Q&A Hero

Q: In the context of sequencing, the _____ minimizes the average lateness of a set of jobs. a. shortest processing time rule b. earliest due date rule c. first come, first serve rule d. fewest number of operations remaining rule

Q: When a customer enters a store there are three outcomes that can occur: buy nothing, buy a small amount, or buy a large amount. In this situation, if a customer buys a large amount, he or she cannot also buy a small amount or buy nothing. Thus the events are: A) independent. B) mutually exclusive. C) all inclusive. D) dependent events.

Q: In the context of operations management, triage nurses deciding on the order in which emergency patients are to be treated is an example of _____. a. appointing b. sequencing c. statistical forecasting d. demand planning

Q: A study was recently done in which 500 people were asked to indicate their preferences for one of three products. The following table shows the breakdown of the responses by gender of the respondents.Suppose one person is randomly chosen. Based on this data, what is the probability that the person chosen is a female who prefers product C?A) 0.24B) 0.86C) 0.92D) 0.31

Q: The first step in implementing the Clarke-Wright Method is to compute the savings for all pairs of customers. A local restaurant franchise has four locations in one city. Each week, cases of taco shells must be delivered from the central warehouse to the restaurants. The table below shows the travel time in minutes between the locations (1, 2, 3, 4), as well as to and from the warehouse (0). Delivery Time Demandi/j 0 1 2 3 4 (Cases required)0 - 21 11 3 8 -1 - 10 5 12 102 - 9 4 63 - 13 44 - 8Which pair of customers s(i,j) has the largest savings?a. 1, 2b. 1, 3c. 2, 3d. 2, 4

Q: There are five jobs in a factory. All these jobs have to go through two workstations for processing. Each job is processed on Workstation #1 and then on Workstation #2. The processing time for each job on each workstation is given below.JobTime on Workstation #1(minutes)Time on Workstation #2(minutes)A5050B208C2550D3012E1122F1119Using Johnson's sequencing rule, it can be concluded that the makespan of the sequence is:a. more than 50 but less than or equal to 100 minutes.b. more than 100 but less than or equal to 150 minutes.c. more than 150 but less than or equal to 200 minutes.d. more than 200 but less than or equal to 250 minutes.

Q: In the context of sequencing, _____ is the time needed to process a given set of jobs. a. flow time b. makespan c. lateness d. tardiness

Q: A new surgical facility called Cut & Sew has opened in the United States. The branches of the facility are spread throughout the country. These are job shops that handle a variety of outpatient surgical procedures. The process of the facility is set up in a way that one doctor will cut and another will sew. The data regarding the patients and the estimated time for cutting and sewing for each patient are given in the following table:PatientCut Time (hours)Sew Time (hours)A2.32.8B2.53.0C2.01.5D0.61.0E3.62.6Using Johnson's sequencing rule, the final sequence of the patients is _____.a. A-B-C-D-Eb. B-E-A-C-Dc. C-A-B-E-Dd. D-A-B-E-C

Q: A consumer products company is planning to introduce a new product. The method that is least likely to be used to assess the probability of the product being successful is: A) classical probability assessment. B) subjective assessment. C) relative frequency of occurrence. D) elementary events.

Q: At gambling casinos all over the country, a popular dice game is called craps. The probability of a player winning at this game can be assessed using: A) subjective assessment. B) classical probability. C) relative frequency of occurrence. D) None of the above

Q: A requirement of two-resource sequencing rule is that: a. all jobs must begin at the same time. b. each job must be processed first on the first resource and then on the second. c. a maximum of two jobs can be processed at a time on each resource. d. total processing time must be minimized.

Q: The method of probability assessment that is least likely to be used by business decision makers is: A) subjective assessment. B) relative frequency of occurrence. C) classical assessment. D) None of the above is used by decision makers.

Q: In a two-resource sequencing problem, _____. a. the processing time for each job on each resource is unknown b. flow time is maximized c. the goal is to minimize makespan d. a job can be processed by either of its resources in any sequence

Q: The method of probability assessment that relies on an examination of historical data from similar situations is: A) relative frequency of occurrence. B) classical assessment. C) historical assessment. D) subjective assessment.

Q: An event is: A) the list of possible outcomes that can occur from a selection or decision. B) a collection of elementary events. C) similar to an experiment but not controlled by the decision maker. D) more frequently found in business than in other disciplines.

Q: Two examples of process-focused performance measures for sequencing rules are tardiness and lateness. a. True b. False Indicate the answer choice that best completes the statement or answers the question.

Q: In priority dispatching rules, the acronym FNO stands for feasible number of operations remaining. a. True b. False

Q: If a six-sided die is tossed two times and "4" shows up both times, the probability of "4" on the third trial is much larger than any other outcome.

Q: Customized scheduling spreadsheets use readily available software such as Microsoft Excel, but may be rather expensive to develop. a. True b. False

Q: The Baker Oil and Gas Company has four retail locations, code-named A, B, C, and D. The following table illustrates the percentage of total company sales at each store and also the percentage of customers at that store who make purchases with debit cards: Store Proportion of Total Sales Proportion of Customers Using Debit A 0.18 0.32 B 0.30 0.19 C 0.41 0.18 D 0.11 0.40 Based on this information, the probability that a customer who used a debit card shopped at store C is 0.0738.

Q: The Clarke-Wright Heuristic Method is used to solve the common scheduling problem in logistics that involves determining routes from a central depot or warehouse to many customers. a. True b. False

Q: Indicate whether the statement is true or false.Different industries use different software packages for scheduling because every industry has different problem structures.a. Trueb. False

Q: The lot-for-lot (LFL) rule is best applied when: a. inventory-carrying costs are high. b. space constraints are low. c. costs associated with purchase orders are high. d. setup costs are moderate.

Q: The Crystal Window Company makes windows at three locations: Reno, Las Vegas, and Boise. Some windows made by the company contain a visible defect and must be replaced. Each defect costs the company $45.00. The Reno plant makes 40 percent of all windows while the Las Vegas and Boise plants split the remaining production evenly. A recent quality study shows that 8 percent of the Reno windows contain a defect, 11 percent of the Las Vegas windows contain a defect, while 4 percent of the windows made in Boise have a defect. Once the windows are made, they are shipped to a central warehouse where they are commingled and the location where they were made is lost. Based on this information, the percentage of the defective cost that should be allocated to the Reno plant is approximately 42 percent.

Q: Capacity requirements are computed by multiplying the number of units scheduled for production at a work center by the: a. the unit resource requirements and then adding in the setup time. b. the setup time and then subtracting the unit resource requirements. c. the setup time and then adding in the unit resource requirements. d. the unit resource requirements and then subtracting the setup time.

Q: In a garments factory, a part requires 0.10 hours of labor per unit in Work Center B and 1 hour of setup time. The planned order release (order size) for a week is 2000 units. Which of the following is the capacity requirement for a week at Work Center B? a. 101 b. 151 c. 201 d. 251

Q: Which of the following lot sizing rules bases the order quantity on a standard-size container or pallet load? a. The lot-for-lot rule b. The fixed-order quantity rule c. The periodic-order quantity rule d. The gross requirements rule

Q: Assume P(A) = 0.6, P(B) = 0.7, and P(A and B) = 0.42, which means that events A and B are independent of each other.

Q: Which of the following lot sizing rules is best applied when setup or order costs are high? a. The fixed-order quantity rule b. The lot-for-lot rule c. The periodic-order quantity rule d. The gross requirements rule

Q: There are three general locations that a taxi can go to: the airport, downtown, and elsewhere. When a taxi driver starts in the downtown location, there is a 0.40 chance that his first call will take him to the airport and a 0.40 chance of going to another downtown location. Once a taxi is at the airport, there is a 0.80 probability that the next fare will take him downtown and a 0.20 chance of going elsewhere. The probability of a call from anywhere except downtown taking him to the airport is 0.20. Therefore, the probability that the taxi is at the airport when the third call arrives after going on shift is 0.20.

Q: A company currently has 500 items in inventory. The demand for the next 2 months is 900 and 1200 units. Assuming a level production rate of 1000 units per month, determine the ending inventory at the end of the second month. a. 300 b. 400 c. 500 d. 600

Q: When customers come to a bank, there are three primary locations they may select to go to: teller, loan officer, or escrow department. Based on past experience, the following probability distribution applies: Location Probability Teller 0.60 Loan Officer 0.30 Escrow 0.10 Seventy percent of customers are males. The probability that the next customer will be male and will go to either the teller or the escrow department is 0.49.

Q: In manufacturing, a _____ is a statement of how many finished items are to be produced and when they are to be produced. a. master production schedule b. capacity requirements plan c. materials requirements plan d. planned order receipt

Q: Which of the following is true of process selection models? a. The objective is usually to minimize cost, and typical constraints are meeting demand requirements and resource limitations. b. The goal is to use machines with identical capabilities. c. They seek to determine quantities of different products to produce and sell in order to maximize contribution to profit. d. Typical constraints include marketing requirements such as minimum and maximum amounts to produce.

Q: Which of the following is true of a level production strategy? a. Labor schedules are dynamic. b. Equipment schedules are stable. c. There are no capacity restrictions. d. The production rate keeps changing.

Q: _____ are the quantity of a component needed to support production at the next-higher level of assembly. a. Planned order receipts b. Scheduled receipts c. Explosions d. Gross requirements

Q: The following probability distribution was subjectively assessed for the number of sales a salesperson would make if he or she made five sales calls in one day. Sales Probability 0 0.10 1 0.15 2 0.20 3 0.30 4 0.20 5 0.05 When the salesperson makes a sale, there are three possible sales levels: large, medium, and small. The probability of a large sale is 0.20 and the chance of a medium sale is 0.60. The probability on a given day that the salesperson will make one sale and that it is medium is 0.09.

Q: Which of the following is true of the lot-for-lot (LFL) rule? a. It minimizes the costs associated with production setups. b. It ignores the costs associated with purchase orders. c. It maximizes the amount of inventory that needs to be carried. d. It masks the true nature of dependent demand.

Q: When the salesperson makes a sale, there are three possible sales levels: large, medium, and small. The probability of a large sale is 0.20 and the chance of a medium sale is 0.60. If a salesperson makes two sales, the probability that at least one is large is 0.36.

Q: _____ is the process of using the logic of dependent demand to calculate the quantity and timing of orders for all subassemblies and components that go into and support the production of the end item(s). a. Final assembly schedule b. Materials requirements planning explosion c. Disaggregation d. Capacity requirements planning

Q: Assume P(A) = 0.4 and P(B) = 0.2 and P(A and B) = 0.1, then the probability of P(A or B) = 0.7.

Q: A company currently has no items in inventory. The demand for the next four months is 200, 400, 250, and 350 units. Assuming a level production rate of 350 units per month, determine the ending inventory at the end of the fourth month. a. 100 b. 150 c. 200 d. 250

Q: Aggregate planning: a. is not driven by demand forecasts. b. includes detailed staff schedules. c. helps in defining budget allocations and associated resource requirements. d. does not translate forecast into production plans.

Q: _____ models seek to determine quantities of different products to produce and sell in order to maximize contribution to profit. a. Product mix b. Process selection c. Linear optimization d. Linear regression

Q: JamTime Music Company manufactures two types of headsets: a basic model and a professional model. In order to manufacture the headsets, they go through two departments: assembly and testing. The assembly department has 9 workers who work 8 hours/day each. The testing department has 3 workers who also work 8 hours/day each. Each basic headset model spends 3 hours in the assembly department and 1.5 hours in the testing department. Each professional headset model spends 5 hours in the assembly department and 3 hours in the testing department. The company makes a net profit of $100 for each basic headset and $175 for each professional headset. JamTime Music Co. predicts that they will sell at least two times as many basic models as professional models. Using this information, determine the objective function to maximize profit. Use the variable B for the number of basic model headsets and P for the number of professional model headsets. a. 5B + 3P b. 3B + 5P c. 100B + 175P d. 175B + 100P

Q: _____ refers to moving work from one workstation to another, assigning people to tasks, setting priorities for jobs, scheduling equipment, and controlling processes. a. Aggregate planning b. Disaggregation c. Capacity planning d. Execution

Q: Suppose 10 students are enrolled in a class and the probability of at least 8 showing up on a given day is 90 percent. Then the probability of 7 or fewer showing that day is 10 percent.

Q: If a single die is rolled (a cube where the sides are numbered 1 through 6), the probability of rolling at least a 3 is 0.33.

Q: For goods-producing firms, at which of the following levels of resource planning does scheduling for individual subassemblies and resources by week and day take place? a. Aggregate planning b. Disaggregation c. Execution d. Demand forecasting

Q: In the context of aggregate planning options, which of the following costs are an implication of allowing stockouts? a. Inventory-carrying costs b. Lost sales and customer loyalty costs c. High labor costs and premiums d. Separation costs

Q: A used car lot has 15 cars. Five of these cars were manufactured in the United States and the others were made in other countries. If one car is purchased at random from this car lot, the probability that it is a U.S. car is 0.33.

Q: Mutually exclusive means that the occurrence of event A has no effect on the probability of the occurrence of event B, and independent means the occurrence of event A prevents the occurrence of event B.

Q: Which of the following is true of a master production schedule (MPS)? a. Its primary output is a time-phased report for scheduling raw materials purchase. b. It provides a means for evaluating alternative schedules in terms of capacity requirements. c. Its input is obtained from the materials requirements planning. d. It projects the requirements for the individual parts based on the demand for the finished goods.

Q: Sometime it is necessary to assign probabilities based on a person's belief that an outcome will occur.

Q: The periodic-order quantity (POQ) can be determined using an economic time interval, which is the economic order quantity (EOQ) divided by _____. a. on-hand inventory b. annual demand c. gross requirements d. total required inventory

Q: When a construction company bids on a contract, the events will be win or lose. The closer the probability is to 0.50, the greater the uncertainty about whether the company will win or lose the bid.

Q: _____ is the process of determining the amount of labor and machine resources required to accomplish the tasks of production on a more detailed level, taking into account all component parts and end items in the materials plan. a. Capacity requirements planning b. Materials requirements planning explosion c. Disaggregation d. Execution

Q: During the past week, of the 250 customers at the Dairy Queen who ordered a Blizzard, 50 ordered strawberry. This means that of the next five Blizzard customers, exactly one will order strawberry.

Q: A dam on a river that holds back a water reservoir begins to leak. Engineers say that there is a 10 percent chance of the dam breaking if repairs are not made. This is an example of classical probability.

Q: Resource management for most service-providing organizations generally requires as many intermediate levels of planning as it does for manufacturing.a. Trueb. False

Q: It is correct to say that subjective probability assessments are neither right nor wrong, but are merely reflections of the state of mind of the individual making the probability assessment.

Q: The purpose of a master production schedule (MPS) is to break down the aggregate planning decisions into such details as order sizes and schedules for individual subassemblies and resources by week and day. a. True b. False

Q: A New Jersey company relies on a steady supply of power to keep its manufacturing going. Recently at a planning meeting, the general manager stated that the chance of a rolling blackout affecting production is 0.15. She most likely made this assessment using subjective probability assessment.

Q: In industries where jobs have low skill requirements, changing workforce levels can be cost effective. a. True b. False

Q: At a potato processing plant in the state of Washington, 400 potatoes have been examined for disease. Of these, four were diseased. Based on this, the plant manager has stated that the probability of finding a diseased potato is 0.01. He is applying subjective probability to arrive at this 0.01 value.

Q: Indicate whether the statement is true or false.Enterprise resource planning (ERP) systems integrate all aspects of a business into a unified information system.a. Trueb. False

Q: Suppose a coin is flipped twice. The event of getting heads on the first toss and the event of getting heads on the second toss could be said to be mutually exclusive.

Q: The _____ function of a supply chain is responsible for selecting transportation carriers and managing company-owned fleets of vehicles. a. integration b. procurement c. logistics d. scheduling

Q: One of the difficulties in using the relative frequency of occurrence method for assessing probabilities in business situations is getting a large enough set of examples that match the one in question.

Q: The Pharmaceutical Manufacturers Association defines a _____ as one that, after extensive investigation, is found to provide material of such quality that routine testing on each lot received is unnecessary. a. certified supplier b. contract manufacturer c. licensed franchisor d. return facilitator

Q: If you were planning to take a small group out to dinner on a Thursday evening and you were considering whether to call ahead for a reservation, the method of probability assessment you would most likely use to assess the chances of being able to get in for dinner without having a reservation would be subjective assessment.

Q: _____ is the supply chain function responsible for acquiring raw materials, component parts, tools, services, and other items required from external suppliers. a. Procurement b. Scheduling c. Integration d. Job design

Q: When a patient arrives at a clinic complaining of several specific symptoms, the doctor who makes the diagnosis says that he is 80 percent certain that the patient has a particular problem. It is likely that he is basing this assessment on relative frequency of occurrence.

Q: In the context of the metrics used to identify improvements to the operation of supply chains, financial measures: a. include perfect order fulfillment and perfect delivery fulfillment. b. show how supply chain performance affects the bottom line. c. calculate order fulfillment lead time in supply chains. d. show how quickly goods move through supply chains.

Q: The owners of Greg's Department Store have reason to believe that one of their employees has been stealing from the store. In an interview with the police, the owner says that she is 75 percent sure that the employee is stealing. This probability is an example of one that was assessed using classical probability.

Q: If an online retail store has cost of goods sold equal to $2 million, has 200 operating days in a year, and has a total average on-hand inventory of $500,000, the cost of goods sold per day is _____. a. $2,500 b. $15,000 c. $7,500 d. $10,000

Q: Which of the following is a disadvantage of vendor-managed inventory (VMI)? a. It often results in higher customer inventories than necessary. b. It does not allow vendors to view inventory needs from the customer's perspective. c. It prohibits the use of customer information, which leads to poor control of inventory and capacity. d. It prevents vendors from making production decisions using downstream customer demand data.

Q: Classical probability assessment is likely to be the most common method of probability assessment used in business decision making.

Q: If a manager were interested in assessing the probability that a new product will be successful in a New Jersey market area, she would most likely use relative frequency of occurrence as the method for assessing the probability.

Q: Based on the following information, how many days of supply of inventory is the firm holding (assume 260 days of operation per year)? Do not round intermediate calculations. Round your answer to one decimal place. Sales $8,300,000 Cost of goods sold $7,540,000 Gross profit $760,000 Overhead costs $600,000 Net profit $160,000 Total inventory $2,600,000 Fixed assets $3,100,000 Long-term debt $2,300,000 a. 89.7 days b. 99.2 days c. 89.2 days d. 95.2 days