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OPS 571 Final Exam

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OPS 571 Final Exam (Newest)

1. A major competitive dimension that forms a company's strategic
operational competitive position in their strategic planning is which of
the following?
Cost or price
1 In setting up a kanban control system you need to determine the
number of kanban card sets needed. If the expected demand during
lead time is 25 per hour, the safety stock is 20 percent of the demand
during lead time, the container size is 5, and the lead time to replenish
an order is 5 hours, what the number of kanban card sets is needed?
1 Which of the following is a multifactor measure of productivity?
Output/(Labor + Capital + Energy)
Output/All resources used
1 Which of the following is an alternative possible service encounter
included in the service-system design matrix?

Automated teller (ATM)
Face-to-face distance
Questionnaire response

1 In development of an operations and supply chain strategy, which of

the following may be an important product-specific criteria to consider?
Learning curve
Supplier after-sale support
Production lot size
1 Which of the following is one of Dr. Eli Goldratt's rules of production
scheduling for optimized production technology?
An hour lost at a bottleneck saves an hour for the entire system
Do not allow bottlenecks to govern the flow of the line
Utilization and activation of a resource are not the same
Balance the capacities, not the flows
1 You have just been assigned to oversee a series of projects. Functional
areas will loan you personnel for each project, and separate project
managers will be responsible for separate projects. These project
managers will report to you. Which project management structure is
being used?
Matrix project
Pure project
Functional project
Task force
1 Which of the following is a reason that firms must develop more new
products than ever?
Commitments to joint venture partners
Product life cycles are shorter
They are replacing old customers with new ones
To amortize heavy investments in development labs
1 We would expect to see which of the following in an MRP system's
inventory status file?

End items produced

Late/early delivery records
Labor efficiency
Scrap parts

1 The centroid method for plant location uses which of the following
Inbound transportation costs
Volume of goods to be shipped between existing points
Transport times between facilities
Correlation matrix of existing facilities
1 The Pareto principle is best applied to which of the following inventory
Fixed-order quantity
ABC classification
1 A company can produce a small lot of products the first time at a cost
of $2,000. If their 85 percent learning curve allows them to reduce
their costs on each lot, what is the total cost of producing 5 lots?
1 You are a consultant called in to estimate the costs after the
employees learn how to do a job more efficiently by repetition of new
product. You find a company can produce a product the first time at a
cost of $5,000. If their 90 percent learning curve allows them to reduce
their costs on each unit, what is the total cost of producing 100 units of
the new product?

1 A material requirements planning system is an example of which of the

following scheduling systems?
Infinite loading, backward scheduling
Finite loading, backward scheduling
Infinite loading, forward scheduling
Finite loading, forward scheduling
1 Capacity planning that involves hiring, layoffs, some new tooling, minor
equipment purchases, and subcontracting is considered as which one
of the following planning horizons?
Long range
Short range
Intermediate range
1 You want to determine the upper control line for a p-chart for quality
control purposes. You take several samples of a size of 100 items in
your production process. From the samples, you determine the fraction
defective is 0.05 and the standard deviation is 0.01. If the desired
confidence level is 99.7 percent, which of the following is the resulting
UCL value for the line?
1 The objectives of work center scheduling include which of the
Providing variety to workforce
Following all the priority rules
Minimizing setup costs
Avoiding tradeoffs
1 For which of the following should we use an R-chart to monitor process
Deciding whether an airliner has sufficient fuel for its trip
Determining whether vehicles from a motor pool will run

Weighing trucks at a highway inspection station to determine if they

are overloaded
Student grades measured from 1 to 100

1 Which of the following is a major factor that distinguishes service

The service package has the same legal protection available to
manufactured goods.
The service process and service product can be developed
Manufacturing is far more capital intensive than services.
The service package is the major output of the development
1 Which of the following is a time-to-market performance measure used
in judging product development performance?
Customer loyalty
Product reliability
Frequency of new-product introductions
1 In business forecasting, what is usually considered a medium-term
time period?
One to six months
Three months to two years
Six weeks to one year
One to five years
1 There are many applications of poka-yokes in service organizations.
Which of the following is one of the three-T's used to classify pokayokes?

1 Assuming no safety stock, what is the reorder point (R) given an

average daily demand of 78 units and a lead time of 3 days?
1 Which of the following is a measure of operations and supply
management efficiency used by Wall Street?
Earnings per share growth
Current ratio
Dividend payout ratio
Receivable turnover
1 A

project starts out as which of the following?

Critical path method (CPM)
A latest-start-time estimate
A series of milestones
A statement of work

1 The ability to rapidly and inexpensively switch production from one

product to another enables what are sometimes referred to as:
Economies of shape
Economies of scope
Economies of size
Economies of scale
1 According to the theory of constraints, which of the following is a
financial measurement that can be used to measure the firm's ability
to make money?
Net profit
1 What is a work breakdown structure?
A depiction of the activities making up a project

A Gantt chart
A list of the activities making up the higher levels of the project
A definition of the hierarchy of project tasks, subtasks, and work

1 If a firm produced a standard item with relatively stable demand, the

smoothing constant alpha (reaction rate to differences) used in an
exponential smoothing forecasting model would tend to be in which of
the following ranges?
5 to 10 percent
60 to 120 percent
20 to 80 percent

20 to 50 percent

1 What transportation mode has very high initial investment costs but
gives a very low cost per mile for products that are highly specialized
and require no packaging?

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