Production and Operations Management
161. Which of the following is not a trend in job design?
- Temporary Workers
- 9 to 5 scheduling
- Alternative workplaces (telecommuting, shared offices, etc)
- Automation of manual work
Correct answer: (B)
9 to 5 scheduling
162. Work measurement techniques include all of the following except:
- On the job training
- Time study
- Work sampling
- Predetermined motion-time data systems
Correct answer: (A)
On the job training
163. One use of inventory is
- To ensure that item cost is maximized.
- To tightly link production and distribution processes.
- To provide a hedge against inflation.
- To tightly link a firm's production with its customers' demand.
Correct answer: (A)
To ensure that item cost is maximized.
164. The appropriate level of safety stock is typically determined by
- Minimizing expected stockout cost.
- Taking the square root of the economic order quantity.
- Choosing the level of safety stock that assures a given service level.
- Carrying sufficient safety stock so as to eliminate all stockouts.
Correct answer: (C)
Choosing the level of safety stock that assures a given service level.
165. Inventory carried for the purpose of providing flexibility to each decision-making unit to'manage its operations independently is known as
- Safety inventory
- Cycle inventory
- Seasonal inventory
- Decoupling inventory
Correct answer: (D)
Decoupling inventory
166. Higher number of stock points required for risk pooling results in higher savings in terms of
- Decoupling inventory
- Pipeline inventory
- Cycle inventory
- Safety inventory
Correct answer: (C)
Cycle inventory
167. A system that triggers ordering on a uniform time basis is called a
- Fixed-quantity system.
- Reorder point system.
- Fixed-period system.
- EOQ.
Correct answer: (C)
Fixed-period system.
168. Extra units that are held in inventory to reduce stockouts are called
- Just-in-time inventory.
- Reorder point.
- Demand variance.
- Safety stock.
Correct answer: (D)
Safety stock.
169. ABC analysis divides an organization's on-hand inventory into three classes based upon
- Annual demand.
- The number of units on hand.
- Unit price.
- Annual dollar volume.
Correct answer: (D)
Annual dollar volume.
170. In the probabilistic model, increasing the service level will
- Cannot be determined.
- Have no impact on the cost of the inventory policy.
- Increase the cost of the inventory policy.
- Reduce the cost of the inventory policy.
Correct answer: (C)
Increase the cost of the inventory policy.