Operations Management Exam 30 Questions (All Questions Answered - 100% Correct) - 25338

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Question 10

  1.  

Benetton is well known for the practice of assembling all white sweaters and waiting to dye them much closer to the time of sale. This is an example of what?

Answer

   

Stupidity

   

Postponement

   

Fractionalization

   

Partitioning

   

Genericness

2.5 points   

Question 11

  1.  

Supply chain velocity refers to

Answer

   

how fast the transportation vendor is

   

how fast the company pays the supply chain vendors

   

how fast the purchasing department responds to a request

   

the speed at which a product moves through a pipeline from the manufacturer to the customer

   

the speed at which the warehouse is able to crossdock a shipment

2.5 points   

Question 12

  1.  

Which of the following is not a typical result of the bullwhip effect?

Answer

   

Absenteeism

   

Lost revenues

   

Ineffective transportation use

   

Poor customer service levels

   

Misused manufacturing capacity

2.5 points   

Question 13

  1.  

Which of the following is not a remedy for the bullwhip effect?

Answer

   

Allocate units based on past demand

   

Price stabilization

   

Fill orders based on a set percentage

   

Eliminate order batching

   

Information sharing

2.5 points   

Question 14

  1.  

Which of the following is NOT a positive attribute of Multiple Suppliers?

Answer

   

provides a greater flexibility of volume

   

eliminates a supplier's dependence on the purchaser

   

probability of assured supply is better

   

deliveries can be schedule more easily

   

allows for testing of new suppliers without jeopardizing the flow of materials

2.5 points   

Question 15

  1.  

Companies want a supply chain that makes it possible to:

Answer

   

manage all suppliers' development costs.

   

manage and adapt to all of the business dynamics.

   

manage distribution display.

   

manage distribution outlet retail prices.

   

manage customer demands.

2.5 points   

Question 16

  1.  

Will's omelet factory produces 2,500 omelets a day. They've determined that their daily fixed costs are $4,000 with a variable cost of fifteen cents per omelet. What should Will charge for each omelet to make a 10% profit, rounded to the next whole dollar?

Answer

   

5.00

   

4.00

   

3.00

   

2.00

   

1.00

2.5 points   

Question 17

  1.  

Logo, Inc., can transport its own goods for a $140,000 annual cost and $25 per unit. A logistics supplier offers a contract for a $100,000 annual cost at $30 per unit. What is the indifference point?

Answer

   

8000

   

7000

   

6000

   

5000

2.5 points   

Question 18

  1.  

Simuelson Industries can produce its own motors for a $60,000 fixed monthly cost and a $50 variable cost per unit. Alternatively, Simuelson Industries can purchase the motors from an outside supplier for $50,000 per month and $58 per unit. What option should be chosen if monthly demand is 1200 units?

Answer

   

in-house production

   

outsourcing

2.5 points   

Question 19

  1.  

Yannis Corporation is trying to decide whether to produce its own subassemblies or outsource them. In-house production costs would include an annual fixed cost of $250,000, materials costs per unit of $7, and labor costs per unit of $5. Teshtown, Inc. has agreed to provide the subassemblies for an annual cost of $400,000 and a unit cost of $8 per subassembly. Over what ranges of demand is outsourcing best option?

Answer

   

Less than 37500

   

Greater than or equal to 37500

   

Can not be determined

2.5 points   

Question 20

  1.  

Big Oil Refinery is losing money every month. They cannot shut down the refinery. What quantity (in gallons) of product should they make in an effort to break even? Their primary product sale price is $1.50 per gallon. The production fixed cost is $36,000/day. The variable cost per gallon is $1.30.

Answer

   

36,000

   

18,000

   

180,000

   

30,000

2.5 points   

Question 21

  1.  

Twenty samples of n = 200 were taken by an operator at a workstation in a production process. The number of defective items in each sample was recorded as given in the following table. Management wants to develop a p-chart. The desired confidence level is 80.0 percent. What is the upper control limit?

Answer

   

close to 0.08

   

close to 0.019

   

close to 1.28

   

close 0.105

   

close to 0.8

Question 22

  1.  

Cans of soup are supposed to weigh exactly 16 oz. Inspectors want to develop process control charts. They take eight samples of five boxes and weigh them. They obtain the following data. What is the upper control limit for the x-bar chart?

Answer

   

close to 15.79

   

close to 15.93

   

close to 15.54

   

close to 15.82

Question 23

  1.  

Cans of soup are supposed to weigh exactly 16 oz. Inspectors want to develop process control charts. They take eight samples of five boxes and weigh them. They obtain the following data. What is the upper control limit for the R chart?

Answer

   

close to 1.42

   

close to 0.78

   

close to 1.12

   

close to 0.82

5 points   

Question 24

  1.  

Cans of soup are supposed to weigh exactly 16 oz. Inspectors want to develop process control charts. They take eight samples of five boxes and weigh them. They obtain the following data. Is the process in a state of control?

 

yes (in control)

 

no (not in control)

Question 25

  1.  

Eight samples of n = 50 were taken by an operator at a workstation in a production process. The number of defective items in each sample was recorded as follows. Is the process in a state of control? Assume z =3.

Answer

   

yes (in control)

   

no (out of control)

Question 26

  1.  

Cholesterol Palace is a fast-food restaurant. Management was concerned with errors in filling orders at its drive-up window. It hired several undercover quality inspectors to randomly place 100 orders while the process seemed to be in control. The completed orders were then checked for accuracy. What is the average number of defects per order based on these data?

Answer

   

close to 1.69

   

close to 169

   

close to 0.59

   

close to 2.00

Question 27

  1.  

Cholesterol Palace is a fast-food restaurant. Management was concerned with errors in filling orders at its drive-up window. It hired several undercover quality inspectors to randomly place 100 orders while the process seemed to be in control. The completed orders were then checked for accuracy. What is the lower control limit for a c-chart. Use z =3.

Answer

   

close to -2.21

   

close to 1.3

   

close to 3.0

   

zero (0)

   

close to 1.69

Question 28

  1.  

Cholesterol Palace is a fast-food restaurant. Management was concerned with errors in filling orders at its drive-up window. It hired several undercover quality inspectors to randomly place 100 orders while the process seemed to be in control. The completed orders were then checked for accuracy.

A quality inspector just used the drive-up window and now checks her order. Her cheeseburger has mustard on it although she ordered it without ketchup or mustard. Three handfuls of ketchup and mustard packets (far too many) are in the sack, but no napkins. And hot coffee has spilled because the lid wasn't properly sealed. Is the drive-up process in control?

Answer

   

yes (in control)

   

no (not in control)

Question 29

  1.  

In a single sampling plan the sample size n =5. The submitted lot has on an average 25% defective items. Three acceptance numbers ( c = 0, c =1, and c=2) are being negotiated between the manufacturer and the buyer. Which acceptance number is most desirable from the manufacturer's viewpoint. You may use the following OC curve to find the answer.

 

Answer

   

c = 0

   

c = 1

   

c = 2

Question 30

  1.  

In a double sampling plan the two acceptance numbers are: c1 = 8 and c2 = 12. The number of defectives found in the first sample is 9. Therefore, a second sample is taken. What is the maximum number of defectives allowed in the second sample for the lot to be accepted?

Answer

   

0

   

1

   

2

   

3

   

4

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