UNIT 2 :

 A quality loss function includes all of the following costs EXCEPT:

A. the cost of customer dissatisfaction.

B. sales costs.

C. inspection, warranty, and service costs.

D. the cost of scrap and repair.

 PDCA, developed by Shewhart, stands for which of the following?

A. Problem-Develop Solution-Check-Act

B. Plan-Do-Check-Act

C. Plan-Develop-Check-Accept

D. Problem-Do-Continue-Act

PDCA stands for Plan-Do-Check-Act. It is an iterative four-step management method used in business
for the control and continuous improvement of processes and products. It was popularized by W.
Edwards Deming, although it was originally developed by Walter A. Shewhart.

 "Quality lies in the eyes of the beholder" is:

A. an unrealistic definition of quality.

B. a user-based definition of quality.

C. a manufacturing-based definition of quality.

D. a product-based definition of quality.

"Quality lies in the eyes of the beholder" suggests that quality is subjective and depends on the
perception and experience of the individual or user. This viewpoint aligns with a user-based definition
of quality, where the satisfaction of the customer or end-user determines the quality of a product or
service.

 A production manager at a pottery factory has noticed that about 70 percent of defects
result from impurities in raw materials, 15 percent result from human error, 10 percent
from machine malfunctions, and 5 percent from a variety of other causes. This manager
is most likely using:

A. a cause-and-effect diagram.

B. a flowchart.

C. a scatter diagram.

D. a Pareto chart.

A Pareto chart is a type of bar chart that displays the frequency or impact of different causes or factors
in descending order.

 Members of quality circles are:

A. paid according to their contribution to quality.

B. external consultants designed to provide training in the use of quality tools.

C. always machine operators.

D. None of the above; all of the statements are false.

Members of quality circles are typically employees who voluntarily participate in regular meetings
to identify, analyze, and solve work-related problems, especially those related to quality
improvement.

 Recent events suggest that additive manufacturing is just a fad.

False.

Recent events and trends suggest that additive manufacturing, also known as 3D printing, is not just a
fad. It has been increasingly adopted across various industries such as aerospace, automotive,
healthcare, and consumer goods.

 Flexible manufacturing systems, because of easily changed control programs, are able to
perform such tasks as manufacturing one-of-a-kind parts economically.

True.

 Automated storage and retrieval systems are commonly used in distribution facilities of
retailers.

True.

 Which of the following is TRUE regarding computer-aided design?

A. It is too expensive to use in most manufacturing and design settings.

B. It is the use of computers to interactively design products and prepare engineering

documentation.

C. It results in longer development cycles for virtually all products.

D. It is an obsolete technology.

Computer-aided design (CAD) is the use of computer systems to assist in the creation, modification,
analysis, or optimization of a design. It allows designers and engineers to create and modify designs
more easily and efficiently than traditional manual drafting methods. CAD software enables interactive
design processes and facilitates the preparation of engineering documentation such as blueprints,
schematics, and technical drawings.

 The advantage of additive manufacturing includes supporting:

A. minimal custom tooling

B. all of these

C. innovative product design

D. low inventory

UNIT 3:
  The Academic Computing Center has five trainers available in its computer labs to
provide training sessions to students. Assume that the design capacity of the system is
1900 students per semester and that effective capacity equals 90% of design capacity. If
the number of students who actually got their orientation session is 1500, what is the
efficiency of the system?

A. 78.9%

B. 87.7%

C. 1710 students

D. 1350 students

ChatGPT

To find the efficiency of the system, we first need to calculate the effective capacity, which is 90% of
the design capacity:

Effective capacity = 90% * 1900 students = 0.90 * 1900 students = 1710 students

Then, we can use the formula for efficiency:

Efficiency = (Number of students served / Effective capacity) * 100%

Given that the number of students served is 1500, we can calculate the efficiency:

Efficiency = (1500 students / 1710 students) * 100% ≈ 87.72%

So, the efficiency of the system is approximately 87.7%.

 Adding a complementary product to what is currently being produced is a demand

management strategy used when:

A. capacity exceeds demand for a product that has stable demand.

B. efficiency exceeds 100 per cent.

C. demand exceeds capacity.

D. the existing product has seasonal or cyclical demand.

 The design capacity is:

A. the maximum theoretical output of a system in a given period under ideal conditions.

B. the minimum usable capacity of a particular facility.

C. the sum of all of the organization's inputs.

D. the capacity a firm expects to achieve given the current operating constraints.

 "A special arrangement of machinery and equipment to focus on production of a single

product or group of related products" describes what layout type?

A. fixed-position layout

B. warehouse layout

C. work cell

D. intermittent production

In a work cell layout, machines and equipment are grouped together based on the sequence of
operations required to produce a specific product or group of related products efficiently. This layout
promotes efficiency and flexibility in production.

 Fixed-position layout

A. Arranges machinery and equipment to focus on the production of a single product or group of
related products.

B. Seeks the best personnel and machine utilization in repetitive or continuous production.

C. Addresses the layout requirements of large, bulky projects such as ships and buildings.

D. Deals with low-volume, high-variety production.

 What layout strategy deals with low-volume, high-variety production?

A. fixed-position layout

B. retail layout

C. warehouse layout

D. process-oriented layout

 Which of the next statements is FALSE?

A. An example of an intangible cost, as it relates to location decisions, is the quality of education.

B. In location decisions, intangible costs are easier to measure than tangible costs.

C. Manufacturers may want to locate close to their customers if the transportation of finished goods is
expensive or difficult.

D. One reason for a firm locating near its competitors is the presence of a major resource it needs.

 Regarding location, tangible costs include which of the following?

A. quality and attitude of prospective employees.

B. taxes.
C. availability of public transportation.

D. climatic conditions.

Taxes are a tangible cost that can directly impact a company's expenses and are typically quantifiable
and measurable.

 Which of the next statements regarding location decision is true?

A. An example of an intangible cost, as it relates to location decisions, is depreciation.

B. Location greatly affects fixed cost, but not variable cost.

C. In location decisions, intangible costs are easier to measure than tangible costs.

D. Location decisions are based on many things, including costs, revenues, incentives, attitudes,
intangibles, and ethical considerations.

 Utilization will always be lower than efficiency because:

A. effective capacity is less than design capacity.
B. effective capacity is greater than design capacity.
C. expected output is less than actual output.
D. effective capacity equals design capacity.
 Regarding localization economies:
A. Describe how the average cost per unit falls whenever the firm is producing two or more products.
B. They are partly due to the discounts for large quantities.
C. They are one type of external economies of scale due to factors outside of the individual
company.
D. They are partly explained by the increased management complexity.
 The design capacity is:
A. the sum of all of the organization's inputs.
B. the maximum theoretical output of a system in a given period under ideal conditions.
C. the minimum usable capacity of a particular facility.
D. the capacity a firm expects to achieve given the current operating constraints.
 One of the major advantages of process-oriented layouts is:
A. high equipment utilization.
B. flexibility in equipment and labor assignment.
C. smooth and continuous flow of work.
D. large work-in-process inventories.
UNIT 4:

 PDCA, developed by Shewhart, stands for which of the following?

A. Plan-Develop-Check-Accept

B. Problem-Develop Solution-Check-Act

C. Problem-Do-Continue-Act
D. Plan-Do-Check-Act

 All of the following costs are likely to decrease as a result of better quality EXCEPT:

A. maintenance costs.

B. scrap costs.

C. customer dissatisfaction costs.

D. warranty and service costs.

 Which of the following is NOT one of the major categories of costs associated with
quality?

A. prevention costs

B. appraisal costs

C. internal failure costs

D. transport costs

 Total quality management emphasizes:

A. the responsibility of the quality control staff to identify and solve all quality-related problems.

B. a process in which most statisticians get involved.

C. a system where strong managers are the only decision-makers.

D. a commitment to quality that goes beyond internal company issues to suppliers and
customers.

 Which of the next statements regarding the EFQM model is true?

A. It helps companies to improve organizations.

B. It is promoted by the International Organization for Standarization (ISO).

C. It can be applied just to manufacturing firms.

D. EFQM is an international organization that sets standards for production and distribution

 Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence
of events through which a product travels is a:

A. check sheet.

B. flowchart.

C. Pareto chart.

D. Taguchi map.

 Which of the following is FALSE regarding control charts?

A. Values above the upper control limits imply that the product's quality is exceeding
expectations.

B. Control charts are built so that new data can be quickly compared to past performance data.
C. Control charts graphically present data.

D. Control charts plot data over time.

Values above the upper control limits on a control chart typically indicate that the process is out of
control or experiencing some form of variation that needs investigation and correction, rather than
indicating that the product's quality is exceeding expectations.

 A checklist is a type of:

A. poka-yoke

B. Pareto chart

C. kanban

D. flowchart

Its method used in quality management to help prevent mistakes or errors by ensuring that the
correct procedures are followed consistently.

 Poka-yoke is the Japanese term for:

A. card.

B. continuous improvement.

C. foolproof.

D. fishbone diagram.

 Which of the determinants of service quality involves having the customer's best
interests at heart?

A. courtesy

B. access

C. responsiveness

D. credibility

It refers to the trustworthiness and believability of the service provider. When customers perceive a
service provider as credible, they believe that the provider has their best interests in mind and will act
in a trustworthy manner.

 What is a set of quality standards developed by the International Organization for

Standardization?
A. EFQM
B. ISO 9000
C. ISO 14000
D. IOS 2009
 A successful TQM program incorporates all EXCEPT which of the following?
A. centralized decision-making authority
B. benchmarking
C. employee involvement
D. continuous improvement
 "Making it right the first time" is:
A. an unrealistic definition of quality.
B. a user-based definition of quality.
C. a manufacturing-based definition of quality.
D. a product-based definition of quality.
 Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of
events through which a product travels is a:
A. check sheet.
B. Pareto chart.
C. Taguchi map.
D. flowchart.
 Mechanical devices that use electronic impulses to activate motors and switches are
called:
A. automated storage and retrieval systems
B. additive manufacturing
C. flexible manufacturing systems
D. robots
 Which of the following provides automatic placement and withdrawal of parts and
products into and from designated places in a warehouse?
A. ASRS (Automated Storage and Retrieval Systems)
B. CIM
C. AGV
D. CAD/CAM
 The use of information technology to monitor and control a physical process is known
as:
A. computer-aided design
B. numeric control
C. information numeric control
D. process control
 "Operators simply load new programs, as necessary, to produce different products" describes:
A. automated guided vehicles
B. flexible manufacturing systems
C. vision systems
D. CAD
 What is the use of information technology to control machinery?
A. CAD
B. QFD
C. DFMA
D. CAM (Computer-Aided Manufacturing)
 Techniques for building employee empowerment include:
A. moving responsibility from production employees to managers.
B. building low-morale organizations.
C. building communication networks that include just managers.
D. developing open, supportive supervisors.
 Total quality management emphasizes:
A. a commitment to quality that goes beyond internal company issues to suppliers and
customers.
B. a system where strong managers are the only decision-makers.
C. the responsibility of the quality control staff to identify and solve all quality-related problems.
D. a process in which most statisticians get involved.
 The process of identifying other organizations that are best at some facet of your
operations and then modelling your organization after them is known as:
A. employee empowerment.
B. continuous improvement.
C. patent infringement.
D. benchmarking.
 What is a set of quality standards developed by the International Organization for
Standardization?
A. Deming Prize
B. EFQM
C. ISO 9000
D. Malcolm Baldrige National Quality Award
 A fishbone chart is also known as a:
A. Kanban diagram.
B. poka-yoke diagram.
C. cause-and-effect diagram.
D. Kaizen diagram.
 A good description of source inspection is inspecting:
A. one's own work.
B. goods at the supplier's plant.
C. the goods at the production facility before they reach the customer.
D. materials upon delivery by the supplier.
 A recent consumer survey conducted for a car dealership indicates that, when buying a
car, customers are primarily concerned with the salesperson's ability to explain the car's
features, the salesperson's friendliness, and the dealer's honesty. The dealership should
be ESPECIALLY concerned with which determinants of service quality?
A. competence, courtesy, and security
B. communication, courtesy, and credibility
C. competence, responsiveness, and reliability
D. communication, responsiveness, and reliability
UNIT 5:

 Japanese manufacturers often pursue a strategy that is part collaboration, part

purchasing from a few suppliers, and part vertical integration. What is this approach
called?
A. Poka-yoke.
B. Kaizen.
C. Kanban.
D. Keiretsu.
 A disadvantage of the "few suppliers" sourcing strategy is:
A. The lack of cost savings for customers and suppliers.
B. The risk of not being ready for technological change.
C. The suppliers are less likely to understand the broad objectives of the procuring firm and the end
customer.
D. The high cost of changing partners.
 Which one of the following shipping systems offers speed and reliability when
emergency supplies are needed overseas?
A. Waterways.
B. Railroads.
C. Airfreight.
D. Trucking.
 Which of the following is NOT a potential cause of the bullwhip effect?
A. Order batching.
B. Channel coordination.
C. Price fluctuations.
D. Demand forecast errors.
 What type of negotiating strategy requires the supplier to open its books to the
purchasers?
A. Market-based price model.
B. Cost-based price model.
C. Competitive bidding.
D. Price-based model.
 Which of the next statements is true?
A. Even though a firm may have a low cost strategy, supply-chain strategy can select suppliers
primarily on response or differentiation.
B. The objective of the supply chain management is to build a chain of suppliers that focuses on
maximizing value to the ultimate customer.
C. The supply chain for a brewery would include raw ingredients such as hops and barley but not the
manufactured goods such as bottles and cans.
D. A firm that employs a response strategy should minimize inventory throughout the supply chain.
 A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters
as usual. When this large order is sent to the distributor, the distributor assumes the
large size is a trend, not a one-time event. The distributor therefore places an even larger
order with the lobsterman. This behavior is the result of which of the following?
A. Postponement.
B. The bullwhip effect.
C. Vendor-managed inventory.
D. Double marginalization.
 Warehouses sometimes perform certain other functions besides storing goods. Which of
the following is NOT typically one of those functions?
A. Cross-docking.
B. Postponement.
C. Purchasing.
D. Break-bulk activities.
 An industrial producer is searching for a supplier for ball bearings. Its three most
important supplier criteria are price, quality, and delivery reliability. The firm has
decided that quality and delivery reliability should carry the same weight and that each
of them are twice as important as the price. If the weights sum to 100%, what would a
supplier with ratings of 40, 90, and 75 in the three respective categories score as a
weighted total?
A. 370
B. 37
C. 205
D. 74
 What term is used to describe the outsourcing of logistics?
A. Shipper-managed inventory.
B. E-logistics.
C. Sub-logistics.
D. Third-party logistics.
UNIT 6:

 Buffer stock is a type of inventory used

A. To decouple or separate various parts of the production process
B. To take advantage of quantity discounts and economies of scale
C. To hedge against inflation
D. To decouple the firm from fluctuations in demand and provide a stock of goods that will
provide a selection for customers
 ABC analysis divides on-hand inventory into three classes, generally based upon which of
the following?
A. unit price.
B. annual demand.
C. annual euro volume.
D. item quality.
 Which of the following would NOT generally be a motive for a firm to hold inventories?
A. to provide a selection of goods for anticipated customer demand and to separate the firm from

fluctuations in that demand.

B. to take advantage of quantity discounts.

C. to decouple various parts of the production process.

D. to minimize holding costs.

 All EXCEPT which of the following statements about ABC analysis are true?
A. In ABC analysis, inventory may be categorized by measures other than euro volume.

B. ABC analysis suggests that all items require the same high degree of control.

C. ABC analysis is an application of the Pareto principle.

D. ABC analysis categorizes on-hand inventory into three groups based on annual euro volume.
 If the actual order quantity is the economic order quantity in a problem that meets the
assumptions of the economic order quantity model, the average amount of inventory on
hand:
A. is affected by the amount of product cost.
B. is one-half of the economic order quantity.
C. is zero.
D. is smaller than the holding cost per unit.
 When quantity discounts are allowed, the cost-minimizing order quantity:
A. may be a quantity below that at which one qualifies for that price.
B. minimizes the sum of holding, ordering, and product costs.
C. minimizes the sum of holding and ordering costs.
D. is always an EOQ quantity.
 Among the advantages of cycle counting is that it:
A. does not require the detailed records necessary when annual physical inventory is used.
B. makes the annual physical inventory more acceptable to management.
C. allows more rapid identification of errors and consequent remedial action than is possible
with annual physical inventory.
D. does not require highly trained people.
 A product has a demand of 4000 units per year. Ordering cost is 20€, and holding cost is
4€ per unit per year. The cost-minimizing solution for this product is to order:
A. all 4000 units at one time.
B. 200 units per order.
C. 10 times per year.
 D. every 20 days.
To find the economic order quantity (EOQ), we can use the formula:

𝐸𝑂𝑄=2𝐷𝑆𝐻EOQ=H2DS

Where:

 𝐷D = Demand per year (4000 units)

 𝑆S = Ordering cost per order (20€)
 𝐻H = Holding cost per unit per year (4€)

Plugging in the values:

𝐸𝑂𝑄=2×4000×204EOQ=42×4000×20 𝐸𝑂𝑄=20000EOQ=20000 𝐸𝑂𝑄≈141.42EOQ≈141.42

Now, let's determine the number of orders per year:

𝑂𝑟𝑑𝑒𝑟𝑠 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟=𝐷𝑒𝑚𝑎𝑛𝑑𝐸𝑂𝑄Orders per year=EOQDemand

𝑂𝑟𝑑𝑒𝑟𝑠 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟=4000141.42Orders per year=141.424000
𝑂𝑟𝑑𝑒𝑟𝑠 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟≈28.28Orders per year≈28.28

Since we can't have a fraction of an order, the nearest whole number of orders per year is 28.

Now, to find the order quantity for each order:

𝑂𝑟𝑑𝑒𝑟 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦=𝐷𝑒𝑚𝑎𝑛𝑑𝑂𝑟𝑑𝑒𝑟𝑠 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟Order quantity=Orders per yearDemand

𝑂𝑟𝑑𝑒𝑟 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦=400028Order quantity=284000 𝑂𝑟𝑑𝑒𝑟 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦≈142.86Order quantity≈142.86

 What is the primary purpose of the basic economic order quantity model?

A. to calculate the reorder point, so that replenishments take place at the proper time

B. to maximize the customer service level

C. to calculate the optimum safety stock

D. to minimize the sum of setup cost and holding cost

 Which of the following is NOT one of the four main types of inventory?
A. raw material inventory.
B. safety stock inventory.
C. work-in-process inventory.
D. maintenance/repair/operating supply inventory.
UNIT 7:

 Demand for a given item is said to be dependent if:

A. it originates from the external customer
B. there is a clearly identifiable parent
C. there is a deep bill of material
D. the finished products are mostly services (rather than goods)
 Which of the following is NOT one of the four things needed for aggregate planning?
A. a logical overall unit for measuring sales and output
B. a method to determine the relevant costs
C. an aggregate demand forecast for an intermediate planning period
D. a mathematical model that will minimize costs over the intermediate planning period
 Top executives tend to focus their attention on which type of forecasts?
A. the forecast for the next day's absentee levels
B. long-range
C. intermediate-range
D. short-range
 Which of the following is the term used for intermediate-range capacity planning with a
time horizon of three to eighteen months?
A. enterprise resource planning
B. aggregate planning
C. material requirements planning
D. strategic planning
ChatGPT
 Regarding exercise 2: What are the gross requirements of panels in period 4?
A. 55
B. 165
C. 250
D. 750
 The objective of aggregate planning is to meet forecast demand while ________ over the
planning period.
A. minimizing cost
B. maximizing service level
C. minimizing fixed cost
D. minimizing stock out
 Which of the following is the term used for intermediate-range capacity planning with a
time horizon of three to eighteen months?
A. enterprise resource planning
B. strategic planning
C. material requirements planning
D. aggregate planning
 Top executives tend to focus their attention on which type of forecasts?
A. the forecast for the next day's absentee levels
B. short-range
C. intermediate-range
D. long-range
 Demand for a given item is said to be dependent if:
A. it originates from the external customer
B. there is a deep bill of material
C. the finished products are mostly services (rather than goods)
D. there is a clearly identifiable parent
 Regarding exercise 2: What are the gross requirements of foots in period 4?
A. 250
B. 1000
C. 80
D. 20

Gross Scheduled Projected On-Hand Net Planned Order Planned Order

Period Requirements Receipts Inventory Requirements Receipts Releases
1 150 50 0 100 100 100
2 50 100 0 0 0 0
3 300 50 0 250 250 250
4 50 50 0 0 0 ?

In period 4, there are scheduled receipts of 50 and no projected on-hand inventory. Therefore, the net
requirements for foots in period 4 would be:

Net Requirements = Gross Requirements - Scheduled Receipts - Projected On-Hand Inventory = 50 -

50 - 0 = 0

This means there are no additional requirements for foots in period 4 beyond what's already
scheduled or on hand.

 Regarding exercise 2: How many seats should we start producing in period 2?

A. 90
B. 40
C. 0
D. 250

Gross Scheduled Projected On-Hand Net Planned Order Planned Order

Period Requirements Receipts Inventory Requirements Receipts Releases
1 150 50 0 100 100 100
2 50 100 0 0 0 ?
3 300 50 0 250 250 250

In period 2, there are scheduled receipts of 100 units and no projected on-hand inventory. Therefore,
the net requirements for seats in period 2 would be:
Net Requirements = Gross Requirements - Scheduled Receipts - Projected On-Hand Inventory = 50 -
100 - 0 = -50

Since the net requirements are negative, it means there is excess inventory available in period 2.
Therefore, no additional seats need to be produced in period 2.

 Regarding exercise 2: How many backs should we start producing in period 4?

A. 55
B. 250
C. 35
D. 0

Gross Scheduled Projected On-Hand Net Planned Order Planned Order

Period Requirements Receipts Inventory Requirements Receipts Releases
1 150 50 0 100 100 100
2 50 100 0 0 0 0
3 300 50 0 250 250 250
4 50 50 0 0 0 ?

In period 4, there are scheduled receipts of 50 units and no projected on-hand inventory. Therefore,
the net requirements for backs in period 4 would be:

Net Requirements = Gross Requirements - Scheduled Receipts - Projected On-Hand Inventory = 50 -

50 - 0 = 0

Since the net requirements are 0, it means there is no additional demand for backs in period 4 beyond
what's already scheduled or on hand.

 Regarding exercise 3: What are the gross requirements of D in period 3?

A. 540
B. 1080
C. 270
D. 810

Gross Scheduled Projected On-Hand Net Planned Order Planned Order

Period Requirements Receipts Inventory Requirements Receipts Releases
1 540 0 0 540 540 540
2 810 540 0 270 270 270
3 ? 270 0 ? ? ?
4 2160 0 0 2160 2160 2160

In period 3, there are scheduled receipts of 270 units and no projected on-hand inventory. Therefore,
the net requirements for item D in period 3 would be:

Net Requirements = Gross Requirements - Scheduled Receipts - Projected On-Hand Inventory = ? -

270 - 0 = ?
Since the gross requirements for item D in period 3 are not given directly, we need to calculate it. The
gross requirements in period 3 are the sum of the net requirements in period 3 and the scheduled
receipts in period 3.

From period 2, the net requirements for item D are 270 units. Adding the scheduled receipts in period
3 (270 units), we get:

Gross Requirements in Period 3 = Net Requirements in Period 3 + Scheduled Receipts in Period 3 =

270 + 270 = 540

 Regarding exercise 3: How many units of C should we start producing in period 5?

A. 1000
B. 0
C. 340
D. 540

Gross Scheduled Projected On-Hand Net Planned Order Planned Order

Period Requirements Receipts Inventory Requirements Receipts Releases
1 540 0 0 540 540 540
2 810 540 0 270 270 270
3 ? 270 0 ? ? ?
4 2160 0 0 2160 2160 2160
5 ? 2160 0 ? ? ?

In period 5, there are scheduled receipts of 2160 units and no projected on-hand inventory. Therefore,
the net requirements for item C in period 5 would be:

Net Requirements = Gross Requirements - Scheduled Receipts - Projected On-Hand Inventory = ? -

2160 - 0 = ?

Since the gross requirements for item C in period 5 are not given directly, we need to calculate them.
The gross requirements in period 5 are the sum of the net requirements in period 5 and the scheduled
receipts in period 5.

From period 4, the net requirements for item C are 2160 units. Adding the scheduled receipts in
period 5 (2160 units), we get:

Gross Requirements in Period 5 = Net Requirements in Period 5 + Scheduled Receipts in Period 5 =

2160 + 2160 = 4320

So, the correct answer is:

B. 0

UNIT 8 AND UNIT 9:

  A project organization that becomes permanent is often referred to as a:
A. normal organization.
B. matrix organization.
C. fixed project organization.
D. permanent project organization.
 A project organization:
A. is appropriate only in construction firms.
B. is most helpful for ongoing projects with no termination date.
C. is effective for companies with multiple large projects.
D. is most helpful when the work contains simple and unrelated tasks. Borra selección
 Activity D on a CPM network has predecessors B and C and has successor F. D has
duration 6. B's earliest finish is 18, while C's is 20. F's late start is 26. Which of the
following is definitely true?
A. D is critical and has a slack of two days.
B. The earliest start of D is 20.
C. C is completed before B.
D. B is a critical activity.
Let's break down the information:
1. Activity D has predecessors B and C, and a successor F.
2. Duration of Activity D is 6 days.
3. B's earliest finish is 18.
4. C's earliest finish is 20.
5. F's late start is 26.
Now, let's analyze the options:
A. D is critical and has a slack of two days.
 This can't be determined without knowing the earliest start of D and its relationship with other
activities.

B. The earliest start of D is 20.

 D has predecessors B and C. Its earliest start would be the maximum of the earliest finishes of its
predecessors, which is 20 (from C).

C. C is completed before B.

 Since C's earliest finish is 20 and B's earliest finish is 18, C finishes after B.

D. B is a critical activity.

 A critical activity is one that does not have any slack. Since B's earliest finish is 18 and its earliest start
is 12 (assuming it's the earliest possible start), B has a slack of 0, making it a critical activity.

So, the correct answer is:

D. B is a critical activity.
 Which of the following statements regarding the ROY method is true?
A. All activities on the critical path have their late start equal to the maximum early finish of all
immediate predecessors.
B. The critical path is that set of activities that has positive slack.
C. Some networks have no critical path.
D. The critical path is the shortest of all paths through the network.
 The main difference between PERT and CPM is that:
A. PERT assumes that activity durations are known.
B. PERT employs three time estimates for each activity.
C. PERT is more accurate than CPM.
D. PERT ignores activity costs.
 An activity on a ROY network has these time estimates: optimistic = 3, most likely = 6,
and pessimistic = 9. What is its expected activity time?
A. 36
B. 3
C. 6
D. 5
To calculate the expected activity time using the PERT (Program Evaluation and Review Technique)
method, you use the formula:

Expected time=Optimistic+4×Most Likely+Pessimistic6Expected time=6Optimistic+4×Most Likely+Pe

ssimistic

Given: Optimistic time (O) = 3 Most Likely time (M) = 6 Pessimistic time (P) = 9

Substituting these values into the formula:

Expected time=3+4×6+96Expected time=63+4×6+9

Expected time=3+24+96Expected time=63+24+9 Expected time=366Expected time=636
Expected time=6Expected time=6

 Regarding project management:

A. Work breakdown structure is a useful tool in project management because it addresses the timing
of individual work elements.
B. One responsibility of a project manager is to make sure that the project meets its quality
goals.
C. A project organization works best for an organization when the project resides in only one of its
functional areas.
D. PERT, but not CPM, has the ability to consider the precedence relationships in a project.
 The control of projects involves close monitoring of which of the following?
A. budgets
B. all of the these
C. resources
D. costs
 The time an activity will take assuming very unfavorable conditions is:
A. the pessimistic time.
B. the activity variance.
C. the minimum time.
D. the optimistic time.
 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 and complex.
C. Gantt charts are visual devices that show the duration of activities in a project.
D. Gantt charts give a timeline and precedence relationships for each activity of a project.
 How can a reduction of in-transit inventory be encouraged?
A. low carrying costs.
B. high setup costs.
C. use of trains, not trucks.
D. supplier location near plants.
 Which of the following statements regarding a pull system is TRUE?
A. Large lots are pulled from upstream stations.
B. Problems become more obvious.
C. Manufacturing cycle time is increased.
D. Work is pulled to the downstream stations before it is actually needed.
 Which of the next statements is true regarding JIT systems?
A. In a JIT system, product inspection adds value by identifying defective items.
B. Product storage is an example of waste in the sense that no value is added.
C. Increasing inventory exposes variability in production processes.
D. A push system means providing the next station with exactly what is needed when it is needed.
 Which of the following is NOT a source of variability?
A. Employees, machines, and suppliers produce units late.
B. Customer demand is unknown.
C. Engineering drawings are inaccurate.
D. Employees, machines, and suppliers produce units that conform to standards.
 Which of the following is NOT one of the Seven Wastes?
A. transportation.
B. defective product.
C. overproduction.
D. assignment.
 The Seven Wastes, as identified in the context of Lean manufacturing, are:
1. Transportation
2. Inventory (Excess Inventory)
3. Motion (Unnecessary Movement of People)
4. Waiting (Idle Time)
5. Overprocessing (Doing More Than Necessary)
6. Overproduction
7. Defects (Rework, Scrap)
 Which of the following is specifically characterized by a focus on continuous
improvement, respect for people, and standard work practices?
A. Toyota Production System (TPS)
B. Material requirements planning (MRP)
C. Lean operations
D. Just-in-time (JIT)
 Which one of the following statements is TRUE regarding JIT inventory?
A. It hides variability.
B. It is the minimum inventory necessary to keep a perfect system running.
C. It exists just in case something goes wrong.
D. It is minimized with large lot production.
JIT inventory aims to minimize inventory levels to the bare minimum required to keep the production
system running smoothly. It achieves this by synchronizing production with customer demand,
reducing waste, and eliminating excess inventory that could hide underlying problems in the system.
 Which of the next statements regarding JIT is FALSE?
A. When implemented as a comprehensive operations strategy, JIT, TPS, and lean systems sustain
competitive advantage and result in increased overall returns.
B. Variability in manufacturing can occur because engineering drawings or specifications are
incomplete or inaccurate.
C. Product storage is an example of waste in the sense that no value is added.
D. The 5S category simplify/straighten means: "When in doubt, throw it out."
The 5S methodology in Lean manufacturing consists of the following steps:
1. Sort (Seiri): Separating necessary items from unnecessary items, but it doesn't mean to throw
everything out.
2. Set in order (Seiton): Organizing the necessary items in an efficient and logical manner.
3. Shine (Seiso): Cleaning and inspecting the work area.
4. Standardize (Seiketsu): Establishing standardized procedures for maintaining the first three steps.
5. Sustain (Shitsuke): Ensuring that the 5S principles are continually practiced and improved upon.
 If the goals of JIT partnerships are met, which of the following is one of the results?
A. For incoming goods, receiving activity and inspection are outsourced.
B. In-transit inventory falls as suppliers are located closer to facilities.
 C. In-plant inventory replaces in-transit inventory.
D. Suppliers maintain a variety of customers to reduce risk.
 Characteristics of just-in-time partnerships do NOT include:
A. long-term contracts.
B. produce with zero defects.
C. removal of in-transit inventory.
D. large lot sizes to save on setup costs and to gain quantity discounts.
 Which of the following statements regarding Gantt charts is true?
A. Gantt charts are visual devices that show the duration of activities in a project.
B. Gantt charts give a timeline and precedence relationships for each activity of a project.
C. Gantt charts are expensive and complex.
D. Gantt charts use the four standard spines of Methods, Materials, Manpower, and Machinery.
 Which of the next statements regarding the ROY method is FALSE?
A. Every network has at least one critical path.
B. The early start of an activity that has only one predecessor is simply the early finish of that
predecessor.
C. The critical path can be determined by using either the "forward pass" or the "backward pass."
D. Slack is the amount of time an activity can be delayed without delaying the entire project.

In the ROY method, the early start of an activity with only one predecessor is determined by the
maximum of the early finishes of all its immediate predecessors, not simply the early finish of that
predecessor.
 Regarding project management:
A. One responsibility of a project manager is to make sure that the project meets its quality
goals.
B. A project organization works best for an organization when the project resides in only one of its
functional areas.
C. PERT, but not CPM, has the ability to consider the precedence relationships in a project.
D. Work breakdown structure is a useful tool in project management because it addresses the timing
of individual work elements.
 The expected activity time in ROY analysis is calculated as:
A. the simple average of the optimistic, pessimistic, and most likely times.
B. the sum of the optimistic, pessimistic, and most likely times, divided by six.
C. the weighted average of a, m, and b, with m weighted 4 times as heavily as a and b.
D. the sum of the optimistic, pessimistic, and most likely times.

This formula is often represented as 𝐸=(𝑎+4𝑚+𝑏)/6E=(a+4m+b)/6, where:

 𝐸E is the expected activity time.

 𝑎a is the optimistic time.
 𝑚m is the most likely time.
 𝑏b is the pessimistic time.
  The control of projects involves close monitoring of which of the following?
A. all of the these
B. costs
C. resources
D. budgets
 A project organization:
A. is most helpful when the work contains simple and unrelated tasks.
B. is appropriate only in construction firms.
C. is most helpful for ongoing projects with no termination date.
D. is effective for companies with multiple large projects.
 A simple ROY network has three activities, D, E, and F. D is an immediate predecessor of
E and F. E is an immediate predecessor of F. The activity durations are D=4, E=3, and
F=6.
A. Slack at D is 0 periods.
B. The critical path is D-E-F, duration 12.
C. Slack at E is 3 periods.
D. The critical path is D-F, duration 10.
 The phases of project management are:
A. planning, programming, and budgeting.
B. planning, organizing, staffing, leading, and controlling.
C. planning, scheduling, and controlling.
D. different for manufacturing projects than for service projects.
 A project organization that becomes permanent is often referred to as a:
A. normal organization.
B. matrix organization.
C. fixed project organization.
D. permanent project organization.
 A simple ROY network has five activities, A, B, C, D, and E. A is an immediate
predecessor of B and of C. B is an immediate predecessor of D and of E. C is an
immediate predecessor of E. Which of the following statements is TRUE?
A. There are two paths in this network.
B. There are three paths in this network.
C. There are four paths in this network.
D. There are five paths in this network.
UNIT 9:
 Which one of the following is NOT a layout tactic in a JIT environment?
A. fixed equipment.
B. minimizing distance.
C. little space for inventory.
D. work cells for families of products.
  Fixed equipment is not conducive to the flexibility required in a JIT environment, making it the
layout tactic that does not fit with JIT principles.
Which of the following is often added to the 5Ss by U.S. managers?
A. Support/maintenance
B. Supersize
C. Sales
D. Security
 Which of the following is specifically characterized by continuous and forced problem
solving via a focus on throughput and reduced inventory?
A. Lean operations.
B. Toyota Production System (TPS).
C. Just-in-time (JIT).
D. Material requirements planning (MRP).
 If the goals of JIT partnerships are met, which of the following is one of the results?
A. In-plant inventory replaces in-transit inventory.
B. Suppliers maintain a variety of customers to reduce risk.
C. In-transit inventory falls as suppliers are located closer to facilities.
D. For incoming goods, receiving activity and inspection are outsourced.
 Which of the following is specifically characterized by a focus on continuous improvement,
respect for people, and standard work practices?
A. Material requirements planning (MRP)
B. Just-in-time (JIT)
C. Lean operations
D. Toyota Production System (TPS)
 Which one of the following is a concern expressed by suppliers in JIT partnerships?
A. having limited ability to respond to changes in product and quality.
B. large lot sizes.
C. having too many customers.
D. delivery to the point of use.
 Which of the following statements regarding a pull system is TRUE?
A. Manufacturing cycle time is increased.
B. Large lots are pulled from upstream stations.
C. Work is pulled to the downstream stations before it is actually needed.
D. Problems become more obvious.
 Which of the next statements regarding JIT is FALSE?
A. When implemented as a comprehensive operations strategy, JIT, TPS, and lean systems sustain
competitive advantage and result in increased overall returns.
B. Product storage is an example of waste in the sense that no value is added.
C. The 5S category simplify/straighten means: "When in doubt, throw it out."
D. Variability in manufacturing can occur because engineering drawings or specifications are
incomplete or inaccurate.
 Which one of the following is NOT a layout tactic in a JIT environment?
A. minimizing distance
B. fixed equipment
C. little space for inventory
D. work cells for families of products
 Characteristics of just-in-time partnerships do NOT include:
A. large lot sizes to save on setup costs and to gain quantity discounts.
B. produce with zero defects.
C. removal of in-transit inventory.
D. long-term contracts.