in a decision tree, which machine would you select when trying to maximize payoff when the anticipated benefit of selecting machine A is $45,000, with a probability of 90%; the expected benefit of selecting machine B is $80,000, with a probability of 50%; and the expected benefit of selecting machine C is $60,000, with a probability of 75%?

Machine A

and C.

You would be

B) C) D)

Machine B Machine C You would be indifferent between machines A

indifferent between machines A and B.

14) What is an important difference between capacity planning in services and capacity planning in manufacturing operations?

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM

A) B) C)

Time Location Demand volatility

D) E)

Utilization affects service All of these choices are correct.

15) Capacity planning involving consideration of production scheduling and inventory position is characterized A) B)

Intermediate range Long range

by which one of the following time durations? C) Short range D) Current E) Upcoming

16) In designing a general service facility, capacity should be such that the target rate of service utilization (ρ), in order A) less than 0.6 (or 60%), so that your system would be within the zone of service with maximum possible utilization. B) more than 0.6 (or 60%) so that your system would have a good utilization. C) about 0.7 (70%) so that your system would be in the zone of service with maximum possible utilization. D) more than 1.0 (100%) so that the servers are fully to get the best general purpose design, should be utilized, even if the customers had to wait a little. E) between 0.9 (90%) and 1.0 (100%) so that the utilization of the system is ideal.

17)

The time duration in which capacity planning is for less than one month is?

A) B) C)

Immediate range Short range Medium range F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM

range D)

Intermediate

Long range

18)

The time duration in which capacity planning is monthly or quarterly is?

A) B) C)

Immediate range Short range Medium range

range D)

Intermediate

Long range

19)

The time duration in which capacity planning is greater than one year is?

A) B) C)

Immediate range Short range Medium range

range D)

Intermediate

Long range

20) Finding the overall capacity level of capital-intensive resources to best support the firm’s long-term strategy is?

A) B) C)

Capacity Capacity utilization rate Strategic capacity planning

scale level F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM

Economies of

Best operating

21)

The output that a system is capable of achieving over a period of time is?

A) B) C)

Capacity Capacity utilization rate Strategic capacity planning

scale level D)

Economies of

Best operating

22) The level of capacity for which the process was designed and the volume of output at which average unit cost is minimized is?

A) B) C)

Capacity Capacity utilization rate Strategic capacity planning

scale level D)

Economies of

Best operating

23) The measure of how close the firm’s current output rate is to its best operating level (percent) is?

A) B) C)

Capacity Capacity utilization rate Strategic capacity planning

scale level D)

Economies of F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM

Best operating

24) The idea that as the plant gets larger and volume increases, the average cost per unit drops.

A) B) C)

Capacity Capacity utilization rate Strategic capacity planning

scale level D)

Economies of

Best operating

25)

Capacity can be defined as the ability to hold, receive, store, or accommodate.

⊚

true

⊚

false

26) When evaluating capacity, managers need to consider both resource inputs and product outputs. ⊚

true

⊚

false

27) Capacity can be defined as the amount of available resource inputs relative to requirements for output over a particular period of time. ⊚

true

⊚

false

28)

The capacity utilization rate is found by dividing best operating level by capacity used.

⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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29) The objective of strategic capacity planning is to provide an approach for determining the overall capacity level ⊚

true

⊚

false

of labor-intensive resources.

30)

The objective of strategic capacity planning is to determine the overall

capacity level of capital-intensive resources (including facilities, equipment, and overall labor force size) that best supports the company's short-range competitive strategy. ⊚

true

⊚

false

31) The objective of strategic capacity planning is to determine the overall capacity level of capital-intensive resources (including facilities, equipment, and overall labor force size) that best supports the company's long-range competitive strategy. ⊚

true

⊚

false

32) Best operating level is usually a multiple of the level of capacity for which a process was designed. ⊚

true

⊚

false

33)

Best operating level is the volume of output at which average unit cost is minimized.

⊚

true

⊚

false

34)

At some point, the

F. ROBERT JACOBS, 2024

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size of a growing plant can become too large and diseconomies of scale become a capacity planning problem. ⊚

true

⊚

false

35)

Long-range capacity planning requires top management participation.

⊚

true

⊚

false

36) Overtime and personnel transfers are solutions to capacity problems in the intermediate term. ⊚

true

⊚

false

37) Capacity planning is generally viewed in three time durations: immediate, intermediate, and indeterminate. ⊚

true

⊚

false

38) The basic notion of economies of scale is that as a plant gets larger and volume increases, the average cost per unit of output drops.

⊚

true

⊚

false

39) A piece of equipment with twice the capacity of another piece typically costs twice as much to purchase and to operate. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 40) The problem of keeping demand sufficiently high to keep a large factory busy is a sales issue and not a diseconomy of scale. ⊚

true

⊚

false

41) A production facility works best when it focuses on a fairly limited set of production objectives. ⊚

true

⊚

false

42) A production facility develops virtuosity and works best when it is focused on a widely varied set of production objectives. ⊚

true

⊚

false

43) Making adjustments to eliminate the variance between planned and actual output is tied into intermediate-range capacity planning. ⊚

true

⊚

false

44)

The ultimate in plant flexibility is a one-hour- changeover plant.

⊚

true

⊚

false

45) Capacity flexibility means having the ability to rapidly increase or decrease production levels or to shift production capacity quickly from one product or service to another. ⊚

true

⊚

false

46) Economies of scope exist when multiple products can be produced at a lower cost in combination than they can separately. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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47)

The frequency of adding to production

capacity should balance the costs of upgrading too frequently and the costs of upgrading too infrequently. ⊚

true

⊚

false

48)

Outsourcing is a common source of external capacity.

⊚

true

⊚

false

49)

Sharing capacity is a common source of external capacity.

⊚

true

⊚

false

50)

A capacity cushion is the amount of capacity less than expected demand.

⊚

true

⊚

false

51)

A decision tree problem does not need probabilities or payoffs to generate a solution.

⊚

true

⊚

false

52) In solving a decision tree problem, calculations start at the ends of the "branches" of the tree and work backward to the base of the tree. ⊚

true

⊚

false

53) The probability of each occurrence at a decision tree chance node is the reciprocal of the number of possibilities at the chance node. ⊚

true

F. ROBERT JACOBS, 2024

1 0 0

https://www.stuvia.com/user/AnswersCOM ⊚

false

54) In a decision tree, the only time probabilities are applied to a decision node is when the decision is being made by someone else such as your customer or your competitor. ⊚

true

⊚

false

55)

Low rates of capacity utilization in service organizations are never appropriate.

⊚

true

56)

The smaller the capacity cushion, the better.

⊚

true

57)

The larger the capacity cushion, the better.

⊚

true

⊚

false

58)

The capacity cushion is the ratio of capacity used to the best capacity level.

⊚

true

⊚

false

⊚

false

59) When a firm's design capacity is less than the capacity required to meet its demand, it is said to have a negative capacity cushion. ⊚

true

⊚

false

60) In decision tree analysis, the time value of money is ignored because the only concern is with cash costs. F. ROBERT JACOBS, 2024

1 0 1

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true

⊚

false

61)

In practice, achieving a perfectly balanced plant is usually desirable but impossible.

⊚

true

⊚

false

62) In practice, achieving a perfectly balanced plant is usually both impossible and undesirable. ⊚

true

⊚

false

63) Because services cannot be stored for later use, service managers consider time as one of their supplies or resources. ⊚

true

⊚

false

64)

Capacity is always expressed in terms of units of output per period of time.

⊚

true

⊚

false

65) A plant within a plant is when two (or more) companies have production facilities within the same building. In other words, they co-locate.

⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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Specialized workers require broader training than flexible workers.

⊚

true

⊚

false

67) Three important issues to be considered when adding or decreasing capacity are number of workers, the skill of those workers, and how fast workers can be added or reduced. ⊚

true

⊚

false

68) With decision trees, squares represent chance events and circles represent decision points. ⊚

true

⊚

false

69) Service capacity planning is performed almost identically to manufacturing capacity planning. The only difference is that workers are a major capacity issue for services. ⊚

true

⊚

false

70) The volatility of demand on a service delivery system is much higher than that on a manufacturing production. ⊚

true

⊚

false

Answer Key

Test name: Chapter 05 Test Bank

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11)

D A B A C B B B D B C F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 12) 13) 14) 15) 16) 17) 18) 19)

D C E C C B D E

20)

21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) 40)

A E B D TRUE TRUE TRUE FALSE FALSE FALSE TRUE FALSE TRUE TRUE TRUE FALSE FALSE TRUE FALSE FALSE

41)

TRUE

42) 43) 44) 45) 46) 47) 48) 49) 50) 51) 52) 53) 54) 55) 56)

FALSE FALSE FALSE TRUE TRUE TRUE TRUE TRUE FALSE FALSE TRUE FALSE FALSE FALSE FALSE

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 57) 58) 59) 60) 61)

FALSE FALSE TRUE FALSE FALSE

62)

TRUE

63) 64) 65) 66) 67) 68) 69) 70)

TRUE FALSE FALSE FALSE FALSE FALSE FALSE TRUE

Student name:

A) B) C) D)

Unit time will decrease at a decreasing rate. Unit time will increase at a decreasing rate. Unit time will decrease at an increasing rate. Unit time will increase at an increasing rate.

1) E)

An assumption of learning curve theory is which of the following? Unit time will hold constant.

An assumption of learning curve theory is which of the following?

A) B) C)

The reduction in unit time will follow a predictable pattern. Unit time will decrease at an increasing rate. The time required to do a task will vary randomly each time the task is repeated.

D) E)

Learning will not be transferred from one worker to the next. Organizational learning is not included in learning theory.

3) Which of the following computational methods are used to calculate learning curve statistics?

F. ROBERT JACOBS, 2024

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A) B) C)

Simple compounding Exponential smoothing Logarithms

D) E)

Calculus Negative recursive multiplication

4) 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?

A) B)

0.4665 minute 0.0933 minute

C) D) E)

4.665 minutes 9.33 minutes 3 minutes

5) The unit improvement factor for an 80 percent learning curve at 100 units is 0.2271. The first and second timings of a person doing a job are 20 minutes and 16 minutes, respectively. What is the learning-adjusted time A) B)

20 minutes 16 minutes

estimate for unit number 100?

C) D) E)

2.271 minutes 4.542 minutes 0.800 minute

6) You have just timed a person doing a job a few times. The first time it took the person 25 minutes, the second time it took 20 minutes, and the third time it took 17.55 minutes. Which learning curve unit improvement factor should you use?

F. ROBERT JACOBS, 2024

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A) B)

25 percent 75 percent

C) D) E)

80 percent 85 percent 90 percent

7) You have just timed a person doing a job four times. The first time it took the person 120 minutes, the second time it took 90 minutes, the third time it took 76.1 minutes, and the fourth time it took 67.5 minutes. Which learning curve unit improvement factor should you use?

A) B)

25 percent 75 percent

C) D) E)

80 percent 85 percent 90 percent

8) You have determined that a 75 percent learning curve is appropriate for a task. If the initial timing of the person performing that job was 50 minutes, and if you need the job performed 500 times, how many minutes of work will be required?

A) B)

25,000 minutes 3,184 minutes

C) D) E)

1,895 minutes 1,379 minutes 636.8 minutes

9) You have determined that a 60 percent learning curve is appropriate for a task. If your initial timing of person performing that task was 35 minutes and if you need the task

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM A) B) C)

3,500.0 minutes 1,062.5 minutes 705.25 minutes

performed 1,000 times, how many minutes of work will be required? D) 450.5 minutes E) 220.3 minutes

10) You have just timed a person doing a haircut for the first time. It took 50 minutes. What unit improvement factor learning curve would you use if the person took 35 minutes on the second haircut?

A) B)

35 percent 50 percent

C) D) E)

70 percent 75 percent 80 percent

11) With an 80 percent unit improvement factor learning curve and an initial time of 100 minutes to do a job, at what number of repetitions will the job take less than 50 minutes?

A) B) C)

5 repetitions of the job 6 repetitions of the job 7 repetitions of the job

D) 8 repetitions of the job E) 9 repetitions of the job

12) With a 70 percent unit improvement factor learning curve and an initial time of 100 minutes to do a job, at what number of repetitions does the job take less than 50 minutes?

A) B) C)

2 repetitions of the job 3 repetitions of the job 4 repetitions of the job

5 repetitions of the job

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM E) 6 repetitions of the job

13) The 50th repetition of a job is timed at 100 minutes. If the learning curve for this job is 90 percent, what is the A) B)

49.66 minutes 81 minutes

estimated time for the 100th repetition of this job? C) 90 minutes D) 100 minutes E) 110 minutes

14) The 50th repetition of a job is timed at 100 minutes. If the learning curve for this job is 90 percent, what is the A) B)

44.69 minutes 81 minutes

estimated time for the 200th repetition of this job? C) 90 minutes D) 100 minutes E) 110 minutes

15) The 10th repetition of job is timed at 100 minutes. If the learning curve for this job is 80 percent, what is the A) B)

47.66 minutes 62.50 minutes

estimated time for the 100th repetition of this job? C) 80 minutes D) 92.50 minutes E) 100 minutes

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 16)

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? C) $8,062.00 A) $10,000.00 D) $4,031.00 B) $9,376.50 E) $1,191.20

17) A company can produce a small lot of products the first time at a cost of $10,000. If their 75 percent learning curve allows them to reduce their costs on each lot, what is A) B)

$100,000 $93,978

the total cost of producing 10 lots? C) D) E)

$65,432 $55,890 $49,310

18) A company can produce a small lot of products the first time at a cost of $3,000. If their 65 percent learning curve allows them to reduce their costs on each lot, what is the cost of producing the 12th lot? B) $3,000 A) $14,340

C) D) E)

$2,896 $640.50 $213.50

19)

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? C) $290,700 A) $500,000 D) $250,687 B) $390,000 E) $250,000

F. ROBERT JACOBS, 2024

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20) You are a consultant specializing in estimating the costs after the employees learn how to do a job more efficiently by repetition. Your client can produce a product the first time at a cost of $2,500. If their 65 percent learning curve allows them to reduce their costs on each product, what A) B)

$100,000 $78,900

is the total cost of producing 400 units of the new product?

C) D) E)

$58,600 $45,765 $37,850

21) A company can produce a small lot of products the first time at a cost of $3,000. If their 65 percent learning curve allows them to reduce their costs on each lot, what is the cost of producing the 20th lot?

A) B)

$60,000 $18,585

C) D) E)

$1,950 $466.20 $155.40

22) 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? D) By the 120th A) B) C)

By the 50th unit By the 80th unit By the 100th unit

unit unit

By the 250th

F. ROBERT JACOBS, 2024

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23) 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 A) B) C)

Before the 50th unit Before the 80th unit Before the 100th unit

old process. At what point, using the new process, will the production rate exceed the production rate achieved by the old process? D) Before the 120th unit E) Before the 250th unit

24) Which of the following is a reason that there are disparities between a firm's learning curve rate and that of its industry?

A) B) C) data.

Companies don't always report sensitive data to outside agencies accurately. Learning curves don't reflect organizational learning. There may be procedural differences in the manner that different firms collect and report

D) E)

The starting points for different firms were different. The cumulative number of units produced is different.

25) The general guidelines provided in the textbook on improving individual learning based on learning curves do not A) B) C)

Proper training Work specialization Early removal of workers who do not improve

include which of the following? D) Motivation E) Doing one or very few jobs at a time

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26) The general guidelines provided in the textbook on improving individual learning based on learning curves A) B) C) D)

Use a cumulative improvement factor. Use a unit improvement factor. Do one or very few jobs at a time. Explain learning logarithm analysis to workers.

include which of the following? E) Avoid feedback until the job is complete.

27)

Which of the following is not a managerial consideration in using learning curves?

harder. related.

Improvement comes from working smarter, not

Individual learning and incentives are positively

The newer the job, the greater will be the

D) E)

Learning curves are not impacted by indirect labor and supervision. Learning curves represent direct

learning.

labor output.

28) The learning curve percent and the reduction in the time it takes to produce the 1,000th unit (in general nth unit) as compared to the time to make the first unit is A) related in a

direct fashion, meaning the higher the learning curve percentthe greater will be the reduction in time to produce the 1,000th unit. B) related in an inverse fashion, meaning the higher the learning curve percentthe lower will be the reduction in time to produce the 1,000th unit. C) related in a linear direct fashion, meaning the higher the learning curve percentthe proportionately higher will be the reduction in time to produce the 1,000th unit. D)

not related.

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM E) related in a linear inverse fashion, meaning the higher the learning curve percentthe proportionately lower will be the reduction in time to produce the 1,000th unit.

29) The learning curve states that the more experience you have in a particular activity; the less surprised you will be ⊚

true

⊚

false

30)

When plotted on a graph, the learning curve can't be expressed as logarithm.

⊚

true

⊚

false

31)

Economies of scale and the learning curve have opposite effects on capacity.

⊚

true

⊚

false

32) The point at which the scale economy curve and the learning curve intersect is called the capacity optimum. when something goes wrong.

⊚

true

⊚

false

33) A learning curve is a line displaying the relationship between unit production time and the cumulative number of units produced. ⊚

true

⊚

false

34) A learning curve is a line displaying the way unit production time decreases as time passes.

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM ⊚

true

⊚

false

35)

On a learning curve plot, the time per unit is usually displayed on the vertical axis.

⊚

true

⊚

false

36) A learning curve shows the decrease in time required for each successive unit completed. ⊚

true

⊚

false

37) A learning curve shows the increase in time required for each successive unit completed. ⊚

true

⊚

false

38) An assumption of learning curves is that the time required to complete a unit will decrease at a decreasing rate as the cumulative number of units completed increases. ⊚

true

⊚

false

39) An assumption of learning curves is that the time required to complete a unit will increase at an increasing rate as the cumulative number of units completed increases. ⊚

true

⊚

false

40) An assumption of learning curves is that the time required to complete a unit will decrease at an increasing rate as the cumulative number of units completed increases. ⊚

true

F. ROBERT JACOBS, 2024

1 1 5

https://www.stuvia.com/user/AnswersCOM ⊚

false

41) You time someone completing a single task the first time at 10 minutes, and the second time they do the task it takes 9 minutes. You should use an 80 percent learning curve to estimate the length of time this worker will take to ⊚

true

⊚

false

42) You time someone completing a single task the first time at 100 minutes, and the second time they do the task it takes 90 minutes. You should use a 90 percent learning curve to estimate the length of time this worker will take to ⊚

true

⊚

false

43) You time someone completing a single task the first time at 120 minutes, and the second time they do the task it takes 108 minutes. You should use a 90 percent learning curve to estimate the length of time this worker will take to ⊚

true

⊚

false

44) You time someone completing a single task the first time at 100 minutes, and the fourth time they do the task it takes 81 minutes. You should use an 81 percent learning curve to estimate the length of time this worker will take to complete this task in the future.

complete this task in the future.

F. ROBERT JACOBS, 2024

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complete this task in the future.

complete this task in the future. ⊚

true

⊚

false

45) You time someone completing a single task the first time at 100 minutes, and the fourth time they do the task it takes 81 minutes. You should use a 90 percent learning curve to estimate the length of time this worker will take to ⊚

true

⊚

false

46) 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. The learning-adjusted time estimate for the unit number 25 is 0.0933 minute. ⊚

true

⊚

false

47) 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 10 minutes and 6 minutes, respectively. The learning-adjusted time estimate for the unit number 25 is 0.9330 minute. ⊚

true

⊚

false F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM

complete this task in the future.

48)

The unit improvement factor is not

as useful as arithmetic tabulation of learning curve statistics in adjusting time estimates for learning. ⊚

true

⊚

false

49)

Learning curves have a wide range of business applications.

⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM

50) If a person performing a task has been achieving a 95 percent learning curve and you know that the task will end after the 100th unit, the last unit produced will take 71.12 ⊚

true

⊚

false

51) If a person performing a task has been achieving a 75 percent learning curve and you know that the task will end after the 80th unit, the last unit produced will take 17.12 ⊚

true

⊚

false

percent as much time as the first unit.

52)

If a person performing a task has been achieving an 80 percent

learning curve and it took 10 minutes to produce the first unit, the total time to produce 100 units will be 326.5 minutes. ⊚

true

⊚

false

53) If a person performing a task has been achieving an 85 percent learning curve and if it took 1 minute to produce the first unit, the total time to produce 1,000 units will be 437.5 minutes. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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54)

Learning curves can be applied to individuals and to organizations.

⊚

true

⊚

false

55)

Organizational learning results mainly from practice.

⊚

true

⊚

false

56)

The normal form of the learning curve equation is Yx = nxk.

⊚

true

57)

Highly automated systems may have a near-zero learning curve.

⊚

true

⊚

false

58) jobs.

There will be greater improvement in labor hours and costs for existing jobs than for new

⊚

true

⊚

false

⊚

false

Answer Key

Test name: Chapter 06 Test Bank

1) 2) 3) 4) 5) 6) 7)

A A C A D C B F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19)

B C C E C C B A C D D C

20)

21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) 40)

D A E C C C D B FALSE FALSE FALSE FALSE TRUE FALSE TRUE TRUE FALSE TRUE FALSE FALSE

41)

FALSE

42) 43) 44) 45) 46) 47) 48) 49) 50) 51) 52)

TRUE TRUE FALSE TRUE FALSE TRUE FALSE TRUE TRUE FALSE TRUE

F. ROBERT JACOBS, 2024

1 2 1

https://www.stuvia.com/user/AnswersCOM 53) 54) 55) 56) 57) 58)

FALSE TRUE FALSE FALSE TRUE FALSE

Student name: 1) Which of the following is not considered a major workflow structure?

A) B) C)

Work center Project Assembly line

flow D) E)

Fabrication Continuous

2) A difference between project and continuous flow categories of process flow structures is which of the following?

A) B) C)

The size and bulk of the product Discrete parts moving from workstation to workstation Degree of equipment specialization

D) E)

Being a "virtual factory" Profit per unit

Assume a fixed cost for a process of $15,000. The

variable cost to produce each unit of product is $10, and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to break even? A) 500 units D) 790 units 900 units B) 667 units

1,000 units

Assume a fixed cost for a process of

F. ROBERT JACOBS, 2024

1 2 2

https://www.stuvia.com/user/AnswersCOM $120,000. The variable cost to produce each unit

of product is $35, and the selling price for the finished product is $50. Which of the following is the number of units A) B)

5,000 units 6,000 units

that has to be produced and sold to break even? C) 8,000 units D) 11,000 units E) 12,000 units

5) You are hired as a consultant to decide if your client should purchase a new, highly specialized piece of equipment. The product to be produced by this equipment is forecast to have a total worldwide demand of 15,000 units over the entire product life. The initial investment to acquire and install the equipment is $256,000. The variable cost to produce each unit A)

The company will recover its initial investment.

B) C)

The company's total margin will be less than its investment. It is a good investment.

will be $15, and the selling price for the finished product will be $30. Which of the following best describes the situation the firm is facing? D) The break- even is lower than the 15,000 units that are expected to sell. E) All of these choices are correct.

6) In a work center, Machine A has a 10-minute set-up time per batch and a 2-minute per unit run time. Machine B performs the identical function but has a set-up time of 30 minutes and a 1-minute run time per unit. The work center makes products in batches ranging from 1 unit to 100 units. Assuming capacity is not a limitation on either Machine, in A) B) C)

All batches should be run on Machine B. Batches of more than 20 units should be run on Machine B. Batches of fewer than 80 units should be run on Machine B.

order to minimize the total processing time, on which batches should Machine B be used?

Batches with up to 50 units should be run on Machine B.

F. ROBERT JACOBS, 2024

1 2 3

https://www.stuvia.com/user/AnswersCOM E)

No batches should be run on Machine B.

Which of the following is a basic type of process structure?

A) B) C)

Process flow diagram Product matrix Process matrix

D) E)

Work center Manual assembly

Which of the following is not a basic type of process structure?

A) B) C)

Product-process matrix Work center Manufacturing cell

process D) E)

Assembly line Continuous

9) Which of the following basic types of process structures is one in which equipment or work processes are arranged according to the progressive steps by which the product is made?

A) B) C)

Project Work center Manufacturing cell

process D) E)

Assembly line Continuous

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM

10) Which of the following basic types of process structures is one in which similar equipment or functions are grouped together?

A) B)

Project Work center

cell C)

Manufacturing

Assembly line

Continuous process

11) The placement of which of the following is not determined by production process organization decisions?

A) B) C)

Departments Work groups Workstations

exits D) E)

Machines Emergency

12) Suppose that you have two processes A and B for producing a widget. Process A has a fixed cost of $10,000 and per unit variable cost of $80.00. Process B has a fixed cost of $30,000 and the per unit variable cost is $40.00. The widget sells for $100 regardless of production Process used. During the next three years (your planning horizon for the widgets) you expect the economy to be pretty good with sales of widgets to be at least 700 units per year. You will

F. ROBERT JACOBS, 2024

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A) be indifferent between choosing Process A and B, because they both have the same break-even point. B) choose Process A since it has a low fixed cost. C) choose Process B, since it has low variable cost. D) choose either Process A or B, since both will result in same profit for the next three years. E) choose Process B, since it will have higher net profit than Process A in the next three years.

13)

In studying positioning of inventory in supply chains, which, if

any, of the following is most appropriate?I. As order decoupling point moves towards source, inventory investment goes down.II. As order decoupling point moves towards the source, customer lead time gets longer.III. As order decoupling point moves towards the source, inventory A) I B) II

investment increases.IV. As order decoupling point moves towards the source, customer lead time is unchanged. C) III D) IV E) I and II

14) In studying the product-process matrix describing layout strategies, which of the following is most appropriate? I. As you move from project to manufacturing cell to continuous process, product volume increases while standardization increases.II. As you move from project to manufacturing cell to continuous process, product volume decreases while standardization decreases.III. As you move from project to manufacturing cell to continuous process, product volume increases while standardization decreases.IV. A) I B) II

As you move from project to manufacturing cell to continuous process, product volume decreases while standardization increases.

F. ROBERT JACOBS, 2024

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C) III D) IV E)

I and II

15) Having stamping and drill press departments would imply which of the following types of layouts?

A) B) C)

Project Work-center Manufacturing cell

process D) E)

Assembly line Continuous

A) B)

Assemble-to-order Engineer-to-order

C) D)

Make-to-stock Make-to-order

17) A production environment where the customer is served “on-demand” from finished goods inventory is?

A) B) C)

Engineer-to-order Make-to-order Assemble-to-order

D) E)

Make-to-stock Custom order

F. ROBERT JACOBS, 2024

1 2 7

https://www.stuvia.com/user/AnswersCOM 18) A production environment where pre-assembled components, subassemblies, and modules are put together in A) B) C)

Engineer-to-order Make-to-order Assemble-to-order

response to a specific customer order is? D) Make-to-stock E) Custom order

19) A production environment where the product is built directly from raw materials and components in response to a specific customer order is?

A) B) C)

Engineer-to-order Make-to-order Assemble-to-order

D) E)

Make-to-stock Custom order

20) Here the firm works with the customer to design the product, which is then made from purchased material, parts, and components?

A) B) C)

Engineer-to-order Make-to-order Assemble-to-order

D) E)

Make-to-stock Custom order

21)

An exploded view of the product showing its component parts is?

A) B)

Blueprint Assembly drawing

chart D)

Assembly

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Operation and

Flow diagram route sheet

22) This tool defines how parts go together, their order of assembly, and often the overall material flow pattern.

A) B)

Blueprint Assembly drawing

chart D)

Assembly

Operation and

Flow diagram route sheet

23)

This tool specifies operations and process routing for a particular part.

A) B)

Blueprint Assembly drawing

chart D)

Assembly

Operation and

Flow diagram route sheet

24)

Process selection

refers to the strategic decision of choosing the volume of output to produce in a manufacturing facility depending upon ⊚

true

⊚

false

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25) Process selection refers to the strategic decision of selecting which kind of production processes to use to ⊚

true

⊚

false

26) A continuous process indicates production of discrete parts moving from workstation to workstation at a controlled rate. the way that facility produces.

produce a product or provide a service. ⊚

true

⊚

false

27) One difference between an assembly line process flow and a continuous process flow is that on the assembly line the ⊚

true

⊚

false

28)

One trade-off illustrated by the product-process matrix is between flexibility and cost.

flow is discrete rather than continuous.

⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 29) The volume requirements for the product are one determinant of the choice of which process structure to select. ⊚

true

⊚

false

30) One methodology used to evaluate equipment investment decisions where the investment entails an initial investment, fixed costs, and variable costs is break-even analysis. ⊚

true

⊚

false

31) Break-even analysis can only be used in production equipment decision making when dealing solely with fixed costs, not variable costs. ⊚

true

⊚

false

32) A general-purpose machine is less capable than a special-purpose machine in certain tasks but can perform a broader variety of tasks. ⊚

true

⊚

false

33) Break-even analysis can be used to help decide whether to perform a task with a special-purpose machine or ⊚

true

⊚

false

34) The product-process matrix shows the relationship between process structures and product volume and variety characteristics. ⊚

true

⊚

false

35) The term "assembly line" refers to progressive assembly linked by some material handling device.

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM ⊚

true

⊚

false

36) Work-center layouts allocate dissimilar machines into cells to work on products that have dissimilar processing requirements. ⊚

true

⊚

false

with a general-purpose machine.

37)

A project layout is characterized by a

F. ROBERT JACOBS, 2024

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relatively low number of production units in comparison with process and product layout formats. ⊚

true

⊚

false

38)

A project layout is characterized by a high degree of task ordering.

⊚

true

⊚

false

39) The closer the customer is to the customer order decoupling point, the longer it takes the customer to receive the product. ⊚

true

⊚

false

40) The closer the customer is to the customer order decoupling point, the more quickly the customer receives the product. ⊚

true

⊚

false

41) Engineer-to-order firms will work with the customer to design the product and then make it from purchased materials, parts, and components. ⊚

true

⊚

false

42) A make-to-order firm will work with the customer to design the product and then make it from purchased materials, parts, and components. ⊚

true

⊚

false

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43)

The time needed to respond to a customer's order is called the customer response time.

⊚

true

⊚

false

44) The focus in the make-to-stock environment is on providing finished goods where and when the customers want them. ⊚

true

⊚

false

45)

An example of an assemble-to-order firm is Dell Computer.

⊚

true

⊚

false

46) The essential issue in satisfying customers in the make-to-stock environment is to balance the level of finished ⊚

true

⊚

false

47) The essential issue in satisfying customers in the make-to-stock environment is to balance the cost of the finished item against the willingness of the consumer to pay for it. inventory against the level of service to the customer. ⊚

true

⊚

false

48) Assemble-to-order means moving the customer order decoupling point from finished goods to components. ⊚

true

⊚

false

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49) A customer order decoupling point is where the order moves from the marketing department to the production department. ⊚

true

⊚

false

50) Lean manufacturing means minimizing the number of workers and machines used in a process. ⊚

true

⊚

false

51)

A project layout is only used for products in a fixed location.

⊚

true

⊚

false

52) A manufacturing cell layout is a dedicated area where products that are for the same or very similar customers are produced. ⊚

true

⊚

false

53) A process flowchart denotes what happens to the product as it progresses through the productive facility. ⊚

true

⊚

false

Answer Key

Test name: Chapter 07 Test Bank

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1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19)

D A E C B B D A D B E E E A B C D C B

20)

21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) 40)

B D E FALSE TRUE FALSE TRUE TRUE TRUE TRUE FALSE TRUE TRUE TRUE TRUE FALSE TRUE TRUE FALSE TRUE

41)

TRUE

42) 43) 44)

FALSE FALSE TRUE

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 45) 46) 47) 48) 49) 50) 51) 52) 53)

TRUE TRUE FALSE TRUE FALSE FALSE TRUE FALSE TRUE

Student name: 1) Which of the following is not considered an input to the layout decision in facility layout analysis?

Cost per square foot of alternative facilities

system

Processing

B) C) D)

Space requirements for the elements in the layout Specification of objectives and corresponding criteria to be used to evaluate the design Estimates of product or service demand on the

requirements in terms of the number of operations and the flow between elements in the layout

Which of the following is a hybrid type of production layout format?

A) B) C)

Process flow diagram Workcell center Systematic plan

cell D) E)

Simo charts Manufacturing

Which of the following is not a basic type of production layout format?

Workcenter

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Process layout Manufacturing cell layout

D) E)

Project layout Assembly line

4) Which of the following basic types of production layout formats is one in which equipment or work processes are arranged according to the progressive steps by which the product is made? B) Functional A) Job-shop layout layout

C) D)

Assembly-line layout Group technology layout

Process layout

5) Which of the following basic types of production layout formats is one that has similar equipment or functions are grouped together?

A) B) C)

Production line layout Assembly-line layout Workcenter

D) E)

Group technology layout Manufacturing cell layout

6) Using the assembly-line balancing procedure, which of the following is the required cycle time in minutes per unit if the daily production time is 480 minutes and the required daily output is 50 units?

A) B) C)

0.104 50 9.6

D) E)

480 Cannot be determined from the information given

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7) Using the assembly-line balancing procedure, which of the following is the required cycle time if the production time in minutes per day is 1,440 and the required output per day in units is 2,000?

A) B) C)

D) 500 0.72 E) Cannot be 1.388 determined from the 250 information given

8) Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the six tasks that make up the job are 4, 6, 7, 2, 6, and 5 minutes, and the cycle time is 10 minutes?

A) B) C)6

D) 3 5

8 E) None of these choices are correct.

9) Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the eight tasks that make up the job are 7, 4, 7, 8, 9, 4, 3, and 6 minutes, and the cycle time is 8 minutes?

A) B) C)6

D)8 3 5

E) None of these choices are correct.

10) You have just determined the actual number of workstations that will be used on an assembly line to be 6 using the assembly-line balancing procedure. The cycle time of the line is 5 minutes, and the sum of all that tasks required on the line is 25 minutes. Which of the following is the correct value for the resulting line's efficiency?

0.990

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM A) B) C)

0.500 E) None of these 0.833 choices are correct. 0.973

11)

You have just determined the actual number of workstations

that will be used on an assembly line to be 8 using the assembly-line balancing procedure. The cycle time of the line is 10 minutes, and the sum of all that tasks required on the line is 60 minutes. Which of the following is the correct value for the resulting line's efficiency?

A) B) C)

D) 0.850 0.500 E) None of these 0.650 choices are correct. 0.750

12) When balancing an assembly line, which of the following is not a way to reduce the longest task time below A) B) C) D)

Upgrade the equipment. Assign a roaming helper to support the line. Split the task between two workstations. Speed up the assembly-line transfer mechanism.

the required workstation cycle time? E) Use a more skilled worker.

13)

Which of the following is not a benefit of a manufacturing cell layout?

A) B) C)

Better human relations Improved operator expertise Less in-process inventory and material handling

D) E)

Faster production setup Reduced cost

14) C)

We would expect to see in a manufacturing cell layout which of the following? More in-

F. ROBERT JACOBS, 2024

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Large teams who collectively do a small part of a finished product A small team of workers who turn out complete units of work

process inventory D) Long production setup times E) None of these choices are correct.

15)

Which of the following is not a step in developing a manufacturing cell layout?

A) B) C)

Grouping parts into families that follow a common sequence of steps Identifying dominant flow patterns of parts families as a basis for location of processes Physically grouping machines and processes into

D) E)

Disposing of leftover machinery and outsourcing ungrouped processes None of these choices are correct.

cells

16) In the design of retail service layouts, the term "ambient conditions" could refer to which of the following?

A) B)

Temperature How much money a customer spends

morale D)

Employee

Customers'

How long the customer stays perceptions of the service

17) In the design of retail service layouts, the term "ambient conditions" does not refer to which of the following?

A) B)

Noise level Music

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Lighting Scent Staffing

18) In the design of retail service layouts, the term "ambient conditions" could refer to which of the following? A) Signs

B) C) D)

Symbols Artifacts Lighting

service E)

Speed of

19)

The term "servicescape" refers to which of the following?

A) B) C)

The schematic diagram of the service flows of material, information, and customers The emergency exit plan from a service facility The physical surroundings in which the service takes place

D) E)

The network of government rules regulating the service The broadest concept of the service business

20) Using the assembly-line balancing procedures for any assembly-line balancing problem, which of the following is most correct?

A) The theoretical minimum number of workstations is always less than number of workstations actually used. B) The theoretical minimum number of workstations is sometimes more than number of workstations actually used. C) The theoretical minimum number of workstations is never less than number of workstations actually used. D) The theoretical minimum number of workstations is sometimes less than Y and sometimes more than number of workstations actually used.

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https://www.stuvia.com/user/AnswersCOM E) The theoretical minimum number of workstations is always less than or equal to number of workstations actually used.

21) (Choose the most appropriate answer from the choices below) In an assembly line balancing problem, work station cycle time.

I. will decrease as the required production per day increases, other things remaining the same. II. will increase as the required production per day increases, other things remaining the same. III. will decrease as the production time per day increases, other things remaining the same. A) I B) II

IV.

will increase as the production time per day increases, other things remaining the same.

C) III D) IV E)

I. and IV

22) (Choose the most appropriate answer from the choices below) A manufacturing cell layout. I. allocates dissimilar machines into cells to produce product families (similar shapes and processing requirements). II. improves operator expertise. III. reduces cost.

A) I B) II C) III D) E)

I, II, and III I and II only

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https://www.stuvia.com/user/AnswersCOM 23) This layout groups dissimilar machines to work on products that have similar shapes and processing requirements.

A) B) C)

Workcenter Manufacturing cell Job shops

layout D)

Flow-shop

Servicescape

24) A workcenter is a basic production layout format in which similar equipment or functions are grouped together.

⊚

true

⊚

false

25) An assembly-line layout is similar to the basic production layout format of flow-shop layout. ⊚

true

⊚

false

26)

A manufacturing cell layout is similar to the workcenter and assembly-line layouts.

⊚

true

⊚

false

27) A manufacturing cell groups identical machines together to work on products having similar shapes and processing requirements. ⊚

true

⊚

false

28)

A workcenter layout is similar to the basic production layout format of job-shop.

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https://www.stuvia.com/user/AnswersCOM ⊚

true

⊚

false

29)

A project layout is similar to the basic production layout format of the workcenter.

⊚

true

⊚

false

30)

Systematic layout planning is used to design products.

⊚

true

⊚

false

31) The assembly-line balancing procedure determines the precedence relationships of manufacturing tasks. ⊚

true

⊚

false

32)

Assembly lines are a special case of product layout.

⊚

true

⊚

false

33)

Assembly lines are a special case of a project layout.

⊚

true

⊚

false

34) In assembly-line balancing, the theoretical minimum number of workstations is found by a ratio of the sum of all ⊚

true

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https://www.stuvia.com/user/AnswersCOM ⊚

false

35) The efficiency of an assembly line is found by a ratio of the sum of all task times divided by the cycle time. ⊚

true

⊚

false

36) For the purposes of assembly-line balancing, cycle time is found by dividing production time per day by the ⊚

true

⊚

false

37) In balancing an assembly line, workstation cycle time has to be less than the time between successive units coming off the end of the line. ⊚

true

⊚

false

task times divided by the cycle time.

required units of output per day.

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38)

If the sum of the task times required to

produce a product is 45 minutes and the cycle time for the same product is 10 minutes, the theoretical minimum number ⊚

true

⊚

false

39) The first step in balancing an assembly line is to specify the precedence relationships among tasks to be performed on the line. ⊚

true

⊚

false

40) The term "assembly line" refers to progressive assembly linked by some material handling device. ⊚

true

⊚

false

41) If the sum of the task times required to produce a product is 80 minutes and the cycle time for the same product is 15 minutes, the theoretical minimum number of workstations is 8 using the assembly-line balancing procedure. ⊚

true

⊚

false

of workstations is 5 using the assembly-line balancing procedure.

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 42)

In designing a production layout a flexible line layout might have the shape of a "U".

⊚

true

⊚

false

43)

In designing a production line, a mixed-model line layout is used by JIT manufacturers.

⊚

true

⊚

false

44) The objective of a mixed-model line layout is to meet the demand for a variety of products and avoid building high inventories. ⊚

true

⊚

false

45) A manufacturing cell groups the same or similar machines into cells to work on products that have dissimilar ⊚

true

⊚

false

46) A project layout is characterized by a relatively low number of production units in comparison with workcenter and assembly-line formats. shapes and dissimilar processing requirements.

⊚

true

⊚

false

47)

A project layout is characterized by a high degree of task ordering.

⊚

true

⊚

false

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https://www.stuvia.com/user/AnswersCOM 48) The objective of a retail service layout is to maximize net profit per square foot of store space. ⊚

true

⊚

false

49) Assembly-line balancing means assigning all necessary tasks to a series of workstations so that each workstation has no more than can be done in the workstation cycle time and so that idle time across all workstations is minimized. ⊚

true

⊚

false

50) The formats by which departments are arranged in a facility are defined by the level of production volume. ⊚

true

⊚

false

51)

A job-shop is also known as a functional layout.

⊚

true

⊚

false

52)

An assembly line is also known as a flow-shop layout.

⊚

true

⊚

false

53)

It would be rare to find more than one layout type in the same production facility.

⊚

true

⊚

false

54) The most common approach to developing a workcenter layout is to arrange workcenters consisting of similar volume processes in a way that optimizes their relative placement. ⊚

true

⊚

false

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55) When designing an assembly-line, you should always re-balance when the efficiency is not high. ⊚

true

⊚

false

56) The longest required task time constrains the workstation cycle time used to design the assembly-line. ⊚

true

⊚

false

57) When a single task time is longer than the desired workstation cycle time, the only option is to split the task into two or more tasks. ⊚

true

⊚

false

58) Mixed-model production is solely about using the same production facility to produce different versions of a product. ⊚

true

⊚

false

59) The term retailscape refers to the physical surroundings in which the service takes place and how these ⊚

true

⊚

false

surroundings affect customers and employees.

60)

The term ambient conditions refers to background characteristics of the service.

⊚

true

⊚

false

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61) The trend in office layout is toward smaller-and- smaller offices as well as offices without doors. ⊚

true

⊚

false

Answer Key

Test name: Chapter 08 Test Bank

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19)

A E B C C C A A C B C D E B D A E D C

20)

21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35)

E E B TRUE TRUE TRUE FALSE TRUE FALSE FALSE FALSE TRUE FALSE TRUE FALSE

F. ROBERT JACOBS, 2024

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TRUE FALSE TRUE TRUE TRUE

41)

FALSE

42) 43) 44) 45) 46) 47) 48) 49) 50) 51) 52) 53) 54) 55) 56) 57) 58) 59) 60) 61)

TRUE TRUE TRUE FALSE TRUE TRUE TRUE TRUE FALSE TRUE TRUE FALSE FALSE FALSE TRUE FALSE FALSE FALSE TRUE FALSE

Student name: 1) Which of the following is a characteristic that can be used to guide the design of service systems?

A) B) C) D)

Services cannot be inventoried. Services are all similar. Quality work means quality service. Services businesses are inherently

entrepreneurial. E) Even service businesses have internal services.

Which of the following is not part of "the service triangle"?

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https://www.stuvia.com/user/AnswersCOM A) B) C)

Employees Support systems Customers

D) E)

Service strategy Service encounter

3) Which of the following refers to the physical presence of the customer in a service system?

A) B) C)

Creation of the service Customer contact Intermittent production

D) E)

Continuous production None of these choices are correct.

4) Which of the following is a major factor that distinguishes service design and development from A) B)

The service process and service product can be developed independently. The service package has the same legal

manufacturing design and development? protection available to manufactured goods. C) The service package is the major

output of the development process. D) Manufacturing is far more capital intensive than services. E) Capacity decisions are much more critical in manufacturing operations.

5) Which one of the following is not a major factor distinguishing service design and development from A)

The process and product must be developed at the same time.

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https://www.stuvia.com/user/AnswersCOM B) Many service organizations can change their service offerings virtually overnight. C) Many parts of the service package are often defined by the training that individuals receive before they become part of the service organization. D) The service package, rather than a definable manufacturing design and development? good, is the output of the development process. E) Service operations can be protected by patents; manufacturing operations cannot.

6) Which of the following are alternative possible service encounters included in the service-system design matrix?

A) B) C)

Mail contact Warranty Sales call

D) E)

Field service None of these choices are correct.

7) Which of the following is an alternative possible service encounter included in the service-system design matrix?

A) B)

Face-to-face distance Internet

C) D)

Questionnaire response Automated

teller (ATM) E) Response card encounter

8) In the service-system design matrix, a face-to-face total customization service encounter is expected to have which of the following?

A) B) C)

Low sales opportunity Low production efficiency High production efficiency

Low degree of customer/server contact

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https://www.stuvia.com/user/AnswersCOM E)

None of these choices are correct.

9) In the service-system design matrix, a mail contact service encounter is expected to have which of the following?

A) B) C)

High sales opportunity High degree of customer/server contact High production efficiency

D) E)

Low sales opportunity None of these choices are correct.

10) In the service-system design matrix, a face-to-face loose specs service encounter is expected to have which of the following?

A) B) C)

Low sales opportunity Low production efficiency High production efficiency

D) E)

Low degree of customer/server contact None of these choices are correct.

11)

In the service-

system design matrix, an Internet and on-site technology service encounter is expected to have which of the following?

A) B) C)

High sales opportunity High degree of customer/server contact Low production efficiency

D) E)

High production efficiency None of these choices are correct.

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 12)

Which of the following is not a strategic use of the service-system design matrix?

A) B) C) D)

Enabling systematic integration of operations and marketing strategy Design of the service package Comparing how other firms deliver specific services Indicating evolutionary or life cycle changes that

might be in order as the firm grows E) Clarifying exactly which combination of service delivery the firm is in fact providing

13) 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?

A) B)

Task Time

C) D) E)

Teamwork Trust Talent

14) 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?

A) B)

Talent Teamwork

C) D) E)

Trust Treatment Time

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15)

One of the three approaches to delivering on-site service is.

A) B) C)

Airline approach Self-service approach Fast-food approach

D) E)

Do-it-yourself approach Internet approach

16) Which of the following is one of the three contrasting approaches to delivering on-site service?

A) B) C)

Quality approach Stock market approach Production-line approach

D) E)

Retail approach Professional approach

17) Which company is mentioned in the text as a pioneering of the production-line approach to delivering on- site service?

A) B) C)

Ritz-Carlton Hotel Company McDonald's Corporation Prudential Insurance Company

D) E)

Southwest Airlines Citibank

18) Which of the following approaches to service design is characterized by having the customer take a greater role in the production of the service?

Production-line approach

Personal- attention approach

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C) D)

Quality approach Do-it-yourself approach

Self service approach

19)

Which of the following is not an element of a good service guarantee?

A) B) C)

Unconditional (no small print). The customer controls the process. Easy to understand.

D) E)

Easy to communicate. Meaningful to the customer.

20)

Which of the following is not a characteristic of a well-designed service system?

A) B) C)

Robust Cost-effective Puts customers in charge

D) E)

User-friendly Effectively links "front office" with "back office"

21)

Which of the following is a characteristic of a well- designed service system?

A) B) C)

Provides an unconditional service guarantee. Each element of service system is consistent with the operating focus of the firm. The front end of the service encounter is equal to the back end.

D) E)

It segments the pleasure for the customer. It lets the customer control the process.

22)

Which of the following is considered a high-contact service operation?

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A) B) C)

On-line brokerage house Internet sales for a department store Physician practice

D) Telephone life insurance sales and service E) Automobile repair

23) In designing service systems, as you go from mail contact to phone contact to face-toface total customization, A) B) C)

Sales opportunity decreases while degree of customer/server contact increases. Sales opportunity decreases while degree of customer/server contact decreases. Sales opportunity increases while degree of customer/server contact decreases.

which of the following is most appropriate? D) Sales opportunity increases while degree of customer/server contact increases. E) None of these choices are correct.

24) Which of the following approaches to service design involves the customer to the greatest extent in providing a service (in effect making them “a partial employee”)?

A) B) C)

Production-line approach and self-service approach Personal-attention approach only Quality approach

D) E)

Do-it-yourself approach Self-service approach

25)

Which of the following is not a characteristic of a well-designed service system?

A) B) C)

It is user-friendly. It is cost-effective. It provides effective links between the back

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM office and the front office. D) It is structured to have consistency between organization and

department. E) Each element of the service system is consistent with the operating focus of the firm.

26) Every service has a service package, which is defined as a bundle of goods and services that is provided in some environment. This bundle consists of five features. Which of A) B) C)

Supporting facility Explicit goods Information

the following is not one of those features? D) E)

Explicit services Implicit services

27) Examples of this include an Internet website, a golf course, a ski lift, an airline, and an auto repair facility.

A) B) C)

Supporting facility Facilitating goods Information

D) E)

Explicit services Implicit services

28) firm.

Examples of this include golf clubs, skis, beverages, auto parts, and services sold by the

A) B) C)

Supporting facility Facilitating goods Information

F. ROBERT JACOBS, 2024

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D) E)

Explicit services Implicit services

29)

Examples of this include detailed

descriptions of the items offered, tee-off times, weather reports, medical records, seat preferences, and item availability.

A) B) C)

Supporting facility Facilitating goods Information

D) E)

Explicit services Implicit services

30) Examples of this include the response time of an ambulance, air-conditioning in a hotel room, and a smooth- running car after a tune-up.

A) B) C)

Supporting facility Facilitating goods Information

D) E)

Explicit services Implicit services

31) Examples of this include the status of a degree from an Ivy League school, the privacy of a loan office, and worry- free auto repair.

A) B) C)

Supporting facility Facilitating goods Information

D) E)

Explicit services Implicit services

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32) Most services consist of a bundle of goods and services known as the service package, which is the major output of the development process. ⊚

true

⊚

false

33) Effective management of services requires a clear focus on understanding operations, so much so that it may even require the exclusion of consideration of marketing or personnel. ⊚

true

⊚

false

34)

Services often take the form of repeated encounters involving face-to-face interactions.

⊚

true

⊚

false

35) The term "encounter" is defined by Webster's Dictionary as "meeting in conflict or battle" and is used to also designate meetings between consumers and service systems. ⊚

true

⊚

false

36) A service business is an organization whose primary business requires interaction with customers to produce the service. ⊚

true

⊚

false

37) The customer is (or should be) the second most important focal point of all decisions in a service organization. ⊚

true

⊚

false

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38) A service system with a high degree of customer contact is less difficult to control than a low degree of ⊚

true

⊚

false

39) When recovering from a defective service encounter, a botched task calls for an apology. ⊚

true

⊚

false

40) When recovering from a defective service encounter, a botched task calls for material compensation. ⊚

true

⊚

false

41) When recovering from a defective service encounter, poor treatment from a server calls for an apology. customer contact service system.

⊚

true

⊚

false

42) When recovering from a defective service encounter, a poor treatment from a server calls for material compensation. ⊚

true

⊚

false

43) Because little or no inventory is carried in a service operation, it is easy to separate the operations management

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM ⊚

true

⊚

false

44) It is difficult to separate the operations management functions from marketing in services. ⊚

true

⊚

false

45)

Marketing is responsible for fulfilling the service guarantee.

functions from marketing in services.

⊚

true

⊚

false

46)

The service-system design matrix identifies five alternative forms of service encounters.

⊚

true

⊚

false

47)

The service-system design matrix identifies six forms of service encounters.

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM ⊚

true

⊚

false

48)

The "service blueprint" is a classification of services.

⊚

true

⊚

false

49) Poka-yokes are procedures that block the inevitable mistake from becoming a service defect. ⊚

true

⊚

false

50)

Poka-yoke is roughly translated from Japanese as "quality management."

⊚

true

51)

Poka-yoke is roughly translated from Japanese as "avoid mistakes."

⊚

true

⊚

false

⊚

false

52) Service guarantees can be used at the service design stage to focus the firm's delivery system on the things it must ⊚

true

⊚

false

53)

One characteristic of a well-designed service system is that it is cost-effective.

⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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54)

It is not necessary that a well-designed service system be robust.

⊚

true

⊚

false

do well to satisfy the customer.

55)

Choosing how to

accommodate customer induced variability in a service business is the decision of the front-line service provider. ⊚

true

⊚

false

56)

An important aspect of service products is that they cannot be inventoried.

⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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57)

Service strategy begins by integrating operations and strategy.

⊚

true

⊚

false

58) The "back end" of the service encounter is more important than the "front end" because the "back end" is ⊚

true

⊚

false

59) "Combine the pain" is an application of behavioral science to service encounters. It means that, when something is going wrong for a group of customers, it is better to totally enrage one or a very few customers rather than slightly where most service providers are paid.

annoying a large number of customers. ⊚

true

⊚

false

60) A characteristic of a well-designed service system is that it manages the evidence of service quality in such a way that customers are aware of the value of the service provided. ⊚ true ⊚ false

61)

Customer contact refers to creation of the service.

⊚ true ⊚ false

F. ROBERT JACOBS, 2024

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62) The work process involved in providing the service must involve the physical presence of the customer in the system. ⊚

true

⊚

false

63)

A supporting facility is the same thing as a facilitating good.

⊚

true

⊚

false

64) A facilitating good is something purchased or consumed by the buyer or items provided by the customer. ⊚

true

⊚

false

65) An implicit service implies psychological benefits that the customer may sense only vaguely. ⊚

true

⊚

false

66)

An explicit service is readily observable by the senses.

⊚

true

⊚

false

67)

Implicit services are not part of the service package.

⊚

true

⊚

false

68) In services, the product is developed first and then the process to produce the service is developed. F. ROBERT JACOBS, 2024

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⊚

true

⊚

false

69) The service triangle is completely made up of the service strategy, support system, and the customer. ⊚

true

⊚

false

70)

All services need to be located near the customer.

⊚

true

⊚

false

71) All services have the customer in the production schedule and so the customer must be accommodated. ⊚

true

⊚

false

72)

To avoid lost sales, service capacity must be set to match peak demand.

⊚

true

⊚

false

Answer Key Test name: Chapter

09 Test Bank 1) 2) 3) 4) 5) 6) 7) 8) 9) 10)

A E B C E A B B D B F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 11) 12) 13) 14) 15) 16) 17) 18) 19)

D B A D B C B E B

20)

21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) 40)

B C D E D B A B C D E TRUE FALSE TRUE TRUE TRUE FALSE FALSE FALSE TRUE

41)

TRUE

42) 43) 44) 45) 46) 47) 48) 49) 50) 51) 52) 53) 54) 55)

FALSE FALSE TRUE FALSE FALSE TRUE FALSE TRUE FALSE TRUE TRUE TRUE FALSE FALSE

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 56) 57) 58) 59) 60) 61)

TRUE FALSE FALSE FALSE TRUE FALSE

62)

FALSE

63) 64) 65) 66) 67) 68) 69) 70) 71) 72)

FALSE TRUE TRUE TRUE FALSE FALSE FALSE FALSE FALSE TRUE

Student name: 1) Which of the following is a suggestion for managing queues that is mentioned in the textbook?

A) B) C) D)

Put up a serpentine lane to keep people from jumping ahead in line. Use humor to defuse a potentially irritating situation. Segment the customers. Assure customers that the wait is fair, and inform

them of the queue discipline. E) Tell people in the queue that each will be served as soon as possible.

2) Which of the following is not a suggestion for managing queues presented in the textbook?

A) B) C)

Try to divert your customer's attention when waiting. Segment the customers. Encourage customers to come during the slack periods.

D) E)

Train your people to be friendly. Periodically close the service channel to temporarily disperse the line.

F. ROBERT JACOBS, 2024

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Which of the following is a suggestion for managing queues presented in the textbook?

A) B) C) D)

Train your servers to be friendly. Tell customers that the line should encourage them to come during slack periods. Give each customer a number. Periodically close the service channel to

temporarily disperse the line. E) Use humor to defuse a potentially irritating situation.

Which of the following are the three major

components of a queuing

A) The source population, how customers exit the system, and the queuing discipline B) The number of servers, the service speed, and the waiting line C) The source population, how the customer exits the system, and the servicing system D) The source population and the way customers arrive at the system, the serving systems, and how customers exit the system E) The service speed, the queue discipline, and the waiting line

5) Which of the following is a suggestion for managing queues that is mentioned in the textbook?

A) B) C) D)

Put up a serpentine lane to keep people from jumping ahead in line. Use humor to defuse a potentially irritating situation. Train your servers to be friendly. Assure customers that the wait is fair, and inform

them of the queue discipline. E) Tell people in the queue that each will be served as soon as possible.

6) Which of the following is not a suggestion for managing queues presented in the textbook?

A) B) C) D)

Train your servers to be friendly. Segment the customers. Determine an acceptable waiting time for your customers. Inform your customers of what to expect.

Encourage customers to come during slack periods.

F. ROBERT JACOBS, 2024

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7) In essence, a queuing system includes several major components. Which of the following is not one of them?

A) B) C)

Source population Servicing system How the customer exits the system

D) E)

The queue discipline None of these choices are correct.

People waiting to place their order at a fast-food

room

Taxpayers

restaurant B) The departmental faculty in line at the copier C) People waiting in line at an ATM D) Patients seeking help in a hospital emergency calling for assistance from the IRS

Which of the following is not a queue discipline discussed in the textbook?

A) B) C)

First come, first served Last in, first out Limited needs

D) E) first

Shortest processing time Best customer

10)

Which of the following queue disciplines is discussed in the textbook?

Emergencies first

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM B) C)

Garner-Whitten formula Newest customer first

D) E)

Patient customers last None of these choices are correct.

11) Buying a ticket for a college football game where there are multiple windows at which to buy the ticket features A) B) C)

Single channel, single phase Single channel, multiphase Multichannel, single phase

which type of queuing system line structure? D) Multichannel, multiphase E) None of these choices are correct.

12) Buying food at a large food store with multiple checkout counters features which type of queuing system line structure?

A) B) C)

Single channel, single phase Single channel, multiphase Multichannel, single phase

D) E)

Multichannel, multiphase None of these choices are correct.

13) Getting an autograph from a famous person might involve standing in which type of queuing line structure?

A) B) C)

Single channel, single phase Single channel, multiphase Multichannel, single phase

D) E)

Multichannel, multiphase None of these choices are correct.

F. ROBERT JACOBS, 2024

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14) In a college registration process, several department heads have to approve an individual student's semester course A) B) C)

Single channel, single phase Single channel, multiphase Multichannel, single phase

load. What is the queuing system line structure? D) Multichannel, multiphase E) None of these choices are correct.

15) Standing in line to buy a ticket for a movie where there are multiple windows at which to buy tickets is which A) B) C)

Single channel, single phase Single channel, multiphase Multichannel, single phase

type of queuing system line structure? D) Multichannel, multiphase E) None of these choices are correct.

16) A roller-coaster ride in an amusement park employs which type of queuing system line structure?

A) B) C)

Single channel, single phase Single channel, multiphase Multichannel, single phase

D) E)

Multichannel, multiphase None of these choices are correct.

17) 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

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM B) C)

Single channel, multiphase Multichannel, single phase

D) E)

Multichannel, multiphase None of these choices are correct.

18) Machine breakdown and repair in a 12-machine factory having three repair mechanics would develop which type of queuing system line structure concerning machine breakdowns?

A) B) C)

Single channel, single phase Single channel, multiphase Multichannel, single phase

D) E)

Multichannel, multiphase None of these choices are correct.

19)

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?

A) B) C)

D) 0.25 hour 2 hours E) None of these 1 hour choices are correct. 0.5 hour

20) For an infinite queuing situation, if the arrival rate for loading trucks is 5 trucks per hour, what is the mean time between arrivals? D) 0.1 hour 5 hours E)

A) None of these B) C) 2.5 hours 0.2 hour choices are correct.

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 21) A company is concerned about the number of customers who have to wait for service in its customer service department. Assume the rate at which customers are serviced is 12 per hour. Using the infinite queuing notion for the models presented in the textbook, which of the following is the mean time between arrivals?

A) 12 minutes D) 1 minute E) None of these B) C) 6 minutes 2 minutes choices are correct.

22) In modeling a simulation, random numbers from 00 to 99 are assigned with the intervals determined from frequency distributions for each behavior occurrence. Assume there are two behaviors, A and B, out of 100 tallies. On Behavior A you record 45 tallies, and on Behavior B you record 55 tallies. Which of the following is a correct random-number interval for Behavior A?

A) B)

00 to 45 00 to 44

C) D) E)

56 to 99 55 to 100 45 to 100

23) In modeling a simulation, random numbers from 00 to 99 are assigned with the intervals determined from frequency distributions for each behavior occurrence. Assume there are two behaviors, X and Y, out of 50 tallies. On Behavior X you record 20 tallies, and on Behavior Y you record 30 tallies. Which of the following is a correct random-number interval for Behavior X?

A) B)

00 to 19 01 to 20

C) D) E)

00 to 39 41 to 61 45 to 100

24) A small vendor has either a good day of sales with an average of $1,000 or a bad day with an average of only $500 for the day. To simulate these outcomes, random numbers from 00 to 99 should be assigned with the intervals determined from the frequency distribution. If,

F. ROBERT JACOBS, 2024

1 7 7

https://www.stuvia.com/user/AnswersCOM during the last 100 days, the vendor had 27 good days and 73 bad days, which of the following is a correct random-number interval for a bad day?

A) B)

28 to 99 27 to 73

C) D) E)

27 to 100 27 to 99 00 to 26

25)

In modeling a simulation, random numbers from 00 to 99 are

assigned with the intervals determined from frequency distributions for each behavior occurrence. Assume there are two behaviors, A and B, out of 50 tallies. On Behavior A you record 15 tallies, and on Behavior B you record 35 tallies. Which of the following is a correct random-number interval for Behavior A (Choose the most appropriate answer.).I. 00 to A) I B) II

29 II. III. IV.

00 to 14 70 to 99 35 to 49

C) III D) IV E)

I or III

26) Assuming a 24 hour operation in a warehouse, and an arrival following Poisson distribution with mean rate of 36 per day and service (unloading using a single bay) following exponential distribution with a rate of 48 trucks per day, answer the following question. What is the expected waiting A) B)

2 hours 1 hour

time in the system (in hours) for a typical truck?

F. ROBERT JACOBS, 2024

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C) D) E)

1.5 hours 0.25 hour 0.5 hour

27) Assuming a 24 hour operation in a warehouse, and an arrival following Poisson distribution with mean rate of 36 per day and service (unloading using a single bay) following exponential with a rate of 48 trucks per day, answer the following question. What is the expected number of trucks in the system?

A) B)

2.25 1.5

C) 2 D) 1 E) 3

28)

Customers arrive at

a single self-serve coffee machine in a busy mall at the rate of 20 per hour, following Poisson distribution. Each customer takes exactly 90 seconds to get his or her coffee. What is the A) B)

1.0 1.5

expected number of customers in queue at this coffee machine? C) 0.5 D) 2.0 E) 3.0

29) Customers arrive at a common queue at the coffee station with two identical coffee machines in a busy mall at the rate of 48 per hour, following Poisson distribution. Each customer mixes his or her specialty coffee taking 2 minutes on an average following an exponential process. What is the A) B)

infinity 2.844

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM expected number of customers in the system at this coffee station?

C) D) E)

2.444 4.444 3

30)

What is the mean of the Poisson distribution?

A) B)

λ λ2

C) D) E)

1/λ 1/λ2 λ!

31)

What is the variance of the Poisson distribution?

A) B)

λ λ2

C) D) E)

1/λ 1/λ2 λ!

32)

What is the mean of the exponential distribution?

A) B)

λ λ2

C) D)

1/λ 1/λ2

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM E)

λ!

33)

What is the variance of the exponential distribution?

A) B)

λ λ2

C) D) E)

1/λ 1/λ2 λ!

34) These types of impatient customers arrive, survey both the service facility and the length of the line, and then decide to leave. What is this called?

A) B)

Quitters Reversing

C) D) E)

Reneging Balking Bolting

35) These types of impatient customers arrive, view the situation, join the waiting line, and then, after some period of time, depart. What is this called?

A) B)

Quitters Reversing

F. ROBERT JACOBS, 2024

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C) D) E)

Reneging Balking Bolting

36) A)

This Excel function always returns a number between zero and one.

NORMAL(0,1) B) RANDOM() C) RANDBETWEEN() D) E)

RAND(0,1) RAND()

37)

This Excel function always returns a number between negative and positive five.

NORMAL(−5,5)

RANDOM(−5,5)

RANDBETWEEN(−5,5)

RAND(−5,5)

RAND()*5

38) The central problem in virtually every waiting line situation is a decision balancing the costs of adding services with the costs of waiting. ⊚

true

⊚

false

39) Ideally, in waiting line or queuing analysis, we want to balance the cost of service capacity with the cost of waiting. ⊚

true

F. ROBERT JACOBS, 2024

1 8 2

https://www.stuvia.com/user/AnswersCOM ⊚

false

40) The customer arrivals in a queuing system come almost exclusively from finite populations. ⊚

true

⊚

false

41) The customer arrivals in a queuing system come almost exclusively from infinite populations. ⊚

true

⊚

false

42) A finite population in waiting line management refers to a population that is large enough in relation to the service system so that the change in population size caused by subtractions or additions to the population does not ⊚

true

⊚

false

43) An infinite population in waiting line management refers to a population that is large enough in relation to the service system so that the change in population size caused by subtractions or additions to the population does not ⊚

true

⊚

false

44) A variable arrival rate is more common in waiting line management than a constant arrival rate. significantly affect the system probabilities.

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM

significantly affect the system probabilities.

⊚

true

⊚

false

45) rate.

A constant arrival rate is more common in productive systems than a variable arrival

⊚

true

⊚

false

46)

Arrival characteristics in a queuing problem analysis include the length of the queue.

⊚

true

⊚

false

47) The Poisson probability distribution is used in waiting line management when one is interested in the number of ⊚

true

⊚

false

48) The demand on a hospital's emergency medical services is considered a controllable arrival pattern of the calling population. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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arrivals to a queue during some fixed time period.

49)

The demand on a hospital's emergency

medical services is considered an uncontrollable arrival pattern of the calling population. ⊚

true

⊚

false

50) Gas stations, loading docks, and parking lots have infinite potential length of lines for their respective queuing systems. ⊚

true

⊚

false

51)

Highest-profit customer first is a queue discipline discussed in the textbook.

⊚

true

⊚

false

52)

Longest waiting time in line is a queue discipline discussed in the textbook.

⊚

true

53)

Best customer last is a queue discipline discussed in the textbook.

⊚

false

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM ⊚

true

⊚

false

54)

A car wash is an example of a single-channel, multiphase queuing system.

⊚

true

⊚

false

55) A tellers' window in a bank is an example of a single- channel, multiphase queuing system. ⊚

true

⊚

false

56) The admissions system in a hospital for patients is an example of a single-channel, single-phase queuing system. ⊚

true

⊚

false

57)

There are different queuing models to fit different queuing situations.

⊚

true

⊚

false

58) In a practical sense, an infinite queue is one that includes every possible member of the served population.

⊚

true

⊚

false

59)

In a waiting line situation, multiple lines occur only when there are multiple servers.

⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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60) The term "queue discipline" involves the art of controlling surly and unruly customers who have become irritated by waiting. ⊚

true

⊚

false

61) In a practical sense, a finite population is one that potentially would form a very long line in relation to the ⊚

true

⊚

false

62) In a department 25 machines are kept running by three operators who respond to randomly occurring equipment problems. An analyst who wanted to know how much production was being lost by machines waiting for service capacity of the serving system.

could use queuing theory analysis to find out.

⊚

true

⊚

false

63) In a department 25 machines are kept running by three operators who respond to randomly occurring equipment problems. When an operator is not immediately available for servicing a machine having a problem, the amount of production being lost by machines waiting for service increases. An analyst can use queuing theory analysis to determine whether to pay overtime to get an operator from a different shift or not. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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64) In a department, 25 machines are kept running by three operators who respond to randomly occurring equipment problems. An analyst wanting to know whether to add a fourth operator or downsize to two operators would be ⊚

true

⊚

false

65) Spreadsheet simulations have become obsolete due in part to specialized computer simulation languages like SLAM or SIMAN. ⊚

true

⊚

false

helped by using queuing theory analysis.

66)

Special-purpose simulation software is

specially built to run specific applications and may have provisions in manufacturing models to allow for specifying ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 67) While spreadsheets can be somewhat useful for a variety of simulation problems, they can be confusing and are vulnerable to several drawbacks, including weak routines for randomnumber selection. ⊚

true

⊚

false

68) A constant arrival distribution means that customers continue to arrive for the entire time the system is open. ⊚

true

⊚

false

69)

Arrival patterns can be influenced or even controlled to a certain degree.

the number of workcenters, their descriptions, arrival rates, and even batch sizes.

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM ⊚

true

⊚

false

70)

A family arriving at a motel would be considered a batch arrival.

⊚

true

⊚

false

71)

Balking and reneging mean the same thing.

⊚

true

⊚

false

72) The rules of selection for a queue have a relatively minor impact on its overall performance. ⊚

true

⊚

false

73) There is one major practical problem in using any queuing discipline: ensuring that customers know and follow the rule. ⊚

true

⊚

false

74) Waiting line formulas generally specify service rate as the capacity of the server in number of units per time period.

⊚

true

⊚

false

75)

When service times are random, they can be approximated by the Poisson distribution.

⊚

true

⊚

false F. ROBERT JACOBS, 2024

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76)

The spreadsheet function RAND() returns a number between negative and positive one.

⊚

true

⊚

false

77) The spreadsheet function RANDBETWEEN() can return a number between any two numbers between positive and negative infinity. ⊚

true

⊚

false

78)

Simulation models can be classified as continuous or discrete.

⊚

true

⊚

false

Answer Key

Test name: Chapter 10 Test Bank

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19)

C E A D C C D B B A C C A B C A A C C

F. ROBERT JACOBS, 2024

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20)

21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) 40)

E B C D E A E C D A A C D D C E A TRUE TRUE FALSE

41)

FALSE

42) 43) 44) 45) 46) 47) 48) 49) 50) 51) 52) 53) 54) 55) 56) 57) 58) 59) 60) 61)

FALSE TRUE TRUE FALSE FALSE TRUE FALSE TRUE FALSE TRUE TRUE FALSE TRUE FALSE FALSE TRUE FALSE TRUE FALSE FALSE

62)

TRUE

F. ROBERT JACOBS, 2024

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63) 64) 65) 66) 67) 68) 69) 70) 71) 72) 73) 74) 75) 76) 77) 78)

TRUE TRUE FALSE TRUE FALSE FALSE TRUE FALSE FALSE FALSE FALSE TRUE FALSE FALSE TRUE TRUE

Student name: 1)

Which of the following best describes the term "cycle time"?

units use

Average time between completions of successive

Ratio of the time a resource is activated over its

Can be no more that 60 minutes

D) E)

The same as utilization The labor content of the item being measured

A process flowchart uses symbols to represent which of the following?

A) B) C)

Factory location Warehouse space available Workforce schedules

D) E)

Flows of material or customers Data analysis

F. ROBERT JACOBS, 2024

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3) A process flowchart uses which of the following symbols to represent a decision point in a flow diagram?

A) B) C)

Rectangle Arrow Inverted triangle

D) E)

Diamond A dashed line

4) A process flowchart uses which of the following symbols to represent storage areas or queues in a flow diagram?

A) B) C)

Rectangle Arrow Inverted triangle

D) E)

Diamond A dashed line

5) A process flowchart uses which of the following symbols to represent tasks or operations in a flow diagram?

A) B) C)

Rectangle Arrow Inverted triangle

D) E)

Diamond A dashed line

6) A process flowchart uses which of the following symbols to represent flows of material or customers in a flow diagram?

A) B) C)

Rectangle Arrow Inverted triangle

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Diamond A dashed line

7) Which of the following production process terms best describes the situation when activities in a stage of production A) B)

Blocking Buffering

must stop because there is no work? C) Starving D) Buffer E) Setup time

An advantage of a make-to-stock process is which of the following?

A) B) C) D)

It features rapid delivery of a standard product. All units of output are unique. It responds directly to customer orders. It allows the firm to avoid inventory costs.

It combines the best features of other processes.

9) Which of the following terms describes the time a unit spends actually being worked on together with the time spent waiting in a queue?

A) B)

Cycle time Flow time

C) D) E)

Run time Setup time Efficiency

10)

According to Little's law, which of the following ratios is used to find flow time?

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A) B) C)

Cycle time/Process time Throughput time/Process velocity Process velocity/Throughput time

D) Inventory/Throughput rate E) Value-added time/Process velocity

11)

According to Little's law, which of the following can be used to estimate inventory?

A) B) C)

Process time ÷ Cycle time Throughput rate × Flow time Process velocity ÷ Flow time

D) Setup time ÷ Throughput rate E) Value-added time ÷ Process velocity

12)

To reduce process flow time, you might try which of the following actions?

A) B)

Perform activities in parallel. Change the sequence of activities.

C) D)

Reduce interruptions. Acquire

additional equipment. E) All of these choices are correct.

13)

To reduce process throughput time, you might try which of the following actions?

A) B)

Outsource activities. Change the sequence of activities.

F. ROBERT JACOBS, 2024

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Improve teamwork.

D) E)

Reduce management interference. Introduce incentive pay.

14) The long-term relationship among the inventory, throughput, and flow time of a production system in steady A) B) C)

Peterson's rule Murphy's law Little's law

state is called which of the following? D) Robert's rule E) None of these choices are correct.

15) Consider a three sequentially stepped process named as Process A, Process B, and Process C. Input comes into Process A. Output from A goes into Process B. Output from B goes into Process C. Output of C is the final output. Suppose that it takes 2 minutes per unit in Process A, 3 minutes per unit in Process B and 1 minute per unit in Process C. Suppose A) B) C) D)

in front of Process A in front of Process B in front of Process C in front of both Process B and Process C

further that Process A receives input at the rate of 30 per hour. Where would you place a buffer?

None of these choices are correct.

16) Consider a three sequentially stepped process named as Process A, Process B, and Process C. Input comes into Process A. Output from A goes into Process B. Output from B goes into Process C. Output of C is the final output. Suppose that it takes 2 minutes per unit in Process A, 3 minutes per unit in Process B and 1 minute per unit in Process C. Suppose A) B) C)

Process A Process B Process C

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM further that Process A receives input at the rate of 30 per hour. Which process will be experiencing starving? D) E)

Process B and Process C None of these choices are correct.

17) Consider a three sequentially stepped process named as Process A, Process B, and Process C. Input comes into Process A. Output from A goes into Process B. Output from B goes into Process C. Output of C is the final output. Suppose that it takes 2 minutes per unit in Process A, 3 minutes per A) B) C)

30 per hour 60 per hour 20 per hour

unit in Process B and 1 minute per unit in Process C. What will be maximum steady state output from this system? D) 10 per hour E) Cannot tell since it depends on the input rate

18) Consider a business that can be run using a make-to- stock or make-to-order process. Further suppose that your demand is 10,000 per month and is spread out during the month. Capacity of both processes is 15,000 per month. Based A) B) C)

Choose make-to-stock process. Choose make-to-order process. Install an assembly line.

only on this information, what would be the best choice? D) E)

Raise prices in order to increase demand. None of these choices are correct.

19) Which of the following production process terms best describes a technique that allows the stages in a production A) B)

Blocking Buffering

process to operate independently? C) Starving D) Phase buffer

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Setup time

20) Which of the following production process terms best describes a situation where the activities in the stage must stop because there is no place to deposit the item just completed?

A) B)

Blocking Buffering

C) D) E)

Starving Phase buffer Setup time

21) Which of the following terms describes a ratio of the actual output of a process relative to some standard.

A) B)

Cycle time Flow time

C) D) E)

Run time Setup time Efficiency

22)

Which of the following terms describes the time required to produce a batch of parts.

A) B)

Cycle time Flow time

C) D) E)

Run time Setup time Efficiency

23) Which of the following terms describes the time required to prepare a machine to make a particular item.

Cycle time

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Flow time

C) D) E)

Run time Setup time Efficiency

24) Which of the following terms describes sum of the setup time and run time for a batch of parts that are run on a machine.

A) B)

Cycle time Operation time

C) D) E)

Run time Setup time Efficiency

25) A "process" is any part of an organization that takes inputs and transforms them into outputs that, hopefully, are of greater value to the organization than the original inputs. ⊚

true

⊚

false

26) Cycle time is the ratio of the time that a resource is actually activated relative to the time that it is available for use. ⊚

true

⊚

false

27) A diamond is conventionally used in a process flowchart to represent a storage area or queue.

⊚

true

⊚

false

28) A rectangle is conventionally used in a process flowchart to represent a task or operation. ⊚

true

F. ROBERT JACOBS, 2024

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false

29) A triangle is conventionally used in a process flowchart to represent a storage area or queue. ⊚

true

⊚

false

30) Buffering in a production process refers to a storage area between stages of production activity where output of a stage is placed prior to being used in a "downstream" stage. ⊚

true

⊚

false

31) Blocking in production processes is when activities in a stage must continue because there is no place to deposit completed items. ⊚

true

⊚

false

32) One way to categorize a process is to determine whether it is a multiple-stage or a single-stage process. ⊚

true

⊚

false

33)

A bottleneck occurs when a stage in a production process is starving.

⊚

true

⊚

false

34)

When a make-to-order production process is used, production is based on forecasts.

⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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McDonald's fast-food restaurants use a make-to-order production process.

⊚

true

⊚

false

36) Process analysis can help answer many important questions such as how many customers can a process handle per hour.

⊚

true

⊚

false

37) Process analysis can help answer many important questions such as why change in a process is necessary. ⊚

true

⊚

false

38) Hybrid processes combine features of make-to-order and make-to-stock production processes. ⊚

true

⊚

false

39)

A service operation by its very nature is a make-to- stock type of production process.

⊚

true

⊚

false

40) Make-to-order production processes are well suited for high-volume production of a standardized product. ⊚

true

⊚

false

41) Pacing in production processes refers to the fixed timing of the movement of items through the process. F. ROBERT JACOBS, 2024

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true

⊚

false

42) When we use a make-to-stock production process, we control our production based on a desired amount of finished goods inventory. ⊚ true ⊚ false

43) Make-to-stock production processes can easily handle requests for customized product features. ⊚

true

⊚

false

44)

Productivity in a production process can be measured by the ratio of output to input.

⊚

true

⊚

false

45)

Utilization of a production process is the ratio of output to input.

⊚

true

⊚

false

46) Utilization of a production process is the ratio of time that a resource is actually being used relative to the time it is available for use. ⊚

true

⊚

false

47) Benchmarking refers to the practice of comparing the production metrics of one firm with the production metrics of another. ⊚

true

⊚

false

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48) Efficiency of a production process is the ratio of the actual output of a process to some standard. ⊚

true

⊚

false

49) Throughput rate of a production process is the amount of time a unit spends actually being worked on. ⊚

true

⊚

false

50)

Process velocity is the ratio of the total throughput time to the value added time.

⊚

true

⊚

false

51) If you want to reduce process flow time, it has been suggested that you can perform activities in the process in parallel. ⊚

true

⊚

false

52) If you want to reduce process flow time, it has been suggested that you can reduce interruptions in the production process. ⊚

true

⊚

false

53)

Setup time is the time required to prepare a process to produce a particular item.

⊚

true

⊚

false

54)

Run time is calculated by multiplying the number of units in a batch by the setup time.

F. ROBERT JACOBS, 2024

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⊚

true

⊚

false

55)

Inventory turn is the cost of goods sold divided by the average inventory value.

⊚

true

⊚

false

56) Inventory turn is a better measure than the total value of inventory for comparative purposes because it is a relative measure. ⊚

true

⊚

false

57) Little's law says there is a long-term relationship among the inventory, throughput, and flow time of a ⊚

true

⊚

false

58) Job design is defined as the function of specifying the work activities of an individual or group in an organizational setting. production system in steady state. ⊚

true

⊚

false

59) Methods Time Management (MTM) and Most Work Measurement System (MOST) are proprietary examples of ⊚

true

⊚

false

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60) A buffer refers to a storage area used to store finished goods prior to shipping them to the customer. ⊚

true

⊚

false

61)

Starving occurs when the firm must stop because there are no customer orders.

⊚

true

⊚

false

62) A process has three stages. Their capacities per hour are 45, 25, and 35 respectively. Due to its higher capacity, the first stage is the bottleneck. ⊚

true

⊚

false

63) The operation time is the sum of the setup time, run time, and transfer time for a batch of parts that are run on a machine. predetermined motion-time data systems (PMTSes).

⊚

true

⊚

false

64)

Cycle time and flow time mean about the same thing.

⊚

true

⊚

false

65) Value-added time is the total of all the time that work is being done on the unit plus all the transfer times. ⊚

true

⊚

false

66)

Little’s law states that Inventory = Throughput rate ÷ F. ROBERT JACOBS, 2024

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true

⊚

false

67) A job is said to be enlarged horizontally if the worker is involved in planning, organizing, and inspecting his or her own work. ⊚

true

⊚

false

68) A job is said to be enlarged vertically if the worker performs a greater number or variety of tasks. ⊚

true

⊚

false

Answer Key

Test name: Chapter 11 Test Bank

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19)

A D D C A B C A B D B E B C B C C B B

20)

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21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) 40)

E C D B TRUE FALSE FALSE TRUE TRUE TRUE FALSE TRUE FALSE FALSE FALSE TRUE FALSE TRUE FALSE FALSE

41)

TRUE

42) 43) 44) 45) 46) 47) 48) 49) 50) 51) 52) 53) 54) 55) 56) 57) 58) 59) 60) 61)

TRUE FALSE TRUE FALSE TRUE TRUE TRUE FALSE TRUE TRUE TRUE TRUE FALSE TRUE TRUE TRUE TRUE TRUE FALSE FALSE

62)

FALSE

63) 64)

FALSE TRUE

F. ROBERT JACOBS, 2024

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FALSE FALSE FALSE FALSE

Student name: 1) The philosophical leaders of the quality movement, Philip Crosby, W. Edwards Deming, and Joseph M. Juran, had the same general message about what it took to achieve outstanding quality. Which of the following was not part of that message?

A) B) C) D)

Quality is free Leadership from senior management Customer focus Total involvement of the workforce

Continuous improvement

2) The philosophical leaders of the quality movement, Philip Crosby, W. Edwards Deming, and Joseph M. Juran, had the same general message about what it took to achieve A) B) C)

Fourteen steps for quality management Quality is free Customer focus

outstanding quality. Which of the following was part of that message? D) Zero defects E) Six Sigma

3) An analytical tool used in Six Sigma quality improvement programs is which of the following?

A) B) C)

Leadership Continuous improvement Quick response

D) E)

Partnership diagrams Checksheets

4) A flowchart as part of a Six Sigma quality improvement process might be found in which DMAIC category?

F. ROBERT JACOBS, 2024

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A) B)

Define Measure

C) D) E)

Analyze Improve Control

5) A fishbone diagram as part of a Six Sigma quality improvement process might be found in which DMAIC category?

A) B)

Define Measure

C) D) E)

Analyze Improve Control

6) An opportunity flow diagram as part of a Six Sigma quality improvement process might be found in which DMAIC category?

A) B)

Define Measure

C) D) E)

Analyze Improve Control

7) A Pareto chart as part of a Six Sigma quality improvement process might be found in which DMAIC category?

A) B)

Define Measure

C) D)

Analyze Improve

F. ROBERT JACOBS, 2024

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Control

A) B) C)

Leadership Pareto charts Management by fact

D) E)

Continuous improvement Kaizen

9) Which of the following is not an analytical tool used in Six Sigma quality improvement programs?

A) B) C)

Flowcharts Run charts Control charts

D) E)

Pareto diagrams Decision diagrams

10) Failure mode and effect analysis is used in Six Sigma projects. It involves which of the following?

A) B) C)

Closely examining each rejected part to determine the cause A careful sampling plan Calculating a risk priority number for each possible failure

D) Reporting the effect each failure has had on a customer E) Multivariate testing

11) Design of experiments is a statistical methodology often used in Six Sigma projects. It aims to accomplish which of the following?

Keep careful track of the occurrences of each possible defect.

F. ROBERT JACOBS, 2024

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Determine the cause-and-effect relationships between process variables and output.

C) D)

Report defects to management on a Pareto chart. Carefully change each individual

process variable until the cause of a defect is found. E) Eliminate defects by finding out who or what is causing them.

12) The Malcolm Baldrige Award selection process helps improve quality and productivity by which of the following means?

A) B) C)

Stimulating foreign-based suppliers of American companies to improve quality Reporting quality levels among American firms Identifying American firms with the most difficult quality problems

D) E)

Providing feedback to applicants by the examiners Helping Baldrige award winners increase their sales

13) Which of the following are eligible companies to be considered for the Malcolm Baldrige Award?

A) B) C)

Small businesses Offshore suppliers to U.S. companies Firms operating only outside the United States

D) E)

State government agencies None of these choices are correct.

14)

Which of the following are not eligible to be considered for the Malcolm Baldrige Award?

A) B) C)

Small businesses Health care organizations Educational institutions

State highway patrol organizations

F. ROBERT JACOBS, 2024

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Universities

15)

The primary purpose of the Malcolm Baldrige

National Quality Award is

control A)

To encourage the spread of statistical quality

To improve human resource development and

management in manufacturing C) To help companies review and structure their quality programs D) To prove that American firms were competitive in quality E) To emphasize the use of quantitative methods in process management

16)

A) B) C)

DMAIC Customer and market focus Standardization

D) E)

Control Inspection protocols

17) The Malcolm Baldrige National Quality Award is given to organizations that have done which of the following?

A) B) C)

Instituted a Six Sigma approach to total quality control. Demonstrated a high level of product quality. Demonstrated outstanding quality in their products and processes.

D) E)

Have a world- class quality control function. Most significantly improved their product quality levels.

18)

Which of the following is not a category reported in applying for the Baldrige Award?

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A) B) C)

Corporate leadership Use of statistical quality control tools Business results

D) E)

Consumer and market focus Strategic planning

19) The dimension of design quality that concerns the sensory characteristics of the product is which of the following?

Features

B) C)

Serviceability Perceived

quality

Reputation

Aesthetics

20) The dimension of design quality that concerns the consistency of performance over time or the probability of failing is which of the following?

A) B) C)

Response Serviceability Reliability

quality D) E)

Reputation Perceived

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21) The dimension of design quality that concerns the primary product or service characteristics is which of the following?

A) B) C)

Response Serviceability Performance

quality D) E)

Reputation Perceived

22) The dimension of design quality that concerns the ease of repair is which of the following?

A) B) C)

Response Serviceability Performance

quality D) E)

Reputation Perceived

23) The dimension of design quality that concerns the past performance and reputation is which of the following?

Response

B) C)

Serviceability Performance

D) E)

Reputation Perceived quality

F. ROBERT JACOBS, 2024

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24) The dimension of design quality that concerns secondary characteristics is which of the following?

A) B) C)

Features Serviceability Reliability

quality D) E)

Reputation Perceived

25)

Which of the following is a dimension of design quality?

A) B) C)

Price Features Color

source D) E)

Weight Quality at the

26)

Which of the following is a dimension of design quality?

A) B) C)

Aesthetics Price Quality at the source

D) E)

Distribution Leadership

27) Which of the following are basic assumptions that justify an analysis of the costs of quality?

F. ROBERT JACOBS, 2024

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Failures are caused.

Prevention is more expensive.

C) D) E)

Performance can be learned. Rules of thumb don't always work. Appraisal costs are less than prevention costs.

28)

A cost of quality classification is which of the following?

A) B) C)

Material costs Prevention costs Variable overhead

costs D) E)

Direct labor Inventory

29) Which of the following is the cost of quality classification for costs such as scrap, rework, or repair?

A) B) C)

Appraisal costs Prevention costs External failure costs

D) E)

Internal failure costs Rework and wastage

30) Which of the following is the cost of quality classification for costs such as inspection, testing, and other tasks to ensure that the product or process is acceptable?

A) B) C)

Appraisal costs Prevention costs External failure costs

Internal failure costs

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31)

Which of the

following is the cost of quality classification for costs such as defects that pass through the system (e.g., customer warranty replacements, loss of customer or goodwill, handling A) B) C)

Appraisal costs Prevention costs External failure costs

complaints, and product repair)? D) Customer return cost E) Workmanship costs

32)

DPMO refers to

A) B) C)

defects per million parts. defects per many units. defects per million operations.

D) E)

defects per million opportunities. defects per million.

33)

A cause-and-effect diagram (choose the most inclusive answer)

A) B) C) D)

is also referred to as Show cause diagram. is also referred to as flow diagram. is also referred to as opportunity flow diagram. is one of the analytical tools in DMAIC analysis.

is also referred to as Pareto diagram.

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 34)

All except one of the following is an analytical tool for Six Sigma.

A) B) C)

Flowcharts Pareto Charts Cause-and-effect diagrams

D) DPMO analytics E) Process control charts

35) TQM was defined in the textbook as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer. ⊚

true

⊚

false

36)

TQM is an acronym meaning "total quality measurement."

⊚

true

⊚

false

37)

One tool used in total quality management is the run chart.

⊚

true

⊚

false

38)

One SPC tool used in total quality management is the Pareto chart.

⊚

true

⊚

false

39) An operational goal of total quality management is the careful design of the product or service.

⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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40) An operational goal of total quality management is ensuring that the organization's systems can consistently ⊚

true

⊚

false

41) An operational goal of total quality management is ensuring that the organization's systems will never produce a ⊚

true

⊚

false

42)

Design quality refers to the inherent value of the product in the marketplace.

⊚

true

⊚

false

43)

One of the tools common to all quality efforts is leadership.

produce the product or service as it is designed.

defective product or service.

F. ROBERT JACOBS, 2024

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⊚

true

⊚

false

44) In 1997, the Malcolm Baldrige National Quality Improvement Act established the U.S. annual award for total quality management. ⊚

true

⊚

false

45)

Conformance quality is a strategic decision for a firm.

⊚

true

⊚

false

46) The Malcolm Baldrige National Quality Award represents the U.S. government's endorsement of quality as an ⊚

true

⊚

false

47) While business organizations can seek to achieve the Malcolm Baldrige National Quality Award, universities cannot. essential part of successful business strategy. ⊚

true

⊚

false

48) While small business organizations can seek to achieve the Malcolm Baldrige National Quality Award, hospitals cannot.

F. ROBERT JACOBS, 2024

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⊚

true

⊚

false

49)

A quality guru named Philip Crosby defined quality as fitness for use.

⊚

true

⊚

false

50)

A quality guru named Philip Crosby defined quality as conformance to requirements.

⊚

true

⊚

false

51)

A quality guru named Joseph M. Juran defined quality as fitness for use.

⊚

true

⊚

false

52) A quality guru named Philip Crosby suggested that a general approach to quality management should involve prevention, not inspection. ⊚

true

⊚

false

53) A quality guru named Joseph M. Juran is well known for his program structured around "14 points" for management. ⊚

true

⊚

false

54) Fundamental to any quality program is the determination of quality specifications and the costs of achieving (or not achieving) those specifications. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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55) The term "conformance quality" refers to the relative level of performance of a product as compared to competing products. For instance, certain luxury sedans are said to be of "higher quality" than some low-priced sub-compact automobiles. ⊚

true

⊚

false

56) "Quality at the source" refers to the degree to which product or service design specifications are met. ⊚

true

⊚

false

57) Design quality in products refers to the degree to which product or service design specifications are met. ⊚

true

⊚

false

58) One of the definitions for the cost of quality is that it represents the costs attributable to the production of quality ⊚

true

⊚

false

59) Six Sigma refers to the philosophy and methods that some companies use to eliminate defects in their products and processes. ⊚

true

⊚

false

60) An opportunity flow diagram is used to separate the value-added from the non-valueadded steps in a process. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 61) An opportunity flow diagram is a time-sequenced chart showing plotted values measuring the flow of end product or components. that is not 100 percent perfect.

⊚

true

⊚

false

62) Philip Crosby states that the correct cost for a well-run quality management program should be under 2.5 percent of sales. ⊚

true

⊚

false

63) W. Edwards Deming states that the correct cost for a well-run quality management program should be under 0.5 percent of sales. ⊚

true

⊚

false

64)

The term CTQ is used in the "define (D)" portion of the DMAIC methodology.

⊚

true

⊚

false

65) The term CTQ stands for "cost through quality," which is another way to express Philip Crosby's idea that "quality is free." ⊚

true

⊚

false

66) Design of experiments (DOE) refers to work done before production of early model prototypes of a new product. ⊚

true

⊚

false

67)

Design of experiments (DOE) is sometimes referred to as multivariate testing.

⊚

true F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM ⊚

false

68) The International Organization for Standardization (ISO) is a specialized international agency recognized by ⊚

true

⊚

false

69)

ISO-9000 is primarily concerned with environmental management.

⊚

true

⊚

false

affiliates in more than 160 countries.

70)

ISO-14000 is primarily concerned with environmental management.

⊚

true

⊚

false

71) ISO standards ask a company first to document and implement its systems for quality management and then to verify, by means of an internal audit, the compliance of those ⊚

true

⊚

false

systems with the requirements of the standards.

Answer Key

Test name: Chapter 12 Test Bank

1) 2)

A C

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19)

E A C D B B E C B D A D C B C B E

20)

21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) 40)

C B E A B A A B D A C D D D TRUE FALSE TRUE TRUE TRUE TRUE

41)

FALSE

42) 43) 44) 45) 46) 47)

TRUE FALSE FALSE FALSE TRUE FALSE

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 48) 49) 50) 51) 52) 53) 54) 55) 56) 57) 58) 59) 60) 61)

FALSE FALSE TRUE TRUE TRUE FALSE TRUE FALSE FALSE FALSE TRUE TRUE TRUE FALSE

62)

TRUE

63) 64) 65) 66) 67) 68) 69) 70) 71)

FALSE TRUE FALSE FALSE TRUE TRUE FALSE TRUE FALSE

Student name: 1) In monitoring process quality, we might use which of the following statistics?

A) B) C) D)

Absolute values Percentage deviation from tolerance centers "k" values for the sample mean Logarithmic control intervals

Difference between the highest and lowest value in a sample

2) You have just used the capability index (Cpk) formulas to compute the two values "min [2, 2.5]." Which of the following is the proper interpretation of these numbers?

A) B) C)

The true capability index value is 2.5. The mean of the production process has shifted to the left of the design limits. The mean of the production process has shifted to the right of the design limits.

The mean has not shifted at all.

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM E)

The true capability index value is between 2 and 2.5.

3) You have just used the capability index (Cpk) formulas to compute the two values "min [1, 1]." Which of the following is the proper interpretation of these numbers?

A) B) C)

The true capability index value is exactly 1. The mean of the production process has shifted to the left of the design limits. The mean of the production process has shifted to the right of the design limits.

D) E)

The mean has not shifted at all. None of these choices are correct.

You have just used the capability index (Cpk)

formulas to compute the two values "min [1.5, 1]." Which of the following is the proper interpretation of these numbers?

A) B) C)

The true capability index value is 1. The mean of the production process has shifted to the left of the design limits. The mean of the production process has shifted to the right of the design limits.

D) E)

The mean has not shifted at all. The true capability index value is between 1.5 and 1.

5) Quality control charts usually have a central line and upper and lower control limit lines. Which of the following is not a reason that the process being monitored with the chart should be investigated?

A) A large number of plots are close to the upper or lower control lines. B) The behavior of the plots is erratic. C) A single point falls above or below the control limits. D) E)

There is a change in raw materials or operators. There is a run of five above the central line.

F. ROBERT JACOBS, 2024

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6) Quality control charts usually have a central line and upper and lower control limit lines. Which of the following is a reason that the process being monitored with the chart should be investigated?

limits.

line.

A single point falls above or below the control

B) C)

Behavior is normal. A large number of plots are on or near the central

D) E)

There is no real trend in any direction. There is a change in raw materials or operators.

7) If there are 12 total defects from 10 samples, each sample consisting of 100 individual items in a production process, which of the following is the fraction defective that A) B)

12 1.2

can be used in a p-chart for quality control purposes? C) D) E)

0.12 0.012 0.0012

8) If there are 40 total defects from 8 samples, each sample consisting of 200 individual items in a production process, which of the following is the fraction defective that A) B)

2.5 0.25

can be used in a p-chart for quality control purposes? C) D) E)

0.025 0.0025 0.00025

F. ROBERT JACOBS, 2024

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9) 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?

A) B) C)

D) 0.39 0.08 0.06

0.05 E) None of these choices are correct.

10) You want to determine the lower control line for a p-chart for quality control purposes. You take several samples of a size of 50

items in your production process. From the samples, you determine the fraction defective is 0.006 and the standard deviation is 0.001. If the desired confidence level is 99.7 percent, which of the following is the resulting LCL value for the line?

A) E) B) C)

0.0 D) 0.004 None of these 0.002 choices are correct. 0.003

11) You want to determine the control lines for a p-chart for quality control purposes. If the desired confidence level is 99 percent, which of the following values for "z" would you A) B) C)

0.99 2 2.58

use in computing the UCL and LCL? D) 3 E)

None of these choices are correct.

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 12) You want to determine the control lines for a p-chart for quality control purposes. If the total number of defects from all samples is 2,500, the number of samples is 100, and the sample size is 500, which of the following would be the A) B)

0.4900 0.2499

standard deviation used in developing the control lines? C) D) E)

0.0707 0.000315 0.000975

13) You want to determine the control lines for a p-chart for quality control purposes. If the total number of defects from all samples is 560, the number of samples is 70, and the sample size is 80, which of the following would be the standard deviation used in developing the control lines?

A) B)

0.9000 0.4556

C) D) E)

0.0335 0.0011 0.0112

14)

For which of the following should we use a p-chart to monitor process quality?

A) B) C)

Defective electrical switches Errors in the length of a pencil Weight errors in cans of soup

D) E)

Temperature of entrees in a restaurant Letter grades on a final examination

15)

For which of the following should we use a p-chart to monitor process quality?

The dimensions of brick entering a kiln

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM B) C)

Lengths of boards cut in a mill The weight of fluid in a container

D) E)

Grades in a freshman "pass/fail" course Temperatures in a classroom

16) For which of the following should we use an X-bar chart based on sample means to monitor process quality?

A) B) C) D)

Grades in a freshman "pass/fail" course Tire pressures in an auto assembly plant Vehicles passing emissions inspection Computer software errors

Number of units with missing operations

17)

For which of the following should we use an R-chartto monitor process quality?

A) B) C) D) E)

Grades in a freshman "pass/fail" course Tire pressures in an auto assembly plant Vehicles passing emissions inspection Computer software errors Number of units with missing operations

18)

For which of the following should we use an R-chart to monitor process quality?

A) B) C)

Weighing trucks at a highway inspection station to determine if they are overloaded Deciding whether an airliner has sufficient fuel for its trip Student grades measured from 1 to 100

D) E)

Determining whether vehicles from a motor pool will run Determining the accuracy of a forecast of "snow"

19) You are developing an X-bar chart based on sample means. You know the standard deviation of the sample means is 4, the desired confidence level is 99.7 percent, and the

F. ROBERT JACOBS, 2024

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average of the sample means is 24. Which of the following is your UCL?

A) B) C)

D) 36 24 12

4 E) None of these choices are correct.

20) You are developing an X-bar chart based on sample means. You know the standard deviation of the sample means is 4, the desired confidence level is 99 percent, and the A) B)

36 24

average of the sample means is 20. Which of the following is your LCL? C) 9.68 D) 16.79 E) 30.32

21) You want to develop a three-sigma R-chart. You know the average range is 5 based on several samples of size 10. Which of the following is the resulting UCL? A) 20.9

B) C)

8.9 7.02

D) E)

5 3.1

22) You want to develop a three-sigma R-chart. You know the average range is 12 based on several samples of size 6. A) B)

20.0 18.3

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM Which of the following is the resulting LCL? C) 7.02 D) 5.6 E) 0.0

23)

You are going to develop an X-bar chart based on

range statistics, and you are using a sample size of 12 for your charting purposes. Which of the following is the A2 factor for the X-bar chart? C) 0.27 A) 0.37 D) 0.22 B) 0.31 E) 0.18

24) You are going to develop an R-chart based on range statistics, and you are using a sample size of 9 for your charting purposes. Which of the following is the lower control A) B)

0.08 0.14

limit D3 factor for the chart? C) D) E)

0.18 0.22 0.29

25)

You are going to develop an R-chart based on range statistics, and you

are using a sample size of 15 for your charting purposes. Which of the following is the upper control limit D4 factor for the chart? C) 1.76 A) 1.65 D) 1.87 B) 1.70 E) 1.92

26) <p>Other things remaining the same, and assuming that is smaller than USL and larger than LSL, if the standard deviation (σ) of the process decreases, process capability index (Cpk) of the process willI. Stay the sameII. Will always A) I

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increaseIII. Will always decreaseIV. Will sometimes increase C) III D) E) IV

Either II or III

27) Consider a sampling plan with n = 40 and c = 1 and given Acceptable quality level (AQL), Lot tolerance percent defective (LTPD), producer’s risk (α) and consumer’s risk (β). Suppose that c is increased to 2, keeping AQL and LTPD A) B) C)

Always decrease Always increase Sometime decrease

unchanged, producer’s risk (α) will

D) E)

Stay the same None of these choices are correct.

28) Consider a sampling plan with n = 40 and c = 1 and given Acceptable quality level (AQL), Lot tolerance percent defective (LTPD), producer’s risk (α) and consumer’s risk (β). Suppose that c is increased to 2, keeping AQL and LTPD unchanged, consumer’s risk (β) will

A) B) C)

Always decrease Always increase Sometime decrease

D) E)

Stay the same None of these choices are correct.

29) Variation in production systems that is caused by factors that can be clearly identified and possibly even ⊚

true

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM ⊚

false

30) An example of assignable variation in a production system may be that workers are not identically trained. ⊚

true

⊚

false

31) An example of assignable variation in a production system may be that a machine is not adjusted properly. ⊚

true

⊚

false

32)

Variation that is inherent in a production process itself is called assignable variation.

⊚

true

⊚

false

managed is called assignable variation.

33)

Variation that is inherent in a production process itself is called common variation.

⊚

true

⊚

false

34)

It is impossible to have zero variability in production processes.

⊚

true

⊚

false

35)

Genichi Taguchi's view of the cost of quality is that variance is a discontinuous function.

⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 36)

The capability index is used to gauge economic changes in service systems.

⊚

true

⊚

false

37) Process control is concerned with monitoring quality after the product or service has been produced. ⊚

true

⊚

false

38) Statistical process control involves testing random samples of output from a process to determine whether the ⊚

true

⊚

false

39) Measurement by attributes means taking a sample, measuring the attribute in question, and determining the level of quality in the population from which the sample was drawn. process is producing items within a preselected range. ⊚

true

⊚

false

40) Attributes are those quality characteristics that are classified as either conforming or not conforming to specification. ⊚

true

⊚

false

41) A p-chart has upper and lower control limits expressed as lines on the chart. As long as the sample values fall between these two lines, there is no need to investigate process behavior. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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42)

The p-chart is only useful for sampling that deals with continuous variables.

⊚

true

⊚

false

43) The value for "z" used in quality control charts is based on the degree of confidence you want to have in the ⊚

true

⊚

false

44) If the fraction defective is 0.12 based on a sample size of 16, the standard deviation used in the p-chart is about 0.08. ⊚

true

⊚

false

45) If the fraction defective is 0.4 based on a sample size of 100, the standard deviation used in the p-chart is about 0.10. resulting UCL and LCL values. ⊚

true

⊚

false

46)

To obtain a 99.7 percent confidence level in a p-chart, we would use a value of 3 for "z."

⊚

true

⊚

false

47) Acceptance sampling is performed on goods that already exist to determine what percentage of items conforms to specifications.

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM ⊚

true

⊚

false

48) In acceptance sampling, the number of units in the sample (n) is determined by the interaction of the acceptable quality level (AQL), the lot tolerance percent defective (LTPD), the probability of rejecting a high-quality lot (alpha), ⊚

true

⊚

false

49) In acceptance sampling, the value for the acceptance number (c) is determined by the interaction of the acceptable quality level (AQL), the lot tolerance percent defective (LTPD), the probability of rejecting a high-quality lot (alpha), ⊚

true

⊚

false

50)

AQL stands for accepting questionable lots in production quality management.

and the probability of accepting a low-quality lot (beta).

⊚

true

⊚

false

51)

LTPD in acceptance sampling stands for lot tolerance for parts defective.

⊚

true

⊚

false

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52)

The Greek letter alpha is associated with consumer's risk.

⊚

true

⊚

false

53) The probability associated with rejecting a high- quality lot is denoted in acceptance sampling with the Greek letter alpha. ⊚

true

⊚

false

54) The probability associated with accepting a low- quality lot is denoted in acceptance sampling with the Greek letter alpha. ⊚

true

⊚

false

55) The producer's risk associated with rejecting a high- quality lot is denoted in acceptance sampling with the Greek letter beta. ⊚

true

⊚

false

56)

Total, 100 percent inspection can never be cost justified.

⊚

true

⊚

false

57)

One hundred percent inspection is justified when the cost of inspection is low.

⊚

true

⊚

false

58) Sampling plans are generally displayed graphically through the use of operating characteristic (OC) curves. F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM ⊚

true

⊚

false

59) The capability index (Cpk) calculates the percentage of items being produced within specifications.

⊚

true

⊚

false

60) The capability index (Cpk) indicates the position of the mean and tails of a process's variance relative to design specifications. ⊚

true

⊚

false

61) Standard practice in statistical process control for variables is to set control limits so that 95 percent of the sample means will fall within the UCL and the LCL. ⊚

true

⊚

false

62)

Designers establish specifications that solely define the target value only.

⊚

true

⊚

false

63)

A rule of thumb for p-charts is to use a sample size of at least 250.

⊚

true

⊚

false

64)

For R-charts, the typical sample size is 10–15.

⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM

65) In sampling variables, the actual measurements of the variable observed are used regardless of whether the unit is good or bad. ⊚

true

⊚

false

Answer Key

Test name: Chapter 13 Test Bank

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19)

E B D C D A D C B C C E C A D B B C A

20)

21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36)

B E C C A B A B TRUE TRUE TRUE FALSE TRUE TRUE FALSE FALSE

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 37) 38) 39) 40)

FALSE TRUE FALSE TRUE

41)

FALSE

42) 43) 44) 45) 46) 47) 48) 49) 50) 51) 52) 53) 54) 55) 56) 57) 58) 59) 60) 61)

FALSE TRUE TRUE FALSE TRUE TRUE TRUE TRUE FALSE FALSE FALSE TRUE FALSE FALSE FALSE FALSE TRUE FALSE TRUE FALSE

62)

FALSE

63) 64) 65)

FALSE FALSE TRUE

Student name: 1) Periodic inspection and repair designed to keep equipment reliable is called

A) B) C)

Kaizen Preventive maintenance Lean maintenance

D) Group technology E) Quality at the source

F. ROBERT JACOBS, 2024

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2) A philosophy in which similar parts are combined into families, and the processes required to make the parts are A) B) C)

Lean manufacturing Preventive maintenance Lean maintenance

arranged in a specialized workcell. D) Group technology E) Quality at the source

3) The philosophy of making workers personally responsible for the quality of their output and where workers are expected to make the part correctly the first time and to A) B) C)

Kaizen Personal responsibility Lean maintenance

stop the process immediately if there is a problem is called D) Worker inspection E) Quality at the source

A schedule that pulls material into final assembly at a constant rate is a

A) B)

Level schedule Lean schedule

C) D)

Uniform schedule Master

production schedule E) Kanban pull system

F. ROBERT JACOBS, 2024

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5) Calculating how many of each part were used in production and using these calculations to adjust actual onhand inventory balances is called

A) B) C)

Material requirements planning Backflushing Uniform plant loading

D) Master production schedule E) Kanban pull system

Smoothing the production flow to dampen schedule variation is called

A) B) C)

Level schedule Minimal loading Uniform plant loading

system D) E)

Lean loading Kanban pull

A signaling device used to control production is

A) B) C)

Lean signaling Backflush Uniform plant loading

D) E)

Kanban Kanban flag

8) is a

An inventory or production control system that uses a signaling device to regulate flows

F. ROBERT JACOBS, 2024

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A) B)

Level schedule Lean scheduling

loading C)

Uniform plant

Kanban

Kanban pull system

Which of the following are related to lean production?

A) B) C)

A philosophy of waste elimination Lean consumption Never running out of inventory

D) E)

The Wahei- Subaru method Full use of capacity

10) In the textbook, Toyota's Tai-ichi Ohno identified which of the following types of waste to be eliminated?

A) B) C)

Excess quality Overproduction Underproduction

D) E)

Environmental Overthinking

11) In the textbook, Toyota's Tai-ichi Ohno identified which of the following types of waste to be eliminated?

Underproduction

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM B) C)

Excess quality Preventive maintenance

defects D)

Product

Kaizen

12) In the textbook, Toyota's Tai-ichi Ohno identified which of the following types of waste to be eliminated?

A) B) C)

Excess quality Motion Excess capacity

D) Underproduction E) Excess demand

13)

Which of the following address elimination of waste under lean production?

A) B) C)

Info-matic warehouse networks Outsourced housekeeping Quality at the source

D) E)

Backflush Bottom-round management

14) Which of the following is an element that addresses elimination of waste under lean production?

A) B) C)

Production ahead of demand Group plant loading technology Kanban production control system

D) E)

Minimized run times Full capacity utilization

F. ROBERT JACOBS, 2024

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15)

Group technology (GT) is credited with which of the following benefits?

A) B) C)

Reducing waiting time between process operations Improving inventory discipline Reducing required workforce skills

D) E)

Improved labor relations Improved small group functioning

16)

Which of the following statements holds true for kanban production control systems?

A) B)

The authority to produce or supply additional parts comes from upstream operations. In a paperless control system, containers can be used instead of cards.

C) D)

The cards or containers make up the kanban push system. They require substantial quantitative

analysis prior to implementation. E) They have not been successful outside of Japan and the United States.

17) 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 A) B)

5 20

hours, what the number of kanban card sets is needed?

C) D) E)

27 30 34

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18) 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 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 A) B)

60 80

hours, what number of Kanban card sets is needed?

C) D) E)

90 120 150

19) 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?

B) C)

47 68

D) E)

89 94

20) You have been called in as a consultant to set up a kanban control system. The first thing you 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 1,200 per hour. You

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM estimate the safety stock should be set at 5 percent of the demand during lead time. The tote trays used as containers can hold 2 units of stock, and the A) B)

5,000 5,500

lead time to replenish an order is 10 hours. Which of the following is the number of kanban card sets necessary to support this situation? C) D) E)

6,300 6,500 7,000

21) In designing a lean production facility layout, a designer should do which of the following?

A) B) C) D)

Design for workflow balance. Locate flexible workstations offline. Link operations through a push system. Balance capacity using job shop analysis.

Always keep operations on a single floor of the factory.

22) When implementing a lean production system, a stabilized schedule is achieved using which of the following?

A) B)

Level scheduling Demand pull

sizes D)

Reduced lot

Bottom-round

Freeze window

23)

To implement lean production schedules, a firm would do which of the following?

Have excess capacity.

management

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM B) C)

Force demand. Hire a consultant.

D) E)

Achieve bottom-up management. Implement kanban groups.

24) In implementing a lean production system, you should work with suppliers to do which of the following?

A) B) C)

Open facilities near your factory. Focus workstation capacities. Backflush.

D) Provide quality at the source. E) Reduce lead times.

25) In implementing a lean production system you should work with suppliers to do which of the following?

A) B) C) D)

Calculate lead times. Use quality circles. Freeze windows. Make frequent deliveries.

Achieve bottom-round management.

26) To implement a flow process in developing a lean system a firm might do which of the following? D) Eliminate A) Improve capacity utilization. B) Build product in anticipation of demand. C) Reduce setup/changeover time.

some fixed costs. E) Implement groupware.

F. ROBERT JACOBS, 2024

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27)

To develop a lean manufacturing system a firm might do which of the following?

A) B) C)

Eliminate anything that does not add value for the customer. Standardize product configurations. Process design with product design.

D) E)

Adopt a kaizen philosophy. Implement top-down management controls.

28) Imagine comparing a manufacturing operation using regular lot-sizing and the same operation with a kanban/lean production approach. What would be your expectations of the difference between the total cost (i.e., inventory holding costs A) B) C) D)

Inventory holding cost will increase nonlinearly with inventory. Total costs will be lower for the regular lot-size operation. Total costs will be lower for the kanban/lean production operation. The order quantity will be larger for the

+ setup/ordering costs) of each?

kanban/lean production approach. E) As long as the total quantity is the same, total costs will be the same.

29)

In a lean production system, we expect to see which of the following?

case"

A) B)

No extra inventory Extra inventory of critical parts held "just-in-

More parts and fewer standardized product

the work turned out E) Closer management-labor relationships configurations D) Managers being held responsible for quality of

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30) Which of the following is a lean production technique that is not reported in the textbook to have been successfully applied in service firms?

A) B) C)

Organization of problem-solving groups Upgraded housekeeping Upgraded quality

D) E)

Frozen windows Elimination of unnecessary activities

31) An activity where the parts that go into each unit of a product are periodically removed from inventory and accounted for based on the number of units produced is called which of the following?

A) B) C)

Frozen window Backflush Level schedule

D) E)

Group technology Kanban

32) Which of the following is a lean production technique that has been successfully applied in service firms?

A) B) C)

Decision trees Leveling the facility load Linear programming

D) E)

Fully utilized capacity Backflushing

33) Which of the following is not listed in the textbook as a component of a lean supply chain?

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Lean customers

Lean management

C) D)

Lean logistics Lean warehousing

Lean procurement

34) 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. You found that the number of Kanban cards needed is 47. Your client now tells you that they miscalculated the demand and the true demand is 300 per hour. All other things remain the same. What is the most appropriate answer from the choices below?

47.

Number of Kanban cards will stay the same at

B) C) D)

Number of Kanban cards will decrease to 24. Number of Kanban cards will increase to 94. Number of Kanban cards will increase to 107.

Number of Kanban cards will increase to 113.

35) In a Kanban card calculation problem, other things remaining the same (that is changing only one variable at a time) the,

A) number of Kanban cards required will increase linearly as demand increases. B) number of Kanban cards required will decrease linearly as demand increases. C) number of Kanban cards required will increase nonlinearly as the container size increases. D) number of Kanban cards required will decrease

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linearly as the container size increases. E) number of Kanban cards required will decrease as the percentage safety stock variable increases.

36)

Consider the

relationship between optimal lot size and set-up cost. Other things remaining the same, as the setup cost decreases,

A) B) C)

holding cost will increase. optimal production batch size will increase. optimal production batch size will decrease.

optimal production batch size will stay the same.

37) Lean production is an integrated set of activities designed to achieve high-volume production using minimal inventories of raw materials, work-in-process, and finished goods. ⊚

true

⊚

false

38) Henry Ford used JIT concepts as he streamlined his moving assembly lines to make automobiles in the early 1900s. ⊚

true

⊚

false

39)

Lean production requires a "push and pull" system of inventory replenishment.

⊚

true

⊚

false

40)

Lean production replaced JIT in the 1990s because JIT

⊚

true

⊚

false

did not address the

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41)

Lean production is a management philosophy and a pull system throughout the plant.

⊚

true

⊚

false

42) Lean production makes implementing green strategies in manufacturing processes more difficult. ⊚

true

⊚

false

43) Group technology is a philosophy wherein similar parts are grouped together and the processes required to make ⊚

true

⊚

false

44) Group technology cells help to eliminate movement and queue (waiting) time between operations. ⊚

true

⊚

false

45) Group technology includes the set of psychological tests and training exercises given to group workers to ensure a high level of teamwork. the parts are arranged as a work cell.

⊚

true

⊚

false

46) In the textbook, the expression "quality at the source" means that we need to purchase the best quality a supplier or vendor can provide. ⊚

true

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false

47)

"Quality at the source" requires factory workers to become their own inspectors.

⊚

true

⊚

false

48) JIT production means that we produce the product before it is required so the customer does not wait for the product. ⊚

true

⊚

false

49)

The goal of JIT production is to drive all inventory queues lower.

⊚

true

⊚

false

50)

JIT is typically applied to nonrepetitive manufacturing.

⊚

true

⊚

false

51)

JIT manufacturing forces a firm to work with a lower water level despite safety hazards.

⊚

true

⊚

false

52) A principle of value stream mapping is to concentrate on speeding up value-added operations. ⊚

true

⊚

false

53)

One of the aims of value stream mapping is to eliminate waste in a process.

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true

⊚

false

54) Uniform plant loading is where you schedule production with different amounts of the same product each day of the week to permit variation to meet changing demand requirements.

⊚

true

⊚

false

55) Uniform plant loading is a process of smoothing the production activity flow to dampen the reaction waves that ⊚

true

⊚

false

56) Value stream mapping is used to visualize product flows through various processing steps. ⊚

true

⊚

false

57)

A kanban control system uses a signaling device to regulate JIT flows.

⊚

true

⊚

false

58)

Kanban means "symbol" or "box" in Japanese.

⊚

true

⊚

false

normally occur in response to schedule variations.

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59)

Using the formula

in the textbook, the only parameters we need to determine the number of kanban card sets is the average number of units ⊚

true

⊚

false

60)

"Kanban squares" is an educational game played in kanban training sessions.

⊚

true

⊚

false

61)

Respect for people is a key to Toyota's improvement ideas in manufacturing.

⊚

true F. ROBERT JACOBS, 2024

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false

62) In Japanese manufacturing, automation and robotics are used extensively to perform dull or routine jobs so employees are free to focus on important improvement tasks. ⊚

true

⊚

false

demanded over some time period, the container size, and the safety stock.

64)

Company unions in Japan exist to foster a cooperative relationship with management.

⊚

true

⊚

false

65)

Firms in Japan tend to have short-term relationships with their suppliers and customers.

⊚

true

⊚

false

66) One of the many lean techniques that have been successfully applied in service firms is the upgrading of quality. ⊚ true ⊚ false

67) One of the many lean techniques that have been successfully applied in service firms is the upgrading of housekeeping. ⊚ true ⊚ false

68) One of the many lean techniques that have been successfully applied in service firms is leveling facility load. F. ROBERT JACOBS, 2024

2 6 0

https://www.stuvia.com/user/AnswersCOM ⊚

true

⊚

false

69) One of the many lean techniques that have been successfully applied in service firms is the eliminating of unnecessary activities. ⊚

true

⊚

false

70) One of the few lean techniques that does not work well in service firms is demand-pull scheduling. ⊚

true

⊚

false

71) The term "freeze window" refers to the practice of building quality into the process and not identifying quality by inspection. ⊚

true

⊚

false

72)

Preventive maintenance is emphasized

in lean production to ensure that flows are not interrupted by downtime or malfunctioning equipment. ⊚

true

⊚

false

73) Value stream mapping is used to identify all of the value-adding as well as non-valueadding processes that ⊚

true

⊚

false

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74)

Value stream mapping involves materials, not information.

⊚

true

⊚

false

75)

A kaizen burst is a symbol on a value stream map.

⊚

true

⊚

false

76)

A kaizen burst is an overfilled kanban container.

⊚

true

⊚

false

materials are subjected to within a plant.

77)

Automation is a key to lean procurement.

⊚

true

⊚

false

78) Applying lean concepts in manufacturing balances increases in cost with quality improvement. ⊚

true

⊚

false

79) Applying lean concepts to logistics is difficult unless either the manufacturer or the customer owns the logistics activities. ⊚

true

⊚

false

80)

There is less uncertainty in service task times than with manufacturing.

⊚

true

⊚

false

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81)

There is less uncertainty in service demand than with manufacturing.

⊚

true

82)

Lean production and Six Sigma work best in chaotic situations.

⊚

true

⊚

false

⊚

false

83) The focus of the Toyota Production System is on elimination of waste and reduction in inventory. ⊚

true

⊚

false

84) Lean suppliers tend to charge more; although, the extra charge is generally a good investment. ⊚

true

⊚

false

85) The term lean-procurement relates to automatic transaction, sourcing, bidding and auctions using Web-based applications, and the use of software that removes human interaction and integrates with the financial reporting of the firm. ⊚

true

⊚

false

86)

The key to lean procurement is speed.

⊚

true

⊚

false

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Test name: Chapter 14 Test Bank

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19)

B D E A B C D E A B D B C C A B D D B

20)

21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) 40)

A A A E D C A C A D B B B C A C TRUE TRUE FALSE FALSE

41)

TRUE

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42) 43) 44) 45) 46) 47) 48) 49) 50) 51) 52) 53) 54) 55) 56) 57) 58) 59) 60) 61)

FALSE TRUE TRUE FALSE FALSE TRUE FALSE FALSE FALSE FALSE FALSE TRUE FALSE TRUE TRUE TRUE FALSE FALSE FALSE TRUE

62)

TRUE

63) 64) 65) 66) 67) 68) 69) 70) 71) 72) 73) 74) 75) 76) 77) 78) 79) 80) 81) 82)

FALSE TRUE FALSE TRUE TRUE TRUE TRUE FALSE FALSE TRUE TRUE FALSE TRUE FALSE TRUE FALSE FALSE FALSE FALSE FALSE

83)

FALSE

84)

FALSE

F. ROBERT JACOBS, 2024

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FALSE FALSE

Student name: 1) Size of the product, weight, and liquid or bulk can all be accommodated with this mode.

A) B)

Highway (truck) Water (ship)

C) D) E)

Air Rail (trains) Pipelines

Large areas of the world are not directly accessible with this mode.

A) B)

Highway (truck) Water (ship)

C) D) E)

Air Rail (trains) Pipelines

Small, light, expensive items are most appropriate for this mode of transportation.

A) B)

Highway (truck) Water (ship)

C) D) E)

Air Rail (trains) Pipelines

4) This is a fairly low-cost alternative, but transit times can be long and may be subject to variability.

A) B)

Highway (truck) Water (ship)

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C) D) E)

Air Rail (trains) Pipelines

No packaging is needed and the costs per mile are low

A) B)

Highway (truck) Water (ship)

C) D) E)

Air Rail (trains) Pipelines

with this mode.

6) Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

A) B) C)

Proximity to customers Historical cost Infrastructure of a country

labor climate D)

Quality of

Business

7) Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

A) B) C)

Suppliers Free trade zones Political risk

D) E)

Gross national product Total costs

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https://www.stuvia.com/user/AnswersCOM 8) Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

A) B) C)

Government barriers Trading blocs Environmental regulation

rules labor D)

Immigration

Quality of

9) Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions?

A) B) C)

Proximity to customers Corporate policy Competitor's locations

D) E)

Competitive advantage Host- community politics

10) An important issue in facility location analysis is business climate. An unfavorable business climate could be A) B) C)

Similar-sized businesses nearby The willingness of local politicians to provide favorable treatment for a consideration The presence of other foreign companies in the case of international locations

indicated by which of the following? D) The local presence of companies in the same industry E) An established educational institution nearby

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 11) One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following A) B)

Historical costs Inbound distribution costs

costs should be excluded from the analysis? C) Land D) Construction E) Regional costs

12) One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following costs should not be included in the analysis? B) A)

Incidental Outbound distribution costs costs

C) D)

Energy costs Hidden costs

Taxes

13) One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following are hidden costs that should be included in the analysis?

A) B)

Becoming less responsive to the customer Supplier costs

costs D)

Construction

Product life

Taxes cycle costs

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https://www.stuvia.com/user/AnswersCOM 14) One of the objectives in facility location analysis is to select a site with the lowest total cost. Which of the following costs are hidden costs that should be included in the analysis?

A) B)

Infrastructure costs Movement of preproduction material between locations

costs C) D)

Taxes Construction

Bribery costs

15)

Which of the following is not an infrastructure criteria used in facility location analysis?

A) B) C)

Adequate school system Adequate health care Adequate transportation

D) E)

Adequate low- cost labor Adequate public utility systems

A) B) C)

Between 0 and 100 Between 101 and 200 Between 201 and 300

D) Between 301 and 400 E) More than 400

17)

An example of a trading bloc is which of the following?

European Free Trade Association

Society

Walmart and

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B) C) D)

Free trade zones ISO-9000 companies American Production and Inventory Control

its suppliers

18) Which of the following is a plant location methodology good for locating a single facility within a set of existing facilities based in distances and volumes of goods shipped?

A) B) C)

Factor-rating systems Centroid method Decision trees

D) E)

Linear programming Regression analysis

19) In which of the following situations should we not use the transportation method of linear programming?

A) To find a new site location for a plant B) To minimize costs of shipping n units to m destinations C) To maximize profits of shipping n units to m destinations D) To determine which corner of a street intersection to locate a retail service facility E) To locate a finished goods distribution warehouse

20)

The centroid method for plant location uses which of the following data?

points

Volume of goods to be shipped between existing

Inbound transportation costs

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Transport times between facilities

D) E)

Correlation matrix of existing facilities Probabilities and payoffs

21) Plant A is located at the (X, Y) coordinates of (100, 200) and has a volume of shipping of 500 units a day. Plant B is located at the (X, Y) coordinates of (150, 400) and has a volume of shipping of 200 units a day. Using the centroid method, which of the following is the X coordinate for the new plant location?

A) B) C)

D) About 150 About 100 E) X coordinate About 114 cannot be computed from About 130 the data given.

22) Plant A is located at the (X, Y) coordinates of (200, 500) and has a volume of shipping of 400 units a day. Plant B is located at the (X, Y) coordinates of (300, 100) and has a volume of shipping of 300 units a day. Using the centroid method, which of the following is the X coordinate for the new plant location?

A) B) C)

D) About 389 About 208 E) X coordinate About 227 cannot be computed from About 243 the data given.

23) A company wants to determine where it should locate a new warehouse. It has two existing production plants (i.e., Plant A and Plant B) that will ship units of a product to this warehouse. Plant A is located at the (X, Y) coordinates of (50, 100) and will have volume of shipping of 250 units a day. Plant B is located at the (X, Y) coordinates of (150, 200) and will have a volume of shipping of 150 units a day. Using the A) B) C) D)

(81, 117) (88, 138) (117, 102) (76, 123)

centroid method, which of the following are the X and Y coordinates for the new plant location?

X and Y coordinates cannot be computed from the data given.

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24)

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? A) D) B)

Highway C) Water Pipeline Rail E) Air

25)

Very few products are moved without at least part of

their journey being by which mode of transportation? C) Water A) Highway D) Pipeline B) Rail E) Air

26) Suppose that using the centroid method you found the best location for a communications tower. The location happens to be in the middle of a pond. Then, you should locate the tower

A) B) C) D)

at that location using water proof concrete and precast poles. at the closest point outside the pond. using some other method. after considering qualitative factors such as

geography, roads and utilities to help find the exact location. E) None of these choices are correct.

27) Using the transportation method for solving the optimal shipping of a product from factories to warehouses, you should use A)

"≤" for constraints regarding factory capacity and

"=" for constraints regarding demand at warehouses. B)

"≥" for constraints regarding factory capacity and

"≤" for constraints regarding demand at warehouses. C)

"=" for constraints regarding factory capacity and

"≥" for constraints regarding demand at warehouses.

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"≥" for constraints regarding factory capacity and "=" for constraints regarding demand at

warehouses. E)

None of these choices are correct.

28) In the logistics-systems design matrix, volume, cost and speed of delivery are three variables (assume three levels: low, moderate or high) used to describe attributes of A)

moderate volume, moderate speed and high cost.

B) C)

moderate volume, high speed and high cost. high volume, moderate speed and low cost.

transportation modes. Rail is associated with D) E)

low volume, high cost and low speed. high volume, high speed and high cost.

29) In the logistics-systems design matrix, volume, cost and speed of delivery are three variables (assume three levels: low, moderate or high) used to describe attributes of transportation modes. Air is associated with

moderate volume, moderate speed and high cost.

B) C)

low volume, high speed and high cost. high volume, moderate speed and low cost.

D) E)

low volume, high cost and low speed. high volume, high speed and high cost.

30) The local government's willingness to invest in upgrading infrastructure to the levels required by a company is an important issue in a company's decision of where to locate a new facility. ⊚

true

⊚

false

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31) Facility location analysis considers proximity to customers important to timeliness of deliveries. ⊚

true

⊚

false

32)

Facility location analysis considers the competitive imperative of lowest total cost.

⊚

true

⊚

false

33) Facility location analysis considers the competitive imperative of a favorable business climate as indicated by the presence of other companies in the same industry.

⊚

true

⊚

false

34) Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take ⊚

true

⊚

false

35) Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take ⊚

true

⊚

false

36) An example of a positive business climate that might influence a facility location decision is increasing ⊚

true

⊚

false

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37) A favorable business climate in facility location decision making might include government legislation of tax abatements. advantage of low wage costs and/or skill levels.

advantage of high technical skills.

governmental costs and increasing property taxes.

⊚

true

⊚

false

38) A favorable business climate in facility location decision making might include local government intervention to facilitate businesses locating in an area via subsidies. ⊚

true

⊚

false

39) A favorable business climate in facility location decision making might include local government providing basic skill training for prospective members of the workforce. ⊚

true

⊚

false

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40) In facility location decision making, the educational and skill levels of the labor pool must match the company's needs. ⊚ true ⊚ false

41) In facility location decision making, matching the educational and skill levels of the labor pool to a company's needs is even more important than the labor pool's willingness and ability to learn. ⊚

true

⊚

false

42) Because the world is becoming more highly interconnected, the proximity of an important supplier's plants ⊚

true

⊚

false

43) Issues of product mix and capacity are strongly interconnected to the facility location decision. ⊚

true

⊚

false

44)

A free trade zone operates under different rules and laws than a foreign trade zone.

⊚

true

⊚

false

45) A free trade zone is typically a closed facility into which foreign goods can be brought without being subject to ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 46)

The objective of facility location analysis is to select the site with the lowest total cost.

is not crucial in supporting lean production methods.

the usual customs requirements. ⊚

true

⊚

false

47) Governmental barriers to enter and locate in many countries are increasing through restrictive protectionist legislation. ⊚

true

⊚

false

48) Quality of life in a host community is not a major factor in making the facility location decision. ⊚

true

⊚

false

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49) In facility location decision making, the factor-rating system is one of the least used general location techniques. ⊚

true

⊚

false

50) In facility location decision making, the factor-rating system is based on linear programming. ⊚

true

⊚

false

51) A major problem in a plant location decision based on the factor-rating system is that simple point-rating schemes do not account for the wide variance of costs that may occur ⊚

true

⊚

false

52)

Services typically have multiple site locations to maintain close contact with customers.

⊚

true

⊚

false

53) Facility location decisions are made using analytical techniques that are able to weigh a large number of different variables equally. ⊚ true ⊚ false within each factor used in the analysis.

54) A third-party logistics company is a firm that manages all or part of another company's product delivery operations. ⊚

true

⊚

false

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55) Logistics is the process of coordinating and moving material and other resources from one country to another.

⊚

true

⊚

false

56) Cross-docking is a practice used in the international shipping industry that facilitates port utilization. ⊚

true

⊚

false

57) Cross-docking is an approach used in consolidation warehouses, where large shipments are broken down into ⊚

true

⊚

false

58)

Hub-and-spoke systems combine the idea of consolidation and that of cross-docking.

⊚

true

⊚

false

59)

In a hub-and-spoke system, each warehouse in the system acts as a spoke.

small shipments for local delivery in an area.

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⊚

true

⊚

false

60) DHL and United Parcel Service are transportation companies that are prohibited from functioning as third-party ⊚

true

⊚

false

61) Logistics is a fairly small part of the U.S. gross domestic product. In 2017, it accounted for only 2 percent of GDP. logistics companies the way Federal Express does. ⊚

true

⊚

false

62)

Environmental regulations are about the same regardless of the location chosen.

⊚

true

⊚

false

63)

Size of the product, weight, and liquid or bulk can all be accommodated with this mode.

A) B)

Highway (truck) Water (ship)

C) D) E)

Air Rail (trains) Pipelines

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64)

Large areas of the world are not directly accessible with this mode.

A) B)

Highway (truck) Water (ship)

C) D) E)

Air Rail (trains) Pipelines

65)

Small, light, expensive items are most appropriate for this mode of transportation.

A) B)

Highway (truck) Water (ship)

C) D) E)

Air Rail (trains) Pipelines

66) This is a fairly low-cost alternative, but transit times can be long and may be subject to variability.

A) B)

Highway (truck) Water (ship)

C) D) E)

Air Rail (trains) Pipelines

67)

No packaging is needed and the costs per mile are low with this mode.

A) B)

Highway (truck) Water (ship)

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C) D) E)

Air Rail (trains) Pipelines

68) Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions? A)

Proximity to

customers B) Historical cost C) Infrastructure of a country D) Quality of labor

climate E)

Business

69) Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

A) B) C)

Suppliers Free trade zones Political risk

D) E)

Gross national product Total costs

70) Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

A) B) C)

Government barriers Trading blocs Environmental regulation

rules labor

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Immigration

Quality of

71) Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions?

A) B) C)

Proximity to customers Corporate policy Competitor's locations

D) E)

Competitive advantage Host- community politics

72) An important issue in facility location analysis is business climate. An unfavorable business climate could be A) B) C)

Similar-sized businesses nearby The willingness of local politicians to provide favorable treatment for a consideration The presence of other foreign companies in the case of international locations

indicated by which of the following? D) The local presence of companies in the same industry E) An established educational institution nearby

73) One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following A) B)

Historical costs Inbound distribution costs

costs should be excluded from the analysis? C) Land D) Construction E) Regional costs

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https://www.stuvia.com/user/AnswersCOM 74) One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following A) B)

Outbound distribution costs Incidental costs

costs should not be included in the analysis? C) Energy costs D) Hidden costs E) Taxes

75) One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following are hidden costs that should be included in the analysis?

A) B)

Becoming less responsive to the customer Supplier costs

costs D)

Construction

Product life

Taxes cycle costs

76) One of the objectives in facility location analysis is to select a site with the lowest total cost. Which of the following costs are hidden costs that should be included in the analysis?

A) B)

Infrastructure costs Movement of preproduction material between locations

costs C) D)

Taxes Construction

Bribery costs

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77)

Which of the following is not an infrastructure criteria used in facility location analysis?

A) B) C)

Adequate school system Adequate health care Adequate transportation

D) E)

Adequate low- cost labor Adequate public utility systems

78)

How many free trade zones are there in the United States?

A) B) C)

Between 0 and 100 Between 101 and 200 Between 201 and 300

D) Between 301 and 400 E) More than 400

79)

An example of a trading bloc is which of the following?

A) B)

European Free Trade Association Free trade zones

C) ISO-9000 companies D) American

Production and Inventory Control Society E) Walmart and its suppliers

80) Which of the following is a plant location methodology good for locating a single facility within a set of existing facilities based in distances and volumes of goods shipped?

A) B)

Factor-rating systems Centroid method

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Decision trees

D) E)

Linear programming Regression analysis

81) In which of the following situations should we not use the transportation method of linear programming?

82)

The centroid method for plant location uses which of the following data?

points

Volume of goods to be shipped between existing

B) C)

Inbound transportation costs Transport times between facilities

D) E)

Correlation matrix of existing facilities Probabilities and payoffs

83) Plant A is located at the (X, Y) coordinates of (100, 200) and has a volume of shipping of 500 units a day. Plant B is located at the (X, Y) coordinates of (150, 400) and has a volume of shipping of 200 units a day. Using the centroid method, which of the following is the X coordinate for the new plant location?

A) B) C)

D) About 150 About 100 E) X coordinate About 114 cannot be computed from About 130 the data given.

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84) Plant A is located at the (X, Y) coordinates of (200, 500) and has a volume of shipping of 400 units a day. Plant B is located at the (X, Y) coordinates of (300, 100) and has a volume of shipping of 300 units a day. Using the centroid method, which of the following is the X coordinate for the new plant location?

A) B) C)

D) About 389 About 208 E) X coordinate About 227 cannot be computed from About 243 the data given.

85) A company wants to determine where it should locate a new warehouse. It has two existing production plants (i.e., Plant A and Plant B) that will ship units of a product to this warehouse. Plant A is located at the (X, Y) coordinates of (50, 100) and will have volume of shipping of 250 units a day. Plant B is located at the (X, Y) coordinates of (150, 200) and will have a volume of shipping of 150 units a day. Using the centroid method, which of the following are the X and Y coordinates for the new plant location? A)

(81, 117)

B) C) D) E)

(88, 138) (117, 102) (76, 123) X and Y coordinates cannot be computed from the

data given.

86)

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? A) D) B)

Highway C) Water Pipeline Rail E) Air

87)

Very few products are moved without at least part of

their journey being by which mode of transportation?

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM A) D) B)

Highway C) Water Pipeline Rail E) Air

88) Suppose that using the centroid method you found the best location for a communications tower. The location happens to be in the middle of a pond. Then, you should locate the tower

A) B) C) D)

at that location using water proof concrete and precast poles. at the closest point outside the pond. using some other method. after considering qualitative factors such as

geography, roads and utilities to help find the exact location. E) None of these choices are correct.

89) Using the transportation method for solving the optimal shipping of a product from factories to warehouses, you should use A)

"≤" for constraints regarding factory capacity and "=" for constraints regarding demand at

warehouses. B)

"≥" for constraints regarding factory capacity and "≤" for constraints regarding demand at

warehouses. C)

"=" for constraints regarding factory capacity and

"≥" for constraints regarding demand at warehouses.

"≥" for constraints regarding factory capacity and "=" for constraints regarding demand at

warehouses. E)

None of these choices are correct.

90) In the logistics-systems design matrix, volume, cost and speed of delivery are three variables (assume three levels: low, moderate or high) used to describe attributes of A)

moderate volume, moderate speed and high cost.

moderate volume, high speed and high cost. F. ROBERT JACOBS, 2024

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high volume, moderate speed and low cost.

transportation modes. Rail is associated with D) E)

low volume, high cost and low speed. high volume, high speed and high cost.

91) In the logistics-systems design matrix, volume, cost and speed of delivery are three variables (assume three levels: low, moderate or high) used to describe attributes of A)

moderate volume, moderate speed and high cost.

B) C)

low volume, high speed and high cost. high volume, moderate speed and low cost.

transportation modes. Air is associated with D) E)

low volume, high cost and low speed. high volume, high speed and high cost.

92)

The local government's willingness to invest in upgrading

infrastructure to the levels required by a company is an important issue in a company's decision of where to locate a new facility. ⊚

true

⊚

false

93) Facility location analysis considers proximity to customers important to timeliness of deliveries. ⊚

true

⊚

false

94)

Facility location analysis considers the competitive imperative of lowest total cost.

⊚

true

⊚

false

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95) Facility location analysis considers the competitive imperative of a favorable business climate as indicated by the presence of other companies in the same industry. ⊚

true

⊚

false

96) Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of low wage costs and/or skill levels. ⊚

true

⊚

false

97) Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take ⊚

true

⊚

false

98) An example of a positive business climate that might influence a facility location decision is increasing ⊚

true

⊚

false

99) A favorable business climate in facility location decision making might include government legislation of tax abatements. ⊚

true

⊚

false

100) A favorable business climate in facility location decision making might include local government intervention to facilitate businesses locating in an area via subsidies. F. ROBERT JACOBS, 2024

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advantage of high technical skills.

governmental costs and increasing property taxes.

⊚

true

⊚

false

101) A favorable business climate in facility location decision making might include local government providing basic skill training for prospective members of the workforce. ⊚ true ⊚ false

102) In facility location decision making, the educational and skill levels of the labor pool must match the company's needs. ⊚ true ⊚ false

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103) In facility location decision making, matching the educational and skill levels of the labor pool to a company's needs is even more important than the labor pool's willingness and ability to learn. ⊚

true

⊚

false

104) Because the world is becoming more highly interconnected, the proximity of an important supplier's plants ⊚

true

⊚

false

is not crucial in supporting lean production methods.

105) Issues of product mix and capacity are strongly interconnected to the facility location decision. ⊚

true

⊚

false

106)

A free trade zone operates under different rules and laws than a foreign trade zone.

⊚

true

⊚

false

107) A free trade zone is typically a closed facility into which foreign goods can be brought without being subject to ⊚

true

⊚

false

108)

The objective of facility location analysis is to select the site with the lowest total cost.

⊚

true

F. ROBERT JACOBS, 2024

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false

109) Governmental barriers to enter and locate in many countries are increasing through restrictive protectionist legislation. the usual customs requirements.

⊚

true

⊚

false

110) Quality of life in a host community is not a major factor in making the facility location decision. ⊚

true

⊚

false

111) In facility location decision making, the factor-rating system is one of the least used general location techniques. ⊚

true

⊚

false

112) In facility location decision making, the factor-rating system is based on linear programming. ⊚

true

⊚

false

113) A major problem in a plant location decision based on the factor-rating system is that simple point-rating schemes do not account for the wide variance of costs that may occur within each factor used in the analysis.

⊚

true

⊚

false

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114)

Services typically have multiple site locations to maintain close contact with customers.

⊚

true

⊚

false

115) Facility location decisions are made using analytical techniques that are able to weigh a large number of different variables equally. ⊚

true

⊚

false

116) A third-party logistics company is a firm that manages all or part of another company's product delivery operations. ⊚

true

⊚

false

117) Logistics is the process of coordinating and moving material and other resources from one country to another. ⊚

true

⊚

false

118) Cross-docking is a practice used in the international shipping industry that facilitates port utilization.

⊚

true

⊚

false

119) Cross-docking is an approach used in consolidation warehouses, where large shipments are broken down into ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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120)

Hub-and-spoke systems combine the idea of consolidation and that of cross-docking.

⊚

true

⊚

false

121)

In a hub-and-spoke system, each warehouse in the system acts as a spoke.

⊚

true

⊚

false

122) DHL and United Parcel Service are transportation companies that are prohibited from functioning as third-party ⊚

true

⊚

false

small shipments for local delivery in an area.

logistics companies the way Federal Express does.

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 123) Logistics is a fairly small part of the U.S. gross domestic product. In 2017, it accounted for only 2 percent of GDP. ⊚

true

⊚

false

124)

Environmental regulations are about the same regardless of the location chosen.

⊚

true

⊚

false

Answer Key

Test name: Chapter 15 Test Bank

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19)

A B C D E B D D A B A B A B D C A B D

20)

21) 22) 23) 24) 25) 26) 27) 28) 29) 30)

B C B D A D A C B TRUE

F. ROBERT JACOBS, 2024

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TRUE TRUE TRUE TRUE TRUE FALSE TRUE TRUE TRUE TRUE

41)

FALSE

42) 43) 44) 45) 46) 47) 48) 49) 50) 51) 52) 53) 54) 55) 56) 57) 58) 59) 60) 61)

FALSE TRUE FALSE TRUE TRUE FALSE FALSE FALSE FALSE TRUE TRUE FALSE TRUE FALSE FALSE TRUE TRUE FALSE FALSE FALSE

62)

FALSE

63) 64) 65) 66) 67) 68) 69) 70) 71) 72) 73) 74) 75)

A B C D E B D D A B A B A

F. ROBERT JACOBS, 2024

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B D C A B D A

83)

84) 85) 86) 87) 88) 89) 90) 91) 92) 93) 94) 95) 96) 97) 98) 99) 100) 101) 102) 103)

C B D A D A C B TRUE TRUE TRUE TRUE TRUE TRUE FALSE TRUE TRUE TRUE TRUE FALSE

104)

FALSE

105) 106) 107) 108) 109) 110) 111) 112) 113) 114) 115) 116) 117) 118) 119) 120)

TRUE FALSE TRUE TRUE FALSE FALSE FALSE FALSE TRUE TRUE FALSE TRUE FALSE FALSE TRUE TRUE

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 121) 122) 123) 124)

FALSE FALSE FALSE FALSE

Student name: 1) These are supply chains that utilize strategies aimed at creating the lowest cost.

A) B)

Efficient supply chains Risk-hedging supply chains

chains D)

Agile supply

Vendor-

Responsive supply chains

managed supply chains

2) These are supply chains that utilize strategies aimed at pooling and sharing resources in a supply chain.

A) B)

Efficient supply chains Risk-hedging supply chains

chains D)

Agile supply

Vendor-

Responsive supply chains

These are supply chains that try to share the chances of a supply chain disruption.

A) B)

Efficient supply chains Risk-hedging supply chains

managed supply chains

chains

F. ROBERT JACOBS, 2024

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Agile supply

Vendor-

Responsive supply chains

managed supply chains

4) These are supply chains that utilize strategies aimed at being flexible in the face of the changing and diverse needs of the customers.

A) B)

Efficient supply chains Risk-hedging supply chains

C) D)

Responsive supply chains Agile supply

chains E) Vendor-managed supply chains

5) These are supply chains where the risks of supply shortages or disruptions are hedged by pooling inventory and other capacity resources.

A) B)

Efficient supply chains Risk-hedging supply chains

chains D)

Agile supply

Vendor-

Responsive supply chains

managed supply chains

6) A type of inventory where a customer actually allows the supplier to manage the inventory policy of an item or group of items for them.

A) B) C)

Vendor-directed inventory Subcontracted inventory Remote inventory

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D) E)

Vendor- managed inventory Outsourced inventory

7) This is commonly used for purchasing items that are more complex or expensive and where there may be a number of potential vendors.

A) B) C)

Request for purchase Purchase order Petty cash

D) E)

Purchase directive Request for proposal

8) The inventory turnover ratio used in measuring supply chain efficiency is found by the ratio of which of the following?

value

Cost of goods sold/Average aggregate inventory

B) C)

Fixed costs/Variable costs Sales costs/Marketing costs

D) E)

Cost of goods sold/Cost to sell goods Operations flow costs/Supplier flow costs

9) The total value of all items held in inventory for the firm valued at cost is which of the following?

A) B) C)

Cost of goods to be sold Average aggregate inventory value Weeks supply of goods

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D) E)

Inventory turnover None of these choices are correct

10)

If the average aggregate inventory value is $45,000

and the cost of goods sold is $10,000, which of the following is weeks of supply? C) 120 A) 45,000 D) 23.4 B) 234 E) 4.5

11) If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is weeks of supply?

A) B)

1,040 606

C) D) E)

104 60.6 2.0

12) If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000, which of the following is inventory turnover?

A) B) C)

60 10.4 2

D) E)

0.5 None of these choices are correct

13) If the average aggregate inventory value is $100,000 and the cost of goods sold is $450,000, which of the following is inventory turnover?

D) 0.2222 19.23 E) None of these

F. ROBERT JACOBS, 2024

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4.5 choices are correct 0.8654

14) 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?

A) B)

Efficient Forward looking

C) D) E)

Agile Risk hedging Responsive

15)

In Hau Lee's

uncertainty framework to classify supply chains, a supply chain for functional products with a stable supply process is A) B)

Efficient Forward looking

called which of the following? C) Agile D) Risk hedging E) Responsive

16) 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?

A) B)

Efficient Forward looking

C) D) E)

Agile Risk hedging Responsive

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17) In Hau Lee's uncertainty framework to classify supply chains, a supply chain for innovative products with a stable A) B)

Efficient Forward looking

supply process is called which of the following? C) Agile D) Risk hedging E) Responsive

18) The effect of the lack of synchronization among supply chain members is referred to as which of the following?

A) B) C)

Forward buying Continuous replenishment Bullwhip effect

step D) E)

Metcalf's law Being out of

19) In outsourcing, which of the following internal activities and decision responsibilities cannot be transferred to outside contractors?

A) B) C)

Activities involving people Activities involving facilities Activities involving equipment

D) E)

Activities involving shareholders Activities involving technology

20)

Which of the following is an organizationally driven reason for outsourcing?

A) B) C)

Improve effectiveness by focusing on what the firm does best. Turn fixed costs into variable costs. Reduce costs through lowered cost structure and increased flexibility.

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D) E)

Improve risk management. Improve credibility and image by associating with superior providers.

21)

Which of the following is not an organizationally driven reason for outsourcing?

A) B) C)

Improve effectiveness by focusing on what the firm does best. Improve flexibility to meet changing demand for products and services. Increase product and service value by improving response to customer needs.

D) E)

Improve credibility and image by associating with superior providers. All of these are organizationally driven reasons for outsourcing.

22)

Which of the following is an improvement-driven reason for outsourcing?

A) B) C)

Shorten cycle time. Improve effectiveness by focusing on what the firm does best. Increase product and service value by improving response to customer needs.

D) E)

Turn fixed costs into variable costs. Reduce costs through a lower cost structure.

23)

Which of the following is not an improvement-driven reason for outsourcing?

A) B) C) D)

Improve quality and productivity. Enhance effectiveness by focusing on what you do best. Improve risk management. Obtain expertise, skills, and technologies not

otherwise available. E) Improve credibility and image by associating with superior providers.

24)

Which is the most challenging kind of supply chain to manage according to Hau Lee?

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A) B)

Agile supply chain Efficient supply chain

chain D)

Erratic supply

Responsive

Risk-hedging supply chain

supply chain

25) Which of the following of Fisher's product categories includes fashionable clothing, personal computers, and other products that typically have a very brief life cycle?

A) B) C)

Functional products Dysfunctional products Innovative products

D) E)

Bullwhip products Value density products

26)

Which of the following is not an improvement-driven reason to outsource?

A) B) C) D)

Improve risk management. Increase commitment in a noncore area. Shorten cycle time. Improve quality and productivity.

Obtain expertise, skills, and technologies that are otherwise not available.

27) Which of the following is one of the strategic characteristics to consider when deciding how supplier relationships should be structured on the continuum between vertical integration (do not outsource) and arm's length relationships (outsource)?

A) B)

Cost Location

Investment

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Coordination Control

28)

The six-step process for green sourcing does not include which of the following?

A) B) C)

Assess the opportunity. Assess the supply base. Confer with environmental groups.

D) E)

Engage sourcing agents. Institutionalize the sourcing strategy.

29) A)

The six-step process for green sourcing includes which of the following? Provide a

press release to local (and perhaps national) media. B) Include members of environmental groups in the decision. C) Notify the state and federal environmental agencies of your plans. D) E)

Perform an environmental impact study. Develop the sourcing strategy.

30) Ownership costs are incurred after the initial purchase and are associated with the ongoing use of the product or material. Which of the following is not an ownership cost listed in the text?

A) B) C)

Financing costs Energy costs Taxes

D) E)

Maintenance and repair costs Supply network costs

31)

Acquisition costs include which of the following costs?

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A) B)

Quality costs Maintenance and repair costs

costs D)

Supply chain

Customer

Environmental costs dissatisfaction costs

32)

Ownership costs include which of the following costs?

A) B) C)

Environmental costs Warranty costs Supply chain costs

D) E)

Quality costs Taxes

33)

Warranty costs are part of

A) B) C)

Acquisition cost Ownership costs Post-ownership costs

None of these choices are correct

34) First Among Best Solar Inc. announces that they will take back, free of cost, all of their solar panels that are no longer useful. Until now, the cost of disposal was significant. A) B) C)

Acquisition cost Ownership costs Post-ownership costs

This action reduces which of the following for the customers? D) None of these choices are correct

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35) then

Other things remaining the same, if the average aggregate inventory value goes down,

A) B) C) D)

inventory turnover ratio and weeks of supply will both go down. inventory turnover ratio will go down, but the weeks of supply will stay the same. inventory turnover ratio and weeks of supply will both go up. inventory turnover ratio will go up, but weeks of

supply will go down. E) inventory turnover ratiowill stay the same, but weeks of supply will go down.

36)

Other things remaining the same, if the cost of goods sold decreases, then

A) B)

inventory turnover ratio and weeks of supply will both go up. inventory turnover ratio will go down, but the

weeks of supply will go up. C) inventory turnover ratio and weeks of

supply will both go down. D) inventory turnover ratio will go up, but weeks of supply will go down. E) inventory turnover ratio will stay the same, but weeks of supply will go down.

37) In the sourcing/purchasing design matrix, there are three variables: contract duration, transaction costs, and specificity. Assume levels as short, medium and long for contract duration and for the rest, low, medium, and high. A) B) C)

long contract duration, high transaction costs and low specificity. short contract duration, high transaction costs and low specificity. long contract duration, low transaction costs and low specificity.

Vendor managed inventory belongs to

D) E)

long contract duration, high transaction costs and high specificity. long contract duration, low transaction costs and high specificity.

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38) Strategic sourcing is the development and management of supplier relationships to acquire goods and services in a way that aids in achieving the immediate needs of the business. ⊚

true

⊚

false

39) Two common measures to evaluate supply chain efficiency are the Consumer Price Index and the beta flow system. ⊚

true

⊚

false

40) Two common measures to evaluate supply chain efficiency are the inventory turnover and weeks-of-supply ratios. ⊚

true

⊚

false

41) Inventory turn values that are considered good differ by industry and the type of products being handled. ⊚

true

⊚

false

42) Retailer behavior when stocking up during promotion periods (where the prices of goods are reduced) is called backward buying. ⊚

true

⊚

false

43) The phenomenon that magnifies the variability in order quantities for goods as orders move through the supply chain from the customer to the producer is called the bullwhip effect. ⊚

true

⊚

false

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44) Functional products include staples that people buy in a wide range of retail outlets, such as grocery stores and gas stations. ⊚

true

⊚

false

45)

Theonly optimal strategy for functional products is to use an efficient supply chain.

⊚

true

⊚

false

46)

The optimal strategy for functional products is to use a responsive supply chain.

⊚

true

⊚

false

47)

The optimal strategy for innovative products is to use an efficient supply chain.

⊚

true

⊚

false

48) The best strategy for innovative products is to use either a responsive or an agile supply chain.

49) Outsourcing is the act of moving some of a firm's internal activities and decision responsibility to outside providers. ⊚

true

⊚

false

50)

Outsourcing allows a firm to achieve an improved focus on its core competencies.

⊚

true

⊚

false

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51) Logistics is a term indicating transportation choices for goods produced internationally but consumed domestically. ⊚

true

⊚

false

52) Logistics is a term that refers to the management functions that support the complete cycle of material flow, from the purchase and internal control of production materials; to the planning and control of work-in-process; to the purchasing, shipping, and distribution of the finished product.

53) A financially driven reason for outsourcing is that it can turn fixed costs into variable costs. ⊚

true

⊚

false

54)

A financially driven reason for outsourcing is that it can shorten cycle time.

⊚

true

⊚

false

55) An organizationally driven reason for outsourcing is that it can improve effectiveness by focusing on what the firm does best. ⊚

true

⊚

false

56) An organizationally driven reason for outsourcing is that it can transform the organization. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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57) A financially driven reason for outsourcing is that it can reduce costs through a lower cost structure. ⊚

true

⊚

false

58) An improvement-driven reason for outsourcing is that it can increase product and service value, customer ⊚

true

⊚

false

59) A financially driven reason for outsourcing is that it can help gain access to new markets, especially in developing countries. ⊚

true

⊚

false

60) A stable supply process is one where product volumes are high, demand is predictable, and there is a long product life. satisfaction, and shareholder value. ⊚

true

⊚

false

61)

A stable supply process is one where the

manufacturing process and the underlying technology are mature and the supply base is well established. ⊚

true

⊚

false

62) Firms producing functional products are forced to introduce a steady stream of innovations in order to survive.

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM ⊚

true

⊚

false

63)

Inventory turnover and weeks of supply are mathematically the inverse of one another.

⊚

true

⊚

false

64) Green sourcing is only about finding new environmentally friendly technologies and increasing the use of recyclable materials. ⊚

true

⊚

65)

An important opportunity in green sourcing is waste reduction opportunities.

⊚

true

66)

Green sourcing requires incorporating new criteria for evaluating alternatives.

⊚

true

⊚

false

⊚

false

67) The total cost of ownership (TCO) is an estimate of the cost of an item that includes all the costs related to the procurement and use of an item, but it does not include any of ⊚ true ⊚ false

68) The total cost of ownership (TCO) can be categorized into three areas: acquisition costs, ownership costs, and post- ownership costs. ⊚ true ⊚ false the costs related to disposing of the item after it is no longer useful. F. ROBERT JACOBS, 2024

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69) Overemphasis on purchase price frequently results in failure to address other significant costs. ⊚

true

⊚

false

70) In conducting a total cost of ownership analysis, it is probably best to use a team representing the key functional areas.

⊚

true

⊚

false

71) A firm that controls most of the activities in its supply chain is said to be vertically integrated. ⊚

true

⊚

false

72) Capability sourcing refers to outsourcing the functions that a company does best to trusted key partners. ⊚

true

⊚

false

73) Commonality refers to how common the item is and, in a relative sense, how many substitutes might be available. ⊚

true

⊚

false

74) Vendor-managed inventory is a program for automatically supplying groups of items to a customer on a regular basis. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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Answer Key

Test name: Chapter 16 Test Bank

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19)

A B B C D D E A B B C D B D A C E C D

20)

21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) 40)

D A B A C B D C E C A C C C D B E TRUE FALSE TRUE

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 41)

TRUE

42) 43) 44) 45) 46) 47) 48) 49) 50) 51) 52) 53) 54) 55) 56) 57) 58) 59) 60) 61)

FALSE TRUE TRUE FALSE FALSE FALSE TRUE TRUE TRUE FALSE TRUE TRUE FALSE TRUE FALSE TRUE FALSE TRUE FALSE TRUE

62)

FALSE

63) 64) 65) 66) 67) 68) 69) 70) 71) 72) 73) 74)

TRUE FALSE TRUE TRUE FALSE TRUE TRUE TRUE TRUE FALSE FALSE FALSE

Student name: 1) Which of the following are not ERP applications?

A) B) C)

Transaction processing Warranty processing Finance

D) E)

Sales and marketing Human resource management

F. ROBERT JACOBS, 2024

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2) What is the common name for a computer system that integrates application programs in accounting, sales, manufacturing, and other functions in a firm by way of a shared database?

A) B) C)

Entrepreneurial resource programming (ERP) Enterprise resource planning (ERP) Endeavour reconstruction planning (ERP)

Enterprise retention programming (ERP)

What is the name of Microsoft's version of ERP?

A) B)

Dynamics Manugistics

C) D)

Oracle i2

Which of the following is not an aspect of ERP that determines quality?

A) B) C)

The software should be multifunctional. The software should be integrated. The software should narrowly focus on a single

function. D) The software must facilitate basic planning.

What is transaction processing?

A) B) C)

The decision support system used to efficiently handle multiple transactions The posting and tracking of the detailed activities of a business The movement of paperwork through a system

using a decision tree D) The scheduling of machinery to minimize time and scrap

F. ROBERT JACOBS, 2024

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What are two of the main objectives of ERP?

A) B) C)

Transaction processing and decision support Product tracking and customer invoicing Transaction processing and logistic optimizing

Resource tracking and master schedule planning

What is the primary goal of an ERP system?

storage

The integration of data processes and data

Creating consistent definitions across all

goods move through each step of the process D) The scheduling of machinery to functional areas C) The efficient handling of the transactions as minimize downtime and reduce scrap

On which four major areas do ERP modules typically focus?

A) B)

Finance, manufacturing and logistics, sales and marketing, human resources Accounting, finance, human resources, manufacturing

C) D)

Accounting, finance, information technology, manufacturing Information technology,

manufacturing, logistics, accounting

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 9)

How often are major software changes typically made to ERP?

A) B) C)

Every 12 months Every 1 to 2 years Every 3 to 5 years

years D)

Every 5 to 10

10)

Within ERP, which set of applications is the largest and most complicated?

A) B) C)

Finance Manufacturing and logistics Sales and marketing

Human resources

11) What set of applications supports the capabilities needed to manage, schedule, pay, hire, and train people who make the organization run?

A) B)

Sales and marketing Manufacturing

C) D)

Logistics Human resources

12)

Which of the following is a main benefit of processing transactions in real time?

A) B)

There is no delay in the processing of the transaction. The amount of detail available in the system is extremely rich.

C) D)

It allows for immediate analysis, which can be valuable in making improvements. All of these

choices are correct.

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM

13)

Which is not one of the main functions of SAP?

A) B) C)

Supply chain planning Supply chain execution Supply chain collaboration

Supply chain redesign

14)

What industries find CRP most useful?

A) B) C)

Manufacturing and engineering industries Sports and entertainment industries Consumer product and retail industries

Financial and accounting industries

15) What is an example of an issue that might be addressed by supply chain event management?

A) B) C)

A customer complains that a product arrived damaged. A customer complains that he is unhappy with the product's new packaging design. A customer decides to change her order in the

next ordering cycle. D) A customer would like to discuss getting a quantity discount in the next billing cycle.

16)

What three functional areas make up the manufacturing operating cycle?

A) B) C)

Manufacturing, sales, and distribution Purchasing, manufacturing, and logistics Procurement, engineering, and sales

Purchasing, manufacturing, and sales and distribution

F. ROBERT JACOBS, 2024

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17) Which of the following is not a benefit of running large batches in a manufacturing setting?

A) B) C)

Create larger inventories. Minimize equipment downtime. Increase equipment and labor utilization.

Improve quality performance.

18)

The term "enterprise resource planning (ERP)" can mean different things.

⊚

true

⊚

false

19) ERP systems can be inefficient at handling the numerous transactions that document the activities of a company. ⊚

true

⊚

false

20)

Oracle is the largest ERP vendor.

⊚

true

⊚

false

21)

ERP systems allow for integrated planning across the different functional areas in a firm.

⊚

true

⊚

false

22) A strength of ERP systems is that it is not necessary to have consistent definitions across all functional areas. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM

23)

When selecting an ERP system, it is possible to take a multivendor approach.

⊚

true

⊚

false

24) A typical ERP system has modules that use the same user interface, similar to that of Microsoft Office products. ⊚

true

⊚

false

25) Quality management software supports the activities associated with planning and performing repairs and preventive maintenance. ⊚

true

⊚

false

26) Because the scope of ERP packages is very large, it is rarely necessary to add additional software. ⊚

true

⊚

false

27)

Data warehouses are useful mechanisms to support daily routine tasks.

⊚

true

⊚

false

28) Drilling down means descending through an existing hierarchy to bring out more and more details from a database. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

3 2 4

https://www.stuvia.com/user/AnswersCOM 29) The supply chain design module provides a centralized overview of the entire supply chain and key performance indicators. ⊚

true

⊚

false

30)

A SAP system can accommodate items that

must be maintained in inventory while simultaneously supporting JIT efforts for other items. ⊚

true

⊚

false

31)

One of the weaknesses of SAP is the inability to link with most mobile devices.

⊚

true

⊚

false

32)

A limitation of traditional financial metrics is that they primarily tell a story of past events.

⊚

true

⊚

false

33)

In the functional silo approach, the purchasing function typically considers quality a goal.

⊚

true

⊚

false

34) When moving product, it is optimal to focus on the lowest price quote of each individual distribution stage. ⊚

true

⊚

false

35)

Only manufacturing affects the inventory account.

⊚

true

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM ⊚

false

36)

All of the modules of an ERP system should be purchased from the same vendor.

⊚

true

⊚

false

37) A data warehouse is a special building, or floor of a building, built especially to safeguard the data used by an ERP system. Data warehouses require advanced cooling and air filtration. ⊚

true

⊚

false

38)

Since it is just software, it is fairly quick-and-easy to upgrade an ERP system.

⊚

true

⊚

false

39) An ERP system is a single, large software program. It that regard, it has the same structure as Microsoft Excel.

⊚

true

⊚

false

40) Each ERP module uses its own database with each database connecting to a common data warehouse. ⊚

true

⊚

false

41)

ERP handles all aspects of a supply chain except for managing raw materials.

⊚

true

⊚

false

Answer Key F. ROBERT JACOBS, 2024

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Test name: Chapter 17 Test Bank

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19)

B B A C B A C A C B D D D C A D A TRUE FALSE

20)

FALSE

21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) 40)

TRUE FALSE TRUE TRUE FALSE FALSE FALSE TRUE TRUE TRUE FALSE TRUE FALSE FALSE FALSE FALSE FALSE FALSE FALSE FALSE

41)

FALSE

Student name:

F. ROBERT JACOBS, 2024

3 2 7

https://www.stuvia.com/user/AnswersCOM 1) In time series data depicting demand, which of the following is not considered a component of demand variation?

A) B) C)

Trend Seasonal Cyclical

D) Variance E) Autocorrelation

Which of the following is not one of the basic types of forecasting?

A) B) C)

Qualitative Time series analysis Causal relationships

D) E)

Simulation Force field analysis

3) In most cases, demand for products or services can be broken down into several components. Which of the A) B) C)

Average demand for a period A trend Seasonal elements

following is not considered a component of demand? D) Past data E) Autocorrelation

4) In most cases, demand for products or services can be broken into several components. Which of the following is A) B) C)

Cyclical elements Future demand Past demand

considered a component of demand? D) Inconsistent demand E) Level demand

F. ROBERT JACOBS, 2024

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5) In most cases, demand for products or services can be broken into several components. Which of the following is A) B) C)

Forecast error Autocorrelation Previous demand

considered a component of demand? D) Consistent demand E) Repeat demand

6) Which of the following forecasting methodologies is considered a qualitative forecasting technique?

A) B) C)

Simple moving average Market research Linear regression

D) E)

Exponential smoothing Multiple regression

7) Which of the following forecasting methodologies is considered a time series forecasting technique?

A) B) C)

Simple moving average Market research Leading indicators

D) E)

Historical analogy Simulation

8) Which of the following forecasting methodologies is considered a time series forecasting technique?

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM A) B) C)

Delphi method Exponential averaging Simple movement smoothing

D) E)

Weighted moving average Simulation

9) Which of the following forecasting methodologies is considered a causal forecasting technique?

A) B) C)

Exponential smoothing Weighted moving average Linear regression

D) E)

Historical analogy Market research

10) Which of the following forecasting methods uses executive judgment as its primary component for forecasting?

A) B) C)

Historical analogy Time series analysis Panel consensus

D) E)

Market research Linear regression

11) Which of the following forecasting methods is very dependent on selection of the right individuals who will judgmentally be used to actually generate the forecast?

A) B)

Time series analysis Simple moving average

method D)

Delphi

Panel

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM C)

Weighted moving average

consensus

12)

In business forecasting, what is usually considered a short-term time period?

A) B)

Four weeks or less More than three months

more C)

Six months or

Less than

three months E) One year

13)

In business forecasting, what is usually considered a medium-term time period?

A) B)

Six weeks to one year Three months to two years

months D)

One to six

Six months to

One to five years

14)

In business forecasting, what is usually considered a long-term time period?

A) B) C)

Three months or longer Six months or longer One year or longer

six years

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM longer longer D)

Two years or

Ten years or

15) In general, which forecasting time frame compensates most effectively for random variation and short-term changes?

A) B) C)

Short-term forecasts Quick-time forecasts Long-range forecasts

D) E)

Medium-term forecasts Rapid-change forecasts

16)

In general, which forecasting time frame best identifies seasonal effects?

Short-term forecasts

Quick-time forecasts

C) D)

Long-range forecasts Medium-term forecasts

Rapid-change forecasts

17)

In general, which forecasting time frame is best to detect general trends?

A) B) C)

Short-term forecasts Quick-time forecasts Long-range forecasts

D) E)

Medium-term forecasts Rapid-change forecasts

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM

18)

Which of the following forecasting methods can be used for short-term forecasting?

A) B) C)

Simple exponential smoothing Delphi technique Market research

D) E)

Hoskins- Hamilton smoothing Serial regression

19) Which of the following considerations is not a factor in deciding which forecasting model a firm should choose?

A) B) C)

Time horizon to forecast Product Accuracy required

D) E)

Data availability Analyst availability

20)

A company wants to forecast demand using the simple moving

average. If the company uses four prior yearly sales values (i.e., year 2016 = 100, year 2017 = 120, year 2018 = 140, and year 2019 = 210), which of the following is the simple A) B)

100.5 140.0

moving average forecast for year 2020? C) D) E)

142.5 145.5 155.0

21)

A company wants to forecast demand using the simple

moving average. If the company uses three prior yearly sales

F. ROBERT JACOBS, 2024

3 3 3

https://www.stuvia.com/user/AnswersCOM values (i.e., year 2017 = 130, year 2018 = 110, and year 2019 = 160), which of the following is the simple moving average forecast for year 2020? C) 133.3 A) 100.5 D) 135.6 B) 122.5 E) 139.3

22) A company wants to forecast demand using the weighted moving average. If the company uses two prior yearly sales values (i.e., year 2016 = 110 and year 2017 = 130), and we want to weight year 2018 at 10 percent and year A) B)

120 128

2019 at 90 percent, which of the following is the weighted moving average forecast for year 2020? C) 133 D) 138 E) 142

23) A company wants to forecast demand using the weighted moving average. If the company uses three prior yearly sales values (i.e., year

2017 = 160, year 2018 = 140, and year 2019 = 170), and we want to weight year 2014 at 30 percent, year 2018 at 30 percent, and year 2019 at 40 percent, which of the following is the weighted moving average forecast for year 2020?

A) B)

170 168

C) D) E)

158 152 146

24)

Given a prior forecast demand value of 230, a related

actual demand value of 250, and a smoothing constant alpha of 0.1, what is the exponential smoothing forecast value for the following period?

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM

A) B)

C) 230 232

238 D) E)

248 250

25) 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?

A) B) C)

5 to 10 percent 20 to 50 percent 20 to 80 percent

percent percent D)

60 to 120

90 to 100

26) If a firm produced a product that was experiencing growth in demand, the smoothing constant alpha (reaction rate to differences) used in an exponential smoothing A) B)

Close to zero A very low percentage, less than 10 percent

forecasting model would tend to be which of the following? C) The more rapid the growth, the higher the percentage

D) The more rapid the growth, the lower the percentage more E)

50 percent or

27)

Given a prior forecast demand value of 1,100, a

related actual demand value of 1,000, and a smoothing constant alpha of 0.3, what is the exponential smoothing forecast value?

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM

A) B)

C) 1,070 1,000 D) 1,130 1,030 E) 970

28)

A company wants to generate a forecast for unit

demand for year 2020 using exponential smoothing. The actual demand in year 2019 was 120. The forecast demand in year 2019 was 110. Using these data and a smoothing constant alpha of 0.1, which of the following is the resulting year 2020 forecast value? C) 111 A) 100 D) 114 B) 110 E) 120

29) As a consultant, you have been asked to generate a unit demand forecast for a product for year 2020 using exponential smoothing. The actual demand in year 2019 was 750. The forecast demand in year 2019 was 960. Using these data and a smoothing constant alpha of 0.3, which of the following is the resulting year 2020 forecast value?

A) B)

766 813

C) D) E)

897 1,023 1,120

30)

Which of the following is a possible source of bias error in forecasting?

A) B) C)

Failing to include the right variables Using the wrong forecasting method Employing less sophisticated analysts than necessary

D) E)

Using incorrect data Using standard deviation rather than MAD

31)

Which of the following is used to describe the degree of error?

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM

A) B) C)

Weighted moving average Regression Moving average

D) E)

Forecast as a percent of actual Mean absolute deviation

32) 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 A) 1 B) 3

be computed from these data?

C) 5

D) E)

15 123

33) A company has actual unit demand for four consecutive years of 100, 105, 135, and 150. The respective forecasts were 120 for all four years. Which of the following A) B)

2.5 10

is the resulting MAD value that can be computed from these data? C) 20 D) 22.5 E) 30

34)

If you were selecting from a variety of forecasting

models based on MAD, which of the following MAD values from the same data would reflect the most accurate model? C) 1.0 A) 0.2 D) 10.0 B) 0.8 E) 100.0

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 35)

A company has calculated its running sum of forecast

errors to be 500, and its mean absolute deviation is exactly 35. Which of the following is the company's tracking signal? A) Cannot be calculated based on this information D) More than 35 Exactly 35 B) About 14.3 E) About 0.07

36) A company has a MAD of 10. It wants to have a 99.7 percent control limit on its forecasting system. Its most recent tracking signal value is 3.1. What can the company conclude from this information?

A) B)

The forecasting model is operating acceptably. The forecasting model is out of control and needs to be corrected.

C) The MAD value is incorrect. D) The upper control value is less than

20.

It is using an inappropriate forecasting

methodology.

37) You are hired as a consultant to advise a small firm on forecasting methodology. Based on your research, you find the company has a MAD of 3. It wants to have a 99.7 percent control limits on its forecasting system. Its most recent A) B) C) D)

The forecasting model is operating acceptably. The forecasting model is out of control and needs to be corrected. The MAD value is incorrect. The upper control value is less than 20.

tracking signal value is 15. What should be your report to the company? E)

The company is using an inappropriate forecasting methodology.

F. ROBERT JACOBS, 2024

3 3 8

https://www.stuvia.com/user/AnswersCOM 38) Which of the following is the percentage of observations you would expect to see lying within a plus or minus 3 MAD range?

A) B)

57.05 percent 88.95 percent

C) D) E)

98.36 percent 99.85 percent 100 percent

39) Which of the following is the percentage of observations you would expect to see lying within a plus or minus 2 MAD range?

A) B)

57.04 percent 89.04 percent

C) D) E)

98.33 percent 99.86 percent 100.00 percent

40)

If the intercept value of a linear regression model is

40, the slope value is 40, and the value of X is 40, which of the following is the resulting forecast value using this model? C) 1,640 A) 120 D) 2,200 B) 1,600 E) 64,000

41) A company hires you to develop a linear regression forecasting model. Based on the company's historical sales information, you determine the intercept value of the model to be 1,200. You also find the slope value is minus 50. If, after developing the model, you are given a value of X = 10, which A)

−1,800

700

of the following is the resulting forecast value using this model?

C) D)

1,230 1,150 F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM E)

12,000

42)

Heavy sales of umbrellas during a rainstorm is an example of which of the following?

A) B) C)

A trend A causal relationship A statistical correlation

D) E)

A coincidence A fad

43) You are using an exponential smoothing model for forecasting. The running sum of the forecast error statistics (RSFE) is calculated each time a forecast is generated. You

find the last RSFE to be 34. Originally, the forecasting model used was selected because of its relatively low MAD of 0.4. To determine when it is time to re-evaluate the usefulness of the exponential smoothing model, you compute tracking A) B)

85 60

signals. Which of the following is the resulting tracking signal? C) D) E)

13.6 12.9 8

44) Continual review and updating in light of new data is a forecasting technique called second-guessing. ⊚

true

⊚

false

45) Cyclical influences on demand are often expressed graphically as a linear function that is either upward or downward sloping. ⊚

true F. ROBERT JACOBS, 2024

3 4 0

https://www.stuvia.com/user/AnswersCOM ⊚

false

46) Cyclical influences on demand may come from occurrences such as political elections, war, or economic conditions. ⊚

true

⊚

false

47)

Trend lines are usually the last things considered when developing a forecast.

⊚

true

⊚

false

48) Time series forecasting models make predictions about the future based on analysis of past data. ⊚

true

⊚

false

49) In the weighted moving average forecasting model, the weights must add up to one times the number of data points. ⊚

true

⊚

false

50) In a forecasting model using simple exponential smoothing, the data pattern should remain stationary. ⊚

true

⊚

false

51)

In a forecasting model using simple

moving average, the shorter the time span used for calculating the moving average, the closer the average follows volatile trends. F. ROBERT JACOBS, 2024

3 4 1

https://www.stuvia.com/user/AnswersCOM ⊚

true

⊚

false

52) In the simple exponential smoothing forecasting model, you need at least 30 observations to set the smoothing constant alpha. ⊚

true

⊚

false

53) Experience and trial and error are the simplest ways to choose weights for the weighted moving average forecasting model. ⊚

true

⊚

false

54) Bayesian analysis is the simplest way to choose weights for the weighted moving average forecasting model. ⊚

true

⊚

false

55)

The weighted moving average

forecasting model uses a weighting scheme to modify the effects of individual data points. This is its major advantage ⊚

true

⊚

false

56) A central premise of exponential smoothing is that more recent data are less indicative of the future than data from the distant past. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

3 4 2

https://www.stuvia.com/user/AnswersCOM 57) The equation for exponential smoothing states that the new forecast is equal to the old forecast plus the error of the old forecast. ⊚

true

⊚

false

58)

Exponential smoothing is always the best and most accurate of all forecasting models.

⊚

true

⊚

false

59) In exponential smoothing, it is desirable to use a higher smoothing constant when forecasting demand for a over the simple moving average model.

F. ROBERT JACOBS, 2024

3 4 3

https://www.stuvia.com/user/AnswersCOM

product experiencing high growth. ⊚

true

⊚

false

60) The value of the smoothing constant alpha in an exponential smoothing model is between 0 and 1. ⊚

true

⊚

false

61)

Simple exponential smoothing lags changes in demand.

⊚

true

⊚

false

62) Exponential smoothing forecasts always lag behind the actual occurrence but can be corrected somewhat with a trend adjustment. ⊚ true ⊚ false

63) Because the factors governing demand for products are very complex, all forecasts of demand contain error. ⊚

true

⊚

false

64) Random errors can be defined as those that cannot be explained by the forecast model being used. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM

65) There are no differences in strategic and tactical forecasting. A forecast is a mathematical projection, and its ultimate purpose should make no difference to the analyst. ⊚

true

⊚

false

66) Random errors in forecasting occur when an undetected secular trend is not included in a forecasting model. ⊚

true

⊚

false

67) When forecast errors occur in a normally distributed pattern, the ratio of the mean absolute deviation to the standard deviation is 2 to 1, or 2 × MAD = 1 standard deviation. ⊚

true

⊚

false

68)

MAD statistics can be used to generate tracking signals.

⊚

true

⊚

false

69)

RSFE in forecasting stands for "reliable safety function error."

⊚

true

⊚

false

70)

In forecasting, RSFE stands for "running sum of forecast errors."

⊚

true

⊚

false

71) A tracking signal (TS) can be calculated using the arithmetic sum of forecast deviations divided by the MAD. ⊚

true F. ROBERT JACOBS, 2024

3 4 5

https://www.stuvia.com/user/AnswersCOM ⊚

false

72) A restriction in using linear regression is that it assumes that past data and future projections fall on or near a straight line.

⊚

true

⊚

false

73) Regression is a functional relationship between two or more correlated variables, where one variable is used to predict another. ⊚

true

⊚

false

74)

Linear regression is not useful for aggregate planning.

⊚

true

⊚

false

75) The standard error of the estimate of a linear regression is not useful for judging the fit between the data ⊚

true

⊚

false

76)

Multiple regression analysis uses several regression models to generate a forecast.

and the regression line when doing forecasts.

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM ⊚

true

⊚

false

77)

For every forecasting problem, there is one best forecasting technique.

⊚

true

⊚

false

78) A good forecaster is one who develops special skills and experience at one forecasting technique and is capable of ⊚

true

⊚

false

79)

In causal relationship forecasting, leading indicators are used to forecast occurrences.

⊚

true

⊚

false

80) Qualitative forecasting techniques generally take advantage of the knowledge of experts and therefore do not require much judgment. ⊚

true

⊚

false

81)

Market research is a quantitative method of forecasting.

applying it to widely diverse situations.

⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 82) Decomposition of a time series means identifying and separating the time series data into its components. ⊚

true

⊚

false

83) A time series is defined in the text as chronologically ordered data that may contain one or more components of demand variation: trend, seasonal, cyclical, autocorrelation, and random. ⊚

true

⊚

false

84)

It is difficult to identify the trend in time series data.

⊚

true

⊚

false

85) In decomposition of time series data, it is relatively easy to identify cycles and autocorrelation components. ⊚

true

⊚

false

86) We usually associate the word "seasonal" with recurrent periods of repetitive activity that happen on other than an annual cycle. ⊚

true

⊚

false

87) Time series analysis is based on the idea that data relating to past demand can be used to predict future demand. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 88) When average, trend, and seasonality are removed from the data, random variations are what remains. ⊚

true

⊚

false

89) Autocorrelation means that the value expected at any point is highly correlated with its future values. ⊚

true

⊚

false

90) The greater the ability of a forecasting model to react quickly to changes in demand, the less accurate the forecast needs to be.

⊚

true

⊚

false

91) A moving average can be useful for forecasting but it introduces random fluctuations into the forecast that must be dealt with. ⊚

true

⊚

false

92) With a simple moving average, the number of periods used has a major impact on its ability to smooth out fluctuation but does not have much impact on its forecasting ability. ⊚

true

⊚

false

93)

Exponential smoothing models are not very accurate.

⊚

true

⊚

false

94)

Exponential smoothing models can be very complex.

⊚

true

⊚

false F. ROBERT JACOBS, 2024

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95)

Exponential smoothing models require a great deal of

computation.

⊚

true

⊚

false

96)

Exponential smoothing models require minimal data storage.

⊚

true

⊚

false

97)

Exponential smoothing with trend requires two different smoothing constants.

⊚

true

⊚

false

98)

Linear regression works both for time series and causal relationship forecasting.

⊚

true

⊚

false

99)

There is one type of seasonal variation.

⊚

true

⊚

false

100)

Forecast error is the same as residuals.

⊚

true

⊚

false

101) CPFR is an Internet tool to coordinate forecasting, production, and purchasing in a firm’s supply chain. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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102)

CPFR stands for “collective planning, forecasting, and reordering."

⊚

true

⊚

false

103) The goal of CPFR is to make sure suppliers know how much demand a firm is forecasting. ⊚

true

⊚

false

Answer Key Test name: Chapter 18 Test Bank

2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) 20) 21)

E D A B B A D C C D D B D A D C A B C C

22)

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) 40) 41) 42)

C B A C C C C A E C C A B A B C B C B B

43)

44) 45) 46) 47) 48) 49) 50) 51) 52) 53) 54) 55) 56) 57) 58) 59) 60) 61) 62) 63)

FALSE FALSE TRUE FALSE TRUE FALSE TRUE TRUE FALSE TRUE FALSE TRUE FALSE FALSE FALSE TRUE TRUE TRUE TRUE TRUE

64)

TRUE

65) 66) 67)

FALSE FALSE FALSE

F. ROBERT JACOBS, 2024

3 5 2

https://www.stuvia.com/user/AnswersCOM 68) 69) 70) 71) 72) 73) 74) 75) 76) 77) 78) 79) 80) 81) 82) 83) 84)

TRUE FALSE TRUE TRUE TRUE TRUE FALSE FALSE FALSE FALSE FALSE FALSE FALSE FALSE TRUE TRUE FALSE

85)

FALSE

86) 87) 88) 89) 90) 91) 92) 93) 94) 95) 96) 97) 98) 99) 100) 101) 102) 103)

FALSE TRUE FALSE FALSE TRUE FALSE FALSE FALSE FALSE FALSE TRUE TRUE TRUE FALSE TRUE TRUE FALSE FALSE

Student name: 1) In an overview of the major operations planning activities in a typical organization, which of the following activities precedes sales and operations (aggregate) planning?

A) B) C)

Process planning Workforce scheduling Master production scheduling

D) E)

Materials requirements planning Order scheduling

F. ROBERT JACOBS, 2024

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2) In an overview of the major operations planning activities in a typical logistics organization, which of the following activities does not come after sales and operations (aggregate) planning?

A) B) C)

Process planning Workforce scheduling Vehicle loading

D) E)

Materials requirements planning Order scheduling

3) In an overview of the major operations planning activities in a typical service organization, which of the following activities follows sales and operations (aggregate) planning?

A) B) C)

Process planning Workforce scheduling Master scheduling

D) E)

Materials requirements planning Order scheduling

In an overview of the major operations

planning activities in a typical logistics organization, which of the following activities most immediately follows sales and A) B) C)

Process planning Strategic capacity planning Vehicle dispatching

operations (aggregate) planning? D) Vehicle capacity planning E) Warehouse receipt planning

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 5) The main purpose of aggregate operations planning is to specify the optimal combination of which of the following?

A) B) C) sale

Workforce levels and inventory on hand Inventory on hand and financing costs for that inventory The strategic plan and the products available for

D) E)

The workforce level and the degree of automation Operational costs and the cash flow to support operations

6) In conducting aggregate operations planning, there are a number of required inputs. Which of the following inputs A) B) C) D)

Inventory levels and market demand Raw material availability and competitor's behavior Current workforce and economic conditions Current physical capacity and market demand

are considered external to the firm? E) Subcontractor capacity and inventory levels

7) In conducting aggregate operations planning, there are a number of required inputs. Which of the following inputs are considered external to the firm? A)

Competitor

behavior and economic conditions B) Market demand and inventory levels C) Subcontractor capacity and current workforce D) Economic conditions and current physical capacity E) Raw material availability and inventory levels

8) In conducting aggregate operations planning, there are a number of required inputs. Which of the following inputs

F. ROBERT JACOBS, 2024

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A) B) C) D)

Inventory levels and economic conditions Market demand and subcontractor capacity Current physical capacity and current workforce Competitor behavior and current workforce

are considered internal to the firm? E) Current physical capacity and raw material availability

Which of the following is a production planning strategy presented in the textbook?

A) B)

Level Strategic

C) D) E)

Balanced Synchronous Optimal

10)

Which of the following is considered a "pure" production planning strategy?

A) B) C) D)

Variable workforce, stable work hours Lag demand Level playing field Stable workforce, variable work hours

Product warehouse

11)

Matching the

production rate to the order rate by hiring and laying off employees as the order rate varies is which of the following A) B) C)

Stable workforce, variable work hours Chase Level

pure production planning strategies?

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM D) E)

Meeting demand Minimizing inventory

12) 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 A) B) C)

Stable workforce, variable work hours Chase Level

sales is which of the following production planning strategies? D) Full employment E) Skill maintenance

13)

Which of the following costs are relevant to aggregate operations planning?

A) B) C)

Sunk costs Transaction costs Backordering costs

D) E)

Legal costs Fixed costs

14) Using the cut-and-try method for aggregate operations planning, we can determine the production requirement in units of product. If the beginning inventory is 100 units, the demand forecast is 1,200, and the necessary safety stock is 20 A) B)

1,200 1,300

percent of the demand forecast, which of the following is the production requirement? C) 1,340 D) 1,500 E) 1,540

F. ROBERT JACOBS, 2024

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15) Using the cut-and-try method for aggregate operations planning, we can determine the production requirement in units of product. If the beginning inventory is 500 units, the demand forecast is 1,000, and the necessary safety stock is 10 A) B)

1,000 600

percent of the demand forecast, which of the following is the production requirement? C) 550 D) 450 E) 100

16) Which of the following methods discussed in the text requires generating several alternative aggregate plans?

A) B) C)

Trial and error Production smoothing Graphing and charting

D) E)

Aggregate plan simulation Cut and try

17) From an operational perspective, yield management is most effective under which of the following circumstances?

A) B) C) D)

Demand cannot be segmented by customer. Inventory is perishable. Fixed costs are low, and variable costs are high. The customer is a "captive" of the system.

The firm doing yield management is very profitable.

18) From an operational perspective, yield management is least effective under which of the following circumstances?

A) B)

Demand can be segmented by customer. The product can be sold in advance.

C) D)

Demand is highly variable. Fixed costs

F. ROBERT JACOBS, 2024

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are high, and variable costs are low. E) Demand is stable and close to capacity.

19) From an operational perspective, yield management is least effective under which of the following circumstances?

A) B) C)

Demand can be segmented by customer. The product can be sold in advance. The product can be kept to be sold when demand is stronger.

D) E)

Fixed costs are high, and variable costs are low. Demand is highly variable.

20) Which of the following is not one of the "number of interesting issues that arise in yield management"?

A) B) C)

Pricing structures that must appear logical to the customer and justify different prices Designing yield management programs that cannot be imitated by a competitor How to handle variability in customer arrivals, duration, and interval

D) E)

Managing the service process Training workers and managers to work in a yield management environment

21) What should have been the initial inventory in units of demand, if the production requirement in units of product is 900, demand forecast is 1,000, and the necessary safety stock A) B)

300 500

is 20 percent of the demand forecast? C) D) E)

100 1,900 Cannot find it

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 22) Using the cut-and-try method for aggregate operations planning, we can calculate the ending inventory and then calculate the safety stock as a percent of forecast demand. Suppose that the beginning inventory is 300, the production requirement in units of product is 1,350, and demand forecast A) B)

200 and 10% 150 and 10%

is 1,500. What is the ending inventory and percent safety stock?

C) D) E)

300 and 20% 450 and 30% 150 and 20%

23)

Assume that production required in periods 1, 2 and 3

respectively are 1,200, 1,500, and 900 units. One worker during the planning horizon can produce two units in one day. Number of workdays are 22 in period 1, −17 in period 2, and 21 in period 3. Assume that the beginning inventory and the ending inventory required are 300 units each. What is the number of workers required during the planning horizon of three periods?

A) B)

60 600

C) D) E)

35 30 300

24) The aggregate operations plan translates annual and quarterly business plans into broad labor and output plans for ⊚

true

⊚

false

the intermediate term of 3 to 18 months.

25) The objective of the aggregate operations plan is to ensure that the marketing and sales plans are realistic.

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM ⊚

true

⊚

false

26) The aggregate operations plan differs in virtually every aspect in service organizations as contrasted with ⊚

true

⊚

false

27) The sales and marketing plans are typically developed separately from the aggregate operations plan as a way of cross-checking results to ensure the integrity of assumptions about the future. ⊚

true

⊚

false

28) Aggregate sales and operations planning occur in a company about every 3 to 18 months. ⊚

true

⊚

false

29) Aggregation in sales and operations planning is by groups of customers on the supply side and by product families on the demand side of the firm's supply chain. ⊚

true

⊚

false

manufacturing organizations.

30) Accurate medium-range planning increases the likelihood of operating within the limits of a budget. ⊚

true

⊚

false

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31) The main purpose of the aggregate production plan is to specify the optimal combination of workforce level and inventory on hand. ⊚

true

⊚

false

32) The International Aggregate Planning Society (IAPS) has developed aggregate operations planning guidelines that ⊚

true

⊚

false

33)

The sales and operations planning process consists of a series of meetings.

⊚

true

⊚

false

34) The sales and operations planning process is made up of a variety of analytical techniques that interact to produce are followed by a majority of manufacturing firms.

short- and intermediate- term goals.

⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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35) Subcontracting is viewed as a risky strategy because the firm may lose control of product design and pricing. ⊚

true

⊚

false

36) The operations plan should not be updated but should be followed precisely until the longest-term planning horizon has passed. ⊚

true

⊚

false

37) Fixed and variable costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs. ⊚

true

⊚

false

38) Backordering costs incurred in producing a given product type in a given time period are relevant aggregate operations planning costs. ⊚

true

⊚

false

39) Foregone profit margins are considered as relevant aggregate operations planning costs. ⊚

true

⊚

false

40) Costs incurred in hiring, training, and laying off personnel are considered relevant aggregate operations planning costs. ⊚

true

⊚

false

41) The aggregate operations plan is developed from the master schedule and the strategic capacity plan. F. ROBERT JACOBS, 2024

3 6 3

https://www.stuvia.com/user/AnswersCOM ⊚

true

⊚

false

42) The widespread adoption of computing technology has led to the virtual abandonment of simple cut-and-try charting and graphical methods to develop aggregate operations plans. ⊚

true

⊚

false

43)

The increasing complexity of modern

operations management has made simple cut-and-try charting and graphical methods formerly used to develop aggregate ⊚

true

⊚

false

44)

In a services organization, strategic capacity planning follows process planning.

⊚

true

⊚

false

45)

In a logistics organization, vehicle dispatching immediately precedes vehicle loading.

⊚

true

⊚

false

46) Yield management is the process of allocating the right type of capacity to the right type of customer at the right ⊚

true

⊚

false

47) Order scheduling is the step in the aggregate operations planning process that immediately follows material requirements planning. F. ROBERT JACOBS, 2024

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operations plans impractical and obsolete.

prices at the right time to maximize revenue or yield.

⊚

true

⊚

false

48)

The master scheduling is a crucial input into the aggregate operations plan.

⊚

true

⊚

false

49) In services, once the aggregate staffing level is determined, the focus is on short-term workforce scheduling. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

3 6 5

https://www.stuvia.com/user/AnswersCOM 50) The aggregate operations planning variable "production rate" refers to the number of units completed per unit of time. ⊚

true

⊚

false

51) The aggregate operations planning variable "workforce level" refers to the number of workers needed to ⊚

true

⊚

false

accomplish the planned production.

52) The aggregate operations planning variable "inventory on hand" refers to the balance of unused inventory carried ⊚

true

⊚

false

53) One of the conditions that makes yield management effective is when inventory is easily stored and held for a time when demand is stronger. ⊚

true

⊚

false

54) Firms facing cyclical demand fluctuations would be wise to introduce complementary products whose cycles are ⊚

true

⊚

false

55) Firms that match the production rate to the order rate by hiring and laying off employees as the order rate varies are ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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56) A rate fence is a person who books airline seats at low rates far in advance and sells the seats at a profit later. over from the previous time period.

the same as their current products.

following what is known as the chase strategy.

⊚

true

⊚

false

57) A rate fence is a logical justification for different prices for what is essentially the same service. ⊚

true

⊚

false

58) Pricing for a service should primarily relate to the cost of providing the service and has little to do with capacity

F. ROBERT JACOBS, 2024

3 6 7

https://www.stuvia.com/user/AnswersCOM ⊚

true

⊚

false

59) Sales and operations planning is a process that helps a firm design products that are easier for marketing to sell. ⊚

true

⊚

false

60) The term sales and operations planning was coined by companies to refer to a process that was traditionally referred to as capacity planning. issues the service provider might face.

⊚

true

⊚

false

61)

Long-range planning generally covers a period of eighteen months or more.

⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM

62)

Short-range planning covers a period from one day to two weeks.

⊚

true

⊚

false

Answer Key

Test name: Chapter 19 Test Bank

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19)

A A B D A B A C A D B C C C B E B E C

20)

21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38)

A B D TRUE FALSE FALSE FALSE FALSE FALSE TRUE TRUE FALSE TRUE FALSE FALSE FALSE TRUE TRUE

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 39) 40)

FALSE TRUE

41)

FALSE

42) 43) 44) 45) 46) 47) 48) 49) 50) 51) 52) 53) 54) 55) 56) 57) 58) 59) 60) 61)

FALSE FALSE TRUE FALSE TRUE TRUE FALSE TRUE TRUE TRUE TRUE FALSE FALSE TRUE FALSE TRUE FALSE FALSE FALSE FALSE

62)

FALSE

Student name: 1) Which of the following is not an inventory cost?

A) B)

Holding Production change

C) D) E)

Shipping Ordering Shortage

Which of the following is not one of the categories of manufacturing inventory?

A) B) C)

Raw materials Finished products Component parts

F. ROBERT JACOBS, 2024

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D) E)

Just-in-time Supplies

Which of the following is one of the categories of manufacturing inventory?

A) B)

Economic order inventory Work-in-process

C) D) E)

Quality units JIT inventory Reorder point

Firms keep supplies of inventory for which of the following reasons?

A) B) C) D)

To maintain dependence of operations To provide a feeling of security for the workforce To meet variation in product demand To hedge against wage increases

In case the supplier changes the design

Which of the following is not a reason to carry

A) B) size C)

To provide a safeguard for variation in raw material delivery time To take advantage of economic purchase-order

D) E)

To meet variation in product demand To keep the stock out of the hands of competitors

inventory?

To maintain independence of operations

6) When developing inventory cost models, which of the following is not included as a costs to place an order?

Phone calls

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM B) C)

Taxes Clerical

D) E)

Calculating quantity to order Postage

7) When material is ordered from a vendor, which of the following is not a reason for delays in the order arriving on time?

A) B) C)

Normal variation in shipping time A shortage of material at the vendor's plant causing backlogs An unexpected strike at the vendor's plant

D) E)

A lost order Redundant ordering systems

Which of the following is not included as an inventory holding cost?

A) B) C)

Annualized cost of materials Handling Insurance

D) E)

Pilferage Storage facilities

Which of the following is usually included as an inventory holding cost?

A) B) C)

Order placing Breakage Typing up an order

D) E)

Quantity discounts Annualized cost of materials

10) In making any decision that affects inventory size, which of the following costs do not need to be considered?

F. ROBERT JACOBS, 2024

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A) B)

Holding costs Setup costs

C) D) E)

Ordering costs Fixed costs Shortage costs

11)

Which of the following is a fixed-order-quantity inventory model?

A) B) C)

Economic order quantity model The ABC model Periodic replenishment model

D) E)

Cycle counting model P model

12)

Which of the following is a fixed-time-period inventory model?

A) B) C)

The EOQ model The least cost method The Q-model

D) Periodic system model E) Just-in-time model

13)

Which of the following is a perpetual system for inventory management?

A) B)

Fixed-time period Fixed-order quantity

out D)

First-in-first-

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM E)

The wheel of

P-model

inventory

14) Which of the following is an assumption of the basic fixed-order quantity inventory model?

A) B) C)

Lead times are averaged. Ordering costs are variable. Price per unit of product is constant.

D) E)

Backorders are allowed. Stock-out costs are high.

15) Which of the following is not an assumption of the basic fixed-order quantity inventory model?

A) B) C)

Ordering or setup costs are constant. Inventory holding cost is based on average inventory. Returns to scale of holding inventory are diminishing.

D) E)

Lead time is constant. Demand for the product is uniform throughout the period.

16) Which of the following is the symbol used in the textbook for the cost of placing an order in the fixed-orderquantity inventory model? A)

B) C)

TC H

D) E)

Q S

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 17) Which of the following is the set of all cost components that make up the fixed-orderquantity total annual cost (TC) function?

A) B) cost C)

Annual purchasing cost, annual ordering cost, fixed cost Annual holding cost, annual ordering cost, unit

D) E)

Annual lead time cost, annual holding cost, annual purchasing cost Annual unit cost, annual setup cost, annual purchasing cost

Annual holding cost, annual ordering cost, annual purchasing cost

18) Assuming no safety stock, what is the reorder point (R) given an average daily demand of 50 units, a lead time of 10 days, and 625 units on hand?

A) B)

550 500

C) D) E)

715 450 475

19)

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? C) 78 A) 421 D) 26 B) 234 E) 312

20) If annual demand is 12,000 units, the ordering cost is $6 per order, and the holding cost is $2.50 per unit per year, which of the following is the optimal order quantity using the A) B)

576 240

fixed-order-quantity model?

F. ROBERT JACOBS, 2024

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C) D) E)

120.4 60.56 56.03

21) If annual demand is 50,000 units, the ordering cost is $25 per order, and the holding cost is $5 per unit per year, which of the following is the optimal order quantity using the A) B)

909 707

fixed-order-quantity model? C) D) E)

634 500 141

22) If annual demand is 35,000 units, the ordering cost is $50 per order, and the holding cost is $0.65 per unit per year, which of the following is the optimal order quantity using the A) B)

5,060 2,320

fixed-order-quantity model? C) D) E)

2,133 2,004 1,866

23) 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 A) B)

$849 $1,200

holding cost per unit per year of $4?

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM C) D) E)

$1,889 $2,267 $2,400

24) 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?

A) B) C)

D) $499,313 $1,501,600 E) None of these $1,498,200 choices are correct $500,687

25) A company has recorded the last five days of daily demand on its only product. Those values are 120, 125, 124, 128, and 133. The time from when an order is placed to when it arrives at the company from its vendor is 5 days. Assuming the basic fixed-order-quantity inventory model fits this A) B)

120 126

situation and no safety stock is needed, which of the following is the reorder point (R)? C) D) E)

630 950 1,200

26) A company has recorded the last six days of daily demand on a single product it sells. Those values are 37, 115, 93, 112, 73, and 110. The time from when an order is placed to when it arrives at the company from its vendor is 3 days. Assuming the basic fixed-order-quantity inventory model fits A) B)

540 270

this situation and no safety stock is needed, which of the following is the reorder point (R)? C) D) E)

115 90 60

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27) Using the probability approach to determine an inventory safety stock and wanting to be 95 percent sure of covering inventory demand, which of the following is the number of standard deviations necessary to have the 95 A) B)

1.28 1.64

percent service probability assured?

C) D) E)

1.96 2.00 2.18

28) To take into consideration demand uncertainty in reorder point (R) calculations, what do we add to the product of the average daily demand and lead time in days when calculating the value of R?

A) B) C) D)

The product of average daily demand times a standard deviation of lead time A z value times the lead time in days The standard deviation of vendor lead time times the standard deviation of demand The product of lead time in days times the

standard deviation of lead time E) The product of the standard deviation of demand variability and a z- score relating to a specific service probability

29) In order to determine the standard deviation of usage during lead time in the reorder point formula for a fixed- order-quantity inventory model, which of the following must be computed first?

A) B) C)

Standard deviation of daily demand Number of standard deviations for a specific service probability Stock-out cost

D) E) level

Economic order quantity Safety stock

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https://www.stuvia.com/user/AnswersCOM 30) If it takes a supplier 4 days to deliver an order once it has been placed and the standard deviation of daily demand is

A) B)

10 20

10, which of the following is the standard deviation of usage during lead time? C) 40 D) 100 E) 400

31)

If it takes a supplier 25 days to deliver an order once it

has been placed and the standard deviation of daily demand is 20, which of the following is the standard deviation of usage during lead time? C) 400 A) 50 D) 1,000 B) 100 E) 1,600

32) If it takes a supplier 2 days to deliver an order once it has been placed and the daily demand for 3 days has been 120, 124, and 125, which of the following is the standard A) B)

About 2.16 About 3.06

deviation of usage during lead time? C) D) E)

About 4.66 About 5.34 About 9.30

33) A company wants to determine its reorder point (R). Demand is variable and the company wants to build a safety stock into R. If the average daily demand is 12, the lead time is 5 days, the desired z value is 1.96, and the standard A) B)

About 6 About 16

deviation of usage during lead time is 3, which of the following is the desired value of R? C) About 61

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D) E)

About 66 About 79

34) A company wants to determine its reorder point (R). Demand is variable and the company wants to build a safety stock into R. The company wants to have a service probability coverage of 95 percent. If average daily demand is 8, lead time is 3 days, and the standard deviation of usage during lead A) B)

About 17.9 About 19.7

time is 2, which of the following is the desired value of R?

C) D) E)

About 24.0 About 27.3 About 31.2

35) Which of the following is not necessary to compute the order quantity using the fixedtime-period model with safety stock?

A) B) C)

Forecast average daily demand Safety stock Inventory currently on hand

days D) E)

Ordering cost Lead time in

36) Using the fixed-time-period inventory model, and given an average daily demand of 200 units, 4 days between inventory reviews, 5 days for lead time, 120 units of inventory on hand, a z of 1.96, and a standard deviation of demand over the review and lead time of 3 units, which of the following is the order quantity?

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A) B)

About 1,086 About 1,686

C) D) E)

About 1,806 About 2,206 About 2,686

37)

Using the fixed-

time-period inventory model, and given an average daily demand of 75 units, 10 days between inventory reviews, 2 days for lead time, 50 units of inventory on hand, a service probability of 95 percent, and a standard deviation of demand A) B)

863 948

over the review and lead time of 8 units, which of the following is the order quantity? C) 1,044 D) 1,178 E) 4,510

38) Using the fixed-time-period inventory model, and given an average daily demand of 15 units, 3 days between inventory reviews, 1 day for lead time, 30 units of inventory on hand, a service probability of 98 percent, and a standard deviation of daily demand is 3 units, which of the following is the order quantity?

A) B)

About 30.4 About 36.3

C) D) E)

About 42.3 About 56.8 About 59.8

39) You would like to use the fixed-time-period inventory model to compute the desired order quantity for a company. You know that vendor lead time is 5 days and the number of days between reviews is 7. Which of the following is the standard deviation of demand over the review and lead time if

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM A) B)

About 27.7 About 32.8

the standard deviation of daily demand is 8?

C) D) E)

About 35.8 About 39.9 About 45.0

40)

You would like to use the fixed-time period inventory model to

compute the desired order quantity for a company. You know that vendor lead time is 10 days and the number of days between reviews is 15. Which of the following is the standard deviation of demand over the review and lead time period if A) B)

25 40

the standard deviation of daily demand is 10?

C) D) E)

50 73 100

41) If a vendor has correctly used marginal analysis to select its stock levels for the day (as in the newsperson problem in the text), and if the profit resulting from the last unit being sold (Cu) is $0.90 and the loss resulting from that unit if it is not sold (Co) is $0.50, which of the following is the probability of the last unit being sold?

A) B)

Greater than 0.357 Greater than 0.400

0.678

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https://www.stuvia.com/user/AnswersCOM D)

Greater than

None of these

Greater than 0.556

choices are correct

42) If a vendor has correctly used marginal analysis to select its stock levels for the day (as in the newsperson problem in the text), and if the profit resulting from the last unit being sold (Cu) is $120 and the loss resulting from that unit if it is not sold (Co.) is $360, which of the following is the probability of the last unit being sold?

A) B)

Greater than 0.90 Greater than 0.85

0.25 D)

Greater than

None of these

Greater than 0.75

43) A)

The Pareto principle is best applied to which of the following inventory systems? EOQ

B) C) D)

Fixed-time-period ABC classification Fixed-order quantity

Single-period ordering system

choices are correct

44) Which of the following are the recommended percentage groupings of the ABC classifications of the dollar volume of products?

A items get 15 percent, B items get 35 percent, and C items get 50 percent.

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https://www.stuvia.com/user/AnswersCOM B) C) D)

A items get 15 percent, B items get 45 percent, and C items get 40 percent. A items get 25 percent, B items get 35 percent, and C items get 40 percent. A items get 25 percent, B items get 15 percent,

and C items get 60 percent. E) A items get 20 percent, B items get 30 percent, and C items get 50 percent.

45) Using the ABC classification system for inventory, which of the following is a true statement?

A) B) C) D)

The C items are of moderate dollar volume. You should allocate about 50 percent of the dollar volume to B items. The A items are of low dollar volume. The A items are of high dollar volume.

Inexpensive and low usage items are classified as C no matter how critical.

46) Which of the following values for z should we use in as a safety stock calculation if we want a service probability of 98 percent?

A) B) C)

D) 1.64 1.96 2.05

2.30 E) None of these choices are correct

47) Computer inventory systems are often programmed to produce a cycle count notice in which of the following case?

A) B) C)

When the record shows a near maximum balance on hand When the record shows positive balance but a backorder was written When quality problems have been discovered

with the item D) When the item has become obsolete E) When the item has been misplaced in the stockroom

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https://www.stuvia.com/user/AnswersCOM 48) Demand for organic super fresh lettuce in a local supermarket is 5 with probability 0.2; 6 with probability 0.3; 7 with probability 0.4 or 8 with probability 0.1. Unsold lettuce is given to a food bank with a salvage value of $1.00 per head of lettuce. Cost of the lettuce is $3.00 per unit. Selling price is $6.00 per unit. Using the single-period model, what is the optimal order quantity in number of units of lettuce the supermarket should use?

D)8 E) None of these choices are correct

A) B) C)5

7 6

49)

Daily demand for fresh cauliflower in the ZZ-

Warehouse store follows a normal distribution with a mean of 100 cartons and standard deviation of 20 cartons. The ZZ- Warehouse buys at a cost of $50.00 per carton and sells it for $70.00 per carton. Unsold cartons are sold for $20.00 per carton. What is the optimal order quantity, using the single- period model? C) 95 A) 100 D) 110 B) 80 E) 105

50) Using the simple order quantity model in an inventory control problem, Kathy calculated the order quantity to be 1,000 units. In a review, she found out that the demand is actually double that of the quantity she had used and the holding cost is only half that of the value she used. The new economic order quantity using the correct data will be

A) B) C)

D) 707.1. 1,000. E) cannot be 2,000. found without other cost 1,414. information.

51) In ABC Printing, Queen’s black is a popular input with an annual demand of 50,000 gallons, ordering cost of $50 per order, and holding cost of $5 per unit per year; the economic order quantity is 1,000. Hence during the year, they used 1,000 as the order quantity. An audit of the costs revealed that the true ordering cost was only $25 and the true holding cost was $10 per gallon per year. The correct order

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A) B)

0 1,250

−1,250

quantity would have been 500. How much did ABC lose due to incorrect cost information during the year?

D) E)

500 Cannot be found without additional information.

52)

Inventory is defined as the stock of any item or resource used in an organization.

⊚

true

⊚

false

53) An inventory system is a set of policies and controls that monitors levels of inventory and determines what levels should be maintained, when stock should be replenished, and ⊚

true

⊚

false

54) One of the basic purposes of inventory analysis in manufacturing and stock keeping services is to specify when items should be ordered. ⊚

true

⊚

false

55) One of the basic purposes of inventory analysis in manufacturing and stock keeping services is to determine the level of quality to specify. ⊚

true

⊚

false

56) One of the basic purposes of inventory analysis in manufacturing and stock keeping services is to determine how F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM ⊚

true

⊚

false

how large orders should be.

large the orders to vendors should be.

57)

In inventory models, high holding costs tend to favor

⊚

true

⊚

false

high inventory levels.

58) In inventory models, high holding costs tend to favor low inventory levels and frequent replenishment. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 59) If the cost to change from producing one product to producing another were zero, the lot size would be very small. ⊚

true

⊚

false

60)

Shortage costs are precise and easy to measure.

⊚

true

⊚

false

61) Dependent demand inventory levels are usually managed by calculations using calculusdriven, cost- minimizing models. ⊚

true

⊚

false

62) The fixed-time period inventory system has a smaller average inventory than the fixedorder-quantity system because it must also protect against stock outs during the ⊚

true

⊚

false

63) The fixed-order quantity inventory model favors less expensive items because average inventory is lower. ⊚

true

⊚

false

64) The fixed-order quantity inventory model is more appropriate for important items such as critical repair parts because there is closer monitoring and, therefore, quicker ⊚

true

⊚

false

review period when inventory is checked.

F. ROBERT JACOBS, 2024

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response to a potential stock out.

65) The fixed-order quantity inventory model requires more time to maintain because every addition or withdrawal is logged. ⊚

true

⊚

66)

Fixed-order quantity inventory models are "event triggered."

⊚

true

67)

Fixed-order quantity inventory models are "time triggered."

⊚

true

⊚

false

68)

Fixed-time period inventory models are "event triggered."

⊚

true

⊚

false

69)

Fixed-time period inventory models are "time triggered."

⊚

true

⊚

false

⊚

false

F. ROBERT JACOBS, 2024

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70) Fixed-order quantity inventory systems determine the reorder point, R, and the order quantity, Q, values. ⊚

true

⊚

false

71) The computation of a firm's inventory position is found by taking the inventory on hand and adding it to the on- order inventory, and then subtracting backordered inventory. ⊚

true

⊚

false

72) Using the probability approach, we assume that the demand over a period of time is normally distributed. ⊚

true

⊚

false

73) Safety stock can be defined as the amount of inventory carried in addition to the expected demand. ⊚

true

⊚

false

74) If demand for an item is normally distributed, we plan for demand to be twice the average demand and carry 2 ⊚

true

⊚

false

standard deviations worth of safety stock inventory.

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 75)

Safety stock can be computed when using the

fixed-order quantity inventory model by multiplying a z value representing the number of standard deviations to achieve a ⊚

true

⊚

false

76) The key difference between a fixed-order quantity inventory model where demand is known and one where demand is uncertain is in computing the reorder point. ⊚

true

⊚

false

77) Fixed-time period inventory models generate order quantities that vary from time period to time period, ⊚

true

⊚

false

78) Fixed-order quantity systems assume a random depletion of inventory, with less than an immediate order ⊚

true

⊚

false

service level or probability by the standard deviation of periodic demand.

F. ROBERT JACOBS, 2024

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depending on the usage rate.

when a reorder point is reached.

79)

The standard fixed-

time period model assumes that inventory is never counted but determined by EOQ measures. ⊚

true

⊚

false

80)

Safety stock is not necessary in any fixed-time period system.

⊚

true

⊚

false

81) In the fixed-time period model it is necessary to determine the inventory currently on hand to calculate the size ⊚

true

⊚

false

of the order to place with a vendor.

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https://www.stuvia.com/user/AnswersCOM 82) Some inventory situations involve placing orders to cover only one demand period or to cover short-lived items at frequent intervals. ⊚

true

⊚

false

83) The optimal stocking decision in inventory management, when using marginal analysis, occurs at the point where the benefits derived from carrying the next unit are more than the costs for that unit.

⊚

true

⊚

false

84) When stocked items are sold, the optimal inventory decision using marginal analysis is to stock that quantity where the probable profit from the sale or use of the last unit is equal to or greater than the probable losses if the last unit remains unsold. ⊚

true

⊚

false

85) Cycle counting is a physical inventory-taking technique in which inventory is counted on a frequent basis ⊚

true

⊚

false

86) The "sawtooth effect," named after turn around artist Al "Chainsaw" Dunlap, is the severe reduction of inventory and service levels that occurs when a firm has gone through a hostile takeover. ⊚

true

⊚

false

87) The "sawtooth effect" is named after the jagged shape of the graph of inventory levels over time. rather than once or twice a year.

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⊚

true

⊚

false

88) Price-break models deal with the fact that the selling price of an item varies with the order size. ⊚

true

⊚

false

89) Price-break models deal with the fact that the selling price of an item generally increases as the order size increases. ⊚

true

⊚

false

90) Price-break models deal with discrete or step changes in price as order size changes rather than a per-unit change. ⊚

true

⊚

false

91) In a price-break model of lot sizing, to find the lowest- cost order quantity, it is sometimes necessary to calculate the ⊚

true

⊚

false

economic order quantity for each possible price.

92) In a price-break model of lot sizing, to find the lowest- cost order quantity, it is sometimes necessary to calculate the economic order quantity for each possible price and to check ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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93)

In a price-break model of lot sizing, the lowest cost quantity is always feasible.

⊚

true

⊚

false

94)

With the fixed-order quantity model, there is no need for regular inventory monitoring.

⊚

true

⊚

false

to see whether the lowest cost quantity is feasible.

95)

Manufacturing inventory is the materials that companies need to run their factories.

⊚

true

96)

High setup costs favor producing in small batches.

⊚

true

⊚

false

97)

In-transit inventory is material being moved from suppliers to customers.

⊚

true

⊚

false

98)

Holding and carrying costs are different costs.

⊚

true

⊚

false

99)

Setup and production change costs are different costs.

⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM ⊚

false

100) An inventory control system is designed to keep employees from pilfering inventory from a firm. ⊚

true

⊚

false

101)

A Q-model has variable order quantities while a P- model has fixed order quantities.

⊚

true

⊚

false

102) A Q-model places orders at regular time intervals while a P-model places orders irregularly. ⊚

true

⊚

false

103)

A Q-model requires more record keeping than a P- model.

⊚

true

⊚

false

104)

A Q-model requires more inventory than does a P- model.

⊚

true

⊚

false

105)

It takes more time to maintain a Q-model than it does a P-model.

⊚

true

⊚

false

Answer Key F. ROBERT JACOBS, 2024

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Test name: Chapter 20 Test Bank 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19)

C D B C E B E A B D A D B C C E C B B

20)

21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) 40)

B B E A C B B E A B B B D D D B A C A C

41)

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 42) 43) 44) 45) 46) 47) 48) 49) 50) 51) 52) 53) 54) 55) 56) 57) 58) 59) 60) 61)

C C A D C B A C B B TRUE TRUE TRUE FALSE TRUE FALSE TRUE TRUE FALSE FALSE

62)

FALSE

63) 64) 65) 66) 67) 68) 69) 70) 71) 72) 73) 74) 75) 76) 77) 78) 79) 80) 81) 82)

FALSE TRUE TRUE TRUE FALSE FALSE TRUE TRUE TRUE TRUE TRUE FALSE TRUE TRUE TRUE FALSE FALSE FALSE TRUE TRUE

83)

FALSE

84) 85) 86)

TRUE TRUE FALSE

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 87) 88) 89) 90) 91) 92) 93) 94) 95) 96) 97) 98) 99) 100) 101) 102) 103)

TRUE TRUE FALSE TRUE TRUE TRUE FALSE FALSE FALSE FALSE TRUE FALSE FALSE FALSE FALSE FALSE FALSE

104) 105)

FALSE TRUE

Student name: 1) This industry type combines multiple component parts into a finished product, which is then stocked in inventory to satisfy customer demand.

A) B) C)

Assemble-to-stock Make-to-stock Assemble-to-order

order D) E)

Make-to-order Engineer-to-

2) In this industry type, items are manufactured by machine rather than assembled from parts. These are standard stock items carried in anticipation of customer demand.

A) B) C)

Assemble-to-stock Make-to-stock Assemble-to-order

order D)

Make-to-order

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM E)

Engineer-to-

3) In this industry type, a final assembly is made from standard options that the customer chooses.

A) B) C)

Assemble-to-stock Make-to-stock Assemble-to-order

order D) E)

Make-to-order Engineer-to-

4) In this industry type, items are manufactured by machine to customer order. These are generally industrial orders.

A) B) C)

Process Make-to-stock Assemble-to-order

order D) E)

Make-to-order Engineer-to-

5) In this industry type, Iitems are fabricated or assembled completely to customer specification.

A) B) C)

Process Make-to-stock Assemble-to-order

order

F. ROBERT JACOBS, 2024

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D) E)

Make-to-order Engineer-to-

6) This industry type includes industries such as foundries, rubber and plastics, specialty paper, chemicals, paint, drug, and food processors.

A) B) C)

Process Make-to-stock Assemble-to-order

order D) E)

Make-to-order Engineer-to-

Which of the following is not a direct input to the material planning?

A) B) C)

Bill-of-material file Aggregate production plan Master production schedule

Inventory records file

A BOM file is also called which of the following?

A) B) C)

Product tree Stocking plan Inventory usage record

D) E)

Production parts plan Time bucket schedule

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 9) Which of the following industry types have high expected benefits from the application of MRP?

A) B)

Fabricate-to-stock Fabricate-to-order

process D)

Continuous

Service and

Assemble-to-stock

repair parts

10) Which of the following industry types have high expected benefits from the application of MRP?

A) B) C)

Fabricate-to-order Hospitals Assemble-to-order

D) E)

Aircraft manufacturers Oil refineries

11)

Which of the following industry types will not benefit greatly from the application of MRP?

A) B) C)

Fabricate-to-order Assemble-to-stock Assemble-to-order

D) E)

Manufacture- to-order None of these choices are correct

12)

A product tree can do which of the following?

A) B) C)

Help to compute component usage. Reduce product scrap. Reduce labor overtime.

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D) E)

Reduce regular time labor. Locate raw material supplies.

13)

Which of the following is an input to the master production schedule (MPS)?

A) B)

Inventory records file The aggregate plan

report D)

The exception

Planned order

The bill-of-materials

14)

Which of the following is one of the main purposes of an MRP system?

A) B) C)

Educate personnel in basic work rules. Determine the amount of materials needed to produce each end item. Stimulate the workforce.

D) E)

Decrease labor requirements. Increase inventory accuracy.

15)

One of the main purposes of an MRP system is which of the following?

A) B) C) D)

Track inventory levels. Create productive capacity. Decrease layers of management. Develop schedules specifying when each

schedules

component should be ordered or produced. E) Upgrade manufacturing's professionalism.

16) Which of the following is most closely related to the reason a firm might implement MRP?

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM D) A) B) C)

To ensure So it can order the right parts So it can order parts sufficient for immediate use So it can ensure that parts to arrive prior to when they are needed

appropriate quality levels E) To keep process costs between the LCL and the UCL

17)

MRP systems seek to achieve which of the following?

A) B) C)

Minimize lot sizes. Determine the number of dependent demand items needed. Relieve capacity bottlenecks.

D) E)

Provide a yardstick for future improvements. Improve on JIT methods.

18)

Which of the following is an input to the master production schedule?

A) B) C) D)

Prototype products from product development Aggregate component schedule Peg reports Exception reports

Forecasts of random demand from customers

19)

Which of the following is an input to the master production schedule?

A) B) C)

Bill-of-materials (BOM) file Inventory records file Exception reports

D) E)

Planned-order schedules None of these choices are correct

F. ROBERT JACOBS, 2024

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20)

Which of the following is an input file necessary to run an MRP system?

A) B)

Bill-of-materials (BOM) file Quality management report

reports C)

Exception

Planned-order

schedules E) Purchasing contracts

21)

Which of the following is an input file necessary to run an MRP system?

A) B) C)

Exception report Computer-aided-design files Inventory records file

D) E)

Personnel files Planned-order schedule

22)

Which of the following is not a production activity report generated by MRP?

A) B) C)

Exception report Planning report Performance control report

D) E)

Planned-order schedules Bill-of- materials report

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 23) In an MRP program, the program accesses the status segment of an inventory record according to specific periods A) B)

Cubed time units Time buckets

called which of the following? C) BOM units D) Time modules E) Time lines

24) Which of the following files allows us to retrace a material requirement upward in the product structure through each level, identifying each parent item that created the demand?

A) B) C)

Planning bill-of-materials file Modular bill-of-materials file Super bill-of-materials file

D) E)

Exception report file Peg record file

25)

We would expect to see which of the following in an MRP system's inventory status file?

A) B) C)

End items produced Late/early delivery records Scrap parts

D) Labor efficiency E) Computer errors

26)

In a typical inventory status record, which of the following would you not expect to see?

A) B) C)

Scrap allowance Order quantity Gross requirements

Planned-order releases

F. ROBERT JACOBS, 2024

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Lost items

27)

Which of the following is considered a primary report in an MRP system?

A) B) C)

Planning reports Performance reports Exception reports

D) E)

Planned-order schedules Cycle counting reports

28)

Which of the following is considered a secondary report in an MRP system?

A) B) C)

Planned-order schedule Exceptions reports Inventory record

D) E)

Firm orders from known customers Engineering change reports

29)

Which of the following is considered a primary report in an MRP system?

A) B) C)

Planned-order schedule Peg report Planning report

D) E)

Inventory accuracy report Aggregate production plan report

30) Which of the following is the net requirement using an MRP program if the gross requirement is 1,250 and the inventory on hand is 50?

D) 2,450 1,200 E) None of these

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1,300 choices are correct 1,150

31)

Which of the following is the net requirement using an

MRP program if the gross requirement is 1,000 and the inventory on hand is 500? C) 500 A) 1,000 D) 400 B) 950 E) 350

32)

Which of the following is the planned-order release

using an MRP program if the gross requirement is 5,000, inventory on hand is 1,200, and planned receipts are 800? C) 3,000 A) 7,000 D) 2,000 B) 4,200 E) 1,200

33) Which of the following is the planned-order release using an MRP program if the gross requirement is 670 and the inventory on hand is 600?

A) B) C)

670 600 530

D) E)

70 None of these choices are correct

34)

Which of the following can be used for lot sizing in an MRP system?

A) B) C)

Low-level coding Time bucket size Least unit cost

D) E)

Inventory record file Peg inventory

35)

Which of the following is not a lot-sizing technique used in MRP systems?

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A) B)

Lot-for-lot (L4L) Economic order quantity (EOQ)

(LUC) D)

Least unit cost

Warehouse

Least total cost (LTC) loading factor (WLF)

36) Under the lot-for-lot (L4L) lot-sizing technique as used in MRP, we would expect which of the following?

A) B) C)

A consistent lag of supply behind demand Minimized carrying costs Minimized setup costs

D) E)

A just-in-time management philosophy Minimized quality problems

37) 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?

A) B)

350 247

C) D) E)

23 185 78

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https://www.stuvia.com/user/AnswersCOM 38) If annual demand is 12,000 units, annual holding cost is $15 per unit, and setup cost per order is $25, which of the following is the EOQ lot size?

A) B)

2,000 1,200

C) D) E)

1,000 300 200

39) Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal? C) Least total A) Economic order quantity B) Lot-for-lot

cost

D) E)

Least unit cost ABC analysis

40) Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot size in which these are most nearly equal?

A) B)

Kanban Just-in-time system

C) D) E)

MRP Least unit cost Least total cost

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41) Which of the following is a dynamic lot-sizing technique that adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each A) B) C)

Economic order quantity Lot-for-lot Least total cost

lot size, picking the lot size with the lowest unit cost? D) E)

Least unit cost Inventory item averaging

42) In an MRP problem, A is an MPS item. Every A requires 2 B’s and 3 C’s. Every B requires 5 C’s. All lead times are two periods. All initial inventory values are 0. Use lot-4-lot method for order quantities for all items. If gross A) B)

0 1,000

requirement for A is 500 in period 8, what will be the planned order release for B in period 4? C) 500 D) 1,500 E) 6500

43)

In an MRP problem, A is an MPS item. Every A requires 2

B’s and 3 C’s. Every B requires 5 C’s. All lead times are two periods. Initial inventory value for A is 100, B is 200, and C is 0. Use lot-4-lot method for order quantities for all items. If gross requirement for A is 800 in period 9, what will be the A) B)

1,600 1,400

planned-order release for B in period 5?

C) D) E)

700 800 1,200

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44) In an MRP problem, A is an MPS item. Every A requires 3 B’s and 2 C’s. Every B requires 5 C’s. All lead times are one period. Initial inventory values for all items are 0. Use lot-4-lot method for order quantities for all items. If A) B)

800 1,600

gross requirement for A is 400 in period 10, what will be the planned-order release for C in period 8? C) 6,800 D) 6,000 E) 1,200

45) In an MRP problem, A is an MPS item. Every A requires 2 B’s and 3 C’s. Every B requires 5 C’s. All lead times are two periods. All initial inventory values are 0. Use lot-4-lot method for order quantities for all items. What is the A) B) C)

LLC for B is 2 and C is 1. LLC for both B and C is 2. LLC for B is 1 and C is 2.

low level code (LLC) for B and C?

D) E)

LLC for B is 0 and C is 1. LLC for all items is 1.

46)

MRP stands for manufacturing requirements planning.

⊚

true

⊚

false

47)

MRP stands for Material Requirements Planning.

⊚

true

⊚

false

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48) Manufacturing firms maintain bill of materials (BOM) files, which are simply a sequencing of everything that goes into a final product. ⊚

true

⊚

false

49)

MRP is based on dependent demand.

⊚

true

⊚

false

50) MRP is most valuable where a number of products are made in batches using the same productive equipment. ⊚

true

⊚

false

51) The master production schedule states the number of items to be produced during specific time periods. ⊚

true

⊚

false

52) MRP is least valuable in industries where a number of products are made in batches using the same productive equipment. ⊚

true

⊚

false

53) MRP is a logical, easily understandable approach to the problem of determining the number of parts, components, ⊚

true

⊚

false

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54) MRP provides the schedule specifying when each part and component of an end item should be ordered or produced. ⊚

true

⊚

false

55) The deeper one looks into the product creation sequence, the more the requirements of dependent demand ⊚

true

⊚

false

and materials needed to produce each end item.

items tend to become "lumpy."

56) The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to smooth out and become even over time. ⊚

true

⊚

false

57) A master production schedule is an input to a material requirements planning (MRP) system. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 58)

An input to the material requirements planning (MRP) system is an exception report.

⊚

true

⊚

false

59)

An input to the material requirements planning (MRP) system is an inventory records file.

⊚

true

60)

An output of MRP is a bill of materials (BOM) file.

⊚

true

⊚

false

⊚

false

61) A BOM file is often called a product structure file or product tree because it shows how a product is put together. ⊚

true

⊚

false

62) Computing the quantity of each component that goes into a finished product can be done by expanding (or exploding) each item in a product structure file and summing at all levels. ⊚

true

⊚

false

63)

A modular bill-of-materials includes items with fractional options.

⊚

true

⊚

false

64) A modular bill-of-materials is the term for an item that can be produced and stocked as a subassembly. ⊚

true

⊚

false

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65)

The MRP program performs its analysis from

the bottom up of the product structure trees, imploding requirements level by level. ⊚

true

⊚

false

66)

Net change MRP systems are "activity" driven.

⊚

true

⊚

false

67) In a net change MRP system, requirements and schedules are updated whenever a transaction is processed ⊚

true

⊚

false

68) In a net change MRP system, requirements and schedules are considered rigid and never updated. ⊚

true

⊚

false

that has an impact on the item.

69) Net change MRP reflects the exact status of each item managed by the system in "real time." ⊚

true

⊚

false

70) Low-level coding in MRP indicates the exact status of each item managed by the system in "real time." ⊚

true

⊚

false

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71) In a net change MRP program, a change in one item will result in a completely new inventory plan and schedule for every item in the master production schedule. ⊚

true

⊚

false

72)

Generally, determining lot sizes in MRP systems is simple.

⊚

true

⊚

false

73) A lot-for-lot (L4L) lot-sizing technique does not take into account setup costs or capacity limitations. ⊚

true

⊚

false

74) The lot-for-lot (L4L) lot-sizing technique minimizes carrying cost by taking into account setup costs and capacity limitations.

⊚

true

⊚

false

75)

Lot-for-lot (L4L) is the most common lot-sizing technique.

⊚

true

⊚

false

76) The economic order quantity (EOQ) lot-sizing technique produces or acquires exactly the amount of product that is needed each time period with none carried over into future periods. ⊚

true

⊚

false

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77) The economic order quantity (EOQ) lot-sizing technique uses the "square root formula" to balance setup ⊚

true

⊚

false

cost, carrying cost, and cost of stockouts.

78) The economic order quantity (EOQ) lot-sizing technique uses the "square root formula" to balance setup costs and carrying costs. ⊚

true

⊚

false

79) The least total cost method (LTC) lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then ⊚

true

⊚

false

80) The least unit cost method (LUC) lot-sizing technique calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then ⊚

true

⊚

false

81) The least unit cost method of lot-sizing technique adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size, picking the lot ⊚ true ⊚ false

82) The least unit cost method of lot-sizing adds ordering, stock-out, and inventory carrying costs for each trial lot size and divides by the number of units in each lot size, picking selects the lot in which these are most nearly equal.

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selects the lot in which these are most nearly equal.

size with the lowest unit cost.

the lot size with the lowest unit cost.

⊚

true

⊚

false

83)

"Projected available balance" is a term referring to unsold finished goods inventory.

⊚

true

⊚

false

84) Projected available balance is the amount of inventory that is expected as of the beginning of a period. ⊚

true

⊚

false

85) The three main inputs to an MRP system are the bill- of-materials, the master schedule, and the inventory records file. ⊚

true

⊚

false

86)

When implemented correctly, MRP links all areas of the business.

⊚

true

⊚

false

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87) The time-phased plan specifying how many and when the firm plans to build each end item is called the materials requirements plan (MRP).

⊚

true

⊚

false

88) The time-phased plan specifying how many and when the firm plans to build each end item is called the master ⊚

true

⊚

false

89) Time fences are periods of time having some specified level of opportunity for the customer to make changes. ⊚

true

⊚

false

90) The customer grace period is a time span having some specified level of opportunity for the customer to make changes. ⊚

true

⊚

false

91)

A super bill can specify that a fraction of a part, say 25 percent, is used.

production schedule (MPS).

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⊚

true

⊚

false

92)

The master production schedule deals exclusively with dependent demand items.

⊚

true

⊚

false

Answer Key

Test name: Chapter 21 Test Bank

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15)

A B A D E A B A C C A A B B D

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A B E E

20)

21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) 40)

C E B E C E D B A A C C D C E B A E C E

41)

42) 43) 44) 45) 46) 47) 48) 49) 50) 51) 52) 53) 54) 55) 56) 57) 58) 59) 60)

B E A C FALSE TRUE TRUE TRUE TRUE TRUE FALSE TRUE TRUE TRUE FALSE TRUE FALSE TRUE FALSE

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TRUE

62)

TRUE

63) 64) 65) 66) 67) 68) 69) 70) 71) 72) 73) 74) 75) 76) 77) 78) 79) 80) 81) 82)

FALSE TRUE FALSE TRUE TRUE FALSE TRUE FALSE FALSE FALSE TRUE FALSE TRUE FALSE FALSE TRUE TRUE FALSE TRUE FALSE

83)

FALSE

84) 85) 86) 87) 88) 89) 90) 91) 92)

TRUE TRUE FALSE FALSE TRUE TRUE FALSE TRUE FALSE

Student name: 1) In this type of production, the typical scheduling approach is infinite, forward scheduling of jobs: usually labor-limited, but certain functions may be machine-limited (a heat-treating process or a precision machining center, for example); priorities determined by MRP due dates.

A) B) C)

Projects Mid-volume manufacturing Continuous processes

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D) E)

Low-volume workcenters High-volume manufacturing

2) In this type of production, the typical scheduling approach is infinite forward scheduling typical: priority control; typically labor-limited, but often machine-limited; often responding to justin-time orders from customers or MRP due dates.

A) B) C)

Projects Mid-volume manufacturing Continuous processes

D) E)

Low-volume workcenters High-volume manufacturing

3) In this type of production, the typical scheduling approach is finite forward scheduling of the line (a production rate is typical); machine-limited; parts are pulled to the line A) B) C)

Projects Mid-volume manufacturing Continuous processes

using just-in-time (Kanban) system. D) E)

Low-volume workcenters High-volume manufacturing

4) In this type of production, the typical scheduling approach is finite forward scheduling of the process; machine- limited.

A) B) C)

Projects Mid-volume manufacturing Continuous processes

D) E)

Low-volume workcenters High-volume manufacturing

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 5)

Which of the following is not a way in which a workcenter can be organized?

A) B) C)

According to function in a workcenter configuration According to function in an assembly line By product in assembly line

D) E)

As a group technology cell (GT cell) By product in a flow operation

6) When work is assigned to a workcenter based on what is needed over time it is called which of the following?

A) B) C)

Infinite loading Finite loading Machine-limited

D) E)

Labor-limited Johnson's rule

7) When work is scheduled in detail using the setup and run time required for each order, it is called which of the following?

A) B)

Infinite loading Finite loading

limited C)

Machine-

Labor-limited

Johnson's rule

8) When work has been scheduled in a shop that does not have sufficient resources to complete the schedule on time, the system that generated the schedule is called which of the following?

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A) B)

Infinite loading Machine-limited

C) D) E)

Finite loading Labor-limited Constrained

9) A material requirements planning system is an example of which of the following scheduling systems?

A) B) C)

Infinite loading, backward scheduling Finite loading, backward scheduling Infinite loading, forward scheduling

D) E)

Finite loading, forward scheduling None of these choices are correct

10) For a continuous-process type of manufacturing, which of the following is the typical production scheduling approach?

A) B) C)

Finite forward scheduling Finite backward scheduling Infinite forward scheduling

D) E) date

Infinite backward scheduling Shortest due

11) For a high-volume type of manufacturing, which of the following is the typical production scheduling approach? A) Finite

backward scheduling B) Finite forward scheduling C) Infinite forward scheduling

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Infinite backward scheduling

method E)

Assignment

12) For a mid-volume type of manufacturing, which of the following is the typical production scheduling approach?

A) B) C)

Finite forward scheduling Finite backward scheduling Infinite forward scheduling

D) E)

Infinite backward scheduling Precision forward scheduling

13) For a low-volume job shop type of manufacturing, which of the following is the typical production scheduling approach?

A) B) C)

Finite forward scheduling Finite backward scheduling Infinite backward scheduling

D) E) date

Infinite forward scheduling Soonest due

14) Which of the following is not a function performed in scheduling and controlling an operation?

A) B) C)

Allocating orders and equipment Setting priorities and sequencing jobs Allocating personnel to workcenters

D) E)

Expediting late orders Reporting bottleneck operations

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Which of the following is not an objective of workcenter scheduling?

A) B) C)

Meeting due dates Providing time for quality at the source Minimizing setup time or cost

D) E)

Minimizing work-in-process inventory Minimizing lead time

16)

The objectives of workcenter scheduling include which of the following?

A) B) C)

Minimizing worker alienation Providing variety to workforce Following all the priority rules

D) E)

Avoiding trade offs Minimizing setup costs

17) Which of the following is not a standard measure of schedule performance that can be used to evaluate priority rules?

A) B) C) D)

The schedule quality index Minimizing the time a job spends in the process Minimizing work-in-process inventory Minimizing idle time of machines or workers

Meeting due dates of customers

18) Which of the following is not a priority rule used to schedule the sequence of jobs in a production operation?

A) B) C)

First-come, first-served Shortest operating time Last-in, first-out

D) E)

Critical ratio Slack-time- remaining per operation

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19) Which of the following is a priority rule used to schedule the sequence of jobs in a production operation?

A) B) C)

Last-come, first-served Last complaint first First on hand first

D) E) first

Longest slack time first Parts on hand

20) A job has 5 days of processing time left to do before completion, and today is the 10th day of the month. If the job is due on the 14th day of the month, what is its critical ratio? C) 0.8 A) 5 D) 0.5 B) 2 E) 0.1

21) A job has 10 days of processing time left to do before completion, and today is the 5th day of the month. If the job is due on the 15th day of the month, what is its critical ratio? C) 1 A) 3 D) 0.8 B)

−0.8

22) 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), Job B will take 7 days, Job C will take 8 days, Job D will take 2 days, and Job E will take 5 days. Which job should be A) B)

Job A Job B

scheduled first if you use the SOT priority rule for job sequencing? C) Job C D) Job D E) Job E

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23) 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 3 days (i.e., Job A will take 3 more days to complete), Job B will take 9 days, Job C will take 6 days, Job D will take 5 days and Job E will take 8 days. Which job should be scheduled last if using the SOT priority rule for job sequencing?

A) B)

Job A Job B

C) D) E)

Job C Job D Job E

24) 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 3 days (i.e., Job A will take 3 more days to complete), Job B will take 9 days, Job C will take 6 days, Job D will take 5 days and Job E will take 8 days. In what order will these jobs be scheduled if using the SOT priority rule for job sequencing?

A) B)

A-B-D-E-C A-D-C-E-B

C) D) E)

D-C-A-B-E B-E-C-D-A E-D-A-B-C

25) Which of the following priority rules used in scheduling the sequence of production is calculated as the slack time remaining in the schedule divided by the number of A) B)

STR Johnson's

remaining operations, with the smallest value being run first? C) STR/OP D) LCFS E) FCFS

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26) Which of the following priority rules used in scheduling the sequence of production is calculated as the time remaining before the due date minus the remaining processing time, with the smallest value being run first?

A) B)

STR CR

C) D) E)

SOT LCFS EDD

27) Assume you are sequencing jobs using Johnson's rule. A particular job requires 3 hours to assemble and then is followed by 2 hours in the painting department. Which of the following is where you would schedule this job?

As early as possible in the unfilled job sequence.

Does not

Johnson's rule

B) C)

As late as possible in the unfilled job sequence. The schedule would depend on the due date.

matter.

does not apply.

28) Assume you are sequencing jobs using Johnson's rule. A particular job requires 7 hours to assemble and then is followed by 8 hours in the painting department. Which of the following is where you would schedule this job?

As early as possible in the unfilled job sequence.

As late as

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possible in the unfilled job sequence. C) The schedule would depend on the due date. D) Does not matter. E)

Johnson's Rule does not apply.

29) The assignment method is useful in solving scheduling problems that have which of the following characteristics?

A) There are n jobs to be distributed to n machines or workers. B) Each job can only be done on one particular machine. C) Speed and efficiency are important. D) E)

The objective is to minimize cost and lateness of delivery. The jobs have to go through more than one process.

30)

Which of the following is one of the major functions of shop-floor control?

Observing the priorities set for each shop order

office

Controlling

way B)

Keeping work-in-process inventory out of the

Conveying shop-order status information to the

cost and materials waste E) Keeping the workforce fully utilized

31)

Which of the following is not one of the major functions of shop-floor control?

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Measure efficiency, utilization, and productivity of manpower and machines. Assign a priority to each shop-order. Load machine hours into workstations. Track WIP quantity by location by shop-order to

accounting. E) Convey shop- order status information to the office.

32)

Which of the following is a tool of shop-floor control?

A) B) C)

The hours worked per employee report The anticipated delay report The permanent work-in-process report

D) E)

Time and motion studies Product and process control report

33)

Which of the following might be a status and exception report used in shop-floor control?

A) B) C)

Absentee report Quality failure report Shortage lists

report report D)

Expediting

Union activity

34)

Which of the following is a principle of workcenter scheduling?

A) B) C) D)

Once started, a job can and should be finished even if unavoidably interrupted. Reschedule every day. Achieve certainty in standards and routings. Give workcenters less to do then their maximum.

Assign the first worker to all of the days that require staffing.

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35) 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), Job B will take 7 days, Job C will take 8 days, Job D will take 2 days, and Job E will take 5 days. All jobs are available now and the time now is 0. Using the SOT rule, what is the A) 2 B) 6

completion time of job B as per your schedule?

C) D) E)

26 11 18

36) Assume you are sequencing jobs using Johnson's rule. There are three jobs called A, B, and C. The first step is assembling and the second step is painting. Job A requires 3 hours to assemble and 6 hours to paint. Job B requires 7 hours to assemble and 2 hours to paint. Job C requires 4 hours to assemble and 1 hour to paint. The objective is to minimize the A) B)

A-C-B B-C-A

total processing time of all jobs, using Johnson’s rule. What is the correct sequence to process the jobs? C) D) E)

B-A-C A-B-C C-B-A

37) Assume you are sequencing jobs using Johnson's rule. There are three jobs called A, B, and C. The first step is assembling and the second step is painting. Job A requires 3 hours to assemble and 6 hours to paint. Job B requires 7 hours to assemble and 2 hours to paint. Job C requires 4 hours to assemble and 1 hour to paint. The objective is to minimize the

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14 15

total processing time of all jobs, using Johnson’s rule. What is the completion time of the last job in the sequence in the second step (painting)? C) 9 D) 12 E) 10

38)

The textbook underscores the importance

of scheduling with the phrase "workflow equals cash flow, and scheduling lies at the heart of the process." ⊚

true

⊚

false

39) A workcenter is a physical area of the business in which productive resources are organized and work is completed. ⊚

true

⊚

false

40) A system that "backward schedules" is designed to determine and report the earliest date an order can be completed. ⊚

true

⊚

false

41) A backward schedule tells when an order must be started in order to be done by a specific date. ⊚

true

⊚

false

42)

In finite loading, no consideration is given directly to whether there is

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM sufficient capacity at the resources required to complete the work, nor is the actual sequence of the work as done by each ⊚

true

⊚

false

43) In infinite loading, no consideration is given directly to whether there is sufficient capacity at the resources required to complete the work, nor is the actual sequence of the work as done by each resource in the workcenter considered. ⊚

true

⊚

false

44)

Theoretically, all schedules are feasible when finite loading is used.

⊚

true

⊚

false

45)

Initiating performance of scheduled work is commonly termed "dispatching" of orders.

⊚

true

⊚

false

resource in the workcenter considered.

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46)

Shop-floor control (or production activity

control) can involve reviewing the status and controlling the progress of orders as they are being worked on. ⊚

true

⊚

false

47) Shop-floor control (or production activity control) can involve expediting late and critical orders. ⊚

true

⊚

false

48) In production scheduling, the process of determining which job to start first on some machine or in some workcenter is known as sequencing or priority sequencing. ⊚

true

⊚

false

49)

Priority rules are the rules used to obtain a job sequence in production scheduling.

⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 50) Using the random order or "whim" priority rule to sequence production jobs means that supervisors or operators select whichever job they feel like running.

⊚

true

⊚

false

51) Under the STR/OP sequencing priority rule, orders with the jobs with the longest STR/OP are run first. ⊚

true

⊚

false

52) The LCFS and Johnson's priority rules are basically the same except LCFS uses due dates as a major determiner of job sequence. ⊚

true

⊚

false

53) Johnson's rule, a priority rule used in sequencing production jobs, is used only in production situations where we are dealing with one machine or one stage of production activity. ⊚

true

⊚

false

54) The objective of Johnson's rule for job sequencing is to minimize flow time from the beginning of the first job until the completion of the last job. ⊚

true

⊚

false

55) The assignment method of job sequencing is a special case of the transportation method of linear programming. ⊚ true ⊚ false

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56) A shop-floor control system is a system that uses data from the shop floor as well as data processing files to maintain and communicate status information on shop orders and workcenters. ⊚ true ⊚ false

57) One of the principles of workcenter scheduling is to match workcenter input information to what the worker can actually do. ⊚ true ⊚ false

58) One of the principles of workcenter scheduling is that, while certainty of standards, routings, and so forth is not entirely possible in a shop, certainty should always be an objective to work toward. ⊚

true

⊚

false

59) One of the principles of workcenter scheduling is that the effectiveness of any shop should be measured by speed of flow through the shop. ⊚

true

⊚

false

60) One of the principles of workcenter scheduling is that once started, a job should not be interrupted. ⊚

true

⊚

false

61) When work is scheduled in detail using the setup and run time required for each order, then theoretically all schedules will be feasible. ⊚

true

⊚

false

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62) Scheduling hourly work times using the "first-hour principle" ensures that no excess labor will be used during the work shift. ⊚

true

⊚

false

63) Operations scheduling is at the heart of what is currently referred to as Manufacturing Scheduling System (MSS).

⊚

true

⊚

false

64)

Most scheduling systems develop their schedules without consideration of capacity.

⊚

true

⊚

false

65)

Most process are both labor- and machine-limited.

⊚

true

⊚

false

66)

The goal in developing a service staffing plan is to minimize overtime.

⊚

true

⊚

false

67) MES and SES are acronyms for "manufacturing environment scheduler" and "service environment scheduler" systems, respectively. ⊚

true

⊚

false

Answer Key

Test name: Chapter 22 Test Bank

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1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19)

D B E C B A B A A A B C D E B E A C A

20)

21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) 40)

C D B B C A B A A C C B C B E D B TRUE TRUE FALSE

41)

TRUE

42) 43)

FALSE TRUE

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 44) 45) 46) 47) 48) 49) 50) 51) 52) 53) 54) 55) 56) 57) 58) 59) 60) 61)

TRUE TRUE TRUE TRUE TRUE TRUE TRUE FALSE FALSE FALSE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE

62)

FALSE

63) 64) 65) 66) 67)

FALSE FALSE FALSE FALSE FALSE

Student name: 1) Which of the following is one of Dr. Eli Goldratt's rules of production scheduling for optimized production technology?

A) B) C) D)

Utilization and activation of a resource are not the same. Do not allow bottlenecks to govern the flow of the line. An hour lost at a bottleneck saves an hour for the entire system. Balance the capacities, not the flows.

E) The level of utilization of a bottleneck resource is not determined by its own potential but by some other constraint in the system.

2) Which of the following is one of Dr. Eli Goldratt's rules of production scheduling for optimized production technology?

A) B) C)

If you lose an hour at a bottleneck, it is better than making scrap. Do not balance capacity, balance the flow. Do not allow bottlenecks to govern the flow of the line.

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https://www.stuvia.com/user/AnswersCOM D)

An hour saved at a bottleneck operation is a

mirage. E) The amount in a process batch should be fixed when the batch is begun and not changed over time or along its route.

Which of the following is a "focusing step" of Dr. Eli Goldratt's theory of constraints?

A) B) C) D)

Reduce system constraints. Reinforce system constraints. Support system constraints. If you have no system constraints, make some.

Identify system constraints.

4) According to the theory of constraints, which of the following is a financial measurement that can be used to A) B) C)

Net profit Throughput Inventory

measure the firm's ability to make money? D) Sales E) Retained earnings

5) According to the theory of constraints, which of the following is a financial measurement that can be used to A) B)

Operating expenses Cash flow

measure the firm's ability to make money? C) Inventory D) Sales E) Dividends

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6) 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?

A) B) C)

Net profit Throughput Return on investment

hours D) E)

Sales Direct labor

7) 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?

A) B) C)

Inventory Sales Operating revenue

unit D) E)

Unit cost Overhead per

According to the theory of constraints, which of the following can be a CCR?

A) B)

Factory layout Product design

C) D) E)

An employee A customer Sales literature

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9) According to the theory of constraints, which of the following is a kind of time that makes up the cycle time in production?

A) B)

Quality time Break time

C) D) E)

Research time Just-in-time Idle time

10) According to the theory of constraints, which of the following is a kind of time that makes up the cycle time in production?

A) B) C)

Process time Starting time Quitting time

time D)

Information

Finish time

11)

Which of the following is an approach to dealing with a bottleneck?

A) B)

Keep a buffer inventory in front of it to ensure that it always has something to work on. Use Johnson's sequencing rules on bottleneck

operations. C) Don't worry about the bottleneck; it will take care of itself.

D) E)

Move things to a faster bottleneck. Pay an incentive bonus to workers on the

bottleneck operation.

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12) Which of the following is not an important concept in TOC? C) Drum A) CCR D) Buffer B) Rope E) File

13) A useful measure of inventory performance is called "dollar days." In which of the following areas are dollar days measurements not useful?

A) B) C)

Marketing Research and development Manufacturing

D) E)

Project management Purchasing

14) Which of the following is a negative aspect of JIT compared to synchronous manufacturing?

A) B) C)

JIT cannot deal with outside vendors. JIT needs broadly fluctuating production levels. JIT does not allow very much flexibility in the products produced.

D) E)

JIT requires a great deal of workforce computational skills. JIT does not deal well with bottlenecks.

15)

OPT stands for optimal purchasing technique.

⊚

true

⊚

false

16) Synchronous manufacturing refers to the entire production process working together in harmony to achieve the goals of the firm.

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https://www.stuvia.com/user/AnswersCOM ⊚

true

⊚

false

17)

Dr. Eli Goldratt feels that the goal of a firm is to make useful products efficiently.

⊚

true

⊚

false

18) The operational measure of throughput is "the rate at which money is generated by the system through production ⊚

true

⊚

false

19) From an operations standpoint, one of the goals of the firm under the theory of constraints is to increase throughput while simultaneously reducing inventory and reducing operating expense. of goods and services that might be sold."

⊚

true

⊚

false

20)

Mr. Goldratt's "theory of constraints" is useful only in manufacturing settings.

⊚

true

⊚

false

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21) According to the theory of constraints, the term "productivity" is defined as all those actions that bring a ⊚

true

⊚

false

22) According to the theory of constraints, it is wrong for manufacturers to try to match capacity with demand by attempting to balance capacity across a sequence of processes. ⊚

true

⊚

false

company closer to its goals.

Unbalanced capacity is better.

23) According to the theory of constraints, a bottleneck is any resource whose capacity is greater than the demand placed on it. ⊚

true

⊚

false

24) According to the theory of constraints, a nonbottleneck is any resource where capacity is less than the demand placed on it.

⊚

true

⊚

false

25)

According to the theory of constraints, capacity is the time available for production.

⊚

true

⊚

false

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26) According to the theory of constraints, a capacity- constrained resource (CCR) is one whose utilization is close to capacity and could be a bottleneck if it is not scheduled carefully. ⊚

true

⊚

false

27) According to the theory of constraints, throughput is the rate at which product is passed through the manufacturing system. ⊚

true

⊚

false

28) According to the theory of constraints, throughput is the rate at which money is generated by the system through sales. ⊚

true

⊚

false

29)

One way to find a bottleneck is to run a capacity resource profile.

⊚

true

⊚

false

30) A way to find a bottleneck is to use one's knowledge of a particular plant, look at the system in operation, and talk ⊚

true

⊚

false

31)

Buffer inventory in front of a bottleneck is called a time buffer.

⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 32) An MRP system can allow for product rejects by building a larger batch than is demanded, but a JIT system ⊚

true

⊚

false

33) A synchronous manufacturing system does not have excess capacity throughout the system, except for the bottleneck. with supervisors and workers.

cannot tolerate poor quality.

⊚

true

⊚

false

34)

On an assembly line, a process batch can be infinite.

⊚

true

⊚

false

35)

On an assembly line, a transfer batch can be one unit.

⊚

true

⊚

false

36)

Smaller transfer batches give lower work-in-process inventory and faster product flow.

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https://www.stuvia.com/user/AnswersCOM ⊚

true

⊚

false

37)

Transfer batch is another term for process batch.

⊚

true

⊚

false

38)

Rather than try to adjust the master production schedule to

change resource loads, it is more practical to control the flow at each bottleneck or CCR to bring capacities in line. ⊚

true

⊚

false

39) Larger transfer batches give shorter lead times and lower inventories, and there is more material handling than smaller transfer batches. ⊚

true

⊚

false

40)

A process batch should be no larger than the transfer batch.

⊚

true

⊚

false

41) The "dollar days" inventory measurement may be used to focus management's attention on where inventory is located. ⊚

true

⊚

false

42) The "dollar days" inventory measurement results from a complex algorithm used to compute individual units of inventory and their respective ordering and holding costs.

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⊚

true

⊚

false

43) The "dollar days" inventory measurement can be used in purchasing to discourage large work-in-process and ⊚

true

⊚

false

44)

The synchronous manufacturing approach uses backward scheduling.

⊚

true

⊚

false

45) JIT requires work-in-process when used with Kanban so there is inventory to pull. When compared to synchronous manufacturing, this is viewed as a negative aspect of JIT. ⊚

true

⊚

false

46) JIT requires vendors to be located nearby. When compared to synchronous manufacturing, this is viewed as an advantage of JIT. ⊚

true

⊚

false

producing earlier than is needed.

47) JIT requires a stable production level. When compared to synchronous manufacturing, this is viewed as a negative aspect of JIT. ⊚

true

⊚

false

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM 48) Departments within a firm often are at odds with each other because reward systems are often not synchronized with ⊚

true

⊚

false

49)

The term "dependent events" refers to a process sequence.

⊚

true

⊚

false

50) Looking at the loads that are placed on each resource by the products that are scheduled through them is called process flow profiling. ⊚

true

⊚

false

the basic goal of the firm: to make money.

51) In a process sequence where a product flows from process A to process B, process B is called the contingent process.

⊚

true

⊚

false

52) In a process sequence where a product flows from process A to process B, process B is called the dependent process. ⊚

true

⊚

false

53) In a process sequence where a product flows from process A to process B, process A is called the mother process. ⊚

true

⊚

false

54) Because of statistical fluctuation (processing times vary around an average processing time), dependent sequences can operate without any inventory between workstations. F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM ⊚

true

⊚

false

55) The effects of statistical variations in processing times in a dependent sequence will eventually cancel themselves out due to the law of averages. ⊚

true

⊚

false

56)

Statistical fluctuation refers to the normal variation about a mean or average.

⊚

true

⊚

false

57)

Throughput is all production. That is, everything that makes it to finished goods.

⊚

true

⊚

false

58)

Labor cost and machine hours are ignored in valuing inventory in TOC.

⊚

true

⊚

false

59)

In synchronous manufacturing thinking, unbalanced capacity is best.

⊚

true

⊚

false

60)

There is little to be

gained by saving time on a bottleneck operation since it only increases the capacity of one operation. ⊚

true

F. ROBERT JACOBS, 2024

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https://www.stuvia.com/user/AnswersCOM ⊚

false

61) Since there are so many nonbottleneck operations, an hour saved on them is very valuable. ⊚

true

⊚

false

62)

There is no problem with inventory as long as it is eventually used or sold.

⊚

true

⊚

false

63)

MRP uses forward scheduling, beginning with the master production schedule.

⊚

true

⊚

false

Answer Key Test name: Chapter 22S Test Bank

2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18)

B E A B B A C E A A E B C FALSE TRUE FALSE FALSE F. ROBERT JACOBS, 2024

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TRUE FALSE TRUE

22)

TRUE

23) 24) 25) 26) 27) 28) 29) 30) 31) 32) 33) 34) 35) 36) 37) 38) 39) 40) 41) 42)

FALSE FALSE TRUE TRUE FALSE TRUE TRUE TRUE TRUE TRUE FALSE TRUE TRUE TRUE FALSE TRUE FALSE FALSE TRUE FALSE

43)

FALSE

44) 45) 46) 47) 48) 49) 50) 51) 52) 53) 54) 55) 56) 57) 58) 59) 60) 61) 62) 63)

FALSE TRUE FALSE TRUE TRUE TRUE FALSE FALSE TRUE FALSE FALSE FALSE TRUE FALSE TRUE TRUE FALSE FALSE FALSE FALSE

F. ROBERT JACOBS, 2024

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F. ROBERT JACOBS, 2024

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