1. Assume that two different processes have the same flow rate, which of the following is right?
a. These two processes must have the same capacity.
b. Demand rates for both processes must be equal.
c. WIP inventory carried by both processes must be the same.
d. None of the above.
2. Which of the following term is not related to operations management function?
a. Balanced scorecard method
b. Theory of Constraints
c. Supply chain management
d. All of the above are OM related
3. If a process has an average flow time of 20 minutes, including 10 minutes of total activity time. Which of the following is appropriate?
a. The process utilization is 50%.
b. The process flow time efficiency is 50%.
c. The process has 5 minutes of value adding activities.
d. The process capacity is 3 units per hour.
4. Which of the following is an internal operational perspective measure when using the balanced scorecard (BSC) method?
a. customer satisfaction rates
b. Manufacturing yield
c. Quarterly sales growth
d. All of the above
5. A manager is interested in deciding production quantities for products A, B, and C. He has an inventory of 20 tons each of raw materials 1, 2, 3, and 4 that are used in the production of products A, B, and C. He can further assume that he can sell all of what he makes. Which of the following statements is correct?
a. The manager has four decision variables.
b. The manager has three constraints.
c. The manager has three decision variables.
d. The manager can solve this problem graphically.
6. Which one of the following statements is best?
a. A P system requires more administrative control and individualized order schedules than does a Q system.
b. In a periodic review system, the order size is kept the same from one cycle to another.
c. A P system can be used to combine orders.
d. None of the above.
7. The Lemma Company manufactures and sells 10 products. Ways have been found to cut both the inventory ordering/setup and inventory holding costs in half. What effect will this have on the economic order quantities of the 10 products?
a. They will be reduced by a factor of 1.41.
b. They will not change.
c. They will be reduced by a factor of 2.00.
d. They will be increased by a factor of 1.41.
8. Which one of the following descriptions best defines the cycle-service level as a measure of customer service?
a. The preferred proportion of annual demand instantaneously filled from stock.
b. The number of stockouts tolerated per year.
c. The preferred proportion of days in the year when an item is in stock.
d. The desired probability of not running out of stock in any one inventory cycle.
9. Which of the following is not related to quality management?
a. DMAIC.
b. EOQ.
c. DPMO.
d. ISO 9000.
10. Which of the following statements is most appropriate?
a. When we monitor a process which has already attained six-sigma quality, we must use z=6 for constructing all statistical process (SPC) charts such as p-charts.
b. When using SPC charts, type I error refers to the chance that our out-of-control conclusion is actually wrong.
c. We always need to minimize type I error such that it equals zero.
d. None of the above.