MGMT 339 Final Exam | California State University Fullerton Management 339: Managing operations Dr. Shadi Goodarzi Chapters 6, 9, 10, 3, 12, 14 | 2024/25

MGMT 339 Final Exam | California State University Fullerton Management 339: Managing operations Dr. Shadi Goodarzi Chapters 6, 9, 10, 3, 12, 1 4 | 2024/25 The theory of constraints methods increase the firm's profits more effectively by focusing on what? making materials flow rapidly through the entire system Of the seven key principles of the theory of constraints, which is the first principal? the focus should be on balancing flow, not on balancing capacity An item that has been built to stock has yet to be sold. Which TOC operational measure is used to describe it in its current state? Inventory A workstation in a process is a bottleneck if it has the highest total time per unit processed. The theory of con straints principles outlined are NOT applicable to what type of processes? TOC is applicable to all of the above processes. TOC is applicable to all of the above processes. Throughput time is defined as the total elapsed time from the start to the finish of a job being processed at one or more work centers. Bottlenecks exist in which type of manufacturing processes? line process, batch process, and job process (all the above) A process consists of steps A, B, and C with capacities of 50 units per hour, 40 units per hour, and 60 units per hour respectively. Which of the following statements is best? There should be a small amount of inventory in front of step B. The traditional method of making product mix decision considers producing the products with the highest contribution margins first. What is the name of the product mix decision method that produces the products with the highest contribution margins and ignores fixed costs? traditional method We have an expert -written solution to this problem! Which of t he following costs is NOT considered an inventory holding (or carrying) cost? inventory transportation costs Which of the following can put pressure on a company to carry small levels of inventory? high cost of capital A form of shrinkage called ________ occurs when inventory cannot be used or sold at full value, owing to model changes, engineering modifications, or unexpectedly low demand. obsolescence Which of the following is NOT considered a pressure to hold large inventories? the cost of insurance Which of the following inventory classifications is one of the four forms that represent how the inventory was created? pipeline inventory Inventory used to absorb uneven rates of demand or supply is referred to as anticipation inventory. Lewis Machine Tools is considering reducing lot size to reduce cycle inventory. Which of the following is a change that should be made for lot size reduction to be effec tive? Increasing repeatability The primary lever to reduce anticipation inventory is to match demand rate with production rate. What is the primary lever to reduce cycle inventory? reduce the lot sizes Matching the demand rate with the production rate is a primary lever to reduce anticipation inventory. Lisa's Card Cache uses ABC analysis. Which of the following statements is NOT true of ABC analysis? ABC analysis allows the company to control inventory shrinkage. An individual item or product that has a n identifying code and is held in inventory somewhere along the supply chain is called a stock -keeping unit. In ABC analysis, class A items typically represent ____ of the SKUs but account for ____ of the dollar usage. 20%; 80% For class C SKUs, why i s much looser inventory control appropriate? The inventory holding cost of class C SKUs tends to be low. The production demand for widgets for a 250-workday year is 7,500 units. Ordering costs are $25.00 per order and holding costs are $9.00 per unit per year. Four days must be allowed between order placement and order receipt. What is the EOQ, assuming known and constant variables? 204 The production demand for widgets for a 250-workday year is 7,500 units. Ordering costs are $25.00 per order and carrying costs are $9.00 per unit per year. Four days must be allowed between order placement and order receipt. What is the number of orders per year, assuming known and constant variables? 37 Which of these statements is NOT required in order for the EOQ model to be a reasonable approach? The setup/ordering cost must exceed the annual holding cost of one unit.