True/False

1. A worker moving inventory from one machine to another is considered non-value-added work

2. A new backpack that has a zipper which is broken due to a supplier problem is indicative of a quality problem resulting from assignable cause variations.

3. An chart is used to track a process with binary outcome variables.

4. A control chart is used to identify the assignable causes of variation in a process.

5. C&A Bakery serves 200 customers in 10 hours. On average there are five customers in the bakery. This means each customer spends on average 15 minutes in the bakery

6. Cycle time is the time between when an order is placed and when it is completed.

7. A resource with a utilization of less than 100% cannot be the bottleneck

8. Setup involves different amounts of time depending on the actual number of units to be made.

9. A resource with setups can achieve a flow rate that is equal to its capacity

10. A process capability index of 2 means that the upper and lower specification limits of the process are six standard deviations above and below the mean respectively

11. Measuring inventory in terms of dollars tells us whether the amount of inventory is large or not

12. A firm's ordering cost per year is independent of its order quantity decision

13.As demand increases, the optimal economic order quantity increases at the same rate of demand.