IE 2 A Flashcards
(97 cards)
Questions 1-2: A sandwich joint has determined that their annual demand is 3,000 sandwiches. They can produce 50 sandwiches a day. The cost of holding the items is $2.50 per sandwich per year and the cost of setting up is $20. If the joint operates 300 days a year, calculate the following:
Average inventory
A. 96
B. 98
C. 122
D. 124
B. 98
Questions 1-2: A sandwich joint has determined that their annual demand is 3,000 sandwiches. They can produce 50 sandwiches a day. The cost of holding the items is $2.50 per sandwich per year and the cost of setting up is $20. If the joint operates 300 days a year, calculate the following:
2. Total annual cost
A. $510.95
B. $489.90
C. $498.67
D. $521.56
B. $489.90
A method for classifying inventory items according to their dollar value to the firm based on the principle that only a few items account for the greatest dollar value of total inventory.
A. Fixed-Time-Period System
B. ABC System
C. Continuous Inventory System
D. Fixed-Order-Quantity System
B. ABC System
Final or finished products that are not a function of, or dependent upon, internal production activity.
A. Dependent demand
B. Fixed demand
C. Variable demand
D. Independent demand
D. Independent demand
A mathematical technique that solves a set of four quadratic equations to determine the
optimal workforce size and production rate.
A. Search Decision Rule
B. Mixed Decision Rule
C. Level Decision Rule
D. Linear Decision Rule
D. Linear Decision Rule
Raesee Dairy makes cheese to supply to stores in its area. The dairy can make 250 pounds
of cheese per day, and the demand at area stores is 180 pounds per day. Each time the dairy makes cheese, it costs $125 to set up the production process. The annual cost of carrying a pound of cheese in a refrigerated storage area is $12. Determine the optimal size and the total annual inventory cost assuming working days is 320 days a year.
A. 1,096 and $13,145
B. 3,244 and $12,547
C. 4,010 and $12,521
D. 5,122 and $13,602
A. 1,096 and $13,145
Daisy sells desserts like cupcakes, cinnamon rolls and brownies in boxes to add on her allowance. She sells the cupcakes for $2.75, the rolls for $2.50, and the brownies for $3.00. The variable costs associated with the following items are $0.50, $0.25, and $0.75 respectively. She has estimated that the annual demand for each box is 1000, 1200 and 1300 boxes, respectively. Her fixed cost is approximately $500 per month.
What is Daisy’s monthly break even point in dollars?
A. $612.7
B. $614.5
C. $620.8
D. $618.3
A. $612.7
Daisy sells desserts like cupcakes, cinnamon rolls and brownies in boxes to add on her allowance. She sells the cupcakes for $2.75, the rolls for $2.50, and the brownies for $3.00. The variable costs associated with the following items are $0.50, $0.25, and $0.75 respectively. She has estimated that the annual demand for each box is 1000, 1200 and 1300 boxes, respectively. Her fixed cost is approximately $500 per month.
How many boxes of cupcakes monthly should she sell to break even?
A. 68
B. 65
C. 67
D. 64
D. 64
A measure computed by dividing the cumulative error by MAD and it is used to monitoring bias in a forecast.
A. Seasonal factor
B. Smoothing constant
C.Coefficient error
D.Tracking Signal
D.Tracking Signal
He introduced Economic Order Quantity.
A. Harris
C.Sorensen
B. Dupon
D. Ford
A. Harris
A list of materials, parts, and assemblies that make up a product, including quantities, parent-component relationships, and order of assemblies.
A. Inventory master file
B. Product structure
C. Parts list
D. Bill of materials
D. Bill of materials
An approach to scheduling that initially assumes infinite capacity and then manually levels the load of resources that have exceeded capacity.
A. Infinite scheduling
B. Load leveling
C. Finite scheduling
D. Synchronous scheduling
A. Infinite scheduling
An aggregate planning strategy that schedules production to match demand and absorbs variations in demand by adjusting the size of the workforce.
A. Pure strategy
B. Mixed strategy
C. Chase strategy
D. Level strategy
C. Chase strategy
The following are the tactics for matching capacity to demand EXCEPT:
A. Redesigning the product to facilitate more throughput
B.Adjusting equipment and processes
C. Reformulate the demand forecast model
D. Making staffing changes
D. Making staffing changes
Questions 15-17: RMC manufactures quality furniture. The following table shows their monthly demand. Develop a forecast for August using the following techniques:
15.Four-month moving average
A. 470
B. 546
C. 557.5
D. 556.8
C. 557.5
Questions 15-17: RMC manufactures quality furniture. The following table shows their monthly demand. Develop a forecast for August using the following techniques:
- Weighted average assuming weights of 0.3, 0.25, 0.35 and 0.10 are used.
A. 581
B. 584
C. 582
D. 583
B. 584
Questions 15-17: RMC manufactures quality furniture. The following table shows their monthly demand. Develop a forecast for August using the following techniques:
- Exponential smoothing using a = 0.35 assuming a forecast of 450 for the month of April.
A. 559
C. 558.9
B. 560
D. 556.7
A. 559
The following are the essential functions of business except:
A. Marketing
B. Quality Control
C. Finance
D. Production
B. Quality Control
- An average demand for a fixed sequence of periods including the most recent period.
A. Exponential Smoothing
B. Short Range Forecast
C. Moving Average
D. Weighted Average
C. Moving Average
Gonzales Jeans Company purchases denim from Hipolito T extile Mills. The Gonzales
uses 35,000 yards of denim per year to make jeans. The cost of ordering denim from the textile company is $500 per order. It costs Western $0.35 per yard annually to hold a yard from denim in inventory. Determine the optimal number of yards of denim the company should order.
A. 10,000
B. 12,000
C. 14,000
D. 15,000
A. 10,000
A computerized system that plans all the resources necessary for manufacturing, including financial and marketing analysis, feedback loops, and overall business plan.
A. Enterprise Resource Planning
B. Manufacturing Resource Planning
C. Manufacturing Resource Planning
D. Materials Requirements Planning
B. Manufacturing Resource Planning
Movements in demand that are not predictable and follow no pattern.
A. Seasonal factors
B. Tracking signal
C. Random variations
D. Seasonal patterns
C. Random variations
An assembly requires the item components: a base and housing. A base requires two rivets
and two bearings. Housing requires three castings and two rivets; a casting requires four rivets and four bearings. How much of each item should you have if you need 100 assemblies with no inventory on hand?
A. 100 bases, 100 housings, 300 castings, 1500 bearings, and 1600 rivets
B. 200 bases, 100 housings, 300 castings, 1400 bearings, and 1600 rivets
C. 100 bases, 100 housings, 300 castings, 1400 bearings, and 1600 rivets
D. 100 bases, 100 housings, 200 castings, 1300 bearings, and 1600 rivets
C. 100 bases, 100 housings, 300 castings, 1400 bearings, and 1600 rivets
The Economic Production Quantity answers the questions:
A. How much to produce and when to produce
B. What to order and when to order
C. How much to order and when to order
D. How many to produce and what to order
A. How much to produce and when to produce