MGT 325 Exam 3

In the A-B-C system, the typical percentage of the number of items in inventory for A items is about:

In the A-B-C classification system, which account for 15% of the total dollar-volume for a majority of the inventory items would be classified as:

In the A-B-C classification system, items which account for 60% of the total dollar-volume for few inventory items would be classified as:

The EOQ model is most relevant for which one of the following?

Which is not a true assumption in the EOQ model?

A cycle count program will usually require that 'A' items be counted:

In the basic EOQ model, if annual demand doubles, the effect on the EOQ is:

In the basic EOQ model, if lead time increases from 5 to 10 days, the EOQ will:

In the basic EOQ model, an annual demand of 40 units, an ordering cost of $5, and a holding cost of $1 per unit per year will result in an EOQ of:

In the basic EOQ model, if D=60 per month, S=$12, and H=$10 per unit per month, EOQ is:

In the basic EOQ model, if annual demand is 50, carrying cost is $2, and ordering cost is $15, EOQ is approximately:

If average demand for an inventory item is 200 units per day, lead time is 3 days, and safety stock is 100 units, the reorder point is:

If no variations in demand or lead time exist, the ROP will equal:

Which one of the following isa implied by a "lead time" service level of 95%?

Which one of the following is implied by an "annual" service level of 95%?

Daily usage is exactly 60 gallons per day. Lead time is normally distributed with a mean of 10 days and a standard deviation of 2 days. What is the standard deviation of demand during lead time?

Lead time is exactly 20 days long. Daily demand is normally distributed with a mean of 10 gallons per day and a standard deviation of 2 gallons. What is the standard deviation of demand during lead time?

In a single-period model, if shortage and excess costs are equal, then the optimum service level is:

In a single-period model, if shortage cost is four times excess cost, then the optimum service level is percent.

In the single-period model, if excess cost is double shortage cost, the approximate stockout risk, assuming an optimum service level, is percent.

If, in a single-period inventory situation, the probabilities of demand being 1, 2, 3, or 4 units are .3, .3, .2, and .2, respectively. If two units are stocked, what is the probability of selling both of them?

If average demand for an item is 20 units per day, safety stock is 50 units, and lead time is four days, the ROP will be:

Suppose that usage of cooking oil at Harry's Fish Fry is normally distributed with an average of 15 gallons/day and a standard deviation of two gallons/day. Harry has just fired the manager and taken over operating the restaurant himself. Harry has asked you to help him decide how to reorder cooking oil in order to achieve a service level which is seven times the risk of stockout (7/8). Lead time is eight days. Assume that cooking oil can be ordered as needed.

A bakery's use of corn sweetener is normally distributed with a mean of 80 gallons per day and a standard deviation of four gallons per day. Lead time for delivery of the corn sweetener is normal with a mean of six days and a standard deviation of two days. If the manager wants a service level of 99 percent, what reorder point should be used?

A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would be the same as ordering cost. The production rate would be about double the usage rate.

Compared to the EOQ, the economic production quantity would be approximately:

A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would be the same as ordering cost. The production rate would be about double the usage rate.

Compared to the EOQ, the maximum inventory would be approximately:

The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to five percent of the cost of the beer.

At what point should he reorder Stein beer?

The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to five percent of the cost of the beer.

If he were to order 16 cases of Stein beer at a time, what would be the length of an order cycle?

The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to five percent of the cost of the beer.

If he were to order 16 cases of Stein beer at a time, what would be the average inventory level?

The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to five percent of the cost of the beer.

If he were to order 16 cases of Stein beer at a time, what would be the daily total inventory costs, EXCLUDING the cost of the beer?

The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to five percent of the cost of the beer.

What is the economic order quantity for Stein beer?

A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results:

Sample Service Life (hours)
1 195 500 505 500
2 525 515 505 515
3 470 480 460 470

90. What is the sample mean service life for sample 2?

A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results:

Sample Service Life (hours)
1 195 500 505 500
2 525 515 505 515
3 470 480 460 470

What is the mean of the sampling distribution of sample means when service life is in control?

A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results:

Sample Service Life (hours)
1 195 500 505 500
2 525 515 505 515
3 470 480 460 470

What is the standard deviation of the sampling distribution of sample means for whenever service life is in control?

A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results:

Sample Service Life (hours)
1 195 500 505 500
2 525 515 505 515
3 470 480 460 470

If he uses upper and lower control limits of 520 and 480 hours, what is his risk (alpha) of concluding service life is out of control when it is actually under control (Type I error)?

A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results:

Sample Service Life (hours)
1 195 500 505 500
2 525 515 505 515
3 470 480 460 470

If he uses upper and lower control limits of 520 and 480 hours, on what sample(s) (if any) does service life appear to be out of control?

The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results:
Instructor Number of Failures
Prof. A 13
Prof. B 0
Prof. C 11
Prof. D 16

What is the sample proportion of failures (p) for Prof. D?

The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results:
Instructor Number of Failures
Prof. A 13
Prof. B 0
Prof. C 11
Prof. D 16

What is the estimate of the mean proportion of failures for these instructors?

The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results:
Instructor Number of Failures
Prof. A 13
Prof. B 0
Prof. C 11
Prof. D 16

What is the estimate of the standard deviation of the sampling distribution for an instructor's sample proportion of failures?

The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results:
Instructor Number of Failures
Prof. A 13
Prof. B 0
Prof. C 11
Prof. D 16

What are the .95 (5% risk of Type I error) upper and lower control limits for the p-chart?

The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results:
Instructor Number of Failures
Prof. A 13
Prof. B 0
Prof. C 11
Prof. D 16

Using .95 control limits, (5% risk of Type I error), which instructor(s), if any, should he conclude is (are) out of control?

A Quality Analyst wants to construct a control chart for determining whether four machines, all producing the same product, are under control with regard to a particular quality attribute. Accordingly, she inspected 1,000 units of output from each machine in random samples, with the following results:

Machine Total Defectives
#1 23
#2 15
#3 29
#4 13

What is the sample proportion of defectives for machine #1?

A stint for use is coronary surgery requires a special coating. Specifications for this coating call for it to be at least 0.05 millimeters but no more than 0.15 millimeters.

Suppose the criterion for evaluating this process is that the appropriate capability index must be at least 1.3.
With a long-run process mean of 0.09 and a standard deviation of 0.015, is this process capable?

Studies on a bottle-filling machine indicates it fills bottles to a mean of 16 ounces with a standard deviation of 0.10 ounces. What is the process specification, assuming the Cpk index of 1?

Studies on a machine that molds plastic water pipe indicate that when it is injecting 1-inch diameter pipe, the process standard deviation is 0.05 inches. The one-inch pipe has a specification of 1-inch plus or minus 0.10 inch. What is the process capability index (Cpk) if the long-run process mean is 1 inch?

The specification limit for a product is 8 cm and 10 cm. A process that produces the product has a mean of
9.5 cm and a standard deviation of 0.2 cm. What is the process capability, Cpk?

The specifications for a product are 6 mm ± 0.1 mm. The process is known to operate at a mean of 6.05 with a standard deviation of 0.01 mm. What is the Cpk for this process?

138. A process results in a few defects occurring in each unit of output. Long-run, these defects should be monitored with___________________.

When a process is in control, it results in there being, on average, 16 defects per unit of output. C-chart limits of 8 and 24 would lead to a ________________ chance of a Type I error.

When a process is in control, it results in there being, on average, 16 defects per unit of output. C-chart limits of 4 and 28 would lead to a chance of a Type I error.

A tool that is not used for quality management is ________________.

The four dimensions of quality that are sometimes used to determine fitness for use of a product are

A tool that depicts process variation graphically is a(n) .

Which isn't a cost of quality?

Lost production time, scrap, and rework are examples of

Warranty service, processing of complaints, and costs of litigation are examples of

Costs of inspectors, testing, test equipment, and labs are examples of

Loss of business, liability, productivity and costs are consequences of

Quality planning and administration, quality training, and quality control procedures are examples of

ISO 9000 standards do not have a requirement for

A quality circle is

ISO 9000 currently requires of a certified organization

The quality control improvement tool which distinguishes between the "important few" and the "trivial many" is

TQM stands for:

Which of the following is an element of TQM?

85. Management behaviors supporting an organizational culture that encourages continuous improvement include which of the following?
(I) develop a vision statement for the organization
(II) develop a reward system that promotes the philosophy
(III) institute continuous training programs
(IV) make decisions that adhere to the philosophy

The tool that is useful in the collection and organization of data is:

A quality improvement technique that involves the sharing of thoughts and ideas in a way that encourages unrestrained collective thinking is:

In order for TQM to be successful, it is essential that most of the organization be

The typical difference between "quality circles" and "continuous improvement teams" is

Which of the following is not a goal of process improvement?