Self-Study Quizzes for Final Exam
Self-Study Quiz Week 6 – Inventory
Retail Stores Typically Hold 3 Types of Inventories: Raw Materials, Work-In-Process, and
Finished Goods. FALSE
An Important Function of Inventories in Manufacturing is to Decouple Operations. TRUE
The Two Main Concerns of Inventory Management Relate to the Costs of Ordering and Holding
Inventories and the Level of Customer Service (Item Availability). TRUE
The Principal Objective of Inventory Management is the Maximize Customer Service Levels by
Ensuring Items are Available at All Times. FALSE
A Two-Bin System for Inventory Control Eliminates the Need for Perpetual Inventory Tracking.
TRUE
Inspection of Goods for Quality and Quantity Upon Arrival is Part of Ordering Cost. TRUE
Warehousing Costs, Insurance Costs, and Spoilage Costs are all Associated with Holding Costs.
TRUE
In the A-B-C Classification of Inventory, Items Classified Under the “A” Category Typically
have High Unit Costs, but Low Levels for Annual Dollar Value (ADV). FALSE
The EOQ Approach Minimized the Annual Ordering Cost of Inventory. FALSE
The Average Inventory Level and the Number of Orders Per Year are Inversely Related; As One
Increases, the Other Decreases. TRUE
Using the EOQ Model, the Higher an Item’s Holding Costs, the More Frequently it will be
Ordered. TRUE
The EOQ Should be Regarded as an Approximate Quantity Rather than an Exact Quantity, so
Rounding off the Calculated Value is Acceptable. TRUE
The Reorder Point (ROP) Models Determine the Point at Which the Inventory, in Terms of
Quantity Must be Reordered. TRUE
In the Basic EOQ Model, if D = 60 Per Month, S = $12 and H = $10 Per Unit Per Month, EOQ
Is: 12
Self-Study Quiz Week 8 - Job Scheduling
Scheduling Work Centre Loading Must be Completed before Starting Materials Requirement
Planning (MRP). FALSE
For the Jobs Listed Below, which Processing Sequence would Result Using Johnson’s Rule?
Processing Time (Hrs).
C-A-B-D
Loading Refers to the Assignment of Jobs to Work Centres. TRUE
A Gantt Chart is a Specialized Scheduling Tool Specifically for Planning Construction Projects.
FALSE
Sequencing is Concerned with the Order in Which Jobs are Processed, while Loading is
Concerned with Assigning Jobs to Work Centres or Workstations. TRUE
All Priority Rules are Designed to Ensure that the Most Urgent Jobs (Earliest Due Date) are
Scheduled First. FALSE
Priority Rules Generally Assume that a Job’s Setup Time is Independent of the Sequence of
Processing Jobs. TRUE
Make-Span is the Total Time Needed to Complete a Group of Jobs. TRUE
The Shortest Processing Time (SPT) Rule Minimizes Downstream Idle Time. TRUE
Johnson’s Rule is a Technique used to Sequence Jobs through a Two-Step Work Sequence.
TRUE
Jack, the owner of Jack’s Electronic Repair, currently has Five Jobs to be Scheduled, Shown in
Order in which they Arrived.
If Jack uses the Shortest Processing Time First (SPT) Priority Rule to Schedule these Jobs, What
will be the Average Job Lateness? 2 HRS
The Operations Manager of a Body and Paint Shop has 5 Cars to Schedule for Repair. He would
like to Minimize the Make-Span to Complete All Work on these Cars. Each Car Requires Body
Work Prior to Painting. The Estimates of the Times Required to do the Work at Each of the Two
Stations are as Follows:
Using Johnson’s Rule where in the Optimum Sequence should Car E be Scheduled? FIRST
What is the Make-Span for the Optimal Schedule? 28 HRS
Self-Study Quiz Week 9 – Quality Management
Broadly defined, Quality refers to the Ability of a Product or Service to consistently Meet or
Exceed Customer Expectations. TRUE
Performance and Special Features are BOTH considered to be Dimensions of Product Quality.
TRUE
Various Dimensions of Quality are required to reflect Various Connotations of Quality that
Customers Value in Products and Services. TRUE
One of the Primary Determinants of Product Quality includes the Translation of Product
Characteristics into Process Design. TRUE
Responsiveness is a Dimension of Quality that only Applies to Services, Not Products. TRUE
Quality is Primarily Determined by Product Design, while Process Design and Conformance to
Design Specifications are Secondary, Less Significant Determinants of Quality. FALSE
Quality Control and Quality Assurance are Equivalent Approaches to Managing Quality. FALSE
The Cost of Quality includes Appraisal Costs, Failure Costs, and Prevention Costs. TRUE
Cost of Inspectors, Testing, Test Equipment, and Labs are Examples of Appraisal Costs. TRUE
The ISO 9001 is a Quality Standard developed by the Standards Council of Canada specifically
for Canadian Companies. FALSE
TQM Expands the Traditional View of Quality which is looking ONLY at the Quality of the
Final Product or Service to Looking at Every Aspect of an Organization that Affects Quality and
Customer Satisfaction. TRUE
The Basic Steps in the PDSA Cycle do NOT Include: Delegate
Pareto Charts, Cause-and-Effect Diagrams and Design of Experiments are used in which step of
the Problem-Solving Process for Quality Improvement: Problem Analysis
A Chart showing the Number of Occurrences by Category would be used in: A Pareto Analysis
Cause-and-Effect Diagrams are sometimes called: Ishikawa Diagrams and or Fishbone Diagrams
Which of the Following are Key Elements of Deming’s Beliefs? The Need to Reduce Variation
in Output
Self-Study Quiz Week 10 – Product Design
Phased Reviews of New Product Projects are Intended to Delay Changes Until Close to the
Launch of New Products so all Changes Needed can be Dealt with at the Same Time. FALSE
Core Teams are Teams of Operations Personnel that are Empowered to Plan and Lead Product
Development Projects. FALSE
Production Process Design Involves Translating the “Voice of the Customer” Into Technical
Product or Service Specifications. TRUE
Designing Production Processes Includes Building Prototypes of Processes and Revising the
Process if Necessary. TRUE
The Process of Dismantling and Inspecting a Competitor’s Product to Discover Opportunities for
Product Improvement is Called “Reverse Engineering”. TRUE
Modular Design is a Form of Standardization. TRUE
Design for Environment (DFE) Stipulates Product Packaging Should be Biodegradable Rather
than Re-Used. FALSE
“Concurrent Engineering” Refers to Having Newly Trained Engineers Involved in Product
Design. FALSE
Design for Assembly means Focusing on Reducing the Number of Parts in a Product and the
Methods for Putting it Together. TRUE
All Products Exhibit a Life Cycle. FALSE
In the Area of Product and Service Design the Acronym CAD Refers to is Computer Aided
Design.
Self-Study Quiz Week 11 – Demand Forecasting
Forecasting Techniques generally assume that the Same Casual System that Existed in the Past
will Continue to Exist in the Future. TRUE
The Purpose of the Forecast should be Established First so that the Level of Detail, Amount of
Resources, and Accuracy Level can be Indicated. TRUE
Time Series Techniques Involve Identification of Explanatory Variables that can be used to
Predict Future Demand. FALSE
The Delphi Approach Involves the Use of a Series of Questionnaires to Achieve a Consensus
Forecast. TRUE
Forecasts based on Time Series (Historical) Data are Referred to as Associative Forecasts.
FALSE
The Naïve Forecast is Limited in its Application to Series that Reflect no Trend or Seasonality.
FALSE
In Order to Update a Moving Average Forecast, the Values of Each Data Point in the Average
must be Known. TRUE
An Advantage of a Weighted Moving Average is that More Recent Experience is given more
Weight than Less Recent Experience. TRUE
One Reason for Using the Delphi Method in Forecasting is: Responses are Anonymous
Given the Data below, Develop a Forecast for the Following Period using a Three-Period
Weighted Moving Average and Weights of .5, .3, and .2.
For the Data Given Below, if the Time Series was Assumed to be Stable, what would the Naïve
Forecast be for the Next Period? 61
Moving Average Forecasting Techniques: Smooth Variations in the Time Series
Given Forecasting Errors of 5, 0, -4, and 3, what is the Mean Absolute Deviation (MAD)?
12/4 = 3
Assignment 7
If a system is composed of two parts which must both operate, and each has a probability of .7 of
operating, it is more likely than not that the system will fail. TRUE