Operations Management Exam 4 MCQs Solution

Question 1

Raw materials have value added by the operations. Mining, growing, refining, cleaning, packing and shipping add value.

True

False

2.5 points

Question 2

Quality standards for components and subassemblies do not have to be clearly set by the materials manager for the producer.

True

False

2.5 points

Question 3

Vertical integration is achieved by buying companies able to provide components that are otherwise purchased from suppliers.

True

False

2.5 points

Question 4

DOI (days of inventory) is a measure that is equivalent to dividing total stock on-hand by the average demand per day.

True

False

2.5 points

Question 5

In the business environment of the United States, personal relationships are not considered to be a reasonable basis for enterprise decisions. They exist nevertheless in less blatant forms than in other cultures.

True

False

2.5 points

Question 6

Wal-Mart uses cross-docking to transfer goods from incoming trucks at the receiving dock to outgoing trucks at the shipping docks.

True

False

2.5 points

Question 7

_____ are needed to evaluate and balance the disadvantages of having large amounts of stock on-hand (SOH) against the benefits of large order quantities placed long in advance of delivery so that substantial quantity discounts can be obtained.

Life-cycle models

Trade-off models

Order size models

all of the above

2.5 points

Question 8

The cost of materials is often less crucial than _____

on-time delivery.

project completion date.

carrying costs.

TQM.

2.5 points

Question 9

Which function is part of the responsibilities of the materials control department?

inspecting incoming materials

expediting flows

arranging for and regulating shipments

international accounts payable department

all of the above

2.5 points

Question 10

_____ has become a global system.

Freshness dating

EDI use

Out-sourcing

Invoicing

2.5 points

Question 11

Failing to achieve high turnover rates can be caused by

carrying excessive inventories.

overestimating demand.

prices being too high for customers.

smart competitive moves.

all of the above

2.5 points

Question 12

It is neither ethical nor legal for vendors to use bribes to influence purchasing decisions in _____

Japan.

Argentina.

the U.S.A.

Egypt.

2.5 points

Question 13

The receiving facility is often called the _____, and another location for shipping is called a _____.

shipping dock; receiving dock

receiving dock; shipping dock

cross-docking block; dock-crossing block

receiving distribution center; shipping floor

2.5 points

Question 14

Cross-docking is the transfer of goods from _____

incoming trucks at receiving docks to outgoing trucks at shipping docks.

incoming trucks at receiving floors to forklift trucks on the shipping floors.

incoming trucks at shipping docks to outgoing trucks at receiving docks.

outgoing trucks at shipping docks to incoming trucks at receiving docks.

2.5 points

Question 15

Bidding models show that as the number of bidders competing _____, the size of the winning bid decreases.

decreases

changes

increases

is unknown

2.5 points

Question 16

_____ occurs when purchased components are further transformed by the company's production process.

Acquisition

Raw Material

Value Adding

Extraction

2.5 points

Question 17

Components (C) and sub-assemblies (SA) are purchased materials that have _____ value added than the raw materials of which they are made.

less

greater

same

none of the above

2.5 points

Question 18

_____ means following up on orders and doing whatever can be done to move materials faster.

Last-in first-out

First-in first-out

Expediting

WIP

2.5 points

Question 19

The importance of the buying function depends upon the extent to which the company requires

suppliers.

outside suppliers.

raw materials suppliers.

all of the above

2.5 points

Question 20

Bullwhip effect refers to

shortages

overstock

both a. and b.

safety stock

2.5 points

Question 21

In a double sampling plan the two acceptance numbers are: c1 = 8 and c2 = 12. The number of defectives found in the first sample is 9. Therefore, a second sample is taken. What is the maximum number of defectives allowed in the second sample for the lot to be accepted?

0

1

2

3

4

5 points

Question 22

Twenty samples of n = 200 were taken by an operator at a workstation in a production process. The number of defective items in each sample was recorded as given in the following table. Management wants to develop a p-chart. The desired confidence level is 80.0 percent. What is the upper control limit?

Sample Number of Defectives Sample Number of Defectives

1 12 11 16

2 18 12 15

3 10 13 13

4 15 14 16

5 16 15 18

6 19 16 17

7 17 17 18

8 12 18 20

9 11 19 21

10 14 20 22

close to 0.08

close to 0.019

close to 1.28

close 0.105

close to 0.8

5 points

Question 23

Cans of soup are supposed to weigh exactly 16 oz. Inspectors want to develop process control charts. They take eight samples of five boxes and weigh them. They obtain the following data. What is the upper control limit for the x-bar chart?

Sample Mean Range

1 15.2 1.8

2 14.6 0.7

3 16.5 0.5

4 18.1 0.4

5 13.2 0.2

6 16.0 0.4

7 15.9 0.5

8 14.8 0.9

close to 15.79

close to 15.93

close to 15.54

close to 15.82

5 points

Question 24

Cans of soup are supposed to weigh exactly 16 oz. Inspectors want to develop process control charts. They take eight samples of five boxes and weigh them. They obtain the following data. What is the upper control limit for the R chart?

Sample Mean Range

1 15.2 1.8

2 14.6 0.7

3 16.5 0.5

4 18.1 0.4

5 13.2 0.2

6 16.0 0.4

7 15.9 0.5

8 14.8 0.9

close to 1.42

close to 0.78

close to 1.12

close to 0.82

5 points

Question 25

Cans of soup are supposed to weigh exactly 16 oz. Inspectors want to develop process control charts. They take eight samples of five boxes and weigh them. They obtain the following data. Is the process in a state of control?

Sample Mean Range

1 15.2 1.8

2 14.6 0.7

3 16.5 0.5

4 18.1 0.4

5 13.2 0.2

6 16.0 0.4

7 15.9 0.5

8 14.8 0.9

yes (in control)

no (not in control)

5 points

Question 26

Eight samples of n = 50 were taken by an operator at a workstation in a production process. The number of defective items in each sample was recorded as follows. Is the process in a state of control? Assume z =3.

Sample Number of Defectives

1 10

2 0

3 12

4 8

5 10

6 16

7 14

8 10

yes (in control)

no (out of control)

5 points

Question 27

Cholesterol Palace is a fast-food restaurant. Management was concerned with errors in filling orders at its drive-up window. It hired several undercover quality inspectors to randomly place 100 orders while the process seemed to be in control. The completed orders were then checked for accuracy. What is the average number of defects per order based on these data?

Defect Frequency

Incomplete, shorter order 12

Unordered items dispensed 2

Wrong product dispensed 14

Wrong toppings 14

Wrong size drink 2

Drink lid not sealed 17

No drinking straw with soft drink order 0

No napkins 18

Far too many condiment packets 65

No salt with sandwich or fries order 10

Wrong change 3

Other 12

close to 1.69

close to 169

close to 0.59

close to 2.00

5 points

Question 28

Cholesterol Palace is a fast-food restaurant. Management was concerned with errors in filling orders at its drive-up window. It hired several undercover quality inspectors to randomly place 100 orders while the process seemed to be in control. The completed orders were then checked for accuracy. What is the lower control limit for a c-chart. Use z =3.

Defect Frequency

Incomplete, shorter order 12

Unordered items dispensed 2

Wrong product dispensed 14

Wrong toppings 14

Wrong size drink 2

Drink lid not sealed 17

No drinking straw with soft drink order 0

No napkins 18

Far too many condiment packets 65

No salt with sandwich or fries order 10

Wrong change 3

Other 12

close to -2.21

close to 1.3

close to 3.0

zero (0)

close to 1.69

5 points

Question 29

Cholesterol Palace is a fast-food restaurant. Management was concerned with errors in filling orders at its drive-up window. It hired several undercover quality inspectors to randomly place 100 orders while the process seemed to be in control. The completed orders were then checked for accuracy.

Defect Frequency

Incomplete, shorter order 12

Unordered items dispensed 2

Wrong product dispensed 14

Wrong toppings 14

Wrong size drink 2

Drink lid not sealed 17

No drinking straw with soft drink order 0

No napkins 18

Far too many condiment packets 65

No salt with sandwich or fries order 10

Wrong change 3

Other 12

A quality inspector just used the drive-up window and now checks her order. Her cheeseburger has mustard on it although she ordered it without ketchup or mustard. Three handfuls of ketchup and mustard packets (far too many) are in the sack, but no napkins. And hot coffee has spilled because the lid wasn't properly sealed. Is the drive-up process in control?

yes (in control)

no (not in control)

5 points

Question 30

In a single sampling plan the sample size n =5. The submitted lot has on an average 25% defective items. Three acceptance numbers ( c = 0, c =1, and c=2) are being negotiated between the manufacturer and the buyer. Which acceptance number is most desirable from the manufacturer's viewpoint. You may use the following OC curve to find the answer.

c = 0

c = 1

c = 2