Course  Operations Management16SP 
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 leadtime is 5 days. If Mark orders 200 units each time he places an order, what would his average inventory be (in units)?
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 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 leadtime 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?
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 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:
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 Question 4
5 out of 5 points
In a JIT system, inventory managers can uncover bottlenecks by introducing or removing which of the following?
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 Question 5
5 out of 5 points
What refers to training and empowering frontline workers to solve a problem immediately?
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 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?
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 Question 7
5 out of 5 points
Arnold Palmer Hospital uses which of the following quality management techniques?
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 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?
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 Question 9
5 out of 5 points
An organization hosting a 5K race is looking to sell tshirts at the event. Demand for tshirts 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 tshirts should the organization stock for the 5K race?
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 Question 10
5 out of 5 points
“Quality Is Free,” meaning that the costs of poor quality have been understated, is the work of:
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 Question 11
5 out of 5 points
Members of quality circles are:
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 Question 12
5 out of 5 points
Total quality management emphasizes:
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 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?
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 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 leadtime is 6 days. There are 250 working days per year. If the reorder point is 50, what safety stock are they using?
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 Question 15
5 out of 5 points
Which of the following statements concerning ABC analysis is false?
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 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?
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 Question 17
5 out of 5 points
The process improvement technique that sorts the vital few from the trivial many is:
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 Question 18
5 out of 5 points
A Six Sigma program has how many defects per million?
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 Question 19
5 out of 5 points
Which of the following is not a typical inspection point?
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 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?
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