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BUS 411 FALL 2016 EXAM – 3

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BUS 411 FALL 2016 EXAM – 3

1. Managers have obligations to a wide variety of stakeholders such as shareholders, employees and customers. When considering outsourcing production to offshore suppliers, managers have to weigh __.I) Cost benefits that might make shareholders wealthierII) Quality issues that might make firms less productive and/or products riskierIII) The investments already tied up in relationships with existing suppliers2. The typical difference between “quality circles” and “continuous improvement teams” is ___. A. Quality circles work on product design only.B. Continuous improvement teams work on product and process design.C. Continuous improvement teams use only engineers while quality circles use just the workers doing the work.D. the amount of employee empowermentE. There is no difference-they are just the same.3. A tool that depicts process variation graphically is a(n) _________.4. A chart showing the number of occurrences by category would be used in:5. A process results in a few defects occurring in each unit of output. Long-run, these defects should be monitored with ___________.6. Studies on a bottle-filling machine indicates it fills bottles to a mean of 16 ounces with a standard deviation of 0.10 ounces. What is the process specification, assuming the Cpk index of 1?7. Which of the following relationships must always be incorrect?8. Which of the following are typically in play in a circumstance in which yield management is worthwhile?(I) Perishable capacity(II) Ample finished goods storage(III) Demand variability(IV) Low holding costsA. I, II, and IV onlyB. I and III onlyC. III onlyD. II and III onlyE. II, III, and IV only9. Aggregate planners attempt to balance:A. demand and inventories.B. demand and costs.C. capacity and inventories.D. capacity and costs.E. capacity and demand.10. Which of the following best describes aggregate planning?A. the link between intermediate-term planning and short-term operating decisionsB. a collection of objective planning toolsC. make-or-buy decisionsD. an attempt to respond to predicted demand within the constraints set by product, process, and location decisionsE. manpower planning11. In order to use the level capacity strategy, variations in demand are met by:A. varying output during regular time without changing employment levels.B. varying output during regular time by changing employment levels.C. varying output by changing overtime levels.D. using combination of inventories, overtime, part time, and back orders.E. price adjustments.12. The multiplication process used by MRP to determine lower-level requirements is called:A. time-phasing.B. pegging.C. netting.D. projecting.E. exploding.13. Capacity requirements planning helps managers reconcile __________ with __________.A. what is needed; what has been doneB. what is needed; what is possibleC. what has been done; who will be doing itD. what needs to be done; where it will be doneE. what has been done; how much what needs to be done will cost14. An effort to expand the scope of production resource planning by involving other functional areas in the planning process has been:A. material requirements planning.B. capacity requirements planning.C. manufacturing resources planning.D. just-in-time planning.E. multifunctional relationships planning.15. Which of the following most closely describes net material requirements? A) gross requirements – planned order receipts B) gross requirements – on-hand + planned order receipts C) gross requirements – on-hand – planned order receipts D) gross requirements – planned order releases E) none of the above16. The _________ of ERP makes it valuable as a strategic planning tool.A. Internet baseB. rapid batch capabilityC. employee focusD. real-time aspectE. database structure17. Because ‘courtesy’ is subjective, it can’t be considered a factor in service qualityTRUEFALSE18. High-cost, low-volume items often require careful inspection since we make them so infrequently.TRUEFALSE19. Linear programming models yield the optimal solution.TRUEFALSE20. In MRP, EOQ models tend to be less useful for materials at the lowest levels than for upper level assemblies of the bill of materials since higher-level assemblies have larger dollar investments.TRUEFALSE21. Load reports show capacity requirements for departments or work centers which may be more or less than the capacity available in that work center.TRUEFALSE


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