Final

Question 1

Levels Scheduling

Answer 1

Maintaining a constant output rate, production rate, or workforce level over the planning horizon

Question 2

Chase Scheduling

Answer 2

A planning strategy that sets production equal to
forecast demand.
Many service organizations favor the chase strategy
because the inventory option is difficult or impossible to adopt.

Question 3

Hiring

Question 4

Firing

Question 5

MPR

Answer 5

Materials, Requiste, Plan

Question 6

Independent Demand

Answer 6

The demand for one item is not related to the
demand for another item

Question 7

Dependent Demand

Answer 7

The demand for one item is related to the
demand for another item

Question 8

BOMs

Answer 8

Bill of Materials

Question 9

Time Phasing

Answer 9

Planned amount to order in each time period

Question 10

Net Requests

Question 11

Leadtimes

Answer 11

The time required to purchase, produce, or assemble an item

Question 12

Net Requirements

Answer 12

Actual Amount needed in each time period

Question 13

Gross Request

Answer 13

Total expected demand

Question 14

Scheduled Receipts

Answer 14

Open Orders scheduled to arrive

Question 15

Projected on Hand

Answer 15

Expected inventory on hand at the beginning of each time period

Question 16

Setup Costs

Answer 16

Technician Costs
Startup Costs
QA samples
Utilitiues/Operator Costs

Question 17

Lot-for-Lots Techniques

Answer 17

Order just what is required

Question 18

When should the Lot-for-Lot Technique be used

Answer 18

When low-cost setups can be achieved

Question 19

Inventory

Answer 19

Goods

Question 20

Importance of Inventory

Answer 20

Sever Import for Working Capital

Question 21

ABC Analysis

Answer 21

Divide inventory into three classes based on annual dollar volume (Class A, B, & C

Question 22

Class A

Answer 22

High Annual Dollar Volume

Question 23

Class B

Answer 23

Medium Annual Dollar Volume

Question 24

Class C

Answer 24

Low Annual Dollar Volume

Question 25

When is ABC Analysis used?

Answer 25

Establish policies that focus on the few critical parts and not the many trivial ones

Question 26

What are the Pressures for Small Inventories?

Answer 26

Inventory Holding Cost Cost of Capital Taxes Insurance Storage/Handling Cost Warehouse Space Shrinkage

Question 27

What are the Pressures for Large Inventories?

Answer 27

Ordering Cost Setup Cost Transportation Cost Don't Stock Out the Production Line Customer Service/ Fill Rates Labor and Equipment Utilization

Question 28

Holding Cost

Answer 28

building rent or depreciation operating cost, taxes, insurance

Question 29

Material Handling Costs

Answer 29

Equipment lease or depreciation, power, operating cost

Question 30

Labor Costs

Answer 30

Receiving, Warehousing, Security

Question 31

Investment Costs

Answer 31

Borrowing Costs, Taxes, and Insurance on Inventory

Question 32

Pilferage, Space, and Obsolscence

Answer 32

Much higher in industries undergoing rapid changes like PCs and Cell Phones

Question 33

Order Cost

Answer 33

Buyer Time Supplies Forms Order Processing Clerical Support Administrative Time to P{Lace Order

Question 34

Assumptions for EOQ

Answer 34

Known & Constant Demand/Lead Time Instantaneous Receipt of Material No Quantity Discount No stockout

Question 35

EOQ

Answer 35

Economic Order Quantity

Question 36

Quantity Discount Models

Answer 36

Reduced prices when larger quantities are purchased

Question 37

Tradeoffs in the Quantity Discount Models

Answer 37

reduced product cost and increased holding cost

Question 38

Clustering

Answer 38

Proximity to competitors

Question 39

3 steps of Locational Cost-Volume Analysis

Answer 39

1. Determine fixed and variable costs for each location 2. Plot the cost of each location 3. Select location with LOWEST TOTAL COST for expected production volume

Question 40

Center of Gravity

Answer 40

Finds location of distribution center that minimizes distribution costs

Question 41

Considerations for Center-of-Gravity Method

Answer 41

Location of markets Volume of goods shipped to those markets Shipping cost (or distance)

Question 42

Locational Cost-Volume

Answer 42

An economic comparison of location alternatives

Question 43

Quality

Answer 43

An operations manager’s objective is to build a total quality management system that identifies and satisfies customer needs

Question 44

5 Whys for Root Cause Analysis

Answer 44

What caused A, What caused B, What caused C, What caused D, and What caused E?

Question 45

Fishbone

Answer 45

6 Categories and list their causes that combined equal the effect

Question 46

4 Ms

Answer 46

Facor Rating Location Cost-Volume Center of Gravity Transportation Model

Question 47

Transportation Model

Answer 47

Finds amount to be shipped from several points of supply to several points of demand

Question 48

6 Sigma

Answer 48

Originally developed by Motorola, adopted and enhanced by Honeywell and GE

Question 49

Fixed Costs

Answer 49

The set amount to begin production

Question 50

Variable Costs

Answer 50

constant amount per unit produced