ISDS 3115 FINAL EXAM QUESTIONS WITH VERIFIED
ANSWERS
Which of the following attributes is most typical of a service?
A.
mass production
B.
consistency
C.
easy to automate
D.
production and consumption occur simultaneously
E.
tangible - Answers - production and consumption occur simultaneously
Given the position of the 3D printer in the growth stage of its life cycle, which of the
following OM Strategy/Issues should the makers of 3D printers be least concerned with
at the current time?
A.
increasing capacity
B.
product and process reliability
C.
enhancing distribution
D.
cost cutting
E.
forecasting - Answers - cost cutting
The tracking signal is the:
A.
standard error of the estimate.
B.
MAPE.
C.
absolute deviation of the last period's forecast.
D.
ratio of cumulative error / MAD.
E.
MAD. - Answers - ratio of cumulative error / MAD
Source inspection is inferior to inspection before costly operations.
True
,False - Answers - False
Which of the following is NOT one of the major categories of costs associated with
quality?
A.
appraisal costs
B.
prevention costs
C.
external failure costs
D.
internal failure costs
E.
None of the above; they are all major categories of costs associated with quality. -
Answers - None of the above; they are all major categories of costs associated with
quality.
Pareto charts are used to:
A.
outline production schedules.
B.
identify inspection points in a process.
C.
organize errors, problems, or defects.
D.
show material flow.
E.
show the range of values of a measurement and the frequency with which each value
occurs. - Answers - organize errors, problems, or defects.
Average outgoing quality (AOQ) is determined by the true percentage defective of the
lot, the acceptable quality level, the number of items in the lot, and the number of items
in the sample.
True
False - Answers - False
An assembly line is an example of a:
A.
repetitive process.
B.
line process.
C.
specialized process.
D.
product-focused process.
E.
,process-focused process. - Answers - repetitive process
Which of the following is not one of the strategies for improving service productivity?
A.
self-service
B.
mass customization
C.
scheduling
D.
separation
E.
automation - Answers - mass customization
A disadvantage of the "few suppliers" sourcing strategy is:
A.
the lack of cost savings for customers and suppliers.
B.
possible violations of the Sherman Antitrust Act.
C.
the high cost of changing partners.
D.
the suppliers are less likely to understand the broad objectives of the procuring firm and
the end customer.
E.
the risk of not being ready for technological change - Answers - the high cost of
changing partners
The bullwhip effect refers to the increasing fluctuations in orders that often occur as
orders move through the supply chain.
True
False - Answers - True
Which of the following is an advantage of the postponement technique?
A.
better quality of the product
B.
reduction in automation
C.
early customization of the product
D.
reduction in inventory investment
E.
reduction in training costs - Answers - reduction in inventory investment
Which of the following statements about the basic EOQ model is TRUE?
, A.
If annual demand were to double, the EOQ would increase.
B.
If the carrying cost were to increase, the EOQ would fall.
C.
If annual demand were to double, the number of orders per year would increase.
D.
If the ordering cost were to double, the EOQ would rise.
E.
All of the above statements are true. - Answers - All of the above statements are true.
Which of these statements about the production order quantity model is FALSE?
A.
All else equal, the smaller the ratio of demand rate to production rate, the smaller is the
production order quantity.
B.
Because receipt is noninstantaneous, some units are used immediately and not stored
in inventory.
C.
The production order quantity model is appropriate when the assumptions of the basic
EOQ model are met, except that receipt is noninstantaneous.
D.
Average inventory is more than one-half of the production order quantity.
E.
None of the above is false. - Answers - Average inventory is more than one-half of the
production order quantity
Which of the following is NOT one of the benefits in MRP?
A.
improved utilization of facilities and labor
B.
better response to customer orders as the result of improved adherence to schedules
C.
increased inventory levels
D.
faster response to market changes - Answers - increased inventory levels
Which of the following statements regarding Gantt charts is true?
A.
Gantt charts use the four standard spines of Methods, Materials, Manpower, and
Machinery.
B.
Gantt charts are expensive.
C.
Gantt charts are visual devices that show the duration of activities in a project.
D.
ANSWERS
Which of the following attributes is most typical of a service?
A.
mass production
B.
consistency
C.
easy to automate
D.
production and consumption occur simultaneously
E.
tangible - Answers - production and consumption occur simultaneously
Given the position of the 3D printer in the growth stage of its life cycle, which of the
following OM Strategy/Issues should the makers of 3D printers be least concerned with
at the current time?
A.
increasing capacity
B.
product and process reliability
C.
enhancing distribution
D.
cost cutting
E.
forecasting - Answers - cost cutting
The tracking signal is the:
A.
standard error of the estimate.
B.
MAPE.
C.
absolute deviation of the last period's forecast.
D.
ratio of cumulative error / MAD.
E.
MAD. - Answers - ratio of cumulative error / MAD
Source inspection is inferior to inspection before costly operations.
True
,False - Answers - False
Which of the following is NOT one of the major categories of costs associated with
quality?
A.
appraisal costs
B.
prevention costs
C.
external failure costs
D.
internal failure costs
E.
None of the above; they are all major categories of costs associated with quality. -
Answers - None of the above; they are all major categories of costs associated with
quality.
Pareto charts are used to:
A.
outline production schedules.
B.
identify inspection points in a process.
C.
organize errors, problems, or defects.
D.
show material flow.
E.
show the range of values of a measurement and the frequency with which each value
occurs. - Answers - organize errors, problems, or defects.
Average outgoing quality (AOQ) is determined by the true percentage defective of the
lot, the acceptable quality level, the number of items in the lot, and the number of items
in the sample.
True
False - Answers - False
An assembly line is an example of a:
A.
repetitive process.
B.
line process.
C.
specialized process.
D.
product-focused process.
E.
,process-focused process. - Answers - repetitive process
Which of the following is not one of the strategies for improving service productivity?
A.
self-service
B.
mass customization
C.
scheduling
D.
separation
E.
automation - Answers - mass customization
A disadvantage of the "few suppliers" sourcing strategy is:
A.
the lack of cost savings for customers and suppliers.
B.
possible violations of the Sherman Antitrust Act.
C.
the high cost of changing partners.
D.
the suppliers are less likely to understand the broad objectives of the procuring firm and
the end customer.
E.
the risk of not being ready for technological change - Answers - the high cost of
changing partners
The bullwhip effect refers to the increasing fluctuations in orders that often occur as
orders move through the supply chain.
True
False - Answers - True
Which of the following is an advantage of the postponement technique?
A.
better quality of the product
B.
reduction in automation
C.
early customization of the product
D.
reduction in inventory investment
E.
reduction in training costs - Answers - reduction in inventory investment
Which of the following statements about the basic EOQ model is TRUE?
, A.
If annual demand were to double, the EOQ would increase.
B.
If the carrying cost were to increase, the EOQ would fall.
C.
If annual demand were to double, the number of orders per year would increase.
D.
If the ordering cost were to double, the EOQ would rise.
E.
All of the above statements are true. - Answers - All of the above statements are true.
Which of these statements about the production order quantity model is FALSE?
A.
All else equal, the smaller the ratio of demand rate to production rate, the smaller is the
production order quantity.
B.
Because receipt is noninstantaneous, some units are used immediately and not stored
in inventory.
C.
The production order quantity model is appropriate when the assumptions of the basic
EOQ model are met, except that receipt is noninstantaneous.
D.
Average inventory is more than one-half of the production order quantity.
E.
None of the above is false. - Answers - Average inventory is more than one-half of the
production order quantity
Which of the following is NOT one of the benefits in MRP?
A.
improved utilization of facilities and labor
B.
better response to customer orders as the result of improved adherence to schedules
C.
increased inventory levels
D.
faster response to market changes - Answers - increased inventory levels
Which of the following statements regarding Gantt charts is true?
A.
Gantt charts use the four standard spines of Methods, Materials, Manpower, and
Machinery.
B.
Gantt charts are expensive.
C.
Gantt charts are visual devices that show the duration of activities in a project.
D.
