ISOM 319 EXAM 1 QUESTIONS &
ANSWERS(RATED A+)
Production - ANSWERthe creation of goods and services
Operations Management - ANSWERthe set of activities that create value in the form of
goods and services by transforming inputs into outputs
Essential Functions:
1. Marketing
2. Production/operations
3. Finance/ accounting
Critical Inventory (I0) - ANSWER- inventory level in which a system having no
congestion would achieve maximum flow rate with minimum flow time
System Parameters - ANSWER- Raw Process time (T0)
- Bottleneck rate (R0)
- Critical Inventory (I0)
Performance Measures - ANSWER- Flow time T
- Flow rate R
- Inventory I
Bottleneck Rate (R0) - ANSWER- rate of a process with the highest long term utilization
- its the rate of the slowest workstation
Raw Process Time (T0) - ANSWER- Sum of the long term average process times of
each activity in a process
Flow Time (T) - ANSWER- one average how much time does a typical flow unit spend
within the process boundaries
Little's Law - ANSWER- the fundamental relation between I,T, and R over the long term
Queueing Theory - ANSWER- deals with the analysis of queues where customers wait
to receive a service or WIPs wait to be processed
Utilization Law - ANSWER- if a station increases utilization without making any other
change, average inventory (I) and flow time (T) will increase in a highly nonlinear
fashion
ANSWERS(RATED A+)
Production - ANSWERthe creation of goods and services
Operations Management - ANSWERthe set of activities that create value in the form of
goods and services by transforming inputs into outputs
Essential Functions:
1. Marketing
2. Production/operations
3. Finance/ accounting
Critical Inventory (I0) - ANSWER- inventory level in which a system having no
congestion would achieve maximum flow rate with minimum flow time
System Parameters - ANSWER- Raw Process time (T0)
- Bottleneck rate (R0)
- Critical Inventory (I0)
Performance Measures - ANSWER- Flow time T
- Flow rate R
- Inventory I
Bottleneck Rate (R0) - ANSWER- rate of a process with the highest long term utilization
- its the rate of the slowest workstation
Raw Process Time (T0) - ANSWER- Sum of the long term average process times of
each activity in a process
Flow Time (T) - ANSWER- one average how much time does a typical flow unit spend
within the process boundaries
Little's Law - ANSWER- the fundamental relation between I,T, and R over the long term
Queueing Theory - ANSWER- deals with the analysis of queues where customers wait
to receive a service or WIPs wait to be processed
Utilization Law - ANSWER- if a station increases utilization without making any other
change, average inventory (I) and flow time (T) will increase in a highly nonlinear
fashion
