Questions and Answers of Operations Management 6th

Which of the statements below best describes office layout?a) Groups workers, their equipment, and spaces/offices to provide for movement of information.b) Addresses the layout requirements of large,
Which of the following does not support the retail layout objective of maximizing customer exposure to products?a) Locate high-draw items around the periphery of the store.b) Use prominent locations
The major problem addressed by the warehouse layout strategy is:a) Minimizing difficulties caused by material flow varying with each product.b) Requiring frequent contact close to one another.c)
A fixed-position layout:a) Groups workers to provide for movement of information.b) Addresses the layout requirements of large, bulky projects such as ships and buildings.c) Seeks the best machine
A process-oriented layout:a) Groups workers to provide for movement of information.b) Addresses the layout requirements of large, bulky projects such as ships and buildings.c) Seeks the best machine
For a focused work center or focused factory to be appropriate, the following three factors are
Before considering a product-oriented layout, it is important to be certain
An assembly line is to be designed for a product whose completion requires 21 minutes of work. The factory works 400 minutes per day. Can a production line with five workstations make 100 units per
As pit crew manager for Rusty Wallace’s NASCAR team (see the Global Company Profile that opens this chapter), you would like to evaluate how your “Jackman” (JM) and “Gas Man #1” (GM #1) are
A work operation consisting of three elements has been subjected to a stopwatch time study. The recorded observations are shown in the following table. By union contract, the allowance time for the
The preliminary work sample of an operation indicates the following:What is the required sample size for a 99.73% confidence level with ±4% precision? Number of times operator working Number of
Amor Manufacturing Co. of Geneva, Switzerland, has just observed a job in its laboratory in anticipation of releasing the job to the factory for production. The firm wants rather good accuracy for
Sara James Bakery, described in Examples S1 and S2, has decided to increase its facilities by adding one additional process line. The firm will have two process lines, each working 7 days a week, 3
Marty McDonald has a business packaging software in Wisconsin. His annual fixed cost is $$10,000,$ direct labor is $$3.50$ per package, and material is $$4.50$ per package. The selling price
John has been asked to determine whether the $22.50 cost of tickets for the community dinner theater will allow the group to achieve break-even and whether the 175 seating capacity is adequate. The
Your boss has told you to evaluate the cost of two machines. After some questioning, you are assured that they have the costs shown at the right. Assume:a) The life of each machine is 3 years.b) The
T. Smunt Manufacturing Corp. has the process displayed below. The drilling operation occurs separately from and simultaneously with the sawing and sanding operations. The product only needs to go
Capacity decisions should be made on the basis of:a) Building sustained competitive advantage.b) Good financial returns.c) A coordinated plan.d) Integration into the company’s strategy.e) All of
Effective capacity is:a) The capacity a firm expects to achieve, given the current operating constraints.b) The percentage of design capacity actually achieved.c) The percentage of capacity actually
System capacity is based on:a) The bottleneck.b) Throughput time.c) Time of the fastest station.d) Throughput time plus waiting time.e) None of the above.
The break-even point is:a) Adding processes to meet the point of changing product demands.b) Improving processes to increase throughput.c) The point in dollars or units at which cost equals
Expected monetary value is most appropriate:a) When the payoffs are equal.b) When the probability of each decision alternative is known.c) When probabilities are the same.d) When both revenue and
Net present value:a) Is greater if cash receipts occur later rather than earlier.b) Is greater if cash receipts occur earlier rather than later.c) Is revenue minus fixed cost.d) Is preferred over
Ching-Chang Kuo is considering opening a new foundry in Denton, Texas; Edwardsville, Illinois; or Fayetteville,Arkansas, to produce high-quality rifle sights. He has assembled the following
The Metropolis Public Library plans to expand with its first major branch library in the city’s growing north side. The branch will serve six census tracts. Here are the coordinates of each tract
Quarterly demand for Ford F150 pickups at a New York auto dealer is forecast with the equation:The demand for trucks is seasonal, and the indices for Quarters I, II, III, and IV are 0.80, 1.00, 1.30,
Cengiz Haksever runs an Istanbul high-end jewelry shop. He advertises weekly in local Turkish newspapers and is thinking of increasing his ad budget. Before doing so, he decides to evaluate the past
Using the data in Solved Problem 4.7, find the coefficient of determination, r2, for the model.Data From Problem 4.7Cengiz Haksever runs an Istanbul high-end jewelry shop. He advertises weekly in
Forecasting time horizons include:a) Long range. b) Medium range.c) Short range. d) All of the above.
Qualitative methods of forecasting include:a) Sales force composite.b) Jury of executive opinion.c) Consumer market survey. d) Exponential smoothing.e) All except (d).
The difference between a moving-average model and an exponential smoothing model is that________.
Three popular measures of forecast accuracy are:a) Total error, average error, and mean error.b) Average error, median error, and maximum error.c) Median error, minimum error, and maximum absolute
Average demand for iPods in the Rome, Italy, Apple store is 800 units per month. The May monthly index is 1.25. What is the seasonally adjusted sales forecast for May?a) 640 units b) 798.75 unitsc)
The main difference between simple and multiple regression is_________.
The tracking signal is the:a) Standard error of the estimate.b) Cumulative error.c) Mean absolute deviation (MAD).d) Ratio of the cumulative error to MAD.e) Mean absolute percent error (MAPE).
The design team for Superior Electronics is creating a mobile audio player and must choose between two design alternatives. Which is the better environmental design alternative, based on achieving a
The City of High Point is buying new school buses for the local school system. High Point has found two models of school buses that it is interested in. Eagle Mover costs $$80,000$ to buy and uses
Corporate social responsibility includes:a) Doing what’s right.b) Having policies that consider environmental, societal, and financial impact.c) Considering a product from design to disposal.d) All
Sustainability deals:a) Solely with green products, recycling, global warming, and rain forests.b) With keeping products that are not recyclable.c) With meeting the needs of present and future
The 3Rs of sustainability are:a) Reputation, reuse, reduce.b) Reputation, recycle, reuse.c) Reputation, reverse logistics, renewal.d) Reuse, reduce, recycle.e) Recycle, review, reuse.
Design for disassembly is:a) Cost–benefit analysis for old parts.b) Analysis of the amount of revenue that might be reclaimed versus the cost of disposing of a product.c) A means of recycling
U.S. and international agencies provide policies and regulations to guide managers in product design, manufacturing/assembly, and disassembly/disposal. They include:a) U.N. Commission on
A manufacturer of precision machine parts produces round shafts for use in the construction of drill presses. The average diameter of a shaft is .56 inch. Inspection samples contain 6 shafts each.
Nocaf Drinks, Inc., a producer of decaffeinated coffee, bottles Nocaf. Each bottle should have a net weight of 4 ounces. The machine that fills the bottles with coffee is new, and the operations
Altman Distributors, Inc., fills catalog orders. Samples of size n = 100 orders have been taken each day over the past 6 weeks. The average defect rate was .05. Determine the upper and lower limits
Ettlie Engineering has a new catalyst injection system for your countertop production line. Your process engineering department has conducted experiments and determined that the mean is 8.01 grams
Airlines lose thousands of checked bags every day, and America South Airlines is no exception to the industry rule. Over the past 6 weeks, the number of bags “misplaced” on America South flights
If the mean of a particular sample is within control limits and the range of that sample is not within control limits:a) The process is in control, with only assignable causes of variation.b) The
The central limit theorem:a) Is the theoretical foundation of the c-chart.b) States that the average of assignable variations is zero.c) Allows managers to use the normal distribution as the basis
The type of chart used to control the central tendency of variables with continuous dimensions is:a) x̅-chart.b) R-chart.c) P-chart.d) C-chart.e) None of the above.
If parts in a sample are measured and the mean of the sample measurement is outside the control limits:a) The process is out of control, and the cause should be established.b) The process is in
Control charts for attributes are:a) P-charts.b) C-charts.c) R-charts.d) x̅-charts.e) Both a and b.
The ability of a process to meet design specifications is called:a) Taguchi.b) Process capability.c) Capability index.d) Acceptance sampling.e) Average outgoing quality.
The _______ risk is the probability that a lot will be rejected despite the quality level exceeding or meeting the _______.
Insert a dummy activity and event to correct the following AOA network: T 3 days 5 days 2 3 5
Calculate the critical path, project completion time T, and project variance σ2p, based on the following AON network information: ACTIVITY TIME VARIANCE ES EF LS LF SLACK A 2 0 2 0 2 0 B 3 0 3 1 4 1
To complete the wing assembly for an experimental aircraft, Jim Gilbert has laid out the seven major activities involved. These activities have been labeled A through G in the following table, which
Referring to Solved Problem 3.4, now Jim Gilbert would like to determine the critical path for the entire wing assembly project as well as the expected completion time for the total project. In
The following information has been computed from a project:Expected total project time = T = 62 weeksProject variance (σ2p) = 81What is the probability that the project will be completed 18 weeks
Determine the least cost of reducing the project completion date by 3 months based on the following information: Start A B E End
Which of the following statements regarding Gantt charts is true?a) Gantt charts give a timeline and precedence relationships for each activity of a project.b) Gantt charts use the four standard
Which of the following is true about AOA and AON networks?a) In AOA, arrows represent activities.b) In AON, nodes represent activities.c) Activities consume time and resources.d) Nodes are also
Slack time equals:a) ES + t. b) LS − ES.c) zero. d) EF − ES.
The critical path of a network is the:a) Shortest-time path through the network.b) Path with the fewest activities.c) Path with the most activities.d) Longest-time path through the network.
PERT analysis computes the variance of the total project completion time as:a) The sum of the variances of all activities in the project.b) The sum of the variances of all activities on the critical
The crash cost per period:a) Is the difference in costs divided by the difference in times (crash and normal).b) Is considered to be linear in the range between normal and crash.c) needs to be
Sales of hair dryers at the Walgreens stores in Youngstown, Ohio, over the past 4 months have been 100, 110, 120, and 130 units (with 130 being the most recent sales). Develop a moving-average
The following data come from regression line projections:Compute the MAD and MSE. PERIOD FORECAST VALUES ACTUAL VALUES 1 410 406 23 4 419 423 428 423 435 440
Room registrations in the Toronto Towers Plaza Hotel have been recorded for the past 9 years. To project future occupancy, management would like to determine the mathematical trend of guest
Much before the dairy cooperative movement took roots in the country, the trail to milk revolution was set ablaze by Babasaheb Chitale .The journey began in 1939, in the small town of Bhilwadi which
Productivity increases when:a) Inputs increase while outputs remain the same.b) Inputs decrease while outputs remain the same.c) Outputs decrease while inputs remain the same.d) Inputs and outputs
Services often:a) Are tangible.b) Are standardized.c) Are knowledge based.d) Are low in customer interaction.e) Have consistent product definition.
Productivity:a) Can use many factors as the numerator.b) Is the same thing as production.c) Increases at about 0.5% per year.d) Is dependent upon labor, management, and capital.e) Is the same thing
Single-factor productivity:a) Remains constant.b) Is never constant.c) Usually uses labor as a factor.d) Seldom uses labor as a factor.e) Uses management as a factor.
Multifactor productivity:a) Remains constant.b) Is never constant.c) Usually uses substitutes as common variables for the factors of production.d) Seldom uses labor as a factor.e) Always uses
Productivity increases each year in the U.S. are a result of three factors:a) Labor, capital, managementb) Engineering, labor, capitalc) Engineering, capital, quality controld) Engineering, labor,
The global tire industry continues to consolidate. Michelin buys Goodrich and Uniroyal and builds plants throughout the world. Bridgestone buys Firestone, expands its research budget, and focuses on
DeHoratius Electronics, Inc., is evaluating several options for sourcing a critical processor for its new modem. Three sources are being considered: Hi-Tech in Canada, Zia in Hong Kong, and Zaragoza
A mission statement is beneficial to an organization because it:a) Is a statement of the organization’s purpose.b) Provides a basis for the organization’s culture.c) Identifies important
The three strategic approaches to competitive advantage are ____, ____, and _____.
Core competencies are those strengths in a firm that include:a) Specialized skills.b) Unique production methods.c) Proprietary information/knowledge.d) Things a company does better than others.e) All
Evaluating outsourcing providers by comparing their weighted average scores involves:a) Factor-rating analysis.b) Cost-volume analysis.c) Transportation model analysis.d) Linear regression
A company that is organized across international boundaries, with decentralized authority and substantial autonomy at each business via subsidiaries, franchises, or joint ventures, has:a) A global
Art Binley has decided to look at his productivity from a multi factor (total factor productivity) perspective (refer to Solved Problem 1.1). To do so, he has determined his labor, capital, energy,
Using the job times and due dates from Solved Problem 2, determine each of the following performance measures for first-come, first-served processing order: Assume jobs listed in order of arrival.a.
Use Johnson’s rule to obtain the optimum sequence for processing the jobs shown through work centers A and B. JOB TIMES (hours) Job Work Center A Work Center B a 2.50 4.20 b 3.80 1.50 C 2.20 3.00 d
Give a general description of PERT/CPM techniques.
Refer to Problem 2. Determine profit when volume equals 22,000 units.
Processing times for new accounts at a bank are shown in the following table. Five samples of four observations each have been taken. Use the sample data in conjunction with Table 10.3 to construct
After several investigations of points outside control limits revealed nothing, a manager began to wonder about the probability of a Type I error for the control limits used (z = 1.90).a. Determine
This type of problem can be recognized when annual demand (D), ordering cost (S), and holding or carrying cost per unit (H) are given. Use Formula 12–2 for order quantity, Formula 12–1 for total
This type of problem can be recognized when a production rate (p) and a usage rate (u) are given in addition to the basic EOQ information. Use Formula 12–5 to compute the optimal run quantity.
This type of problem can be recognized when the demand rate (d), lead time (LT), and desired service level or stockout risk are given. Use these steps to solve this type of problem:1. Match the
ROP for constant demand and variable lead time. The motel in the preceding example uses approximately 600 bottles of water each day, and this tends to be fairly constant. Lead time for water delivery
This type of problem can be recognized when an order interval is given (e.g., inventory is ordered every 10 days) along with the demand rate, lead time, and quantity on hand at order time. Use
This type of problem can be recognized when a probability distribution or empirical distribution for demand of a “perishable” item is given along with unit shortage and excess costs, or
Consider the jobs displayed in Table 11.14. Assume the shortest processing time is used to sequence the jobs.Table 11.14a. Which job is the fourth to be processed?b. What is the flow time of job F
Assume the jobs displayed in Table 11.16 need to be processed on a single resource and are sequenced with the WSPT rule.Table 11.16a. Which job would be processed second?b. What is the average flow
If the jobs displayed in Table 11.20 are processed using the earliest-due-date rule,Table 11.20a. What would be the lateness of job B?b. What would be the tardiness of job E?c. What is the maximum
Consider the dependency matrix and the activity durations provided above.a. Create a dependency matrix for the activities described, and build a project graph.b. Find the critical path. What is the

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