Prod Compiled

ch11Key
1.Aggregateplanningisintermediaterangecapacityplanningthattypicallycoversatime
horizonofonetothreemonths.
FALSE
Aggregateplanningcoversthemidterm,typicallytwoto12months.
AACSB:ReflectiveThinking
Blooms:Remember
Difficulty:Medium
LearningObjective:1101Explainwhataggregateplanningisandhowitisuseful.
StevensonChapter11#1
TopicArea:Introduction
2.Thegoalofaggregateplanningistoachieveaproductionplanthatattemptstobalancethe
organization'sresourcesandmeetexpecteddemand.
TRUE
Thisisthegoalofaggregateplanning.
Blooms:Remember
Difficulty:Easy
3.Aggregateplannersareconcernedwiththequalityandquantityofexpecteddemand.
FALSE
Aggregateplannersareconcernedwiththequantityandtimingofexpecteddemand.
Blooms:Remember
Difficulty:Easy
4.Aggregateplanningisusedtoestablishgenerallevelsofemployment,output,andinventories
overanintermediaterangeoftime.
TRUE
Thisisthedomainofaggregateplanning.
Blooms:Remember
Difficulty:Easy
5.Theassignmentofworktospecificmachinesandpeopleareexamplesofaggregateplanning.
FALSE
Assigningworktospecificmachinesorpeopleisanexampleofdetailedscheduling.
Blooms:Remember
Difficulty:Medium
6.Theoutputfromaggregateplanningisadetailedbusinessplancoveringthenext2to12
months.
FALSE
Theoutputisanaggregateproductionplan.
Blooms:Remember
Difficulty:Easy
7.Demandcanbealteredinaggregateplanningbypromotionandproducingadditionalproduct
usingovertime.
FALSE
Thesearesupplyoptions.
Blooms:Remember
Difficulty:Hard
LearningObjective:1102Identifythevariablesdecisionmakershavetoworkwithinaggregateplanningandsomeofthepossiblestrategies
theycanuse.
8.Capacitycanbemodifiedinaggregateplanningbypromotionandproducingadditional
productusingovertime.
FALSE
Promotionsdonotmodifycapacity.
Blooms:Remember
Difficulty:Hard
theycanuse.
9.Organizationsfacingseasonalchangesindemandarepreventedfromusingaggregate
planningtechniques.
FALSE
Aggregateplanningcanaccommodateseasonalchangesindemand.
Blooms:Remember
Difficulty:Medium
theycanuse.
10.Seasonalityindemandhastheadvantageoflevelingoutrequirementsforourproductor
service.
FALSE
Seasonalityincreasesvariationinrequirements.
Blooms:Remember
Difficulty:Medium
theycanuse.
11.Alevelcapacitystrategyisalsoknownasachasedemandstrategy.
FALSE
Levelandchasestrategiesareoppositeapproaches.
Blooms:Remember
Difficulty:Easy
theycanuse.
TopicArea:BasicStrategiesforMeetingUnevenDemand
12.Anadvantageofa"chase"strategyforaggregateplanningisthatinventoriescanbekept
relativelylow.
TRUE
Thechasestrategykeepsinventorieslow.
Blooms:Understand
Difficulty:Medium
theycanuse.
13.Linearprogrammingmodelsyieldtheoptimalsolution.
TRUE
Linearprogrammingmodelscanfindanoptimalsolutionifoneexists.
Blooms:Remember
Difficulty:Medium
LearningObjective:1103Describesomeofthegraphicalandquantitativetechniquesplannersuse.
TopicArea:TechniquesforAggregatePlanning
14.Ultimatelytheoverridingfactorinchoosingastrategyinaggregateplanningisoverallcost.
TRUE
Thetaskofaggregateplanningistostrikeabalancebetweendemandandcapacityatminimum
cost.
Blooms:Remember
Difficulty:Hard
theycanuse.
15.Aggregateplannerscommonlyusetrialanderrormethodsindevelopingaggregateplans.
TRUE
Trialanderrorapproachescanleadtogoodsolutions.
Blooms:Remember
Difficulty:Easy
16.Theuseoftablesandchartsinaggregateplanningusuallyenablesplannerstoarriveatan
optimalplan.
FALSE
Suchsolutionsmaybegoodsolutions,butthey'reusuallynotoptimal.
Blooms:Remember
Difficulty:Hard
17.Aggregateplannerstypicallyusemathematicaltechniquessuchaslinearprogrammingand
lineardecisionrulesforplanning.
FALSE
Bothqualitativeandquantitativeapproachesareusedinaggregateplanning.
Blooms:Remember
Difficulty:Medium
18.Disaggregatinganaggregateplanleadstoamasterschedule.
TRUE
Thisisanoutputoftheaggregateplanningprocess.
Blooms:Remember
Difficulty:Medium
TopicArea:DisaggregatingtheAggregatePlan
19.Themasterscheduleindicatesthequantityandtimingfordeliveryofaproduct,butnotthe
datesproductionwillneedtostart.
TRUE
Requiredstartdatesdependonproducts'leadtimes.
Blooms:Remember
Difficulty:Easy
20.Departmentalbudgetingisanexampleofaggregateplanning.
TRUE
Thechallengeistogetrequirementsintobalancewithresources.
Blooms:Remember
Difficulty:Easy
21.Masterschedulersareemployedprimarilybyserviceorganizations.
FALSE
Masterschedulersareprimarilyemployedinmanufacturing.
Blooms:Remember
Difficulty:Easy
LearningObjective:1105Describethemasterschedulingprocessandexplainitsimportance.
22.Subcontracting'in'wouldapplytoperiodsinwhichourorganizationhasexcesscapacity.
TRUE
Subcontractinginwouldbesellingsomeavailablecapacity.
Blooms:Remember
Difficulty:Medium
theycanuse.
23.AvailabletopromiseinthefirstweekisequaltobeginninginventoryplusMPSquantity,if
any,lesscommittedcustomerordersbeforethenextMPSquantity.
TRUE
ThisistheATPcalculationforthefirstweek.
Blooms:Remember
Difficulty:Medium
TopicArea:TheMasterSchedulingProcess
24.Atimefenceinthemasterscheduleisusedtopreventunauthorizedpeoplefrommaking
changestotheschedule.
FALSE
Timefencesareusedtoensurethatfullconsiderationisgivenwhenschedulechangesarebeing
considered.
Blooms:Remember
Difficulty:Medium
25.Afterthefirstperiodoftheplanninghorizon,availabletopromiseiscomputedonlyfor
thoseperiodsinwhichthereisanMPSquantity.
TRUE
Afterthefirstweek,ATPvalueswillonlyoccurinperiodsinwhichthereareMPSquantities.
Blooms:Remember
Difficulty:Medium
26.Inthemasterproductionschedule,productionisplannedforthenextperiodwheneverthe
availabletopromisequantitybecomesnegative.
FALSE
Productionisplannedtobecompleteintheperiodinwhichtheprojectedonhandbecomes
negative.
Blooms:Understand
Difficulty:Hard
27.Whichofthefollowingbestdescribesaggregateplanning?
A.thelinkbetweenintermediatetermplanningandshorttermoperatingdecisions
B.acollectionofobjectiveplanningtools
C.makeorbuydecisions
D.anattempttorespondtopredicteddemandwithintheconstraintssetbyproduct,processand
locationdecisions
E.manpowerplanning
Aworkablebalancebetweendemandandtheseconstraintsissought.
Blooms:Remember
Difficulty:Easy
28.Accommodatingpeakdemandsandeffectivelyusinglaborresourcesduringperiodsoflow
demandwouldbethegoalofaggregateplannersin
A.Manufacturing
B.Military
C.Archeology
D.Libraries
E.FinancialServices
Thesearetheconsiderationsinaggregateplanningforservicefirms.
Blooms:Remember
Difficulty:Hard
TopicArea:AggregatePlanninginServices
29.Aggregateplanningiscapacityplanningfor:
A.thelongrange
B.theintermediaterange
C.theshortrange
D.typicallyonetothreemonths
E.typicallyoneormoreyears
Theintermediaterangetypicallyrunsfromtwoto12months.
Blooms:Remember
Difficulty:Easy
30.Oneareatowhichaggregateplanningdecisionsrelateis:
A.jobsequencing
B.customerorderquantities
C.inventorylevels
D.location
E.layout
Differentaggregateplanningstrategiesaffectinventorylevelsdifferently.
Blooms:Remember
Difficulty:Hard
31.Whichofthefollowingisaninputtoaggregateplanning?
A.beginninginventory
B.forecastsforeachperiodoftheschedule
C.customerorders
D.alloftheabove
E.quantitydiscounts
Allexceptquantitydiscountsareaggregateplanninginputs.
Blooms:Remember
Difficulty:Medium
theycanuse.
32.Essentially,theoutputofaggregateplanningisthe:
A.marketingplan
B.productionplan
C.roughcutcapacityplan
D.assignmentplan
E.materialrequirementsplan
Theproductionplanlargelyresultsfromtheaggregateplanningeffort.
Blooms:Remember
Difficulty:Hard
33.Indoing"aggregateplanning"forafirmproducingpaint,theaggregateplannerswouldmost
likelydealwith:
A.justgallonsofpaint,withoutconcernforthedifferentcolorsandsizes
B.gallonsofpaint,butbeconcernedwiththedifferentcolorstobeproduced
C.gallons,quarts,pints,andallthedifferentsizestobeproduced
D.allthedifferentsizesandallthedifferentcolorsbysize
E.noneoftheabove
Theprincipleofaggregationisreflectedinthisanswer.
Blooms:Remember
Difficulty:Medium
theycanuse.
34.Aggregateplanningrequireswhichofthefollowinginformation?
A.aforecastofexpecteddemand
B.currentlevelsofinventory
C.(a)and(b)
D.policiesregardingemploymentlevels
E.alloftheabove
Alloftheseareinputsintotheaggregateplanningprocess.
Blooms:Remember
Difficulty:Medium
theycanuse.
35.Aggregateplannersattempttobalance:
A.demandandinventories
B.demandandcosts
C.capacityandinventories
D.capacityandcosts
E.capacityanddemand
Capacityanddemandareroughlybalancedinaggregateplanning.
Blooms:Remember
Difficulty:Easy
36.Whichofthefollowingisnotaninputtotheaggregateplanningprocess?
A.resourcesavailable
B.demandforecast
C.policiesonworkforcechanges
D.masterproductionschedules
E.costinformation
Themasterproductionscheduleisanoutputoftheaggregateplanningprocess.
Blooms:Remember
Difficulty:Hard
theycanuse.
37.Whichoneofthefollowingwouldnotbeconsideredadecisionoptionforpurposesof
aggregateplanning?
A.inventorylevels
B.manpowerlevels
C.pricing
D.productioncosts
E.promotion
Productioncostswouldbeacriticalvariable,buttheywouldnotbeadecisionvariable.
Blooms:Remember
Difficulty:Hard
theycanuse.
38.Whichofthefollowingisnotabasicoptionforalteringtheavailabilityofcapacityina
serviceenvironment?
A.overtime
B.hiring/layoff
C.parttime
D.inventory
E.Allofthesearebasiccapacityoptions.
Inventoryistypicallynotanoptioninservices.
Blooms:Understand
Difficulty:Medium
theycanuse.
39.Whichoneofthefollowingisnotabasicoptionforalteringdemand?
A.promotion
B.backordering
C.pricing
D.subcontracting
E.Allaredemandoptions.
Subcontractingisanoptionforalteringcapacity.
Blooms:Remember
Difficulty:Medium
theycanuse.
40.Oneoptionforalteringthepatternofdemandis:
A.backorders
B.overtime
C.parttimeworkers
D.inventories
E.subcontracting
Backorderingshiftsdemandtolatertimeperiods.
Blooms:Remember
Difficulty:Medium
theycanuse.
41.Whichofthefollowingwouldnotbeastrategyassociatedwithadjustingaggregatecapacity
tomeetexpecteddemand?
A.subcontract
B.varythesizeoftheworkforce
C.varytheintensityofworkforceutilization
D.allowinventorylevelstovary
E.usebackorders
Backordersdonotinvolveadjustingcapacity.
Blooms:Remember
Difficulty:Medium
theycanuse.
42.Oneoptionforalteringtheavailabilityofmanufacturingcapacityis:
A.pricing
B.promotion
C.backorders
D.inventories
E.noneoftheaboveapplytomanufacturingcapacity
Inventoryinvolvesusingcapacityfromearlierperiodstosatisfydemandinlaterperiods.
Blooms:Understand
Difficulty:Medium
theycanuse.
43.Oneoptionforalteringtheavailabilityofcapacityis:
A.useofovertimeorslacktime
B.pricing
C.promotion
D.backorders
E.noneoftheabove
Overtimeorslacktimealterstheavailabilityofcapacity.
Blooms:Remember
Difficulty:Medium
theycanuse.
44.Inordertousethe"levelcapacitystrategy,"variationsindemandaremetby:
A.varyingoutputduringregulartimewithoutchangingemploymentlevels
B.varyingoutputduringregulartimebychangingemploymentlevels
C.(a)and(b)
D.usingcombinationofinventories,overtime,parttime,andbackorders
E.priceadjustments
Acombinationofinventories,overtime,parttime,andbackordersisthelevelstrategy.
Blooms:Remember
Difficulty:Medium
theycanuse.
45.Inusingthe"chasestrategy"variationsindemandcouldbemetby:
A.varyingoutputduringregulartimewithoutchangingemploymentlevels
B.varyingoutputduringregulartimebychangingemploymentlevels
C.(a)and(b)
D.varyinginventorylevels
E.priceincreases
Changingemploymentlevelstovaryoutputisrepresentativeofachasestrategy.
Blooms:Remember
Difficulty:Medium
theycanuse.
46.Uncommittedinventoryiscalled
A.Availabletopromiseinventory
B.Freeinventory
C.Safetystock
D.Leadtimeinventory
E.Obsoleteinventory
Uncommittedinventoryisavailabletopromise.
Blooms:Remember
Difficulty:Medium
47.Aggregateplannersseektomatchsupplyanddemand:
A.atminimumoverallcost
B.bystayingwithincompanypolicy
C.(a)and(b)
D.keepinginventoriesataminimum
E.alloftheabove
Aggregateplansminimizecostsbutconformtocompanypolicies.
Blooms:Remember
Difficulty:Easy
48.Inpractice,themorecommonlyusedtechniquesforaggregateplanningare:
A.mathematicaltechniques
B.informaltrialanderrortechniques
C.(a)and(b)aboutequally
D.simulationmodels
E.linearprogrammingoptimization
Trialanderrortechniquesaremorecommonlyused.
Blooms:Remember
Difficulty:Easy
49.Themaindisadvantage(s)ofinformaltechniquesusedforaggregateplanningis(are):
A.theyareexpensivetodo
B.theymaynotresultinthebestplan
C.theytakealongtimetodo
D.theyrequireuseofacomputer
E.lackofformaleducationoftheplanners
Informalsolutionsmaynotbecostlyordifficult,buttheymaybelesslikelytoofferupthebest
plan.
Blooms:Understand
Difficulty:Easy
50.InventoryinformationforfirmABC:
WhatistheexpectedinventoryattheendofApril,1999?
A.350
B.250
C.150
D.50
E.noneoftheabove
Theendinginventoryequalsthebeginningplusproductionminusexpecteddemand.
AACSB:Analytic
Blooms:Apply
Difficulty:Easy
LearningObjective:1104Prepareaggregateplansandcomputetheircosts.
51.InventoryinformationforfirmABC:
WhatwastheinventoryattheendofMarch,1999?
A.350
B.250
C.150
D.50
E.noneoftheabove
Beginninginventoryequalstheendinginventoryplusdemandminusproduction.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
52.Linearprogrammingtoproduceanaggregateplan:
A.willproducethebestplanifaccurateinputsareused
B.isthemostwidelyusedtechnique
C.(a)and(b)
D.willproduceaplanthatmaynotbethebestplan
E.requiresanexcelspreadsheet
Ifinputsarevalidandaccurate,linearprogrammingwillgiveanoptimalsolution.
Blooms:Remember
Difficulty:Hard
53.Simulationtoproduceanaggregateplan:
A.willproducethebestplan
B.isthemostwidelyusedtechnique
C.both(a)and(b)
D.willproduceaplanthatmaynotbethebestplan
E.requiresaminimumof4iterationstobeaccurate
Simulationisnotguaranteedtoproduceanoptimalplan.
Blooms:Remember
Difficulty:Hard
54.Whichtermismostcloselyassociatedwiththetermdisaggregation?
A.subcontracting
B.masterschedule
C.diversity
D.varyinginventorylevels
E.firingandlayingoff
Theaggregateplanisdisaggregatedintothemasterschedule.
Blooms:Remember
Difficulty:Medium
55.Thedirectresultofdisaggregatingtheaggregateplanisthe:
A.marketingplan
B.productionplan
C.roughcutcapacityplan
D.masterschedule
E.materialrequirementsplan
Blooms:Remember
Difficulty:Medium
56.Movingfromtheaggregateplantoamasterproductionschedulerequires:
A.roughcutcapacityplanning
B.disaggregation
C.suboptimization
D.strategyformulation
E.chasestrategies
Blooms:Remember
Difficulty:Hard
57.Thatportionofprojectedinventorywhichenablesmarketingtomakerealisticcommitments
aboutdeliverydatesfornewordersis:
A.beginninginventory
B.safetystockinventory
C.availabletopromiseinventory
D.highmargininventory
E.noneoftheabove
Availabletopromisevaluesarecalculatedtohelpmarketingmakerealisticcommitments.
Blooms:Remember
Difficulty:Easy
58.ProactiveandReactiveaggregateplanningstrategiesarebestassociatedwith:
A.InputandOutput
B.MakeandBuy
C.QuantitativeandQualitative
D.ExactandApproximate
E.DemandandCapacityoptions
Demandandcapacityarethetargetsofproactiveandreactiveaggregateplanningstrategies.
Blooms:Remember
Difficulty:Medium
theycanuse.
59.Amanagerhaspreparedaforecastofexpectedaggregatedemandforthenextsixmonths.
Developanaggregateplantomeetthisdemandgiventhisadditionalinformation:Alevel
productionrateof100unitspermonthwillbeused.Backordersareallowed,andtheyare
chargedattherateof$8perunitpermonth.Inventoryholdingcostsare$1perunitpermonthin
endinginventory.Determinethecostofthisplanifregulartimecostis$20perunitand
beginninginventoryiszero.
Theaggregateplanshouldlooklikethis:
Withcostsasfollows:
Totalcostofthisplanis$12,200.
Feedback:Productionremainsconstantinalevelaggregateplan.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
60.Giventheprojecteddemandsforthenextsixmonths,prepareanaggregateplanthatuses
inventory,regulartimeandovertime,andbackorders.Theplanmustwindupwithnounitsin
endinginventoryinPeriod6.Regulartimecapacityis150unitspermonth.Overtimecapacityis
20unitspermonth.Overtimecostis$30perunit,backordercostis$20perunit,inventory
holdingcostis$5perunit,regulartimecostof$20perunit,andbeginninginventoryiszero.
Theaggregateplanshouldlooklikethis:
Withcostsasfollows:
Totalcostofthisplanis$20,200.
Feedback:Overtimeandbackorderingareusedtoworkarounddemandcapacityimbalancesin
thisscenario.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
61.Useeitherthetransportationmethodorlinearprogrammingtodevelopanoptimum
aggregateplan,giventhefollowingdata:
Theoptimumaggregateplanforthisscenarioisasfollows:
Thetotalcostforthisplanis$5,320
Feedback:Thisisanoptimalsolutionfoundthroughlinearprogramming.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
62.Prepareamasterschedulebasedonthefollowinginformation:
Currentlythereare145unitsininventory.Policycallsforafixedorderquantityof250units.
Feedback:Thereareunitsavailabletopromiseinseveraltimeperiods.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
StevensonChapter11
63.Whatistotalforecasteddemand?
1,800units
Feedback:Simplyaddupdemandforecastsacrossthesixperiods.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
64.Whatistotalregulartimecapacity?
1,680units
Feedback:Multiplytheperperiodregulartimecapacity(280)bysix.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
StevensonChapter11
65.Howshouldovertimecapacitybeutilized?
40unitseachinperiods3,4,and5
Feedback:Thisrepresentsthebestuseofovertimecapacity.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
66.Whataretotalregulartimecosts?
$33,600
Feedback:Multiplyunitsproducedonregulartimebytheirregulartimecost.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
67.Whataretotalovertimecosts?
$3,600
Feedback:Multiplytheunitsproducedonovertimebytheirperunitovertimecost.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
68.Whataretotalcarryingcosts?
$520
Feedback:Foreveryunitininventoryattheendofaperiod,multiplybytheperunitperperiod
holdingcost.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
69.Whataretotalbackordercosts?
$400
Feedback:Foreveryunitbackordered,multiplybytheperunitbackordercost.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
70.Whataretotalcostsforeachperiod?
$5,680;$5,760;$6,980;$6,900;$7,200;$5,600
Feedback:Useappropriatecoststocalculatethesetotals.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
71.Whataretotalcostsforthesixperiods?
$38,120
Feedback:Useappropriatecoststocalculatethesetotals.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
Afirmhas43unitsofacertainproductonhand.Forecastsforthefirsttwoplanningperiodsare
20unitseach.Aproductionquantityof80unitsisplannedtobeavailableinperiod3.Customer
ordersare22forperiod1and17forperiod2.
StevensonChapter11
72.Whatistheprojectedonhandinventoryattheendofperiod2?
A.21
B.1
C.12
D.20
E.impossibletosaywithoutmoreinformation
ThePOHatendofperiod1is21.Subtractfromthistheforecasteddemandforperiod2.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
73.Whatquantityisavailableforcommitmenttonewcustomersineitherofthefirsttwo
periods?
A.21
B.1
C.20
D.4
E.impossibletosaywithoutmoreinformation
Subtractfromthebeginningonhandinventory(43)thebookedordersuntilthethirdweek(39).
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
Afirmhas56unitsofproductXonhand.Forecastsofdemandarefor20unitsperweek.An
MPSquantityof100unitsisplannedtoarriveinperiod3.Customerordersare24forperiod1,
18forperiod2,and15forperiod3.
StevensonChapter11
74.Whatistheprojectedonhandinventoryattheendofperiod2?
A.14
B.32
C.12
D.20
E.impossibletosaywithoutadditionalinformation
Subtracttheweek2forecast(20)fromtheweek1projectedendingonhand(32).
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
75.WhatquantityisavailableforcommitmenttonewcustomerspriortothereceiptoftheMPS
quantityinweek3?
A.14
B.32
C.12
D.20
E.impossibletosaywithoutadditionalinformation.
Thereare56unitsinbeginninginventory,andbookedordersfor42unitsuntilthenextMPS
quantityreceipt.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
76.Whentheopportunitycostoflostrevenueisrelativelyhigh,_________become(s)relatively
moreattractive.
A.Layoffs
B.Backorders
C.Excesscapacity
D.Disaggregation
E.BothBandC
Theexcesscapacitycostsdiminishinrelationtothepotentiallostrevenue.
Blooms:Understand
Difficulty:Medium
theycanuse.
77.Themore__________demandis,themoretheaggregateplanwilltendtoreflectthe
____________strategy.
A.Stable;Level
B.Aggregated;Outsourcing
C.Variable;Chase
D.Complex;Uncommitted
E.BothAandC
Thesepurestrategiesreflectparticularunderlyingdemandpatterns.
Blooms:Understand
Difficulty:Medium
theycanuse.
78.Inaservicesetting,theaggregateplanresultsinatimephasedprojectionof__________
requirements.
A.customer
B.staff
C.inventory
D.subcontracting
E.outsourcing
Staffrequirementsarethefocusofaggregateplanninginservices.
Blooms:Remember
Difficulty:Medium
79.Whichofthefollowingdiffersbetweenaggregateplanninginservicesandaggregate
planninginmanufacturing?
A.uncertaintyindemand
B.costsofstoringinventory
C.theperishabilityofcapacity
D.costofovertime
E.costofhiring
Capacityisinherentlyperishableinservices.
Blooms:Understand
Difficulty:Medium
80.AtXYZCorp.,theaggregateplanningunitreflectsthefactthat50%ofitsoutputisproduct
versionA,30%isversionB,and20%isversionC.Supposethatoverthecomingyear
forecastedtotaldemand(inplanningunits)isfor10,400units.Oncetheproductionplanis
disaggregated,whatwilltheweeklyforecastforversionAbe(assume52weeksperyear)?
A.1000
B.200
C.400
D.100
E.50
Divide5,200(annualdemand)by52weeks.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
81.Amasterproductionschedulequantityof300unitswillarriveinweek6.Weeklydemand
overweeks3through10isforecastedat50units.Atpresent,ordershavebeenbookedinvarious
quantitiesinweeks1,2,3and4.Whatistheavailabletopromiseforweek6?
A.50
B.6
C.300
D.100
E.Cannotbedeterminedwithoutprojectedonhandinformation
Noordersarebookedafterweek4,soall300unitsarrivinginweek6areavailabletopromisein
week6.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
82.Whichofthefollowingstepsisnecessarytoensurethatamasterscheduleisvalid?
A.workerscheduling
B.orderpromising
C.inventorycounting
D.orderbooking
E.roughcutcapacityplanning
Roughcutcapacityplanninginsuresthatthemasterscheduleisreasonablyfeasible.
Blooms:Remember
Difficulty:Medium
ch12Key
1.MRPworksbestiftheinventoryitemshavedependentdemand.
TRUE
MRPisbestfordependentdemandscenarios.
Blooms:Understand
Difficulty:Easy
LearningObjective:1201DescribetheconditionsunderwhichMRPismostappropriate.
TopicArea:AnOverviewofMRP
2.Lowlevelcodingrepresentsitemslessthan$18perunit.
FALSE
LowlevelcodingcodesitemsattheirlowestBOMlevels.
Blooms:Remember
Difficulty:Easy
LearningObjective:1202Describetheinputs;outputs;andnatureofMRPprocessing.
TopicArea:MRPInputs
3.Independentdemandtendstobemore'lumpy'thandependentdemandmeaningthatweneed
largequantitiesfollowedbyperiodsofnodemand.
FALSE
Dependentdemandismorelumpy.
Blooms:Remember
Difficulty:Medium
4.Lumpydemandforcomponentsresultsprimarilyfromtheperiodicschedulingofbatch
production.
TRUE
Batchproductionleadstolumpydemandforcomponents.
Blooms:Remember
Difficulty:Easy
5.MRPisusedwithinmostMRPIIandERPsystems.
TRUE
MRPIIandERPsystemsincorporateMRP.
Blooms:Remember
Difficulty:Easy
LearningObjective:1205ExplainhowanMRPsystemisusefulincapacityrequirementsplanning.
TopicArea:MRPII
6.Themasterproductionschedulestateswhichenditemsaretobeproduced,inadditiontowhen
andhowmany.
TRUE
ThesearecriticalinputsintoMRP.
Blooms:Remember
Difficulty:Easy
LearningObjective:1203Explainhowrequirementsinamasterproductionschedulearetranslatedintomaterialrequirementsforlowerlevel
items.
TopicArea:MRPInputs
7.Netrequirementsequalgrossrequirementsminussafetystock.
FALSE
Ifsafetystockisrequired,netrequirementswillbehigher.
Blooms:Remember
Difficulty:Easy
items.
TopicArea:MRPProcessing
8.Themasterscheduleneedstobeforaperiodlongenoughtocoverthestackedorcumulative
leadtimenecessarytoproducetheenditems.
TRUE
Thisensuresthatmaterialsplanscanbeadequatelyformulated.
Blooms:Remember
Difficulty:Easy
items.
TopicArea:MRPInputs
9.Initially,amasterproductionscheduletheoutputfromMRPmaynotrepresentafeasible
schedule.
TRUE
Managementmustmakemoredetailedcapacityrequirementsplanningtodeterminewhether
thesemorespecificcapacityrequirementscanbemetandsomeadjustmentsinthemaster
productionschedulemayberequired.
Blooms:Remember
Difficulty:Medium
LearningObjective:1207DescribeMRPIIanditsbenefits.
TopicArea:MRPII
10.MRP,consideringinventoryposition,billsofmaterial,openpurchaseordersandleadtimes
guaranteesafeasibleproductionplaniftheinputstoMRPareaccurate.
FALSE
MRPmayleadtoaninfeasibleproductionplanifcapacityrequirementsarenotconsidered.
Blooms:Remember
Difficulty:Hard
TopicArea:MRPII
11.Thebillofmaterialsindicateshowmuchmaterialwillbeneededtoproducethequantitieson
agivenmasterproductionschedule.
FALSE
Thebillofmaterialsindicateshowmuchmaterialwillbeneededtoproduceoneunitoftheitem
inquestion.
Blooms:Remember
Difficulty:Hard
TopicArea:MRPInputs
12.Abillofmaterialscontainsalistingofalltheassemblies,parts,andmaterialsneededto
produceoneunitofanenditem.
TRUE
Thebillofmaterialsindicateshowmuchmaterialwillbeneededtoproduceoneunitoftheitem
inquestion.
Blooms:Remember
Difficulty:Easy
TopicArea:MRPInputs
13.Thebillofmaterialscontainsinformationonleadtimesandcurrentinventorypositionon
everycomponentrequiredtoproducetheenditem.
FALSE
Inventoryrecordscontainthisinformation.
Blooms:Remember
Difficulty:Medium
TopicArea:MRPInputs
14.Theinventoryrecordscontaininformationonthestatusofeachitembytimeperiod.
TRUE
Inventoryrecordsalsocontaininformationonleadtimesandcurrentinventoryposition.
Blooms:Remember
Difficulty:Easy
TopicArea:MRPInputs
15.Anassemblytimechartindicatesgrossandnetrequirementstakingintoaccountthecurrent
availableinventory.
FALSE
Assemblytimechartshavetodowithcapacity,notinventory.
Blooms:Remember
Difficulty:Medium
TopicArea:MRPII
16.MRPIIdidnotreplaceorimprovethebasicMRP.
TRUE
MRPIIincorporatesbasicMRP.
Blooms:Remember
Difficulty:Medium
TopicArea:MRPII
17.ThegrossrequirementsatonelevelofanMRPplandeterminethegrossrequirementsatthe
nextlowerlevelcontinuingondowntothelowestlevelsshownonthebillofmaterial.
FALSE
Releasedorderquantitiesatoneleveldeterminegrossrequirementsatthenextlowerlevel.
Blooms:Understand
Difficulty:Hard
items.
18.Thegrossrequirementsvalueforanygivencomponentisequaltothenetrequirementsof
thatcomponent'simmediateparentmultipliedbythequantityperparent.
FALSE
Releasedorderquantitiesfortheparentleadtogrossrequirementsofthechild.
Blooms:Remember
Difficulty:Hard
19.Thetermpeggingreferstoidentifyingtheparentitemsthathavegeneratedagivensetof
materialrequirementsforapartorsubassembly.
TRUE
Peggingtiesitemstotheirparents.
Blooms:Remember
Difficulty:Medium
items.
20.AnetchangeMRPsystemisonethatisupdatedperiodicallybutnotlessfrequentlythan
onceaweek.
FALSE
Anetchangesystemisupdatedastransactionsoccur.
Blooms:Remember
Difficulty:Hard
21.Onereasonthataccuratebillsofmaterialareimportantisthaterrorsatonelevelbecome
magnifiedatlowerlevelsbecauseofthemultiplicationprocessusedbyMRP.
TRUE
Smallhigherlevelerrorscanbemagnifiedintolargerlowerlevelerrors.
Blooms:Remember
Difficulty:Medium
LearningObjective:1206OutlinethepotentialbenefitsandsomeofthedifficultiesusershaveencounteredwithMRP.
TopicArea:BenefitsandRequirementsofMRP
22.AregenerativeMRPsystemisonethatisupdatedcontinuouslyeverytimethereisa
schedulechange.
FALSE
Regenerativesystemsareupdatedperiodically.
Blooms:Remember
Difficulty:Hard
23.OneoftheprimaryoutputreportsofMRPconcernschangestoplannedorders.
TRUE
ChangestoplannedorderscanbeoutputsfromMRPsystems.
Blooms:Remember
Difficulty:Medium
TopicArea:MRPOutputs
24.SafetytimeissometimesusedinMRPratherthansafetystockquantities.
TRUE
Safetytimeisasubstituteforsafetystock.
Blooms:Remember
Difficulty:Medium
TopicArea:OtherConsiderations
25.LotforlotorderinginMRPprovidescoverageforsomepredeterminednumberofperiods
usingforecasteddemandtoextendbeyondtheordersalreadyreceivedforthoseperiods.
FALSE
Thisisfixedperiodordering.
Blooms:Remember
Difficulty:Medium
items.
26.MRPoutputreportsaredividedintotwomaingroupsdailyandweekly.
FALSE
Thetwogroupsareprimaryandsecondary.
Blooms:Remember
Difficulty:Easy
27.InMRP,EOQmodelstendtobelessusefulformaterialsatthelowestlevelsthanforupper
levelassembliesofthebillofmaterialssincehigherlevelassemblieshavelargerdollar
investments.
FALSE
EOQismoreusefulatlowerlevelssincelowerlevelitemsoftenhavelesslumpydemand.
Blooms:Remember
Difficulty:Hard
28.Loadreportsshowcapacityrequirementsfordepartmentsorworkcenterswhichmaybe
moreorlessthanthecapacityavailableinthatworkcenter.
TRUE
Loadreportsfacilitatetheformulationoffeasibleproductionschedules.
Blooms:Remember
Difficulty:Hard
TopicArea:MRPII
29.ERPbeganinmanufacturingorganizationsbuthasspreadintoserviceorganizations.
TRUE
OvertimeERPhasspreadintoawidevarietyoforganizations.
Blooms:Remember
Difficulty:Easy
LearningObjective:1208DescribeERP;whatitprovides;anditshiddencosts.
TopicArea:ERP
30.MRPIIissimplyanimprovedversionofMRPthatprocessesfasterandcanplanforalarger
numberofenditems.
FALSE
MRPIItakesintoaccountcapacityrequirements.
Blooms:Remember
Difficulty:Hard
TopicArea:MRPII
31.LotforlotorderinginMRPeliminatestheholdingcostsforpartsthatarecarriedoverto
otherperiods.
TRUE
Lotforlotorderingminimizesholdingcosts.
Blooms:Remember
Difficulty:Medium
items.
32.Capacityrequirementsplanning(CRP)isanimportantfeatureinMRP+.
FALSE
CRPisafeatureofMRPII.
Blooms:Remember
Difficulty:Medium
33.ProjectManagementapproachescanhelpinaconversiontoanERPsystem.
TRUE
ERPconversionscanbecomplexprojects.
Blooms:Remember
Difficulty:Easy
TopicArea:CapacityRequirementsPlanning
34.Aslongasaforecastisplusorminus10%,MRPworkswell.
FALSE
MRPneedsaccurateforecasts.
Blooms:Remember
Difficulty:Medium
35.ERPrepresentsanexpandedefforttointegratestandardizedrecordkeepingthatshares
informationamongdifferentareasofanorganization.
TRUE
ERPisintendedtofacilitateconsistentdecisionmakingacrosstheorganization.
Blooms:Remember
Difficulty:Easy
TopicArea:ERP
36.Backflushingtakesplaceaftertheproductionhasbeencompleted.
TRUE
Recordsareupdatedbasedonenditemproduction.
Blooms:Remember
Difficulty:Easy
37.Beforeaschedulereceiptcantakeplace,andordermustbeplacedwithavendor.
TRUE
Ascheduledreceiptisanorderthathasalreadybeenplaced.
Blooms:Remember
Difficulty:Easy
items.
38.MRPreallydoesn'tapplytoservicessincerawmaterialisn'trequired.
FALSE
MRPcanbeusedinservices.
Blooms:Remember
Difficulty:Easy
LearningObjective:1204DiscussthebenefitsandrequirementsofMRP.
TopicArea:MRPinServices
39.ERPimplementationrequiressupportandadirectmandatefromtheCEObecauseitimpacts
somanydifferentfunctionalareas.
TRUE
ERPimplementationisanorganizationwideinitiative.
Blooms:Remember
Difficulty:Medium
TopicArea:ERP
40.ERPautomatesthetasksinvolvedinperformingabusinessprocess,suchasorderfulfillment
andfinancialreporting.
TRUE
ERPextendsbeyondpurchasingandmaterialsmanagement.
Blooms:Remember
Difficulty:Medium
TopicArea:ERP
41.Whichofthefollowingmostcloselydescribesdependentdemand?
A.demandgeneratedbysuppliers
B.estimatesofdemandusingregressionanalysisofindependentvariables
C.deriveddemand
D.demandsplacedonsuppliersbytheircustomers
E.netmaterialrequirements
Dependentdemandresultsfromdecisionstoproduceparentitems.
Blooms:Remember
Difficulty:Easy
TopicArea:AnOverviewofMRP
42.ERPimplementationprobablywon'trequire:
A.crossfunctionalteams
B.justafewweekstoinstall
C.intensivetraining
D.highfundingforbothinitialcostandmaintenance
E.frequentupgradesafterinstallation
ERPimplementationcantakeyears.
Blooms:Remember
Difficulty:Hard
TopicArea:ERP
43.Acomputerbasedinformationsystemdesignedtohandleorderingandschedulingof
dependentdemandinventoriesis:
A.computeraidedmanufacturing(CAM)
B.computerintegratedmanufacturing(CIM)
C.economicorderquantity(EOQ)
D.materialrequirementsplanning(MRP)
E.economicrunsize(ERS)
MRPistargetedtowarddependentdemandinventories.
Blooms:Remember
Difficulty:Easy
44.ThedevelopmentandapplicationofMRPdependedupontwodevelopments:(1)the
recognitionofthedifferencebetweenindependentanddependentdemand,and(2):
A.computers
B.developmentoftheEOQmodel
C.inventorycontrolsystems
D.blanketpurchaseorders
E.theinternet
ComputertechnologymadeMRPfeasible.
Blooms:Remember
Difficulty:Medium
45.TheoutputofMRPis:
A.grossrequirements
B.netrequirements
C.ascheduleofrequirementsforallpartsandenditems
D.inventoryreorderpoints
E.economicorderquantitiesandreorderpoints
MRPschedulespartandenditemrequirements.
Blooms:Remember
Difficulty:Easy
46.WhichoneofthefollowingisnotaninputinanMRPsystem?
A.plannedorderschedules
B.billofmaterials
C.masterproductionschedule
D.inventoryrecords
E.Allareinputs.
PlannedorderschedulesareoutputsfromMRP.
Blooms:Remember
Difficulty:Easy
TopicArea:MRPInputs
47.TheMRPinputstatingwhichenditemsaretobeproduced,whentheyareneeded,andwhat
quantitiesareneeded,isthe:
A.masterschedule
B.billofmaterials
C.inventoryrecords
D.assemblytimechart
E.netrequirementschart
Thisisthemasterschedule.
Blooms:Remember
Difficulty:Easy
TopicArea:MRPInputs
48.InanMRPmasterschedule,theplanninghorizonisoftenseparatedintoaseriesoftimes
periodscalled:
A.pegging
B.leadtimes
C.stackedleadtimes
D.timebuckets
E.firm,fixedandfrozen
Timebucketsarediscretetimeperiods.
Blooms:Remember
Difficulty:Medium
items.
TopicArea:MRPInputs
49.TheMRPinputlistingtheassemblies,subassemblies,parts,andrawmaterialsneededto
produceoneunitoffinishedproductisthe:
A.masterproductionschedule
B.billofmaterials
C.inventoryrecords
D.assemblytimechart
Thisisthebillofmaterials.
Blooms:Remember
Difficulty:Easy
TopicArea:MRPInputs
50.Avisualdepictionofthesubassembliesandcomponentsthatareneededtoproduceand/or
assembleaproductiscalleda(n):
A.assemblytimechart
B.productstructuretree
C.MRPII
D.pegging
E.Ganttchart
Thisisaproductstructuretree.
Blooms:Remember
Difficulty:Medium
TopicArea:MRPInputs
51.TheMRPinputstoringinformationonthestatusofeachitembytimeperiod(e.g.,scheduled
receipts,leadtime,lotsize)isthe:
A.masterproductionschedule
B.billofmaterials
C.inventoryrecords
D.assemblytimechart
Inventoryrecordscontainthisinformation.
Blooms:Remember
Difficulty:Easy
TopicArea:MRPInputs
52.Whichoneofthefollowingmostcloselydescribesnetmaterialrequirements?
A.grossrequirementsamountonhandscheduledreceipts
B.grossrequirementsplannedreceipts
C.grossrequirementsorderreleases+amountonhand
D.grossrequirementsplannedorderreleases
E.grossrequirementsamountonhand+plannedorderreleases
Onhandandscheduledreceiptsmustbesubtractedfromgrossrequirements.
Blooms:Remember
Difficulty:Medium
items.
53.InMRP,"scheduledreceipts"are:
A.identicalto"plannedorderreceipts"
B.identicalto"plannedorderreleases"
C.openorders(thatis,orderedbeforethefirsttimebucket,butnotdeliveredyet)
D."netrequirements"
E.availabletopromiseinventory
Scheduledreceiptsareordersthathavealreadybeenplaced.
Blooms:Remember
Difficulty:Medium
TopicArea:MRPInputs
54.InMRP,underlotforlotordering,"plannedorderreceipts"are:
A.identicalto"scheduledreceipts"
B.identicalto"plannedorderreleases"
C.openorders(thatis,orderedbeforethefirsttimebucket,butnotdeliveredyet)
D."grossrequirements"
E.availabletopromiseinventory
Plannedreceiptswouldbeequaltoplannedreleasesunderanylotsizingrule.
Blooms:Remember
Difficulty:Medium
55.Underlotforlot,ordersizesforcomponentpartsareessentiallydetermineddirectlyfrom
whichoneofthefollowing?
A.grossrequirements
B.netrequirements
C.economicorderquantity
D.grossrequirementsnetrequirements
E.netrequirementsamountonhand
Netrequirementswouldexactlyequalplannedreleases.
Blooms:Remember
Difficulty:Medium
items.
56.InMRP,thegrossrequirementsofagivencomponentpartarecalculatedfrom:
A.netrequirements+amountonhand.
B.grossrequirementsoftheimmediateparent.
C.plannedordersoftheenditem.
D.netrequirementsofenditem.
E.plannedordersoftheimmediateparent.
Plannedordersforparentsdrivegrossrequirementsforchildren.
Blooms:Remember
Difficulty:Medium
items.
57.Theidentificationofparentitemsiscalled:
A.Paternity
B.Pegging
C.RequirementI.D.
D.Relationshiptracking
E.MasterScheduling
Pegginglinkschildrentoparents.
Blooms:Remember
Difficulty:Medium
58.PeriodicupdatingofanMRPsystemtoaccountforallchangeswhichhaveoccurredwithina
giventimeintervaliscalled:
A.pegging
B.plannedorderrelease
C.netchange
D.regenerative
E.exceptionreport
Regenerativesystemsareupdatedperiodically.
Blooms:Remember
Difficulty:Hard
items.
59.AnMRPsystemwhoserecordsareupdatedcontinuouslyisreferredtoasa(n):
A.regenerativesystem
B.batchtypesystem
C.PlosslWrightsystem
D.netchangesystem
E.grosschangesystem
Netchangesystemsareupdatedastransactionsoccur.
Blooms:Remember
Difficulty:Hard
items.
60.Whichistrueofanetchangesystem?
A.Itisabatchtypesystemwhichisupdatedperiodically.
B.Itisusuallyrunatthebeginningofeachmonth.
C.Thebasicproductionplanismodifiedtoreflectchangesastheyoccur.
D.Itisusedtoauthorizetheexecutionofplannedorders.
E.Itindicatestheamountandtimingoffuturechanges.
Netchangesystemsareupdatedastransactionsoccur.
Blooms:Remember
Difficulty:Hard
items.
61.WhichoneofthefollowingmostcloselydescribestheMRPapproachthatisusedfor
componentsorsubassembliestocompensateforvariationsinleadtime?
A.pegging
B.safetystock
C.increasedordersizes
D.safetytime
E.lowlevelcoding
Safetytimeprovidesprotectionagainsttheeffectsofleadtimevariation.
Blooms:Remember
Difficulty:Hard
62.Whichofthefollowinglotsizingmethodsdoesnotattempttobalanceordering(orsetup)
andholdingcosts?
A.economicorderquantity
B.economicrunsize
C.lotforlot
D.partperiod
E.alloftheabove
Lotforlotdoesnotattempttobalancethesecosts.
Blooms:Remember
Difficulty:Hard
63.WhenMRPIIsystemsincludefeedback,theyareknownas:
A.MRPIII
B.Enterpriseresourceplanning
C.CircularMRP
D.FeasibleMRP
E.ClosedLoopMRP
Thefeedbackhastodowithcapacity.
Blooms:Remember
Difficulty:Hard
TopicArea:MRPII
64.ThemultiplicationprocessusedbyMRPtodeterminelowerlevelrequirementsiscalled:
A.timephasing
B.pegging
C.netting
D.projecting
E.exploding
Billsofmaterialareexplodedintogrossrequirementsforlowerlevelitems.
Blooms:Remember
Difficulty:Medium
items.
65._______ischoosinghowmanytoorderormake.
A.Quantitydetermination
B.Packagesizing
C.Lotsizing
D.Grouping
E.Aggregation
Lotsizingsetstheorderorbatchquantity.
Blooms:Remember
Difficulty:Medium
66.WhichofthefollowingisnotusuallynecessaryinordertohaveaneffectiveMRPsystem?
A.acomputerandsoftware
B.anaccuratebillofmaterials
C.lotforlotordering
D.anuptodatemasterschedule
E.integrityoffiledata
MRPdoesnotdependonlotforlotordering.
Blooms:Remember
Difficulty:Medium
67.The_________ofERPmakesitvaluableasastrategicplanningtool.
A.Internetbase
B.RapidBatchcapability
C.Employeefocus
D.Realtimeaspect
E.Databasestructure
ERPprovidesrealtime,consistentguidancetodecisionmaking.
Blooms:Remember
Difficulty:Hard
TopicArea:ERP
68.Arecentefforttoexpandthescopeofproductionresourceplanningbyinvolvingother
functionalareasintheplanningprocesshasbeen:
A.materialrequirementsplanning
B.capacityrequirementsplanning
C.manufacturingresourcesplanning
D.JustInTimeplanning
E.multifunctionalrelationshipsplanning
MRPIIbringsotherfunctionalareasintotheplanningprocess.
Blooms:Remember
Difficulty:Easy
TopicArea:MRPII
69.WhichstatementconcerningMRPIIisfalse?
A.Itisbasicallyacomputerizedsystem.
B.Itcanhandlecomplexplanningandschedulingquickly.
C.Itinvolvesotherfunctionalareasintheproductionplanningprocess.
D.Itinvolvescapacityplanning.
E.Itproducesaproductionplanwhichincludesallresourcesrequired.
MRPIIdoesn'tnecessarilyconsiderallproductionresources.
Blooms:Remember
Difficulty:Medium
TopicArea:MRPII
70.Whichoftheseitemswouldbemostlikelytohavedependentdemand?
A.Xboxbatteries
B.toytrains
C.flowers
D.chocolatechipcookies
E.wristwatches
XboxbatterieswouldonlybeneededifXboxconsoleswerebeingproduced.
Blooms:Remember
Difficulty:Medium
71.Whichoftheseproductswouldbemostlikelytohavedependentdemand?
A.refrigerators
B.automobileengines
C.televisions
D.brownies
E.automobiles
Engineswouldonlybenecessarywhenautomobileswerebeingproduced.
Blooms:Remember
Difficulty:Medium
72.Usingtheproducttreeshown,determinethefollowing:
(A)thequantityofcomponentKthatwillbeneededtoassemble80unitsofP,assumingnoon
handinventoryofanycomponentsexists.
(B)thequantityofcomponentKneededtoassemble80unitsofP,givenonhandinventoryof
30A's,50B'sand20C's.
A)[3KsperCx2CsperAx2AsperP]+[2KsperBx5BsperP]+[3KsperCx3Csper
P]=31KsperP.For80Ps,atotalof2,480Kswillbeneeded.
B)With30As,50Bsand20Csonhand,Krequirementsare:
[3KsperCx2CsperAx(2AsperP30As)]+[2KsperBx(5BsperP50Bs)]+[3Ks
perCx(3CsperP20Cs)];for80Ps,atotalof2,140Kswillbeneeded.
Feedback:Explodethebillofmaterial.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
items.
73.ThefollowingisalistofcomponentsrequiredtoproduceoneunitofenditemP:
P:2A's,3B's,3C's
A:5M's,2R's
B:1D,3N's.
C:1T,4N's
M:1N
DeterminethenumberofN'sthatwillbeneededtomake60P'sineachofthesecases:
(A)Therearecurrently10P'sonhand.
(B)Onhandinventoryconsistsof15P's,10A's,20B's,10C's,100N's,300T's,and200M's.
Theproductstructuretree:
A)[1NperMx5MperAx2AperP]+[3NperBx3BperP]+[4NperCx3CperP]=31
NperP.For60P,Nrequirementsare:[31NperPx(60P10OH)]=1,500N.
B)Atotalof945Nswillbeneeded.
Feedback:Explodethebillofmaterial.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
items.
74.Giventhefollowinginformation,constructaproducttreediagramanddevelopamaterial
requirementsplanthatwillleadto400unitsofproductPbeingavailableatthestartofweek7.
Feedback:ItemsCandDmustbeplannedlast.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
items.
75.DevelopamaterialrequirementsplanforenditemPanditscomponents,giventhetree
below.Assumethatallleadtimesareoneweek,andthatlotforlotorderingisusedexceptfor
itemF,whichisorderedinmultiplesof400units.
OnehundredunitsofPshouldbeavailableatthestartofweek4andatthestartofweek8.
Beginninginventoriesare:20P,100A,and200F.
Scheduledreceiptsare:800Fatthestartofweek1.
AllitemshavezerobalancesexceptF,whichcarries240unitsforwardfromperiod5.
Feedback:ItemFmustbeplannedlast.
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
items.
76.Giventhefollowingdata,constructamaterialrequirementsplanwhichwillresultin100
unitsofParent#1(P1)atthebeginningofweek6,and200unitsofParent#2(P2)atthe
beginningofweek8:
ItemAhasanonhandbalanceof70unitsafterweek7,ItemBhasanonhandbalanceof150
unitsafterweek7,andItemChasanonhandbalanceof1,500unitsafterweek4.
Feedback:C'sgrossrequirementscomefromplannedreleasesforAandB.
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
items.
77.EnditemAlpha'sproductstructuretreeandinventoryinformationareasfollows:
(A)If50unitsofAlphaaretobeassembled,howmanyadditionalunitsofSwillbeneeded?All
partscanbeorderedusinglotforlotordering,exceptM,whichmustbeorderedinmultiplesof
40units.[Hint:Youdon'tneedtodoanMRPplan.]
(B)Anorderfor100unitsofAlphaisscheduledtobeshippedatthestartofweek9.Whenisthe
earliestthatanyparticularcomponentmustbestartedsothattheorderforAlphawillbereadyto
ship?[Hint:Youdon'tneedtodoanMRPplan.]
A)GrossrequirementsforSare200units,leadingtonetrequirementsforSof100units.
B)AdditionalunitsofWwillhavetobestartedatthebeginningofweek1.
Feedback:If50unitsofAlphaaretobeassembled,thengrossrequirementsforKwillbe50and
grossrequirementsforMwillbe100.NetrequirementsforKwillbe20andnetrequirementsfor
Mwillbe70.Kisorderedlotforlot,soitsnetrequirementsleadtogrossrequirementsforSof
40units.Misorderedinmultiplesof40,soitsorderquantityof80unitswillleadtogross
requirementsforSof160units.
Thelongestsumofleadtimesis8(Alpha's2weeks+H's4weeks+W's2weeks).Thismeans
thatadditionalunitsofWwillhavetobestartedatthebeginningofweek1.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
items.
Refertothisproducttree:
StevensonChapter12
78.If17Psareneeded,andnoonhandinventoryexistsforanyitems,howmanyCswillbe
needed?
A.8
B.16
C.136
D.204
E.272
Explodetheseproductstructuretrees.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
items.
79.If17Psareneeded,andonhandinventoryconsistsof10As,15Bs,20Cs,12Ms,and5Ns,
howmanyCsareneeded?
A.48
B.144
C.192
D.212
E.272
FewerC'sareneededasaresultoftheseotheritemsbeingpresentinthesequantities.
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
items.
80.If40Psareneeded,andonhandinventoryconsistsof15Psand10eachofallother
componentsandsubassemblies,howmanyCsareneeded?
A.340
B.350
C.380
D.400
E.590
NetrequirementsforCreflectstheseotheritemsbeingpresentinthesequantities.
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
items.
BunnyHelpers,Inc.hasjustreceivedanorderfor100DeluxeEasterBaskets,whichmustbe
readyfordeliveryatthestartofweeksix.AnMRPplannerhaspreparedthefollowingtable
showingproductstructure,leadtimes(ordersarelotforlot),andquantitiesonhand:
EachDeluxeBasketcontainstwodarkchocolatetrufflesandfourcarvedchocolateeggs;
additionallyonebottleofAlkaSelzerisincludedforthosewhooverindulge.
StevensonChapter12
81.WhatisthenetrequirementforDarkChocolateTrufflestofillthisorder?
A.100
B.140
C.150
D.180
E.200
ExplodethebillofmaterialsanduseMRPprocessing.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
items.
82.WhenshouldanorderforCarvedChocolateEggsbereleased?
A.atthestartofweek2
B.atthestartofweek3
C.atthestartofweek4
D.atthestartofweek5
E.atthestartofweek6
ThisisoneweekbeforethefirstreceiptofCarvedChocolateEggsisrequired.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
items.
83.HowmanyDarkChocolateEggsshouldbeordered?
A.310
B.450
C.500
D.550
E.600
ThesearethenetrequirementsforDarkChocolateEggs.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
items.
84.Ifthefirmisusingafixedperiodlotsizeoftwoperiods,whatistheordersizeforthefirst
order?
A.120
B.200
C.280
D.160
E.150
Thisrepresentstwoweeksofnetrequirements.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
items.
85.Whichofthefollowingrepresentsanattempttobalancethebenefitsofstabilityagainstthe
benefitsofrespondingtonewinformation?
A.safetystock
B.safetytime
C.billsofmaterial
D.timefences
E.fixedperiodlotsizing
Timefencesattempttobalancethesetwofactors.
Blooms:Remember
Difficulty:Easy
86.Comparingknownandexpectedcapacityrequirementswithprojectedcapacityavailabilityis
thejobof_______.
A.plannedreleases
B.loadreports
C.lotsizing
D.workloading
E.timefencing
Loadreportsconveythiscomparison.
Blooms:Remember
Difficulty:Medium
87.ERP'sprimaryvaluecomesfromapplications________.
A.deployment
B.development
C.interfaces
D.integration
E.networking
IntegrationiswhereERPtrulyaddsvalue.
Blooms:Understand
Difficulty:Easy
TopicArea:ERP
88.NetrequirementsforcomponentJareasfollows:60unitsinweek2,40unitsinweek3,and
60unitsinweek5.Ifafixedperiod,twoperiodlotsizingmethodisused,whatwillbethe
quantityofthefirstplannedreceipt?
A.60units
B.120units
C.180units
D.Cannotbedetermined
E.Noneoftheabove
Thefirstplannedreceiptwillbefor100units.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
items.
89.NetrequirementsforcomponentJareasfollows:60unitsinweek2,40unitsinweek3,and
60unitsinweek5.Ifafixedperiod,threeperiodlotsizingmethodisused,whatwillbethe
quantityofthefirstplannedreceipt?
A.60
B.100
C.160
D.Cannotbedetermined
E.Noneoftheabove
Thefirstplannedreceiptwillbeforperiods2,3and4.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
items.
ch13Key
1.Oneimportantuseofinventoriesinmanufacturingistodecoupleoperationsthroughtheuseof
workinprocessinventories.
TRUE
Decouplingoperationsisanimportantuseofinventories.
Blooms:Remember
Difficulty:Medium
LearningObjective:1301Definetheterminventory;listthemajorreasonsforholdinginventories;andlistthemainrequirementsforeffective
inventorymanagement.
TopicArea:TheNatureandImportanceofInventories
2.Theobjectiveofinventorymanagementistominimizethecostofholdinginventory.
FALSE
Theobjectiveofinventorymanagementistoallowsatisfactorycustomerservicewhilekeeping
costsdown.
Blooms:Remember
Difficulty:Easy
LearningObjective:1304Explaintheobjectivesofinventorymanagement.
TopicArea:RequirementsforEffectiveInventoryManagement
3.Aretailstorethatcarriestwicetheinventoryasitscompetitorwillprovidetwicethecustomer
servicelevel.
FALSE
Thereisalimittohowhighservicelevelcango;ifthecompetitor'sservicelevelis90%,the
retailercan'tdoublethat.
Blooms:Remember
Difficulty:Medium
LearningObjective:1302Discussthenatureandimportanceofserviceinventories.
4.Theoverallobjectiveofinventorymanagementistoachievesatisfactorylevelsofcustomer
servicewhilekeepinginventorycostsreasonable.
TRUE
Thisistheoverallobjectiveofinventorymanagement.
Blooms:Remember
Difficulty:Easy
5.Thetwomainconcernsofinventorycontrolrelatetothecostsandthelevelofcustomer
service.
TRUE
Thesearetheessentialfacetsofinventorycontrol.
AACSB:Analytic
Blooms:Apply
Difficulty:Easy
6.Toprovidesatisfactorylevelsofcustomerservicewhilekeepinginventorycostswithin
reasonablebounds,twofundamentaldecisionsmustbemadeaboutinventory:thetimingand
sizeoforders.
TRUE
Thesearethefundamentaldecisionsregardinginventorycontrol.
AACSB:Analytic
Blooms:Apply
Difficulty:Easy
7.IntheEOQformula,holdingcostsunder10%areexpressedaspercentages,above10%are
expressedasannualunitcosts.
FALSE
Holdingcostsareexpressedinmonetaryterms,whetherasasetvalueorasapercentageofthe
perunitcost.
Blooms:Remember
Difficulty:Medium
LearningObjective:1306DescribethebasicEOQmodelanditsassumptionsandsolvetypicalproblems.
TopicArea:HowMuchtoOrder:EconomicOrderQuantityModels
8.DVDrecorderswouldbeanexampleofindependentdemanditems.
TRUE
ComponentsoftheDVDrecorderswouldbedependentdemanditems.
Blooms:Remember
Difficulty:Easy
9.Reorderpointmodelsareprimarilyusedfordependentdemanditems.
FALSE
Reorderpointmodelsareprimarilyusedforindependentdemanditems.
Blooms:Remember
Difficulty:Medium
LearningObjective:1309Describereorderpointmodelsandsolvetypicalproblems.
TopicArea:ReorderPointOrdering
10.Anexampleofinventoryholdingcostisthecostofmovinggoodstotemporarystorageafter
receiptfromasupplier.
FALSE
Theseareorderingcosts.
Blooms:Remember
Difficulty:Hard
11.Decouplingoperationsappliestotherailroadindustry.
FALSE
Decouplingreferstobufferingoperationsinmanufacturing.
Blooms:Remember
Difficulty:Easy
12.Interest,insurance,andopportunitycostsareallassociatedwithholdingcosts.
TRUE
Theseareholdingcosts.
Blooms:Remember
Difficulty:Easy
13.TheABCapproachinvolvesclassifyinginventoryitemsbyunitcost,withexpensiveitems
classifiedasA'itemsandlowcostitemsclassifiedasC'items.
FALSE
ABCapproachclassifiesinventoryaccordingtosomemeasureofimportance.
Blooms:Remember
Difficulty:Medium
LearningObjective:1305DescribetheABCapproachandexplainhowitisuseful.
14.Aninventorybufferaddsvalueandlowerscostinallsupplychains.
FALSE
Manybuffersincreasecostsacrosssupplychains.
Blooms:Remember
Difficulty:Medium
15.IntheABCapproach,Citemstypicallyrepresentabout15percentofthenumberofitems,
but60percentofthedollarusage.
FALSE
Citemstypicallyrepresentabout60percentofthenumberofitemsandabout15percentofthe
dollarusage.
Blooms:Remember
Difficulty:Medium
16.EOQinventorymodelsarebasicallyconcernedwiththetimingoforders.
FALSE
EOQmodelsareconcernedwiththesizeoforders.
Blooms:Remember
Difficulty:Medium
17.Theaverageinventorylevelisinverselyrelatedtoordersize.
FALSE
Theaverageinventorylevelispositivelyrelatedtoordersize.
Blooms:Remember
Difficulty:Medium
18.Theaverageinventorylevelandthenumberofordersperyearareinverselyrelated:Asone
increases,theotherdecreases.
TRUE
Theseareinverselyrelated.
Blooms:Remember
Difficulty:Medium
19.TheEOQshouldberegardedasanapproximatequantityratherthananexactquantity.Thus,
roundingthecalculatedvalueisacceptable.
TRUE
Thetotalcostfunctionisrelativelyflat,soroundingcostslittle.
Blooms:Remember
Difficulty:Medium
20.Carryingcostisafunctionofordersize;thelargertheorder,thehighertheinventory
carryingcost.
TRUE
Largerorderquantitiesleadtohigherinventorycarryingcost.
Blooms:Remember
Difficulty:Easy
21.Understockinganinventoryitemisasuresignofinadequateinventorycontrol.
FALSE
Havinganoccasionalstockoutisnotnecessarilyasignofinadequateinventorycontrol.
Blooms:Understand
Difficulty:Hard
22.Annualorderingcostisinverselyrelatedtoordersize.
TRUE
Annualorderingcostdecreasesasordersizeincreases.
Blooms:Remember
Difficulty:Easy
23.ThetotalcostcurveisrelativelyflatneartheEOQ.
TRUE
ThusapproximatingtheEOQcanbeaverygoodsolution.
Blooms:Remember
Difficulty:Easy
24.Becausepriceisn'tafactorintheEOQformula,quantitydiscountswon'taffectEOQ
calculations.
FALSE
Ifquantitydiscountsareoffered,theEOQmightvarybasedondifferentholdingcosts.
Blooms:Remember
Difficulty:Easy
LearningObjective:1308Describethequantitydiscountmodelandsolvetypicalproblems.
25.Inthequantitydiscountmodel,ifholdingcostsaregivenasapercentageofunitprice,a
graphofthetotalcostcurveswillhavethesameEOQforeachcurve.
FALSE
Totalcostcurveswilldifferacrossthepricelevels.
Blooms:Remember
Difficulty:Hard
26.Inthequantitydiscountmodel,theoptimumquantitywillalwaysbefoundonthelowest
totalcostcurve.
FALSE
Theoptimumquantitymightactuallybewhenthediscountispassedup.
Blooms:Remember
Difficulty:Hard
27.ROPmodelsindicatetomanagersthetimebetweenorders.
FALSE
ROPmodelsindicatewhen,withregardtoonhandinventory,ordersshouldbeplaced.
Blooms:Remember
Difficulty:Hard
28.WhentoordercanbecalculatedbytheROPandexpressedasaquantity.
TRUE
ROPmodelsindicatewhen,withregardtoonhandinventory,ordersshouldbeplaced.
Blooms:Remember
Difficulty:Easy
29.TherateofdemandisanimportantfactorindeterminingtheROP.
TRUE
ThedemandratemultipliedbytheleadtimeisamajorpartoftheROP.
Blooms:Remember
Difficulty:Medium
30.Theinventoryvalueofthesupplychainexceedstheinventoryvalueoftheorganization's
workinprocessinventory.
TRUE
Therecanberawmaterialsandfinishedgoodsinventoryattheorganization.Otherorganizations
inthesupplychainwillhaveinventories,too.
Blooms:Remember
Difficulty:Medium
31.Safetystockisheldbecauseweanticipatefuturedemand.
FALSE
Safetystockisheldbecauseweanticipatefluctuationsinfuturedemandorinleadtime.
Blooms:Remember
Difficulty:Medium
32.Variabilityindemandand/orleadtimecanbecompensatedforbysafetystock.
TRUE
Safetystockcanbeusedtoaccommodatethese.
Blooms:Remember
Difficulty:Medium
33.Solvingqualityproblemscanleadtolowerinventorylevels.
TRUE
Leaningouttheorganizationcanbefacilitatedbysolvingqualityproblems.
Blooms:Remember
Difficulty:Medium
TopicArea:OperationsStrategy
34.ROPmodelsassumethatdemandduringleadtimeiscomposedofaseriesofdependentdaily
demands.
FALSE
ROPmodelsassumethatdemandduringleadtimeiscomposedofaseriesofindependentdaily
demands.
Blooms:Remember
Difficulty:Hard
35.Profitmarginstendtobeinverselyrelatedtoinventoryturns.
TRUE
Thisistypicallythecase.
Blooms:Understand
Difficulty:Medium
36.Inthefixedorderintervalmodel,theordersizeisthesameforeachorder.
FALSE
Ordersizevariesfromordertoorderinafixedorderintervalmodel.
Blooms:Remember
Difficulty:Medium
LearningObjective:1303Explainperiodicandperpetualreviewsystems.
TopicArea:HowMuchtoOrder:FixedOrderIntervalModel
37.Thefixedorderintervalmodelrequiresacontinuousmonitoringofinventorylevels.
FALSE
Thefixedorderintervalmodelleadstoperiodicmonitoringofinventorylevels.
Blooms:Remember
Difficulty:Medium
38.Discretestockinglevelsareusedwhenanorganizationdoesn'twantvisibilityofinventory
levels.
FALSE
Discretestockingreferstohavingtostockadiscretenumberofunits.
Blooms:Remember
Difficulty:Medium
LearningObjective:1310Describesituationsinwhichthesingleperiodmodelwouldbeappropriate;andsolvetypicalproblems.
TopicArea:TheSinglePeriodModel
39.ThefixedorderintervalmodelrequiresalargeramountofsafetystockthantheROPmodel
forthesameriskofastockout.
TRUE
Fixedorderintervalstypicallycarrymoresafetystock.
Blooms:Remember
Difficulty:Hard
40.Thesingleperiodmodelcanbeveryhelpfulindeterminingwhentoorder.
FALSE
Thesingleperiodmodelhelpsdeterminehowmanytoorder.
Blooms:Remember
Difficulty:Medium
41.Thesingleperiodmodelcanbeveryhelpfulindetermininghowmuchtoorder.
TRUE
Thesingleperiodmodelhelpsdeterminehowmanytoorder.
Blooms:Remember
Difficulty:Medium
42.Monitoringinventoryturnsovertimecanbeusedasameasureofperformance.
TRUE
Greaterturnoveroftenimpliesbetterperformance.
Blooms:Remember
Difficulty:Medium
43.Asingleperiodmodelwouldbeusedmainlybyorganizationsgoingoutofbusiness.
FALSE
Thesingleperiodmodelappliestomanyregularlyoccurringcircumstances.
Blooms:Remember
Difficulty:Medium
44.ThebasicEOQmodelignoresthepurchasingcost.
TRUE
OnlyifquantitydiscountsareoffereddoespurchasingcostenterintoEOQanalysis.
Blooms:Remember
Difficulty:Medium
45.Whentheitemisofferedforresale,shortagecostsinthesingleperiodmodelcanincludea
chargeforlossofcustomergoodwill.
TRUE
Greaterlossofgoodwillwouldequatewithahighershortagecost.
Blooms:Remember
Difficulty:Medium
46.Inthesingleperiodmodel,theservicelevelistheprobabilitythatdemandwillnotexceed
thestockinglevelinanyperiod.
TRUE
Ifdemandexceedsthestockinglevel,astockoutasoccurred.
Blooms:Remember
Difficulty:Easy
47.Aquantitydiscountwilllowerthereorderpoint.
FALSE
Thereorderpointisindependentofquantitydiscounts.
Blooms:Remember
Difficulty:Hard
48.ItiscriticalthattheexactquantitycalculatedintheEOQmodelbeordered.
FALSE
Becausethetotalcostcurveisflat,modestroundingoftheEOQispermissible.
Blooms:Remember
Difficulty:Medium
49.Safetystockeliminatesallstockouts.
FALSE
Safetystockonlyensuresthatagivenlikelihoodofstockouts.
Blooms:Remember
Difficulty:Medium
50.Thecalculationofsafetystockrequiresknowledgeofdemandandleadtimevariability.
TRUE
Bothoftheseplayaroleinthecalculationofsafetystock.
Blooms:Remember
Difficulty:Easy
51.Thetwobasicissuesininventoryarehowmuchtoorderandwhentoorder.
TRUE
Quantityandtimingarethetwobasicissuesininventorymanagement.
Blooms:Remember
Difficulty:Medium
52.Cyclecountingcanbeusedinmotorcycleinventorycontrol.
TRUE
Cyclecountingcanalsobeusedinautomobileinventorycontrol.
Blooms:Remember
Difficulty:Medium
53.UsingtheEOQmodel,thehigheranitem'scarryingcosts,themorefrequentlyitwillbe
ordered.
TRUE
Ascarryingcostsincrease,theoptimalorderquantitydecreases.
Blooms:Remember
Difficulty:Hard
54.Thecycletimerepresentsthetimebetweenreorderpointandreceiptoforder.
FALSE
Thecycletimerepresentsthetimebetweenorders.
Blooms:Remember
Difficulty:Medium
55.Thecostofplacinganorderisafunctionofordersize.
FALSE
Thecostofplacinganorderistypicallyunrelatedtoordersize.
Blooms:Remember
Difficulty:Medium
56.Allstockoutsmustbeavoided.
FALSE
Mostofthetimeitwouldbetoocostlytoavoidallstockouts.
Blooms:Remember
Difficulty:Hard
57.InthebasicEOQmodel,annualholdingcostisonehalfofthetotalannualcostforallitems
purchased.
FALSE
Annualholdingcostequalshalftheproductoftheorderquantityandtheperunitperyear
holdingcost.
Blooms:Remember
Difficulty:Medium
58.Quantitydiscountsaregenerallygivenforlargenumberoforders.
FALSE
Quantitydiscountsaregivenforsmaller,butlarger,orders.
Blooms:Remember
Difficulty:Easy
59.Thelargerthenumberofordersplaced,thelargertheaveragelevelofinventory.
FALSE
Moreordersmeanssmallerquantities,whichmeansloweraverageinventory.
Blooms:Remember
Difficulty:Medium
60.WhichofthefollowingisnotoneoftheassumptionsofthebasicEOQmodel?
A.Annualdemandrequirementsareknownandconstant.
B.Leadtimedoesnotvary.
C.Eachorderisreceivedinasingledelivery.
D.Quantitydiscountsareavailable.
E.Alloftheabovearenecessaryassumptions.
InthebasicEOQmodelquantitydiscountsarenotavailable.
Blooms:Remember
Difficulty:Medium
61.Whichofthefollowinginteractionswithvendorswouldpotentiallyleadtoinventory
reductions?
A.reduceleadtimes
B.increasesafetystock
C.lessfrequentpurchases
D.largerbatchquantities
E.longerorderintervals
Reducingleadtimeswouldhavetheeffectofreducingsafetystockrequirementsandtherefore
reducinginventories.
Blooms:Understand
Difficulty:Hard
62.Anonlinearcostrelatedtoordersizeisthecostof:
A.interest
B.insurance
C.taxes
D.receiving
E.space
Receivingcostisanonlinearcostassociatedwithordersize.
Blooms:Understand
Difficulty:Hard
63.Inatwobininventorysystem,theamountcontainedinthesecondbinisequaltothe:
A.ROP
B.EOQ
C.amountinthefirstbin
D.optimumstockinglevel
E.safetystock
Thesecondbinequalstheamountneededduringleadtimeinadditiontoanysafetystock.
Blooms:Remember
Difficulty:Medium
64.Whencarryingcostsarestatedasapercentageofunitprice,theminimumpointsonthetotal
costcurves:
A.Lineup
B.Equalzero
C.Donotlineup
D.Cannotbecalculated
E.Dependonthepercentageassigned
Curvesaren'tsymmetricalifholdingcostdiffersacrosspricebreaks.
Blooms:Understand
Difficulty:Hard
65.Dairyitems,freshfruitandnewspapersareitemsthat:
A.donotrequiresafetystocks
B.cannotbeorderedinlargequantities
C.aresubjecttodeteriorationandspoilage
D.requirethatpricesbeloweredeverytwodays
E.haveminimalholdingcosts
Deteriorationandspoilageincreaseholdingcosts.
Blooms:Remember
Difficulty:Medium
66.Whichofthefollowingisleastlikelytobeincludedinordercosts?
A.processingvendorinvoicesforpayment
B.movingdeliveredgoodstotemporarystorage
C.inspectingincominggoodsforquantity
D.takinganinventorytodeterminehowmuchisneeded
E.temporarystorageofdeliveredgoods
Storagecostsareholdingcosts.
Blooms:Remember
Difficulty:Hard
67.InanABCsystem,thetypicalpercentageofthenumberofitemsininventoryforAitemsis
about:
A.10
B.30
C.50
D.70
E.90
ClassAitemsrepresentarelativelysmallportionofitems.
Blooms:Remember
Difficulty:Easy
68.IntheABCclassificationsystem,itemswhichaccountforfifteenpercentofthetotal
dollarvolumeforamajorityoftheinventoryitemswouldbeclassifiedas:
A.Aitems
B.Bitems
C.Citems
D.AitemsplusBitems
E.BitemsplusCitems
ThesewouldbeclassCitems.
Blooms:Remember
Difficulty:Easy
69.IntheABCclassificationsystem,itemswhichaccountforsixtypercentofthetotaldollar
volumeforfewinventoryitemswouldbeclassifiedas:
A.Aitems
B.Bitems
C.Citems
D.AitemsplusBitems
E.BitemsplusCitems
ThesewouldbeclassAitems.
Blooms:Remember
Difficulty:Easy
70.Thepurposeof"cyclecounting"isto:
A.countalltheitemsininventory
B.countbicyclesandmotorcyclesininventory
C.reducediscrepanciesbetweeninventoryrecordsandactual
D.reducetheft
E.count10%oftheitemseachmonth
Cyclecountingisintendedtoimproveinventoryrecordaccuracy.
Blooms:Remember
Difficulty:Easy
71.TheEOQmodelismostrelevantforwhichoneofthefollowing?
A.orderingitemswithdependentdemand
B.determinationofsafetystock
C.orderingperishableitems
D.determiningfixedintervalorderquantities
E.determiningfixedorderquantities
TheEOQisafixedquantityapproach.
Blooms:Understand
Difficulty:Medium
72.WhichisnotatrueassumptionintheEOQmodel?
A.Productionrateisconstant
B.Leadtimedoesn'tvary
C.Nomorethan3itemsareinvolved
D.Usagerateisconstant
E.Noquantitydiscounts
EOQcanbeusedacrossmultipleitems.
Blooms:Remember
Difficulty:Hard
73.Inasupermarket,avendor'srestockingtheshelveseveryMondaymorningisanexampleof:
A.safetystockreplenishment
B.economicorderquantities
C.reorderpoints
D.fixedorderinterval
E.blanketordering
Thiswouldbeaweeklyintervalmodel.
Blooms:Remember
Difficulty:Medium
74.AcyclecountprogramwillusuallyrequirethatA'itemsbecounted:
A.daily.
B.onceaweek.
C.monthly.
D.quarterly.
E.morefrequentlythanannually.
ClassAitemsarecountedmorefrequently.
Blooms:Remember
Difficulty:Hard
75.Ariskavoiderwouldwant______safetystock.
A.Less
B.More
C.Thesame
D.Zero
E.50%
Greaterriskaversionisassociatedwithmoresafetystock.
Blooms:Understand
Difficulty:Easy
76.InthebasicEOQmodel,ifannualdemanddoubles,theeffectontheEOQis:
A.Itdoubles.
B.Itisfourtimesitspreviousamount.
C.Itishalfitspreviousamount.
D.Itisabout70percentofitspreviousamount.
E.Itincreasesbyabout40percent.
TheEOQdoesnotincreaselinearlywithdemand.
Blooms:Understand
Difficulty:Hard
77.InthebasicEOQmodel,ifleadtimeincreasesfromfiveto10days,theEOQwill:
A.double
B.increase,butnotdouble
C.decreasebyafactoroftwo
D.remainthesame
E.noneoftheabove
TheEOQisindependentofleadtime.
Blooms:Remember
Difficulty:Medium
78.InthebasicEOQmodel,anannualdemandof40units,anorderingcostof$5,andaholding
costof$1perunitperyearwillresultinanEOQof:
A.20
B.squarerootof200
C.200
D.400
E.noneofthese
UsethebaseEOQformula.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
79.InthebasicEOQmodel,ifD=60permonth,S=$12,andH=$10perunitpermonth,EOQ
is:
A.10
B.12
C.24
D.72
E.144
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
80.InthebasicEOQmodel,ifannualdemandis50,carryingcostis$2,andorderingcostis$15,
EOQisapproximately:
A.11
B.20
C.24
D.28
E.375
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
81.WhichofthefollowingisnottrueforEconomicProductionQuantitymodel?
A.Usagerateisconstant.
B.Productionrateexceedsusagerate.
C.Runsizeexceedsmaximuminventory.
D.Therearenoorderingorsetupcosts.
E.Averageinventoryisonehalfmaximuminventory.
ThereareorderingorsetupcostsintheEPQmodel.
Blooms:Remember
Difficulty:Medium
LearningObjective:1307Describetheeconomicproductionquantitymodelandsolvetypicalproblems.
82.Giventhesamedemand,setup/orderingcosts,andcarryingcosts,theEOQcalculatedusing
incrementalreplenishmentwillbe____________ifinstantaneousreplenishmentwasassumed:
A.greaterthantheEOQ
B.equaltotheEOQ
C.smallerthantheEOQ
D.greaterthanorequaltotheEOQ
E.smallerthanorequaltotheEOQ
TheEPQwillbesmallerthantheEOQ.
Blooms:Understand
Difficulty:Medium
83.Theintroductionofquantitydiscountswillcausetheoptimumorderquantitytobe:
A.smaller
B.unchanged
C.greater
D.smallerorunchanged
E.unchangedorgreater
Quantitydiscountscannotmaketheoptimumquantitybesmaller.
Blooms:Understand
Difficulty:Hard
84.Afillrateisthepercentageof_____filledbystockonhand.
A.Shipments
B.Demand
C.Inventory
D.Safetystock
E.Leadtime
Thefillrateisthepercentageofdemandfilleddirectlyfromonhandinventory.
Blooms:Remember
Difficulty:Medium
85.Inthequantitydiscountmodel,withcarryingcoststatedasapercentageofunitpurchase
price,inorderfortheEOQofthelowestcurvetobeoptimum,itmust:
A.havethelowesttotalcost
B.beinafeasiblerange
C.betotheleftofthepricebreakquantityforthatprice
D.havethelargestquantitycomparedtootherEOQ's
E.noneoftheabove
Ifnotfeasible,thatquantitywillhavetobeadjustedupwardandthentotalcostcalculated.
Blooms:Understand
Difficulty:Hard
86.Whichoneofthefollowingisnotgenerallyadeterminantofthereorderpoint?
A.rateofdemand
B.lengthofleadtime
C.leadtimevariability
D.stockoutrisk
E.purchasecost
Purchasecostdoesnotenterintoreorderpointcalculations.
Blooms:Remember
Difficulty:Medium
87.Ifnovariationsindemandorleadtimeexist,theROPwillequal:
A.theEOQ
B.expectedusageduringleadtime
C.safetystock
D.theservicelevel
E.theEOQplussafetystock
TheROPwillbethedemandratetimestheleadtime.
Blooms:Remember
Difficulty:Easy
88.Ifaveragedemandforaninventoryitemis200unitsperday,leadtimeisthreedays,and
safetystockis100units,thereorderpointis:
A.100units
B.200units
C.300units
D.600units
E.700units
TheROPwillbethesafetystockaddedtotheproductofthedemandrateandtheleadtime.
AACSB:Analytic
Blooms:Apply
Difficulty:Easy
89.Whichoneofthefollowingisimpliedbya"leadtime"servicelevelof95percent?
A.Approximately95percentofdemandduringleadtimewillbesatisfied.
B.Approximately95percentofinventorywillbeusedduringleadtime.
C.Theprobabilityis95percentthatdemandduringleadtimewillexactlyequaltheamounton
handatthebeginningofleadtime.
D.Theprobabilityis95percentthatdemandduringleadtimewillnotexceedtheamounton
handatthebeginningofleadtime.
E.noneoftheabove
AstockonlyoccursifdemandduringleadtimeexceedstheROP.
Blooms:Understand
Difficulty:Hard
90.Whichoneofthefollowingisimpliedbyan"annual"servicelevelof95percent?
A.Approximately95percentofdemandduringleadtimewillbesatisfied.
B.Theprobabilityis95percentthatdemandwillexceedsupplyduringleadtime.
C.Theprobabilityis95percentthatdemandwillequalsupplyduringleadtime.
D.Theprobabilityis95percentthatdemandwillnotexceedsupplyduringleadtime.
E.Noneoftheabove.
Theannualservicelevelisusuallygreaterthanthecycleservicelevel,andthustheriskofa
stockoutduringleadtimeismuchsmallerthan5percent.
Blooms:Understand
Difficulty:Hard
91.Dailyusageisexactly60gallonsperday.Leadtimeisnormallydistributedwithameanof
10daysandastandarddeviationof2days.Whatisthestandarddeviationofdemandduringlead
time?
A.60x2
B.60timesthesquarerootof2
C.60timesthesquarerootof10
D.60x10
E.noneoftheabove
Thestandarddeviationofdemandduringleadtimeisthesquarerootofsquareddemandtimes
thesquaredstandarddeviationofleadtime.
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
92.Leadtimeisexactly20dayslong.Dailydemandisnormallydistributedwithameanof10
gallonsperdayandastandarddeviationof2gallons.Whatisthestandarddeviationofdemand
duringleadtime?
A.20x2
B.20x10
C.2timesthesquarerootof20
D.2timesthesquarerootof10
E.noneoftheabove
Thestandarddeviationofdemandduringleadtimeequalsthedailystandarddeviationof
demandtimesthesquarerootoftheleadtime.
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
93.Allofthefollowingarepossiblereasonsforusingthefixedorderintervalmodelexcept:
A.Supplierpolicyencouragesuse.
B.Groupingorderscansaveinshippingcosts.
C.TherequiredsafetystockislowerthanwithanEOQ/ROPmodel.
D.Itissuitedtoperiodicchecksofinventorylevelsratherthancontinuousmonitoring.
E.Continuousmonitoringisnotpractical.
Safetystockishigherinafixedorderintervalmodel.
Blooms:Understand
Difficulty:Medium
94.Whichoftheseproductswouldbemostapttoinvolvetheuseofasingleperiodmodel?
A.goldcoins
B.hammers
C.freshfish
D.calculators
E.frozencorn
Theperishabilityoffreshfishmakesitmoreappropriateforasingleperiodmodel.
Blooms:Understand
Difficulty:Easy
95.Inasingleperiodmodel,ifshortageandexcesscostsareequal,thentheoptimumservice
levelis:
A.0
B..33
C..50
D..67
E.noneofthese
Theratioofshortagecosttoshortageplusexcesscostis0.5.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
96.Inasingleperiodmodel,ifshortagecostisfourtimesexcesscost,thentheoptimumservice
levelis___percent.
A.100
B.80
C.60
D.40
E.20
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
97.Inthesingleperiodmodel,ifexcesscostisdoubleshortagecost,theapproximatestockout
risk,assuminganoptimumservicelevel,is___percent.
A.100
B.67
C.50
D.33
E.5
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
98.If,inasingleperiodinventorysituation,theprobabilitiesofdemandbeing1,2,3,or4units
are.3,.3,.2,and.2,respectively.Iftwounitsarestocked,whatistheprobabilityofsellingboth
ofthem?
A..5
B..6
C..7
D..8
E.noneofthese
Bothunitswillbesoldifdemandisfor2,3or4units.
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
99.Themanagementofsupplychaininventoriesfocuseson:
A.internalinventories
B.externalinventories
C.bothinternalandexternalinventories
D.safetystockelimination
E.optimizingreorderpoints
Supplychaininventoryinvolvesbothinternalandexternalinventories.
Blooms:Remember
Difficulty:Medium
100.Anoperationsstrategyforinventorymanagementshouldworktowards:
A.increasinglotsizes
B.decreasinglotsizes
C.increasingsafetystocks
D.decreasingservicelevels
E.increasingorderquantities
Iflotsizescanbereduced,operationsbecomeleaner.
Blooms:Remember
Difficulty:Easy
101.Cyclestockinventoryisintendedtodealwith________.
A.excesscosts
B.shortagecosts
C.stockouts
D.expecteddemand
E.quantitydiscounts
Cyclestockisintendedtodealwithexpecteddemand,whilesafetystockisintendedtoreduce
stockoutsresultingfromdemanduncertainty.
Blooms:Remember
Difficulty:Medium
TopicArea:InventoryOrderingPolicies
102.Anoperationsstrategywhichrecognizeshighcarryingcostsandreducesorderingcostswill
resultin:
A.unchangedorderquantities
B.slightlydecreasedorderquantities
C.greatlydecreasedorderquantities
D.slightlyincreasedorderquantities
E.greatlyincreasedorderquantities
Processeswillbeleanedleadingtosmallerorderquantities.
Blooms:Remember
Difficulty:Medium
103.Theneedforsafetystockscanbereducedbyanoperationsstrategywhich:
A.increasesleadtime
B.increasesleadtimevariability
C.increaseslotsizes
D.decreasesorderingcosts
E.decreasesleadtimevariability
Reducedleadtimevariabilitywillreducethesizeofsafetystocks.
Blooms:Understand
Difficulty:Medium
104.Ifaveragedemandforanitemis20unitsperday,safetystockis50units,andleadtimeis
fourdays,theROPwillbe:
A.20
B.50
C.70
D.80
E.130
Multiplythedemandratebytheleadtimeandaddthesafetystock.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
105.WithanABCsystem,anitemthathadahighdemandbutalowannualdollarvolume
wouldprobablybeclassifiedas:
A.A
B.B
C.C
D.noneofthese
LowdollarvolumeitemstendtobeclassifiedasCitems.
Blooms:Remember
Difficulty:Medium
106.Thefixedorderintervalmodelwouldbemostlikelytobeusedforthissituation:
A.Acompanyhasswitchedfrommassproductiontoleanproduction.
B.Productionisdoneinbatches.
C.Sparepartsareorderedwhenanewmachineispurchased.
D.Groupingorderscansaveshippingcosts.
E.noneofthese
Iforderingcostscanbesavedbygroupingorders,thefixedorderintervalmodelisespecially
attractive.
Blooms:Understand
Difficulty:Hard
107.Whichitemwouldbeleastlikelytobeorderedunderafixedorderintervalsystem?
A.textbooksatacollegebookstore
B.autopartsatanassemblyplant
C.cardsatagiftshop
D.cannedpeasatasupermarket
E.noneofthese
Autopartsatanassemblyplantwouldbeunlikelycandidatesforafixedorderintervalsystem.
Blooms:Understand
Difficulty:Medium
108.Whichoneofthesewouldnotbeafactorindeterminingthereorderpoint?
A.theEOQ
B.theleadtime
C.thevariabilityofdemand
D.thedemandorusagerate
E.allarefactors
TheROPisindependentoftheEOQ.
Blooms:Understand
Difficulty:Hard
109.Acarrentalagencyuses96boxesofstaplesayear.Theboxescost$4each.Itcosts$10to
orderstaples,andcarryingcostsare$0.80perboxonanannualbasis.
Determine:
(A)theorderquantitythatwillminimizethesumoforderingandholdingboxesofstaples
(B)theannualcostoforderingandcarryingtheboxesofstaples
D=96boxes/year
S=$10
H=$.80perboxyear
Feedback:UsetheEOQandthetotalannualcostformula.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
110.Aservicegarageuses120boxesofcleaningclothsayear.Theboxescost$6each.Ordering
costis$3andholdingcostis10percentofpurchasecostperunitonanannualbasis.
Determine:
(A)Theeconomicorderquantity
(B)Thetotalcostofcarryingthecloths(excludingpurchaseprice)
(C)Theaverageinventory
D=120boxesperyear
S=$3
H=.10($6)=$.60perboxyear
A)
B)
C)
Feedback:UsetheEOQ,totalannualcostandaverageinventoryformulas.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
111.Ashopthatmakescandlesoffersascentedcandle,whichhasamonthlydemandof360
boxes.Candlescanbeproducedatarateof36boxesperday.Theshopoperates20daysa
month.Assumethatdemandisuniformthroughoutthemonth.Setupcostis$60forarun,and
holdingcostis$2perboxonamonthlybasis.
Determinethefollowing:
(A)theeconomicrunsize
(B)themaximuminventory
(C)thenumberofdaysinarun
Thedailyusagerate(u)is18boxes.Thedailyproductionrate(p)is36boxes.
A)
B)
C)
Feedback:UsetheEPQandImaxformulas.DaysperrunistheEPQdividedbytheproduction
rate.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
112.EstimateddemandforgoldfilledlocketsatSam'sBargainJewelryandHousewaresis2,420
locketsayear.ManagerVeronicaWintershasindicatedthatorderingcostis$45,andthatthe
followingpricescheduleapplies:1to599lockets,$.90each;600to1,199lockets,$.80each;
and1,200ormore,$.75each.Whatordersizewillminimizetotalcostifcarryingcostis$.18per
locketonanannualbasis?
D=2,420locketsperyear
S=$45
H=$.18perlocket
Hence,themostattractiveorderquantityis1,200units.
Feedback:Sincethefirstcalculatedquantityisintherangeoffeasibilityfor$.80perunit,
comparethetotalcostof1,100@$.80eachwiththetotalcostof1,200@$.75each.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
113.Supposethatyouarethemanagerofaproductiondepartmentthatuses400boxesofrivets
peryear.Thesupplierquotesyouapriceof$8.50perboxforanordersizeof199boxesorless,
apriceof$8.00perboxforordersof200to999boxes,andapriceof$7.50perboxforanorder
of1,000ormoreboxes.Youassignaholdingcostof20percentofthepricetothisinventory.
Whatorderquantitywouldyouuseiftheobjectiveistominimizetotalannualcostsofholding,
purchasing,andordering?Assumeorderingcostis$80/order.
D=400boxesperyear
S=$80
H=.20P
Thus,thebestchoiceistobuy200perorderatapriceof$8.00perunit.
Feedback:Thelowestcurvewithitsminimuminthefeasiblerangeis$8.00,whereQ=200.
Hence,comparethetotalcostof200@$8.00eachandthetotalcostof1,000@$7.50each.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
114.Theoperatorofaconcessionatadowntownlocationestimatesthathewillsell400bagsof
circuspeanutsduringamonth.Carryingcostsare17percentofunitpriceandorderingcostis
$22.Thepricescheduleforbagsofpeanutsis:1to199,$1.00each;200to499,$.94each;and
500ormore$.87each.Whatordersizewouldbemosteconomical?
D=400bagsperyear
S=$22
H=.17P
Thus,thebestchoiceistobuy500perorderatapriceof$.87perunit.
Feedback:ThelowestcurvewithafeasibleEOQisthe$.94curve.Hence,comparetotalcostof
332bags@$.94eachwiththetotalcostof500@$.87each.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
115.Adrycleaningfirmusesanaverageof20gallonsofcleaningfluidaday.Usagetendstobe
normallydistributedwithastandarddeviationoftwogallonsperday.Leadtimeisfourdays,
andthedesiredservicelevelis92percent.Whatamountofsafetystockisappropriateifafixed
ordersizeof600gallonsisused?
=20gallonsperday; =2gallonsperday
LT=4days
SL=92percent(Z=1.41)
Feedback:MultiplyanappropriateZvaluebythestandarddeviationofdemandandthesquare
rootoftheleadtime.
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
116.SupposethatusageofcookingoilatHarry'sFishFryisnormallydistributedwithan
averageof15gallons/dayandastandarddeviationoftwogallons/day.Harryhasjustfiredthe
managerandtakenoveroperatingtherestauranthimself.Harryhasaskedyoutohelphimdecide
howtoreordercookingoilinordertoachieveaservicelevelwhichisseventimestheriskof
stockout(7/8).Leadtimeiseightdays.Assumethatcookingoilcanbeorderedasneeded.
=15gallonsperday; =2gallonsperday
LT=8days
SL=7/8=87.5percent(Z=1.15)
Forthecontinuousreviewsystem,thecorrectreorderpointshouldbe:
Feedback:UsethebasicROPformula.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
117.Abakery'suseofcornsweetenerisnormallydistributedwithameanof80gallonsperday
andastandarddeviationoffourgallonsperday.Leadtimefordeliveryofthecornsweeteneris
normalwithameanofsixdaysandastandarddeviationoftwodays.Ifthemanagerwantsa
servicelevelof99percent,whatreorderpointshouldbeused?
Fora99percentservicelevel,theappropriatezvalueis2.33.Giventhis,thereorderpoint
shouldbe:
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
118.Amanagerreorderslubricantwhentheamountonhandreaches422pounds.Averagedaily
usageis45pounds,whichisnormallydistributedwithastandarddeviationofthreepoundsper
day.Leadtimeisninedays.Whatistheriskofastockout?
=45lbs.perday;
=3lbs.perday;LT=9days
IftheROPis422,thismeansthesafetystock
isequalto17units.
Ifthesafetystockequals17units,thensolvingforz,weget
Azvalueof1.89impliesthattheprobabilityofastockoutis.0294,sotheriskofastockoutis
about3percent.
Feedback:Giventhereorderpoint,solveforZ,theninterprettheprobabilityassociatedwiththat
Z.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
119.Giventhefollowinginformation:
Orderquantity=300; =20units;desiredleadtimeservicelevel=.86.
Find:
(A)theexpectednumberofunitsshortpercycle
(B)theannualservicelevel
A)E(n)=E(z)
;foraleadtimeservicelevelof.8599,E(z)=.071.
Thus,E(n)=.071(20units)=1.42.
B)1SLannual=
=.0047
SolvingforSLannual,wegetSLannual=1.0047=.9953or99.53%
Feedback:Usecycleandannualservicelevelapproaches.
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
120.Acompanycanproduceapartitusesinanassemblyoperationattherateof50anhour.
Thecompanyoperateseighthoursaday,300daysayear.Dailyusageofthepartis300parts.
Thecompanyusestheparteveryday.Therunsizeis6,000parts.Theannualholdingcostis$2
perunit,andsetupcostis$100.
(A)Howmanyrunsperyearwilltherebe?
(B)Whileproductionisoccurring,howmanypartsperdayarebeingaddedtoinventory?
(C)Assumingthatproductionbeginswhentherearenopartsonhand,whatisthemaximum
numberofpartsininventory?
(D)Themachineisdedicatedtothisproduct.Everysooften,preventivemaintenance,which
requiressixworkingdays,mustbeperformedonit.Doesthisinterruptproductioncycles,oris
thereenoughtimebetweencyclestoperformthemaintenance?Explain.
(A)Annualdemand=(300parts/day)x(300days/yr.)=90,000parts/yr.
Annualdemand/Runquantity=90000/6000=15runs/yr.
(B)Inventorybuildup=pu=400300=100parts/day.
(C)Productiontakes15days:6000parts/400parts/day=15days.
Buildupis100parts/dayx15days=1500parts.
(D)Usageis300parts/dayfor6days=1800parts,butmaximuminventoryisonly1500parts.
Yes,itwouldinterruptproduction.
Feedback:UseEPQformulasandinterpret.
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
121.Theinjectionmoldingdepartmentofacompanyuses40poundsofapowderaday.
Inventoryisreorderedwhentheamountonhandis240pounds.Leadtimeaveragesfivedays.It
isnormallydistributedandhasastandarddeviationoftwodays.Whatistheprobabilityofa
stockoutduringleadtime?
=5days; =2
Asonaverage200poundsareneededduringleadtime,aROPof240poundsimpliesasafety
stockof40pounds.With
probabilityofastockoutof.3085.
,thezvalueis0.5.Thisimpliesa
Feedback:SolveforZ,andthenfindthecumulativeprobabilityassociatedwiththatZ.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
122.Ashopownerusesareorderpointapproachtorestockingacertainrawmaterial.Leadtime
issixdays.Usageofthematerialduringleadtimeisnormallydistributedwithameanof42
poundsandastandarddeviationof4pounds.Whenshouldtherawmaterialbereorderedifthe
acceptableriskofastockoutis3%?
LT=6days
Expecteddemandduringleadtime=42pounds
Standarddeviationofleadtimedemand=4pounds
z=1.88forSLof1.00.03
ROP=expecteddemandduringleadtime+z
=252+1.88(4)=259.52pounds.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
123.Themanagerofabakeryordersthree'caketogo'weddingcakeseverySaturdayto
accommodatelastminutepurchases.DemandforthecakescanbedescribedbyaPoisson
distributionthathasameanof2.Thecakescost$10eachtoprepare,andtheysellfor$26each.
Anycakesthathaven'tbeensoldbytheendofthedayaresoldforhalfpricethenextday.
Usually,halfofthosearesoldandtherestaretossed.Whatstockinglevelwouldbe
appropriate?
Cs=$26$10=$16
Ce=$10.5($13)=$3.50
SL=
=.82
ForPoissonwithmean=2.0,thisfallsbetween.677and.857.
Therefore,stock3cakes.
Feedback:Stockuntilthecumulativeprobabilityofdemandfirstexceedsthisratio.
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
124.Amanagerhasjustreceivedarevisedpriceschedulefromavendor.Whatorderquantity
shouldthemanageruseinordertominimizetotalcosts?AnnualDemandis120units,ordering
costis$8,andannualcarryingcostis$1perunit.
Becausethisisinthe4059range,compareTCofQ=44@$13,Q=60@$12,andQ=90@
$11:
Feedback:TheEOQforthe4059rangeisthelowestfeasibleEOQ.Comparethisquantity's
totalcosttothetotalcostofminimumquantitiesinthelowerpriceranges.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
Amanufactureriscontemplatingaswitchfrombuyingtoproducingacertainitem.Setupcost
wouldbethesameasorderingcost.Theproductionratewouldbeaboutdoubletheusagerate.
StevensonChapter13
125.ComparedtotheEOQ,theeconomicproductionquantitywouldbeapproximately:
A.thesame
B.20percentlarger
C.40percentlarger
D.20percentsmaller
E.40percentsmaller
TheEPQwillbelargerthantheEOQ.
Blooms:Understand
Difficulty:Hard
126.ComparedtotheEOQ,themaximuminventorywouldbeapproximately:
A.70percenthigher
B.30percenthigher
C.thesame
D.30percentlower
E.70percentlower
MaximuminventoryissmallerunderanEPQthananEOQ.
Blooms:Understand
Difficulty:Hard
ThemanageroftheQuickStopCornerConvenienceStore(whichnevercloses)sellsfourcases
ofSteinbeereachday.Ordercostsare$8.00perorder,andSteinbeercosts$.80persixpack
(eachcaseofSteinbeercontainsfoursixpacks).Ordersarrivethreedaysfromthetimetheyare
placed.Dailyholdingcostsareequaltofivepercentofthecostofthebeer.
StevensonChapter13
127.AtwhatpointshouldhereorderSteinbeer?
A.0casesremaining
B.4casesremaining
C.12casesremaining
D.16casesremaining
E.20casesremaining
Usethebasicreorderpointwithnodemanduncertainty.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
128.Ifheweretoorder16casesofSteinbeeratatime,whatwouldbethelengthofanorder
cycle?
A.0.25days
B.3days
C.1day
D.4days
E.20days
Dividetheorderquantitybythedemandratetogetthelengthofanordercycle.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
129.Ifheweretoorder16casesofSteinbeeratatime,whatwouldbetheaverageinventory
level?
A.4cases
B.12cases
C.8cases
D.20cases
E.16cases
Dividetheorderquantitybytwo.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
130.Ifheweretoorder16casesofSteinbeeratatime,whatwouldbethedailytotalinventory
costs,EXCLUDINGthecostofthebeer?
A.$2.00
B.$4.00
C.$1.28
D.$3.28
E.$2.56
Multiplytheaverageinventorybytheholdingcost.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
131.WhatistheeconomicorderquantityforSteinbeer?
A.8cases
B.11cases
C.14cases
D.20cases
E.32cases
UsethebasicEOQformula.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
AnnChovies,ownerofthePerfectPastaPizzaParlor,uses20poundsofpepperonieachdayin
preparingpizzas.Ordercostsforpepperoniare$10.00perorder,andcarryingcostsare4cents
perpoundperday.Leadtimeforeachorderis3days,andthepepperoniitselfcosts$3.00per
pound.
StevensonChapter13
132.Atwhatpointshouldshereorderpepperoni?
A.20poundsremaining
B.40poundsremaining
C.60poundsremaining
D.80poundsremaining
E.100poundsremaining
Multiplythedemandratebytheleadtime.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
133.Ifsheweretoorder80poundsofpepperoniatatime,whatwouldbethelengthofanorder
cycle?
A.0days
B.0.25days
C.3days
D.4days
E.5days
Dividetheorderquantitybythedemandrate.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
134.Ifsheweretoorder80poundsofpepperoniatatime,whatwouldbetheaverageinventory
level?
A.20pounds
B.40pounds
C.60pounds
D.80pounds
E.100pounds
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
135.Ifsheweretoorder80poundsofpepperoniatatime,whatwouldbethetotaldailycosts,
includingthecostofthepepperoni?
A.$60.00
B.$63.20
C.$64.00
D.$64.10
E.$65.00
Addtheholdingcosttotheorderingcostandthecostofthepepperoni.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
136.Whatistheeconomicorderquantityforpepperoni?
A.20pounds
B.40pounds
C.60pounds
D.80pounds
E.100pounds
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
TheOperationsManagerforShadysideSavings&Loanorderscashfromherhomeofficefor
herverypopular"BIGBUCKS"automatedtellermachine,whichonlydispenses$100bills.She
estimatesthatthismachinedispensesanaverageof12,500billspermonth,andthatcarryinga
billininventorycosts10percentofitsvalueannually.Sheknowsthateachorderforthesebills
costs$300forclericalandarmoredcardeliverycosts,andthatorderleadtimeissixdays.
StevensonChapter13
137.Assumingathirtydaymonth,atwhatpointshouldbillsbereordered?
A.0billsremaining
B.417billsremaining
C.2,500billsremaining
D.10,000billsremaining
E.12,500billsremaining
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
138.Assumingathirtydaymonth,ifsheweretoorder6,000billsatatime,whatwouldbethe
lengthofanordercycle?
A.0.48days
B.2.08days
C.6days
D.8.4days
E.14.4days
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
139.Ifsheweretoorder6,000billsatatime,whatwouldbethedollarvalueoftheaverage
inventorylevel?
A.$3,000
B.$6,000
C.$12,500
D.$300,000
E.$600,000
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
140.Ifsheweretoorder6,000billsatatime,whatwouldbetheaveragemonthlytotalcosts,
EXCLUDINGthevalueofthebills?
A.$625
B.$1,250
C.$2,500
D.$3,125
E.$37,500
Addtheorderingandholdingcosts.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
141.Whatistheeconomicorderquantity?
A.600bills
B.3,000bills
C.949bills
D.6,215bills
E.12,500bills
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
Giventhefollowingdataforaparticularinventoryitem:
StevensonChapter13
142.Whatistheeconomicorderquantityforthisitem?
2,000units
Feedback:UsethebasicEOQformula.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
143.Fortheeconomicorderquantity,whatisthelengthofanordercycle?
4weeks
Feedback:Dividetheorderquantitybythedemandrate.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
144.Fortheeconomicorderquantity,whatisthereorderpoint?
1,500units
Feedback:Multiplytheleadtimebythedemandrate.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
145.Fortheeconomicorderquantity,whatistheaverageinventorylevel?
1,000units
Feedback:Dividetheorderquantitybytwo.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
146.Fortheeconomicorderquantity,whatareaverageweeklyorderingcosts?
$10
Feedback:Dividethedemandratebytheorderquantity,thenmultiplybyperordercost.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
147.Fortheeconomicorderquantity,whatareaverageweeklycarryingcosts?
$10
Feedback:Dividetheorderquantitybytwo,thenmultiplybytheperiodicholdingcost.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
148.Fortheeconomicorderquantity,whatareaverageweeklytotalcosts,includingthecostof
theinventoryitem?
$270
Feedback:Multiplythedemandratebythecostoftheitem,thenaddtotheholdingandordering
costs.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
Thematerialsmanagerforabilliardballmakermustperiodicallyplaceordersforresin,oneof
therawmaterialsusedinproducingbilliardballs.Sheknowsthatmanufacturingusesresinata
rateof50kilogramseachday,andthatitcosts$.04perdaytocarryakilogramofresinin
inventory.Shealsoknowsthattheordercostsforresinare$100perorder,andthattheleadtime
fordeliveryisfour(4)days.
StevensonChapter13
149.Atwhatpointshouldresinbereordered?
A.0kilogramsremaining
B.50kilogramsremaining
C.200kilogramsremaining
D.400kilogramsremaining
E.500kilogramsremaining
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
150.Ifordersizewas1,000kilogramsofresin,whatwouldbethelengthofanordercycle?
A.0.05days
B.4days
C.16days
D.20days
E.50days
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
151.Iftheordersizewas1,000kilogramsofresin,whatwouldbetheaverageinventorylevel?
A.50kilograms
B.200kilograms
C.500kilograms
D.800kilograms
E.1,000kilograms
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
152.Iftheordersizewas1,000kilogramsofresin,whatwouldbethedailytotalinventorycosts,
EXCLUDINGthecostoftheresin?
A.$5
B.$10
C.$20
D.$25
E.$40
Multiplytheaverageinventorybytheholdingcost.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
153.Whatistheeconomicorderquantityforresin?
A.50kilograms
B.100kilograms
C.250kilograms
D.500kilograms
E.1,000kilograms
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
154.Afirmstocksaseasonalitemthatitbuysfor$22/unitandsellsfor$29unit.Duringthe
season,dailydemandcanbedescribedusingaPoissondistributionwithameanof2.4.Because
ofthenatureoftheitem,unitsremainingatthecloseofbusinesseachdaymustberemovedata
costof$2each.Whatistheoptimumstockinglevel,andwhatistheeffectiveservicelevel?
Cs=$29$22=$7
Ce=$22+$2=$24
ForaPoissondistributedvariablewithameanof2.4,thisSLfallsbetweenthecumulative
probabilitiesassociatedwithlevelsof0and1unit.Hence,stock1unit.
Feedback:Atthatstockinglevel,the(effective)servicelevelis.308.
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
155.Joe'sCoffeeShoppehasfreshdoughnutsdeliveredeachmorning.Dailydemandforplain
doughnutsisapproximatelynormalwithameanof200andastandarddeviationof15.Joepays
$1.20perdozenandhasastandingorderfor16dozen.Joeandthestaffeatanyleftovers.What
istheimpliedshortagecost?
=15
Ce=$1.20perdozen
Thestockinglevelis12(16)=192,whichimpliesaservicelevelof.2981.
If.2981=
dozen.
andCe$1.20perdozen,solvingforCsleadstoanestimatedCsof$.51per
Feedback:Giventheimpliedservicelevelandtheexcesscost,solvefortheimpliedshortage
cost.
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
156.ArestaurantpreparesPekingDuckdailyatacostof$18perduck.Eachduckgenerates
revenueof$47ifsold.DemandforPekingDuckcanbedescribedbyaPoissondistributionwith
ameanof4.2ducksperday.Unsoldducksattheendofeachdayareconvertedtoducksoupat
anadditionalcostof$5overandabovetheresultingvalueassoup.Howmanyducksshouldbe
preparedeachday?
SL=
=.5577
ForaPoissondistributedvariablewithameanof4.2,thisSLfallsbetweenthecumulative
probabilitiesassociatedwithlevelsof3and4units.Hence,stockfourducks.
Feedback:Stockingfourducksleadstoan(effective)servicelevelof.59.
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
157.Amachineisexpectedtouseapproximatelythreesparepartsduringitsusefullife.The
sparescost$200eachandhavenosalvagevalueorotheruse.Themanagerhasorderedfive
spares.AssumingaPoissonusagerate,whatrangeofshortagecostisimplied?
Ce=$200
Mean=3(Poisson)
Cs=?
AssumingaPoissondistributedvariablewithameanof3,ifstocking5unitsisoptimal,this
impliesthattheoptimalservicelevelmustbebetween.815and.916
Thus,
SolvingforCsyieldsarangeofCsfrom$881.08to$2,180.95.
Feedback:Solveforshortagecostthatleadstoaservicelevelfallingwithintherange(inclusive)
of0.815and0.916.
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
158.Amanagerintendstoorderanewmachineandmustnowdecideonthenumberofspare
partstoorderalongwiththemachine.Thepartscost$400eachandhavenosalvagevalue.The
managerhascompiledafrequencydistributionfortheprobableusageofspareparts,asshown.
Forwhatrangeofshortagecostswouldstockingonesparepartconstituteanoptimaldecision?
Numberof
Ce=$400
Inorderforastockinglevelofoneparttobeoptimal,theservicelevelmustfallintherange.08
to.38(seefrequencydistribution).Thus,
Settingtheservicelevelratioequalto.08yieldsCs=$34.78.
Settingtheservicelevelratioequalto.38yieldsCs=$245.16.
Hencetherangeofshortagecostsforastockinglevelofonetobeoptimalis$34.78to$245.16.
of0.08and0.38.
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
TheCornerNewsstandhasdemandforacertainweeklymagazinethatcanbeapproximatedby
aPoissondistributionwithameanof9.0.Magazinesarepurchasedfor$1.50.
StevensonChapter13
159.Ifunsoldcopiescanbereturnedforhalfcreditandtheownerstockstencopies,whatisthe
impliedrangeofshortagecost?
Ce=$.75
GivenPoissondistributeddemandwithameanof9.0,theoptimumservicelevelmustbe
between.587and.706.
Servicelevelof.587impliesCs=$1.07
Servicelevelof.706impliesCs=$1.80
Thustherangeofshortagecostsimpliedbystockingtencopiesis$1.07to$1.80.
of0.587and0.706.
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
160.Ifunsoldcopiesmustbedestroyedandcopiessellfor$4.00each,findtheoptimum
stockinglevel.
Ce=$1.50Cs=$4.001.50=$2.50
GivenPoissondistributeddemandwithameanof9.0,thisSLfallsbetween9and10units.
Thus,wewouldstock10copies.
Feedback:Comparetheservicelevelratiotothecumulativedistributionofdemandwith
Poissondistributeddemandwithameanof9.0.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
161.Ifunsoldcopiescanbereturnedforhalfcreditandcopiessellfor$4.25each,findthe
optimalstockinglevel.
Ce=$1.50/2=$.75Cs=$4.251.50=$2.75
GivenPoissondistributeddemandwithameanof9.0,thisSLfallsbetween10and11units.
Stock11copiesofeachissue.
Feedback:Comparetheservicelevelratiotothecumulativedistributionofdemandwith
Poissondistributeddemandwithameanof9.0.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
162.Demandforacomponentaverages80unitsperweek,withaweeklystandarddeviationof
demandof14units.Thecurrentsupplierofthiscomponentoffersafourweekleadtime.
Stockoutriskistobekeptat8%.Assumethatitcosts$50toholdoneunitininventoryfora
year.Supposetheannualcostfortheitemswouldbe$500higheriftheywerepurchasedfrom
anothervendor,butthatvendorwouldofferatwoweekleadtime.Woulditbebettertogowith
themoreexpensivebutmoreresponsivevendor?
Yes,usingthesecondvendorwouldbecheaperoverall.
Feedback:Requiredsafetystockforthecheaperbutslowervendorwouldbeapproximately39
units.Requiredsafetystockforthemoreexpensivebutfastervendorwouldbeapproximately
28units.The$550reductioninannualholdingcostswouldmorethanoffsetthegreaterexpense
inpurchasecosts.
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
ch14Key
1.Inleanoperations,inputresourcesarriveforprocessingonlyaftertheprecedingbatchhas
beencompleted.
TRUE
Whentheprecedingbatchhasbeencompleted,theworkstationauthorizesnewinputresourcesto
arrive.
Blooms:Remember
Difficulty:Easy
LearningObjective:1401Explainwhatismeantbythetermleanoperationssystem.
TopicArea:BuildingBlocks
2.AfunctioningMRPsystemisrequiredpriortoadoptingleanplanningandcontrolsystems.
FALSE
LeanplanningandcontrolcanbeimplementedwithouttheuseofMRP.
Blooms:Remember
Difficulty:Easy
LearningObjective:1405Outlinetheconsiderationsimportantinconvertingatraditionalmodeofoperationstoaleansystem.
3.Inaleanenvironment,anythingnotessentialtotheproductorprocessisviewedaswaste.
TRUE
Eliminatingsuchwasteiscentraltotheleanphilosophy.
Blooms:Remember
Difficulty:Easy
LearningObjective:1402Listeachofthegoalsofaleansystemandexplainitsimportance.
TopicArea:SupportingGoals
4.Theultimategoalofleanoperationsisasystemcharacterizedbythesmooth,rapidflowof
materials.
TRUE
Asmooth,rapidmaterialflowistheidealinaleanenvironment.
Blooms:Remember
Difficulty:Easy
5.Althoughinventoriesaremaintained,thegoalofleanoperationsistominimizesafetystock.
FALSE
Thegoalofleanoperationsistoeliminatesafetystock.
Blooms:Remember
Difficulty:Easy
6.Leanoperationsareunabletoeasilyhandlechangesofoutputorproductmix.
FALSE
Volumeorproductmixchangescaneasilyundermineasystembeingoperatedaccordingtolean
principles.
Blooms:Remember
Difficulty:Easy
LearningObjective:1404Identifythebenefitsofaleansystem.
7.Intheleanphilosophy,producingmorethantwoorderquantitiesrepresentswaste.
FALSE
Producingoneorderquantityinadvanceofdemandrepresentswaste.
Blooms:Understand
Difficulty:Medium
LearningObjective:1403Listandbrieflydescribethebuildingblocksoflean.
8.Thefourbuildingblocksofleanoperationsare:productdesign,processdesign,
personnel/organizationalelements,andmanufacturingplanningandcontrol.
TRUE
Thesearethebuildingblocksofleanoperations.
Blooms:Remember
Difficulty:Easy
9.Fastandsimplearetwocommonthreadsthatrunthroughthefourbuildingblocksoflean
operations.
TRUE
Streamlinedanderrorproofareleanideals.
Blooms:Remember
Difficulty:Easy
10.Valuestreammappingisatechniquefocusedonfindingnewwaysofaddingvaluefor
criticalstakeholderssuchascustomers.
FALSE
Valuestreammappingisavisualtoolusedtosystematicallyexaminetheflowofmaterialsand
information.
Blooms:Remember
Difficulty:Easy
LearningObjective:1407Describevaluestreammapping.
TopicArea:ValueStreamMapping
11.Ifafirm'sproductmixis60%ofproductAand20%eachofproductsBandC,anoptimal
mixmodelproductionschedulewouldbesuccessivesequencesofAAABC.
FALSE
AnoptimalschedulewouldbesuccessivesequencesofABACA.
Blooms:Remember
Difficulty:Medium
12.Qualityandhighlycapableproductionsystemsarerequirementsforthesuccessful
implementationofleanoperations.
TRUE
Thesehelppreventwaste.
Blooms:Remember
Difficulty:Medium
13.Thesmalllotsizingpolicyworkswellinasituationwherebothholdingcostsandsetupcosts
arehigh.
FALSE
Smalllotsizingisonlyworkablewhensetupcostsarelow.
Blooms:Remember
Difficulty:Hard
14.TheuseofsmalllotsizesinleanoperationsisinconflictwiththeEOQapproachsincesetup
coststendtobesignificantlyhigherthanholdingcosts.
FALSE
Thesearenotinconflict,sincewithlowsetupcoststheEOQleadstosmalllotsizes.
Blooms:Remember
Difficulty:Medium
15.Abasicrequirementforoperatingwithlowinventoriesinleansystemsisthatmajorsystem
problemsmustalreadyhavebeensolvedandnewproblemswillbesolvedastheyappear.
TRUE
Unlesstheseproblemsaresolved,stepsrequiredtoworkwithlowinventoriesareeconomically
infeasible.
Blooms:Remember
Difficulty:Hard
16.Abenefitofsmalllotsizesinleansystemsisthateachproductisproducedlessfrequently.
FALSE
Productversionsareproducedmorefrequentlyinleansystems.
Blooms:Understand
Difficulty:Easy
17.Intheleanphilosophy,thelargerthelotsize,theeasieritistoschedule.
FALSE
Intheleansystem,itemswithlargelotsizestendtobescheduledlessfrequently.
Blooms:Understand
Difficulty:Easy
18.Setuptimeanditsassociatedcostcanoftenbereducedbytheuseofgrouptechnology.
TRUE
Grouptechnologycanhelpwithreducingsetuptimeanditsassociatedcost.
Blooms:Remember
Difficulty:Medium
19.Leansystemsoftenuselayoutsthatarebasedongrouptechnologyproductrequirements.
TRUE
Grouptechnologycanhelpwithreducingsetuptimeanditsassociatedcost.
Blooms:Remember
Difficulty:Medium
20.Thegoalofleanoperationsistoproduceoutputusingfewerresourcesthantraditional
planningsystems.
TRUE
Economizingonresourceusageisattheheartofleanoperations.
Blooms:Remember
Difficulty:Easy
21."Autonomation"indicatesthatthefirmisattemptingtoreduceitsdependenceonautomated
equipment.
FALSE
Autonomationinvolvestheautomaticdetectionofdefectsduringproduction.
Blooms:Remember
Difficulty:Easy
22."Preventivemaintenance"isadditionalmaintenancedoneimmediatelyafterabreakdownhas
occurredtohelppreventanyfurtherbreakdowns.
FALSE
Preventativemaintenanceisdoneonaregularlyscheduledbasistohelppreventbreakdowns.
Blooms:Remember
Difficulty:Easy
23.Intheleanapproach,inventoriesarereducedgradually,insteadofeliminatinginventoriesas
rapidlyaspossible.
TRUE
Inventoriesarereducedasproblemsaresolved.
Blooms:Remember
Difficulty:Easy
24.Oneproblemwithleanoperationsisthattheycanleadtomuchfrustrationand
disappointmentofpeopleontheshopfloorduetotheneedforcontinuouslymonitoringand
expeditingresourceavailability.
TRUE
Workersarechallengedtotakeonmoreresponsibilityfortheprocessinleanoperations.
Blooms:Remember
Difficulty:Medium
LearningObjective:1406Pointoutsomeoftheobstaclesthatmightbeencounteredwhenconvertingtoaleansystem.
TopicArea:TransitioningtoaLeanSystem
25.Arealadvantageoftheleanphilosophyisthereductionofcoordinationeffortrequired.
FALSE
Substantialcoordinationeffortisrequiredintheleanphilosophy.
Blooms:Understand
Difficulty:Easy
26.Theleanphilosophyrecognizesthatsomeworkinprocessinventoriesareanecessary
investmenttoallowforsmoothworkflow.
FALSE
Theleanphilosophyseessmoothflowsenabledbyworkinprocessinventoryasinherently
wasteful.
Blooms:Understand
Difficulty:Medium
27.Preventivemaintenancewilleliminatetheneedtocarrysuppliesofspareparts.
FALSE
Theneedtocarrysparepartsisnoteliminatedbypreventativemaintenance.
Blooms:Remember
Difficulty:Hard
28.Afundamentaltenetoftheleanphilosophyisthatworkersarepaidbasedonseniority.
FALSE
Theleanphilosophyhasnotenetbasedonhowworkersaretobepaid.
Blooms:Remember
Difficulty:Easy
29.Inleanoperations,aresponsibilityofthecrosstrainedworkeristocheckthequalityofthe
workofothers.
TRUE
Workerresponsibilitiesaregreaterinleanoperations.
Blooms:Remember
Difficulty:Medium
30.Inleanoperations,whenworkiscompletedatoneworkcenter,itisimportantto
immediatelymovethecompletedworktothenextworkcentertominimizeidletime.
FALSE
Workisonlymoveddownstreamwhensuchworkhasbeenauthorized;thusitisimportantto
movefinishedworkdownstreambecausethedownstreamoperationmightbestarvedforinputs.
Blooms:Understand
Difficulty:Medium
31.Ina"pullsystem,"aquantityofinventoryinfrontofaworkstationindicatesproblemsatthat
workstation.
TRUE
Ifthatworkstationisnotauthorizingproductionupstream,soonupstreamproductionwillcease.
Blooms:Remember
Difficulty:Hard
32.LimitedWIPlowersinventorycarryingcostsbutreducesflexibility.
FALSE
LimitedWIPactuallymakesthesystemmoreflexible.
Blooms:Remember
Difficulty:Medium
33.Engineeringchangescanbeverydisruptivetosmoothoperationsandshouldnotbemadein
thesixmonthperiodfollowingintroductionofanewproduct.
FALSE
Engineeringchangesshouldbeminimizedbydoingabetterjobofproduct/processdesignbefore
theproductisinproduction.
Blooms:Remember
Difficulty:Medium
34.KanbanistheJapanesetermforautonomation.
FALSE
KanbanisaJapanesetermfor"sign"or"visiblerecord."
Blooms:Remember
Difficulty:Medium
35.Increasedsetuptimesequalincreasedworkinprocessinventories.
TRUE
Withhighersetuptimes,batchquantitiesandworkinprocessinventoryincreases.
Blooms:Remember
Difficulty:Medium
36.Kanbanfocusesonspecificpartnumbers;CONWIPdoesnot.
TRUE
ThismakesCONWIPmoresuitableforamixedproductenvironment.
Blooms:Remember
Difficulty:Hard
37.Leansystemstypicallyrequirethatsuppliersbeabletoprovidelargelotsatperiodic
intervals.
FALSE
Leansystemsneedsuppliersmakingfrequentdeliveriesofsmalllots.
Blooms:Remember
Difficulty:Medium
38.Leanpurchasingrequiresfrequentcontractbiddingbymultiplesourcestoensurethebuyer
ofcompetitiveprices.
FALSE
Leanpurchasingrequirescollaborativerelationshipswitharelativelysmallnumberofsuppliers.
Blooms:Remember
Difficulty:Medium
39.Onewayofreducingthenumberofsupplierstotheorganizationistolimitcontactstoonly
oneortwotiersofsuppliers.
FALSE
Leanoperationslimitcontacttoonlyafirsttierofsuppliers.Thesearethenresponsiblefor
sourcingatthesecondtierandbeyond.
Blooms:Remember
Difficulty:Easy
40.OnemajordifferencebetweentheuseofkanbanandMRPIIinschedulingtheproductstobe
builtisthatkanbanisprimarilyamanualsystemwhileMRPIIusescomputers.
TRUE
Kanbancanbeimplementedquitewellwithoutcomputers.
Blooms:Remember
Difficulty:Hard
41.Abenefitoftheleanphilosophyistheflexibilitytorespondquicklytochangingcustomer
requirements.
TRUE
Leansystemscanbemoreresponsivetochangingcustomerrequirements.
Blooms:Remember
Difficulty:Easy
42.Abenefitofleansystemsisthatleadtimesareincreasedallowingmoretimeforprocessing.
FALSE
Leadtimesarereducedinleansystems.
Blooms:Remember
Difficulty:Medium
43.Asuccessfulconversiontoaleansystemrequiresthateveryvendoruseleanapproaches
priortotheorganization'simplementation.
FALSE
Successfulconversiontoaleansystemtendstorequireamorecooperativerelationshipwith
vendors.
Blooms:Remember
Difficulty:Medium
44.Thesingleminuteexchangeofdieisasystemforreducingdefectiveproduct.
FALSE
Singleminuteexchangeofdiereducessetupcostsandthereforelotsizes.
Blooms:Remember
Difficulty:Hard
45.Inabalancedsystem,cycletimeisequaltoTakttime.
TRUE
Takttimeisequaltocycletimeinabalancedsystem.
Blooms:Remember
Difficulty:Hard
46.Itisimportanttolowerthewater(inventory)completelytoexposealltherocks(problems).
FALSE
Inventoryonlyneedstobeloweredmodestlytoexposethemostpressingproblems.Overtime,
withsubsequentreductions,allproblemswillbeuncovered.
Blooms:Understand
Difficulty:Medium
47.Successfulleanimplementationrequiresmuchmorethanslogansandidealisticgoalssuchas
zeroinventoriesandzerodefects.
TRUE
Leanrepresentsafundamentalshiftinthephilosophyoftheorganization,requiringchangesina
widevarietyofareas.
Blooms:Understand
Difficulty:Easy
48.Leanconceptsincludelargelotstotakeadvantageoftheeconomiesofscale.
FALSE
Leanconceptsincludesmalllotstoavoidholdingcostsandassociatedwastes.
Blooms:Remember
Difficulty:Easy
49.Valuestreammappingisconcernedstrictlywiththeflowofmaterialsthroughaproduction
system.
FALSE
Valuestreammappingalsolooksatinformationflows.
Blooms:Remember
Difficulty:Medium
50.Foracompanywithaproductmixof40%ofproductAand30%eachofproductsBandC,
whichofthefollowingmixedmodelsequencesmostreflectstheleanphilosophy?
A.AABBCCAABC
B.ABCABCABCA
C.AAAABBBCCC
D.BCABCABCAB
E.BBBAACCCAA
Thissequencematchesthedemandratemostclosely.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
51.Theleanphilosophysuggeststhatworkersare_________.
A.Assets
B.Liabilities
C.Interchangeable
D.Replaceable
E.Tobephasedout
Thisisafundamentaltenetoftheleanphilosophy.
Blooms:Remember
Difficulty:Medium
52.Theultimategoalofleanoperationsistohave:
A.noinprocessinventories
B.crosstrainedworkerscapableofhandlingeveryprocess
C.asmooth,rapidflowofmaterialsthroughthesystem
D.nosetuptimes
E.alloftheabove
Thisflowshouldbeperfectlybalancedwiththedemandrate.
Blooms:Remember
Difficulty:Medium
53.Whichoneofthefollowingisnotoneofthebuildingblocksthatisthefoundationofthelean
philosophy?
A.productdesign
B.processdesign
C.personnel/organizationalelements
D.manufacturingplanningandcontrol
E.kanban
Kanbanisnotaphilosophicalbuildingblockbutatoolwhoseusageoftenreflectsthelean
philosophy.
Blooms:Understand
Difficulty:Medium
54.Buildingupaninventoryofstandardpartsormodulesinsteadofimmediatelyproducingthe
finishedenditemsistheessenceof:
A.delayeddifferentiation
B.kanban
C.autonomation
D.andon
E.matrixmanagement
Delayeddifferentiationreducessetupcostswithrespecttothefinisheditem.
Blooms:Remember
Difficulty:Medium
55.Whichofthefollowingwouldyounotexpecttoseeinaleanenvironment?
A.aflexiblesystem
B.minimuminventory
C.littlewaste
D.reducedsetuptimes
E.asignificantnumberofdailyschedulechanges
Dailyschedulechangeswouldinterruptthesmoothflowthatiscentraltoleanproduction.
Blooms:Remember
Difficulty:Medium
56.Thecomprehensiveapproachusedinleansystemstodealwithqualityincludes:
A.designingqualityintoproductsandprocesses
B.insistingvendorsprovidehighqualitymaterials
C.makingworkersresponsibleforproducinghighquality
D.A,BandC
E.100%inspectionofrawmaterials,workinprocessandfinishedgoods
Completeinspectionwouldbewastefulintheleanphilosophy.
Blooms:Remember
Difficulty:Easy
57.Whichofthefollowingisnotabenefitofsmalllotsizesinleansystems?
A.Inprocessinventoryisconsiderablyless.
B.Eachproductisproducedlessfrequently.
C.Carryingcostsarereduced.
D.Thereislessclutterintheworkplace.
E.Inspectionandreworkcostsareless.
Eachproductisproducedmorefrequentlywithsmalllotsizes.
Blooms:Remember
Difficulty:Medium
58.Intheleanphilosophy,theideallotsizeis:
A.theeconomicorderquantity
B.theeconomicrunsize
C.oneunit
D.thecapacityofthestandardcontainer
E.N=(DT(1+X))/C
Alotsizeofoneunitisidealinaleanenvironment.
Blooms:Remember
Difficulty:Easy
59.Whichofthefollowingdoesnotcontributetoreducedsetuptimeandcost?
A.standardizedsetuptools
B.standardizedsetupequipment
C.customsetupproceduresforeachproduct
D.useofmultipurposeequipmentorattachments
E.useofgrouptechnology
Customsetupswouldincreasecomplexityandthereforesetuptimeandcost.
Blooms:Understand
Difficulty:Medium
60.Aconveyance__________signalspartsmovement.
A.Request
B.Routing
C.Barcode
D.Kanban
E.Kazian
Aconveyancekanbanwouldauthorizeabatchofpartstobemoved.
Blooms:Remember
Difficulty:Medium
61.Thetermthatreferstotheautomaticdetectionofdefectsis:
A.kaizen
B.kanban
C.autonomation
D.automation
E.100%inspection
Automaticallydetectingdefectsiskeytoreducingwaste.
Blooms:Remember
Difficulty:Easy
62.Abasicrequirementforoperatingwiththelowinventoriespresentinleansystemsis:
A.Inventoryspacemustbeincreased.
B.Inventoryinvestmentmustbeincreased.
C.Majorproblemsmustbeidentified.
D.Majorproblemsmusthavebeensolved.
E.Inventoriesmustbereducedrapidly.
Identifyingproblemsdoesnotfacilitatelowinventoryoperations.Solvingproblemsdoes.
Blooms:Remember
Difficulty:Hard
63.Whichofthefollowingisnotcharacteristicofpreventivemaintenanceinleansystems?
A.maintainingequipmentingoodoperatingcondition
B.replacingpartswhentheyarewornbutbeforetheyfail
C.workersmaintainingtheirownequipment
D.eliminatingsuppliesofsparepartstoreducecapitalinvestment
E.perceivingbreakdownsasanopportunityforimprovement
Reducingsparepartssuppliesmakesthesystemmorevulnerabletoabreakdown.
Blooms:Remember
Difficulty:Hard
64.TheFiveS'sdon'tinclude_______.
A.Sort
B.Straighten
C.Sanitize
D.Sweep
E.Standardize
SanitizeisnotoneofthefiveS's.
Blooms:Remember
Difficulty:Hard
65.TheKaizenphilosophyappliesto________.
A.Employeedevelopment
B.Safetystock
C.Waste
D.SupplyChainManagement
E.MRPIII
Throughcontinuousimprovement,moreandmoreproblemsareovercomeandthesystemcanbe
madeleanerandleaner.
Blooms:Remember
Difficulty:Medium
66.Akanbancardisusedtosignalthat:
A.workisneededattheworkcenter
B.workisreadytobemovedtothenextstation
C.aworkerhasrunoutofpartsneededforfurtherprocessing
D.amachinehasbrokendownandneedsimmediateattention
E.amachineisreadyforpreventivemaintenance
Kanbancardssignalauthorizationfromdownstreamworkcenters.
Blooms:Remember
Difficulty:Hard
67.Withregardtosuppliers,leansystemstypicallyrequire:
A.deliveryoflargelotsatregularintervals
B.buyerinspectionofgoodsandmaterials
C.multiplesourcesfromwhichtopurchase
D.longtermrelationshipsandcommitments
E.thelowestpricepossible
Longtermrelationshipshelpensurethatsuppliersbecomepartnersintheleanfirm'swaste
reductionefforts.
Blooms:Remember
Difficulty:Medium
68.Whichofthefollowingischaracteristicoftheleanphilosophy?
A.Inventoriesareanasset.
B.Lotsizesareoptimizedbyformula.
C.Vendorsarecoworkers,essentiallyotherdepartmentsofourorganization.
D.Queuesareanecessaryinvestment.
E.alloftheabove
Longtermrelationshipshelpensurethatsuppliersbecomepartnersintheleanfirm'swaste
reductionefforts.
Blooms:Remember
Difficulty:Medium
69.TheactivitiescontrolledinthesamewaybykanbanandMRPIIisthedeterminationof:
A.ratesofoutput
B.productstobebuilt
C.materialsrequired
D.capacityrequired
E.feedbackinformation
BothkanbanandMRPIIareusedtosignalproduction.
Blooms:Remember
Difficulty:Hard
70.Processdesignsupportingleandoesn'tinclude______.
A.Productionflexibility
B.Duplicatefacilities
C.Setuptimereduction
D.Minimalinventorystorage
E.Smalllotsizes
Facilitiesduplicationwouldbeinherentlywasteful.
Blooms:Remember
Difficulty:Hard
71.Whichofthefollowingquestionsisnotansweredbyvaluestreammapping?
A.Wheredoeswasteoccur?
B.Whichprocessesorsubprocessesexhibitthemostvariability?
C.Wherearethebestopportunitiestoextractmorevaluefromcustomers?
D.Whereareprocessbottlenecks?
E.Wheredoerrorsoccur?
Valuestreammappingisaprocessfocusedtool.
Blooms:Understand
Difficulty:Easy
72.Asuccessfulconversiontoaleansystemrequiresthattheconversion:
A.bedoneasquicklyaspossible
B.beginatthestartoftheprocessandworkforward
C.convertvendorstoleanasoneofthelaststeps
D.reducesetuptimesasoneofthelaststeps
E.alloftheabove
Afirmcanbecomeleanerandleanerwithitsvendorsdoingso.Onlyinthelaststagesdoesit
becomeimportantforvendorsthemselvestobecomelean.
Blooms:Remember
Difficulty:Medium
73.Apotentialobstacletoconversiontoaleansystemis:
A.lackofmanagementcommitment
B.lackofworkercooperation
C.supplierresistance
D.alloftheabove
E.insufficientspacetostoretheincreasedinventories
Inventorieswillnotincreaseinaleanconversion.
Blooms:Remember
Difficulty:Easy
74.Asystemoflightsusedateachworkstationtosignalproblemsorslowdownsis:
A.commandandcontrolcenter
B.automation
C.andon
D.pullsystem
E.kanban
Andonfocusesattentiononwhereintheprocessproblemsare.
Blooms:Remember
Difficulty:Easy
75.Whichofthefollowingcontributestothecompetitiveadvantageenjoyedbyfirmsusinglean
production?
A.Backupemployeestocoverforabsenteeism
B.100%inspectiontoremovedefects
C.Dedicatedequipmenttoreduceunitcosts
D.Safetystockstopreventstockouts
E.Greaterflexibilitytocopewithchange
Firmsthatuseleanproductioncanbecomemoreflexiblerelativetotheircompetitors.
Blooms:Understand
Difficulty:Medium
76.Anoperationsstrategyreflectingtheleanphilosophyofproductionshouldrecognizethat
lean:
A.ismostsuitedfornonrepetitivemanufacturing
B.cannotbeimplementedsequentially
C.requiresawholesalecommitmentfromtheoutset
D.mayprovideacompetitiveadvantage
E.alloftheabove
Leanisnotforeveryfirmandeverystrategy.
Blooms:Remember
Difficulty:Hard
77.Withregardtosuppliers,leansystemstypicallyinvolve:
A.deliveryoflargelotsonshortnotice
B.thehighestqualityatthelowestprice
C.longtermrelationships
D.multiplesupplierstoassurecontinuousavailability
E.dedicatedstagingareasformaterial
Longtermrelationshipstypicallyarenecessarytomakethevendorapartnerintheleaning
effort.
Blooms:Remember
Difficulty:Medium
78.AcommonobjectiveofbothMRPandtheleanphilosophyisto:
A.smoothproduction
B.minimizeinventory
C.obtainhighquality
D.reduceoverhead
E.eliminateinventory
MRPandtheleanphilosophyaresimilarinthisobjective.Theydiffersubstantiallyinhowthey
pursueit.
Blooms:Understand
Difficulty:Medium
79.Theultimateobjectiveinaleansystemis:
A.lowtomoderatelevelsofinventory
B.highquality,zerodefects
C.minimalwaste(lessthan6%)
D.balancedandrapidflow
E.alloftheabove
Balancedandrapidflowiskeytobeingawastefreesystem.
Blooms:Remember
Difficulty:Medium
80.TheAllSeasoningsCompanyuses3,200glassjarsatoneofitsjarfillingworkstationseach
eighthoursofproduction.Thecycletimeforastandardcontainer,whichholds90jars,averages
45minutes.Ifmanagementusesanefficiencyfactoroftwentypercent,howmanycontainers
shouldbeused?
4containers
Feedback:GivenD=3200/8=400jarsperhour
T=45/60=.75hour
X=.20
C=90jars
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
81.TheFourStarPublishingCompanyusessixtyreamsofpapereachhouratoneofitshigh
speedprintingstations.Thecycletimeforastandardcontainer,whichholds15reamsofpaper,
averagesfortyminutes.Ifmanagementhasdecidedtousethreecontainers,whatefficiency
factorwasapplied?
12.5%
Feedback:GivenN=3containers
D=60reamsperhour
T=40/60=2/3hour
C=15reams
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
82.Aproductionsystemuseskanbancardstocontrolproductionandmovementofparts.One
workcenterusesanaverageof40piecesperhourofacertainpart.Standardcontainershold10
parts.Thecycletimeforpartscontainersisabout36minutes.Managementhasassignedan
efficiencyfactorof.20tothisworkcenter.Howmanycontainersshouldbeusedtosupportthis
operation?
3containers
Feedback:GivenD=40/hour
T=0.6hours,X=0.20andC=10,therefore,
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
83.Aproductioncelluses240poundsofplasticresineach8hourday.Resinistransportedin
drumsthathold100poundseach.Thematerialisobtainedfromanearbysupplier,andhasa12
hourcycletime.Anefficiencyfactorof.15hasbeenassignedtothiscell.Whatistheoptimum
numberofcontainerstosupportthisoperation?
5containers
Feedback:GivenD=240/8=30pounds/hour
T=12hours
C=100pounds
X=0.15
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
84.Whenleanisusedinthecontextofservices,whichofthefollowingismostoftenthefocus?
A.thelaborcontentoftheservice
B.thetimeneededtoperformaservice
C.theinventorytiedupintheservice
D.theequipmentusedintheservice
E.suppliersofinputstotheservice
Thisisbecausespeedisoftenanimportantorderwinnerforservices.
Blooms:Remember
Difficulty:Easy
TopicArea:LeanServices
85.Whichofthefollowingwouldnotcontributetotheleaningofservices?
A.improvethereliabilityofvendors
B.increasetheflexibilityoftheservicesystem
C.haveserviceworkershandlemultipletasks
D.standardizetheserviceoutput
E.improvetheserviceprocess
Havingserviceworkershandlemultipletasksoftenmakesthesystemlesslean.
Blooms:Understand
Difficulty:Medium
TopicArea:LeanServices
86.Havingavendorberesponsibleformanagingtherestockingofinventoryiswhatismeantby
theterm___________.
A.JITII
B.MRPII
C.SCMI
D.EOQIII
E.POQII
JITIIisalsoknownasvendormanagedinventory.
Blooms:Remember
Difficulty:Easy
TopicArea:JITII
87.Becausetheleanphilosophyissoconsequentialcompetitively,firmsareoftenadvisedto
adoptit________.
A.withproductsintheintroductionphaseoftheirlifecycle
B.withtheirvendorsfirst
C.completelyallatonce
D.sequentiallyovertime
E.globallybeforelocally
Agradualadoptionofleanoftengivesaclearerpictureofitsbenefitsanddrawbacks.
Blooms:Remember
Difficulty:Easy
88.Previouslymanagementcalculatedthenumberofkanbancardsallowedbyusingavalueof
1.3forX.Assumingnothingelse(e.g.,usagerates,containercapacities,etc.)whichofthe
followingvaluesforXwouldindicatemanagement'sbelievingthatthesystemhasbecomemore
efficient?
A.2.6
B.2.3
C.1.5
D.1.4
E.1.2
DecreasingvaluesforXindicate,everythingelsebeingequal,asystemthatisimprovingin
efficiency.
Blooms:Understand
Difficulty:Easy
ch14sKey
1.Thegoalofmaintenanceistominimizecost.
FALSE
Thegoalofmaintenanceistokeeptheproductionsystemingoodworkingorderatminimalcost.
Blooms:Understand
Difficulty:Easy
LearningObjective:14s01Explaintheimportanceofmaintenanceinproductionsystems.
StevensonChapter14S...#1
2.Thegoalofmaintenanceistomaintaintheproductivesystemingoodworkingorderwhile
minimizingoreliminatingthecostofpreventivemaintenance.
FALSE
Thegoalofmaintenanceistokeeptheproductionsystemingoodworkingorderatminimalcost.
Blooms:Understand
Difficulty:Medium
3.Breakdownmaintenanceincludesactivitiessuchasequipmentinspectionandadjustment.
FALSE
Breakdownmaintenanceoccursafteraproblemhasoccurred.
Blooms:Understand
Difficulty:Easy
LearningObjective:14s04Explainbreakdownmaintenanceandnamethekeyissuesassociatedwithit.
4.Degreeoftechnologyisafactoraffectingthedecisionofhowmuchpreventivemaintenanceis
desirable.
TRUE
Theageandconditionoffacilitiesandequipment,thedegreeoftechnologyinvolved,thetypeof
productionprocess,andsimilarfactorsenterintothedecisionofhowmuchpreventive
maintenanceisdesirable.
Blooms:Understand
Difficulty:Easy
LearningObjective:14s03Discusspreventivemaintenanceandthekeyissuesassociatedwithit.
5.Breakdownmaintenanceisbestperformedonaregularlyscheduledbasis.
FALSE
Breakdownmaintenanceoccursonlyafterabreakdown.
Blooms:Understand
Difficulty:Medium
6.Onebasisforschedulingpreventivemaintenanceispassageoftime.
TRUE
Preventativemaintenancecanbescheduledsimplybythepassageoftime.
Blooms:Understand
Difficulty:Medium
TopicArea:PreventativeMaintenance
7.Ideally,preventivemaintenancewillbeperformedbeforeabreakdownorfailure.
TRUE
Thiswillresultinthelongestpossibleuseoffacilitiesorequipmentwithoutabreakdown.
Blooms:Understand
Difficulty:Medium
LearningObjective:14s02Describetherangeofmaintenanceactivities.
8.Inthebroadestsense,preventivemaintenanceextendsbacktotheinstallationstageof
equipmentandfacilities.
FALSE
Inthebroadestsense,preventivemaintenanceextendsbacktothedesignandselectionstageof
equipmentandfacilities.
Blooms:Understand
Difficulty:Medium
9.Paretoanalysis(usingthe80/20rule)isonemethodofdeterminingwhenpreventive
maintenanceactivitiesshouldbeperformed.
FALSE
Paretoanalysisisamethodforprioritizingbreakdownprograms.
Blooms:Understand
Difficulty:Hard
LearningObjective:14s05StatehowtheParetophenomenonpertainstomaintenancedecisions.
TopicArea:BreakdownPrograms
10.Intheareaofmaintenance,theParetophenomenonisreflectedinthefactthat,regardlessof
problemclassification,allequipmentwilljustifyaboutthesameexpense.
FALSE
AParetophenomenoninsuchsituationswouldimplythatarelativelyfewpiecesofequipment
willbeextremelyimportanttothefunctioningofthesystem,therebyjustifyingconsiderable
effortand/orexpense.
Blooms:Understand
Difficulty:Hard
11.Proactivemaintenanceisperiodic.
TRUE
Periodicmaintenanceoccursbeforeproblemsdo.
Blooms:Understand
Difficulty:Medium
12.Itisbesttoreplaceafailingpieceofequipmentwithonethatwillhaveidenticalcapabilities
astheequipmentbeingreplacedsincewearealreadyfamiliarwiththatmachine.
FALSE
Sometimesitisthecasethatnewequipmentmeansthatemployeesmustberetrained,butthis
doesn'tnecessarilymeanthatnewerequipmentshouldbepassedover.
Blooms:Understand
Difficulty:Easy
TopicArea:Replacement
13.Cuttingpreventivemaintenanceinhalfwillprobablydoublethenumberofbreakdowns.
FALSE
Breakdownsmaybecomemorelikely,buttheywouldn'tnecessarilydouble.
Blooms:Understand
Difficulty:Easy
14.Ifoneoperatorperformingpreventivemaintenancerequirestwohourstocompletethejob,
thentwooperatorsworkingtogethershouldcompletethepreventivemaintenanceinonehour.
FALSE
Twooperatorsarenotnecessarilytwiceasproductiveasone.Spacelimitations,forexample,can
reducethevalueaddofthesecondoperator.
Blooms:Understand
Difficulty:Medium
15.Maintenanceactivitiesareoftenorganizedintothetwogroups:
A.breakdownmaintenanceandpreventivemaintenance
B.breakdownmaintenanceandpredictivemaintenance
C.preventivemaintenanceandpredictivemaintenance
D.equipmentmaintenanceandbreakdownmaintenance
E.equipmentmaintenanceandbuildingsmaintenance
Thesearethetwogroupsintowhichmaintenanceisoftenorganized.
Blooms:Understand
Difficulty:Easy
16.Breakdownmaintenanceis_____________;preventativemaintenanceis_________.
A.reactive;proactive
B.proactive;reactive
C.expensive;inexpensive
D.inexpensive;expensive
E.easy;hard
Proactivemaintenanceispreventativemaintenance.
Blooms:Understand
Difficulty:Easy
17.Thegoalofmaintenanceistomaintaintheproductivesystemingoodworkingorderwhile
minimizing:
A.totalpreventivemaintenancecosts
B.totalbreakdownmaintenancecosts
C.totalmaintenancecosts
D.thedifferencebetweenpreventiveandbreakdowncosts
E.theratioofbreakdowntopreventivemaintenancecosts
Thecostofmaintenanceincludesthecostofmaintainingequipmentaswellasthecostof
breakdowns.
Blooms:Understand
Difficulty:Medium
18.___________ismostcloselyassociatedwithbreakdownmaintenance.
A.equipmentadjustments
B.equipmentcleaning
C.equipmentinspection
D.repairofbrokenparts
E.replacementofwornparts
Repairingbrokenpartsisprimarilypartofbreakdownmaintenance.
Blooms:Understand
Difficulty:Easy
19.Factorsaffectingthedecisionofhowmuchpreventivemaintenanceisdesirabletypically
includeallofthefollowingexcept:
A.ageofequipment
B.typeofproduct
C.degreeoftechnology
D.typeofproductionprocess
E.howcriticaltotheproductionprocess
Thetypeofproductdoesnottypicallyenterintothisquestion.
Blooms:Understand
Difficulty:Medium
20.Costofequipmentbreakdowndoesn'tinclude:
A.lossofoutput
B.costofidleworkers
C.damagetootherequipment
D.replacementcosts
E.potentialsafetyhazard
Thebreakdowncostbasicallyinvolvesthecostofrestoringamachinetoproduction.
Blooms:Understand
Difficulty:Easy
21.Theoptimumamountofpreventivemaintenanceiswhere:
A.Totalbreakdowncostsareaminimum.
B.Totalpreventivemaintenancecostsareaminimum.
C.Eachmaintenancecomponentcostisaminimum.
D.Totalmaintenancecostsareamaximum.
E.Totalmaintenancecostsareaminimum.
Totalmaintenancecostsincludepreventativemaintenancecostsaswellasbreakdownandrepair
costs.
Blooms:Understand
Difficulty:Medium
22.Thetypeofmaintenancewhichisperiodicinnatureis:
A.breakdownmaintenance
B.predictivemaintenance
C.preventivemaintenance
D.correctivemaintenance
E.alloftheabove
Preventativemaintenanceisroutine.
Blooms:Understand
Difficulty:Hard
23.Preventivemaintenanceisgenerallyscheduledonthebasisof:
A.plannedinspections
B.passageoftime
C.numberofoperatinghours
D.alloftheabove
E.noneoftheabove
Preventativemaintenanceisroutine.
Blooms:Understand
Difficulty:Medium
24.Ideally,preventivemaintenancewillbeperformed:
A.afteraplannedinspection
B.afterthepassageofaspecifiedperiodoftime
C.afterapredeterminednumberofoperatinghours
D.justpriortothestartoftheworkday
E.justpriortoabreakdownorfailure
Thiswillresultinthelongestpossibleuseoffacilitiesorequipmentwithoutabreakdown.
Blooms:Understand
Difficulty:Medium
25.Attemptingtodeterminewhenpreventivemaintenanceactivitiesshouldbeperformedis
called:
A.breakdownmaintenance
B.forecastivemaintenance
C.preventivemaintenance
D.predictivemaintenance
E.correctivemaintenance
Predictivemaintenanceisanattempttodeterminewhentoperformpreventivemaintenance
activities.
Blooms:Understand
Difficulty:Medium
26."Totalproductivemaintenance"isbestdescribedas:
A.avoidingallbreakdownmaintenance
B.doingagreatdealofpreventativemaintenancetotrytoavoidbreakdownmaintenance
C.aJITapproachtakingadvantageofcrosstraining
D.extendingpreventativemaintenancebacktodesign
E.noneoftheabove
ThisapproachisconsistentwithJITsystemsandleanoperations,whereemployeesaregiven
greaterresponsibilityforquality,productivity,andthegeneralfunctioningofthesystem.
Blooms:Understand
Difficulty:Hard
27.Inthebroadestsense,equipmentandfacilitiespreventivemaintenanceextendsbacktothe:
A.designandselectionstage
B.procurementstage
C.installationstage
D.pilottestingstage
E.implementationstage
Maintenanceproblemsaresometimesdesignedintoasystem.
Blooms:Understand
Difficulty:Medium
28.Themajorapproachesusedinplanstodealwithbreakdownsincludeallofthefollowing
except:
A.standbyequipment
B.inventoriesofspareparts
C.operatorrepairofminorproblems
D.readilyavailablerepairpersonnel
E.Allofthesearemajorapproaches.
Allofthesearemajorapproachesinbreakdownprograms.
Blooms:Understand
Difficulty:Hard
29.Intheareaofmaintenance,theParetophenomenonisreflectedinthefactthat:
A.Allequipmentjustifiesaboutthesameexpense.
B.Amajorityofequipmentwilljustifyconsiderableexpense.
C.Afewpiecesofequipmentwilljustifylittleexpense.
D.Afewpiecesofequipmentwilljustifyconsiderableexpense.
E.Nopieceofequipmentwilljustifymajorexpense;it'sbettertoreplace.
InsuchaParetophenomenon,manypiecesofequipmentwilljustifylittleeffortorexpense.
Blooms:Understand
Difficulty:Hard
30.Reactivemaintenanceis_____________maintenance.
A.Planned
B.Aftertheevent
C.Proactive
D.Predictive
E.Preventive
Theeventwouldbeabreakdown.
Blooms:Understand
Difficulty:Medium
31.Thetotalmaintenancecurve(preventivemaintenancecostplusbreakdownandrepaircost):
A.slopesupasthenumberofpreventivemaintenancesincrease
B.slopesdownasthenumberofpreventivemaintenancesincrease
C.startslow,increasesrapidlyandthendropsbackdownasthenumberofpreventive
maintenancesincrease
D.startshigh,dropsgraduallybutthengoesbackupasthenumberofpreventivemaintenances
increase
E.remainsrelativelyflatasthenumberofpreventivemaintenancesincrease
Forawhile,expendituresinpreventativemaintenancearemorethanoffsetbyreductionsin
breakdowncosts.
Blooms:Understand
Difficulty:Hard
32.Thefrequencyofbreakdownofapieceofequipmentpermonthisshowninthetable.The
costofabreakdownis$1,000andthecostofpreventivemaintenanceis$2,000permonth.
Assumethattheequipmentbreakdowncanbeavoidedifpreventivemaintenanceisperformed.
Shouldthemanagerusepreventivemaintenance,orwoulditbebettertofixtheequipmentwhen
itbreaksdown?
Preventativemaintenancewouldofferamonthlysavingsof$550,soitwouldberecommended.
Feedback:Theexpectednumberofbreakdownswithoutpreventivemaintenanceis:
(0x0.1)+(1x0.15)+(2x0.20)+(3x0.30)+(4x0.15)+(5x0.10)=2.55
Expectedmonthlybreakdowncostistherefore2.55*$1,000=$2,550.
Aspreventivemaintenancewillcostonly$2,000permonth,itoffersamonthlysavingsof$550.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
33.Theaveragetimebeforebreakdownofamachineisnormallydistributedandhasameanof7
weeksandastandarddeviationof1.5weeks.Ifbreakdowncostaverages$2,500andpreventive
maintenancecosts$500,whatistheoptimalpreventivemaintenanceinterval?
Anoptimalmaintenanceintervalisapproximatelyevery5weeks.
Feedback:Theratioofpreventivecosttothesumofpreventiveandbreakdowncostis:
TheZvalueassociatedwiththisratio(treatedasacumulativeprobability)is0.97.Thiscanbe
usedtofindtheoptimalmaintenanceinterval:
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
34.Theaveragetimebeforebreakdownofamachineisnormallydistributedandhasameanof9
weeksandastandarddeviationof1.5weeks.Ifbreakdowncostaverages$1,500andpreventive
maintenancecosts$500,whatistheoptimalpreventivemaintenanceinterval?
A.3.8weeks
B.8.4weeks
C.9.6weeks
D.6.9weeks
E.7.2weeks
Dividethemaintenancecostbythebreakdowncost.Findavaluefortheinterval(giventhemean
andstandarddeviationoftimebeforebreakdown)suchthatitscumulativeprobabilityequalsthis
ratio.
AACSB:Analytic
Blooms:Apply
Difficulty:Easy
35.Theaveragetimebeforebreakdownofamachineisnormallydistributedandhasameanof
18weeksandastandarddeviationof3weeks.Ifbreakdowncostaverages$2,000andpreventive
maintenancecosts$1,400,whatistheoptimalpreventivemaintenanceinterval?
A.16.4weeks
B.14.6weeks
C.16.9weeks
D.19.6weeks
E.21.3weeks
Dividethemaintenancecostbythebreakdowncost.Findavaluefortheinterval(giventhemean
andstandarddeviationoftimebeforebreakdown)suchthatitscumulativeprobabilityequalsthis
ratio.
AACSB:Analytic
Blooms:Apply
Difficulty:Easy
36.Whichofthefollowingistheprimaryconsiderationwithregardtopreventative
maintenance?
A.Whattechnologytouse
B.Howvariedthemaintenancewillbe
C.Howoftenthemaintenancewilloccur
D.Whichproductsitwillbeprovidedto
E.Whowilldoit
Theprimaryissuewithpreventativemaintenanceishowoftentodoit.
Blooms:Understand
Difficulty:Medium
37.Whichofthefollowingwouldnotimprovetheperformanceofabreakdownprogram?
A.moretrainedpersonnel
B.shortleadtimesforreplacementparts
C.standbyequipment
D.crosstrainingrepairpersonnel
E.reducinginventoriesofspareparts
Reducingsparepartsinventorieswouldreducetheperformanceofabreakdownprogram.
Blooms:Understand
Difficulty:Medium
38.Breakdownprogramsoftenareprioritizedsuchthatsomeequipmentgetsalotofattention
andothersgetverylittle.Thistypicallyreflectsthefactthatbreakdownsareconsistentwith
__________.
A.Paretophenomena
B.productioninterruptions
C.supplydisturbances
D.crosstrainedworkers
E.leanoperations
Thatsomeequipmentisrelativelymoreimportantandthereforeshouldcommandgreater
attentionisconsistentwiththeParetophenomenon.
Blooms:Understand
Difficulty:Easy
ch16Key
1."Flowshopscheduling"isusedinhighvolumesystems.
TRUE
Flowsshopsarehighvolumeoperations.
Blooms:Remember
Difficulty:Easy
LearningObjective:1602Describeschedulingneedsinhighvolumeandintermediatevolumesystems.
TopicArea:SchedulingOperations
2.Linebalancingisamajorfactorinthedesignandschedulingoflowvolumesystemsbecause
ofbatchprocessing.
FALSE
Linebalancingisusedinhighvolumeoperations.
Blooms:Remember
Difficulty:Easy
3.Schedulinginintermediatevolumesystemshasthreebasicissues:runsize,timing,and
sequence.
TRUE
Thesearethebasicissuesinschedulinginintermediatevolumesystems.
Blooms:Remember
Difficulty:Easy
4.Whenoperationsareoftenbottlenecked,additionalplannedidletimewillimprovethe
throughputinthoseareas.
FALSE
Additionalplannedidletimewouldreducethroughputinbottleneckedoperations.
Blooms:Remember
Difficulty:Easy
LearningObjective:1601Explainwhatschedulinginvolvesandtheimportanceofgoodscheduling.
5.Whenordersexceedourcapacity,priorityrulesareusedtoselectwhichorderswillbe
accepted.
FALSE
Priorityrulesareusedtodeterminethesequenceinwhichorderswillbeprocessed.
Blooms:Remember
Difficulty:Medium
LearningObjective:1605Giveexamplesofcommonlyusedpriorityrules.
TopicArea:SchedulinginLowVolumeSystems
6.Thetermloading,asusedinscheduling,referstochoosingtheorderinwhichjobswillbe
processedinlowvolumesystems.
FALSE
Loadingreferstowhichjobswillbeassignedtowhichresourcesorblocksoftime.
Blooms:Remember
Difficulty:Hard
LearningObjective:1604UseandinterpretGanttcharts;andusetheassignmentmethodforloading.
7.Loadingisthedeterminationofwhichworkcentersshouldperformwhichjobs.
TRUE
Loadingreferstowhichjobswillbeassignedtowhichresourcesorblocksoftime.
Blooms:Remember
Difficulty:Easy
8.AGanttchartisabasicschedulingtoolbutworksbestforhighvolumesystems.
FALSE
AGanttchartworksbestforlowvolumesystems.
Blooms:Remember
Difficulty:Medium
9.AGanttchartisabasicschedulingtoolthatismostusefulinlowvolumesystems.
TRUE
AGanttchartismostusefulinlowvolumesystems.
Blooms:Remember
Difficulty:Medium
10.Aschedulechartdepictstheloadingandidletimesforagroupofmachinesordepartments.
FALSE
Aschedulechartdepictstheprogressofjobs.
Blooms:Remember
Difficulty:Medium
11.Theoutputofthesystemcannotexceedtheoutputofthebottleneckoperation(s).
TRUE
Thebottlenecklimitsthesystem'spotentialoutput.
Blooms:Remember
Difficulty:Medium
12.Theeliminationofidletimeonbothbottleneckandnonbottleneckoperationsmustbe
accomplishedtooptimizeoutput.
FALSE
Eliminatingidletimeonnonbottleneckoperationsmightactuallydecreaseoutput.
Blooms:Remember
Difficulty:Medium
13.Aslongasthebottleneckoperationsareusedeffectivelyidletimeinnonbottleneck
operationswillnotaffecttheoverallproductivityofthesystem.
TRUE
Idletimeinnonbottleneckoperationsdoesn'tnecessarilyaffectsystemproductivity.
Blooms:Remember
Difficulty:Medium
14.Thequantitysenttoabottleneckoperationcouldbesplitintotwoormoreprocessbatchesto
betterutilizeabottleneckresourceratherthanprocesstheentirebatch.
FALSE
Atabottlenecksmallerbatcheslikelywouldreduceutilization.
Blooms:Remember
Difficulty:Medium
15.Splittingalargelotafteroneoperationbeyondabottleneckoperationwouldreducethe
overallwaitingtimeofthebottleneckoperation.
FALSE
Thiswouldhavenoeffectonthewaitingtimeofthebottleneckoperation.
Blooms:Remember
Difficulty:Medium
16.Input/output(I/O)controlreferstomonitoringtheproductivitychangessinceproductivityis
determinedbytheratioofOutputtoInput.
FALSE
I/Ocontrolreferstomonitoringoutputandwaitingtimesatworkcenters.
Blooms:Remember
Difficulty:Medium
LearningObjective:1603Describeschedulingneedsinjobshops.
17.Infiniteloadingandfiniteloadingaretwomajorapproachesusedtoloadworkcenters.
TRUE
Thesearethetwomajorloadingapproaches.
Blooms:Remember
Difficulty:Easy
18.Aschedulechartcanbeusedtomonitorjobprogress.
TRUE
Aschedulechartmonitorsjobprogress.
Blooms:Remember
Difficulty:Easy
19.Theassignmentmodelseeksanoptimummatchingoftasksandresources.
TRUE
Matchingjobswithresourcescanbedonewiththeassignmentmodel.
Blooms:Remember
Difficulty:Easy
20.Sequencingisconcernedwiththeorderinwhichjobsaredone,whileloadingisconcerned
withassigningjobstoworkcentersorworkstations.
TRUE
Sequencingconcernsorder,loadingconcernsassignment.
Blooms:Remember
Difficulty:Easy
21.Priorityrulesarewidelyusedtosequencejobsinhighvolumesystems.
FALSE
Priorityrulesareusedinlowvolumesystems.
Blooms:Remember
Difficulty:Medium
22.Theassignmentmethodislimitedtoamaximumoftwojobsperresource.
FALSE
Therearenosuchlimitsintheuseoftheassignmentmethod.
Blooms:Remember
Difficulty:Medium
23.Priorityrulesgenerallyassumethatjobsetupcostisindependentofprocessingsequenceof
jobs.
TRUE
Ifsetupcostisn'tsequenceindependent,certainassignmentrulesmightnotperformas
anticipated.
Blooms:Remember
Difficulty:Medium
24.Inasingleworkcenter,makespanimprovementcanbeaccomplishedbyselectingthe
optimalsequencingrule.
FALSE
Makespanremainsconstantregardlessofthesequencingruleinthissituation.
Blooms:Remember
Difficulty:Medium
25.Priorityrulesareusedinlowvolumesystemstoidentifyanoptimalprocessingsequence.
FALSE
Whatisoptimaldependsonwhatfacetofperformanceiscriticalinlowvolumesystems.
Blooms:Remember
Difficulty:Hard
26.TheSPTpriorityrulealwaysresultsinthelowestaveragecompletiontime.
TRUE
SPTminimizesaverageflowtime.
Blooms:Remember
Difficulty:Medium
27.Bottlenecksmayshiftwiththepassageoftime,sothatdifferentoperationsbecome
bottleneckoperationsatdifferenttimes.
TRUE
Assystemsbecomemorebalanced,bottleneckscanshiftacrossoperations.
Blooms:Remember
Difficulty:Medium
28.Ifoptimalsequencingthroughthreeworkcentersisdesired,Johnson'sRuleIIisusedrather
thanJohnson'sRule.
FALSE
Nosimpleruleisavailableforoptimalschedulingacrossmorethantwoworkcenters.
Blooms:Remember
Difficulty:Medium
29.Inthedecisionmakinghierarchy,schedulingdecisionsarethefinalstepinthe
transformationprocessbeforeactualoutputoccurs.
TRUE
Schedulingisthelastphaseofthecoordinationandcontrolhierarchy.
Blooms:Remember
Difficulty:Medium
30.Makespanisthetotaltimeneededtocompleteagroupofjobs.
TRUE
Itisthesumofprocessingtimesplusanywaittimesthatmightbenecessary.
Blooms:Remember
Difficulty:Medium
31.Thetheoryofconstraintshasagoalofmaximizingflowthroughtheentiresystem.
TRUE
Thetheoryofconstraintsisfocusedonmaximizingthroughput.
Blooms:Remember
Difficulty:Medium
32.AmajordisadvantageoftheSPTruleisthatittendstomakeveryshortjobswaitforalong
timewhilelonger,moreimportantjobsareprocessed.
FALSE
SPT'sdisadvantageisthatverylongjobsmightwaitmuchlongerthanisappropriate.
Blooms:Remember
Difficulty:Easy
33.TheSPTruleminimizesidletimeforsubsequentoperations.
TRUE
Becauseitminimizesaverageflowtime,downstreamoperationsarelesslikelytobestarved.
Blooms:Remember
Difficulty:Hard
34.Johnson'sruleisatechniqueusedtosequencejobsthroughatwostepworksequence.
TRUE
Johnson'sruleisfortwoworkcenters.
Blooms:Remember
Difficulty:Medium
35.Abasicdifferencebetweenschedulinginservicesystemsandschedulinginmanufacturing
systemsistherandomnatureofrequestsinmanufacturingsystemsasopposedtomoreuniform
requestsinservicesystems.
FALSE
Servicestendtoexperiencelessuniformdemand.
Blooms:Remember
Difficulty:Medium
LearningObjective:1606Summarizesomeoftheuniqueproblemsencounteredinservicesystems;anddescribesomeoftheapproachesused
forschedulingservicesystems.
TopicArea:SchedulingServices
36.Batchprocesshelpsmaximizeworkerefficiency.
TRUE
Setuptimescanbeeconomizedoninabatchprocess.
Blooms:Remember
Difficulty:Medium
37.Becauseschedulingisamatterofdetailedexecution,ithaslittleimpactontheoperations
strategyofanorganization.
FALSE
Schedulinghassignificantstrategicaspects.
Blooms:Remember
Difficulty:Medium
38.Schedulingpertainsto:
A.hiringworkers
B.processselection
C.buyingmachinery
D.timingtheuseofspecificresources
E.determiningthelowestcost
Schedulinginvolvesthetimingoftheuseofspecificresources.
Blooms:Remember
Difficulty:Easy
39.Whichofthefollowingisthelaststepinthecapacity/schedulingchain?
A.productplanning
B.processplanning
C.capacityplanning
D.aggregateplanning
E.scheduling
Schedulingistheloweststepinthishierarchy.
Blooms:Remember
Difficulty:Easy
40.Whichofthefollowingisnotanexampleofahighvolumesystem?
A.aircraftmanufacturing
B.magazineprinting
C.petroleumrefining
D.wastetreatment
E.commercialdonutbaking
Aircraftmanufacturingisanexampleoflowvolumeproduction.
Blooms:Remember
Difficulty:Medium
41.Whichofthefollowingisnotusuallyacharacteristicofsuccessfulhighvolumesystems?
A.smoothworkflowthroughthesystem
B.customizedoutput
C.rapidrepairofbreakdowns
D.minimalqualityproblems
E.reliablesupplyschedules
Highvolumesystemsrarelyprovidecustomizedoutput.
Blooms:Remember
Difficulty:Easy
42.Primaryconsiderationsinschedulinghighvolumesystemsinvolve:
(I)coordinatingtheflowofinputs
(II)overcomingthedisruptionstoplannedoutputs
(III)assigningworkerstoworkcenters
A.IandIII
B.IandII
C.IIandIII
D.I,II,andIII
E.IIonly
Workassignmentsarenottypicallyanissueinhighvolumesystems.
Blooms:Remember
Difficulty:Medium
43.Organizationswithfixed,perishablecapacitycanbenefitfrom_______.
A.YieldManagement
B.Priceincreases
C.Constraints
D.Suboptimization
E.Waitinglines
Yieldmanagementhelpsoptimizeprofitswhenfixed,perishablecapacityispresent.
Blooms:Remember
Difficulty:Hard
44.Aworkcentercanbea___________.
A.machine
B.groupofmachines
C.department
D.facility
E.alloftheabove
Anyofthesecouldbeconsideredaworkcenter.
Blooms:Remember
Difficulty:Easy
45.TheEDDpriorityruleusuallydoeswellwithregardto_______.
A.Cost
B.Lateness
C.Overtime
D.Waste
E.Makespan
EDDisusefulwhenduedateperformanceisimportant.
Blooms:Remember
Difficulty:Hard
46.Whichofthefollowingisnotanassumptionofpriorityrules?
A.Thesetofjobsisknown:nonewjobsarriveafterprocessingbegins.
B.Setuptimeisindependentofprocessingsequence.
C.Finiteloadingisassumed.
D.Processingtimesaredeterministic.
E.Nomachinebreakdownsareassumed.
Priorityrulesdonotassumefiniteloading.
Blooms:Remember
Difficulty:Medium
47.Thetwodifferentapproachestoloadworkcentersinjobshopschedulingare:
A.loadchartsandschedulecharts
B.Ganttchartsandassignmentmethod
C.infiniteloadingandfiniteloading
D.linearprogrammingandmakespan
E.noneoftheabove
Thesearethetwoapproaches.
Blooms:Remember
Difficulty:Hard
48.Thepriorityrulewhichwillsequencejobsintheordertheyarereceivedis_________.
A.EDD
B.LIFO
C.SPT
D.CR
E.FCFS
Thisisthesameasfirstinfirstout.
Blooms:Remember
Difficulty:Easy
49.Aschedulingtechniqueusedtoachieveanoptimum,onetoonematchingoftasksand
resourcesis:
A.theassignmentmethod
B.Johnson'srule
C.theoptimumproductiontechnologymethod(OPT)
D.theappointmentmethod
E.thereservationmethod
Theassignmentmethodmatchestaskswithresourcesoptimally.
Blooms:Remember
Difficulty:Easy
50.Inataskassignmentsituation,inhowmanydifferentwayscanfivejobsbeassignedtofive
machines?
A.1
B.5
C.25
D.120
E.3,125
Thisissimplycalculatedas5!
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
51.Inanassignmentmethodproblem,ifittakesAbe3hourstobuildabirdhouseand4hours
foradoghouse,whileBettytakes4hoursforabirdhouseand3hoursforadoghouse,whatisthe
reducedcost(inhours)ofassigningAbetobuildthedoghouse?
A.0hours
B.1hour
C.2hours
D.3hours
E.4hours
Abeisonehoursloweratbuildingthedoghouse.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
52.Thematrixbelowshowsrelativecostsforvariousjobmachinecombinations.Whichsetof
pairsconstitutestheminimumcostsolutionusingtheAssignmentmethod?
A.1B,2C,3A
B.1B,2A,3C
C.1A,2C,3B
D.1A,2B,3C
E.1C,2A,3B
Thesearetheminimumcostpairings.
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
53.Basedonthecostinformationgiveninthetablebelow,whichsetofjobmachinepairs
reflectstheminimumcostsolutionusingtheAssignmentmethod?
A.1B,2A,3C
B.1A,2B,3C
C.1C,2A,3B
D.1B,2C,3A
E.1C,2B,3A
Thesearetheminimumcostpairs.
AACSB:Analytic
Blooms:Apply
Difficulty:Hard
54.Effectiveschedulingcannot:
A.yieldcostsavingsandimprovedproductivity
B.reducetheneedforexpansionoffacilities
C.improvecustomerservice
D.eliminatetheneedtotrainemployees
E.improvepatientcareinmedicalsettings
Effectiveschedulingisonlyapartoforganizationaleffectiveness.
Blooms:Understand
Difficulty:Medium
55.Thepriorityrulewherejobsareprocessedaccordingtothesmallestratioofduedateto
processingtimeis:
A.CR
B.EEDD
C.FCFS
D.S/O
E.SPT
TheCRratioschedulesjobsinincreasingorderofthisratio.
Blooms:Remember
Difficulty:Medium
56.Scheduledduedatesaretheresultof:
A.promisestocustomers
B.MRPprocessing
C.managerialdecisions
D.alloftheabove
E.ourcompetitor'spromises
Scheduledduedatescanresultfromanumberofinfluences.
Blooms:Remember
Difficulty:Easy
57.Whichofthefollowingisnotameasureforjudgingtheeffectivenessofaschedule
sequence?
A.averagenumberofjobsattheworkcenter
B.totalnumberofjobsattheworkcenter
C.averagecompletion(flow)time
D.averagejobtardiness
E.noneoftheabove
Thetotalnumberofjobsisnotatypicalevaluationmeasure.
Blooms:Remember
Difficulty:Medium
58.Thepurposeofcyclicalschedulingisto:
A.eliminateweekendsandholidays
B.rotateschedules
C.addflexiblehours
D.incorporateovertime
E.observeworkpatterns
Cyclicalschedulingisusedtorotateschedulesacrossaserviceworkforce.
Blooms:Remember
Difficulty:Hard
59.Averagecompletion(flow)timeforaschedulesequenceataworkcenteris:
A.thesumofprocessingtimedividedbythenumberofjobs
B.thesumofjobs'flowtimesdividedbythenumberofjobs
C.overallflowtimedividedbytotalprocessingtime
D.totalprocessingtimeplustotallatetimedividedbynumberofjobs
E.thesumofflowtimeplustotallatetimedividedbynumberofjobs
Jobs'individualflowtimesareaveragedforaverageflowtime.
Blooms:Remember
Difficulty:Medium
60.Theschedulingsequencingrulewhichalwaysresultsinthelowestaveragecompletion(flow)
timeisthe:
A.firstcome,firstserved(FCFS)rule
B.shortestprocessingtimefirst(SPT)rule
C.earliestduedatefirst(EDD)rule
D.leastslackperoperationfirst(S/O)rule
E.rununtilslackhappens(RUSH)rule
SPTminimizesflowtime.
Blooms:Remember
Difficulty:Medium
61.Whichsequencingruleisdesignedspecificallytominimizejobtardiness?
A.S/O
B.EDD
C.FCFS
D.SPT
E.LPT
EDDisatardinessorientedsequencingrule.
Blooms:Remember
Difficulty:Medium
62.Aschedulingruleusedforsequencingjobsthroughtwoworkcentersis:
A.criticalratiorule
B.Johnson'srule
C.slackperoperationrule
D.shortestprocessingtimerule
E.Paretorule
Johnson'sruleisfortwoworkcenters.
Blooms:Remember
Difficulty:Easy
63.Forthejobslistedbelow,whichprocessingsequencewouldresultusingJohnson'sRule?
A.cadb
B.bdac
C.abcd
D.dcba
E.cabd
ThisistheJohnson'sRulesequence.
Blooms:Remember
Difficulty:Medium
64.WhatistheoptimumjobsequenceforthejobslistedbelowusingJohnson'sRule?
A.egfd
B.dgfe
C.dfge
D.edfg
E.fedg
Blooms:Remember
Difficulty:Medium
65.Amajordifferencebetweenmanufacturingandservicesystemsintermsofschedulingis:
A.variabilityinarrivalandservicerates
B.processingcostperunit
C.thenumberofunitstobeprocessed
D.lengthofprocessingtime
E.outputrate
Servicesexperiencegreatervariability.
Blooms:Remember
Difficulty:Medium
66.Schedulinginservicesystemsoftentakestheformof:
A.appointmentsystems
B.reservationsystems
C.(A)and(B)
D.makespansystems
E.alloftheabove
Appointmentandreservationsystemsarefrequentlyusedinservicesettings.
Blooms:Remember
Difficulty:Easy
67.Schedulinginservicesystemsmayinvolvescheduling:
A.theworkforce.
B.theequipment.
C.(a)and(b).
D.customers.
E.alloftheabove.
Serviceschedulingcaninvolveworkers,equipmentandcustomers.
Blooms:Remember
Difficulty:Easy
68.Onedisadvantageofappointmentsystemsis:
A.Capacitycanbeadjustedbyvaryinghours.
B.Thecustomer'sdesiredtimemaybealreadytaken.
C.Peoplegenerallyacceptitasfair.
D.Itcanreducecustomerwaitingtime.
E.Appointmentsdonothavetobeallthesamelength.
Inagiventimeslot,onlyonecustomercanbescheduled.
Blooms:Remember
Difficulty:Medium
69.Inanassignmentmodelwheretherearefewerjobsthanresources:
A.Dummyjobsareneededtosolvetheproblem.
B.Dummyresourcesareneededtosolvetheproblem.
C.Theproblemcan'tbesolvedusinganassignmentmodel.
D.Theproblemwillhavemultipleoptimumsolutions.
E.Thesimplexmethodmustbeusedtosolvetheproblem.
Dummyjobsmaketheassignmentmodelworkableinthissituation.
Blooms:Remember
Difficulty:Hard
70.Usingthecostinformationgiveninthetablebelow,assignworkcrewstojobssothattotal
costisminimized.
Feedback:Thisistheoptimumassignmentschedule.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
71.Thecoststodoeachofthethreejobsonthreealternatepiecesofequipmentaregivenbelow.
Determinethejobequipmentcombinationthatwillminimizetotalcost.
Feedback:Thisloadingminimizestotalcost.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
72.Amanagermustassignfourengineerstoprojects,onetoaproject.TheleaderofProjectC
hasindicatedthathedoesnotwantengineer2or3onhisproject.Giventhecostfiguresbelow
foreachprojectengineercombination,andkeepinginmindthattwocombinationsare
undesirable,determineassignmentssuchthattotalcostwillbeminimized.
Feedback:Theseassignmentsminimizetotalcost.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
73.Giventheinformationbelow,determinethefollowing:
(A)Processingsequenceusing(1)SPTand(2)EDD.
(B)Averagecompletiontimeandaveragejobtardinessusing(1)SPTand(2)EDD.
SPT:
EDD:
Feedback:Usepriorityrulecalculationstoarriveatthesevalues.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
74.Usingtheinformationbelow,determinethefollowing:
(A)processingsequenceusing(1)SPTand(2)EDDrules
(B)averagecompletiontimeandaveragejobtardinessundereachrule
(A)SPTSequence:DCAEB;EDDSequence:CBEDA
(B)SPT:
B)EDD:
Feedback:Usepriorityrulescalculationstoarriveatthesevalues.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
75.DeterminetheprocessingsequenceforthesixjobsshownbelowusingJohnson'sRule.
Calculatetotalthroughputtime.Canthemakespanbereducedbysplittingthelatestjob?Ifso,
byhowmuch?
Schedulewithoutsplittingmakespanis55
Schedulewithsplittingmakespanis52
Feedback:Splittingreducesthemakespanbythreehours.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
76.UseJohnson'sRuletodeterminetheoptimumprocessingsequenceforthejobslistedbelow.
Charttotalthroughputtime.
Feedback:Totalthroughputtimeis81minutes.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
77.Giventhefollowinginformationconcerningjobsawaitingprocessingatasingleworkcenter,
whatprocessingsequencewillresultifthecriticalratio(CR)ruleisused?
ThesequencewillbeGIJLH.Thescheduleisasfollows:
Feedback:Resequence(byrecalculatingC/R)everytimeajobiscompleted.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
78.Giventhefollowinginformationconcerningjobsawaitingprocessingatasingleworkcenter,
whatprocessingsequencewillresultifthecriticalratio(C/R)ruleisused?
ThesequencewillbePTQRS.Thescheduleisasfollows:
Feedback:Resequence(byrecalculatingC/R)everytimeajobiscompleted.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
Thetablebelowcontainsinformationaboutfivejobswaitingtobeprocessedatworkcenter
numberthree.
StevensonChapter16
79.ThesequencethatwouldresultusingtheSPTruleis:
A.ebcda
B.cabed
C.adceb
D.debac
E.edbac
Thissequencehasminimumaverageflowtime.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
80.UsingtheEDDrule,thesequenceofjobswouldbe:
A.debac
B.adcbe
C.edbac
D.adced
E.ebcda
ThiswouldbetheEDDsequence.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
StevensonChapter16
81.Aftertherowreduction,whatisthereducedtimeforassigningresource4toJobD?
A.0hours
B.2hours
C.3hours
D.6hours
E.9hours
Thiswouldbethereducedtimeofsuchanassignment.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
82.Aftertherowandcolumnreductions,whatisthereducedtimeforassigningresource4tojob
D?
A.0hours
B.2hours
C.3hours
D.6hours
E.9hours
Thiswouldbethereducedtimeofsuchanassignment.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
83.Aftertherowandcolumnreductions,whatistheminimumnumberoflinesneededtocover
allofthezeroes?
A.0lines
B.1line
C.2lines
D.3lines
E.4lines
Withthreelinesallzeroescanbecovered.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
84.Whatistheoptimalassignmentofresourcestojobs?
A.1toA;2toC;3toB;4toD
B.1toB;2toD;3toC;4toA
C.1toC;2toB;3toA;4toD
D.1toD;2toB;3toC;4toA
E.1toA;2toC;3toD;4toB
Thisistheoptimumsetofassignments.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
85.Fortheoptimalschedule,whatisthetotalnumberofhoursrequiredtocompletethesejobs?
A.23hours
B.22hours
C.21hours
D.20hours
E.19hours
Thisistheoptimumvaluefortotalnumberofhoursrequired.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
Thepresidentofaconsultingfirmwantstominimizethetotalnumberofhoursitwilltaketo
completefourprojectsforanewclient.Accordingly,shehasestimatedthetimeitshouldtake
foreachofhertopconsultantsCharlie,Betty,Johnny,andRicktocompleteanyofthefour
projects,asfollows:
StevensonChapter16
86.Inhowmanydifferentwayscansheassigntheseconsultantstotheseprojects?
A.4
B.8
C.16
D.24
E.256
Thiswouldbe4!
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
87.Aftertherowandcolumnreductions,whatisthereducedtimeforassigningRicktoproject
D?
A.0hours
B.8hours
C.10hours
D.9hours
E.22hours
Thiswouldbethereducedtimeforsuchanassignment.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
Thepresidentofaconsultingfirmwantstominimizethetotalnumberofhoursitwilltaketo
completefourprojectsforanewclient.Accordingly,shehasestimatedthetimeitshouldtake
foreachofhertopconsultantsCharlie,Betty,Johnny,andRicktocompleteanyofthefour
projects,asfollows:
StevensonChapter16
88.Whatistheoptimalassignmentofconsultantstoprojects?
A.CharlietoA;BettytoB;JohnnytoC;RicktoD
B.CharlietoD;BettytoC;JohnnytoB;RicktoA
C.CharlietoC;BettytoA;JohnnytoD;RicktoB
D.CharlietoD;BettytoB;JohnnytoC;RicktoA
E.CharlietoD;BettytoA;JohnnytoC;RicktoB
Thiswouldbetheoptimumsetofassignments.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
89.Fortheoptimalschedule,whatisthetotalnumberofhoursitwilltaketheseconsultantsto
completetheseprojects?
A.53hours
B.46hours
C.50hours
D.61hours
E.54hours
Givenanoptimumschedule,thiswouldbethetotalnumberofhours.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
Theowner/operatorofthelocalfranchiseofHandyman,Inc.,hasfourjobstodotoday,shown
intheordertheywerereceived:
StevensonChapter16
90.Ifheusesthefirstcome,firstserved(FCFS)priorityruletoschedulethesejobs,whatwillbe
theaveragecompletiontime?
A.7.5hours
B.5hours
C.3hours
D.2.5hours
E.2hours
Theaveragecompletiontimewouldbe7.5hoursfromnow.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
91.Ifheusestheearliestduedatefirst(EDD)priorityruletoschedulethesejobs,whatwillbe
theaveragejobtardiness?
A.0hours
B.1.5hours
C.1.75hours
D.2hours
E.2.25hours
GivenEDD,thiswouldbeaveragetardiness.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
92.Ifheusestheshortestprocessingtimefirst(SPT)priorityruletoschedulethesejobs,what
willbetheaveragecompletiontime?
A.7.5hours
B.5hours
C.3hours
D.2.5hours
E.2hours
GivenSPT,thiswouldbetheaveragecompletiontime.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
willbetheaveragejobtardiness?
A.0hours
B.1.5hours
C.1.75hours
D.2hours
E.2.25hours
GivenSPT,thiswouldbeaveragejobtardiness.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
willbetheaveragenumberofjobsinhisshoptoday?
A.0
B.1
C.2
D.3
E.4
GivenSPT,thiswouldbetheaveragenumberofjobsintheshop.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
Eva,theownerofEva'ssecondtimearoundweddingdresses,currentlyhasfivedressestobe
altered,showninorderinwhichtheyarrived:
StevensonChapter16
95.IfEvausesthefirstcome,firstserved(FCFS)priorityruletoschedulethesejobs,whatwill
betheaveragecompletiontime?
A.3hours
B.5hours
C.7hours
D.7.2hours
E.8hours
GivenFCFS,thiswouldbeaveragecompletiontime.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
96.IfEvausestheearliestduedatefirst(EDD)priorityruletoschedulethesejobs,whatwillbe
theaveragejobtardiness?
A.2hours
B.2.2hours
C.2.33hours
D.2.4hours
E.3hours
GivenEDDsequencing,thiswouldbeaveragejobtardiness.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
97.IfEvausestheshortestprocessingtimefirst(SPT)priorityruletoschedulethesejobs,what
willbetheaveragecompletiontime?
A.3hours
B.5hours
C.7hours
D.7.2hours
E.8hours
GivenSPTsequencing,thiswouldbeaveragecompletiontime.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
willbetheaveragejobtardiness?
A.2hours
B.2.2hours
C.2.33hours
D.2.4hours
E.3hours
GivenSPTsequencing,thiswouldbeaveragejobtardiness.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
willbetheaveragenumberofjobsinhershoptoday?
A.2jobs
B.2.33jobs
C.2.4jobs
D.2.67jobs
E.3jobs
Thisistheminimumvaluepossibleforaveragenumberofjobsinhershop.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
Theoperationsmanagerofabodyandpaintshophasfivecarstoscheduleforrepair.Hewould
liketominimizethethroughputtimetocompleteallworkonthesecars.Eachcarrequiresbody
workpriortopainting.Theestimatesofthetimesrequiredtodothebodypaintworkoneachare
asfollows:
StevensonChapter16
100.WhereintheoptimumsequenceshouldcarEbescheduled?
A.first
B.second
C.third
D.fourth
E.fifth
WithJohnson'sRule,Ewillbefirstintheschedule.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
101.WhereintheoptimumsequenceshouldcarAbescheduled?
A.first
B.second
C.third
D.fourth
E.fifth
WithJohnson'sRule,Awillbelastinthesequence.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
102.Whatistheoptimumsequence(firstcartolast)?
A.A;B;C;D;E
B.E;D;C;B;A
C.E;B;D;C;A
D.E;D;B;C;A
E.E;B;D;A;C
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
103.Whatisthethroughputtimefortheoptimalschedule?
A.24hours
B.25hours
C.26hours
D.28hours
E.50hours
ThisisthemakespanthatresultsfromusingJohnson'sRule.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
104.Whatistheidletimeatthepaintworkcenterfortheoptimalschedule?
A.1hour
B.2hours
C.4hours
D.7hours
E.10hours
Therearefourhoursofidletimeatthepaintworkcenter.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
StevensonChapter16
105.Whatistheresultoftherowreduction?
Feedback:Thisistheresultoftherowreduction.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
106.Whatistheresultoftherowandcolumnreductions?
Feedback:Thisistheresultoftherowandcolumnreductions.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
107.Cananoptimumassignmentbemadeaftertherowandcolumnreductions?
No.
Feedback:Theminimumnumberoflinestocoverallzeroesis2.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
108.Whatistheresultofmodifyingtherowandcolumnreductionstable?
Feedback:Hereisthemodifiedrowandcolumnreductiontable.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
109.Cananoptimumassignmentbemadeafterthefirstmodificationoftherowandcolumn
reductionstable?
Yes.
Feedback:Nowtheminimumnumberoflinesneededtocoverallzeroesis3.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
110.Whatistheoptimumassignmentofjobstomachines?
1toA;2toB;3toC
Feedback:Thisistheoptimumsetofassignments.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
111.Whatarethetotalcostsfortheoptimumassignmentofjobstomachines?
$14
Feedback:Giventheoptimumassignments,thisisthetotalcost.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
Refertothefollowingdataforjobswaitingtobeprocessedatasingleworkcenter(jobsare
showninorderofarrival):
StevensonChapter16
112.Whatistheschedulesequenceusingthefirstcome,firstserved(FCFS)priorityrule?
ABCDE
Feedback:ThisistheFCFSsequence.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
113.Whatistheaveragecompletiontimeforthefirstcome,firstserved(FCFS)priorityrule
schedule?Averagejobtardiness?Averagenumberofjobsatthecenter?
11.6days;5.6days;2.9jobs
Feedback:ThesevaluesresultfromusingFCFS.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
114.Whatistheschedulesequenceusingtheearliestduedate(EDD)priorityrule?
ABDEC
Feedback:ThisistheEDDsequence.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
115.Whatistheaveragecompletiontimefortheearliestduedate(EDD)priorityruleschedule?
Averagejobtardiness?Averagenumberofjobsatthecenter?
Feedback:ThesevaluesresultfromtheEDDsequence.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
116.IfjobsA,B,andCrequiretwooperationseach,whilejobsDandErequireoneoperation
each,whatistheschedulesequenceusingtheslackperoperation(S/O)priorityrule?
ABDEC
Feedback:ThisistheS/Osequence.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
117.Whatistheaveragecompletiontimefortheslackperoperation(S/O)priorityrule
schedule?Averagejobtardiness?Averagenumberofjobsatthecenter?
Feedback:ThesevaluesresultfromusingtheS/Orule.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
118.Whatistheschedulesequenceusingtheshortestprocessingtime(SPT)priorityrule?
ADEBC
Feedback:ThisistheSPTsequence.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
119.Whatistheaveragecompletiontimefortheshortestprocessingtime(SPT)priorityrule?
Averagejobtardiness?Averagenumberofjobsatthecenter?
10days;4days;2.5jobs
Feedback:ThesevaluesresultfromusingSPT.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
Giventhefollowingdataforjobsawaitingprocessingatamanufacturingcellinwhichjobsare
firstprocessedbymachineA,thenbyMachineB:
StevensonChapter16
120.Ifthesejobswerescheduledinthesequenceshown,whatwouldbethethroughputtime?
20hours
Feedback:TheWXYZsequencewouldhaveamakespanof20hours.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
121.Ifthesejobswerescheduledinthesequenceshown,whatwouldbetheidletimeatmachine
B?
5hours
Feedback:Idletimewouldbefivehoursifthissequenceisused.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
122.Ifthesejobswerescheduledinthesequenceshown,whenwouldidletimeoccuratmachine
B?
4hoursattheoutset;1hourbetweenWandX
Feedback:TherewouldbeonehourofidletimebetweenjobsWandX.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
123.Indevelopingthesequencewhichwillminimizethroughputtime,whatistheinitialjobto
beplacedintheschedulesequence?
Y
Feedback:Ywouldbeplacedfirst(onthelefthandside)ofthesequence.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
124.Indevelopingthesequencethatwillminimizethroughputtime,whereintheschedule
sequenceshouldjobWbeplaced?
Wshouldbesecond
Feedback:WwouldbeplacedinthesequenceafterYandZhadbeenplaced.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
125.Indevelopingthesequencewhichwillminimizethroughputtime,whereshouldjobXbe
placed?
Third
Feedback:Xwouldbethelastjobplacedinthesequence,anditwouldbeinthegapbetweenW
andZ.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
126.Whatisthesequencewhichwillminimizethroughputtime?
YWXZ
Feedback:ThisistheJohnson'sRulesequence.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
127.Whatisthethroughputtimefortheoptimumschedule?
19hours
Feedback:ThisisthemakespanthatresultsfromusingJohnson'sRule.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
128.WhatistheidletimeatmachineBfortheoptimumschedule?
4hours
Feedback:BhasfourhoursofidletimeintheJohnson'sRulesequence.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
129.WhendoesidletimeoccuratmachineBfortheoptimumschedule?
1hourattheoutset;2hoursbetweenYandW;1hourbetweenWandX
Feedback:ThesearetheplacesinthescheduleinwhichmachineBisidle.
AACSB:Analytic
Blooms:Apply
Difficulty:Medium
130.JobX,whichhasadurationoffourdays,isduebythecloseofbusinessonFriday,
December23.WithoutlookingattheworkalreadyscheduledonX'srequiredresource,the
schedulerschedulesXtobebegunonthemorningofTuesday,December20.Thisisanexample
of__________.
A.infinitescheduling
B.finitescheduling
C.forwardscheduling
D.backwardscheduling
E.prioritization
Backwardloadingtakesajob'sduedateandsubtractsrequiredprocessingtimefromthat.
Blooms:Remember
Difficulty:Easy
131.JobX,whichhasadurationoffourdays,isduebythecloseofbusinessonFriday,
December23.WithoutlookingattheworkalreadyatX'srequiredresource,thescheduler
schedulesXtobebegunimmediatelyandassumesthatXwillbedonefourdaysfromnow.This
isanexampleof___________.
A.infinitescheduling
B.finitescheduling
C.forwardscheduling
D.backwardscheduling
E.prioritization
Forwardloadingschedulesajobaheadfromapointintimeandassumesitscompletiondate
basedonthat.
Blooms:Remember
Difficulty:Easy
132.JobXarrivedatworkcenterQatnoon.At2p.m.thatsamedayXwasbegun.Xleftwork
centerQat3:15p.m.thatsameday.X'sflowtime,inminutes,was__________.
A.195
B.120
C.75
D.60
E.Cannotbedetermined
Flowtimeisthedifferencebetweenwhenajobleavesaworkcenterandwhenitarrivesatthat
workcenter.
AACSB:Analytic
Blooms:Apply
Difficulty:Easy
133.Whichofthefollowingiscriticaltoeffectiveyieldmanagement?
A.onepricepricing
B.forecasting
C.capacityflexibility
D.constantdemand
E.trainedservicepersonnel
Forecastaccuracyiscriticaltoensuringthatadequatecapacityisheldbackforlastminute
customerswhoarenotpricesensitive.
Blooms:Remember
Difficulty:Medium
134.Whichofthefollowingisleastlikelytobeaconsiderationwhenschedulingahighvolume
system?
A.equipmentfailures
B.materialshortages
C.accidents
D.workerabsences
E.demandvariability
Highvolumeoperationsareusedwhendemandexhibitslittleornovariability.
Blooms:Remember
Difficulty:Medium

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