The manager of the Quick Stop Corner

Convenience Store (which never closes) sells four

cases of
Stein beer each day. Order costs are $8.00 per
order, and Stein beer costs $.80 per six-pack
(each case
of Stein beer contains four six-packs). Orders
$1.28
arrive three days from the time they are placed.
Daily
holding costs are equal to 5 percent of the cost of
the beer.
If he were to order 16 cases of Stein beer at a
time, what would be the daily total inventory
costs, EXCLUDING the cost of the beer?
The process of assigning tasks to workstations in
such a way that the workstations have
approximately equal time requirements is called:
C. line balancing.
A. fair employment practices. B. idle time
analysis. C. line balancing. D. cycle time
optimization. E. capacity cycling.
Which one of the following is not common to - ability to adjust to changes in
product layouts? demand
Which of the following is not an information E. a list of product cycle times for
requirement for the design of a process layout? every product manufactured
The need for safety stocks can be reduced by an
decreases lead time variability.
operations strategy which
The estimation of costs is generally most difficult
job shop
when the __________ process has been chosen.
Job shops tend to be __________ while
small scale and flexible; large-scale and inflexible
continuous processes tend to be __________.
Which of the following is not a characteristic of
usually well received by operative personnel
layout decisions in system design?
Computer-Integrated manufacturing integrates
all of the following except ___________ with consumer satisfaction survey
manufacturing.
To provide satisfactory levels of customer service
while keeping inventory costs within reasonable
bounds, two fundamental decisions must be True
made about inventory: the timing and the size of
orders
An operations strategy for process selection flexibility is not always the
should recognize that: best choice
Computer-aided manufacturing refers to the use
process control
of computers in:
Which of the following is typically the largest of
purchase cost
all inventory costs?
Cellular layouts are associated with part families
In a supermarket, a vendor's restocking the
Fixed order interval
shelves every Monday morning is an example of
Which of the following interactions with vendors
reduced lead times
would potentially lead to inventory reductions?
Even though it is often the case that no cash
outflows result when demand exceeds capacity, shortage costs
__________ can nevertheless be experienced
A common goal in designing process layouts is: minimizing transportation costs
Which of the following is LEAST likely to be Temporary storage of delivered
included in order costs? goods
Which of the following is NOT one of the basic - quantity
assumptions of the basic EOQ model? discounts are possible
Which one of the following is not generally a
purchase cost
determinant of the reorder point?
The EOQ model is most relevant for which one of
determining fixed order quantities
the following?
Morale problems can be a reason for redesign of
TRUE
a facility layout.
When new products or services are being
planned, process selection occurs as a matter of
course. Process selection also comes into play as
a result of: . I, II, and III
(I) technological changes.
(II) competitive pressures.
(III) fundamental changes in demand patterns.
The advantages of automation include:
(I) Reduced output variability.
(II) Reduced variable costs.
. . I, II, and III
(III) Machines don't strike or file grievances.
(IV) Machines are always less expensive than
human labor
Which of these items would be most likely to be
A large, ocean-going cruise ship
made with a fixed position layout?
- A risk avoider would want ______ safety stock. More
Process choice is ________ driven. demand
Layout design has many objectives, one of which
use workers and space efficiently
is:
Which of the following is not a significant concern
pricing strategy
for process selection?
Key aspects of the process selection challenge
capital intensity; process flexibility
include _________ and __________.
The manager of the Quick Stop Corner
Convenience Store (which never closes) sells four
cases of -4
Stein beer each day. Order costs are $8.00 per days
order, and Stein beer costs $.80 per six-pack
(each case
of Stein beer contains four six-packs). Orders
arrive three days from the time they are placed.
Daily
holding costs are equal to 5 percent of the cost of
the beer.
If he were to order 16 cases of Stein beer at a
time, what would be the length of an order cycle?
The materials manager for a billiard ball maker
must periodically place orders for resin, one of
the raw
materials used in producing billiard balls. She
knows that manufacturing uses resin at a rate of
50
500 kilograms remaining
kilograms each day, and that it costs $.04 per day
to carry a kilogram of resin in inventory. She also
knows that the order costs for resin are $100 per
order, and that the lead time for delivery is four
days. If the order size was 1,000 kilograms of
resin, what would be the average inventory level?
Common reason for redesign of layouts include
(I) Efficient operations
(II) Accidents or safety hazards II, III, and IV
(III) New products or services
(IV) Morale problems
If average demand for an inventory item is 200
units per day, lead time is three days, and safety
700 units
stock
is 100 units, the reorder point is:
Which of the following is not a process type
commonly considered in making products or subcontracting
delivering services?
Dairy items, fresh fruit and newspapers are items
are subject to deterioration and spoilage
that:
Ann Chovies, owner of the Perfect Pasta Pizza
Parlor, uses 20 pounds of pepperoni each day in
preparing pizzas. Order costs for pepperoni are
$10.00 per order, and carrying costs are 4 cents
60 pounds remaining
per pound per day. Lead time for each order is
three days, and the pepperoni itself costs $3.00
per pound. At what point should she reorder
pepperoni?
There are three basic process types - Input,
- FALSE
Processing and Output. -
The key questions in the process selection task
are: II and IV
(I) How will the product/service be priced?
(II) How much variety will be imposed on the
process?
(III) What is the target market for the
product/service?
(IV) At what volume will the process need to
operate?
Which of the following is not an approach that
companies use to achieve a smooth flow of Companies use all of these
production?
A group of machines including supervisory
computer control, automatic material handling,
a flexible manufacturing system.
and
possibly robots is called:
An advantage of a U-shaped production line is it is more efficient than a traditional
that: product layout.
The grouping of equipment by the operations
needed to perform similar work for part families cellular manufacturing layout
is:
In an A-B-C system, the typical percentage of the
number of items in inventory for A items is 10
about:
A production line is to be designed for a job with
three tasks. The task times are .4 minutes, 1.2
- 2.1
minutes, and .5 minutes. The maximum cycle
time in minutes is: -
The materials manager for a billiard ball maker
must periodically place orders for resin, one of
the raw
materials used in producing billiard balls. She
knows that manufacturing uses resin at a rate of
50 200 kilograms remaining
kilograms each day, and that it costs $.04 per day
to carry a kilogram of resin in inventory. She also
knows that the order costs for resin are $100 per
order, and that the lead time for delivery is four
days. At what point should resin be reordered?
In a two-bin inventory system, the amount
ROP
contained in the second bin is equal to the:
In the basic EOQ model, an annual demand of 40
units, an ordering cost of $5, and a holding cost
20
of
$1 per unit per year will result in an EOQ of:
- Average demand for a particular item is 1,200
units per year. It costs $100 to place an
once a month
order for this item, and it costs $24 to hold one
unit of this item in inventory for one year. If the
fixed-order-interval model is chosen in this
instance, how often (on average) will this item be
ordered?