Operations and Supply Chain Management - C720 – WGU exam 21 questions and answers

A quality improvement team is trying to illustrate to upper management how a process is varying over time as measurements are collected. Which two statistical process control (SPC) tools should the team use? Cause-and-effect diagrams Scatter diagrams Histograms Run charts Check sheets Pareto charts Control charts Answer: Run charts Control charts Which aspect of quality is demonstrated by a vehicle that has a useful life of 165,000 miles? Performance Reliability Features Serviceability Answer: Reliability A company makes rulers that are designed to be 20 cm in length with allowance ±0.1 cm. If the actual length of a ruler is 20.2 cm, which factor will the company use to judge the quality of the length of the rulers? Performance Features Conformance Serviceability Aesthetics Answer: Conformance Which quality management philosophy assigns cost to quality, defines quality by how well a product can be used for its intended purpose, and uses Pareto charts? Deming's 14 points for management Juran Institute's management theory Taguchi methods Shewhart cycle Crosby's "Quality Is Free" Answer: Juran Institute's management theory A clothing retailer sends out evaluations to customers to rate quality as "outstanding," "good," "average," and "bad." If the retailer wants to know the annual frequency of each evaluation category, which tool should the retailer use? Pareto chart Control chart Scatter plot Histogram Answer: Histogram A rental company has a fleet of 50 cars that can be rented daily if all vehicles have been washed and inspected and are free of mechanical and electrical defects. Due to maintenance requirements and late returns by customers, the rental company is, in general, able to prepare 45 cars per day for rental. On average, 30 cars are rented daily. What is the efficiency rate for this company? 30% 40% 60% 67% Answer: 67% An auto service center that specializes in oil changes has two service bays that serve, on average, a total of 24 cars per eight-hour business day. On average, each bay can finish one oil change in 30 minutes. What is the design capacity? 24 oil changes 30 oil changes 32 oil changes 48 oil changes Answer: 32 Oil Changes An appliance manufacturer has two factories located around the world, each with its own capacity:• F1 can make 8 appliances per day.• F2 can make 10 per day. The factories can deliver to two different distribution centers. Every day each distribution center must receive 9 appliances each. The cost to deliver appliances from each factory to each distribution center is listed in the table below: Distribution Center 1 Distribution Center 2 F1 $4 F1 $3 F2 $8 F2 $3 Using the factory production constraints and the delivery costs in the above matrix, what is the lowest cost to deliver all 18 appliances to the distribution centers? $3 $67 $81 $98 $114 Answer: $67 A computer company receives an order for 100 computers from a customer inside of its lead time. The production planner agrees to support the order. Which two outputs will the MRP system issue? Choose 2 answers Planned order receipts Expedite notice Shipping confirmation Master schedule quantity Answer: Planned order receipts Expedite notice The sales department for a company is having their sales representatives meet with customers to develop a sales plan for the coming year. The sales plan details prior year sales, current year sales, and year-to-year sales growth. Each customer can estimate how many products they plan to buy from the sales representatives the following year. Each customer signs the sales plan, and the sales representatives forward it to their sales managers. The sales managers then tally up the estimated sales and forward the totals on to the vice president of sales. The vice president then announces what the predicted sales for the company will be for the coming year. What was used to predict sales for the coming year? Exponential smoothing Simple moving average A panel of experts The buildup method Answer: The buildup method A company has developed a new product that links a smartphone app to a doorbell and home security monitoring system. There is nothing else like it on the market and no prior sales history from which to develop a forecast. A sales manager is trying to determine the best price point for introduction, while also trying to estimate what first-year sales volumes might be. What are two possible means for determining the price point and first-year sales forecast? Choose 2 answers Exponential smoothing Panel of experts Test market Buildup method Answer: Panel of experts Test market What is the time horizon for medium-range forecasting? 3 to 4 months 6 to 18 months 3 to 5 years 7 to 9 years Answer: 6 to 18 months A company has a repetitive manufacturing situation where the master schedule does not vary from day to day and is level loaded. Under these circumstances, which manufacturing system should be employed? Just-in-time Material requirements planning Enterprise resource planning Batch processing Answer: Just-in-time What type of supply chain structure focuses on getting products quickly to market? Efficient supply chain structure Lean supply chain structure Agile supply chain structure Effective supply chain structure Answer: Agile supply chain structure