Course Operations Management-16SP
Test Quiz 6
Started 3/19/16 9:31 PM
Submitted 3/19/16 10:03 PM
Status Completed
Attempt Score 100 out of 100 points
Time Elapsed 32 minutes.
Instructions
  • Question 1

5 out of 5 points

Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and demand is constant throughout the year. The cost of placing an order is $40, while the holding cost is $20 per unit per year. There are 360 working days per year and the lead-time is 5 days. If Mark orders 200 units each time he places an order, what would his average inventory be (in units)?

Answer

Selected Answer:  

100

Correct Answer:  

100

  • Question 2

5 out of 5 points

Andre Candess manages an office supply store. One product in the store is computer paper. Andre knows that 10,000 boxes will be sold this year at a constant rate throughout the year. There are 250 working days per year and the lead-time is 3 days. The cost of placing an order is $30, while the holding cost is $15 per box per year. How many units should Andre order each time?

Answer

Selected Answer:  

200

Correct Answer:  

200

  • Question 3

5 out of 5 points

Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events through which a product travels is a:

Answer

Selected Answer:  

flowchart.

Correct Answer:  

flowchart.

  • Question 4

5 out of 5 points

In a JIT system, inventory managers can uncover bottlenecks by introducing or removing which of the following?

Answer

Selected Answer:  

P-kanbans

Correct Answer:  

P-kanbans

  • Question 5

5 out of 5 points

What refers to training and empowering frontline workers to solve a problem immediately?

Answer

Selected Answer:  

service recovery

Correct Answer:  

service recovery

  • Question 6

5 out of 5 points

The annual demand for a product has been projected at 2,000 units. This demand is assumed to be constant throughout the year. The ordering cost is $20 per order, and the holding cost is 20 percent of the purchase cost. Currently, the purchase cost is $40 per unit. There are 250 working days per year. Whenever an order is placed, it is known that the entire order will arrive on a truck in 6 days. Currently, the company is ordering 500 units each time an order is placed. What should be the reorder point (excluding any safety stock) under the current policy?

Answer

Selected Answer:  

48

Correct Answer:  

48

  • Question 7

5 out of 5 points

Arnold Palmer Hospital uses which of the following quality management techniques?

Answer

Selected Answer:  

The hospital uses all of these techniques.

Correct Answer:  

The hospital uses all of these techniques.

  • Question 8

5 out of 5 points

Rose Arena is the production manager for a manufacturing firm that produces buggy whips and other items. The annual demand for a particular buggy whip is 1,600 units. The holding cost is $2 per unit per year. The cost of setting up the production line is $25. There are 200 working days per year. Rose decided to produce 200 units each time she started production of the buggy whips. If it took her 4 days to produce the 200 units, what was her production rate?

Answer

Selected Answer:  

50 units/day

Correct Answer:  

50 units/day

  • Question 9

5 out of 5 points

An organization hosting a 5K race is looking to sell t-shirts at the event. Demand for t-shirts is believed to be normally distributed with a mean of 100 and standard deviation of 15. With a marginal loss of $4 and marginal profit of $5, how many t-shirts should the organization stock for the 5K race?

Answer

Selected Answer:  

103

Correct Answer:  

103

  • Question 10

5 out of 5 points

“Quality Is Free,” meaning that the costs of poor quality have been understated, is the work of:

Answer

Selected Answer:  

Philip B. Crosby.

Correct Answer:  

Philip B. Crosby.

  • Question 11

5 out of 5 points

Members of quality circles are:

Answer

Selected Answer:  

None of these; all of the statements are false.

Correct Answer:  

None of these; all of the statements are false.

  • Question 12

5 out of 5 points

Total quality management emphasizes:

Answer

Selected Answer:  

a commitment to quality that goes beyond internal company issues to suppliers and customers.

Correct Answer:  

a commitment to quality that goes beyond internal company issues to suppliers and customers.

  • Question 13

5 out of 5 points

Bret’s bakery must decide how many loaves of fresh bread to produce in a single day. Daily demand for fresh bread is normally distributed with a mean of 70 loaves and standard deviation of 18. If the marginal loss is $2 and the marginal profit is $1, how much bread should Bret’s bakery produce in a single day?

Answer

Selected Answer:  

63

Correct Answer:  

63

  • Question 14

5 out of 5 points

The annual demand for a product is 1,000 units. The company orders 200 units each time an order is placed. The lead-time is 6 days. There are 250 working days per year. If the reorder point is 50, what safety stock are they using?

Answer

Selected Answer:  

26

Correct Answer:  

26

  • Question 15

5 out of 5 points

Which of the following statements concerning ABC analysis is false?

Answer

Selected Answer:  

Class C items tend to have more complex inventory policies than Class B items.

Correct Answer:  

Class C items tend to have more complex inventory policies than Class B items.

  • Question 16

5 out of 5 points

GE’s recall of 3.1 million dishwashers cost the company more in repairs than the value of the actual dishwashers. This is an example of which quality principle?

Answer

Selected Answer:  

cost of poor quality is underestimated

Correct Answer:  

cost of poor quality is underestimated

  • Question 17

5 out of 5 points

The process improvement technique that sorts the vital few from the trivial many is:

Answer

Selected Answer:  

Pareto analysis.

Correct Answer:  

Pareto analysis.

  • Question 18

5 out of 5 points

A Six Sigma program has how many defects per million?

Answer

Selected Answer:  

3.4

Correct Answer:  

3.4

  • Question 19

5 out of 5 points

Which of the following is not a typical inspection point?

Answer

Selected Answer:  

after a costly process

Correct Answer:  

after a costly process

  • Question 20

5 out of 5 points

A person is using the normal distribution to determine the safety stock for a product. What z value would be associated with a 90 percent service level?

Answer

Selected Answer:  

1.28

Correct Answer:  

1.28