Exam 1

Question 1

In the US, ____ is credited with introducing parts interchangeability in manufacturing.

Answer 1

Eli Whitney

Question 2

T/F: Operations management started out in the management sector.

Answer 2

True

Question 3

A partial decision tree is shown. What is the expected value at chance node F?

Answer 3

21

Question 4

A rectangle in a decision tree represents a…?

Answer 4

decision

Question 5

Does the decision remain optimal if the profit per unit of C changes to $150?

Answer 5

False

Question 6

An LP routine is run fir a business production plan. The goal is to maximize profit. One of the resources used is time on an expensive machine, and each additional hour of machine time costs $350. In the LP solution which maximizes profit, the shadow price for an hour of time on this machine is $200 per hour?

Answer 6

Do not acquire additional units of the resource for this production plan

Question 7

3D printing is widely used in _____

Answer 7

-making unique shapes that cannot be produced easily using conventional techniques
-making prototypes for new products

Question 8

The Shouldice Hospital case describes the delivery of varied and highly customized service to patients with a wide range of illnesses

Answer 8

False

Question 9

T/F: The pricing of products in the marketplace is not an Operations Management decision.

Answer 9

False

Question 10

The cost of moving products between work areas us used in ___?

Answer 10

Layout Plan for the Business

Question 11

What is the EVPI, i.e. the Expected Value of Perfect Info.

Answer 11

22,000(0.3)+10,000(0.5)+5,000(0.2) = 12,600
MI= 15,000
15,000-12,600 = 2,400

Question 12

Calculate the Expected Value of the N option for the Quality program?

Answer 12

24,000* 0.25+18,000* 0.75= 6000 +13,500 =
19,500

Question 13

What is the value of one additional hour of finishing time?

Answer 13

0

Question 14

Does this decision remain optimal if the profit per unit of C changed to $80?

Answer 14

Yes

Question 15

T/F: It is more difficult to measure the quality of a physical good (auto) than a service (tutoring)

Answer 15

False

Question 16

Data on the cost of placing a order is used in _____

Answer 16

Economic Order Quantity to re-order inventory for the Business

Question 17

A time estimate for performing a task is used in ____

Answer 17

Job Scheduling Dispatch Rule for the Business

Question 18

What is the expected value for High Inventory?

Question 19

Is this a valid decision tree?

Answer 19

False
A decision tree must start with a decision node (rectangle) not a chance node (circle).

Question 20

Linear Programming has 3 advantages in solving for the optimal operations decision. They include ____

Answer 20

-the simplicity of formulating a linear relationship
-the efficiency of optimization algorithms for linear programs
-when feasible and solved, the solution can be guaranteed to be the optimal decision.

Question 21

T/F: The optimal decision for a linear program can be mathematically proven to lie at a corner point, i.e., the intersection of two or more constraints of the LP. Hence the solution algorithm is simple, and merely checks corner points.

Answer 21

True

Question 22

Important technologies used in Cobots, collaborative robots, is/are _____

Answer 22

-sensors that can detect the presence if humans and stop/change operation
- ability to respond to spoken commands from humans
-learning by doing, i.e., humans can hold the cobot’s arms and train it

Question 23

T/F: The cost for mass producing a product is less than for producing a customized product.

Answer 23

True

Question 24

Setting the sale price of a product is an operations management decision.

Answer 24

False
Price setting is a marketing task

Question 25

Adam Smith, in his second book, The Wealth of Nations, presents arguments for the value of division of labor in the workplace. A good example is ____

Answer 25

None of the other choices

Question 26

Which equation is correct for the Finishing constraint?

Answer 26

1.5A+3B+1.25C ≤ 240

Question 27

T/F: The optimal decision for a linear program can be mathematically proven to lie at a corner point, i.e., the intersection of two or more constraints of the LP. Hence the solution algorithm is simple, and merely checks corner points.

Answer 27

True

Question 28

One difference between goods production (cars) and service production (salon) is that goods ca be inventoried. It is easier to inventory gods than services.

Answer 28

True