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Which of the following is not an objective of effective layouts?
a. reduce material handling costs
b. increase the number of bottlenecks
c. eliminate waste and redundant activities
d. improve communication and interaction among workstationsb. increase the number of bottlenecksSimilar activities are grouped together in departments or work centers according to the function with a __________ layout.
a. process
b. fixed-position
c. hybrid
d. traditionala. processMaterial handling equipment that can follow multiple paths, move in any direction, and carry large loads of in-process inventory is most likely to be associated with a _________ layout.
a. process
b. product
c. fixed-position
d. None of these answer choices is correct.a. processWith a ___________ layout, activities are arranged in a line according to the sequence of operations.
a. product
b. process
c. fixed-position
d. cellulara. productA ____________ provides historical data on the movement of parts and materials between departments.
a. manufacturing chart
b. block diagram
c. relationship diagram
d. load summary chartd. load summary chartTwo techniques used to design process layouts are:
a. block diagramming and assembly line balancing.
b. relationship diagramming and assembling line balancing.
c. relationship diagramming and assembly line balancing.
d. block diagramming and relationship diagramming.d. block diagramming and relationship diagramming.A format for displaying manager preferences for departmental locations is known as
a. relationship diagram.
b. process diagram.
c. block diagram.
d. hybrid diagram.a. relationship diagram.A type of service layout designed to encourage browsing and increase impulse purchasing is known as a
a. freeflow layout.
b. grid layout.
c. loop layout.
d. spine layout.a. freeflow layout.A company hopes to achieve a daily output of 200 units during 6 hours of production time. Assuming there is no lost time during the 6 hours of production, the desired cycle time to achieve the targeted level of output is:
a. 3.0 minutes
b. 1.8 minutes
c. 1.5 minutes
d. 0.03 minutesb. 1.8 minutesTo maximize an assembly line's efficiency the
a. line's balance delay must be minimized.
b. line's balance delay must be maximized.
c. cycle time must be less than the flow time.
d. flow time must be less than the cycle time.a. line's balance delay must be minimized.Which one of the following is not an example of a hybrid facility layout?
a. Fixed-position
b. Mixed-model
c. Cellular
d. Flexible manufacturinga. Fixed-positionA company wants to produce 150 units during a 7-hour day. The desired cycle time needed to achieve this level of output is
a. 3.5 minutes.
b. 3.25 minutes.
c. 3.00 minutes.
d. 2.8 minutes.d. 2.8 minutes.Control, one of the basic elements of a project plan, involves a set of procedures for monitoring and evaluating progress and performance.
a. True
b. Falsea. TrueA dummy variable is an activity inserted into the AOA network diagram to show a precedence relationship, but does not represent any passage of time.
a. True
b. Falsea. TrueWhich of the following is not a general characteristic of a project?
a. a project has a unique purpose
b. a project has more certainty
c. a project has more uncertainty
d. a project often draws resources from various areas in the organizationb. a project has more certainty________________ is the process of making sure a project progresses to a successful completion.
a. Project planning
b. Project scheduling
c. Project control
d. None of these answer choices is correct.c. Project controlThe _______________ is a document that provides a common understanding, justification, and expected result for a project.
a. statement of work
b. work breakdown structure
c. scope statement
d. responsibility assignment matrixc. scope statementA(n) ______________ breaks down a project into components, subcomponents, activities, and tasks.
a. work breakdown structure (WBS)
b. scope statement
c. responsibility assignment matrix (RAM)
d. organizational breakdown structure (OBS)a. work breakdown structure (WBS)The slack time for an activity can be computed as
a. latest start time (LS) - latest finish time (LF).
b. earliest start time (ES) + earliest finish time (EF).
c. latest start time (LS) - earliest start time (ES).
d. latest finish time (LF) + earliest finish time (EF).c. latest start time (LS) - earliest start time (ES).A bar graph displaying when activities are scheduled to start, when they will be finished, and where extra time is available is known as a
a. PERT chart.
b. work breakdown structure (WBS).
c. Gantt chart.
d. responsibility assignment matrix (RAM).c. Gantt chart._______________ relationship is the sequential relationship of project activities to each other.
a. Precedence
b. Scheduling
c. Slack
d. Priora. PrecedenceThe key elements of project control include all the following except
a. time management.
b. cost management.
c. material management.
d. communication.c. material management.For an activity-on-node (AON) network,
a. arrows represent activities and nodes represent events.
b. nodes represent activities and arrows indicate precedence relationships.
c. arrows represent events and nodes indicate precedence relationships.
d. nodes indicate precedence relationships and arrows indicates the length of the activity time.b. nodes represent activities and arrows indicate precedence relationships.In project management the term slack refers to the amount of time
a. to complete an activity without delaying the project.
b. an activity can be delayed without delaying the project.
c. needed to complete the entire project.
d. required to complete the project's critical activities.b. an activity can be delayed without delaying the project.The longest path through a project network is referred to as the
a. activity-on-node path.
b. path of greatest slack.
c. critical path.
d. noncritical path.c. critical path.In general, the earliest finish time for an activity is equal to
a. earliest start time + activity time estimate.
b. earliest start time - activity time estimate.
c. earliest start time - slack time.
d. earliest start time + slack time.a. earliest start time + activity time estimate.In general, the latest finish time for an activity is equal to
a. latest finish time minus the activity time estimate.
b. the minimum of the latest start times for the activities that immediately follow.
c. the maximum of the latest start times for the activities that immediately follow.
d. the average of the latest start times for the activities that immediately follow.b. the minimum of the latest start times for the activities that immediately follow.For activities on a project's critical path,
a. earliest start time (ES) equals latest start time (LS).
b. earliest start time (ES)is greater than latest start time (LS).
c. earliest start time (ES) is less than latest start time (LS).
d. earliest start time (ES) equals latest finish time (LF).a. earliest start time (ES) equals latest start time (LS).A(n) _______________ is a project team structure that includes members from different functional areas.
a. matrix organization
b. project network
c. organizational breakdown structure
d. work breakdown structurea. matrix organizationOne disadvantage of Gantt charts, especially for large projects, is that it does not
a. clearly show precedence relationships.
b. indicate activity start times.
c. indicate activity finish times.
d. use bars to represent activities.a. clearly show precedence relationships.Which of the following is not one of the basic steps involved in developing a schedule?
a. define the activities
b. sequence the activities
c. estimate the time required to complete each activity
d. identify the project costd. identify the project costOne way to deal with the bullwhip effect is to develop and share the forecasts with other supply chain members.
a. True
b. Falsea. TrueForecasting customer demand is often a key to providing good quality service.
a. True
b. Falsea. TrueSharing demand forecasts with supply chain members has resulted in an increased bullwhip effect.
a. True
b. Falseb. FalseThe type of forecasting method selected depends on time frame, demand behavior and causes of behavior.
a. True
b. Falsea. TrueA gradual, long-term up or down movement of demand over time is referred to as a trend
a. True
b. Falsea. TrueA seasonal pattern is an oscillating movement in demand that occurs periodically over the short-run and is repetitive.
a. True
b. Falsea. TrueRegression is used for forecasting when there is a relationship between the dependent variable (demand) and one or more independent (explanatory) variables.
a. True
b. Falsea. TrueCorrelation in linear regression is a measure of the strength of the relationship between the dependent variable, demand, and an independent (explanatory) variable.
a. True
b. Falsea. TrueA linear regression model that relates demand to time is known as a linear trend line.
a. True
b. Falsea. TrueForecast methods based on judgment, opinion, past experiences, or best guesses are known as ___________ methods.
a. quantitative
b. qualitative
c. time series
d. regressionb. qualitativeThe ______________ effect is caused in part by distortion in product demand information caused by inaccurate forecasts.
a. bullwhip
b. regression
c. error
d. None of these answer choices is correct.a. bullwhipA forecast where the current period's demand is used as the next period's forecast is known as a
a. moving average forecast.
b. naïve forecast.
c. weighted moving average forecast.
d. Delphi method.b. naïve forecast.A ___________ is an up-and-down movement in demand that repeats itself over a period of more than a year.
a. trend
b. seasonal pattern
c. random variation
d. cycled. cycleThe sum of the weights in a weighted moving average forecast must
a. equal the number of periods being averaged.
b. equal 1.00.
c. be less than 1.00.
d. be greater than 1.00.b. equal 1.00.The closer the smoothing constant, α, is to 1.0 the
a. greater the reaction to the most recent demand.
b. greater the dampening, or smoothing, effect.
c. more accurate the forecast.
d. less accurate the forecast.a. greater the reaction to the most recent demand.The exponential smoothing model produces a naïve forecast when the smoothing constant, α, is equal to
a. 0.00.
b. 1.00.
c. 0.50.
d. 2.00b. 1.00.The _________________ forecast method consists of an exponential smoothing forecast with a trend adjustment factor added to it.
a. exponentially smoothed
b. adjusted exponential smoothing
c. time series
d. moving averageb. adjusted exponential smoothingA company wants to produce a weighted moving average forecast for April with the weights 0.40, 0.35, and 0.25 assigned to March, February, and January respectively. If the company had demands of 5,000 in January, 4,750 in February, and 5,200 in March, then April's forecast is
a. 4983.33.
b. 4992.50.
c. 4962.50.
d. 5000.00.b. 4992.50.If the forecast for July was 3,300 and the actual demand for July was 3,250, then the exponential smoothing forecast for August using α = 0.20 is
a. 3300
b. 3290
c. 3275
d. 3250b. 3290A large positive cumulative error indicates that the forecast is probably
a. higher than the actual demand.
b. lower than the actual demand.
c. unbiased.
d. biased.b. lower than the actual demand.Which of the following is a reason why a forecast can go out of control?
a. a change in trend
b. an irregular variation such as unseasonable weather
c. a promotional campaign
d. All of these answer choices are correct.d. All of these answer choices are correct.Which of the following can be used to monitor a forecast to see if it is biased high or low?
a. a tracking signal
b. the mean absolute deviation (MAD)
c. the mean absolute percentage deviation (MAPD)
d. a linear trend line modela. a tracking signalCorrelation is a measure of the strength of the
a. nonlinear relationship between two dependent variables.
b. nonlinear relationship between a dependent and independent variable.
c. linear relationship between two dependent variables.
d. linear relationship between a dependent and independent variable.d. linear relationship between a dependent and independent variable.The objective of inventory management is to keep enough inventory on-hand to satisfy customer demand without regard to cost effectiveness.
a. True
b. Falseb. FalseDependent demand is determined by external market conditions.
a. True
b. Falseb. False________________ is additional inventory kept on hand to meet variations in product demand.
a. Safety stock
b. Buffer stock
c. Finished stock
d. None of these answer choices is correct.a. Safety stockInventory costs _________________ when higher levels of inventory are needed to improve customer service.
a. decrease
b. stay the same
c. increase
d. cannot be estimatedc. increaseThe traditional approach to inventory management is to maintain a level of inventory that
a. minimizes inventory cost.
b. maximizes customer service.
c. maintains a balance between inventory cost and customer service.
d. None of these answer choices is correct.c. maintains a balance between inventory cost and customer service.___________ demand items are used in the process of producing a final product.
a. Dependent
b. Independent
c. Seasonal
d. Cyclicala. DependentIn general, as the order size increases
a. ordering costs decrease and carrying costs increase.
b. ordering costs increase and carrying costs decrease.
c. both ordering and carrying costs increase.
d. both ordering and carrying costs decrease.a. ordering costs decrease and carrying costs increase.A restaurant currently uses 62,500 boxes of napkins each year at a constant daily rate. If the cost to order napkins is $200.00 per order and the annual carrying cost for one box of napkins is $1.00, then the economic order quantity for napkins is
a. 62,500 boxes.
b. 10,000 boxes.
c. 5,000 boxes.
d. 2,500 boxes.c. 5,000 boxes.A restaurant currently uses 62,500 boxes of napkins each year at a constant daily rate. The cost to order napkins is $200.00 per order and the annual carrying cost for one box of napkins is $1.00. If the restaurant orders the economic order quantity each time an order is placed, then ______orders are placed during the year. (Round the final answer to up)
a. 13
b. 15
c. 20
d. 25a. 13A restaurant currently uses 62,500 boxes of napkins each year at a constant daily rate. The cost to order napkins is $200.00 per order and the annual carrying cost for one box of napkins is $1.00. If the restaurant orders the economic order quantity then the total annual inventory cost for napkins is
Formula:
TC(min)= (CoD/Q)+(CcQ/2)
a. $62,500.
b. $5,000.
c. $2,500.
d. $1,250.b. $5,000.The economic order quantity is most widely used for determining how much to order in
a. a periodic inventory system.
b. a continuous inventory system.
c. an on-demand inventory system.
d. None of these answer choices is correct.b. a continuous inventory system.Which of the following is not an assumption of the EOQ model?
a. demand rate is known and constant
b. shortages are allowed
c. lead time is constant
d. order quantity is received all at onceb. shortages are allowedFor a quantity discount problem, the order quantity selected is the one that minimizes the total annual _________ cost.
a. inventory
b. carrying
c. ordering
d. purchasea. inventoryA Paint Store is open 311 days per year. If annual demand is 10,000 gallons of a type of a paint and the lead time to receive an order is 10 days, determine the reorder point for paint (Round the final answer).
a. 100000
b. 320
c. 322
d. 350c. 322From a supplier perspective, the purpose of a quantity discount is to get the customer to buy
a. more than the economic order quantity.
b. less than the economic order quantity.
c. the economic order quantity.
d. None of these answer choices is correct.a. more than the economic order quantity.A company may purchase larger amounts of inventory for all the following reasons except
a. to reduce inventory carrying costs.
b. to take advantage of quantity discounts.
c. as a hedge against future price increases.
d. to obtain lower prices purchasing in volume.a. to reduce inventory carrying costs.The _______________ classification system classifies inventory according to its dollar value to the firm.
a. periodic
b. continuous
c. ABC
d. EOQc. ABCWheels for autos and a refrigerator are examples of
a. Dependent demand item, Independent demand item
b. Independent demand item, Dependent demand item
c. Dependent demand item, Dependent demand item
d. Independent demand item, Independent demand itema. Dependent demand item, Independent demand item________________ is additional inventory kept at various stages of the production process to provide independence between stages to avoid work stoppages.
a. Safety stock
b. Buffer stock
c. Finished stock
d. None of these answer choices is correct.b. Buffer stock
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