OPS 571 Final Exam (Newest) - Assignment


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OPS 571 Final Exam (Newest) –


1. A major competitive dimension that forms a company's strategic

operational competitive position in their strategic planning is which

of the following?

Cost or price




2. In setting up a kanban control system you need to determine the

number of kanban card sets needed. If the expected demand during

lead time is 25 per hour, the safety stock is 20 percent of the demand

during lead time, the container size is 5, and the lead time to

replenish an order is 5 hours, what the number of kanban card sets

is needed?





3. Which of the following is a multifactor measure of productivity?

Output/(Labor + Capital + Energy)

Output/All resources used



4. Which of the following is an alternative possible service encounter

included in the service-system design matrix?


Automated teller (ATM)

Face-to-face distance

Questionnaire response

5. In development of an operations and supply chain strategy, which of

the following may be an important product-specific criteria to


Learning curve

Supplier after-sale support

Production lot size


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Exam (Newest)

6. Which of the following is one of Dr. Eli Goldratt's rules of production

scheduling for optimized production technology?

An hour lost at a bottleneck saves an hour for the entire system

Do not allow bottlenecks to govern the flow of the line

Utilization and activation of a resource are not the same

Balance the capacities, not the flows

7. You have just been assigned to oversee a series of projects.

Functional areas will loan you personnel for each project, and

separate project managers will be responsible for separate projects.

These project managers will report to you. Which project

management structure is being used?

Matrix project

Pure project

Functional project

Task force

8. Which of the following is a reason that firms must develop more new

products than ever?

Commitments to joint venture partners

Product life cycles are shorter

They are replacing old customers with new ones

To amortize heavy investments in development labs

9. We would expect to see which of the following in an MRP system's

inventory status file?

End items produced

Late/early delivery records

Labor efficiency

Scrap parts

10. The centroid method for plant location uses which of the following


Inbound transportation costs

Volume of goods to be shipped between existing points

Transport times between facilities

Correlation matrix of existing facilities

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11. The Pareto principle is best applied to which of the following

inventory systems?



Fixed-order quantity

ABC classification

12. A company can produce a small lot of products the first time at a

cost of $2,000. If their 85 percent learning curve allows them to

reduce their costs on each lot, what is the total cost of producing 5






13. You are a consultant called in to estimate the costs after the

employees learn how to do a job more efficiently by repetition of new

product. You find a company can produce a product the first time at

a cost of $5,000. If their 90 percent learning curve allows them to

reduce their costs on each unit, what is the total cost of producing

100 units of the new product?





14. A material requirements planning system is an example of which

of the following scheduling systems?

Infinite loading, backward scheduling

Finite loading, backward scheduling

Infinite loading, forward scheduling

Finite loading, forward scheduling

15. Capacity planning that involves hiring, layoffs, some new tooling,

minor equipment purchases, and subcontracting is considered as

which one of the following planning horizons?

Long range


Short range

Intermediate range

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16. You want to determine the upper control line for a p-chart for

quality control purposes. You take several samples of a size of 100

items in your production process. From the samples, you determine

the fraction defective is 0.05 and the standard deviation is 0.01. If

the desired confidence level is 99.7 percent, which of the following is

the resulting UCL value for the line?





17. The objectives of work center scheduling include which of the


Providing variety to workforce

Following all the priority rules

Minimizing setup costs

Avoiding tradeoffs

18. For which of the following should we use an R-chart to monitor

process quality?

Deciding whether an airliner has sufficient fuel for its trip

Determining whether vehicles from a motor pool will run

Weighing trucks at a highway inspection station to determine if

they are overloaded

Student grades measured from 1 to 100

19. Which of the following is a major factor that distinguishes service

design and development from manufacturing design and


The service package has the same legal protection available to

manufactured goods.

The service process and service product can be developed


Manufacturing is far more capital intensive than services.

The service package is the major output of the development


20. Which of the following is a time-to-market performance measure

used in judging product development performance?

Customer loyalty

Product reliability


Frequency of new-product introductions

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21. In business forecasting, what is usually considered a mediumterm

time period?

One to six months

Three months to two years

Six weeks to one year

One to five years

22. There are many applications of poka-yokes in service

organizations. Which of the following is one of the three-T's used to

classify poka-yokes?





23. Assuming no safety stock, what is the reorder point (R) given an

average daily demand of 78 units and a lead time of 3 days?





24. Which of the following is a measure of operations and supply

management efficiency used by Wall Street?

Earnings per share growth

Current ratio

Dividend payout ratio

Receivable turnover

25. A project starts out as which of the following?

Critical path method (CPM)

A latest-start-time estimate

A series of milestones

A statement of work

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26. The ability to rapidly and inexpensively switch production from

one product to another enables what are sometimes referred to as:

Economies of shape

Economies of scope

Economies of size

Economies of scale

27. According to the theory of constraints, which of the following is a

financial measurement that can be used to measure the firm's ability

to make money?



Net profit


28. What is a work breakdown structure?

A depiction of the activities making up a project

A Gantt chart

A list of the activities making up the higher levels of the project

A definition of the hierarchy of project tasks, subtasks, and

work packages

29. If a firm produced a standard item with relatively stable demand,

the smoothing constant alpha (reaction rate to differences) used in

an exponential smoothing forecasting model would tend to be in

which of the following ranges?

5 to 10 percent

60 to 120 percent

20 to 80 percent

20 to 50 percent

30. What transportation mode has very high initial investment costs

but gives a very low cost per mile for products that are highly

specialized and require no packaging?





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