operation management

operation management - Operations Management 1. A rendering...

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Operations Management 1. A rendering plant is capable of producing 10 tons of product per day if run for three shifts with no breakdowns and plenty of raw materials. Over the past week, the plant has rendered an average of 7.3 tons per day because the third shift has devoted much of their time to preventive maintenance. What is the utilization of the plant? a.10 tons/day b.7.3 tons/day c.73% d.137% 2. Management at Pepman has decided to switch from a push system to a pull system of manufacturing. They are a large repetitive manufacturer of bicycles. Which one of the following is most likely to occur? a.The cycle time will increase, resulting in higher inventory levels. b.The space required will increase due to the increase in the number of units that require rework. c.The decrease in WIP inventory levels will reduce the space requirements. d.The workers at any given process will produce units before they are needed by the subsequent process. 3. The supply chain management department of a major manufacturer pondered a particularly weighty make or buy decision for weeks, ultimately deciding to make, rather than buy. This decision resulted in increased: a. outsourcing. b. offshoring. c. postponement. d. backward integration. 4. Widgets, Inc. wishes to locate two new manufacturing facilities. Based on the following subjective criteria, where should the new facilities be located? (Excellent = 5, Very good = 4, Good = 3, Fair = 2, Poor = 1) a.B and D b.A and D 1
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c.C and D d.D and E 5. Norman Regional Hospital always kept a few extra heart catheters on hand because when a patient showed up that needed one, they really needed one. This is a prime example of: a.safety stock inventory. b.anticipation inventory. c.pipeline inventory. d.cycle inventory. 6. Use the process flow diagram to determine which of these events has the greatest net benefit. a.reducing the flow time at Station A from 8 to 7 minutes. b.increasing the capacity at Station B to 8 units per hour. c.increasing the capacity at Station C to 7 units per hour. d.reducing the flow time at Station D from 9 to 8 minutes. 7. The Lemming Company implements an aggressive marketing campaign and effectively doubles the annual demand for Model 13s. Their total annual holding cost should: a.decrease by 50%. b.increase by 100%. c.stay the same. d.increase by 40%. 8. A TV repair service company has a seasonal demand for its service, and there is a general shortage of skilled TV repairpersons. Which one of the following is a demand option production-planning alternative suitable for this situation? a. Hire and lay off workers to match the demand requirements. b.Increase the backlog for short-term demand surges. c. Build anticipation inventories. d.Subcontract work out during peak demand periods.
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This note was uploaded on 01/03/2011 for the course QSO 878 taught by Professor Edmond during the Spring '10 term at CUNY Hostos.

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operation management - Operations Management 1. A rendering...

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