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Operations Management Exam 4 MCQs

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Question;Question 1Raw materials have value added by the operations. Mining, growing, refining, cleaning, packing and shipping add value.TrueFalse2.5 points Question 2Quality standards for components and subassemblies do not have to be clearly set by the materials manager for the producer.TrueFalse2.5 points Question 3Vertical integration is achieved by buying companies able to provide components that are otherwise purchased from suppliers.TrueFalse2.5 points Question 4DOI (days of inventory) is a measure that is equivalent to dividing total stock on-hand by the average demand per day.TrueFalse2.5 points Question 5In 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.TrueFalse2.5 points Question 6Wal-Mart uses cross-docking to transfer goods from incoming trucks at the receiving dock to outgoing trucks at the shipping docks.TrueFalse2.5 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 above2.5 points Question 8The cost of materials is often less crucial than _____ on-time delivery. project completion date. carrying costs. TQM.2.5 points Question 9Which 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 above2.5 points Question 10_____ has become a global system. Freshness dating EDI use Out-sourcing Invoicing2.5 points Question 11Failing 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 above2.5 points Question 12It 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 13The 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 floor2.5 points Question 14Cross-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 15Bidding models show that as the number of bidders competing _____, the size of the winning bid decreases. decreases changes increases is unknown2.5 points Question 16_____ occurs when purchased components are further transformed by the company's production process. Acquisition Raw Material Value Adding Extraction2.5 points Question 17Components (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 above2.5 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 WIP2.5 points Question 19The importance of the buying function depends upon the extent to which the company requires suppliers. outside suppliers. raw materials suppliers. all of the above2.5 points Question 20Bullwhip effect refers to shortages overstock both a. and b. safety stock2.5 points Question 21In 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 45 points Question 22Twenty 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 Defectives1 12 11 162 18 12 153 10 13 134 15 14 165 16 15 186 19 16 177 17 17 188 12 18 209 11 19 2110 14 20 22 close to 0.08 close to 0.019 close to 1.28 close 0.105 close to 0.85 points Question 23Cans 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 Range1 15.2 1.82 14.6 0.73 16.5 0.54 18.1 0.45 13.2 0.26 16.0 0.47 15.9 0.58 14.8 0.9 close to 15.79 close to 15.93 close to 15.54 close to 15.825 points Question 24Cans 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 Range1 15.2 1.82 14.6 0.73 16.5 0.54 18.1 0.45 13.2 0.26 16.0 0.47 15.9 0.58 14.8 0.9 close to 1.42 close to 0.78 close to 1.12 close to 0.825 points Question 25Cans 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 Range1 15.2 1.82 14.6 0.73 16.5 0.54 18.1 0.45 13.2 0.26 16.0 0.47 15.9 0.58 14.8 0.9 yes (in control) no (not in control)5 points Question 26Eight 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 Defectives1 102 03 124 85 106 167 148 10 yes (in control) no (out of control)5 points Question 27Cholesterol 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 FrequencyIncomplete, shorter order 12Unordered items dispensed 2Wrong product dispensed 14Wrong toppings 14Wrong size drink 2Drink lid not sealed 17No drinking straw with soft drink order 0No napkins 18Far too many condiment packets 65No salt with sandwich or fries order 10Wrong change 3Other 12 close to 1.69 close to 169 close to 0.59 close to 2.005 points Question 28Cholesterol 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 FrequencyIncomplete, shorter order 12Unordered items dispensed 2Wrong product dispensed 14Wrong toppings 14Wrong size drink 2Drink lid not sealed 17No drinking straw with soft drink order 0No napkins 18Far too many condiment packets 65No salt with sandwich or fries order 10Wrong change 3Other 12 close to -2.21 close to 1.3 close to 3.0 zero (0) close to 1.695 points Question 29Cholesterol 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 FrequencyIncomplete, shorter order 12Unordered items dispensed 2Wrong product dispensed 14Wrong toppings 14Wrong size drink 2Drink lid not sealed 17No drinking straw with soft drink order 0No napkins 18Far too many condiment packets 65No salt with sandwich or fries order 10Wrong change 3Other 12A 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 30In 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

 

Paper#46276 | Written in 18-Jul-2015

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