COB 300 Ops Final (Torabi) Exam Questions and
Answers
Capacity Planning Questions - -1) What kind of capacity is needed?
2) How much is needed?
3) When is it needed?
-Design Capacity - -maximum output rate or service capacity an operation, process,
or facility is designed for
-Effective Capacity - -Design Capacity minus allowances such as personal time,
maintenance, and scrap
-Actual Output - -rate of output actually achieved - cannot exceed effective capacity
-Can actual output > effective capacity - -NO
-Process Flow Time Reductions - -1) perform activities in parallel
2) change the sequence of activities
3) reduce interruptions
-A balanced scorecard helps focus manager attention on strategic issues and
strategy implementation (t or f) - -True
-The bullwhip effect suggests that the demand variation of a particular item at the
retailer is usually lower than the demand variation of the same item at the
manufacturer (t or f) - -True
-If customer lead time is less than manufacturing lead time, make to stock
environment may be suitable (t or f) - -True
-In statistical process control, R charts are used for observations that are discrete in
nature (t or f) - -False
-Companies should try and reduce inventory turns so that they can do business with
less amount of inventory and improve operationally (t or f) - -False
-Inventory Turns - -cost of goods sold divided by the average inventory value
-Utilization of a machine can never exceed its efficiency - -False
-The critical path is the path with the most number of activities - -False
-Two-bin systems can be used to implement fixed quantity/variable interval inventory
model - -True
-Effective supply chain management depends both on the flow of information as well
as on the flow of goods - -True
Answers
Capacity Planning Questions - -1) What kind of capacity is needed?
2) How much is needed?
3) When is it needed?
-Design Capacity - -maximum output rate or service capacity an operation, process,
or facility is designed for
-Effective Capacity - -Design Capacity minus allowances such as personal time,
maintenance, and scrap
-Actual Output - -rate of output actually achieved - cannot exceed effective capacity
-Can actual output > effective capacity - -NO
-Process Flow Time Reductions - -1) perform activities in parallel
2) change the sequence of activities
3) reduce interruptions
-A balanced scorecard helps focus manager attention on strategic issues and
strategy implementation (t or f) - -True
-The bullwhip effect suggests that the demand variation of a particular item at the
retailer is usually lower than the demand variation of the same item at the
manufacturer (t or f) - -True
-If customer lead time is less than manufacturing lead time, make to stock
environment may be suitable (t or f) - -True
-In statistical process control, R charts are used for observations that are discrete in
nature (t or f) - -False
-Companies should try and reduce inventory turns so that they can do business with
less amount of inventory and improve operationally (t or f) - -False
-Inventory Turns - -cost of goods sold divided by the average inventory value
-Utilization of a machine can never exceed its efficiency - -False
-The critical path is the path with the most number of activities - -False
-Two-bin systems can be used to implement fixed quantity/variable interval inventory
model - -True
-Effective supply chain management depends both on the flow of information as well
as on the flow of goods - -True
