Operations and Supply Chain Management The Core 5th Edition By F. Robert Jacobs - Test Bank Instant Download - Complete Test Bank With Answers Sample Questions Are Posted Below Operations and Supply Chain Management: The Core, 5e (Jacobs) Chapter 6 Manufacturing Processes 1) Process selection refers to the strategic decision …
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Operations and Supply Chain Management: The Core, 5e (Jacobs)
Chapter 6 Manufacturing Processes
1) Process selection refers to the strategic decision of choosing the volume of output to produce in a manufacturing facility depending upon the way that facility produces.
Answer: FALSE
Explanation: Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service.
Difficulty: 1 Easy
Topic: How Production Processes Are Organized
Learning Objective: 06-03 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
2) Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service.
Answer: TRUE
Explanation: Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service.
Difficulty: 1 Easy
Topic: How Production Processes Are Organized
Learning Objective: 06-03 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
3) A continuous process indicates production of discrete parts moving from workstation to workstation at a controlled rate.
Answer: FALSE
Explanation: A continuous process is similar to an assembly line in that production follows a predetermined sequence of steps, but the flow is continuous such as with liquids, rather than discrete.
Difficulty: 2 Medium
Topic: How Production Processes Are Organized
Learning Objective: 06-03 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
4) One difference between an assembly line process flow and a continuous process flow is that on the assembly line the flow is discrete rather than continuous.
Answer: TRUE
Explanation: A continuous process is similar to an assembly line in that production follows a predetermined sequence of steps, but the flow is continuous such as with liquids, rather than discrete.
Difficulty: 1 Easy
Topic: How Production Processes Are Organized
Learning Objective: 06-03 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
5) One trade-off illustrated by the product-process matrix is between flexibility and cost.
Answer: TRUE
Explanation: To produce nonstandard products at relatively low volumes, workcenters (flexible) should be used. A highly standardized product (low-cost commodity) produced at high volumes should be produced using an assembly line or a continuous process
Difficulty: 1 Easy
Topic: How Production Processes Are Organized
Learning Objective: 06-03 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
6) The volume requirements for the product are one determinant of the choice of which process structure to select.
Answer: TRUE
Explanation: Two dimensions (of the product/process matrix,
C = ) are shown. The first dimension relates to the volume of a particular product or group of standardized products. Standardization is shown on the vertical axis and refers to variations in the product that is produced. These variations are measured in terms of geometric differences, material differences, and so on. Standardized products are highly similar from a manufacturing processing point of view, whereas low standardized products require different processes.
Difficulty: 1 Easy
Topic: How Production Processes Are Organized
Learning Objective: 06-03 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
7) The product-process matrix shows the relationship between process structures and product volume and variety characteristics.
Answer: TRUE
Explanation: C = , Product–Process Matrix: Framework Describing Layout Strategies
Difficulty: 1 Easy
Topic: How Production Processes Are Organized
Learning Objective: 06-03 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
8) The term “assembly line” refers to progressive assembly linked by some material handling device.
Answer: TRUE
Explanation: An assembly line is a layout design for the special purpose of building a product by going through a progressive set of steps. The assembly steps are done in areas referred to as “stations,” and typically the stations are linked by some form of material handling device.
Difficulty: 1 Easy
Topic: Designing a Production System
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
9) Work center layouts allocate dissimilar machines into cells to work on products that have dissimilar processing requirements.
Answer: FALSE
Explanation: A work center layout, sometimes referred to as a job shop, is where similar equipment or functions are grouped together.
Difficulty: 1 Easy
Topic: How Production Processes Are Organized
Learning Objective: 06-03 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
10) A project layout is characterized by a relatively low number of units produced in comparison with process and product layout formats.
Answer: TRUE
Explanation: C = , Product–Process Matrix: Framework Describing Layout Strategies.
Difficulty: 1 Easy
Topic: How Production Processes Are Organized
Learning Objective: 06-03 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
11) A project layout is characterized by a high degree of task ordering.
Answer: TRUE
Explanation: In a project layout, a high degree of task ordering is common.
Difficulty: 1 Easy
Topic: Designing a Production System
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
12) The closer the customer is to the customer order decoupling point the longer it takes the customer to receive the product.
Answer: FALSE
Explanation: Selection of decoupling points is a strategic decision that determines customer lead times and can greatly impact inventory investment. The closer this point is to the customer, the quicker the customer can be served.
Difficulty: 1 Easy
Topic: Production Processes
Learning Objective: 06-01 Understand what a manufacturing process is.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
13) The closer the customer is to the customer order decoupling point the more quickly the customer receives the product.
Answer: TRUE
Explanation: Selection of decoupling points is a strategic decision that determines customer lead times and can greatly impact inventory investment. The closer this point is to the customer, the quicker the customer can be served.
Difficulty: 1 Easy
Topic: Production Processes
Learning Objective: 06-01 Understand what a manufacturing process is.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
14) Engineer-to-order firms will work with the customer to design the product, and then make it from purchased materials, parts, and components.
Answer: TRUE
Explanation: An engineer-to-order firm will work with the customer to design the product, and then make it from purchased materials, parts, and components.
Difficulty: 1 Easy
Topic: Production Processes
Learning Objective: 06-01 Understand what a manufacturing process is.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
15) A make-to-order firm will work with the customer to design the product, and then make it from purchased materials, parts, and components.
Answer: FALSE
Explanation: Firms that make the customer’s product from raw materials, parts, and components are make-to-order firms.
Difficulty: 1 Easy
Topic: Production Processes
Learning Objective: 06-01 Understand what a manufacturing process is.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
16) The time needed to respond to a customer’s order is called the customer response time.
Answer: FALSE
Explanation: The time needed to respond to a customer order is called the lead time
Difficulty: 1 Easy
Topic: Production Processes
Learning Objective: 06-01 Understand what a manufacturing process is.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
17) The focus in the make-to-stock environment is on providing finished goods where and when the customers want them.
Answer: TRUE
Explanation: The focus in the make-to-stock environment is on providing finished goods where and when the customers want them.
Difficulty: 1 Easy
Topic: Production Processes
Learning Objective: 06-01 Understand what a manufacturing process is.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
18) An example of an assemble-to-order firm is Dell Computer.
Answer: TRUE
Explanation: In the assemble-to-order environment, a primary task is to define a customer’s order in terms of alternative components and options since it is these components that are carried in inventory. A good example is the way Dell Computer makes desktop computers
Difficulty: 1 Easy
Topic: Production Processes
Learning Objective: 06-01 Understand what a manufacturing process is.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
19) The essential issue in satisfying customers in the make-to-stock environment is to balance the level of finished inventory against the level of service to the customer.
Answer: TRUE
Explanation: The essential issue in satisfying customers in the make-to-stock environment is to balance the level of finished inventory against the level of service to the customer.
Difficulty: 1 Easy
Topic: Production Processes
Learning Objective: 06-01 Understand what a manufacturing process is.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
20) The essential issue in satisfying customers in the make-to-stock environment is to balance the cost of the finished item against the willingness of the consumer to pay for it.
Answer: FALSE
Explanation: The essential issue in satisfying customers in the make-to-stock environment is to balance the level of finished inventory against the level of service to the customer.
Difficulty: 1 Easy
Topic: Production Processes
Learning Objective: 06-01 Understand what a manufacturing process is.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
21) Assembling-to-order means moving the customer order decoupling point from finished goods to components.
Answer: TRUE
Explanation: Assembling-to-order derives significant advantages from moving the customer order decoupling point from finished goods to components.
Difficulty: 1 Easy
Topic: Production Processes
Learning Objective: 06-01 Understand what a manufacturing process is.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
22) A high-level map or diagram of a supply chain process can be useful to understand how material flows and where inventory is held.
Answer: TRUE
Explanation: A high-level map of a supply chain process can be useful to understand how material flows and where inventory is held.
Difficulty: 1 Easy
Topic: Production Processes
Learning Objective: 06-02 Understand production process mapping and Littles law.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
23) Little’s law can be thought of as a relationship between units and time.
Answer: TRUE
Explanation: We can think of Little’s law as a relationship between units and time.
Difficulty: 1 Easy
Topic: Production Processes
Learning Objective: 06-02 Understand production process mapping and Littles law.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
24) Little’s law states that supply chain processes can be regarded as unrelated and thus treated and analyzed separately.
Answer: FALSE
Explanation: We can think of Little’s law as a relationship between units and time.
Difficulty: 1 Easy
Topic: Production Processes
Learning Objective: 06-02 Understand production process mapping and Littles law.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
25) A process map shows the physical location of the various processes within a supply chain.
Answer: FALSE
Explanation: Inventory = Throughput Rate × Flow Time, Make-to-Stock Process Map.
Difficulty: 1 Easy
Topic: Production Processes
Learning Objective: 06-02 Understand production process mapping and Littles law.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
26) Workstation cycle time is the time between successive units coming off the end of the assembly line.
Answer: TRUE
Explanation: Workstation cycle time is the time between successive units coming off the end of an assembly line.
Difficulty: 1 Easy
Topic: Assembly Line Design
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
27) The assembly-line balancing procedure determines the precedence relationships of manufacturing tasks.
Answer: FALSE
Explanation: The assembly-line balancing problem is one of assigning all tasks to a series of workstations so that each workstation has no more than can be done in the workstation cycle time, and so that the unassigned (that is, idle) time across all workstations is minimized. The problem is complicated by the relationships among tasks imposed by product design and process technologies. This is called the precedence relationship, which specifies the order in which tasks must be performed in the assembly process.
Difficulty: 2 Medium
Topic: Assembly Line Design
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
28) In assembly-line balancing the theoretical minimum number of workstations is found by a ratio of the sum of all task times divided by the cycle time.
Answer: TRUE
Explanation: Theoretical minimum number of workstations = Sum of all task times / Cycle time
Difficulty: 1 Easy
Topic: Assembly Line Design
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
29) The efficiency of an assembly-line is found by a ratio of the sum of all task times divided by the cycle time.
Answer: FALSE
Explanation: Efficiency = Sum of task times / No. of workstations X Cycle time.
Difficulty: 1 Easy
Topic: Assembly Line Design
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
30) For the purposes of assembly-line balancing, the required workstation cycle time is found by dividing production time per day by the required units of output per day.
Answer: TRUE
Explanation: Workstation cycle time = (Production time per day/Required output per day in units)
Difficulty: 1 Easy
Topic: Assembly Line Design
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
31) In balancing an assembly line, workstation cycle time has to be less than the time between successive units coming off the end of the line.
Answer: FALSE
Explanation: Workstation cycle time is defined as the time between successive units coming off the end of an assembly line.
Difficulty: 2 Medium
Topic: Assembly Line Design
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
32) If the sum of the task times required to produce a product is 45 minutes and the cycle time for the same product is 10 minutes. Thus, the theoretical minimum number of workstations is 5 using the assembly-line balancing procedure.
Answer: TRUE
Explanation: Nt = : 45 minutes / 10 minutes = 4.5, round up to 5.
Difficulty: 2 Medium
Topic: Assembly Line Design
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Analyze
AACSB: Analytic
Accessibility: Keyboard Navigation
33) The first step in balancing an assembly line is to specify the precedence relationships among tasks to be performed on the line.
Answer: TRUE
Explanation: The steps in balancing an assembly line are straightforward: 1. Specify the sequential relationships among tasks using a precedence diagram.
Difficulty: 1 Easy
Topic: Assembly Line Design
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
34) The term “assembly line” refers to progressive assembly linked by some material handling device.
Answer: TRUE
Explanation: An assembly line is a layout design for the special purpose of building a product by going through a progressive set of steps. The assembly steps are done in areas referred to as “stations,” and typically the stations are linked by some form of material handling device.
Difficulty: 1 Easy
Topic: Designing a Production System
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
35) If the sum of the task times required to produce a product is 80 minutes and the cycle time for the same product is 15 minutes, the theoretical minimum number of workstations is 8 using the assembly-line balancing procedure.
Answer: FALSE
Explanation: Nt = : 80 minutes / 15 minutes = 5.3, round up to 6.
Difficulty: 2 Medium
Topic: Assembly Line Design
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
36) In designing a production layout a flexible line layout might have the shape of a “U”.
Answer: TRUE
Explanation: Assembly-line balances frequently result in unequal workstation times. Flexible line layouts are a common way of dealing with this problem. A U-shaped line with work-sharing could help resolve the imbalance.
Difficulty: 1 Easy
Topic: Assembly Line Design
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
37) Using the assembly-line balancing procedure, which of the following is the required cycle time in minutes per unit if the daily production time is 480 minutes and the required daily output is 50 units?
Answer: C
Explanation: C = , 480 minutes / 50 units
= 9.6 minutes per unit.
Difficulty: 1 Easy
Topic: Assembly Line Design
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Analyze
AACSB: Analytic
Accessibility: Keyboard Navigation
38) Using the assembly-line balancing procedure, which of the following is the required cycle time if the production time in minutes per day is 1,440 and the required output per day in units is 2,000?
Answer: A
Explanation: C = , 1,440 minutes / 2,000 units
= 0.72 minutes per unit.
Difficulty: 1 Easy
Topic: Assembly Line Design
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Analyze
AACSB: Analytic
Accessibility: Keyboard Navigation
39) Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the six tasks that make up the job are 4, 6, 7, 2, 6, and 5 minutes, and the cycle time is 10 minutes?
Answer: A
Explanation: Nt = , (4 + 6 + 7 + 2 + 6 + 5) / 10 = 3.
Difficulty: 1 Easy
Topic: Assembly Line Design
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Analyze
AACSB: Analytic
Accessibility: Keyboard Navigation
40) Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the eight tasks that make up the job are 7, 4, 7, 8, 9, 4, 3, and 6 minutes, and the cycle time is 8 minutes?
Answer: C
Difficulty: 1 Easy
Topic: Assembly Line Design
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Analyze
AACSB: Analytic
Accessibility: Keyboard Navigation
41) You have just determined the actual number of workstations that will be used on an assembly line to be 6 using the assembly-line balancing procedure. The cycle time of the line is 5 minutes and the sum of all that tasks required on the line is 25 minutes. Which of the following is the correct value for the resulting line’s efficiency?
Answer: B
Explanation: Efficiency = , [25 / (6 × 5)] = 0.833.
Difficulty: 2 Medium
Topic: Assembly Line Design
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Analyze
AACSB: Analytic
Accessibility: Keyboard Navigation
42) You have just determined the actual number of workstations that will be used on an assembly line to be 8 using the assembly-line balancing procedure. The cycle time of the line is 10 minutes and the sum of all that tasks required on the line is 60 minutes. Which of the following is the correct value for the resulting line’s efficiency?
Answer: C
Explanation: Efficiency = , [60 / (8 × 10)] = 0.750.
Difficulty: 2 Medium
Topic: Assembly Line Design
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Analyze
AACSB: Analytic
Accessibility: Keyboard Navigation
43) When balancing an assembly line, which of the following is not a way to reduce the longest task time below the required workstation cycle time?
Answer: D
Difficulty: 2 Medium
Topic: Assembly Line Design
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
44) Which of the following is not a step in developing a manufacturing cell layout?
Answer: D
Difficulty: 1 Easy
Topic: Cells
Learning Objective: 06-04 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
45) Which of the following is not considered a major work flow structure?
Answer: D
Explanation: The formats by which a facility is arranged are defined by the general pattern of work flow; there are five basic structures (project, workcenter, manufacturing cell, assembly line, and continuous process).
Difficulty: 1 Easy
Topic: How Production Processes Are Organized
Learning Objective: 06-03 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
46) A difference between project and continuous flow categories of process flow structures is which two of the following?
Answer: A
Explanation: In a project layout, the product (by virtue of its bulk or weight) remains in a fixed location. Continuous processes are usually highly automated and, in effect, constitute one integrated machine.
Difficulty: 2 Medium
Topic: How Production Processes Are Organized
Learning Objective: 06-03 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
47) Which of the following is a basic type of process structure?
Answer: D
Explanation: The formats by which a facility is arranged are defined by the general pattern of work flow; there are five basic structures (project, workcenter, manufacturing cell, assembly line, and continuous process).
Difficulty: 2 Medium
Topic: How Production Processes Are Organized
Learning Objective: 06-03 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
48) Which of the following is not a basic type of process structure?
Answer: A
Explanation: The formats by which a facility is arranged are defined by the general pattern of work flow; there are five basic structures (project, workcenter, manufacturing cell, assembly line, and continuous process).
Difficulty: 1 Easy
Topic: How Production Processes Are Organized
Learning Objective: 06-03 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
49) Which of the following basic types of process structures is one which equipment or work processes are arranged according to the progressive steps by which the product is made?
Answer: D
Explanation: An assembly line is where work processes are arranged according to the progressive steps by which the product is made.
Difficulty: 1 Easy
Topic: How Production Processes Are Organized
Learning Objective: 06-03 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
50) Which of the following basic types of process structures is one which similar equipment or functions are grouped together?
Answer: B
Explanation: A workcenter layout is where similar equipment or functions are grouped together.
Difficulty: 1 Easy
Topic: How Production Processes Are Organized
Learning Objective: 06-03 Explain how manufacturing processes are organized.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
51) The placement of which of the following is not determined by production process organization decisions?
Answer: E
Explanation: Emergency exits are determined by safety concerns, not by production process organization decisions.
Difficulty: 2 Medium
Topic: How Production Processes Are Organized
Learning Objective: 06-03 Explain how manufacturing processes are organized.
Bloom’s: Create
AACSB: Analytic
Accessibility: Keyboard Navigation
52) According to Little’s Law, which of the following ratios is used to find throughput rate?
Answer: D
Explanation: Simple systems can be analyzed quickly using a principle known as Little’s law. Little’s law says there is a long-term relationship between the inventory, throughput, and flow time of a production system in steady state. The relationship is: Inventory = Throughput rate × Flow time. Thus, Throughout Rate = Inventory/Flow Time.
Difficulty: 3 Hard
Topic: Production Processes
Learning Objective: 06-02 Understand production process mapping and Littles law.
Bloom’s: Analyze
AACSB: Analytic
Accessibility: Keyboard Navigation
53) According to Little’s Law, which of the following can be used to estimate work-in-process inventory?
Answer: B
Explanation: Simple systems can be analyzed quickly using a principle known as Little’s law. Little’s law says there is a long-term relationship between the inventory, throughput, and flow time of a production system in steady state. The relationship is: Inventory = Throughput rate × Flow time.
Difficulty: 3 Hard
Topic: Production Processes
Learning Objective: 06-02 Understand production process mapping and Littles law.
Bloom’s: Analyze
AACSB: Analytic
Accessibility: Keyboard Navigation
54) A firm fills its customer’s orders from finished goods inventory. It is a:
Answer: C
Explanation: Firms that serve customers from finished goods inventory are known as make-to-stock firms.
Difficulty: 1 Easy
Topic: Production Processes
Learning Objective: 06-02 Understand production process mapping and Littles law.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
55) A firm will work with a customer to design the product, and then make it from purchased materials, parts, and components. This firm is called:
Answer: B
Explanation: An engineer-to-order firm will work with the customer to design the product, and then make it from purchased materials, parts, and components.
Difficulty: 1 Easy
Topic: Production Processes
Learning Objective: 06-02 Understand production process mapping and Littles law.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
56) Which of these expressions is Little’s Law?
Answer: E
Difficulty: 1 Easy
Topic: Production Processes
Learning Objective: 06-02 Understand production process mapping and Littles law.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
57) Regarding the measures of inventory managing efficiency, identify the most appropriate answer. (Select all that apply.)
Answer: C, D
Explanation: Both days of supply is the inverse of inventory turns × 365 and inventory turn is the annual cost of goods sold divided by average inventory.
Both days of supply is the inverse of inventory turns × 365 and inventory turn is the annual cost of goods sold divided by average inventory.
Difficulty: 2 Medium
Topic: Production Processes
Learning Objective: 06-01 Understand what a manufacturing process is.; 06-02 Understand production process mapping and Littles law.
Bloom’s: Remember
AACSB: Reflexive Thinking
Accessibility: Keyboard Navigation
58) In studying positioning of inventory in supply chains, which, if any, of the following is most appropriate? (Select all that apply.)
Answer: A, B
Explanation: As order decoupling point moves towards source, inventory investment goes down and customer lead time gets longer.
Follows from, Total Number of combinations = N1 × N2 × ……× Nn.
As order decoupling point moves towards source, inventory investment goes down and customer lead time gets longer.
Follows from, Total Number of combinations = N1 × N2 × ……× Nn.
Difficulty: 2 Medium
Topic: Production Processes
Learning Objective: 06-01 Understand what a manufacturing process is.
Bloom’s: Create
AACSB: Analytic
Accessibility: Keyboard Navigation
59) In studying product-process matrix describing layout strategies, which of the following is most appropriate? (Select all that apply.)
Answer: A
Explanation: Follows from C =
Difficulty: 2 Medium
Topic: Production Processes
Learning Objective: 06-01 Understand what a manufacturing process is.
Bloom’s: Create
AACSB: Analytic
Accessibility: Keyboard Navigation
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
