Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Business Development
Q:
(p. 49) Exponential smoothing is always the best and most accurate of all forecasting models.
Q:
Simulation is used in manufacturing management to determine production schedules, inventory Levels and to do capacity planning.
Q:
(p. 56) The equation for exponential smoothing states that the new forecast is equal to the old forecast plus the error of the old forecast.
Q:
What is the difference between statistical process control (SPC) and statistical quality control (SQC)?
Q:
(p. 55) A central premise of exponential smoothing is that more recent data is less indicative of the future than data from the distant past.
Q:
Explain the difference between producer's risk and consumer's risk in acceptance sampling.
Q:
(p. 54) The weighted moving average forecasting model uses a weighting scheme to modify the effects of individual data points. This is its major advantage over the simple moving average model.
Q:
What does it mean when we say that a process is capable?
Q:
(p. 55) Bayesian analysis is the simplest way to choose weights for the weighted moving average forecasting model.
Q:
Lots are defined as low quality when the percentage of defective units is greater than what?
Q:
(p. 55) Experience and trial and error are the simplest ways to choose weights for the weighted moving average forecasting model.
Q:
You have 75 total defects from 100 different samples of 15. What is p?
Q:
(p. 56) In the simple exponential smoothing forecasting model you need at least 30 observations to set the smoothing constant alpha.
Q:
All else being equal, how large is the effect of lot size on sample size?
Q:
(p. 53) In a forecasting model using simple moving average the shorter the time span used for calculating the moving average, the closer the average follows volatile trends.
Q:
What is the symbol designating the capability index?
Q:
(p. 52) In a forecasting model using simple exponential smoothing the data pattern should remain stationary.
Q:
You want to develop a three-sigma "R" chart. You know the average range is 12 based on several samples of size 6. Which of the following is the resulting LCL?
Q:
(p. 54) In the weighted moving average forecasting model the weights must add up to one times the number of data points.
Q:
(p. 52) Time series forecasting models make predictions about the future based on analysis of past data.
Q:
You are developing an "X-bar" chart based on sample means. You know the standard deviation of the sample means is 4, the desired confidence level is 99 percent and the average of the sample means is 20. What is your LCL?
Q:
(p. 51) Trend lines are usually the last things considered when developing a forecast.
Q:
You want to determine the control lines for a "p" chart for quality control purposes. If the total number of defects from all samples is 560, the number of samples is 70 and the sample size is 80, what would be the standard deviation used in developing the control lines?
Q:
(p. 51) Cyclical influences on demand may come from occurrences such as political elections, war or economic conditions.
Q:
(p. 50) Cyclical influences on demand are often expressed graphically as a linear function that is either upward or downward sloping.
Q:
(p. 50) Continual review and updating in light of new data is a forecasting technique called second-guessing.
Q:
(p. 48) Distinguish between strategic and tactical forecasts.
Q:
Processes produce goods and services that have some measurable variation in attributes. What is the quality philosophy that companies which insist on design tolerances set six standard deviations of attribute variation away from the mean are operating under?
Q:
(p. 76-78) Describe the collaborative planning, forecasting and replenishment (CPFR) technique.
Q:
If you are going to develop an "R" chart based on range statistics and you are using a sample size of 15 for your charting purposes. Which of the following is the upper control limit D4 factor for the chart?
A. 1.65
B. 1.70
C. 1.76
D. 1.87
E. 1.92
Q:
(p. 49-50) What does the text mean when it states that rather than to search for the perfect forecast one should learn to live with inaccurate forecasts?
Q:
If you are going to develop an "R" chart based on range statistics and you are using a sample size of 9 for your charting purposes. Which of the following is the lower control limit D3 factor for the chart?
A. 0.08
B. 0.14
C. 0.18
D. 0.22
E. 0.29
Q:
(p. 48) What do we call forecasts needed for how a firm operates on a day-to-day basis? _______________________________________
Q:
If you are going to develop an "X-bar" chart based on range statistics and you are using a sample size of 12 for your charting purposes. Which of the following is the A2 factor for the "X-bar" chart?
A. 0.37
B. 0.31
C. 0.27
D. 0.22
E. 0.18
Q:
(p. 48) What do we call forecasts that are for very high-level demand analysis? _______________________________________
Q:
You want to develop a three-sigma "R" chart. You know the average range is 12 based on several samples of size 6. Which of the following is the resulting LCL?
A. 20.0
B. 18.3
C. 7.02
D. 5.6
E. 0.0
Q:
(p. 63) When analyzing time series data, if demand data contains both seasonal and trend effects at the same time, what are the two ways that they can relate to each other discussed in the text? 1) ___________________________
2) ___________________________
Q:
You want to develop a three-sigma "R" chart. You know the average range is 5 based on several samples of size 10. Which of the following is the resulting UCL?
A. 20.9
B. 8.9
C. 7.02
D. 5
E. 3.1
Q:
(p. 76-78) What are the five steps of CPFR (collaborative planning, forecasting and replenishment?)
Q:
You are developing an "X-bar" chart based on sample means. You know the standard deviation of the sample means is 4, the desired confidence level is 99 percent and the average of the sample means is 20. Which of the following is your LCL?
A. 36
B. 24
C. 9.68
D. 16.79
E. 30.32
Q:
You are developing an "X-bar" chart based on sample means. You know the standard deviation of the sample means is 4, the desired confidence level is 99.7 percent and the average of the sample means is 24. Which of the following is your UCL?
A. 36
B. 24
C. 12
D. 4
E. None of the above
Q:
(p. 56) A company has had actual unit demand for four consecutive years of 100, 110, 125, and 150. The respective forecasts using exponential smoothing were 120 for each of those four years. What value of alpha, the smoothing constant, was the firm using? ____________________________________
Q:
(p. 55-56) As a consultant you have been asked to generate a unit demand forecast for a product for Year 2014 using exponential smoothing. Actual demand in year 2013 was 950 but the forecast for that year 1,060. Using this data and a smoothing constant alpha of 0.5, which of the following is the resulting year 2014 forecast value? ________________________________________
Q:
Which of the following should we use an "R" chart to monitor process quality?
A. Weighing trucks at a highway inspection station to determine if they are overloaded
B. Deciding whether an airliner has sufficient fuel for its trip
C. Student grades measured from 1 to 100
D. Determining whether vehicles from a motor pool will run
E. Determining the accuracy of a forecast of "snow"
Q:
(p. 54) A company wants to forecast demand using the weighted moving average. If the company uses two prior yearly sales values (i.e., year 2012 = 11,000 and year 2013 = 13,000), and we want to weight year 2012 at 35% and year 2013 at 65%, what is the weighted moving average forecast for Year 2014? __________________________________________
Q:
Which of the following should we use an "R" chart to monitor process quality?
A. Grades in a freshman "pass/fail" course
B. Tire pressures in an auto assembly plant
C. Vehicles passing emissions inspection
D. Computer software errors
E. Number of units with missing operations
Q:
With which of the following should we use an "X-bar" chart based on sample means to monitor process quality?
A. Grades in a freshman "pass/fail" course
B. Tire pressures in an auto assembly plant
C. Vehicles passing emissions inspection
D. Computer software errors
E. Number of units with missing operations
Q:
(p. 53) A company wants to forecast demand using the simple moving average. If the company uses three prior yearly sales values (i.e., year 2011 = 185, year 2012 = 215, and year 2013 =230), what is the simple moving average forecast for year 2014? __________________________________
Q:
For which of the following should we use a "p" chart to monitor process quality?
A. The dimensions of brick entering a kiln
B. Lengths of boards cut in a mill
C. The weight of fluid in a container
D. Grades in a freshman "pass/fail" course
E. Temperatures in a classroom
Q:
(p. 71) A company has calculated its running sum of forecast errors to be 1,000 and its tracking signal is 50. What is the company's mean absolute deviation? _________________________________
Q:
(p. 71) A company has calculated its running sum of forecast errors to be 400 and its mean absolute deviation is exactly 25. What is the company's tracking signal? _________________________________
Q:
For which of the following should we use a "p" chart to monitor process quality?
A. Defective electrical switches
B. Errors in the length of a pencil
C. Weight errors in cans of soup
D. Temperature of entrees in a restaurant
E. Letter grades on a final examination
Q:
(p. 50) Name the four basic types of forecasting.
Q:
You want to determine the control lines for a "p" chart for quality control purposes. If the total number of defects from all samples is 560, the number of samples is 70 and the sample size is 80, which of the following would be the standard deviation used in developing the control lines?
A. 0.9000
B. 0.4556
C. 0.0335
D. 0.0011
E. 0.0112
Q:
(p. 71) You are using an exponential smoothing model for forecasting. The running sum of the forecast error statistics (RSFE) are calculated each time a forecast is generated. You find the last RSFE to be 34. Originally the forecasting model used was selected because it's relatively low MAD of 0.4. To determine when it is time to re-evaluate the usefulness of the exponential smoothing model you compute tracking signals. Which of the following is the resulting tracking signal? A. 85 B. 60 C. 13.6 D. 12.9 E. 8
Q:
You want to determine the control lines for a "p" chart for quality control purposes. If the total number of defects from all samples is 2,500, the number of samples is 100 and the sample size is 50, which of the following would be the standard deviation used in developing the control lines?
A. 0.4900
B. 0.2499
C. 0.1556
D. 0.0707
E. 0.02499
Q:
(p. 72) Heavy sales of umbrellas during a rain storm is an example of which of the following?
A. A trend
B. A causal relationship
C. A statistical correlation
D. A coincidence
E. A fad
Q:
You want to determine the control lines for a "p" chart for quality control purposes. If the desired confidence level is 99 percent, which of the following values for "z" would you use in computing the UCL and LCL?
A. 0.99
B. 2
C. 2.58
D. 3
E. None of the above
Q:
(p. 59) A company hires you to develop a linear regression forecasting model. Based on the company's historical sales information, you determine the intercept value of the model to be 1,200. You also find the slope value is minus 50. If after developing the model you are given a value of X = 10, which of the following is the resulting forecast value using this model?
A. - 1,800
B. 700
C. 1,230
D. 1,150
E. 12,000
Q:
You want to determine the lower control line for a "p" chart for quality control purposes. You take several samples of a size of 50 items in your production process. From the samples you determine the fraction defective is 0.006 and the standard deviation is 0.001. If the desired confidence level is 99.7 percent, which of the following is the resulting LCL value for the line?
A. 0.0
B. 0.002
C. 0.003
D. 0.004
E. None of the above
Q:
(p. 59) If the intercept value of a linear regression model is 40, the slope value is 40, and the value of X is 40, which of the following is the resulting forecast value using this model?
A. 120
B. 1,600
C. 1,640
D. 2,200
E. 64,000
Q:
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?
A. 0.39
B. 0.08
C. 0.06
D. 0.05
E. None of the above
Q:
(p. 70) Which of the following is the portion of observations you would expect to see lying within a plus or minus 2 MAD range?
A. 57.04
B. 89.04
C. 98.33
D. 99.86
E. 100.00
Q:
If there are 400 total defects from 8 samples, each sample consisting of 20 individual items in a production process, which of the following is the fraction defective that can be used in a "p" chart for quality control purposes?
A. 400
B. 160
C. 2.5
D. 1.0
E. 0.4
Q:
(p. 32-33) Explain the role that "order qualifiers" and "order winners" play as the interface between marketing and operations.
Q:
If there are 120 total defects from 10 samples, each sample consisting of 10 individual items in a production process, which of the following is the fraction defective that can be used in a "p" chart for quality control purposes?
A. 120
B. 10
C. 8
D. 1.2
E. 0.8
Q:
(p. 30-32) Describe a specific example of the trade-offs between any two of the competitive dimensions.
Q:
Quality control charts usually have a central line and upper and lower control limit lines. Which of the following are reasons that the process being monitored with the chart should be investigated?
A. A single plot falls above or below the control limits
B. Normal behavior
C. A large number of plots are on or near the central line
D. No real trend in any direction
E. A change in raw materials or operators
Q:
(p. 26) People who provide capital to the firm through stock purchases are called: _____________________
Q:
Quality control charts usually have a central line and upper and lower control limit lines. Which of the following is not a reason that the process being monitored with the chart should be investigated?
A. A large number of plots are close to the upper or lower control lines
B. Erratic behavior of the plots
C. A single plot falls above or below the control limits
D. A change in raw materials or operators
E. A run of five above the central line
Q:
(p. 26) Individuals or organizations that are influenced, either directly or indirectly, by the actions of the firm are called: _____________________
Q:
(p. 26) The triple-bottom-line evaluates the firm against what three criteria?
Q:
You have just used the capability index (Cpk) formulas to compute the two values "min [1.5, 1]". Which of the following is the interpretation of these numbers?
A. The true capability index value is 1
B. The mean of the production process has shifted to the left of the design limits
C. The mean of the production process has shifted to the right of the design limits
D. The mean has not shifted at all
E. The true capability index value is between 1.5 and 1
Q:
You have just used the capability index (Cpk) formulas to compute the two values "min [1, 1]". Which of the following is the proper interpretation of these numbers?
A. The true capability index value is exactly 1
B. The mean of the production process has shifted to the left of the design limits
C. The mean of the production process has shifted to the right of the design limits
D. The mean has not shifted at all
E. None of the above
Q:
(p. 34) A diagram showing how a company's strategy is delivered through a set of tailored activities is called what? _____________________
Q:
(p. 32) What is a criterion or product characteristic that differentiates a product from the products of competitors in a way meaningful to the market called? ____________________
Q:
You have just used the capability index (Cpk) formulas to compute the two values "min [2, 2.5]". Which of the following is the proper interpretation of these numbers?
A. The true capability index value is 2.5
B. The mean of the production process has shifted to the left of the design limits
C. The mean of the production process has shifted to the right of the design limits
D. The mean has not shifted at all
E. The true capability index value is between 2 and 2.5
Q:
In monitoring process quality we might use which of the following statistics?
A. Absolute values
B. Percentage deviation from tolerance centers
C. "k" values for the sample mean
D. Logarithmic control intervals
E. Difference between the highest and lowest value in a sample
Q:
(p. 38) Various financial data for SunPath Manufacturing for 2012 & 2013 follow. What is the percentage change in the multifactor labor and raw materials productivity measure for SunPath between 2012 & 2013?
A. -9.22
B. 2.33
C. -0.53
D. -2.88
E. 10.39
Q:
In variables sampling the actual measurements of the variable observed are used regardless of whether the unit is good or bad.