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business
operations management

Questions and Answers of Operations Management

If D = 1,000 per year, S = $62.50 per order, and H = $.50 per unit per year, what is the economic order quantity for purchasing manager Soomin Park?
If the economic order quantity = 300, annual demand = 8,000 units, and order costs = $45 per order, what is the holding cost for P. S. Ravi Metalworks?
Victor Pimentel uses 1,500 units per year of a certain subassembly that has an annual holding cost of $45 per unit. Each order placed costs Victor $150. He operates 300 days per year and has found
Rick Jerz is attempting to perform an inventory analysis on one of his most popular products. Annual demand for this product is 5,000 units; carrying cost is $50 per unit per year; order costs for
Huehn-Brown Products in St. Petersburg offers the following discount schedule for its 4-by-8-foot sheets of quality plywood.Home Sweet Home Company orders plywood from Huehn- Brown. Home Sweet Home
Al-Tawheed Discount Store sells a certain type of office chair for E£400. The annual holding cost is E£40 per unit per year, annual demand is 900 chairs, and the order cost is E£800 per order. The
Given the following data on a hardware item stocked by Andreas Wieland’s paint store in Copenhagen, should the quantity discount be taken?• D = 2,000 units; S = $10; H = $1; P = $1• Discount
The distributor of Sumitomo Tires in Egypt estimates the annual demand of tires for next year to be normally distributed with a mean of 100,000 tires and a standard deviation of 3,000 tires. The
The table below provides information about the demand forecast and the number of working days for a tools manufacturing factory in Egypt.Construct a graph for the daily demand and the average daily
Demand during lead time for one brand of TV is normally distributed with a mean of 36 TVs and a standard deviation of 15 TVs. What safety stock should be carried for Dennis Yu’s Appliance Outlet to
Beqala.com is an online grocery store that sells large fresh shrimps to customers in the area of Cairo, Egypt. The cost per kilo of shrimp is E£150 and it is sold at E£280 per kilo. The remaining
Why are S&OP teams typically cross-functional?
Explain what the term disaggregation means when applied in a manufacturing environment. What is the output of this process?
Identify the two categories of aggregate planning strategies and explain the difference between them.
A motherboard manufacturer in China has received the following demand estimates for the next 6 months:a) The firm has estimated the carrying costs to be 10 Yuan per unit per month, stockout costs to
List and briefly discuss the four techniques used to control labor as part of aggregate planning in the service industry.
Consider the AON graph of a project shown in Figure 19.17.The activity times are 3, 4, 2, 5, 7, 2, 2, and 3 days for activities A1 through A8, respectively. What is the earliest completion time of
What is the difference between primary needs and secondary needs? a. Primary needs are more important than secondary needs. b. Primary needs consist of multiple secondary needs. c.
The product concept is concerned with: a. The solution approach. b. The consumer needs. c. Both the consumer needs and the solution approach. d. None of these options is correct.
Consider two prototypes of a new race car. One is a two-dimensional sketch; the other one is a physical model that almost looks like the new race car, except it has no engine inside. Which of the two
Which of the following techniques is not a form of decomposing a product for the sake of generating product concepts? a. Attribute-based decomposition b. User interaction–based
A value curve shows what type of information for a product concept? a. The value of the product over time b. The degree to which various needs are fulfilled with the product concept c.
Which of the following statements is correct as far as the definition of a service blueprint is concerned? a. A service blueprint is a special form of a user-interaction decomposition. b. A
A minimum viable product is a. a. Prototype of a new product or service that allows the team to collect the maximum amount of learning with the least amount of effort. b. A product that is
What is the purpose of building a minimum viable product? a. To test the technical feasibility of the product b. To test whether or not the product can be produced economically at
The purchase probability is the percentage of customers on the purchase intent survey who indicated they would want to buy the product. True or false? a. True b. False
To get to the sales forecast, we just multiply the market size by the purchase probability. True or false? a. True b. False
Consider two products, A and B, both of which have the same purchase probability. Product A has a population size of 1000 and a 50 percent awareness probability. Product B has a population size of
Which of the following statements about contextual observation is correct? a. Contextual observation can be combined with interviews. b. Contextual observation takes place in the context of
Latent needs are typically associated with which category in the Kano model? a. Performance needs b. Delighters c. Must-haves d. None of these options is correct.
Which of the following statements best describes the idea of a minimum viable product? a. A prototype of a new product or service that tests the technical feasibility of the product. b. A
The Kano model classifies needs into three categories. Which of the following is not a category in the Kano model? a. Performance needs b. Delighters c. Must-haves d. Important
Which of the following statements correctly captures the idea of a minimum viable product? a. A minimum viable product is a product that is financially viable at minimum scale. b. A minimum
A manager of a product development project reviews the results of the concept validation performed by the team. By showing some concepts to consumers, the team discovered an additional need and now
Which of the following statements is correct as far as a service blueprint is concerned? a. A service blueprint helps in identifying the bottleneck. b. A service blueprint distinguishes
Which of the following activities is not part of the product development process? a. Strategic planning b. Identification of customer needs c. Generation of product concepts d.
A need related to a product triggers the following reaction by consumers. Consumers are happy if the need is fulfilled but not really dissatisfied if the need is not fulfilled. What type of need in
Walter is vice president of product development at a big computer maker. At a strategic planning retreat, he talks with the vice president of purchasing and the vice president of production. The
Dishwasher 2020 is a new product under development at a large appliance company looking to develop the next generation of products in the dishwasher market. The team has done some market research and
BMW launches a new 3-series model every four to six years. Such launches are which type of innovation? a. Horizon 1 innovations b. Horizon 2 innovations c. Horizon 3
Which of the following activities is not part of the product development process? a. Generation of product concepts b. Validation of product concepts c. Sales forecasting d.
Your friend Tony has many ideas. Five times a week, he calls you and explains to you a new device he invented. However, few of these devices address a user need. Are these ideas innovation? a.
Which of the following descriptions best captures the project manager’s responsibilities? a. Define the project, plan the project, control the project. b. List all activities, determine
What is the effect of overlapping activities that are not on the critical path? a. An earlier project completion time b. A later project completion time c. No effect
The key objectives of a project are given by a. Time, scope, and budget. b. Cost, quality, and location. c. Customers, suppliers, and employees. d. Efficiency, effectiveness, and
You have been asked by the CEO of your company to manage a really important project. The CEO suggested five employees to be on your project team. You now think about the right organizational
The key objectives of a project can be summarized in the form of a a. Line. b. Triangle. c. Square. d. Hexagon.
Which of the following activities is not part of defining a project? a. The project triangle b. The project resources c. The work breakdown structure d. The critical path
A project manager is concerned about rework, specifically about having to iterate on two activities that are on the critical path. A consultant tells the project manager not to worry, because the
You manage a project with 10 activities. Activities A1, A3, A5, and A9 form the critical path. Because you have a large budget for the project, you consider crashing activity A2, which has the
Consider two projects that have the same activities and the same dependencies. In the first project, the activity times are expected outcomes. The actual times will vary. In the second project, the
What happens as you increase the number of people working on a project from three to six? a. The project will get done twice as quickly. b. The communication requirements for the project
Which of the following statements is correct with respect to a Gantt chart? a. The x-axis of a Gantt chart shows a time line. b. The y-axis shows the activities of a project. c. The
Which of the following statements best defines the scope of a project? a. What must be accomplished in order for the project to be completed b. What budget is required to complete the
What is the late start schedule for a project? a. It is the latest start and the latest completion times of the project activities so that the overall project is still completed on time. b.
A project consists of three tasks: A, B, and C. Task A is known to take five days for sure. Tasks B and C are each dependent on A. B takes five days. C takes seven days with a probability of 0.5 and
Which of the following statements is correct with respect to slack time? a. The slack time of an activity is the latest completion time of the activity minus the earliest completion
What is the relationship between the earliest start time (EST) of an activity and the earliest completion time (ECT) of the activity? a. EST + Activity time = ECT b. EST × Activity time =
Which of the following statements is correct with respect to describing a Gantt chart? a. In a Gantt chart, activities with longer times are captured by bars that are longer along the
The critical path in a project is the sequence of activities that a. Has the shortest time. b. Has the smallest number of activities. c. Has the shortest budget. d. None of these
What is the definition of the latest completion time (LCT) of a project activity? a. LCT(Ai) = Max{LST(Aj) for which Aj is a successor of Ai} b. LCT(Ai) = Min{LST(Aj) for which Aj is a
In an AON graph of a project, there only exists one path from the first to the last activity. True or false? a. True b. False
A project activity has an earliest completion time of 5, an activity time of 3, and a latest completion time of 6. What is the slack time for the activity? a. 1 b. 2 c. 3 d.
Which of the following statements is correct with respect to an AON graph of a project? a. In an AON graph, the activities are on the edges of a graph. b. In an AON graph, the activities
Consider the AON graph of a project shown in Figure 19.18. The activity times are 3, 4, 2, 5, 7, 2, 2, and 3 days for activities A1 through A8, respectively. What is the critical path? a.
Consider a project with two activities that are interdependent. Which of the following statements is correct? a. Both activities can be carried out in parallel without coordination. b.
Consider the simple dependency matrix shown in Table 19.12. Which of the following statements is correct? a. The two activities are independent of each other and the project can carry out
1. How is it possible to build a house so quickly? Or, asked differently, why are other residential construction projects taking 100 times longer? 2. What lessons can be learned from this
Consider the AON graph of a project shown in Figure 19.16 Which of the following statements is correct? a. A1 is a predecessor activity to A2. b. A2 is a successor activity of
A project has four activities that take 4, 3, 6, and 7 days, respectively. What is the total completion time for the project? a. 3 days, because this is the minimum time b. 7 days, because
Draw a Gantt chart visualizing the evolution of the project from initial design competition to completion. Discuss the iteration between construction and design in the context of a dependency
Which of the following statements is correct with respect to a dependency matrix? a. An activity can have multiple predecessor activities. b. An activity can have multiple successor
If the jobs displayed in Table 18.24 are processed using the earliestdue-date rule, what would be the lateness of job C? TABLE 18.24 Processing Times and Due Dates for Five Jobs Job А В C D E
If the jobs displayed in Table 18.24 are processed using the earliestdue-date rule, what would be the lateness of job C? TABLE 18.24 Processing Times and Due Dates for Five Jobs Job А В C D E
If the jobs displayed in Table 18.24 are processed using the earliestdue-date rule, what would be the lateness of job C? TABLE 18.24 Processing Times and Due Dates for Five Jobs Job А В C D E
If the jobs displayed in Table 18.23 are processed using the earliestdue-date rule, what is the maximum tardiness? TABLE 18.23 Processing Times and Due Dates for Five Jobs Job A B C D E
Assume the jobs displayed in Table 18.22 need to be processed on a single resource and are sequenced with the WSPT rule. Which job would be processed second?a. A b. B c. C d. D e.
If the jobs displayed in Table 18.24 are processed using the earliestdue-date rule, what would be the lateness of job A? TABLE 18.24 Processing Times and Due Dates for Five Jobs Job А В C D E
Which of the following is a benefit of overbooking a resource? a. It helps to reduce the average number of jobs waiting to be processed on the resource. b. It helps to reduce the average
If the jobs displayed in Table 18.23 are processed using the earliestdue-date rule, what is the maximum tardiness? TABLE 18.23 Processing Times and Due Dates for Five Jobs Job A B C D E
If an appointment system evenly spaces out appointments throughout the day, then patients arriving during the second half of the day can expect to wait the same amount of time as patients arriving
The theory of constraints is most applicable in which of the following processes? a. An auto repair shop with one mechanic b. A chemical processing plant with numerous pieces of equipment
If the jobs displayed in Table 18.23 are processed using the earliestdue-date rule, what would be the tardiness of job E? TABLE 18.23 Processing Times and Due Dates for Five Jobs Job A B C D E
Why does the theory of constraints advocate that a manager’s attention be directed to the bottleneck of a process? a. It is useful to lower the utilization of the bottleneck. b. The
If the jobs displayed in Table 18.23 are processed using the earliestdue-date rule, what would be the lateness of job B? TABLE 18.23 Processing Times and Due Dates for Five Jobs Job A B C D E
The earliest-due-date rule always minimizes the maximum tardiness across jobs. True or false? a. True b. False
The earliest-due-date rule always minimizes the average lateness across jobs. True or false? a. True b. False
Assume the jobs displayed in Table 18.22 need to be processed on a single resource and are sequenced with the WSPT rule. What is the average inventory of the jobs? TABLE 18.22 Processing Times
Assume the jobs displayed in Table 18.22 need to be processed on a single resource and are sequenced with the WSPT rule. What is the average flow time of the jobs (in minutes)? TABLE 18.22
Jobs have different processing times and due dates. If a job is finished earlier than its due date but one day sooner than expected, how does this change the job’s tardiness? a. Tardiness
Assume the jobs displayed in Table 18.22 need to be processed on a single resource and are sequenced with the WSPT rule. What is the average flow rate of the jobs (in jobs per minute)? TABLE
Jobs have different processing times and due dates. If a job is finished earlier than its due date but one day sooner than expected, how does this change the job’s lateness? a. Lateness
Which of the following statements best explains why an organization would use weighted shortest processing time instead of shortest processing time? a. Jobs differ in how important it is for
Given the projects displayed in Table 18.21, if SPT is used to sequence the jobs, what is the average inventory of the projects (in projects)? Project P1 P2 P3 P4 P5 P6 P7 P8 Processing time (hours)
With weighted shortest processing time, jobs are scheduled at a resource in what order? a. In increasing order of their processing times b. In the order they arrived c. In decreasing
Given the projects displayed in Table 18.21, if SPT is used to sequence the jobs, what is the average flow time of the projects (in hours)? Project P1 P2 P3 P4 P5 P6 P7 P8 Processing time (hours) 4 1
The difference in the average flow time between shortest processing time and first-come-first-served is greatest when a. All of the jobs have the same processing times. b. The utilization
Given the projects displayed in Table 18.21, if SPT is used to sequence the jobs, what is the average flow rate of the projects (in projects per hour)? Project P1 P2 P3 P4 P5 P6 P7 P8
The flow time of every job is lower with shortest processing time than with first-come-first-served. True or false? a. True b. False
Given the projects displayed in Table 18.21, if FCFS is used to sequence the jobs, what is the average inventory of the projects (in projects)? Project P1 P2 P3 P4 P5 P6 P7 P8 Processing time

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