Please answer the following mutliple choice questions by providing the correct answer for each

1. For dressings and other medical supplies, a hospital faces a weekly demand with a mean of 5000 units and a standard deviation of 1000 units. Given that the supply lead times is four weeks, how much safety inventory should the hospital keep to achieve a service level of 95% (note that z needs to be equal to 1.65 in this case)?

a. 1000

b. 3300

c. 5000

d. 23,300

2. A sports retailer has to decide on its desired level of product availability well ahead of the uncertain customer demand. Given a purchase price of 300 per unit, a regular retail price of 450 per unit and a discount retail price of 250 per unit, what is the optimal level of product availability for the retailer?

a. The optimal level of product availability is 50%.

b. The optimal level of product availability is 67%.

c. The optimal level of product availability is 75%.

d. The optimal level of product availability is 90%.

3. Given an effective unit load of {10,15,30} minutes per flow unit and a resource pool of 3 non-identical resource units, what is the effective capacity? a. 6 units per hour

b. 10 units per hour

c. 12 units per hour

d. 18 units per hour

4. A call centre operator can process 10 calls per hour on average. What is the average time a customer spends in line when there are on average 4 customers in line that are either being processed or waiting to being processed?

a. 20 minutes

b. 24 minutes

c. 32 minutes

d. 40 minutes

5. Which of the following statements is correct? a. Process capability is about meeting the external expectations.

b. Process capability is about keeping performance in control bands.

c. Process capability is about meeting the internal expectations.

d. Process capability is about eliminating abnormal normal variability.

6. Errors occurring when no action is taken as a process exhibits a measure within the control band although it is out of control are called: a. Type I error

b. Sampling error

c. Type II error

d. Control error

7. A capacity management strategy that attempts to reduce fluctuations by stimulating off-peaks and constraining peaks is called: a. Level capacity strategy

b. Chase demand strategy

c. Demand management strategy

d. Yield management strategy

8. Which of the following measures is suitable to improve the environmental sustainability of material handling activities at warehouses and other facilities? a. Improved inventory management that allows for lowered stock levels

b. Improved logistics planning to reduce transports and traveling distances

c. Using more efficient means of transportation with alternative engines

d. Using modular product designs that ease disassembly and recycling

9. Which of the following is a cause of delays and queues in make-to-order operations?

a. Variability in processing times

b. High capacity utilization

c. High inflow rate

d. All of the above

10. In a process flowchart, the critical path denotes ... a. The shortest path from start to finish b. The path with the fewest activities between start and finish

c. The path with the most activities between start and finish

d. The longest path from start to finish

11. Which of the following actions is not suitable to increase the capacity level of a process?

a. Increasing the time of operation b. Move work off the critical path c. Subcontracting and outsourcing d. Increase the speed of the operation

12. According to Littles Law, what condition holds true in any stable process?

a. Throughput rate = Average inventory / Average flow time b. Throughput rate = Average inventory * Average flow time c. Throughput rate = Average flow time / Average inventory

d. Throughput rate = Average flow time * Average inventory

13. In an automobile manufacturing plant two parallel machining centres are used to produce a motor component. On average, each machining centre can produce 10 units of the component per hour and on average there are 5 units of the component being processed or waiting to being processed? What is the average amount of time components spend at the machining centres?

a. 6 minutes

b. 15 minutes

c. 30 minutes

d. 60 minutes

14. Given a resource pool of 3 non-identical resource units with an effective unit load of {10,15,30} minutes per flow unit, what is the effective capacity? a. 6 units per hour. b. 12 units per hour.

c. 18 units per hour.

d. 24 units per hour.

15. A retail store sells about 250 units of a certain product each month. The product has a unit cost of 50 and the store face annual inventory holding cost of 20% (including physical holding cost and cost of capital). The fixed cost of a replenishment order is 150. Given that the retail store wants to minimize annual ordering and holding cost, what order quantity do you recommend?

a. 85

b. 215

c. 250

d. 300

16. For its replacement parts, a manufacturer faces a monthly demand with a mean of 4000 units and standard deviation of 300 units. Given that it takes four months to manufacture the replacement parts, how much safety inventory should the manufacturer keep assuring a service level of 98% (note that the safety factor z needs to be equal to 2.05 in this case)?

a. 300

b. 615

c. 1,230

d. 2,460

17. After freezing, ice cream must be kept between -15 and -35 degrees Celsius. The refrigeration process needed to keep the temperature has a standard deviation of 2 degrees Celsius while the mean temperature is -25 degrees Celsius. What is the capability ratio (Cp) of this process?

a. 0.50

b. 0.83

c. 1.67

d. 3.33

18. The supplier of an automobile manufacturer is planning to implement Heijunka (production levelling). The manufacturer has suggested to the supplier to cut the batch size from currently 40 units down to 10 units. To achieve this, the supplier should:

a. Reduce the setup cost by the factor of 4 b. Reduce the setup cost by the factor of 16 c. Reduce the setup cost by the factor of 4 d. Ignore setup cost as these have no effect on batch size

19. Which of the following is not required for Just-in-time (JIT) production

a. Dependable suppliers and deliveries. b. Reliable equipment and machines. c. Standardised operations and processes.

d. Floor space for stocks and equipment.

20. Which of the following statements is correct? a. Process capability is about keeping performance in control bands.

b. Process capability is about meeting the internal expectations. c. Process capability is about meeting the external expectations. d. Process capability is about eliminating abnormal normal variability.