Question 1

Which of the following situations would present a challenge for a just-in-time (JIT)investment system?
A)increase in the number of suppliers
B)long-term relationships with suppliers
C)vendor managed inventory
D)sudden increase in demand

Accepted Answer

A sudden increase in demand would disrupt the JIT system as it is based on maintaining inventory levels at the minimum required for production. If demand suddenly increases, the inventory would not be sufficient to meet the sudden increase in demand, leading to delays and disruptions in the production process. The other options would not present a significant challenge to a JIT system. An increase in the number of suppliers and long-term relationships with suppliers could facilitate the JIT system by ensuring a reliable supply chain. Vendor-managed inventory is a system where suppliers manage inventory levels, which could also streamline the JIT process.

Question 2

Implementing a production plan involves all of the following steps EXCEPT ________.
A)creating a feasible budget
B)controlling inventory
C)selecting the best suppliers for materials
D)deciding whether to make,buy,or lease components

Accepted Answer

Creating a feasible budget is a part of the planning and financial forecasting process, not specifically a step in implementing a production plan. Implementing a production plan typically involves operational decisions such as controlling inventory, selecting suppliers, and deciding on the make-or-buy aspect for components.

Question 3

Banks most likely utilize a ________ layout.
A)product
B)fixed-position
C)process
D)customer-oriented

Accepted Answer

The answer of Banks most likely utilize a ________ layout.
A)product
B)fixed-position
C)process
D)customer-oriented...

Question 4

The critical path in a PERT chart represents the ________.
A)sequence of operations that involves outside suppliers
B)sequence of operations that requires the longest time for completion
C)areas of operations that require the least amount of technical support
D)areas of operations that have abundant and extra time

Accepted Answer

The critical path in a PERT chart represents the sequence of operations that requires the longest time for completion. It is the path that must be completed on time in order for the entire project to be completed on schedule.

Question 5

The suppler for Omega Corporation has offered the company a 5 percent discount if it will order more units less frequently.If Omega accepts the supplier's offer,the cost of carrying inventory will ________ and the cost of running out of inventory will ________.
A)rise;stay the same
B)fall;fall
C)rise;fall
D)fall;stay the same

Accepted Answer

Ordering more units less frequently will result in a higher inventory level, which will increase the cost of carrying inventory. However, the 5 percent discount will reduce the unit cost, which will decrease the cost of running out of inventory. Overall, the cost of carrying inventory will rise and the cost of running out of inventory will fall.

Question 6

Part of Vicky's job as a production supervisor is to instruct each department on what work to do and the time in which they have to complete their work assignments.This part of her job is known as ________.
A)routing
B)dispatching
C)scheduling
D)planning

Accepted Answer

The answer of Part of Vicky's job as a production...

Question 7

How can a firm best protect itself against an interruption in the supply of parts?
A)Select suppliers through a competitive bidding process.
B)Use suppliers from the city where the firm is located.
C)Maintain more than one supply source.
D)Transport the parts using the firm's transportation vehicles.

Accepted Answer

Maintaining more than one supply source is the best way to protect a firm against an interruption in the supply of parts. This provides the firm with an alternative supply source in case one of the suppliers is unable to deliver the required parts due to unforeseen circumstances. This reduces the risk of production delays or shutdowns. Selecting suppliers through a competitive bidding process and using suppliers from the city where the firm is located can also be beneficial, but they do not necessarily provide protection against supply interruptions. Transporting parts using the firm's transportation vehicles is not always feasible or cost-effective, especially for large or specialized parts.

Question 8

________ is the phase of production control that determines the sequence of work and specifies where and by whom each aspect of production will be performed.
A)Follow-up
B)Routing
C)Scheduling
D)Dispatching

Accepted Answer

Routing is the phase of production control that determines the sequence of work and specifies where and by whom each aspect of production will be performed. Follow-up is the phase of production control that ensures the production is proceeding according to plans, while scheduling is the phase of production control that establishes the timeframes for production activities. Dispatching is the phase of production control that releases orders for production.

Question 9

When Best Buy vendors ship merchandise directly to stores instead of distribution centers,the company is utilizing ________.
A)perpetual inventory
B)inventory control
C)production control
D)vendor-managed inventory

Accepted Answer

When vendors ship merchandise directly to stores, they are essentially managing the inventory for Best Buy. This is known as vendor-managed inventory.

Question 10

A Gantt chart is associated with which step in production control?
A)routing
B)scheduling
C)dispatching
D)follow-up

Accepted Answer

A Gantt chart is primarily used for scheduling, which is the process of determining when and where each task in the production process will be performed. The Gantt chart is a visual tool that allows for a clear and concise representation of the production schedule, making it easier for managers to track progress, anticipate delays, and adjust timelines as needed. While routing, dispatching, and follow-up are all important elements of production control, they are less closely tied to the use of a Gantt chart.

Question 11

Which of the following layouts would be appropriate for a manufacturer who needs to produce large numbers of a single product?
A)product layout
B)process layout
C)fixed-position layout
D)customer-oriented layout

Accepted Answer

A product layout is designed for mass production of a single type of product. The layout is organized around the production process, with equipment and workstations arranged in a sequence that optimizes production efficiency. This is the most appropriate layout for a manufacturer who needs to produce large numbers of a single product.

Question 12

Snyder Industries uses 100,000 widgets each year.If Snyder decides to place more orders each year,ordering fewer widgets each time,Snyder will be carrying ________ inventory on average and the risk of running out of inventory will ________.
A)less;rise
B)less;fall
C)more;fall
D)more;rise

Accepted Answer

The answer of Snyder Industries uses 100,000 widgets each year.If...

Question 13

Tidewater Company uses 100,000 pounds of fresh flowers each year.Because of rising energy costs,it has become more expensive for Tidewater to store flowers.All other factors being equal,Tidewater should ________ its inventory of fresh flowers,which would ________ the risk of running out of inventory.
A)reduce;have no effect on
B)increase;have no effect on
C)reduce;increase
D)increase;increase

Accepted Answer

Because of rising energy costs, it has become more expensive for Tidewater to store flowers, so reducing the inventory of fresh flowers will decrease the storage costs and minimize the risk of running out of inventory. Therefore, the best choice is to reduce the inventory of fresh flowers, which will increase the risk of running out of inventory, but this risk can be managed by improving the supply chain management process.

Question 14

Sakura is a production manager and has decided that grouping machinery and equipment according to their functions works best at her company.What layout is her company using?
A)fixed
B)process
C)customer-oriented
D)product

Accepted Answer

Grouping machinery and equipment according to their functions is a characteristic of process layout. In this layout, similar processes or functions are grouped together, allowing for efficient use of equipment and smooth flow of materials.

Question 15

All of the following are expenses involved in storing inventory EXCEPT ________.
A)maintenance
B)acquisition
C)insurance
D)warehouse rent

Accepted Answer

Acquisition refers to the purchasing of inventory, not the cost of storing it. The other options are all expenses involved with storing inventory.

Question 16

A plant where plastic 2-liter bottles are manufactured probably uses a ________ layout.
A)customer-oriented
B)product
C)process
D)fixed-position

Accepted Answer

A product layout is typically used in manufacturing settings where repetitive or continuous production processes occur, such as in the production of plastic 2-liter bottles. This layout arranges machinery and equipment according to the sequence of operations that need to be performed on a product, allowing for efficient mass production.

Question 17

Elijah is a warehouse production manager who has been assigned a complex project that might result in lengthy delays.In order to coordinate all aspects of the production process,Elijah has created a(n)________ chart.
A)ISO
B)FMS
C)Gantt
D)PERT

Accepted Answer

The answer of Elijah is a warehouse production manager who...

Question 18

Which of the following would least likely be purchased on a long-term contractual basis?
A)component parts for mass production
B)office supplies purchased for a small office
C)continuous supply products
D)raw materials

Accepted Answer

Office supplies for a small office would least likely be purchased on a long-term contractual basis as the demand and usage may vary and it is not a continuous supply product. Component parts for mass production, continuous supply products, and raw materials are typically purchased on a long-term contractual basis to ensure a consistent supply and avoid disruptions in production.

Question 19

Isaac's job involves setting up well-designed procedures for coordinating people,materials,and machinery for the production of mesh filters.Isaac is involved in ________.
A)inventory control
B)facility design
C)production control
D)manufacturing resource planning (MRP II)

Accepted Answer

Isaac's job involves setting up procedures for coordinating people, materials, and machinery for production. This falls under the category of production control. Inventory control involves managing inventory levels, facility design involves designing physical structures and layouts, and MRP II involves planning and scheduling production based on materials availability.

Question 20

Harriet uses a computer-based production planning system by which a firm can ensure that it has needed parts and materials available at the right time and place and in the correct amounts.Harriet uses:
A)materials requirement planning
B)just-in-time inventory system
C)computer-aided manufacturing
D)vendor-managed inventory

Accepted Answer

A materials requirement planning system helps ensure that a firm has the necessary parts and materials available at the right time and place, as well as in the correct amounts. This type of system typically uses computer-based tools to plan for and manage these resources, helping to minimize waste and reduce costs while ensuring that production runs smoothly. While just-in-time inventory systems and computer-aided manufacturing can also be useful tools for managing production, they are not necessarily focused specifically on materials planning and management in the same way that materials requirement planning is. Vendor-managed inventory is another potential approach to inventory management, but it involves more direct involvement with suppliers in managing inventory levels, rather than relying primarily on computer-based systems.

Quiz 10: Production and Operations Management

Which of the following situations would present a challenge for a just-in-time (JIT) investment system?

Implementing a production plan involves all of the following steps EXCEPT ________.

Banks most likely utilize a ________ layout.

The critical path in a PERT chart represents the ________.

The suppler for Omega Corporation has offered the company a 5 percent discount if it will order more units less frequently.If Omega accepts the supplier's offer,the cost of carrying inventory will and the cost of running out of inventory will .

Part of Vicky's job as a production supervisor is to instruct each department on what work to do and the time in which they have to complete their work assignments.This part of her job is known as ________.

How can a firm best protect itself against an interruption in the supply of parts?

________ is the phase of production control that determines the sequence of work and specifies where and by whom each aspect of production will be performed.

When Best Buy vendors ship merchandise directly to stores instead of distribution centers,the company is utilizing ________.

A Gantt chart is associated with which step in production control?

Which of the following layouts would be appropriate for a manufacturer who needs to produce large numbers of a single product?

Snyder Industries uses 100,000 widgets each year.If Snyder decides to place more orders each year,ordering fewer widgets each time,Snyder will be carrying inventory on average and the risk of running out of inventory will .

Tidewater Company uses 100,000 pounds of fresh flowers each year.Because of rising energy costs,it has become more expensive for Tidewater to store flowers.All other factors being equal,Tidewater should its inventory of fresh flowers,which would the risk of running out of inventory.

Sakura is a production manager and has decided that grouping machinery and equipment according to their functions works best at her company.What layout is her company using?

All of the following are expenses involved in storing inventory EXCEPT ________.

A plant where plastic 2-liter bottles are manufactured probably uses a ________ layout.

Elijah is a warehouse production manager who has been assigned a complex project that might result in lengthy delays.In order to coordinate all aspects of the production process,Elijah has created a(n) ________ chart.

Which of the following would least likely be purchased on a long-term contractual basis?

Isaac's job involves setting up well-designed procedures for coordinating people,materials,and machinery for the production of mesh filters.Isaac is involved in ________.

Harriet uses a computer-based production planning system by which a firm can ensure that it has needed parts and materials available at the right time and place and in the correct amounts.Harriet uses: