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business
operations management 6th
Questions and Answers of
Operations Management 6th
Hip Replacements, Inc., has a master production schedule for its newest model, as shown below, a setup cost of \($50,\) a holding cost per week of \($2,\) beginning inventory of 0, and lead time of 1
Small and medium enterprises (SMEs) have played a major role in economic growth across the globe. They are major contributors to national economies in terms of their contribution to employment,
In 2015, George Wright started the Old Oregon Wood Store to manufacture Old Oregon tables. Each table is carefully constructed by hand using the highest-quality oak. Old Oregon tables can support
Krupp Refrigeration, Inc., is trying to reduce inventory and wants you to install a kanban system for compressors on one of its assembly lines. Determine the size of the kanban and the number of
IndiGo is a low-cost airline headquartered at Gurgaon, India. It is the largest airline in India in terms of passengers carried, with a 42.6% market share as of October 2016. The airline was founded
The Tata Steel Tubes Strategic Business Unit (SBU), the largest domestic manufacturer of steel tubes, was formed after the merger of the erstwhile Indian Tube Company with Tata Steel in October 1985.
Almost every patient in hospital is sent for laboratory investigation where sample collection is the foremost process. Based on laboratory test results, decisions about admissions, discharge and
Victor Pimentel, purchasing manager of Office Supply Center of Mexico, is searching for a new supplier for its paper. The most important supplier criteria for Victor include paper quality, delivery
Joe Henry’s machine shop uses 2,500 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets:a) Given
Indian Railways runs around 12500 passenger trains. Daily more than 23 million passengers travel by Indian Railways, also called as “Lifeline of India”. These trains are categorized as –
Using the product structure for Alpha in Solved Problem 14.1, and the following lead times, quantity on hand, and master production schedule, prepare a net MRP table for Alphas.Data From Problem
Explain the concept of cross-docking.
From the three rightmost columns in Table 8.7, the weighted scores are summed. The bus terminal area has a low score and can be excluded from further consideration.The other two sites are virtually
Explain sustainability.
Explain closed-loop supply chains.
What is efficiency?
Juniper Networks is an American multinational corporation headquartered in Sunnyvale, California that develops and markets networking products. Its products include routers, switches, network
In a product structure diagram:a) Parents are found only at the top level of the diagram.b) Parents are found at every level in the diagram.c) Children are found at every level of the diagram except
The difference between a gross material requirements plan (gross MRP) and a net material requirements plan (net MRP) is:a) The gross MRP may not be computerized, but the net MRP must be
Net requirements =a) Gross requirements + Allocations − On-hand inventory + Scheduled receipts.b) Gross requirements − Allocations − On-hand inventory − Scheduled receipts.c) Gross
A lot-sizing procedure that orders on a predetermined time interval with the order quantity equal to the total of the interval’s requirement is:a) Periodic order quantity.b) Part period
MRP II stands for:a) Material resource planning.b) Management requirements planning.c) Management resource planning.d) Material revenue planning.e) Material risk planning.
A(n) ______ MRP system provides information to the capacity plan, to the master production schedule, and ultimately to the production plan.a) Dynamicb) Closed-loopc) Continuousd) Retrospectivee)
Which system extends MRP II to tie in customers and suppliers?a) MRP IIIb) JITc) IRPd) ERPe) Enhanced MRP II
King Finance Corporation, headquartered in New York, wants to assign three recently hired college graduates, Julie Jones, Al Smith, and Pat Wilson, to regional offices. However, the firm also has an
A defense contractor in Dallas has six jobs awaiting processing. Processing time and due dates are given in the table. Assume that jobs arrive in the order shown. Set the processing sequence
The Dallas firm in Solved Problem 15.2 also wants to consider job sequencing by the SPT priority rule. Apply SPT to the same data, and provide a recommendation.Data From Problem 15.2A defense
Use Johnson’s rule to find the optimum sequence for processing the jobs shown through two work centers. Times at each center are in hours. JOB WORK CENTER 1 WORK CENTER 2 6 12 ABCDER 3 18 15 14 16
Illustrate the throughput time and idle time at the two work centers in Solved Problem 15.4 by constructing a time-phased chart.Data From Problem 15.4Use Johnson’s rule to find the optimum sequence
Which of the following decisions covers the longest time period?a) Short-term schedulingb) Capacity planningc) Aggregate planningd) A master schedule
A visual aid used in loading and scheduling jobs is a:a) Gantt chart.b) Planning file.c) Bottleneck.d) Load-schedule matrix.e) Level material chart.
The assignment method involves adding and subtracting appropriate numbers in the table to find the lowest _____ for each assignment.a) Profitb) Number of stepsc) Number of allocationsd) Range per
The most popular priority rules include:a) FCFS.b) EDD.c) SPT.d) All of the above.
The job that should be scheduled last when using Johnson’s rule is the job with the:a) Largest total processing time on both machines.b) Smallest total processing time on both machines.c) Longest
What is computerized short-term scheduling that overcomes the disadvantage of rule-based systems by providing the user with graphical interactive computing?a) LPT b) FCSc) CSS d) FCFSe) GIC
Cyclical scheduling is used to schedule:a) Jobs.b) Machines.c) Shipments.d) Employees.
Match Lean Operations, JIT, and TPS with the concepts shown below:a) Continuous improvement and a focus on exactly what the customer wants, and when.b) Supply the customer with exactly what the
Define the seven wastes and the 5Ss. The seven wastes are ________, ________, ________,________, ________.________, and ________, and the 5Ss are ________, ________, ________, ________, and ________.
Concerns of suppliers when moving to Supplier Partnerships include:a) Small lots sometimes seeming economically prohibitive.b) Realistic quality demands.c) Changes without adequate lead time.d)
What is the formula for optimal setup time? a) V2DQ/[H(1 d/p)] b) VQH(1 d/p)/(2D) c) QH(1 d/p)/(2D) d) QH(1d/p)/(2D) e) H(1d/p)
Kanban is the Japanese word for:a) Car.b) Pull.c) Card.d) Continuous improvement.e) Level schedule.
The required number of kanbans equals:a) 1.b) Demand during lead time / Qc) Size of container.d) Demand during lead time.e) Demand during lead time + Safety stock / Size of container
The six attributes of Lean organizations are: ________, ________, ________, ________, ________, and ________.
Lean applies to services:a) Only in rare instances.b) Except in terms of the supply chain.c) Except in terms of employee issues.d) Except in terms of both supply chain issues and employee issues.e)
The semiconductor used in the Sullivan Wrist Calculator has five circuits, each of which has its own reliability rate. Component 1 has a reliability of .90; component 2, .95; component 3, .98;
A recent engineering change at Sullivan Wrist Calculator places a backup component in each of the two least reliable transistor circuits. The new circuits will look like the following:What is the
The two main tactics for improving reliability are _______ and _______.
The reliability of a system with n independent components equals:a) The sum of the individual reliabilities.b) The minimum reliability among all components.c) The maximum reliability among all
What is the formula for the mean time between failures?a) Number of failures 4 Number of unit-hours of operating timeb) Number of unit-hours of operating time ÷ Number of failuresc) (Number of
The process that is intended to find potential failures and make changes or repairs is known as:a) Breakdown maintenance.b) Failure maintenance.c) Preventive maintenance.d) All of the above.
The two main tactics for improving maintenance are _______ and _______.
The appropriate maintenance policy is developed by balancing preventive maintenance costs with breakdown maintenance costs. The problem is that:a) Preventive maintenance costs are very difficult to
______ maintenance partners operators with maintenance personnel to observe, check, adjust, clean, and notify.a) Partneringb) Operatorc) Breakdownd) Six Sigmae) Autonomous
At Maggard Micro Manufacturing, Inc., workers press semiconductors into predrilled slots on printed circuit boards. The elemental motions for normal time used by the company are as follows:(Each time
To obtain the estimate of time a worker is busy for a work sampling study, a manager divides a typical workday into 480 minutes. Using a random-number table to decide what time to go to an area to
When product demand fluctuates and yet you maintain a constant level of employment, some of your cost savings might include:a) Reduction in hiring costs.b) Reduction in layoff costs and unemployment
The difference between job enrichment and job enlargement is that:a) Enlarged jobs contain a larger number of similar tasks, while enriched jobs include some of the planning and control necessary for
The work environment includes these factors:a) Lighting, noise, temperature, and air qualityb) Illumination, carpeting, and high ceilingsc) Enough space for meetings and videoconferencingd) Noise,
Methods analysis focuses on:a) The design of the machines used to perform a task.b) How a task is accomplished.c) The raw materials that are consumed in performing a task.d) Reducing the number of
The least preferred method of establishing labor standards is:a) Time studies.b) Work sampling.c) Historical experience.d) Predetermined time standards.
The allowance factor in a time study:a) Adjusts normal time for errors and rework.b) Adjusts standard time for lunch breaks.c) Adjusts normal time for personal needs, unavoidable delays, and
To set the required sample size in a time study, you must know:a) The number of employees.b) The number of parts produced per day.c) The desired accuracy and confidence levels.d) Management’s
Jon Jackson Manufacturing is searching for suppliers for its new line of equipment. Jon has narrowed his choices to two sets of suppliers. Believing in diversification of risk, Jon would select two
Over the past 10 weeks, demand for gears at Michael’s Metals has been 140, 230, 100, 175, 165, 220, 200, and 178. Michael has placed weekly orders of 140, 250, 90, 190, 140, 240, 190, and 168
A French car company ships 120,000 cars annually to the United Kingdom. The current method of shipment uses ferries to cross the English Channel and averages 10 days. The firm is considering shipping
Which of the following combinations would result in needing to utilize the largest number of suppliers?a) A high value of S and high value of Ub) A high value of S and low value of Uc) A low value of
Typically, the bullwhip effect is most pronounced at which level of the supply chain?a) Consumers b) Suppliersc) Wholesalers d) Retailers
Which of the following is not a characteristic of the factor-weighting approach to supplier evalution?a) It applies quantitative scores to qualitative criteriab) The weights typically sum to 100%c)
A more expensive shipper tends to provide:a) Faster shipments and lower holding costsb) Faster shipments and higher holding costsc) Slower shipments and lower holding costsd) Slower shipments and
Which of the following items is most likely to be storedat the back of a warehouse, furthest away from the shipping dock?a) Low number of trips and low number of storage blocksb) Low number of trips
David Alexander has compiled the following table of six items in inventory at Angelo Products, along with the unit cost and the annual demand in units:Use ABC analysis to determine which item(s)
The Warren W. Fisher Computer Corporation purchases 8,000 transistors each year as components in minicomputers. The unit cost of each transistor is \($10,\) and the cost of carrying one transistor in
Leonard Presby, Inc., has an annual demand rate of 1,000 units but can produce at an average production rate of 2,000 units. Setup cost is \($10;\) carrying cost is \($1.\) What is the optimal number
Whole Nature Foods sells a gluten-free product for which the annual demand is 5,000 boxes. At the moment, it is paying \($6.40\) for each box; carrying cost is 25% of the unit cost; ordering costs
Children’s art sets are ordered once each year by Ashok Kumar, Inc., and the reorder point, without safety stock (dL), is 100 art sets. Inventory carrying cost is $10 per set per year, and the cost
What safety stock should Ron Satterfield Corporation maintain if mean sales are 80 during the reorder period, the standard deviation is 7, and Ron can tolerate stockouts 10% of the time?
ABC analysis divides on-hand inventory into three classes, based on:a) Unit price.b) The number of units on hand.c) Annual demand.d) Annual dollar values.
Cycle counting:a) Provides a measure of inventory turnover.b) Assumes that all inventory records must be verified with the same frequency.c) Is a process by which inventory records are periodically
The two most important inventory-based questions answered by the typical inventory model are:a) When to place an order and the cost of the order.b) When to place an order and how much of an item to
Extra units in inventory to help reduce stockouts are called:a) Reorder point.b) Safety stock.c) Just-in-time inventory.d) All of the above.
The difference(s) between the basic EOQ model and the production order quantity model is(are) that:a) The production order quantity model does not require the assumption of known, constant demand.b)
The EOQ model with quantity discounts attempts to determine:a) The lowest amount of inventory necessary to satisfy a certain service level.b) The lowest purchase price.c) Whether to use a
The appropriate level of safety stock is typically determined by:a) Minimizing an expected stockout cost.b) Choosing the level of safety stock that assures a given service level.c) Carrying
The roofing manufacturer described in Examples 1 to 4 of this chapter wishes to consider yet a fourth planning strategy (plan 4). This one maintains a constant workforce of eight people and uses
A Dover, Delaware, plant has developed the accompanying supply, demand, cost, and inventory data. The firm has a constant workforce and meets all its demand. Allocate production capacity to satisfy
The outputs from an S&OP process are:a) Long-run plans.b) Detail schedules.c) Aggregate plans.d) Revenue management plans.e) Short-run plans.
Aggregate planning is concerned with determining the quantity and timing of production in the:a) Short term.b) Intermediate term.c) Long term.d) All of the above.
Aggregate planning deals with a number of constraints. These typically are:a) Job assignments, job ordering, dispatching, and overtime help.b) Part-time help, weekly scheduling, and SKU production
Which of the following is not one of the graphical method steps?a) Determine the demand in each period.b) Determine capacity for regular time, overtime, and subcontracting each period.c) Find labor
When might a dummy column be added to a transportation table?a) When supply does not equal demandb) When overtime is greater than regular timec) When subcontracting is greater than regular timed)
Revenue management requires management to deal with:a) Multiple pricing structures.b) Changes in demand.c) Forecasts of use.d) Forecasts of duration of use.e) All of the above.
Determine the low-level coding and the quantity of each component necessary to produce 10 units of an assembly we will call Alpha. The product structure and quantities of each component needed for
The factors involved in location decisions includea) Foreign exchange.b) Attitudes.c) Labor productivity.d) All of the above.
If Fender Guitar pays \($30\) per day to a worker in its Ensenada, Mexico, plant, and the employee completes four instruments per 8-hour day, the labor cost/unit isa) \($30.00\).b) \($3.75\).c)
Evaluating location alternatives by comparing their composite (weighted-average) scores involvesa) Factor-rating analysis.b) Cost–volume analysis.c) Transportation model analysis.d) Linear
On the cost–volume analysis chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity at which:a) Fixed costs are
A regional bookstore chain is about to build a distribution center that is centrally located for its eight retail outlets. It will most likely employ which of the following tools of analysis?a)
What is the major difference in focus between location decisions in the service sector and in the manufacturing sector?a) There is no difference in focus.b) The focus in manufacturing is revenue
Aero Maintenance is a small aircraft engine maintenance facility located in Wichita, Kansas. Its new administrator, Ann Daniel, decides to improve material flow in the facility, using the process
The assembly line whose activities are shown in Figure 9.18 has an 8-minute cycle time. Draw the precedence graph, and find the minimum possible number of one-person workstations. Then arrange the
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