# OPS 571 Final Exam A+ Work Set 4 Complete - 51108

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1) Which of the following is NOT one of the more successful applications of lean concepts in services?

a. Organize problem-solving groups

d. Clarification of process flows

e. Introduction of demand-push scheduling

2) Which of the following are lean implementation requirements?

a. Preventive maintenance

b. Excellent quality

c. Vertically integrated facilities

d. A and B

e. A, B, and C

3) Which phrase most closely describes the Delphi forecasting technique?

a. consumer survey

b. random individual opinions

c. group of expert's opinions

d. test markets

e. historic data

4) Which of the following statements are true about time-series forecasting?

a. Time series analysis is based on the idea that the history of occurrences over time can be used to predict the future.

b. Time series analysis tries to understand the system underlying and surrounding the item being forecast.

c. Under time-series methods, demand is divided into the time-based components such as daily, weekly, etc.

d. Time series methods are useful for long-range forecasts when the demand pattern is erratic

e. A, B, and C

5) Under exponential smoothing, if we want our forecast to be very responsive to recent demand, the value of alpha should be:

a. large

b. small

c. moderate

d. zero

e. the value of alpha doesn't matter

6) Which of the following would not be classified as a time-series technique?

a. Simple moving average

b. Exponential smoothing

c. Box Jenkins technique

d. Regression model

e. Trend projections

7) Given that the previous forecast of 65 turned out to be four units less than the actual demand. The next forecast is 66. What would be the value of alpha if the simple exponential smoothing forecast method is being used?

a. 0.02

b. 0.4

c. 0.04

d. 0.25

e. none of the above

8) Which of the following would not be classified as a component of demand?

a. Trend

b. Seasonality

c. Cycle

d. Autocorrelation

e. Causal variation

9) A _____ model is usually more accurate than a ______ model for medium-to-long-range forecasts.

a. Time-series decomposition, causal regression

b. Causal regression, time-series decomposition

c. Time-series decomposition, simple exponential smoothing

d. Simple exponential smoothing, time-series decomposition

e. Simple exponential smoothing, causal regression

10) An accuracy measure that may be used to indicate any positive or negative bias in the forecast is:

a. Tracking signal

b. Mean absolute deviation

c. Mean squared error

d. Standard error

e. None of the above

11) A forecasting method that uses several simple forecasting rules and computer simulation of these rules on past data is called:

a. Simulation

b. Input/output

c. Focus forecasting

d. Historical analog

e. None of the above

12) Which of the following accurately describes a chase strategy?

a. The firm produces the same amount each day over the planning period and deals with the variations in demand through the use of inventory or overtime.

b. The firm produces at the same level for several months, and then adjusts production to another level and produces at that level for several more months.

c. The firm produces exactly what is needed every month.

d. All of the above could describe the strategy, depending on the organization.

e. None of the above accurately describes it.

13) Production planning strategies include:

a. Chase strategy

b. Level strategy

c. Stable workforce-variable work hours

d. Transportation Method

e. A, B, and C

f. All of the above

14) Which of the following is not a cost relevant to aggregate production planning?

a. Basic production costs

b. Quantity discounts

c. Costs associated with changes in the production rate

d. Inventory holding costs

e. Backordering costs

15) Aggregate planners balance:

a. demand and costs

b. demand and inventories

c. demand and capacity

d. supply and inventories

e. supply and cost

16) One option for altering the pattern of demand is:

a. hiring employees

b. using overtime

c. carrying inventory

d. subcontracting

e. pricing

17) The commonly used simple aggregate planning techniques are:

a. Cut-and-try charting

b. Graphic method

c. Linear programming and the transportation model

d. A and B

e. A, B, and C

18) The transportation model is appropriate to aggregate planning if the cost and variable relationships are linear and demand can be treated as probabilistic.

a. True

b. False

19) Which of the following is not a reason for carrying inventory?

a. to maintain independence of operations

b. to take advantage of economic purchase-order size

c. to make the system less productive

d. to meet variation in product demand

e. to allow flexibility in production scheduling

20) Counting items to ensure an order is correct, is an example of:

a. Setup cost

b. ordering cost

c. carrying cost

d. stockout cost

e. holding cost

21) Independent demand is:

a. inventory whose demand comes from independent suppliers

b. inventory that is independent of any known rules of demand and supply

c. demand that is related to the demand for another item

d. demand determined by the marketplace that requires forecasting

e. none of the above

22) The basic difference between P and Q systems is:

a. Q models are event triggered while P models are time triggered

b. Q models are time triggered while P models are event triggered

c. P models favor more expensive items

d. P model is more appropriate for important items such as critical repair parts

e. None of the above

23) Which of the following is not an assumption of the basic economic-order quantity model?

a. annual demand is constant and known

c. ordering or setup costs are constant

d. quantity discounts are available

e. no backorders are allowed

24) In the basic fixed-order quantity model, if annual demand doubles, the effect on the Optimal Order Quantity (EOQ) is:

a. it doubles

b. it is half its previous amount

c. it is about 70% of its previous amount

d. decreases by a factor of 2

e. it increases by about 40%

25) Which of the following statements is true about the Q-system?

a. It does not have a reorder point but rather a target inventory.

b. The system is completely determined by the two parameters, Q and R.

c. It does not have an EOQ, since the quantity varies according to demand.

d. The order interval is fixed not the order quantity.

e. None of the above is true.

26) ABC analysis typically requires that inventory be classified according to:

a. alphabetical order by item name

b. annual dollar volume

c. alphabetical order by supplier name

d. due date

e. none of the above

27) In the basic Q model, if the lead time doubles, the EOQ will:

a. decrease by half

b. double

c. remain the same

d. increase, but not double

e. none of the above

28) Three simple inventory systems often used in practice are:

a. Optional replenishment or min/max system

b. One-bin system

c. Two-bin system

d. ABC inventory classification system

e. A, B, and C

f. A, C and D

29) Which of the following is true about MRP Systems?

a. based on independent demand

b. lot sizing is EOQ

c. demand pattern is random

d. objective is to meet manufacturing needs

e. order philosophy is replenishment

30) Which MRP system input element specifies how many and when the firm plans to build each end item?

a. Inventory records file

b. Bills of material

c. Master production schedule

d. Capacity planning

e. none of the above

31) The purposes of a basic MRP system include:

a. To control inventory levels

b. To prioritize the need for an item

c. Plan capacity to load the production system

d. A and B

e. B and C

f. A, B, and C

32) Which of the following is not an advantage of MRP?

a. Reduced sales price

b. Reduced inventory

c. Reduced idle time

d. MRP is flexible - easy to veer away from the schedule if need arises

e. Better response to market demand

33) Which of the following most closely describes net material requirements?

a. gross requirements - planned order receipts

b. gross requirements - on-hand + planned order receipts

c. gross requirements - on-hand - planned order receipts

d. gross requirements - planned order releases

e. none of the above

34) The gross requirements of a given component part in an MRP system are determined from:

a. net requirements + on-hand

b. net requirements of end item

c. gross requirements of the immediate part

d. planned order releases of the end item

e. planned order releases of the immediate parents

35) An MRP system that has information feedback from its module output is termed as open-loop MRP system.

a. True

b. False

36) JIT is best suited to repetitive manufacturing, whereas MRP is used in everything from custom job shops to assembly-line production.

a. True

b. False

37) Lot-sizing techniques include:

a. Lot-for-lot

b. Economic order quantity

c. Least total cost

d. Least unit cost

e. A and B

f. A, B, and C

g. A, B, C, D

38) A _________ approach actually schedules in detail each resource using the setup and runtime required for each order.

c. Forward scheduling

d. Backward scheduling

e. None of the above

39) The objectives of work-center scheduling include(s):

a. To meet due dates

c. To minimize finish goods inventory

d. A and B

e. B and C

f. A, B, and C

40) Which of the following is not a priority rule for job sequencing?

a. shortest processing time

b. minimum slack time remaining

c. last come, first served

d. critical ratio

e. earliest due date

f. all the above are priority rules

41) Johnson's rule is a sequencing rule used for scheduling any number of jobs on two machines.

a. True

b. False

42) The assignment method is appropriate in solving problems that have the following characteristics:

a. There are 'n' things to be distributed to 'n' destinations

b. Though each destination may handle all the things, the final assignment has each thing assigned to one and only one destination

c. Only one criterion should be used (minimum cost, maximum profit, for example)

d. A and C

e. B and C

f. A, B, and C

43) The major functions of shop-floor control are:

a. Assign priority of each shop order

b. Provide actual output data for capacity control purposes

c. Maintain work-in-process quantity information

d. A and B

e. B and C

f. A, B, and C

44) The basic tools for shop-floor control include:

a. Dispatch list

b. Various status and exception reports

c. An input/output control report

d. A and B

e. B and C

f. A, B, and C

45) Which of the following is not a principle of work-center scheduling?

a. Once started, a job should not be interrupted

b. Reschedule every day

c. Schedule jobs as strings, with process steps back to back

d. There is direct equivalence between work flow and cash flow

e. Obtain feedback each day on jobs that are completed at each work center

46) Goldratt's rule of production scheduling include all but:

a. Do not balance the capacity - balance the flow

b. Utilization and activation of a resource is not the same thing

c. An hour saved at a non-bottleneck is a mirage

d. A process batch should be fixed both along its route and in time

e. Priorities can be set only by examining the system's constraints

47) The steps in Goldratt's Theory of Constraints problem solving approach include:

a. Identify the system constraint

b. Decide how to remove the system constraints

c. Elevate the system constraint to highest priority

d. A and B

e. A and C

f. A, B, and C

48) The measures of the firm's ability to make money according to Goldratt include:

a. Net profit

b. Return on assets

c. Cash flow

d. A and B

e. A and C

f. A, B, and C

49) Operational measures include:

a. Throughput

b. Inventory

c. Operating expenses

d. A and B

e. B and C

f. A, B, and C

50) From an operations standpoint, the goal of the firm is to simultaneously increase throughput and inventory and reduce operating expenses.

a. True

b. False

51) If there is no bottleneck, then excess capacity exists and the system should be changed to create a bottleneck.

a. True

b. False

52) Which of the following according to Goldratt is not a component of production cycle time?

a. Setup time

b. Process time

c. Wait time

d. Queue time

e. Maintenance time

53) If the system contains a bottleneck, the _______ is the best place for control. If there is no bottleneck, the __________ is the best place for control.

a. Capacity-constrained resource, bottleneck

b. Capacity-constrained resource, drum

c. Bottleneck, capacity-constrained resource

d. None of the above

54) According to Goldratt and Fox, a useful performance measure to treat inventory is ______.

a. Inventory turnover

b. Current ratio

c. Quick ratio

d. Dollar days

e. None of the above

55) The drawbacks of JIT in relation to synchronous manufacturing include all but:

a. JIT is limited to repetitive manufacturing

b. JIT requires a stable production level

c. JIT uses a schedule to assign work to each workstation

d. JIT does not allow very much flexibility in the products produced

e. All of the above are drawbacks of JIT

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OPS 571 Final Exam A+ Wo

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