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_________ has/have helped firms to concentrate on their core business.

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Question 1 The need for safety stocks can be reduced by an operations strategy which: increases lead time. increases lead time variability. increases lot sizes. decreases ordering costs. decreases lead time variability. 3 points Question 2 The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order, and that the lead time for delivery is four days. At what point should resin be reordered? 0 kilograms remaining 50 kilograms remaining 200 kilograms remaining 400 kilograms remaining 500 kilograms remaining 3 points Question 3 Which of the following interactions with vendors would potentially lead to inventory reductions? reduced lead times increased safety stock less frequent purchases larger batch quantities longer order intervals 3 points Question 4 An operations strategy for inventory management should work toward: increasing lot sizes. decreasing lot sizes. increasing safety stocks. decreasing service levels. increasing order quantities. 3 points Question 5 A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would be the same as ordering cost. The production rate would be about double the usage rate. Compared to the EOQ, the maximum inventory would be approximately: 70 percent higher. 30 percent higher. the same. 30 percent lower. 70 percent lower. 3 points Question 6 Which of the following is not something commonly found in lean systems? (I) Waste reduction (II) Output match to a detailed forecast (III) Visual controls (IV) Quick changeovers (V) Long production runs both I and V both II and V both II and IV both IV and V both III and V 3 points Question 7 Which of the following is not a benefit of small lot sizes in lean systems? In-process inventory is considerably less. Each product is produced less frequently. Carrying costs are reduced. There is less clutter in the workplace. Inspection and rework costs are less. 3 points Question 8 For a company with a product mix of 40 percent of product A and 30 percent each of products B and C, which of the following mixed-model sequences best reflects the lean philosophy? AABBCCAABC ABCABCABCA AAAABBBCCC BCABCABCAB BBBAACCCAA 3 points Question 9 Which of the following is characteristic of the lean philosophy? Inventories are an asset. Lot sizes are optimized by formula. Close, long-term relationships with vendors. Queues are a necessary investment. All of the choices. 3 points Question 10 Having a vendor be responsible for managing the restocking of inventory is what is meant by the term: JIT II. MRP II. SCM I. EOQ III. POQ II. 3 points Question 11 Which of the following is not a benefit of centralized purchasing? potential for quantity discounts better service from suppliers quick response to local needs potential for use of purchasing specialists supplier research 3 points Question 12 One important role of purchasing is to: set quality standards for purchased items from suppliers. be knowledgeable about new products from suppliers. maintain numerous sources of supply. obtain the lowest prices on all purchased items. determine the processes that should be used by suppliers. 3 points Question 13 _________ has/have helped firms to concentrate on their core business. Supply chains Scheduling Outsourcing ERP Lean production 3 points Question 14 Small changes in consumer demand can result in large variations in orders placed because of the: supply chain. safety stock requirement. lead time effect. bullwhip effect. FCFS scheduling. 3 points Question 15 Which of the following is least likely to be a key consideration when a company chooses a supplier? lead time and on-time delivery reputation and financial stability current inventory quality and quality assurance flexibility of design change 3 points Question 16 The following table contains information about five jobs waiting to be processed at work center number three. Job Processing Time (hrs) Hours Until Due a 14 15 b 10 20 c 18 18 d 2 16 e 4 21 ________________________________________ The sequence that would result using the SPT rule is: e-b-c-d-a. c-a-b-e-d. a-d-c-e-b. d-e-b-a-c. e-d-b-a-c. 3 points Question 17 The president of a consulting firm wants to minimize the total number of hours it will take to complete four projects for a new client. Accordingly, she has estimated the time it should take for each of her top consultants—Charlie, Betty, Johnny, and Rick—to complete any of the four projects, as follows: Project (Hours) Consultant A B C D Charlie 13 16 11 13 Betty 11 15 14 18 Johnny 15 22 12 15 Rick 17 17 12 22 ________________________________________ Assume there must be one-to-one matching between consultants and projects. For the optimal schedule, what is the total number of hours it will take these consultants to complete these projects? 53 hours 46 hours 50 hours 61 hours 54 hours 3 points Question 18 The operations manager of a body and paint shop has five cars to schedule for repair. He would like to minimize the makespan to complete all work on these cars. Each car requires body work prior to painting. The estimates of the times required to do the body and paint work on each are as follows: Car Body Work (hrs) Paint (hrs) A 10 2 B 5 4 C 7 5 D 3 6 E 1 7 ________________________________________ Where in the optimum sequence should car E be scheduled? first second third fourth fifth 3 points Question 19 Eva, the owner of Eva's Second Time Around Wedding Dresses, currently has five dresses to be altered, shown in the order in which they arrived: Job Processing Time (hrs) Due (hrs from now) V 3 5 W 1 1 X 4 9 Y 2 3 Z 5 7 ________________________________________ If Eva uses the shortest processing time first (SPT) priority rule to schedule these jobs, what will be the average completion time? 3 hours 5 hours 7 hours 7.2 hours 8 hours 3 points Question 20 The priority rule where jobs are processed according to the smallest ratio of time remaining to due date to processing time is: CR. EEDD. FCFS. S/O. SPT. 3 points Question 21 The basic EOQ model ignores the purchasing cost. True False 3 points Question 22 A 30 percent reduction in product and service variety will not affect the efficiency of a supply chain. True False 3 points Question 23 RFID eliminates the need for manual counting and bar-code scanning of goods at receiving docks. True False 3 points Question 24 A Gantt chart is a basic scheduling tool that is most useful in low-volume systems. True False 3 points Question 25 The elimination of idle time on both bottleneck and non-bottleneck operations must be accomplished to optimize output. True False

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