The triple bottom line relates to the economic, employee, and customer impact of a firm’s

strategy
False

In a multifactor measure of productivity, the numerator of the ratio would include all resources
used or all inputs
False

Simple exponential smoothing lags changes in demand

True

Forecasts of individual products tends to be less accurate than forecasts of product families
True

Capacity can be defined as the amount of available resource inputs relative to requirements for
output over time
True

The critical path in a CPM analysis is found by locating the activities with large slack times
False

Assembling-to-order means moving the customer order decoupling point from finished goods
to components
True

A service system with a high degree of customer contact is less difficult to control than a low
degree of contact
False

Costs incurred in hiring, training, and laying off personnel are considered relevant aggregate
operations planning costs
True

The three main inputs to an MRP system are the bill of materials, the master schedule and
inventory records file
True

The term “conformance quality” refers to the relative level of performance of a product as
compared to competing product
False

Variation in production systems that is caused by factors that can be clearly identified is called
common variation
False
In inventory models, high holding costs tend to favor low inventory levels and frequent
replenishment
True

Lean production requires a “push & pull” system of inventory replenishment

“Quality at the source” requires factory workers to become their own inspectors
True

Product storage is an example of waste, in the sense that no value is added

True

A financially-driven reason for outsourcing is that it can turn variable costs into manageable
fixed costs
False

A firm that controls most of the activities in its supply chain is said to be vertically integrated
True

Cross-docking is used in warehouses, where large shipments can be broken down into small
shipments for local delivery
True

For a location decision, labor productivity may be important, but low wage rates are more
important
False

Which of the following is not a way that operations and supply processes are categorized?
Selecting

Which of the following list contains only competitive dimensions of a firm discussed in text
Cost, quality, delivery speed etc.

The exponential smoothing method requires which of the following data to forecast the future
The most recent forecast
The ability to rapidly and inexpensively switch production from one product to another enables
what are referred to as:
Economies of scope

Which of these statements regarding time cost tradeoff in CPM networks is true?
Crashing shortens

A firm fills its customers’ orders from finished goods inventory it is a:

Make to stock firm
Which of the following can be used to guide the design of service systems?
Services cannot be inventoried

Which of the following costs are relevant to aggregate operations planning?

Backordering costs

Which of the following is not a lot sizing technique used in MRP systems?
Warehouse loading factor (WLF)

A fishbone diagram as part of a six-sigma quality improvement process might be fount in which
DMAIC category
Analyze

Which of the following is not an analytical tool used in six-sigma quality improvement
programs?
Pass charts

Which of the following is not included as an inventory holding cost?

Annualized cost of materials

ABC inventory classification schemes divide inventory items into 3 groupings

Dollar volume

What is the technique used to identify all of the value-adding as well as non-value-adding
processes?
Value stream mapping

Which of the following are elements that address elimination of waste under lean production?
Kanban production control system

The Toyota Production System identified which of the following types of wastes to be
eliminated
Motion

The effect of the lack of synchronization among supply chain members is referred to as which of
the following
Bullwhip effect

Ownership costs incurred after the initial purchase and associated with the ongoing use of the
product or material
Energy usage
Which of the following is a plant location methodology for locating a facility based on distances
and volumes of goods?
Centroid method

The main reason fast food restaurants often are found in close proximity to each other is
Location clustering in high demand