Multiple Choice: (1 points each) 1) A company produces a product which is designed to weigh 10 oz., with a tolerance of + 0.5 oz. The process produces products with an average weight of 9.95 oz. and a standard deviation of 0.10 oz. The process capability index for this process with z = 3 is
a) 1.50 b) -1.50 c) 1.83 d) -1.83
2) A forecasting model has produced the following forecasts: Period Demand Forecast Error January 120 110 February 110 115 March 115 120 April 125 115 May 130 125 At the end of May the average error would be
a. 7. b. 5. c. 3. d. 1.
3) If a product fails 10 times in 500 hours of operation, then its mean time between failures (MTBF) is
a) 0.02 hour b) 0.10 hour c) 20 hours d) 50 hours
4) Increased uncertainty and variability in a supply chain typically results in
a) faster deliveries. b) more accurate order fulfillment. c) larger inventories. d) lower costs
5) One way to reduce the bullwhip effect is for supply chain members to
a) make ordering decisions independently of each other. b) create demand forecasts independently of other supply chain members. c) share demand forecasts with other supply chain members. d) restrict information flows between supply chain members.
6) The bullwhip effect can
a) increase inventories. b) increase demand. c) increase customer service levels. d) increase capacity. Metropolitan State University DCSI 6681 Exam 23 -2 2
7) A company that produces specialized video equipment had cost of goods sold last year of $127,000,000. The average value of inventory for raw materials, work-in-process, and finished goods are shown in the table below: Raw Materials $6,189,000 Work-In-Process $2,541,000 Finished Goods $3,710,000 If the company operates 50 weeks per year then the number of inventory turns would be
a. 0.0979 b. 4.3795 c. 8.9784 d. 10.2090
8) A company hopes to achieve a daily output of 200 units during 6 hours of production time. Assuming there is no lost time during the 6 hours of production, the desired cycle time to achieve the targeted level of output is
a. 3.0 minutes b. 2.8 minutes c. 1.5 minutes d. 0.03 minutes
9) To monitor the number of blemishes on a polished surface a company randomly selects 10 units of output from its process and counts the number of blemishes on each unit. The sample results are shown below Sample No. 1 2 3 4 5 6 7 8 9 10 No. of Blemishes 17 19 15 18 16 14 15 16 15 15 Given the sample information above, the average number of defects per unit for this process would be
a. 160 b.80 c. 16 d.10
10) A production process consists of the following four stages with the average percentage of good quality at each stage as shown Stage Average Percentage of Good Quality 1 0.95 2 0.95 3 0.93 4 0.97 What is the daily production yield for the company if daily input is 500 units?
a. 485 units b. 465 units c. 407 units d. 400 units
