operation management mcq

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CHAPTER 6: MANAGING QUALITY MULTIPLE CHOICE 27. Which of the following statements regarding Arnold Palmer Hospital is false? d The hospital's high quality is measured by low readmission rates, not patient satisfaction. 28. Arnold Palmer Hospital uses which of the following quality management techniques? e The hospital uses all of the above techniques 29. Which of the following statements best describes the relationship between quality management and product strategy? d Managing quality helps build successful product strategies 30. "Quality is defined by the customer" is b. a user-based definition of quality 31. "Making it right the first time" is c. a manufacturing-based definition of quality 32. Three broad categories of definitions of quality are b. user-based, manufacturing-based, and product-based 33. According to the manufacturing-based definition of quality, d. quality is the degree to which a specific product conforms to standards 34. The role of quality in limiting a firm's product liability is illustrated by e. All of the above are valid 35. Which of the following is not one of the major categories of costs associated with quality? e. none of the above; they are all major categories of costs associated with quality 36. All of the following costs are likely to decrease as a result of better quality except e. maintenance costs 37. Which of the following statements is not true? c. Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product. 38. "Employees cannot produce goods that on average exceed the quality of what the process is capable of producing" expresses a basic element in the writings of d. W. Edwards Deming 39. "Quality Is Free," meaning that the costs of poor quality have been understated, is the work of c. Philip B. Crosby 40. The philosophy of zero defects is e. consistent with the commitment to continuous improvement 41. Based on his 14 Points, Deming is a strong proponent of d. training and knowledge 42. Stakeholders who are affected by the production and marketing of poor quality products include a. stockholders, employees, and customers

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test bank multiple choice questions and answers, Operations Management 10th edition

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Page 1: Operation management MCQ

CHAPTER 6: MANAGING QUALITY

MULTIPLE CHOICE27. Which of the following statements regarding Arnold Palmer Hospital is false?

d The hospital's high quality is measured by low readmission rates, not patient satisfaction.28. Arnold Palmer Hospital uses which of the following quality management techniques?

e The hospital uses all of the above techniques29. Which of the following statements best describes the relationship between quality management and product strategy?

d Managing quality helps build successful product strategies30. "Quality is defined by the customer" is

b. a user-based definition of quality31. "Making it right the first time" is

c. a manufacturing-based definition of quality32. Three broad categories of definitions of quality are

b. user-based, manufacturing-based, and product-based33. According to the manufacturing-based definition of quality,

d. quality is the degree to which a specific product conforms to standards34. The role of quality in limiting a firm's product liability is illustrated by

e. All of the above are valid35. Which of the following is not one of the major categories of costs associated with quality?

e. none of the above; they are all major categories of costs associated with quality36. All of the following costs are likely to decrease as a result of better quality except

e. maintenance costs37. Which of the following statements is not true?

c. Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product.38. "Employees cannot produce goods that on average exceed the quality of what the process is capable of producing" expresses a basic element in the writings of

d. W. Edwards Deming39. "Quality Is Free," meaning that the costs of poor quality have been understated, is the work of

c. Philip B. Crosby40. The philosophy of zero defects is

e. consistent with the commitment to continuous improvement41. Based on his 14 Points, Deming is a strong proponent of

d. training and knowledge42. Stakeholders who are affected by the production and marketing of poor quality products include

a. stockholders, employees, and customers43. Regarding the quality of design, production, and distribution of products, an ethical requirement for management is to

a. determine whether any of the organization's stakeholders are violated by poor quality products44. If 1 million passengers pass through the St. Louis Airport with checked baggage each month, a successful Six Sigma program for baggage handling would result in how many passengers with misplaced luggage?

a. 3.445. Which of the following is true about ISO 14000 certification?

e. All of the above are true.46. Suppose that a firm has historically been achieving “three-sigma” quality. If the firm later changes its quality management practices such that begins to achieve “six-sigma” quality, which of the following phenomena will result?

d. The average number of defects will be cut by 99.87%.47. To become ISO 9000 certified, organizations must

d. all of the above48. Total quality management emphasizes

b. a commitment to quality that goes beyond internal company issues to suppliers and customers49. A successful TQM program incorporates all of the following except

d. centralized decision-making authority50. "Kaizen" is a Japanese term meaning

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e. continuous improvement51. Which of the following statements regarding "Six Sigma" is true?

a. The term has two distinct meanings—one is statistical; the other is a comprehensive qualitysystem.

52. Quality circles members aree. none of the above; all of the statements are false

53. Techniques for building employee empowerment includee. All of the above are techniques for employee empowerment.

54. Building high-morale organizations and building communication networks that include employeesare both elements of

c. employee empowerment55. The process of identifying other organizations that are best at some facet of your operations andthen modeling your organization after them is known as

c. benchmarking56. ISO 9000 seeks standardization in terms of

d. procedures to manage quality57. Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the

a. Taguchi Loss Function58. A quality loss function includes all of the following costs except

d. sales costs59. Pareto charts are used to

c. organize errors, problems, or defects60. The "four Ms" of cause-and-effect diagrams are

a. material, machinery/equipment, manpower, and methods61. Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of eventsthrough which a product travels is a

b. process chart62. The process improvement technique that sorts the "vital few" from the "trivial many" is

b. Pareto analysis63. A production manager at a pottery factory has noticed that about 70 percent of defects result fromimpurities in raw materials, 15 percent result from human error, 10 percent from machinemalfunctions, and 5 percent from a variety of other causes. This manager is most likely using

a. a Pareto chart64. A customer service manager at a retail clothing store has collected numerous customer complaintsfrom the forms they fill out on merchandise returns. To analyze trends or patterns in these returns,she has organized these complaints into a small number of categories. This is most closely relatedto the ____________ tool of TQM.

b. cause and effect diagram65. A manager tells her production employees, "It's no longer good enough that your work fall anywhere within the specification limits. I need your work to be as close to the target value as possible." Her thinking is reflective of

d. Taguchi concepts66. A fishbone diagram is also known as a

a. cause-and-effect diagram67. If a sample of parts is measured and the mean of the measurements is outside the control limits, the process is

b. out of control and the process should be investigated for assignable variation68. A quality circle holds a brainstorming session and attempts to identify the factors responsible for flaws in a product. Which tool do you suggest they use to organize their findings?

a. Ishikawa diagram69. When a sample measurement falls inside the control limits, it means that

d. if there is no other pattern in the samples, the process is in control70. Which of the following is false regarding control charts?

a. Values above the upper control limits always imply that the product’s quality is exceeding expectations.71. The goal of inspection is to

a. detect a bad process immediately72. Which of the following is not a typical inspection point?

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e. after a costly process73. A good description of "source inspection" is inspecting

e. one's own work, as well as the work done at the previous work station74. "Poka-yoke" is the Japanese term for

b. foolproof75. What refers to training and empowering frontline workers to solve a problem immediately?

e. service recovery76. A recent consumer survey conducted for a car dealership indicates that, when buying a car, customers are primarily concerned with the salesperson's ability to explain the car's features, the salesperson's friendliness, and the dealer's honesty. The dealership should be especially concerned with which determinants of service quality?

a. communication, courtesy, and credibility77. Marketing issues such as advertising, image, and promotion are important to quality because

b. the intangible attributes of a product (including any accompanying service) may not be defined78. Which of the determinants of service quality involves having the customer's best interests at heart?

c. credibility79. Which of the determinants of service quality involves performing the service right the first time?

d. reliability

SUPPLEMENT 6: STATISTICAL PROCESS CONTROL

28. If a sample of items is taken and the mean of the sample is outside the control limits the process isa. out of control and the cause should be established

29. The causes of variation in statistical process control ared. natural causes and assignable causes

30. Natural variationse. All of the above are true.

31. Natural variationsd. lead to occasional false findings that processes are out of control

32. Assignable variationb. is to be identified and eliminated

33. Assignable causese. are causes of variation that can be identified and removed

34. Control charts for variables are based on data that come fromc. averages of small samples

35. The purpose of an X chart is to determine whether there has been ac. change in the central tendency of the process output

36. Statistical process control chartsb. display upper and lower limits for process variables or attributes, and signal when a process isno longer in control

37. A sample of parts is measured. The mean of this sample is in the middle of the control limits, butsome individual parts measure too low for design specifications and other parts measure too high.Which of the following is true?

b. The process is in control, but not capable of producing within the established control limits.38. The Central Limit Theorem

c. allows managers to use the normal distribution as the basis for building some control charts39. For an x-bar chart where the standard deviation is known, the Upper Control Limit

d. is 3⋅σ n above the mean of sample means for a 3σ control chart40. Up to three standard deviations above or below the centerline is the amount of variation thatstatistical process control allows for

c. natural variation41. A manager wants to build 3σ control limits for a process. The target value for the mean of theprocess is 10 units, and the standard deviation of the process is 6. If samples of size 9 are to betaken, the UCL and LCL will be

b. 16 and 442. The type of inspection that classifies items as being either good or defective is

b. attribute inspection43. The x-bar chart tells us whether there has been a

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c. change in the central tendency of the process output44. The mean and standard deviation for a process for which we have a substantial history are x = 120and σ = 2. For the variable control chart, a sample size of 16 will be used. What is the mean of thesampling distribution?

e. none of the above45. Jars of pickles are sampled and weighed. Sample measures are plotted on control charts. The idealweight should be precisely 11 oz. Which type of chart(s) would you recommend?

c. x - and R-charts46. If x = 23 ounces, σ = 0.4 ounces, and n = 16, the ±3σ control limits will be

c. 22.70 to 23.30 ounces47. The usual purpose of an R-chart is to signal whether there has been a

a. gain or loss in dispersion48. A manager wishes to build a 3σ range chart for a process. The sample size is five, the mean ofsample means is 16.01, and the average range is 5.3. From Table S6.1, the appropriate value of D3

is 0, and D4 is 2.115. The UCL and LCL for this range chart arec. 11.2 and 0

49. Plots of sample ranges indicate that the most recent value is below the lower control limit. Whatcourse of action would you recommend?

e. Variation is not in control; investigate what created this condition.50. To set x -chart upper and lower control limits, one must know the process central line, which is the

a. average of the sample means51. According to the text, the most common choice of limits for control charts is usually

c. ± 3 standard deviations52. Which of the following is true of a p-chart?

d. The lower control limit may be at zero.53. The normal application of a p-chart is in

c. process sampling by attributes54. The statistical process chart used to control the number of defects per unit of output is the

e c-chart55. The c-chart signals whether there has been a

b. change in the number of defects per unit56. The local newspaper receives several complaints per day about typographic errors. Over a sevenday period, the publisher has received calls from readers reporting the following number of errors 4, 3, 2, 6, 7, 3, and 9. Based on these data alone, what type of control chart(s) should the publisher use?

b. c-chart57. A manufacturer uses statistical process control to control the quality of the firm's products. Samples of 50 of Product A are taken, and a defective/acceptable decision is made on each unit sampled For Product B, the number of flaws per unit is counted. What type(s) of control charts should be used?

b. p-chart for A, c-chart for B58. A nationwide parcel delivery service keeps track of the number of late deliveries (more than 30 minutes past the time promised to clients) per day. They plan on using a control chart to plot their results. Which type of control chart(s) would you recommend

c. c-charts59. A run test is used

d. to examine points in a control chart to check for nonrandom variability60. Which of the following is true regarding the process capability index Cpk?

b. The larger the Cpk, the more units meet specifications.61. If the Cpk index exceeds 1

b. σ must be less than one-third of the difference between the specification and the process mean62. The statistical definition of Six Sigma allows for 3.4 defects per million. This is achieved by a Cpk

index ofe. 2

63. A Cpk index of 1.00 equates to a defect rate ofc. 2.7 per 1,000 items

64. Acceptance sampling

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c. is used to determine whether to accept or reject a lot of material based on the evaluation of a sample

65. Acceptance sampling's primary purpose is tod. decide if a lot meets predetermined standards

66. An acceptance sampling plan's ability to discriminate between low quality lots and high quality lots is described by

d. an operating characteristics curve67. Acceptance sampling

e. All of the above are true68. Which of the following statements on acceptance sampling is true?

d. All of the above are true.69. Acceptance sampling is usually used to control

d. incoming lots of purchased products70. An operating characteristic (OC) curve describes

d. how well an acceptance sampling plan discriminates between good and bad lots71. An operating characteristics curve shows

c. how the probability of accepting a lot varies with the population percent defective72. Producer's risk is the probability of

b. rejecting a good lot73. Which of the following is true regarding the relationship between AOQ and the true populationpercent defective?

c. AOQ is less than the true percent defective.74. Average outgoing quality (AOQ) usually

c. improves with inspection75. A Type I error occurs when

a. a good lot is rejected76. A Type II error occurs when

b. a bad lot is accepted77. In most acceptance sampling plans, when a lot is rejected, the entire lot is inspected and all defective items are replaced. When using this technique the AOQ

b. improves (AOQ becomes a smaller fraction)78. An acceptance sampling plan is to be designed to meet the organization's targets for product quality and risk levels. Which of the following is true?

b. AQL, LTPD, α and β collectively determine n and c.79. A lot that is accepted by acceptance sampling

e. All of the above are false.80. Which of the following statements about acceptance sampling is true?

a. The steeper an OC curve, the better it discriminates between good and bad lots.81. Which of the following is true regarding the average outgoing quality level?

d. AOQ is very low (very good) for extremely poor quality lots.

CHAPTER 12: INVENTORY MANAGEMENT

28. Which of the following statements regarding Amazon.com is false?b. The company was founded as, and still is, a "virtual retailer" with no inventory.

29. Which of the following is a function of inventory?e. All of the above are functions of inventory.

30. Which of the following would not generally be a motive for a firm to hold inventories?d. to minimize holding costs

31. Which of the following is not one of the four main types of inventory?d. safety stock inventory

32. Which of the following statements about ABC analysis is false?d. ABC analysis is based on the presumption that all items must be tightly controlled to produceimportant cost savings.

33. All of the following statements about ABC analysis are true exceptd. it states that all items require the same degree of control

34. ABC analysis is based upon the principle thatb. there are usually a few critical items, and many items which are less critical

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35. ABC analysis divides on-hand inventory into three classes, generally based upone. annual dollar volume

36. Cycle countingb. provides a measure of inventory accuracy

37. Which of the following statements regarding control of service inventories is true?c. Effective control of all goods leaving the facility is one applicable technique.

38. The two most basic inventory questions answered by the typical inventory model arec. timing and quantity of orders

39. Among the advantages of cycle counting is that itd. allows more rapid identification of errors and consequent remedial action than is possible withannual physical inventory

40. Which of the following are elements of inventory holding costs?e. All of the above are elements of inventory holding cost.

41. Which of the following is not an assumption of the economic order quantity model shown below?HQ D S⋅ ⋅= * 2

d. Production and use can occur simultaneously.42. The primary purpose of the basic economic order quantity model shown below isHQ D S⋅ ⋅* = 2

d. to minimize the sum of setup cost and holding cost43. If the actual order quantity is the economic order quantity in a problem that meets the assumptionsof the economic order quantity model shown below, the average amount of inventory on handHQ D S⋅ ⋅* = 2

c. is one-half of the economic order quantity44. A certain type of computer costs $1,000, and the annual holding cost is 25%. Annual demand is10,000 units, and the order cost is $150 per order. What is the approximate economic orderquantity?

c. 11045. Most inventory models attempt to minimize

c. total inventory based costs46. In the basic EOQ model, if the cost of placing an order doubles, and all other values remainconstant, the EOQ will

a. increase by about 41%47. In the basic EOQ model, if D=6000 per year, S=$100, H=$5 per unit per month, the economicorder quantity is approximately

c. 14148. Which of the following statements about the basic EOQ model is true?

e. All of the above statements are true.49. Which of the following statements about the basic EOQ model is false?

d. If annual demand were to double, the EOQ would also double.50. A product whose EOQ is 40 experiences a decrease in ordering cost from $90 per order to $10. The revised EOQ is

b. one-third as large51. A product whose EOQ is 400 experiences a 50% increase in demand. The new EOQ is

b. increased by less than 50%52. For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model was 200units and the total annual inventory (carrying and setup) cost was $600. The inventory carryingcost per unit per year for this item is

c. $3.0053. A product has demand of 4000 units per year. Ordering cost is $20 and holding cost is $4 per unitper year. The EOQ model is appropriate. The cost-minimizing solution for this product will cost_____ per year in total annual inventory costs.

b. $80054. A product has demand of 4000 units per year. Ordering cost is $20 and holding cost is $4 per unitper year. The cost-minimizing solution for this product is to order

b. 200 units per order55. Which of the following statements regarding the reorder point is true?

e. All of the above are true.

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56. The EOQ model with quantity discounts attempts to determined. how many units should be ordered

57. An inventory decision rule states "when the inventory level goes down to 14 gearboxes, 100gearboxes will be ordered." Which of the following statements is true?

b. Fourteen is the reorder point, and 100 is the order quantity.58. Which of the following statements regarding the production order quantity model is true?

b. It relaxes the assumption that all the order quantity is received at one time.59. Which of these statements about the production order quantity model is false?

d. All else equal, the smaller the ratio of demand rate to production rate, the larger is theproduction order quantity.

60. The assumptions of the production order quantity model are met in a situation where annualdemand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rateis 10 and the daily production rate is 100. The production order quantity for this problem isapproximately

c. 18461. A production order quantity problem has daily demand rate = 10 and daily production rate = 50.The production order quantity for this problem is approximately 612 units. The average inventoryfor this problem is approximately

b. 24562. Which category of inventory holding costs is much higher than average for rapid-change industriessuch as PCs and cell phones?

e. pilferage, scrap, and obsolescence63. When quantity discounts are allowed, the cost-minimizing order quantity

e. minimizes the sum of holding, ordering, and product costs64. Which of the following statements about quantity discounts is false?

d. The larger annual demand, the less attractive a discount schedule will be.65. If the standard deviation of demand is six per week, demand is 50 per week, and the desired service level is 95%, approximately what is the statistical safety stock?

e. cannot be determined without lead time data66. A specific product has demand during lead time of 100 units, with a standard deviation of 25 units.What safety stock (approximately) provides a 95% service level?

a. 4167. Demand for dishwasher water pumps is 8 per day. The standard deviation of demand is 3 per day,and the order lead time is four days. The service level is 95%. What should the reorder point be?

e. more than 4068. The purpose of safety stock is to

d. control the likelihood of a stockout due to the variability of demand during lead time69. The proper quantity of safety stock is typically determined by

d. setting the level of safety stock so that a given stockout risk is not exceeded70. If demand is not uniform and constant, then stockout risks can be controlled by

d. adding safety stock71. If daily demand is normally distributed with a mean of 15 and standard deviation of 5, and leadtime is constant at 4 days, 90 percent service level will require safety stock of approximately

c. 13 units72. If daily demand is constant at 10 units per day, and lead time averages 12 days with a standarddeviation of 3 days, 95 percent service requires a safety stock of approximately

c. 49 units73. In a safety stock problem where both demand and lead time are variable, demand averages 150units per day with a daily standard deviation of 16, and lead time averages 5 days with a standarddeviation of 1 day. The standard deviation of demand during lead time is approximately

c. 154 units74. The fixed-period inventory model requires more safety stock than the fixed-quantity modelsbecause

a. a stockout can occur during the review period as well as during the lead time75. A disadvantage of the fixed-period inventory system is that

d. since there is no count of inventory during the review period, a stockout is possible76. An advantage of the fixed-period inventory system is that

b. there is no physical count of inventory items when an item is withdrawn

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CHAPTER 14: MATERIAL REQUIREMENTS PLANNING(MRP) AND ERP

36. Which of the following statements regarding Wheeled Coach is false?c. Wheeled Coach’s MRP system allowed the company to meet tight schedules, but causedinventory to rise.

37. Demand for a given item is said to be dependent ifd. there is a clearly identifiable parent

38. The phrase "demand related to the demand for other products" describesb. dependent demand

39. Dependent demand and independent demand items differ in thatd. All of the above are true.

40. A master production schedule specifiesc. what product is to be made, and when

41. The ______ is (are) the MRP input detailing which end items are to be produced, when they areneeded, and in what quantities.

a. master production schedule42. A master production schedule contains information about

b. quantities and required delivery dates of final products43. The aggregate plan gets input or feedback from which of the following areas?

e. all of the above44. In continuous (make-to-stock) operations, the master production schedule is usually expressed interms of

a. end items45. In job shop (make-to-order) operations, the master production schedule is usually expressed in

d. customer orders46. The following table is an example of a(n)Week 1 Week 2 Week 3 Week 4 Week 5Clothes Washer 200 100Clothes Dryer 300 100 100 100Upright Freezer 200 500

c. master production schedule47. A document calls for the production of 50 small garden tractors in week 1; 50 small garden tractors and 100 riding mowers in week 2; 100 riding mowers and 200 garden utility carts in week 3; and 100 riding mowers in week 4. This document is most likely a(n)

d. master production schedule48. The ______ is the input to material requirements planning which lists the assemblies,subassemblies, parts, and raw materials needed to produce one unit of finished product.

a. bill of material49. A bill of material lists the

c. components, ingredients, and materials required to produce an item50. Firms making many different final products use __________ to facilitate production scheduling.

b. modular bills51. A bill of material must be updated with the corrected dimensions of a part. The document thatdetails this change is a(n)

b. engineering change notice52. The bill of material contains information necessary to

e. convert (explode) net requirements at one level into gross requirements at the next level53. Which of the following statements best compares modular bills and phantom bills?

e. Modular bills represent subassemblies that actually exist and are inventoried, while phantombills represent subassemblies that exist only temporarily and are not inventoried.

54. The minimum record accuracy required for successful MRP is approximatelye. 99%

55. Given the following bill of materialIf the demand for product A is 50 units, what will be the gross requirement for component E?

e. 300

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56. Given the following bill of materialIf the demand for product A is 50 units, what will be the gross requirement for component E?

a. 5057. When safety stock is deemed absolutely necessary, the usual policy is to build it into whichcategory of the MRP logic?

c. Projected On Hand58. Given the following bill of materialIf the demand for product A is 30 units, and there are 10 units of B on hand and none of C, howmany units of part D will be needed?

c. 7059. Low level coding means that

c. a component item is coded at the lowest level at which it appears in the BOM structure60. Each X requires 2 of component Y; each Y requires 4 of part Z. The lead time for assembly of X is1 week. The lead time for the manufacture of Y is 1 week. The lead time for the procurement of Zis 6 weeks. The cumulative lead time for X is _____ weeks.

c. 861. A material requirements plan contains information with regard to all of the following except

c. the capacity needed to provide the projected output rate62. Each R requires 2 of component S and 1 of part T. The lead time for assembly of R is 3 days. Thelead time for the manufacture of S is 5 days. The lead time for the manufacture of T is 10 days. Thecumulative lead time for R is _____ days.

c. 1363. Each R requires 4 of component S; each S requires 3 of part T. The lead time for assembly of R is 1 week. The lead time for the manufacture of S is 2 weeks. The lead time for the procurement of T is6 weeks. The cumulative lead time for R is ______ weeks.

b. 964. Which of the following best describes a gross material requirements plan?

a. a schedule that shows total demand for an item, and when it must be ordered from a supplier or when production must be started

65. Which of the following statements regarding the gross material requirements plan is true?e. All of the above are true.

66. The MPS calls for 110 units of Product M. There are currently 30 of Product M on hand. Each Mrequires 4 of Component N. There are 20 units of N on hand. The net requirements for N are

c. 30067. The MPS calls for 50 units of Product A and 60 of B. There are currently 25 of Product B on hand.Each A requires 2 of Part C; each B requires 5 of C. There are 160 units of C available. The netrequirements for C are

a. 11568. The MPS calls for 110 units of Product A. There are currently 60 of Product A on hand. Each Arequires 4 of Part B. There are 20 units of B available. The net requirements for B are

c. 18069. In MRP record calculations, the appearance of a negative value for the gross requirements of anend item in a specific time bucket

d. is impossible70. The number of units projected to be available at the end of each time period refers to

d. the amount projected to be on hand71. Linking a part requirement with the parent component that caused the requirement is referred to as

c. pegging72. In MRP, system nervousness is caused by

a. management's attempt to continually respond to minor changes in production requirements73. One of the tools that is particularly useful in reducing the system nervousness in the MRP system is (are)

c. time fences74. Distortion in MRP systems can be minimized when safety stock is held at the

e. a and c75. Material requirements plans specify

b. the quantity and timing of planned order releases76. Which of the following best differentiates material requirements planning (MRP) from finite

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capacity scheduling (FCS)?a. FCS recognizes the finite nature of capacity while MRP does not.

77. Which of the following lot-sizing techniques results in the lowest holding costs?a. lot-for-lot

78. Which of the following statements is true about the MRP plan when using lot-for-lot ordering?b. The quantity of gross requirements for a child item is equal to the quantity of planned orderrelease(s) multiplied by the number of child items used in the parent assembly.

79. What lot-sizing technique is generally preferred when inventory holding costs are extremely high?a. lot-for-lot

80. For the lot-sizing technique known as lot-for-lot to be appropriateb. setup cost should be relatively small

81. An item's holding cost is 60 cents per week. Each setup costs $120. Lead time is 2 weeks. EPP ise. 200

82. Which of the following statements regarding lot-sizing is true?

b. Too much concern with lot-sizing results in false accuracy.83. A firm makes numerous models of mowers, garden tractors, and gasoline powered utility vehicles.Some assemblies and parts are common to many end items. To relieve the MPS of performingorder releases on these common parts, the firm might choose to use the __________ technique.

c. supermarket84. Capacity planning in closed-loop MRP

e. All of the above are true.85. If a load report (resource requirements profile) shows a work center scheduled beyond capacity

c. the work center's load may be smoothed by such tactics as operations splitting or lot splitting86. MRP II is accurately described as

c. MRP augmented by other resource variables87. The extension of MRP which extends to resources such as labor hours and machine hours, as wellas to order entry, purchasing, and direct interface with customers and suppliers is

b. enterprise resource planning88. Which of the following statements regarding MRP in services is true?

d. Services such as restaurant meals illustrate dependent demand, and require product structuretrees, bills-of-material, and scheduling.

89. Distribution resource planning (DRP) isb. a time-phased stock replenishment plan for all levels of a distribution network

90. By convention, the top level in a bill of material isa. level 0

91. Enterprise resource planning (ERP)d. automates and integrates the majority of business processes

92. Enterprise resource planning (ERP)e. All of the above are true of ERP.

93. Which of the following is false concerning enterprise resource planning (ERP)?c. It is inexpensive to implement.

94. Which of the following regarding enterprise resource planning (ERP) is true?e. All of the above are true.

95. All of the following are advantages of enterprise resource planning (ERP) except itd. requires major changes in the company and its processes to implement