Question 1) __________ is when the activities in the stage must stop because there is no place to deposit the item just completed A. Buffering

3) Declining product prices
A. increase the manufacturing costs
B. lower the break-point
C. result in lower manufacturing costs
D. increase the break-even point

4) The type of processing structure that is used for producing discrete products at a controlled rate is
A. job shop
B. batch
C. assembly line
D. project

5) The best process flow structure to use for making automobiles is
A. job shop
B. batch shop
C. group technology cell
D. assembly line

6) The break-even analysis is a standard approach to determine alternative processes A break-even analysis chart usually present alternative __________ and __________ based upon the units produced or sold.
A. demand, supply
B. profits, losses
C. equipment, materials
D. variable, fixed costs

7) A statistical term that refers to the philosophy and methods companies use to eliminate defects in their products and processes by establishing a quality goal of no more than four defects out of every million units is __________.
A. ISO 9000
B. Six Sigma
C. Total Quality Management
D. SERVQUAL

8) Independent demand is

A. inventory where 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

9) An inventory system designed to ensure that an item will be available on an ongoing basis throughout the year is known as
A. Optional Replenishment System
B. Inventory Accuracy and Cycle Counting C. ABC Inventory Planning
D. Multiperiod Inventory Systems

10) A/an __________ approach actually schedules in detail each resource using the setup and runtime required for each order.
A. infinite loading
B. finite loading
C. forward scheduling
D. backward scheduling

11) What is the net result of reducing the duration of a task (crashing) not on the critical path? A. Decreased project overhead costs
B. Reduced likelihood of liquidated damages for late delivery C. Increased slack time associated with the task
D. Reduction in the project duration

12) The idea of the value density calculation is:
A. finding a carrier that can handle the weight
B. matching the weight of the product with an appropriate carrier
C. deciding where items should be stocked geographically and how they should be shipped D. finding the minimum cost carrier

13) When designing a supply chain: A. cost vs customer service must be considered
B. quality vs cost must be considered
C. lead times vs payment terms must be considered
D. customer service vs product customization must be considered

14) According to Hau Lee, which of the following types of products need to be delivered with efficient supply-chains?
A. Custom products
B. Innovative products
C. Grocery products
D. High technology products

15) Which of the following product promotional activities would probably help make the supply chain more efficient?
A. Price promotions that expire on a specific date
B. An “everyday” low price strategy where prices are not dependent on quantity delivered with a specific order

C. Special packaging for a specific event that occurs one time each year
D. A 2-for-1 price promotion

16) The best operating level is:
A. the maximum point of the cost curve
B. the level of capacity for which average unit cost is minimized
C. maximum capacity
D. the level of capacity for which total cost is minimized

17) Capacity utilization rate can be computed as:
A. Capacity used – best operating level
B. Capacity used x best operating level
C. Capacity used / best operating level
D. Capacity used + best operating level

18) The objective of __________ is to provide an approach for determining the overall capacity level of capital-intensive resources that best supports the company’s long-range competitive strategy.
A. workforce management
B. management supervision
C. operations management
D. strategic capacity planning

19) Lean production systems typically require
A. delivery of large lots at frequent intervals
B. buyer inspection of goods and materials
C. multiple sources from which to purchase
D. low inventory levels throughout production

20) 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

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