Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organizations goods or services. T/F
False - Marketing
Which of the following is not a type of operations-
Goods production, storage/transportaion, entertainment, and communication - All of the above.
Budgeting, analysis of investment proposals, and provision of funds are activities associated with the ____________ function.
Which one of the following would not generally be classified under the heading of transformation?
Staffing - assembling, teaching, farming, and consulting are all transformation processes.
Product design and process selection are examples of decisions that are:
Which of the following does not relate to system design?
In the history of operations management the use of multidisciplinary team approach to complex system problems using tools like linear programing first occurred during which decade?
1940's - 1950's
The overall objective of inventory management is to achieve satisfactory levels of customer service while keeping inventory costs reasonable. T/F
To provide satisfactory levels of customer service while keeping inventory costs within reasonable bounds, two fundamental decisions must be made about inventory: The timing and size of orders. T/F
DVD recorders would be an example of independent demand items.
Interest, insurance, and opportunity costs are all associated with holding costs
In the ABC approach C items represent about 15 percent of items, but 60 percent of the dollar usage. T/F
False A items
The average inventory level and the number of orders per year are inversely related; As one increases the other decreases. T/F
The rate of demand is an important factor in determining the ROP.
Variability in demand and or lead time can be compensated for by safety stock T/F
In the fixed-order interval model, the order size is the same for each order. T/F
The fixed order interval model requires a continuous monitoring of inventory levels. T/F
The fixed order interval model requires a larger amount of safety stock than ROP model for the same risk of a stockout. T/F
The basic EOQ model ignores purchasing cost
Which of the following is not one of the assumptions of the basic EOQ model?
D. Quantity discounts are available. - annual demand requirements are known and constant, lead time does not vary, each order is received in a single delivery
Which of the following is not included in order costs?
E. Temporary storage of finished goods. order costs include - processing vendor invoices for payment, moving delivered goods to temporary storage, inspecting incoming goods for quantity, and taking an inventory to determine on how much is needed.
In an ABC system, the typical percentage of the number of items in inventory for A items is about.
In the ABC classification system, items which account for about 15 percent of the total dollar-volume for a majority of the inventory items would be classified as
The EOQ model is most relevant for:
Determining fixed order quantities.
In a supermarket, the every monday morning restocking of shelves by a bread vendor is an example of:
Fixed order interval
In the basic EOQ model, if annual demand doubles, the effect on EOQ is:
increases by about 40%
In the basic EOQ model, if lead time increases from 5-10 days, the EOQ will:
Remain the same
In the basic EOQ model, an annual demand of 40 units, an ordering cost of $5, and a holding cost of $1/unit per year will result in an annual EOQ of:
EOQ = sqrt(2*40*5/1))=5
In the Basic EOQ model, if D=60 per month, S=$12, and H=$10 per unit per month, EOQ is
In the basic EOQ model, if annual demand is 50, carrying cost is $2, and ordering cost is $15, EOQ is approximately:
The introduction of quantity discounts will cause the optimum order quantity to be:
Unchanged or greater
Which of the following is not generally a determinant of reorder point?
If no variation in demand or lead time exist, ROP will equal:
expected usage during lead time
if average demand for an inventory item is 200 units per day, lead time is three days, and safety stock is 100 units, the ROP - reorder point is:
A manager has just received a revised price schedule from a vendor. What order quantity should the manager use in order to minimize total costs? Annual demand is 120 units, ordering cost is $8 and annual carrying cost is $1/Unit
D - 44
sells four cases of stein per day, lead time is three days. how many cases should be in stock at the time of the order.
If 16 cases of stein beer were ordered at a time, what would be the length of an order cycle.
If you ordered 16 cases of beer at a time, what would be the average inventory level?
D - 20 Cases
what is the EOQ for Stein beer?
D - 20 cases
The goal of aggregate planning is to achieve a production plan that attempts to balance the organizations resources and meet expected demand. T/F
Aggregate planning is used to establish general levels of employment, output, and inventories over an intermediate-range of time
A level capacity strategy is also known as a chase demand strategy. T/F
False - Chase strategy is matching capacity to demand. The planned output for a period is set at the expected demand for that period.
An advantage of a chase strategy for aggregate planning is that inventories can be kept relatively low. T/F
ultimately, the overriding factor in choosing a strategy in aggregate planning is overall cost.
Aggregate planners commonly use trial and error methods in developing aggregate plans.
Which of the following best describes aggregate planning?
D - an attempt to respond to predicted demand within the constraints set by product, process and location decisions.
Aggregate planning is capacity planning for:
The intermediate range
In using the chase strategy, variations in demand could be met by:
Varying output during regular time by changing employment levels.
Developing the master production schedule is done by disaggregating the aggregate production plan. T/F
The theme of MRP is getting the right materials to the right place before they are needed. T/F
Which of the following is an input to the master production schedule?
The aggregate plan
Which of the following is the net requirement using an MRP program if the gross requirement is 1,500 and the inventory on hand is 300
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