Q&A Hero

Q: Which of the following statements is true of backorders? a. They occur as a result of excessive stock. b. They occur when a customer is unwilling to wait for an ordered item. c. They result in additional costs. d. They force a customer to purchase elsewhere.

Q: Cross County Bicycles makes two mountain bike models that each come in three colors. The following table shows the production volumes for last week:What is the joint probability that a product manufactured is a YZ-99 and brown?A) 0.2088B) 0.3819C) 0.3157D) 0.1324

Q: Net Steels is a steel manufacturing company. It orders 180 metric tons of raw material per order. It was observed that the company often faces stockout. To tackle this issue, the company incorporated a fixed-quantity system (FQS) and collected the following data.Demand11,000 metric tons per yearOrder Cost$18,000 per orderItem Cost$36,000 per yearInventory-Holding Cost20 percent per yearUsing the data, Net Steels determined that the economic order quantity (EOQ) should be 235 metric tons. In this scenario, the annual amount that Net Steels can save by ordering as per the EOQ instead of its conventional order is:a. less than $45,000.b. more than $45,000 but less than or equal to $55,000.c. more than $55,000 but less than or equal to $65,000.d. more than $65,000.

Q: Which of the following statements is true of a fixed-period system (FPS)? a. It orders a fixed quantity of items when the inventory position reaches or drops below the reorder point (r). b. It orders sufficient stock at the time of review to bring the inventory position up to the replenishment level (M). c. It maintains a constant order quantity every review period. d. It checks the inventory position on a continuous basis.

Q: The results of a census of 2,500 employees of a mid-sized company with 401(k) retirement accounts are as follows: Account Balance (to nearest $) Male Female $25,000 635 495 $25,000-$49,999 185 210 $50,000-$99,999 515 260 $100,000 155 45 Suppose researchers are going to sample employees from the company for further study. Compute the probability that a randomly selected employee will be a female with an account balance between $50,000 and $99,999. A) 0.1580 B) 0.1040 C) 0.6160 D) 0.4040

Q: In the context of managing inventories in supply chains, _____ is the time between placement of an order and its receipt. a. the lead time b. a time series c. the changeover time d. a time horizon

Q: The demand for trains between Marshdell and Deepbarrow varies throughout the year. The demand reaches its peak in summer and drops during winter. This demand for trains can be categorized as _____ demand. a. static b. overfull c. unwholesome d. dynamic

Q: Stable demand is usually called _____ demand. a. static b. overfull c. unwholesome d. dynamic

Q: Students who live on campus and purchase a meal plan are randomly assigned to one of three dining halls: the Commons, Northeast, and Frazier. What is the probability that the next student to purchase a meal plan will be assigned to the Commons? A) 0.66 B) 0.5 C) 0.25 D) 0.33

Q: In the context of fixed-quantity systems, _____ is defined as the on-hand quantity (OH) plus any orders placed but which have not arrived minus any backorders (BO). a. inventory position b. the reorder point c. a stock-keeping unit d. work-in-process inventory

Q: Long-time friends, Pat and Tom, agree on many things, but not the outcome of the American League pennant race and the World Series. Pat is originally from Boston, and Tom is from New York. They have a steak dinner bet on next year's race, with Pat betting on the Red Sox and Tom on the Yankees. Both are convinced they will win. What probability assessment technique is being used by the two friends? A) Subjective probability B) Classical probability C) Relative frequency probability D) Independent probability

Q: Vision Toys uses a fixed-quantity system to manage its inventories. The inventory includes plastic and LED bulbs. It was observed that the company often faces stockout of plastic. The average weekly demand for plastic is 100 pounds, and historical data show that the standard deviation of weekly demand is about 7. The lead time from the plastic supplier is 2 weeks. If the company's acceptable service level is 95 percent and the number of standard deviations necessary to achieve the acceptable service level is 1.645, the reorder point for plastic with safety stock is: a. less than or equal to 125 pounds. b. more than 125 pounds but less than or equal to 175 pounds. c. more than 175 pounds but less than or equal to 225 pounds. d. more than 225 pounds.

Q: An inventory of appliances contains four white washers and one black washer. If a customer selects one at random, what is the probability that the black washer will be selected? A) 0.5 B) 0.4 C) 0.2 D) 0.8

Q: What method of probability assessment would most likely be used to assess the probability that a customer will return a purchase for a refund? A) Classical probability based on the ratio of the number of ways the event can occur B) Relative frequency based on previous history C) Subjective probability based on expert opinion D) Independent probability based on two unrelated outcomes

Q: _____ is the fraction of time a workstation or individual is busy over the long run. a. Computation b. Service Rate c. Utilization d. Efficiency

Q: The process for applying for a work permit at the Manchester department of labor is as follows. First, the administrator fills out an application (5 minutes) and takes a picture (1 minute). Then, a clerk enters the information and processes the permit (5 minutes). There are two administrators and three clerks. If the number of licenses per hour for the administrators is 16 and the number of licenses per hour for the clerks is 20.57, what is the hourly service rate for administrators? a. 5 b. 6 c. 10 d. 12

Q: A(n) _____ is the work activity that effectively limits the throughput of the entire process. a. breakdown b. bottleneck c. blockage d. broadband

Q: In a survey, respondents were asked to indicate their favorite brand of cereal (Post or Kellogg's). They were allowed only one choice. What is the probability concept that implies it is not possible for a single respondent to state both Post and Kellogg's to be the favorite cereal? A) Concept of independent events B) Concept of mutually exclusive events C) Concept of dependent events D) Concept of mutually inclusive events

Q: A special roulette wheel, which has an equal number of red and black spots, has come up red four times in a row. Assuming that the roulette wheel is fair, what concept allows a player to know that the probability the next spin of the wheel will come up black is 0.5? A) Concept of independent events B) Concept of mutually exclusive events C) Concept of dependent events D) Concept of mutually inclusive events

Q: In one method of calculating utilization, _____ divided by Service Rate Number of Servers. a. Resources Available b. Service Rate c. Demand Rate d. Resource Capacity

Q: An airline has one employee work the counter. A customer arrives on the average of once every 3 minutes, and it takes on average 2 minutes to process the transaction. What is the probability that a customer must wait for service in the queue? a. 0% b. 33% c. 66% d. 100%

Q: Of the last 100 customers entering a computer shop, 25 have purchased a computer. If the classical probability assessment for computing probability is used, the probability that the next customer will purchase a computer is: A) 0.25 B) 0.50 C) 1.00 D) 0.75

Q: A hotel has 200 rooms. If, on a given day, 150 rooms are occupied, which number represents the utilization of hotel rooms? a. 33% b. 50% c. 66% d. 75%

Q: Harrison Water Sports has three retail outlets: Seattle, Portland, and Phoenix. The Seattle store does 50 percent of the total sales in a year, while the Portland store does 35 percent of the total sales. Further analysis indicates that of the sales in Seattle, 20 percent are in boat accessories. The percentage of boat accessories at the Portland store is 30 and the percentage at the Phoenix store is 25. Overall, the probability that a sale by Harrison Water Sports will be for a boat accessory is: A) 0.105 B) 0.2425 C) 0.75 D) None of the above

Q: _____ = Throughput Flow time. a. Best-in-output b. Efficiency evaluation c. Work-in-process d. Standard Demand

Q: A scooter rental company in a major beachside city has 70% of its fleet of 200 scooters rented each day on average. Scooter are rented for an average of five days. Which of the following can you use to start figuring out the average process performance? a. (.7)(200 scooters)/R (5 days) b. (.7)(200 scooters) = R (5 days) c. (.7)(5 days) / R (200 scooters) d. (.7)(5 days) = R (200 scooters)

Q: The Anderson Lumber Company has three sawmills that produce boards of different lengths. The following table is a joint frequency distribution based on a random sample of 1000 boards selected from the lumber inventory.Based on these data, if three boards are selected at random, the probability that all three were made at sawmill A is:A) 0.037B) 0.334C) 1.00D) 0.556

Q: A warehouse is capable of processing 600 returns per day, and the average number of returns in the 200. Based on the data in the question, what is being calculated by dividing 600 by 200? a. Work-in process b. Flow time c. Process performance d. Throughput

Q: Which of the following is another term for one simulation run? a. Replication b. Redundancy c. Reference d. Reflection

Q: The number of units or tasks that are completed per unit time from a process is the _____. a. endput b. throughput c. input d. output

Q: Analytical queueing models assume a Poisson probability distribution for _____. a. arrivals b. rates c. service times d. departures

Q: _____ is the typical queueing system used by banks and airline ticket counters. a. Several parallel servers fed by their own queues b. One or more parallel servers fed by a single queue c. A combination of several queues in a series d. One server, one queue

Q: Explain how Tchebysheff's theorem can be used to help describe data in a population or a sample. Outcome: 5

Q: Explain how the empirical rule can be used to help describe data in a population or a sample.

Q: Which of the following is NOT an example of a nonphysical constraint? a. low product demand b. Associated with the capacity of a resource c. inefficient management policy d. anything environmental or organizational

Q: Which of the following is NOT true about simulation models? a. Simulations can be used to analyze processes that cannot be evaluated well analytically. b. A simulation model is used to get estimates; an analytical model provides detailed analysis. c. Simulations can use actual probability rates for both demand and service rates. d. Analytical and simulation models are often used in combination.

Q: Why is it that when we find the sample standard deviation, we divide by n-1 but when we find the population standard deviation we divide by n?

Q: Which of the following is NOT part of a queueing system? a. A server that provides the service b. A map of processes and functions c. A queue of entities that wait if the server is busy d. Customers that arrive for service

Q: Suppose that the distribution of grocery purchases is thought to be symmetric. If the mean purchase is $23.14, what would the median purchase be?

Q: Which of the following describes the general process for identifying a bottleneck? a. Measure the number of units completed per unit time. b. Calculate the speed of the process from start to finish. c. Determine the work activity that runs most efficiently. d. Identify the work activity that has the smallest throughput.

Q: Dynamic random-access memory (DRAM) memory chips are made from silicon wafers in manufacturing facilities through a very complex process called wafer fabs. The wafers are routed through the fab machines in an order that is referred to as a recipe. The wafers may go through the same machine several times as the chip is created. The data file DRAM Chips contains a sample of processing times, measured in fractions of hours, at a particular machine center for one chip recipe. Calculate the 80th percentile for processing time. A) 0.40 minutes B) 0.35 minutes C) 0.45 minutes D) 0.20 minutes

Q: In one method of calculating utilization, _____ divided by Resources Available. a. Resources Used b. Service Rate c. Number of Servers d. Resource Capacity

Q: What is the average time a bouquet stays in a florist shop if they sell 100 bouquets per day and they maintain an average inventory of 200 bouquets? a. 1 day b. 2 days c. 5 days d. 10 days

Q: Each year, Business Week publishes information and rankings of master of business administration (MBA) programs. The data file MBA Analysis contains data on several variables for eight reputable MBA programs as presented in the October 2, 2000, issue of Business Week. The variables include pre- and post-MBA salary, percentage salary increase, undergraduate GPA, average Graduate Management Admission Test (GMAT) score, annual tuition, and expected annual student cost. Compute the mean and median for each of the variables in the database. A) Mean Median Pre-MBA Salary 39077 43337.63 Post-MBA Salary 82203 98902 Percentage Increase in Salary 116 123 Undergraduate GPA 3.46 3.40 GMAT Score 635.00 631.13 Annual Tuition 13163.50 15967.50 Expected Annual Student Cost 23169.5 27980.75 B) Mean Median Pre-MBA Salary 46667.63 39077 Post-MBA Salary 98902 84403 Percentage Increase in Salary 113 116 Undergraduate GPA 3.40 3.56 GMAT Score 661.16 635.00 Annual Tuition 15967.50 19163.70 Expected Annual Student Cost 28980.75 23179.5 C) Mean Median Pre-MBA Salary 43337.63 39077 Post-MBA Salary 98902 82203 Percentage Increase in Salary 123 116 Undergraduate GPA 3.40 3.46 GMAT Score 631.13 635.00 Annual Tuition 15967.50 13163.50 Expected Annual Student Cost 27980.75 23169.5 D) Mean Median Pre-MBA Salary 39077 46667.63 Post-MBA Salary 84403 98902 Percentage Increase in Salary 116 113 Undergraduate GPA 3.56 3.40 GMAT Score 635.00 661.16 Annual Tuition 19163.70 15967.50 Expected Annual Student Cost 23179.5 28980.75

Q: _____ is the typical queueing system used by supermarkets. a. Several parallel servers fed by their own queues b. One or more parallel servers fed by a single queue c. A combination of several queues in a series d. One server, one queue

Q: Which of the following is an example of a bottleneck management principle? a. Work-in-process buffer inventory should be place behind bottlenecks to maximize resource utilization. b. At bottleneck workstations, idle time is acceptable if there is no work to do. c. Use large order sizes at bottleneck workstations. d. An hour lost at a bottleneck resource has no effect on total process or factory output.

Q: Todd Lindsey & Associates, a commercial real estate company located in Boston, owns six office buildings in the Boston area that it leases to businesses. The lease price per square foot differs by building due to location and building amenities. Currently, all six buildings are fully leased at the prices shown here. Price per Square Foot Number of Square Feet Building 1 $ 75 125,000 Building 2 $ 85 37,500 Building 3 $ 90 77,500 Building 4 $ 45 35,000 Building 5 $ 55 60,000 Building 6 $110 130,000 Compute the weighted average (mean) price per square foot for these buildings. A) 86.25 B) 83.25 C) 80.15 D) 86.15

Q: _____ time is the average time it takes to complete one cycle of a process. a. Flow b. Mean c. Standard d. Elemental

Q: A professor wishes to develop a numerical method for giving grades. He intends to base the grade on homework, two midterms, a project, and a final examination. He wishes the final exam to have the largest influence on the grade. He wants the project to have 10%, each midterm to have 20%, and the homework to have 10% of the influence of the semester grade. For a student with the following grades during the quarter, calculate a weighted average for the course: Instrument Final Project Midterm 1 Modterm 2 Homework Percentage Grade 64 98 67 63 89 A) 68.50 B) 73.30 C) 68.30 D) 70.30

Q: Which of the following best defines the Theory of Constraints? a. The concept of purposely creating barriers in a process in order to evaluate the impact on the workflow b. Maximizing cash flow by minimizing throughput c. A set of principles that focuses on increasing total process throughput by maximizing the utilization of all bottleneck work activities d. Limiting demand in order to better service remaining customers

Q: A(n) _____ is a waiting line. a. queue b. process system c. field d. plot point

Q: The Empirical Rule states that for a bell-shaped distribution, approximately 95 percent of data should lie within: A) one standard deviation from either side of the mean. B) two standard deviations from either side of the mean. C) three standard deviations from either side of the mean. D) four standard deviations from either side of the mean.

Q: In an analytical queueing model, service times measure _____. a. demand b. process components c. completion percentage d. rates

Q: When comparing data measured by substantially different scales, we must use: A) standardized data values. B) standardized data scales. C) standardized data variations. D) standardized data scores.

Q: Portfolio A of a collection of stocks is considered more risky than portfolio B if: A) portfolio A has a higher mean than portfolio B. B) portfolio A has a higher variance than portfolio B. C) portfolio A has a higher standard deviation. D) portfolio A has a higher coefficient of variation than portfolio B.

Q: When calculating utilization, the dimensions of the denominator must be greater than those of the numerator.a. Trueb. False

Q: Data was collected on the number of television sets in a household, and it was found that the mean was 3.5 and the standard deviation was 0.75. Based on these sample data, what is the standardized value corresponding to 5 televisions? A) -2.00 B) 1.5 C) 2.00 D) 1.125

Q: Flow time depends not only on the actual time to perform the tasks required, but also on how many other entities are in the work-in-process stage. a. True b. False

Q: Littles Law uses short-term averages to explain relationships. a. True b. False

Q: A recent study in the restaurant business determined that the mean tips for male waiters per hour of work are $6.78 with a standard deviation of $2.11. The mean tips per hour for female waiters are $7.86 with a standard deviation of $2.20. Based on this information, which of the following statements do we know to be true? A) The distribution of tips for both males and females is right-skewed. B) The variation in tips received by females is more variable than males. C) The median tips for females exceeds that of males. D) On a relative basis, males have more variation in tips per hour than do females.

Q: The distribution of the actual weight of potato chips in a 16 ounce sack is thought to be bell-shaped with a mean equal to 16 ounces and a standard deviation equal to 0.45 ounces. Based on this, between what two limits could we expect 95 percent of all sacks to weigh? A) 14 to 18 ounces B) 15.10 to 16.90 ounces C) 15.55 to 16.45 ounces D) 14.65 to 17.35 ounces

Q: Total process output is at the throughput rate of the bottleneck. a. True b. False

Q: A report on spending by adults on recreation stated the following: At least 75 percent of the people in the survey spend between $750 and $1,250 per year. The report also said that at least 88 percent spend between $625 and $1,375 per year. Given this information, which of the following is most apt to be true? A) The standard deviation is approximately $125. B) The distribution of spending on recreation can be assumed to be bell-shaped. C) The standard deviation is approximately $187.5. D) The standard deviation is approximately $250.

Q: Simulation models are not well equipped to capture the dynamic behavior of queues over time. a. True b. False

Q: The asking price for homes on the real estate market in Baltimore has a mean value of $286,455 and a standard deviation of $11,200. The mean and standard deviation in asking price for homes in Denver are $188,468 and $8,230, respectively. Recently, one home sold in each city where the asking price for each home was $193,000. Assuming that both distributions are bell-shaped, which of the following statements is true? A) The Baltimore home has the higher standard z-value. B) The coefficient of variation for Denver is less than for Baltimore. C) The Denver home has a higher standard z-value. D) Both cities have the same coefficient of variation.

Q: The imputed cost of waiting is the reasonable value that might reflect the potential loss of future revenue or customer dissatisfaction. a. True b. False

Q: Indicate whether the statement is true or false.The philosophy and principles of the TOC are valuable in understanding demand and capacity management.a. Trueb. False

Q: Average safety capacity (%) is computed using the formula: a. Average resource utilization (%) − 100%. b. 100% − Average resource utilization (%). c. [Maximum safety capacity (%) + Minimum safety capacity (%)]/2. d. 100% − Maximum resource utilization (%).

Q: A distribution has a coefficient of variation of 65 percent and mean of 74. What is the value of the standard deviation? A) 0.65 B) 4810 C) 113.8 D) 48.1

Q: A doctor's office charges no-show patients $30 if they do not cancel their appointment 24 hours prior to the appointment. In this scenario, which of the following can be used by the doctor's office to handle the risk of idle service capacity? a. A capacity straddle strategy b. A capacity lag strategy c. A revenue management system d. A pull system

Q: In service industries, capacity is often viewed as the _____. a. minimum rate of output per unit time b. units of resource availability c. amount of setup time d. amount of overtime scheduled

Q: Incomes in a particular market area are known to be right-skewed with a mean equal to $33,100. In a report issued recently, a manager stated that at least 89 percent of all incomes are in the range of $26,700 to $39,500, and this was based on Tchebysheff's theorem. Given these facts, what is the standard deviation for the incomes in this market area? A) Approximately $6,400 B) Approximately $3,200 C) Approximately $2,133 D) Approximately $4266

Q: The number of days that homes stay on the market before they sell in Houston is bell-shaped with a mean equal to 56 days. Further, 95 percent of all homes are on the market between 40 and 72 days. Based on this information, what is the standard deviation for the number of days that houses stay on the market in Houston?A) 8C) 16D) 4

Q: Unlike a focused factory, an unfocused factory is characterized by: a. a few key products. b. particular market segments. c. identical people skills. d. dissimilar product lines.

Q: In the context of strategies for expanding capacity, which of the following statements is true of one large capacity increase? a. This strategy aims to match capacity additions with demand as closely as possible. b. An advantage of using this strategy is that the fixed costs of construction and operating system setup need to be incurred only once. c. This strategy waits until demand has increased to a point where additional capacity is necessary. d. When this strategy is used, there is always excess capacity and safety capacity to meet unexpected demand from large orders is provided.

Q: In the annual report, a major food chain stated that the distribution of daily sales at its Detroit stores is known to be bell-shaped, and that 95 percent of all daily sales fell between $19,200 and $36,400. Based on this information, what were the mean sales? A) Around $20,000 B) Close to $30,000 C) Approximately $27,800 D) Can't be determined without more information.

Q: Avexim Pharmaceutical Laboratories is an international group of companies that manufactures an antiepileptic prescription drug in huge volumes. The setup time for manufacturing the drug is 75 minutes, the processing time is 8 minutes, and the order size is 700 units. In this case, which of the following is the total time required to meet the given production volume? a. 968 minutes b. 1300 minutes c. 4275 minutes d. 5675 minutes

Q: Under what circumstances is it necessary to use the coefficient of variation to compare relative variability between two or more distributions? A) When the means of the distributions are equal B) When the means of the distributions are not equal C) When the standard deviations of the distributions are not equal D) When the standard deviations of the distributions are equal

Q: _____ are achieved when the average unit cost of a good or service decreases as the capacity and/or volume of throughput increases. a. Unfocused factories b. Safety capacities c. Diseconomies of scale d. Economies of scale

Q: If the age distribution of customers at a major retail chain is thought to be bell-shaped with a mean equal to 43 years and a standard deviation equal to 7 years, the percentage of customers between the ages of 29 and 57 years is: A) approximately 81.5. B) approximately 68. C) at least 75. D) approximately 95.