Final Exam: Operations Management

In a Level strategy, which of the following are true?
a & b are true. a. inventory is accumulated during low demand months for use during high demand months b. hiring layoffs of workers is not allowed
The basic goal of aggregate planning is to balance:
demand and capacity
A direct result of dis-aggregating the aggregate plan is the
master production schedule
Which of the following aggregate planning strategies cannot be applied to a service setting?
using inventories to absorb fluctuations in demand
A chase strategy has the advantage that
inventory investment is not needed
a fast food restaurant that has a strategy of hiring part time workers during peak service hours is an example of
chase strategy
in level scheduling, what is kept uniform from month to month
production/workforce levels
one use of inventory is
all of the above
a key distinction of dependent demand from independent demand is that
it can be computed
which of the following indicates some symptoms of mismanaged inventories
all of the above
in an ABC classification of inventory items which of the following is NOT true
ABC classification should be used only for independent demand items
which of the following is true of cycle counting?
all of the above
when using ABC analysis,
A items account for a large percentage of capital investment, but a small percentage of all inventory items
one of the main assumptions of the basic EOQ model is
demand is constant
in the basic EOQ model, as the setup cost increases, then:
all of the above
in the basic EOQ model, assuming D (annual demand) remains constant, as the order quantity Q increases the annual ordering cost:
decreases
in the basic EOQ model, the EOQ is the order quantity that will do all of the following except
minimize the annual purchasing cost
the basic EOQ model assumes:
none of the above
in the ROP model with constant demand:
a,b,c. inventory will never fall below zero, when inventory falls to a preset level, an order is placed for quantity Q, the time interval between any two orders is fixed and known
In the Periodic Review System:
a &b. review times are fixed, order quantity varies
Service Level is:
the probability that demand is met from inventory
the two most important questions answered by a typical inventory model are:
when to order and how much to order
which of the following is not an input to an MRP system?
Economic Order Quantity (EOQ) computations
in an MRP system, the replenishment of orders relative to the time when they are needed by their lead times is
time phasing
which of the following is true about the Bill of Materials?
all of the above
Which of the following are outputs from an MRP system?
work orders and purchase orders
Which of the following is not a lot sizing option?
netting for requirements
The phrase “demand derived from the demand for other products” describes
dependent demand
The critical path is composed of activities which have
the same minimum slack times
Which of the following best describes the slack of an activity
late start date minus early start date
When the activity times cannot be estimated deterministically for a particular project, which scheduling technique should be used?
PERT
Which of the following statements about PERT is true?
none of the above are true
The use of the PERT approach requires which of the following inputs?
a, b & d. a. a list of activities that make up the project b. the precedence relationship between activities d. the three estimates of the activity times (a, m, b)