Production and Operations Management Test Preparation - 3391 Verified Questions

Page 1


Production and Operations Management Test Preparation

Course Introduction

Production and Operations Management explores the fundamental principles and techniques necessary to efficiently produce goods and deliver services. The course covers topics such as process design, capacity planning, inventory management, quality control, supply chain coordination, and lean production strategies. Students will develop analytical and decision-making skills through case studies, quantitative models, and real-world applications, gaining insight into how organizations optimize resources, improve productivity, and deliver value in dynamic business environments.

Recommended Textbook

Principles of Operations Management Sustainability and Supply Chain Management 10th Edition

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3391 Verified Questions

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2

Chapter 1: Operations and Productivity

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Sample Questions

Q1) The total of all outputs produced by the transformation process divided by the total of the inputs is

A) utilization

B) greater in manufacturing than in services

C) defined only for manufacturing firms

D) multifactor productivity

E) none of the above

Answer: D

Q2) Ethical and social dilemmas arise because stakeholders of a business have conflicting perspectives.

A)True

B)False

Answer: True

Q3) Which productivity variable has the greatest potential to increase productivity?

A) labor

B) globalization

C) management

D) capital

E) none of the above

Answer: C

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Chapter 2: Operations Strategy in a Global Environment

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Sample Questions

Q1) Perform a SWOT analysis of Boeing's 787 Dreamliner using the information presented within the text.

Answer: Strengths- Technological advances (8% increase in fuel efficiency, electronic maintenance monitoring)

Weaknesses- Diverse suppliers and assembly locations leave Boeing vulnerable to currency exchange rates and make quality control difficult

Opportunities- one of fastest-selling commercial jets ever gives Boeing a chance to increase market share, Boeing can parlay its use of diverse supplier locations into diversifying customer base

Threats- competition from Airbus, divestment of the manufacture process risks losing company trade secrets (competitive advantage)

Q2) Which of the following statements regarding the Dreamliner 787 is true?

A) Boeing has found partners in over a dozen countries.

B) The new aircraft incorporates a wide range of aerospace technologies.

C) The new aircraft uses engines from not one, but two manufacturers.

D) Boeing will add only 20 to 30 percent of the aircraft's value.

E) All of the above are true.

Answer: E

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Chapter 3: Project Management

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Sample Questions

Q1) Which of the following statements about Bechtel is true?

A) Even though Bechtel is over 100 years old, the Kuwaiti oil fields was its first "project."

B) Bechtel is the world's premier manager of massive construction and engineering projects.

C) Bechtel's competitive advantage is supply-chain management.

D) While its projects are worldwide, its network of suppliers is largely in the U.S.

E) All of the above are true.

Answer: B

Q2) The time an activity will take assuming very unfavorable conditions is

A) the optimistic time

B) the pessimistic time

C) the activity variance

D) the minimum time

E) exactly twice as long as the expected time

Answer: B

Q3) __________ divides a project into more and more detailed components.

Answer: Work breakdown structure or WBS

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Chapter 4: Forecasting

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Sample Questions

Q1) List and briefly describe the three major types of forecasts.

Q2) If two variables were perfectly correlated, the correlation coefficient r would equal A) 0

B) -1

C) 1

D) B or C

E) none of the above

Q3) Technological forecasts address the business cycle by predicting inflation rates, money supplies, housing starts, and other planning indicators.

A)True

B)False

Q4) In trend projection, a negative regression slope is mathematically impossible.

A)True

B)False

Q5) __________ is a time-series forecasting method that fits a trend line to a series of historical data points and then projects the line into the future for forecasts.

Q6) What is a time-series forecasting model?

Q7) The smoothing constant is a weighting factor used in __________.

Page 6

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Chapter 5: Design of Goods and Services

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Sample Questions

Q1) The customer may participate in the design of, and in the delivery of, services.

A)True

B)False

Q2) State the benefits of implementing group technology.

Q3) A listing of the components, their description, and the quantity of each required to make one unit of product is the __________.

Q4) The use of information technology to control machinery is called __________.

Q5) In analyzing product design decisions, decision trees determine the __________ of each course of action.

Q6) The "make-or-buy" decision distinguishes between what an organization chooses to produce and what it chooses to purchase from suppliers.

A)True

B)False

Q7) Identify the four methods of service design that can reduce costs and enhance the product.

Q8) To view product design from a "systems" perspective, managers must view a product in terms of its impact on __________.

Page 7

Q9) Identify the factors that influence new product opportunities.

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Chapter 6: Managing Quality

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Sample Questions

Q1) "Employees cannot produce goods that on average exceed the quality of what the process is capable of producing" expresses a basic element in the writings of

A) Vilfredo Pareto

B) Armand Feigenbaum

C) Joseph M. Juran

D) W. Edwards Deming

E) Philip B. Crosby

Q2) According to the manufacturing-based definition of quality, A) quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost

B) quality depends on how well the product fits patterns of consumer preferences

C) even though quality cannot be defined, you know what it is

D) quality is the degree to which a specific product conforms to standards

E) quality lies in the eyes of the beholder

Q3) State the American Society for Quality's definition of quality. Of the three "flavors" or categories of quality definitions, which type is it? Explain.

Q4) What is the difference between conforming quality and target-oriented quality?

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Page 8

Chapter 7: Statistical Process Control

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Sample Questions

Q1) Ten samples of size four were taken from a process, and their weights measured. The sample averages and sample ranges are in the following table. Construct and plot an x-bar and R-chart using this data. Is the process in control?

\[\begin{array} { | l | r | r | }

\hline \text { Sample } & \text { Mean } & \text { Range } \\

\hline 1 & 20.01 & 0.45 \\

\hline 2 & 19.98 & 0.67 \\

\hline 3 & 20.25 & 0.30 \\

\hline 4 & 19.90 & 0.30 \\

\hline 5 & 20.35 & 0.36 \\

\hline 6 & 19.23 & 0.49 \\

\hline 7 & 20.01 & 0.53 \\

\hline 8 & 19.98 & 0.40 \\

\hline 9 & 20.56 & 0.95 \\

\hline 10 & 19.97 & 0.79 \\

\hline

\end{array}\]

Q2) The __________ is the lowest level of quality that we are willing to accept.

Q3) What does it mean for a process to be "capable"?

Q4) Why are x-bar and R-charts usually used hand in hand?

Page 9

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Chapter 8: Process Strategy

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Sample Questions

Q1) One essential ingredient of mass customization is modular design.

A)True

B)False

Q2) A firm's process strategy is its approach to transforming resources into goods and services.

A)True

B)False

Q3) __________ is the fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance.

Q4) A system using an automated work cell controlled by electronic signals from a common centralized computer facility is called a(n)

A) adaptive control system

B) robotics

C) flexible manufacturing system

D) automatic guided vehicle (AGV) system

E) manufacturing cell

Q5) The assembly line is a classic example of a repetitive process.

A)True

B)False

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Chapter9: Capacity and Constraint Management

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Sample Questions

Q1) A firm is weighing three capacity alternatives: small, medium, and large job shop. Whatever capacity choice is made, the market for the firm's product can be "moderate" or "strong." The probability of moderate acceptance is estimated to be 40 percent; strong acceptance has a probability of 60 percent. The payoffs are as follows. Small job shop, moderate market = $24,000; Small job shop, strong market = $54,000. Medium job shop, moderate market = $20,000; medium job shop, strong market = $64,000. Large job shop, moderate market = -$2,000; large job shop, strong market = $96,000. Which capacity choice should the firm make?

Q2) Which of the following costs would be incurred even if no units were produced?

A) raw material costs

B) direct labor costs

C) transportation costs

D) building rental costs

E) purchasing costs

Q3) Distinguish between utilization and efficiency.

Q4) Price changes are useful for matching the level of demand to the capacity of a facility.

A)True

B)False

Q5) Describe the theory of constraints in a sentence.

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Chapter 10: Location Strategies

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Sample Questions

Q1) The __________ is used to determine the best pattern of shipments from several points of supply to several points of demand.

Q2) A location decision for a traditional department store (Macy's) would tend to have a(n)

A) cost focus

B) labor focus

C) revenue focus

D) environmental focus

E) education focus

Q3) What is the role of labor productivity in location decisions? Why is it more important than low wages in location decisions?

Q4) Consider the list of Key Success Factors in your textbook. Why do some items appear at the country level only, while others are present at both country and regional levels? Select one KSF as an example, and use it in your discussion.

Q5) Why does FedEx use a "hub-and-spoke" airline network, rather than a "point-to-point" network?

Describe FedEx's approach to choosing the airports that serve as its hubs.

Q6) Identify five factors that affect location decisions at the site level.

Q7) What are the advantages and disadvantages of the use of factor-rating schemes?

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Chapter 11: Layout Strategies

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Sample Questions

Q1) Which of the following does not support the retail layout objective of maximizing customer exposure to products?

A) locate high-draw items around the periphery of the store

B) use prominent locations for high-impulse and high-margin items

C) maximize exposure to expensive items

D) use end-aisle locations

E) convey the store's mission with the careful positioning of the lead-off department

Q2) The most common tactic followed in process-layout planning is to arrange departments or work centers so they

A) minimize the cost of skilled labor

B) maximize the machine utilization

C) allocate the available space equally to all the departments

D) minimize the costs of material handling

E) none of the above

Q3) Identify the seven fundamental layout strategies. Describe the use of each one very briefly.

Q4) What techniques can be used to overcome the inherent problems of fixed-position layouts?

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13

Chapter 12: Human Resources, Job Design, and Work Measurement

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Sample Questions

Q1) A manufacturing plant assembly line job has a standard time of 5 minutes. A worker with a performance rating of 87% is assigned the task and given an allowance factor of 13%. What is the worker's average observed time?

Q2) Personal and fatigue allowances can include amounts for the effects of lighting, heat and humidity, and noise.

A)True

B)False

Q3) __________ allowances are those that include the distance from employees to restrooms, water fountains, and other facilities.

Q4) A Therblig is a very small amount of time, one hundred-thousandth of an hour.

A)True

B)False

Q5) Labor standards were pioneered by Frank and Lillian Gilbreth and

A) Frederick Taylor

B) Eli Whitney

C) Henry Ford

D) Alan Smith

E) GE

Q6) How do we establish a fair day's work?

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Chapter 13: Supply-Chain Management

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Sample Questions

Q1) Improvements in security, especially regarding the millions of shipping containers that enter the U.S. each year, are being held back by the lack of technological advances.

A)True

B)False

Q2) The key to effective supply-chain management is to get many suppliers to compete with each other, in order to drive down prices.

A)True

B)False

Q3) In supply-chain management, ethical issues

A) are particularly important because of the enormous opportunities for abuse

B) may be guided by company rules and codes of conduct

C) become more complex the more global is the supply chain

D) may be guided by the principles and standards of the Institute for Supply Management

E) All of the above are true.

Q4) Transferring to external vendors a firm's activities that have traditionally been internal is known as __________.

Q5) Identify the reasons for making in the make-or-buy decision.

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Chapter 14: Outsourcing as a Supply-Chain Strategy

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Sample Questions

Q1) Whatever the outsourced product or service, agreements must specify ongoing __________ and expected __________.

Q2) What do you think would be a major risk for a government trying to promote its country as a low-cost producer, filled with ready and willing outsourcing providers?

Q3) Offshoring is the practice of moving a business process to a foreign country but retaining control of it.

A)True

B)False

Q4) The factor-rating method is an excellent tool for dealing with both __________ and __________ problems.

Q5) A firm is considering two countries to outsource its call center. Currently the weighted factor method has given a score of 120 to the first country and 110 to the second country. If the second country wants to improve its score in the labor rating (weight=1.5), how much must it increases its labor rating by to have a score greater than or equal to country 1?

Q6) Identify some ethical principles as applied to outsourcing.

Q7) Describe the difference between outsourcing and offshoring.

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Chapter 15: Inventory Management

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Sample

Questions

Q1) In the basic EOQ model, if the cost of placing an order doubles, and all other values remain constant, the EOQ will

A) increase by about 41%

B) increase by 100%

C) increase by 200%

D) increase, but more data is needed to say by how much

E) either increase or decrease

Q2) An advantage of the fixed-period inventory system is that

A) safety stock will be lower than it would be under a fixed-quantity inventory system

B) there is no physical count of inventory items when an item is withdrawn

C) no inventory records are required

D) orders usually are for smaller order quantities

E) the average inventory level is reduced

Q3) If a safety stock problem includes parameters for average daily demand, standard deviation of demand, and lead time, then __________ is variable and __________ is constant.

Q4) In the production order quantity model, the fraction of inventory that is used immediately and not stored is represented by the ratio of __________.

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Page 17

Chapter 16: Aggregate Planning

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Sample Questions

Q1) "Yield management" is best described as

A) a situation where management yields to labor demands

B) a situation where the labor union yields to management demands

C) a process designed to increase the rate of output

D) capacity allocation to different classes of customers in order to maximize profits

E) management's selection of a product mix yielding maximum profits

Q2) Because service firms do not inventory their output, pure chase strategy is not appropriate.

A)True

B)False

Q3) Which of the following aggregate planning strategies is a "capacity option"?

A) influencing demand by changing price

B) counterseasonal product mixing

C) influencing demand by extending lead times

D) changing inventory levels

E) influencing demand by back ordering

Q4) Compare the chase versus level strategy options.

Q5) What four things are needed to develop an aggregate plan?

Q6) What is the typical planning horizon for aggregate planning?

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Chapter 17: Material Requirements Planning MRP and ERP

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Sample Questions

Q1) Which of the following statements regarding Wheeled Coach is <b>False</b>?

A) Wheeled Coach has found competitive advantage through MRP.

B) Wheeled Coach builds ambulances in a repetitive process.

C) Wheeled Coach's MRP system allowed the company to meet tight schedules, but caused inventory to rise.

D) Wheeled Coach's MRP system maintains excellent record integrity.

E) Low inventory and high quality are two positive outcomes of Wheeled Coach's use of MRP.

Q2) Which of the following is not a key benefit of MRP?

A) quality increases

B) better response times to customer orders

C) faster response to market changes

D) improved utilization of facilities

E) reduced inventory levels

Q3) Jacquie Welkener, operations manager for ABC Technologies, must schedule work for the next five days. Each unit takes 30 minutes to process. Available capacity is 8 hours per day. The production order quantities are 12, 18, 20, 13, and 17 for Monday through Friday, respectively. What should be the production plan?

Q4) What are the disadvantages of enterprise resource planning (ERP)?

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Chapter 18: Short-Term Scheduling

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Sample Questions

Q1) The production database containing information about each of the components that a firm produces or purchases is the

A) routing file

B) work-center master file

C) control file

D) item master file

E) none of the above

Q2) How does short-term scheduling vary among the different process choices? Specifically, compare short-term scheduling at process-oriented, work cells, repetitive, and product-focused facilities.

Q3) Which of the following files tracks work order progress?

A) work-center master files

B) routing files

C) item master files

D) control files

E) None of the above tracks work order progress.

Q4) __________ are used to schedule resources and allocate time.

Q5) Identify the disadvantages of the Gantt load chart.

Q6) Explain, in your own words, how backward scheduling and forward scheduling differ.

Page 20

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Chapter 19: Just-In-Time and Lean Options

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Sample Questions

Q1) If setup times and costs can be reduced enough, the JIT ideal of "Lot Size = 1" can be achieved.

A)True

B)False

Q2) You have read that in JIT and lean production the optimum lot size is one, with some exceptions for packaging and physical limitations. If a product currently has a lot size of 25, what must happen to setup time for the lot size to truly fall to one?

Data for this problem are D=100 units, S=$75 based on setup time of 50 minutes at $1.50 per minute, and H=$40 per unit per year.

Q3) In JIT partnerships, suppliers have several concerns. Which of the following is <b>not </b>such a concern?

A) desire for diversification

B) poor customer scheduling

C) small lot sizes

D) producing high enough quality levels

E) customers' infrequent engineering changes

Q4) How are lean operations and the Toyota Production System (TPS) alike?

How are they different?

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Page 21

Chapter 20: Maintenance and Reliability

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Sample Questions

Q1) Small standard deviations in the MTBF distribution of a machine tend to support a policy of breakdown maintenance for that machine.

A)True

B)False

Q2) Suppose that a three stage process had reliability ratings of .7, .8, and .9 at each station and that a failure at any station represented a failure for the entire process. If each station is given a redundant check with .9 reliability, what is the increase in system reliability?

Q3) As far as maintenance costs are concerned,

A) for low levels of maintenance commitment, breakdown maintenance costs exceed preventive maintenance costs

B) for low levels of maintenance commitment, preventive maintenance costs exceed breakdown maintenance costs

C) for high levels of maintenance commitment, breakdown maintenance costs exceed preventive maintenance costs

D) preventive maintenance is always more economical than breakdown maintenance

E) Breakdown maintenance is always more economical than preventive maintenance when the "full cost of breakdowns" is taken into consideration.

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Chapter 21: Decision-Making Tools

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Sample Questions

Q1) What is a conditional value?

Q2) In the context of decision-making, define state of nature.

Q3) A tabular presentation that shows the outcome for each decision alternative under the various possible states of nature is called a(n)

A) isoquant table

B) payback period matrix

C) payoff table

D) feasible region

E) decision tree

Q4) An example of expected monetary value would be the payoff from selecting a particular alternative when a particular state of nature occurs.

A)True

B)False

Q5) Decision trees and decision tables can both solve problems requiring a single decision, but decision tables are the preferred method when a sequence of decisions is involved.

A)True

B)False

Q6) The square symbol used in drawing a decision trees represents a __________ node.

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Chapter 22: Linear Programming

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Sample Questions

Q1) In sensitivity analysis, a zero shadow price (or dual value) for a resource ordinarily means that the resource has not been used up.

A)True

B)False

Q2) In linear programming, a statement such as "maximize contribution" becomes a(n)

A) constraint

B) slack variable

C) objective function

D) violation of linearity

E) decision variable

Q3) One requirement of a linear programming problem is that the objective function must be expressed as a linear equation.

A)True

B)False

Q4) What is the usefulness of a shadow price (or dual value)?

Q5) What is linear programming?

Q6) __________ is a mathematical technique designed to help operations managers plan and make decisions relative to the trade-offs necessary to allocate resources.

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Chapter 23: Transportation Models

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Questions

Q1) A large transportation problem has 220 origins and 1360 destinations. The optimal solution of this problem will fill no more than about __________ of cells with quantities to be shipped.

A) one-half of one percent

B) five percent

C) ten percent

D) twenty-five

E) All cells will be occupied.

Q2) When the number of shipments in a feasible solution is less than the number of rows plus the number of columns minus one

A) the solution is optimal

B) a dummy source must be created

C) a dummy destination must be created

D) there is degeneracy, and an artificial allocation must be created

E) the closed path has a triangular shape

Q3) When using the stepping-stone method, the improvement index for an unused cell equals the shipping cost associated with that cell.

A)True

B)False

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Page 25

Chapter 24: Waiting-Line Models

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Sample Questions

Q1) The common measures of a queuing system's performance include

A) probability that the service facility will be idle, average queue length, probability that the waiting time will exceed a specified duration

B) average time each customer spends in the system, probability that the service system will be idle, average time each customer spends in the queue

C) average queue length, maximum time a customer may spend in the queue, the utilization factor for the system

D) average time each customer spends in the system, maximum queue length, probability of a specific number of customers in the system

E) none of the above

Q2) Describe the important operating characteristics of a queuing system.

Q3) Describe the difference between FIFO and LIFO queue disciplines.

Q4) A waiting line meeting the M/M/1 assumptions has an arrival rate of 10 per hour and a service rate of 12 per hour. What is the average time a unit spends in the system and the average time a unit spends waiting?

Q5) Why must the service rate be greater than the arrival rate in a single-channel system?

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Page 26

Chapter 25: Learning Curves

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Sample Questions

Q1) Which of the following is <b>not</b> a limitation of the use of learning curves?

A) Any change in personnel, design, or procedure can alter the learning curve.

B) Time measurements on early units completed must be accurate.

C) The culture of the workplace may alter the learning curve.

D) Direct labor and indirect labor may not follow the same learning curves.

E) All of these are limitations of learning curves.

Q2) The learning curve in the steel industry and the learning curve in heart surgery have both been estimated at 79 percent.

A)True

B)False

Q3) A manager is trying to estimate the appropriate learning curve for a certain job. The manager notes that the first four units had a total time of 30 minutes. Which learning curve would yield approximately this result if the first unit took 9 minutes?

A) 0.70

B) 0.75

C) 0.80

D) 0.85

E) 0.90

Q4) Describe the earliest application of learning curve concepts to industry.

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Chapter 26: Simulation

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Sample Questions

Q1) A distribution of service times at a waiting line indicates that service takes 12 minutes 30 percent of the time and 14 minutes 70 percent of the time. In preparing this distribution for Monte Carlo analysis, the service time 13 minutes would be represented by the random number range

A) 00 through 29

B) 01 through 30

C) 30 through 99

D) 31 through 00

E) None of these; 13 minutes is not a possible outcome.

Q2) From a portion of a probability distribution, you read that P(demand = 1) is 0.05, P(demand = 2) is 0.15, and P(demand = 3) is .20. The<b> cumulative</b> probability for demand 3 would be

A) 0.133

B) 0.200

C) 0.400

D) 0.600

E) cannot be determined from the information given

Q3) Explain how Monte Carlo simulation uses random numbers.

Q4) Identify the seven steps involved in using simulation.

Q5) What are the advantages and disadvantages of simulation models?

Page 28

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