BUSI 411 Exam 3 Liberty University complete answers

BUSI 411 Exam 3 Liberty University complete answers

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Question 1 The quality control improvement tool that resembles a "fishbone" is:

Question 2 ISO certification is similar to the Baldrige Award in its emphasis on:

Question 3 A tool that depicts process variation graphically is a(n):

Question 4 Managers have obligations to a wide variety of stakeholders such as shareholders, employees, and customers. When considering outsourcing production to offshore suppliers, managers have to weigh: (I) cost benefits that might make shareholders wealthier. (II) quality issues that might make firms less productive and/or products riskier. (III) the investments already tied up in relationships with existing suppliers.

Question 5 Giving workers responsibility for quality improvements and authority to make changes is known as:

Question 6 Consider the following information: The number of runs up and down for the preceding data is:

Question 7 The chair of the operations management department at Quality University wants to construct a p­chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results: What are the .95 (5 percent risk of Type I error) upper and lower control limits for the pchart?

Question 8 Which of the following is associated with consumer's risk?

Question 9 A control chart used to monitor the fraction of defectives generated by a process is the:

Question 10 Which of the following is not a step in the quality control process?

Question 11 Inventory information for firm ABC: What is the expected inventory at the end of April 2008?

Question 12 Essentially, the output of aggregate planning is the:

Question 13 Which of the following is an input to aggregate planning?

Question 14 Moving from the aggregate plan to a master production schedule requires:

Question 15 Aggregate planning in the case of a high­volume product output business such as a restaurant is directed toward:

Question 16 The MRP input stating which end items are to be produced, when they are needed, and what quantities are needed, is the:

Question 17 Refer to this product tree: If 17 Ps are needed, and no on­hand inventory exists for any items, how many Cs will be needed?

Question 18 Which one of the following most closely describes net material requirements?

Question 19 The MRP input storing information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size) is the:

Question 20 Under lot­for­lot, order sizes for component parts are essentially determined directly from which one of the following?

Question 21 Because courtesy is subjective, it cannot be considered a factor in service quality.

Question 22 Flexible acceptance sampling revises the sampling plan in response to actual results.

Question 23 In the master production schedule, production is planned for the next period whenever the available­to­promise quantity becomes negative.

Question 24 A bill of materials contains a listing of all the assemblies, parts, and materials needed to produce one unit of an end item.

Question 25 MRP, considering inventory position, bills of material, open purchase orders, and lead times guarantees a feasible production plan if the inputs to MRP are accurate.

 

Question 1 Lost production time, scrap, and rework are examples of:

Question 2 A chart showing the number of occurrences by category would be used in:

Question 3 Cause-and-effect diagrams are sometimes called:

Question 4 Among the guiding principles of six sigma are: (I) Reduction of variation is an important goal. (II) Valid measurement is critical. (III) Outputs determine inputs. (IV) We should focus on those critical few influences on our quality.

Question 5 In addition to correcting substandard work, employees have an ethical obligation to __________ whatever led to the quality problem as well.

Question 6 A c-chart is used for:

Question 7 Studies on a bottle-filling machine indicate that it fills bottles to a mean of 16 ounces with a standard deviation of 0.10 ounces. What is the process specification, assuming the Cpk index of 1?

Question 8 The probability of concluding that assignable variation exists when only random variation is present is: (I) the probability of a Type I error. (II) known as the alpha risk. (III) highly unlikely. (IV) the sum of probabilities in the two tails of the normal distribution.

Question 9 A plot below the lower control limit on the range chart: (I) should be ignored since lower variation is desirable. (II) may be an indication that process variation has decreased. (III) should be investigated for assignable cause.

Question 10 A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results: If he uses upper and lower control limits of 520 and 480 hours, on what sample(s) (if any) does service life appear to be out of control?

Question 11 In practice, the more commonly used techniques for aggregate planning are:

Question 12 When the opportunity cost of lost revenue is relatively high, _________ become(s) relatively more attractive.

Question 13 Simulation to produce an aggregate plan:

Question 14 Aggregate planning is capacity planning for:

Question 15 Using dynamic pricing in response to capacity variability to ensure that perishable inventory is not wasted is known as:

Question 16 Which of the following is a direct input into capacity requirements planning? (I) the master production schedule (II) routing information (III) current shop loads (IV) planned-order releases

Question 17 The _________ of ERP makes it valuable as a strategic planning tool.

Question 18 An MRP system that is updated periodically to account for all changes which have occurred within a given time interval is called a(n) ________ system.

Question 19 The multiplication process used by MRP to determine lower-level requirements is called:

Question 20 An effort to expand the scope of production resource planning by involving other functional areas in the planning process has been:

Question 21 Continuous improvement attempts to achieve major breakthroughs in product or service quality.

Question 22 Patterns of data on a control chart suggest that the process may have nonrandom variation.

Question 23 A time fence in the master schedule is used to prevent unauthorized people from making changes to the schedule.

Question 24 The bill of materials contains information on lead times and current inventory position on every component required to produce the end item.

Question 25 Net requirements equal gross requirements minus safety stock.

 

· Question 1

3 out of 3 points

 
 
 
 
Cause-and-effect diagrams are sometimes called:
 
 
 
 
 
 
·         Question 2

3 out of 3 points

 
 
 
 
Deciding how much to invest in the prevention of defects can be analyzed using:
 
 
 
 
 
 
·         Question 3

3 out of 3 points

 
 
 
 
The tool that is useful in the collection and organization of data is a:
 
 
 
 
 
 
·         Question 4

3 out of 3 points

 
 
 
 
Giving workers responsibility for quality improvements and authority to make changes is known as:
 
 
 
 
 
 
·         Question 5

3 out of 3 points

 
 
 
 
When an organization comes to the realization that there are quality problems in products that are already in service, ethical approaches include:
 

1.  (I) divulging the information to the public at large.

2.    (II) recalling, if possible, affected products.

3.     (III) handling complaints on an individual rather than a systemic basis.
 
 
 
 
 
 
·         Question 6

3 out of 3 points

 
 
 
 
A quality analyst wants to construct a control chart for determining whether four machines, all producing the same product, are in control with regard to a particular quality attribute. Accordingly, she inspected 1,000 units of output from each machine in random samples, with the following results:
 

Machine
Total Defectives
#1
23
 
#2
15
 
#3
29
 
#4
13
 

 
For upper and lower control limits of .026 and .014, which machine(s), if any, appear(s) to be out-of-control for process proportion of defectives?
 
 
 
 
 
 
·         Question 7

3 out of 3 points

 
 
 
 
A quality analyst wants to construct a sample mean chart for controlling a packaging process. He knows from past experience that whenever this process is in control, package weight is normally distributed with a mean of 20 ounces and a standard deviation of two ounces. Each day last week, he randomly selected four packages and weighed each:
 

Day
Weight (ounces)
Monday
23
22
23
24
Tuesday
23
21
19
21
Wednesday
20
19
20
21
Thursday
18
19
20
19
Friday
18
20
22
20


What is the standard deviation of the sampling distribution of sample means for whenever this process is in control?
 
 
 
 
 
 
·         Question 8

 

 
 
 
 
The following data occurs chronologically from left to right:

 

15.2
19.7
16.0
11.1
14.8
14.5

The number of runs above and below the sample median is:
 
 
 
 
 
 
·         Question 9

3 out of 3 points

 
 
 
 
The greater the volume of the process being targeted for inspection, the more attractive __________ inspection is.
 
 
 
 
 
 
·         Question 10

3 out of 3 points

 
 
 
 
A quality analyst wants to construct a control chart for determining whether four machines, all producing the same product, are in control with regard to a particular quality attribute. Accordingly, she inspected 1,000 units of output from each machine in random samples, with the following results:
 

Machine
Total Defectives
#1
23
 
#2
15
 
#3
29
 
#4
13
 

  
What is the sample proportion of defectives for machine #1?
 
 
 
 
 
 
·         Question 11

3 out of 3 points

 
 
 
 
Information for firm ABC:
 

 
 
 
Inventory at the end of April, 2008:
200
units
Expected demand during April, 2008:
50
units
Production expected during April, 2008:
100
units

 
What was the inventory at the end of March 2008?
 
 
 
 
 
 
·         Question 12

3 out of 3 points

 
 
 
 
One option for altering the availability of manufacturing capacity is:
 
 
 
 
 
 
·         Question 13

3 out of 3 points

 
 
 
 
Which of the following are typically in play in a circumstance in which yield management is worthwhile?
 

1.  (I) Perishable capacity

2.    (II) Ample finished goods storage

3.     (III) Demand variability

4.       (IV) Low holding costs
 
 
 
 
 
 
·         Question 14

3 out of 3 points

 
 
 
 
Aggregate planners seek to match supply and demand:
 
 
 
 
 
 
·         Question 15

3 out of 3 points

 
 
 
 
A firm has 43 units of a certain product on hand. Forecasts for the first two planning periods are 20 units each. A production quantity of 80 units is planned to be available in period 3. Customer orders are 22 for period 1 and 17 for period 2. What is the projected on-hand inventory at the end of period 2?
 
 
 
 
 
 
·         Question 16

3 out of 3 points

 
 
 
 
The _________ of ERP makes it valuable as a strategic planning tool.
 
 
 
 
 
 
·         Question 17

3 out of 3 points

 
 
 
 
ERP implementation probably will not require:
 
 
 
 
 
 
·         Question 18

3 out of 3 points

 
 
 
 
_______ is choosing how many to order or make each time an order is planned.
 
 
 
 
 
 
·         Question 19

3 out of 3 points

 
 
 
 
In MRP, the gross requirements of a given component part are calculated directly from:
 
 
 
 
 
 
·         Question 20

3 out of 3 points

 
 
 
 
An MRP system that is updated periodically to account for all changes which have occurred within a given time interval is called a(n) ________ system.
 
 
 
 
 
 
·         Question 21

3 out of 3 points

 
 
 
 
ISO standards aid in transferring technology to developing countries.
 
 
 
 
 
 
·         Question 22

3 out of 3 points

 
 
 
 
Range charts and p-charts are both used for variable data.
 
 
 
 
 
 
·         Question 23

3 out of 3 points

 
 
 
 
Ultimately the overriding factor in choosing a strategy in aggregate planning is overall cost.
 
 
 
 
 
 
·         Question 24

3 out of 3 points

 
 
 
 
MRP, considering inventory position, bills of material, open purchase orders, and lead times guarantees a feasible production plan if the inputs to MRP are accurate.
 
 
 
 
 
 
·         Question 25

3 out of 3 points

 
 
 
Load reports show capacity requirements for departments or work centers which may be more or less than the capacity available in that work center.
 
 
 
 

·         Question 1

3 out of 3 points

 
 
 
The Baldrige Award is based on seven categories. Which is not one of those?
 
 
 
 
 
 
 
·         Question 2

3 out of 3 points

 
 
 
TQM stands for:
 
 
 
 
 
 
 
·         Question 3

3 out of 3 points

 
 
 
A quality circle is:
 
 
 
 
 
 
 
·         Question 4

3 out of 3 points

 
 
 
Which is not a cost of quality?
 
 
 
 
 
 
 
·         Question 5

3 out of 3 points

 
 
 
The four dimensions of quality that are sometimes used to determine fitness for use of a product are:
 
 
 
 
 
 
 
·         Question 6

3 out of 3 points

 
 
 
The chair of the operations management department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results:

   

What is the estimate of the standard deviation of the sampling distribution for an instructor's sample proportion of failures?
 
 
 
 
 
 
 
 
 
 
 
·         Question 7

3 out of 3 points

 
 
 
The assurance that processes are performing in an acceptable manner is the focus of:
 
 
 
 
 
 
 
·         Question 8

3 out of 3 points

 
 
 
A quality analyst wants to construct a sample mean chart for controlling a packaging process. He knows from past experience that whenever this process is under control, package weight is normally distributed with a mean of 20 ounces and a standard deviation of two ounces. Each day last week, he randomly selected four packages and weighed each:
If he uses upper and lower control limits of 22 and 18 ounces, what is his risk (alpha) of concluding this process is out of control when it is actually in control (Type I error)?
 
 
 
 
 
 
 
·         Question 9

3 out of 3 points

 
 
 
A quality analyst wants to construct a control chart for determining whether three machines, all producing the same product, are under control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results 
What is the sample mean for machine #1?
 
 
 
 
 
 
 
·         Question 10

3 out of 3 points

 
 
 
A company's product line consists of 40 percent Product A, 40 percent Product B, and 20 percent Product C. The aggregate plan calls for total production that averages 1,100 units per quarter. Quarter 1 production will be 800 units, quarter 2 production will be 1,400 units, and quarter 3 production will be 1,200 units. How many units of Product A will be produced in quarter 4?
 
 
 
 
 
 
 
·         Question 11

3 out of 3 points

 
 
 
Which of the following differs between aggregate planning in services and aggregate planning in manufacturing?
 
 
 
 
 
 
 
·         Question 12

3 out of 3 points

 
 
 
 
The direct result of disaggregating the aggregate plan is the:
 
 
 
 
 
 
·         Question 13

3 out of 3 points

 
 
 
What quantity is available for commitment to new customers in either of the first two periods?
 
 
 
 
 
 
 
·         Question 14

3 out of 3 points

 
 
 
 
An MRP system whose records are updated continuously is referred to as a(n):
 
 
 
 
 
 
·         Question 15

3 out of 3 points

 
 
 
Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week 6. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot), and quantities on hand:
Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs; additionally one bottle of Alka-Seltzer is included for those who overindulge.

If the firm is using a fixed-period lot size of two periods, what is the order size for the first order?
 
 
 
 
 
 
 
·         Question 16

3 out of 3 points

 
 
 
Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week 6. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot), and quantities on hand:
Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs; additionally one bottle of Alka-Seltzer is included for those who overindulge.

How many dark chocolate eggs should be ordered?
 
 
 
 
 
 
 
·         Question 17

3 out of 3 points

 
 
 
Continuous improvement attempts to achieve major breakthroughs in product or service quality.
 
 
 
 
 
 
 
·         Question 18

3 out of 3 points

 
 
 
A time fence in the master schedule is used to prevent unauthorized people from making changes to the schedule.
 
 
 
 
 
 
 
·         Question 19

3 out of 3 points

 
 
 
MRP is used within most MRP II and ERP systems.
 
 
 
 
 
 
 
·         Question 20

3 out of 3 points

 
 
 
The term pegging refers to identifying the parent items that have generated a given set of material requirements for a part or subassembly.
 
 
 
 
 
 
 
 

 

64. A tool that is not used for quality management is ________. 
65. The four dimensions of quality that are sometimes used to determine fitness for use of a product are ______. 
66. A tool that depicts process variation graphically is a(n) _________. 
67. Which isn't a cost of quality? 
68. The Deming Prize was established by the _________. 
69. Lost production time, scrap, and rework are examples of ________. 
70. Warranty service, processing of complaints, and costs of litigation are examples of ________. 
71. Costs of inspectors, testing, test equipment, and labs are examples of ________. 
72. Loss of business, liability, productivity and costs are consequences of _______. 
73. Quality planning and administration, quality training, and quality control procedures are examples of _______. 
74. The purpose of the Malcolm Baldrige National Quality Award is to _______. 
75. Fixing a problem will often cost money; to minimize these costs it is best to find and fix the problem _______. 
76. Deciding how much to invest in the prevention of defects can be analyzed using ________. 
77. The Baldrige award is based on seven categories. Which is not one of those? 
78. ISO 9000 standards do not have a requirement for ________. 
79. A quality circle is ________. 
80. ISO 9000 currently requires _____ of a certified organization. 
81. The quality control improvement tool which distinguishes between the "important few" and the "trivial many" is __________. 
82. The quality control improvement tool that resembles a "fishbone" is ________. 
83. TQM stands for: 
84. Which of the following is an element of TQM? 
85. Management behaviors supporting an organizational culture that encourages continuous improvement include which of the following?
(I) develop a vision statement for the organization
(II) develop a reward system that promotes the philosophy
(III) institute continuous training programs
(IV) make decisions that adhere to the philosophy 
86. The tool that is useful in documenting the current process is: 
87. The tool that is useful in the collection and organization of data is: 
88. A quality improvement technique that involves the sharing of thoughts and ideas in a way that encourages unrestrained collective thinking is: 
89. In order for TQM to be successful, it is essential that most of the organization be _________. 
90. Which of the following raises quality risks? 
91. Focusing attention on the most important problem areas is referred to as: 
92. A chart showing the number of occurrences by category would be used in: 
A. Pareto analysis
93. Cause-and-effect diagrams are sometimes called: 
94. The process of identifying other organizations that are best at some facet of your operations, and then modeling your organization after them is known as: 
95. Giving workers responsibility for quality improvements and authority to make changes is known as: 
96. The typical difference between "quality circles" and "continuous improvement teams" is ________. 
97. Which of the following is not a goal of process improvement? 
98. Managers have obligations to a wide variety of stakeholders such as shareholders, employees and customers. When considering outsourcing production to offshore suppliers, managers have to weigh __.
I) Cost benefits that might make shareholders wealthier
II) Quality issues that might make firms less productive and/or products riskier
III) The investments already tied up in relationships with existing suppliers 
99. Focusing a supply chain on ________________ is a modern way of ensuring high quality inputs and a ready supply of process-improvement ideas. 
100. As regards quality risks, which of the following would be least likely to involve outsourcing to less-developed countries? 
101. If customer satisfaction doesn't always lead to customer loyalty, firms may need to focus additional effort on __________ strategies. 
102. Before a dimension of quality can be made operationally useful, it must be restated in some ___________ form. 



 

1. MRP works best if the inventory items have dependent demand. 
2. Low level coding represents items less than $18 per unit. 
3. Independent demand tends to be more 'lumpy' than dependent demand meaning that we need large quantities followed by periods of no demand. 
4. Lumpy demand for components results primarily from the periodic scheduling of batch production. 
5. MRP is used within most MRP II and ERP systems. 
6. The master production schedule states which end items are to be produced, in addition to when and how many. 
7. Net requirements equal gross requirements minus safety stock. 
8. The master schedule needs to be for a period long enough to cover the stacked or cumulative lead time necessary to produce the end items. 
9. Initially, a master production schedule - the output from MRP - may not represent a feasible schedule. 
10. MRP, considering inventory position, bills of material, open purchase orders and lead times guarantees a feasible production plan if the inputs to MRP are accurate. 
11. The bill of materials indicates how much material will be needed to produce the quantities on a given master production schedule. 
12. A bill of materials contains a listing of all the assemblies, parts, and materials needed to produce one unit of an end item. 
13. The bill of materials contains information on lead times and current inventory position on every component required to produce the end item. 
14. The inventory records contain information on the status of each item by time period. 
15. An assembly-time chart indicates gross and net requirements taking into account the current available inventory. 
16. MRP II did not replace or improve the basic MRP. 
17. The gross requirements at one level of an MRP plan determine the gross requirements at the next lower level continuing on down to the lowest levels shown on the bill of material. 
18. The gross requirements value for any given component is equal to the net requirements of that component's immediate parent multiplied by the quantity per parent. 
19. The term pegging refers to identifying the parent items that have generated a given set of material requirements for a part or subassembly. 
20. A net-change MRP system is one that is updated periodically but not less frequently than once a week. 
21. One reason that accurate bills of material are important is that errors at one level become magnified at lower levels because of the multiplication process used by MRP. 
22. A regenerative MRP system is one that is updated continuously - every time there is a schedule change. 
23. One of the primary output reports of MRP concerns changes to planned orders. 
24. Safety time is sometimes used in MRP rather than safety stock quantities. 
25. Lot-for-lot ordering in MRP provides coverage for some predetermined number of periods using forecasted demand to extend beyond the orders already received for those periods. 
26. MRP output reports are divided into two main groups - daily and weekly. 
27. In MRP, EOQ models tend to be less useful for materials at the lowest levels than for upper level assemblies of the bill of materials since higher-level assemblies have larger dollar investments. 
28. Load reports show capacity requirements for departments or work centers which may be more or less than the capacity available in that work center. 
29. ERP began in manufacturing organizations but has spread into service organizations. 
30. MRP II is simply an improved version of MRP that processes faster and can plan for a larger number of end items. 
31. Lot-for-lot ordering in MRP eliminates the holding costs for parts that are carried over to other periods. 
32. Capacity requirements planning (CRP) is an important feature in MRP+. 
33. Project Management approaches can help in a conversion to an ERP system. 
34. As long as a forecast is plus or minus 10%, MRP works well. 
35. ERP represents an expanded effort to integrate standardized record-keeping that shares information among different areas of an organization. 
36. Back flushing takes place after the production has been completed. 
37. Before a schedule receipt can take place, and order must be placed with a vendor. 
38. MRP really doesn't apply to services since raw material isn't required. 
39. ERP implementation requires support and a direct mandate from the CEO because it impacts so many different functional areas. 
40. ERP automates the tasks involved in performing a business process, such as order fulfillment and financial reporting. 
41. Which of the following most closely describes dependent demand? 
A. demand generated by suppliers
B. estimates of demand using regression analysis of independent variables
C. derived demand
D. demands placed on suppliers by their customers
E. net material requirements

42. ERP implementation probably won't require: 
A. cross functional teams
B. just a few weeks to install
C. intensive training
D. high funding for both initial cost and maintenance
E. frequent upgrades after installation

43. A computer-based information system designed to handle ordering and scheduling of dependent-demand inventories is: 
A. computer aided manufacturing (CAM)
B. computer integrated manufacturing (CIM)
C. economic order quantity (EOQ)
D. material requirements planning (MRP)
E. economic run size (ERS)

44. The development and application of MRP depended upon two developments: (1) the recognition of the difference between independent and dependent demand, and (2): 
A. computers
B. development of the EOQ model
C. inventory control systems
D. blanket purchase orders
E. the internet

45. The output of MRP is: 
A. gross requirements
B. net requirements
C. a schedule of requirements for all parts and end items
D. inventory reorder points
E. economic order quantities and reorder points

46. Which one of the following is not an input in an MRP system? 
A. planned-order schedules
B. bill of materials
C. master production schedule
D. inventory records
E. All are inputs.

47. The MRP input stating which end items are to be produced, when they are needed, and what quantities are needed, is the: 
A. master schedule
B. bill-of-materials
C. inventory-records
D. assembly-time chart
E. net-requirements chart

48. In an MRP master schedule, the planning horizon is often separated into a series of times periods called: 
A. pegging
B. lead times
C. stacked lead times
D. time buckets
E. firm, fixed and frozen

49. The MRP input listing the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product is the: 
A. master production schedule
B. bill-of-materials
C. inventory-records
D. assembly-time chart
E. net-requirements chart

50. A visual depiction of the subassemblies and components that are needed to produce and/or assemble a product is called a(n): 
A. assembly time chart
B. product structure tree
C. MRP II
D. pegging
E. Gantt chart

51. The MRP input storing information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size) is the: 
A. master production schedule
B. bill-of-materials
C. inventory-records
D. assembly-time chart
E. net-requirements chart

52. Which one of the following most closely describes net material requirements? 
A. gross requirements - amount on-hand - scheduled receipts
B. gross requirements - planned receipts
C. gross requirements - order releases + amount on-hand
D. gross requirements - planned order releases
E. gross requirements - amount on-hand + planned order releases

53. In MRP, "scheduled receipts" are: 
A. identical to "planned-order receipts"
B. identical to "planned-order releases"
C. open orders (that is, ordered before the first time bucket, but not delivered yet)
D. "net requirements"
E. available to promise inventory

54. In MRP, under lot-for-lot ordering, "planned-order receipts" are: 
A. identical to "scheduled receipts"
B. identical to "planned-order releases"
C. open orders (that is, ordered before the first time bucket, but not delivered yet)
D. "gross requirements"
E. available to promise inventory

55. Under lot-for-lot, order sizes for component parts are essentially determined directly from which one of the following? 
A. gross requirements
B. net requirements
C. economic order quantity
D. gross requirements - net requirements
E. net requirements - amount on-hand

56. In MRP, the gross requirements of a given component part are calculated from: 
A. net requirements + amount on-hand.
B. gross requirements of the immediate parent.
C. planned orders of the end item.
D. net requirements of end item.
E. planned orders of the immediate parent.

57. The identification of parent items is called: 
A. Paternity
B. Pegging
C. Requirement I.D.
D. Relationship tracking
E. Master Scheduling

58. Periodic updating of an MRP system to account for all changes which have occurred within a given time interval is called: 
A. pegging
B. planned order release
C. net change
D. regenerative
E. exception report

59. An MRP system whose records are updated continuously is referred to as a(n): 
A. regenerative system
B. batch-type system
C. Plossl-Wright system
D. net-change system
E. gross-change system

60. Which is true of a net-change system? 
A. It is a batch-type system which is updated periodically.
B. It is usually run at the beginning of each month.
C. The basic production plan is modified to reflect changes as they occur.
D. It is used to authorize the execution of planned orders.
E. It indicates the amount and timing of future changes.

61. Which one of the following most closely describes the MRP approach that is used for components or subassemblies to compensate for variations in lead time? 
A. pegging
B. safety stock
C. increased order sizes
D. safety time
E. low-level coding

62. Which of the following lot sizing methods does not attempt to balance ordering (or setup) and holding costs? 
A. economic order quantity
B. economic run size
C. lot-for-lot
D. part-period
E. all of the above

63. When MRP II systems include feedback, they are known as: 
A. MRPIII
B. Enterprise resource planning
C. Circular MRP
D. Feasible MRP
E. Closed Loop MRP

64. The multiplication process used by MRP to determine lower level requirements is called: 
A. time-phasing
B. pegging
C. netting
D. projecting
E. exploding

65. _______ is choosing how many to order or make. 
A. Quantity determination
B. Package sizing
C. Lot sizing
D. Grouping
E. Aggregation

66. Which of the following is not usually necessary in order to have an effective MRP system? 
A. a computer and software
B. an accurate bill of materials
C. lot-for-lot ordering
D. an up-to-date master schedule
E. integrity of file data

67. The _________ of ERP makes it valuable as a strategic planning tool. 
A. Internet base
B. Rapid Batch capability
C. Employee focus
D. Real-time aspect
E. Database structure

68. A recent effort to expand the scope of production resource planning by involving other functional areas in the planning process has been: 
A. material requirements planning
B. capacity requirements planning
C. manufacturing resources planning
D. Just-In-Time planning
E. multifunctional relationships planning

69. Which statement concerning MRP II is false? 
A. It is basically a computerized system.
B. It can handle complex planning and scheduling quickly.
C. It involves other functional areas in the production planning process.
D. It involves capacity planning.
E. It produces a production plan which includes all resources required.

70. Which of these items would be most likely to have dependent demand? 
A. Xbox batteries
B. toy trains
C. flowers
D. chocolate chip cookies
E. wrist watches

71. Which of these products would be most likely to have dependent demand? 
A. refrigerators
B. automobile engines
C. televisions
D. brownies
E. automobiles

 

Refer to this product-tree:
   

 78. If 17 Ps are needed, and no on-hand inventory exists for any items, how many Cs will be needed? 
A. 8
B. 16
C. 136
D. 204
E. 272

79. If 17 Ps are needed, and on-hand inventory consists of 10 As, 15 Bs, 20 Cs, 12 Ms, and 5 Ns, how many Cs are needed? 
A. 48
B. 144
C. 192
D. 212
E. 272

80. If 40 Ps are needed, and on-hand inventory consists of 15 Ps and 10 each of all other components and subassemblies, how many Cs are needed? 
A. 340
B. 350
C. 380
D. 400
E. 590

 81. What is the net requirement for Dark Chocolate Truffles to fill this order? 
A. 100
B. 140
C. 150
D. 180
E. 200

82. When should an order for Carved Chocolate Eggs be released? 
A. at the start of week 2
B. at the start of week 3
C. at the start of week 4
D. at the start of week 5
E. at the start of week 6

83. How many Dark Chocolate Eggs should be ordered? 
A. 310
B. 450
C. 500
D. 550
E. 600

84. If the firm is using a fixed period lot size of two periods, what is the order size for the first order? 
A. 120
B. 200
C. 280
D. 160
E. 150

85. Which of the following represents an attempt to balance the benefits of stability against the benefits of responding to new information? 
A. safety stock
B. safety time
C. bills of material
D. time fences
E. fixed-period lot sizing

86. Comparing known and expected capacity requirements with projected capacity availability is the job of _______. 
A. planned releases
B. load reports
C. lot sizing
D. work loading
E. time fencing

87. ERP's primary value comes from applications ________. 
A. deployment
B. development
C. interfaces
D. integration
E. networking

88. Net requirements for component J are as follows: 60 units in week 2, 40 units in week 3, and 60 units in week 5. If a fixed-period, two-period lot-sizing method is used, what will be the quantity of the first planned receipt? 
A. 60 units
B. 120 units
C. 180 units
D. Cannot be determined
E. None of the above

89. Net requirements for component J are as follows: 60 units in week 2, 40 units in week 3, and 60 units in week 5. If a fixed-period, three-period lot-sizing method is used, what will be the quantity of the first planned receipt? 
A. 60
B. 100
C. 160
D. Cannot be determined
E. None of the above

 

 

1.
Acceptance sampling is applied to batches of items during the production process. 
 
 2.
Acceptance sampling procedures are applicable for inspection both before and after production. 
 
 3.
Flexible acceptance sampling revises the sampling plan in response to actual results. 
 
 4.
The purpose of acceptance sampling is to decide whether a batch of items satisfies pre-determined standards. 
 
 5.
A good sampling plan will occasionally reject a lot with very good quality. 
 
 6.
Acceptance sampling is most useful when the cost consequences of passing defectives are low. 
 
 7.
Acceptance sampling procedures can be applied to both attribute and variables inspection. 
 
 8.
Acceptance sampling plans must specify the lot size, the sample size, and the acceptance/rejection criteria. 
 
 9.
In a single-sampling plan, the entire lot, or batch of items, is accepted or rejected based upon only one specified sized sample. 
 
 10.
A double-sampling plan requires a second sample of exactly twice the size of the first sample. 
 
 11.
Sampling plans are designed considering both the cost and time required for the inspection.  
 
 12.
In a double-sampling plan, a second sample may not be taken if the results of the first sample are conclusive. 
 
 13.
Acceptance sampling is a form of inspection applied to items during an ongoing process. 
 
14.
In a double-sampling plan, a second sample is taken if the results of the first sample are inconclusive. 
 
 15.
The ability of an acceptance sampling plan to discriminate between good and bad lots is described by its operating characteristic curve.  
 
16.
A graphical representation that shows the risk of: (1) accepting bad lots and (2) rejecting good lots is called the: 

A. 
indifference curve.
 

B. 
operating characteristic curve.
 

C. 
sampling plan.
 

D. 
inspection curve.
 

E. 
operating inspection plan.
 
 
 17.
Which of the following is associated with consumer's risk? 
A. LTPD
 
 

B. 
AQL
 

C. 
AOQL
 

D. 
SPC
 

E. 
Cpk
 
 
 18.
Which of the following is associated with producer's risk? 

A. 
LTPD
 

B. 
AQL
 

C. 
AOQL
 

D. 
SPC
 

E. 
Cpk
 
 
 19.
When is the average outgoing quality level (AOQL) at its peak? 

A. 
when the incoming fraction defective is at a minimum
 

B. 
when the incoming fraction defective is at a maximum
 

C. 
when the outgoing fraction defective is at a minimum
 

D. 
when the outgoing fraction defective is constant
 

E. 
when the outgoing fraction defective begins to increase
 
 
 20.
Suppose that only two incoming fraction defective levels, 4 percent and 8 percent, are possible. These incoming fraction defective levels are equally likely. At a 4 percent incoming fraction defective, there's a 60 percent chance that a lot will be accepted. At 8 percent incoming fraction defective, there's a 20 percent chance that a lot will be accepted. Lots that are not accepted are subject to 100 percent sorting. What is average outgoing quality? 

A. 
40 percent
 

B. 
20 percent
 

C. 
10 percent
 

D. 
4 percent
 

E. 
2 percent
 
 
 21.
Suppose that only two incoming fraction defective levels, 2 percent and 6 percent, are possible. The 2 percent incoming fraction defective level is twice as likely as the 6 percent. At a 2 percent incoming fraction defective, there's an 80 percent chance that a lot will be accepted. At 6 percent incoming fraction defective, there's a 20 percent chance that a lot will be accepted. Lots that are not accepted are subject to 100 percent sorting. What is average outgoing quality (approximately)? 

A. 
1.60 percent
 

B. 
1.47 percent
 

C. 
1.20 percent
 

D. 
.73 percent
 

E. 
.80 percent
 
 
 22.
The purpose of acceptance sampling is to: 

A. 
estimate process quality.
 

B. 
estimate lot quality.
 

C. 
detect and eliminate defectives.
 

D. 
decide if a lot meets predetermined standards.
 

E. 
accept samples of products.
 
 
 23.
Acceptance sampling plans might call for the selection of: 

A. 
one or more samples.
 

B. 
a variable number of samples based on actual results.
 

C. 
random inspections.
 

D. 
outside audits by testing agencies.
 

E. 
100 percent inspection.
 
 
 24.
Which one of the following would not be a reason for using acceptance sampling? 

A. 
high cost of passing defectives
 

B. 
large number of items
 

C. 
destructive testing
 

D. 
boredom and fatigue that would accompany complete inspection
 

E. 
low cost of passing defectives
 
 
 25.
Sampling plans typically specify: 

A. 
lot size.
 

B. 
sample size.
 

C. 
number of samples to be taken.
 

D. 
acceptance/rejection criteria.
 

E. 
all choices are correct.
 
 
 26.
A lot can be "accepted" or "rejected" in a double-sampling plan: 

A. 
after one sample is taken.
 

B. 
after two samples are taken.
 

C. 
only after two samples are taken.
 

D. 
All choices are correct.
 

E. 
Only after one and after two samples are taken is correct.
 
 
 27.
A lot can be "accepted" or "rejected" in a multiple-sampling plan: 

A. 
after one sample is taken.
 

B. 
after two samples are taken.
 

C. 
after three or more samples are taken.
 

D. 
all of the choices.
 

E. 
none of the choices.
 
 
 28.
An OC curve shows: 

A. 
average outgoing quality.
 

B. 
the average outgoing quality limit.
 

C. 
out-of-control criteria.
 

D. 
operating control.
 

E. 
probability of acceptance versus lot quality.
 
 
 29.
The ability of a sampling plan to discriminate between lots of high quality and lots of low quality is described by: 

A. 
a Gantt chart.
 

B. 
an operating characteristic curve.
 

C. 
an average outgoing quality curve.
 

D. 
a process control chart.
 

E. 
a range chart.
 
 
 30.
The AQL indicates: 

A. 
acceptable quality level.
 

B. 
average quality level.
 

C. 
actual quality level.
 

D. 
aggregate quality level.
 

E. 
approximate quality level.
 
 
 31.
A Type II (beta) error occurs when: 

A. 
a bad lot is accepted.
 

B. 
a good lot is rejected.
 

C. 
a bad lot is rejected.
 

D. 
a good lot is accepted.
 

E. 
a rejected lot is reinspected.
 
 
 32.
A Type I (alpha) error occurs when: 

A. 
a bad lot is accepted.
 

B. 
a good lot is rejected.
 

C. 
a bad lot is rejected.
 

D. 
a good lot is accepted.
 

E. 
an accepted lot is reinspected.
 
 
 33.
An AOQ curve shows: 

A. 
the maximum quality.
 

B. 
average outgoing quality relative to incoming quality.
 

C. 
how well a sampling plan can discriminate between good and bad lots.
 

D. 
the actual quality level.
 

E. 
"good" quality.
 
 
 34.
In acceptance sampling, the level of inspection automatically adjusts to the quality of lots being inspected, assuming that: 

A. 
a single-sampling plan is used.
 

B. 
double-sampling plans are used.
 

C. 
multiple-sampling plans are used.
 

D. 
"rejected" lots are subjected to 100 percent inspection.
 

E. 
the incoming fraction defective remains constant.
 
 
 35.
A quality inspector for Alpha-Beta Co. is concerned about the quality of the batch of several thousand blank DVD disks which his company produced this week and is preparing to ship. If the cost of replacing a defective DVD disk once it has been shipped is $2.00, while the cost of 100 percent inspection prior to shipment is $.40 each, at what point is he indifferent between 100 percent inspection and shipment without inspection? 

A. 
0 percent defectives
 

B. 
2 percent defectives
 

C. 
5 percent defectives
 

D. 
20 percent defectives
 

E. 
30 percent defectives
 
 
 36.
A quality inspector for Alpha-Beta Co. is concerned about the quality of the batch of several thousand blank DVD disks which his company produced this week and is preparing to ship. If he uses an acceptance sampling plan of n = 5 and c = 2, what is the probability that, if this batch is 40 percent defective, it will be rejected and receive 100 percent inspection prior to shipment? 

A. 
.1270
 

B. 
.2730
 

C. 
.3174
 

D. 
.6826
 

E. 
.7270
 
 
 
 37.
A quality inspector for Alpha-Beta Co. is concerned about the quality of the batch of several thousand blank DVD disks which his company produced this week and is preparing to ship. If he uses an acceptance sampling plan of n = 5 and c = 2, what will be the average outgoing quality for batches with 40 percent defectives? 

A. 
.1270
 

B. 
.2730
 

C. 
.3174
 

D. 
.6826
 

E. 
.7270
 
 
38.
A quality inspector for Alpha-Beta Co. is concerned about the quality of the batch of several thousand blank DVD disks which his company produced this week and is preparing to ship. If, based on his acceptance sample, he decides to ship this batch without inspection, which type error would be possible? 

A. 
inspector's error
 

B. 
producer's error
 

C. 
Type I error
 

D. 
Type II error
 

E. 
both Type I and Type II errors
 
 
 39.
The quality manager for Graphics, Inc., is concerned about the quality of the lot of several thousand posters which her company printed this week and is now preparing to ship. If the cost of replacing a defective poster once it has been shipped is $10.00, while the cost of complete 100 percent inspection prior to shipment is $.50 per poster, at what point is she indifferent between complete inspection and shipment without inspection? 

A. 
5 percent
 

B. 
10 percent
 

C. 
 
12 percent
 

D. 
20 percent
 

E. 
25 percent
 
 
 40.
The quality manager for Graphics, Inc., is concerned about the quality of the lot of several thousand posters which her company printed this week and is now preparing to ship. If she uses an acceptance sampling plan of n = 10 and c = 2, what is the probability that, if this lot is 10 percent defective, it will be accepted for shipment without inspection? 

A. 
.9298
 

B. 
.0702
 

C. 
.8189
 

D. 
.2198
 

E. 
.5995
 
 
41.
The quality manager for Graphics, Inc., is concerned about the quality of the lot of several thousand posters which her company printed this week and is now preparing to ship. If she uses an acceptance sampling plan of n = 10 and c = 2, what will be the average outgoing quality for lots with 20 percent defectives? 

A. 
.13556
 

B. 
.20000
 

C. 
.23630
 

D. 
.58434
 

E. 
.32484
 
 
42.
The quality manager for Graphics, Inc., is concerned about the quality of the lot of several thousand posters which her company printed this week and is now preparing to ship. If, based on her acceptance sample, she decides to ship this lot without inspection, which type error would be possible? 

A. 
Type I
 

B. 
Type II
 

C. 
both Type I and Type II errors
 

D. 
neither Type I nor Type II error
 

E. 
cannot be determined without further data
 
 
 43.
The quality manager for Graphics, Inc., is concerned about the quality of the lot of several thousand posters which her company printed this week and is now preparing to ship. If the indifference point between complete inspection and shipment without inspection is 12 percent defectives, and she decides to sample 15 posters (n = 15), what is the maximum number of sample defectives (c) for which this lot would be accepted for shipment without further inspection? 

A. 
0 defectives
 

B. 
1 defective
 

C. 
2 defectives
 

D. 
3 defectives
 

E. 
4 defectives
 
44.
The quality manager for Frozen Pizzas, Inc., is concerned about the quality of the lot of several thousand pizzas which his company produced this week, and is now ready to ship. If the cost of replacing a defective pizza once it has been shipped is $5.00, while the cost of complete (100 percent) inspection prior to shipment is $.30 per pizza, what is the point of indifference between complete inspection and shipment without inspection? 

A. 
1.67 percent defectives
 

B. 
3 percent defectives
 

C. 
5 percent defectives
 

D. 
6 percent defectives
 

E. 
16.7 percent defectives
 
 
 45.
The quality manager for Frozen Pizzas, Inc., is concerned about the quality of the lot of several thousand pizzas which his company produced this week, and is now ready to ship. If he uses an acceptance sampling plan of n = 8 and c = 1, what is the probability that, if this lot is 10 percent defective, it will be accepted for shipment without inspection? 

A. 
.9619
 

B. 
.9428
 

C. 
.8131
 

D. 
.4305
 

E. 
.1869
 
 
 
 
 
 
 

46.
The quality manager for Frozen Pizzas, Inc., is concerned about the quality of the lot of several thousand pizzas which his company produced this week, and is now ready to ship. If he uses an acceptance sampling plan of n = 8 and c = 1, what is the probability that, if this lot is 15 percent defective, it will be rejected and completely inspected prior to shipment? 

A. 
.8948
 

B. 
.8131
 

C. 
.6572
 

D. 
.5033
 

E. 
.3428
 
 47.
The quality manager for Frozen Pizzas, Inc., is concerned about the quality of the lot of several thousand pizzas which his company produced this week, and is now ready to ship. If he uses an acceptance sampling plan of n = 8 and c = 1, what will be the average outgoing quality for lots with 10 percent defectives? 

A. 
.0813
 

B. 
.0962
 

C. 
.1869
 

D. 
.7318
 

E. 
.8131
 
 48.
The quality manager for Microelectronics, Inc., is concerned about the quality of the batch of several thousand Z-box games which his company is about to ship. If the cost of replacing a defective Z-box game once it has been shipped is $5.00, while the cost of complete (100 percent) inspection prior to shipment is $.20 each, at what point is he indifferent between complete inspection and shipment without inspection?  

A. 
0 percent defectives
 

B. 
4 percent defectives
 

C. 
5 percent defectives
 

D. 
9 percent defectives
 

E. 
22 percent defectives
 
 49.
The quality manager for Microelectronics, Inc., is concerned about the quality of the batch of several thousand Z-box games which his company is about to ship. If he uses an acceptance sampling plan of n = 20 and c = 1, what is the probability that, if this batch is 15 percent defectives, it will be rejected and completely inspected prior to shipment?  

A. 
.0263
 

B. 
.1237
 

C. 
.1756
 

D. 
.8244
 

E. 
.9737
 
 50.
The quality manager for Microelectronics, Inc., is concerned about the quality of the batch of several thousand Z-box games which his company is about to ship. If he uses an acceptance sampling plan of n = 20 and c = 1, what will be the average outgoing quality for batches with 15 percent defectives?  

A. 
.0263
 

B. 
.1237
 

C. 
.1756
 

D. 
.8244
 

E. 
.9737
 
 

1. Approving the effort that occurs during the production process is known as acceptance sampling. 
True    False

 2. Statistical Process Control is the measurement of rejects in the final product. 
True    False

 3. The optimum level of inspection occurs when we catch at least 98.6 percent of the defects. 
True    False

 4. The optimum level of inspection minimizes the sum of inspection costs and the cost of passing defectives. 
True    False

 5. Processes that are in control eliminate variations. 
True    False

 6. High-cost, low-volume items often require careful inspection since we make them so infrequently. 
True    False

 7. Low-cost, high-volume items often require more intensive inspection. 
True    False

8. A lower control limit must by definition be a value less than an upper control limit. 
True    False

 9. Attributes need to be measured, variable data can be counted. 
True    False

 10. The amount of inspection we choose can range from no inspection at all to inspecting each item numerous times. 
True    False

 11. The amount of inspection needed is governed by the costs of inspection and the expected costs of passing defective items. 
True    False

 12. The purpose of statistical process control is to ensure that historical output is random. 
True    False

 13. A process that exhibits random variability would be judged to be out of control. 
True    False

 14. If a point on a control chart falls outside one of the control limits, this suggests that the process output is non-random and should be investigated. 
True    False

 15. An x-bar control chart can only be valid if the underlying population it measures is a normal distribution. 
True    False

 16. Concluding a process is out of control when it is not is known as a Type I error. 
True    False

 17. An R value of zero (on a range chart) means that the process must be in control since all sample values are equal. 
True    False

 18. Range charts are used mainly with attribute data. 
True    False

 19. Range charts and p-charts are both used for variable data. 
True    False

 20. A p-chart is used to monitor the fraction of defectives in the output of a process. 
True    False

 21. A c-chart is used to monitor the total number of defectives in the output of a process. 
True    False

 22. A c-chart is used to monitor the number of defects per unit for process output. 
True    False

 23. Tolerances represent the control limits we use on the charts. 
True    False

 24. "Process capability" compares "process variability" to the "tolerances." 
True    False

 25. Control limits used on process control charts are specifications established by design or customers. 
True    False

 26. Control limits tend to be wider for more variable processes. 
True    False

 27. Patterns of data on a control chart suggest that the process may have non-random variation. 
True    False

 28. The output of a process may not conform to specifications even though the process may be statistically "in control." 
True    False

 29. Run tests are useful in helping to identify nonrandom variations in a process. 
True    False

 30. Run tests give managers an alternative to control charts; they are quicker and cost less. 
True    False

 31. Statistical process control focuses on the acceptability of process output. 
True    False

 32. A run test checks a sequence of observations for randomness. 
True    False

 33. Even if the process is not centered, the process capability index (indicated by Cpk) is very useful. 
True    False

 34. The process capability index (indicated by Cpk) can be used only when the process is centered. 
True    False

 35. Quality control is assuring that processes are performing in an acceptable manner. 
True    False

 36. The primary purpose of statistical process control is to detect a defective product before it is shipped to a customer. 
True    False

 37. The Taguchi Cost Function suggests that the capability ratio can be improved by extending the spread between LCL and UCL. 
True    False

 38. The variation of a sampling distribution is tighter than the variation of the underlying process distribution. 
True    False

 39. The sampling distribution can be assumed to be approximately normal even when the underlying process distribution is not normally distributed. 
True    False

 40. Approximately 99.7% of sample means will fall within ± two standard deviations of the process mean if the process is under control. 
True    False

 41. The best way to assure quality is to use extensive inspection and control charts. 
True    False

 42. Control limits are based on multiples of the process standard deviation. 
True    False

 43. Attribute data are counted, variable data are measured. 
True    False

 44. The number of defective parts in a sample is an example of variable data because it will "vary" from one sample to another. 
True    False

 45. Larger samples will require wider x-bar control limits because there is more data. 
True    False

 46. When a process is not centered, its capability is measured in a slightly different way. The symbol for this case is Cpk. 
True    False

 47. Range control charts are used to monitor process central tendency. 
True    False

 48. An "up and down" run test uses the median as a reference point and measures the percentage above and below the median. 
True    False

 49. "Assignable variation" is variation due to a specific cause, such as tool wear. 
True    False

 50. Variation in a sample statistic collected from a process may be either random variation or assignable variation - or both. 
True    False

 51. "Quality of conformance" is concerned with whether a product or service conforms to its specifications. 
True    False

 52. The larger the process variation, the tighter the specifications should be. 
True    False

 53. Type I and Type II errors refer to the magnitude of variation from the standard. 
True    False

 54. The greater the capability ratio, the higher the rejects. 
True    False

 55. Non-random variation is likely whenever all observations are between the LCL and UCL. 
True    False

 56. Which of the following quality control sample statistics indicates a quality characteristic that is an attribute? 
A. mean
B. variance
C. standard deviation
D. range
E. proportion

 57. A time-ordered plot of representative sample statistics is called a: 
A. Gantt chart
B. SIMO-chart
C. Control Chart
D. Up-Down Matrix
E. Standard deviation table

 58. A control chart used to monitor the process mean is the: 
A. p-chart
B. R-chart
C. x-bar chart
D. c-chart
E. Gantt chart

 59. A control chart used to monitor the fraction of defectives generated by a process is the: 
A. p-chart
B. R-chart
C. x-bar chart
D. c-chart
E. Gantt chart

 60. A p-chart would be used to monitor _______. 
A. average shrinkage
B. dispersion in sample data
C. the fraction defective
D. the number of defects per unit
E. the range of values

 61. A c-chart is used for: 
A. means
B. ranges
C. percent defective
D. fraction defective per unit
E. number of defects per unit

 62. A control chart used to monitor the number of defects per unit is the: 
A. p-chart
B. R-chart
C. x-bar chart
D. c-chart
E. Gantt chart

 63. A point which is outside of the lower control limit on an R-chart: 
A. is an indication that no cause of variation is present
B. should be ignored because it signifies better than average quality
C. should be investigated because an assignable cause of variation might be present
D. should be ignored unless another point is outside that limit
E. is impossible since the lower limit is always zero

 64. If a process is performing as it should, it is still possible to obtain observations which are outside of which limits?
(I) tolerances
(II) control limits
(III) process variability 
A. I
B. II
C. I and II
D. II and III
E. I, II, and III

 65. Which of the following relationships must always be incorrect? 
A. Tolerances process variability control limits
B. Process variability tolerances control limits
C. Tolerances control limits process variability
D. Process variability control limits tolerances
E. Process variability <Tolerances<control limits

 66. Which of the following is not a step in the quality control process? 
A. define what is to be controlled
B. compare measurements to a standard
C. eliminate each of the defects as they are identified
D. take corrective action if necessary
E. evaluate corrective action

 67. The probability of concluding that assignable variation exists when only random variation is present is:
(I) the probability of a Type I error
(II) known as the alpha risk
(III) highly unlikely
(IV) the sum of probabilities in the two tails of the normal distribution 
A. I and II
B. I and IV
C. II and III
D. I, II, and IV
E. I, III, and IV

 68. _______ variation is a variation whose cause can be identified. 
A. Assignable
B. Controllable
C. Random
D. Statistical
E. Theoretical

 69. A plot below the lower control limit on the range chart:
(I) should be ignored since lower variation is desirable
(II) may be an indication that process variation has decreased
(III) should be investigated for assignable cause 
A. I and II
B. I and III
C. II and III
D. II only
E. I, II, and III

 70. A shift in the process mean for a measured characteristic would most likely be detected by a: 
A. p-chart
B. x-bar chart
C. c-chart
D. R-chart
E. s-chart

 71. The range chart (R-chart) is most likely to detect a change in: 
A. proportion
B. mean
C. number defective
D. variability
E. sample size

 72. The optimum level of inspection is where the: 
A. cost of inspection is minimum
B. cost of passing defectives is minimum
C. total cost of inspection and defectives is maximum
D. total cost of inspection and defectives is minimum
E. difference between inspection and defectives costs is minimum

 73. The purpose of control charts is to: 
A. estimate the proportion of output that is acceptable
B. weed out defective items
C. determine if the output is within tolerances/specifications
D. distinguish between random variation and assignable variation in the process
E. provide meaningful work for quality inspectors

 74. The process capability index (Cpk) may mislead if:
(I) the process is not stable.
(II) the process output is not normally distributed.
(III) the process is not centered. 
A. I and II
B. I and III
C. II and III
D. II only
E. I, II and III

 75. A time-ordered plot of sample statistics is called a(n) ______ chart. 
A. Statistical
B. Inspection
C. Control
D. SIMO
E. Limit

  86. The number of runs up and down for the data above is: 
A. 3
B. 4
C. 5
D. 6
E. none of these

 87. The number of runs with respect to the sample median is: 
A. 3
B. 4
C. 5
D. 6
E. none of these

  The following data occurs chronologically from left to right:
   

 88. The number of runs with respect to the sample median is: 
A. 2
B. 3
C. 4
D. 5
E. none of these

 89. The number of runs up and down is: 
A. 2
B. 3
C. 4
D. 5
E. none of these

  A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results:
   

 90. What is the sample mean service life for sample 2? 
A. 460 hours
B. 495 hours
C. 500 hours
D. 515 hours
E. 525 hours

 91. What is the mean of the sampling distribution of sample means when service life is in control? 
A. 250 hours
B. 470 hours
C. 495 hours
D. 500 hours
E. 515 hours

 92. What is the standard deviation of the sampling distribution of sample means for whenever service life is in control? 
A. 5 hours
B. 6.67 hours
C. 10 hours
D. 11.55 hours
E. 20 hours

 93. If he uses upper and lower control limits of 520 and 480 hours, what is his risk (alpha) of concluding service life is out of control when it is actually under control (Type I error)? 
A. 0.0026
B. 0.0456
C. 0.3174
D. 0.6826
E. 0.9544

 94. If he uses upper and lower control limits of 520 and 480 hours, on what sample(s) (if any) does service life appear to be out of control? 
A. sample 1
B. sample 2
C. sample 3
D. both samples 2 and 3
E. all samples are in control

  A Quality Analyst wants to construct a sample mean chart for controlling a packaging process. He knows from past experience that whenever this process is under control, package weight is normally distributed with a mean of twenty ounces and a standard deviation of two ounces. Each day last week, he randomly selected four packages and weighed each:
   

 95. What is the sample mean package weight for Thursday? 
A. 19 ounces
B. 20 ounces
C. 20.6 ounces
D. 21 ounces
E. 23 ounces

 96. What is the mean of the sampling distribution of sample means when this process is under control? 
A. 18 ounces
B. 19 ounces
C. 20 ounces
D. 21 ounces
E. 22 ounces

 97. What is the standard deviation of the sampling distribution of sample means for whenever this process is under control? 
A. 0.1 ounces
B. 0.4 ounces
C. 0.5 ounces
D. 1 ounce
E. 2 ounces

 98. If he uses upper and lower control limits of 22 and 18 ounces, what is his risk (alpha) of concluding this process is out of control when it is actually in control (Type I error)? 
A. 0.0026
B. 0.0456
C. 0.3174
D. 0.6826
E. 0.9544

 99. If he uses upper and lower control limits of 22 and 18 ounces, on what day(s), if any, does this process appear to be out of control? 
A. Monday
B. Tuesday
C. Monday and Tuesday
D. Monday, Tuesday, and Thursday
E. none

  A Quality Analyst wants to construct a control chart for determining whether three machines, all producing the same product, are under control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results:
   

 100. What is the sample mean for machine #1? 
A. 15
B. 16
C. 17
D. 21
E. 23

 101. What is the estimate of the process mean for whenever it is under control? 
A. 16
B. 19
C. 20
D. 21
E. 23

 102. What is the estimate of the sample average range based upon this limited sample? 
A. 13.0
B. 4.33
C. 5.4
D. 4.2
E. 2.0

 103. What are the x-bar chart three sigma upper and lower control limits? 
A. 22 and 18
B. 23.29 and 16.71
C. 23.5 and 16.5
D. 23.16 and 16.84
E. 24 and 16

 104. For upper and lower control limits of 23.29 and 16.71, which machine(s), if any, appear(s) to have an out-of-control process mean? 
A. machine #1
B. machine #2
C. machine #3
D. all of the machines
E. none of the machines

  The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results:
   

 105. What is the sample proportion of failures (p) for Prof. D? 
A. 0
B. .04
C. .11
D. .13
E. .16

 106. What is the estimate of the mean proportion of failures for these instructors? 
A. .10
B. .11
C. .13
D. .16
E. .40

 107. What is the estimate of the standard deviation of the sampling distribution for an instructor's sample proportion of failures? 
A. .0075
B. .03
C. .075
D. .3
E. .75

 108. What are the .95 (5% risk of Type I error) upper and lower control limits for the p-chart? 
A. .95 and .05
B. .13 and .07
C. .1588 and .0412
D. .16 and .04
E. .1774 and .0226

 109. Using .95 control limits, (5% risk of Type I error), which instructor(s), if any, should he conclude is (are) out of control? 
A. none
B. Prof. B
C. Prof. D
D. both Prof. B and Prof. D
E. all

  A Quality Analyst wants to construct a control chart for determining whether four machines, all producing the same product, are under control with regard to a particular quality attribute. Accordingly, she inspected 1,000 units of output from each machine in random samples, with the following results:
   

 110. What is the sample proportion of defectives for machine #1? 
A. .023
B. .02
C. .0115
D. .0058
E. .005

 111. What is the estimate of the process proportion of defectives for whenever it is under control? 
A. .08
B. .06
C. .04
D. .02
E. .01

 112. What is the estimate of the standard deviation of the sampling distribution of sample proportions for whenever this process is under control? 
A. .016
B. .00016
C. .04
D. .0044
E. .00002

 113. What are the control chart upper and lower control limits for an alpha risk of .05? 
A. .0272 and .0128
B. .0287 and .0113
C. .029 and .013
D. .0303 and .0097
E. .0332 and .0068

 114. For upper and lower control limits of .026 and .014, which machine(s), if any, appear(s) to be out-of-control for process proportion of defectives? 
A. machine #3
B. machine #4
C. machines #3 and #4
D. machines #2 and #3
E. none of the machines

 133. Studies on a bottle-filling machine indicates it fills bottles to a mean of 16 ounces with a standard deviation of 0.10 ounces. What is the process specification, assuming the Cpk index of 1? 
A. 0.10 ounces
B. 0.20 ounces
C. 0.30 ounces
D. 16.0 ounces plus or minus 0.30 ounces
E. none of the above

 134. Studies on a machine that molds plastic water pipe indicate that when it is injecting 1-inch diameter pipe, the process standard deviation is 0.05 inches. The one-inch pipe has a specification of 1-inch plus or minus 0.10 inch. What is the process capability index (Cpk) if the long-run process mean is 1 inch? 
A. 0.50
B. 0.67
C. 1.00
D. 2.00
E. none of the above

 135. The specification limit for a product is 8 cm and 10 cm. A process that produces the product has a mean of 9.5 cm and a standard deviation of 0.2 cm. What is the process capability, Cpk? 
A. 3.33
B. 1.67
C. 0.83
D. 2.50
E. none of the above

 136. The specifications for a product are 6 mm ± 0.1 mm. The process is known to operate at a mean of 6.05 with a standard deviation of 0.01 mm. What is the Cpk for this process? 
A. 3.33
B. 1.67
C. 5.00
D. 2.50
E. none of the above

 137. Organizations should work to improve process capability so that quality control efforts can become more ________. 
A. effective
B. efficient
C. necessary
D. unnecessary
E. widespread

 138. A process results in a few defects occurring in each unit of output. Long-run, these defects should be monitored with ___________. 
A. p-charts
B. c-charts
C. x-bar charts
D. r-charts
E. o-charts

 139. When a process is in control, it results in there being, on average, 16 defects per unit of output. C-chart limits of 8 and 24 would lead to a _______ chance of a Type I error. 
A. 67%
B. 92%
C. 33%
D. .03%
E. 5%

 140. When a process is in control, it results in there being, on average, 16 defects per unit of output. C-chart limits of 4 and 28 would lead to a _______ chance of a Type I error. 
A. 67%
B. 92%
C. 33%
D. 0.3%
E. 5%

 141. The basis for a statistical process control chart is a(the) __________. 
A. process capability
B. sampling distribution
C. control limit
D. sample range
E. sample mean

 

1.
Aggregate planning is capacity planning that typically covers a time horizon of one to three months. 
 
 2.
The goal of aggregate planning is to achieve a production plan that attempts to balance the organization's resources and meet expected demand. 
 
 3.
Aggregate planners are concerned with the quality and quantity of expected demand. 
 
 4.
Aggregate planning is used to establish general levels of employment, output, and inventories over an intermediate range of time. 
 
 5.
The assignment of work to specific machines and people are examples of aggregate planning. 
 
 6.
The output from aggregate planning is a detailed business plan covering the next 2 to 12 months. 
 
 7.
Demand can be altered in aggregate planning by promotion and producing additional product using overtime. 
 
 8.
Capacity can be modified in aggregate planning by promotion and producing additional product using overtime. 
 
 9.
Organizations facing seasonal changes in demand are prevented from using aggregate planning techniques. 
 
 10.
Seasonality in demand has the advantage of leveling out requirements for our product or service. 
 
 11.
A level capacity strategy is also known as a chase demand strategy. 
 
 12.
An advantage of a "chase" strategy for aggregate planning is that inventories can be kept relatively low. 
 
 13.
Linear programming models yield the optimal solution. 
 
 14.
Ultimately the overriding factor in choosing a strategy in aggregate planning is overall cost. 
 
 15.
Aggregate planners commonly use trial-and-error methods in developing aggregate plans.
 
 16.
The use of tables and charts in aggregate planning usually enables planners to arrive at an optimal plan. 
 
 17.
Aggregate planners typically use mathematical techniques such as linear programming and linear decision rules for planning. 
 
 18.
Disaggregating an aggregate plan leads to a master schedule. 
 
 19.
The master schedule indicates the quantity and timing for delivery of a product, but not the dates production will need to start. 
 
 20.
Departmental budgeting is an example of aggregate planning. 
 
 21.
Master schedulers are employed primarily by service organizations. 
 
 22.
Subcontracting "in" would apply to periods in which our organization has excess capacity. 
 
 23.
Available-to-promise in the first week is equal to beginning inventory plus MPS quantity, if any, less committed customer orders before the next MPS quantity. 
 
 24.
A time fence in the master schedule is used to prevent unauthorized people from making changes to the schedule. 
 
 25.
After the first period of the planning horizon, available-to-promise is computed only for those periods in which there is an MPS quantity. 
 
 26.
In the master production schedule, production is planned for the next period whenever the available-to-promise quantity becomes negative. 
 
 27.
Which of the following best describes aggregate planning? 

A. 
the link between intermediate-term planning and short-term operating decisions
 

B. 
a collection of objective planning tools
 

C. 
make-or-buy decisions
 

D. 
an attempt to respond to predicted demand within the constraints set by product, process, and location decisions
 

E. 
manpower planning
 
 28.
Effectively using labor resources during periods of peak demand and low demand would be the goal of aggregate planners in: 

A. 
manufacturing.
 

B. 
military.
 

C. 
archeology.
 

D. 
libraries.
 

E. 
financial services.
 
 
 29.
Aggregate planning is capacity planning for: 

A. 
the long range.
 

B. 
the intermediate range.
 

C. 
the short range.
 

D. 
typically one to three months.
 

E. 
typically one or more years.
 
 
 30.
One area to which aggregate planning decisions relate is: 

A. 
job sequencing
 

B. 
customer order quantities
 

C. 
inventory levels
 

D. 
location
 

E. 
layout
 
 
 31.
Which of the following is an input to aggregate planning? 

A. 
ending inventory
 

B. 
demand forecasts for each period
 

C. 
customer levels
 

D. 
setup costs
 

E. 
quantity discounts
 
 
 32.
Essentially, the output of aggregate planning is the: 

A. 
marketing plan.
 

B. 
production plan.
 

C. 
rough-cut capacity plan.
 

D. 
assignment plan.
 

E. 
material requirements plan.
 
 
 33.
In doing aggregate planning for a firm producing paint, the aggregate planners would most likely deal with: 

A. 
just gallons of paint, without concern for the different colors and sizes.
 

B. 
gallons of paint, but be concerned with the different colors to be produced.
 

C. 
gallons, quarts, pints, and all the different sizes to be produced.
 

D. 
all the different sizes and all the different colors by size.
 

E. 
all of the different colors targeted for different markets.
 
 
 34.
Aggregate planning requires which of the following information?
(I) a forecast of expected demand
(II) current levels of inventory
(III) policies regarding employment levels 

A. 
II only
 

B. 
I and II only
 

C. 
I and III only
 

D. 
I, II, and III
 

E. 
II and III only
 
 
 35.
Aggregate planners attempt to balance: 

A. 
demand and inventories.
 

B. 
demand and costs.
 

C. 
capacity and inventories.
 

D. 
capacity and costs.
 

E. 
capacity and demand.
 
 
 36.
Which of the following is not an input to the aggregate planning process? 

A. 
resources available
 

B. 
demand forecast
 

C. 
policies on workforce changes
 

D. 
master production schedules
 

E. 
cost information
 
 
 37.
Which one of the following would not be considered a decision option for purposes of aggregate planning? 

A. 
inventory levels
 

B. 
manpower levels
 

C. 
pricing
 

D. 
production costs
 

E. 
promotion
 
 
 38.
Which of the following is not a basic option for altering the availability of capacity in a service environment? 

A. 
overtime
 

B. 
hiring/layoff
 

C. 
part time
 

D. 
inventory
 

E. 
All of the choices are options.
 
 
 39.
Which one of the following is not a basic option for altering demand?

A. 
promotion
 

B. 
backordering
 

C. 
pricing
 

D. 
subcontracting
 

E. 
All are demand options.
 
 
 40.
One option for altering the pattern of demand is: 

A. 
back orders.
 

B. 
overtime.
 

C. 
part-time workers.
 

D. 
inventories.
 

E. 
subcontracting.
 
 
 41.
Which of the following would not be a strategy associated with adjusting aggregate capacity to meet expected demand? 

A. 
Subcontract.
 

B. 
Vary the size of the workforce.
 

C. 
Vary the intensity of workforce utilization.
 

D. 
Allow inventory levels to vary.
 

E. 
Use back orders.
 
 
 42.
One option for altering the availability of manufacturing capacity is: 

A. 
pricing.
 

B. 
promotion.
 

C. 
back orders.
 

D. 
inventories.
 

E. 
yield management.
 
 
 43.
One option for altering the availability of capacity is: 

A. 
use of overtime or slack time.
 

B. 
pricing.
 

C. 
promotion.
 

D. 
back orders.
 

E. 
rigidly fixing work schedules.
 
 
 44.
In order to use the level capacity strategy, variations in demand are met by: 

A. 
varying output during regular time without changing employment levels.
 

B. 
varying output during regular time by changing employment levels.
 

C. 
varying output by changing overtime levels.
 

D. 
using combination of inventories, overtime, part time, and back orders.
 

E. 
price adjustments.
 
 
 45.
In using the chase strategy, variations in demand could be met by: 

A. 
varying output during regular time without changing employment levels.
 

B. 
varying output during regular time by changing employment levels.
 

C. 
varying output with and without changing employment levels.
 

D. 
varying inventory levels.
 

E. 
price increases.
 
 
 46.
Uncommitted inventory is called: 

A. 
available-to-promise inventory.
 

B. 
free inventory.
 

C. 
safety stock.
 

D. 
lead time inventory.
 

E. 
obsolete inventory.
 
 
 47.
Aggregate planners seek to match supply and demand: 

A. 
at minimum overall cost.
 

B. 
by changing company policy.
 

C. 
by minimizing layoffs.
 

D. 
keeping inventories at a minimum.
 

E. 
by minimizing hires.
 
 
 48.
In practice, the more commonly used techniques for aggregate planning are: 

A. 
mathematical techniques.
 

B. 
informal trial-and-error techniques.
 

C. 
transportation models.
 

D. 
simulation models.
 

E. 
linear programming optimization.
 
 
 49.
The main disadvantage(s) of informal techniques used for aggregate planning is(are): 

A. 
they are expensive to do.
 

B. 
they may not result in the best plan.
 

C. 
they take a long time to do.
 

D. 
they require the use of a computer.
 

E. 
the lack of formal education of the planners.
 
 
 50.
Inventory information for firm ABC:
   
What is the expected inventory at the end of April 2008? 

A. 
350
 

B. 
250
 

C. 
150
 

D. 
50
 

E. 
80
 
 
 51.
Inventory information for firm ABC:
   
What was the inventory at the end of March 2008? 

A. 
350
 

B. 
250
 

C. 
150
 

D. 
50
 

E. 
400
 
 
 52.
Linear programming to produce an aggregate plan: 

A. 
will produce the best plan if accurate inputs are used.
 

B. 
is the most widely used technique.
 

C. 
is easy to implement.
 

D. 
will produce a plan that may not be the best plan.
 

E. 
requires an Excel spreadsheet.
 
 
 53.
Simulation to produce an aggregate plan: 

A. 
will produce the best plan.
 

B. 
is the most widely used technique.
 

C. 
is easy to implement.
 

D. 
will produce a plan that may not be the best plan.
 

E. 
requires a minimum of four iterations to be accurate.
 
 
 54.
Which of the following is most closely associated with disaggregation? 

A. 
subcontracting
 

B. 
master schedule
 

C. 
diversity
 

D. 
varying inventory levels
 

E. 
firing and laying off
 
 
 55.
The direct result of disaggregating the aggregate plan is the: 

A. 
marketing plan.
 

B. 
production plan.
 

C. 
rough-cut capacity plan.
 

D. 
master schedule.
 

E. 
material requirements plan.
 
 
 56.
Moving from the aggregate plan to a master production schedule requires: 

A. 
rough-cut capacity planning.
 

B. 
disaggregation.
 

C. 
suboptimization.
 

D. 
strategy formulation.
 

E. 
chase strategies.
 
 
 57.
That portion of projected inventory which enables marketing to make realistic commitments about delivery dates for new orders is: 

A. 
beginning inventory.
 

B. 
safety stock inventory.
 

C. 
available-to-promise inventory.
 

D. 
high-margin inventory.
 

E. 
master production schedule arrivals.
 
 
 58.
Proactive and reactive aggregate planning strategies are best associated with: 

A. 
input and output.
 

B. 
make and buy.
 

C. 
quantitative and qualitative.
 

D. 
exact and approximate.
 

E. 
demand and capacity options.
 
 
 59.
Using dynamic pricing in response to capacity variability to ensure that perishable inventory is not wasted is known as: 

A. 
yield management.
 

B. 
profit minimization.
 

C. 
capacity loading.
 

D. 
demand optimization.
 

E. 
perishability avoidance.
 
 
 60.
Which of the following are typically in play in a circumstance in which yield management is worthwhile?
(I) Perishable capacity
(II) Ample finished goods storage
(III) Demand variability
(IV) Low holding costs 

A. 
I, II, and IV only
 

B. 
I and III only
 

C. 
III only
 

D. 
II and III only
 

E. 
II, III, and IV only
 
 
 61.
Aggregate planning for services is more difficult than aggregate planning for manufacturing because __________ and __________ are more difficult to predict. 

A. 
capacity availability; customer tastes
 

B. 
holding costs; overtime costs
 

C. 
demand; capacity availability
 

D. 
capacity change costs; holding costs
 

E. 
hiring costs; holding costs
 
 
 62.
One thing that makes aggregate planning in services easier than aggregate planning in manufacturing is: 

A. 
inventory is cheaper to hold.
 

B. 
labor availability is more predictable.
 

C. 
inventory is less perishable.
 

D. 
labor is more flexible.
 

E. 
demand is less variable.
 
 
 63.
Aggregate planning in the case of a high-volume product output business such as a restaurant is directed toward: 

A. 
smoothing the service rate.
 

B. 
reducing the size of the workforce.
 

C. 
making the kitchen and waitstaff more flexible.
 

D. 
coming up with a fixed staffing level.
 

E. 
making weekly work schedules more stable.
 
 
 64.
A company's product line consists of 40 percent Product A, 40 percent Product B, and 20 percent Product C. The aggregate plan calls for total production that averages 1,100 units per quarter. Quarter 1 production will be 800 units, quarter 2 production will be 1,400 units, and quarter 3 production will be 1,200 units. How many units of Product A will be produced in quarter 4? 

A. 
320 units
 

B. 
400 units
 

C. 
440 units
 

D. 
480 units
 

E. 
560 units
 
 
 65.
A firm has 43 units of a certain product on hand. Forecasts for the first two planning periods are 20 units each. A production quantity of 80 units is planned to be available in period 3. Customer orders are 22 for period 1 and 17 for period 2. What is the projected on-hand inventory at the end of period 2? 

A. 
21
 

B. 
1
 

C. 
12
 

D. 
20
 

E. 
impossible to say without more information
 
 
 66.
What quantity is available for commitment to new customers in either of the first two periods? 
 A. 
21
 

B. 
1
 

C. 
20
 

D. 
4
 

E. 
impossible to say without more information
 
 
 67.
A firm has 56 units of product X on hand. Forecasts of demand are for 20 units per week. An MPS quantity of 100 units is planned to arrive in period 3. Customer orders are 24 for period 1, 18 for period 2, and 15 for period 3.
What is the projected on-hand inventory at the end of period 2? 

A. 
14
 

B. 
32
 

C. 
12
 

D. 
20
 

E. 
impossible to say without more information
 
 
 68.
A firm has 56 units of product X on hand. Forecasts of demand are for 20 units per week. An MPS quantity of 100 units is planned to arrive in period 3. Customer orders are 24 for period 1, 18 for period 2, and 15 for period 3.
What quantity is available for commitment to new customers prior to the receipt of the MPS quantity in week 3? 

A. 
14
 

B. 
32
 

C. 
12
 

D. 
20
 

E. 
impossible to say without more information
 
 
 69.
When the opportunity cost of lost revenue is relatively high, _________ become(s) relatively more attractive. 

A. 
layoffs
 

B. 
back orders
 

C. 
excess capacity
 

D. 
disaggregation
 

E. 
minimal inventory
 
 
 70.
The more __________ demand is, the more the aggregate plan will tend to reflect the ____________ strategy. 

A. 
stable; level
 

B. 
aggregated; outsourcing
 

C. 
variable; level
 

D. 
complex; uncommitted
 

E. 
stable; chase
 
 
 71.
In a service setting, the aggregate plan results in a time-phased projection of __________ requirements. 

A. 
customer
 

B. 
staff
 

C. 
inventory
 

D. 
subcontracting
 

E. 
outsourcing
 
 
 72.
Which of the following differs between aggregate planning in services and aggregate planning in manufacturing? 

A. 
uncertainty in demand
 

B. 
costs of storing inventory
 

C. 
the perishability of capacity
 

D. 
cost of overtime
 

E. 
cost of hiring
 
 
 73.
At XYZ Corp., the aggregate planning unit reflects the fact that 50 percent of its output is product version A, 30 percent is version B, and 20 percent is version C. Suppose that over the coming year forecasted total demand (in planning units) is for 10,400 units. Once the production plan is disaggregated, what will the weekly forecast for version A be (assume 52 weeks per year)? 

A. 
1,000
 

B. 
200
 

C. 
400
 

D. 
100
 

E. 
50
 
 
 74.
A master production schedule quantity of 300 units will arrive in week 6. Weekly demand over weeks 3 through 10 is forecasted at 50 units. At present, orders have been booked in various quantities in weeks 1, 2, 3, and 4. What is available to promise for week 6?  

A. 
50
 

B. 
6
 

C. 
300
 

D. 
100
 

E. 
cannot be determined without projected on-hand information
 
 
 
 
 
 
 
 
 
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