DePaul University MGT301 final exam

Q2

Control charts for variables are based
on data that come from
a. acceptance sampling
b. individual items
c. averages of small
samples
d. averages of large samples
e. the entire lot

Q3

When a sample measurement falls inside the control limits, it means
that
a. each unit manufactured is good enough to sell
b. the process limits cannot be determined statistically
c. the process output exceeds the requirements
d. if
there is no other pattern in the samples, the process is in control
e. the process output does not fulfill the requirements

Question 4 0
/ 1 point

The upper and lower limits for diving ring diameters made by
John’s Swimming are 40 and 39 cm. John took 11 samples with the following
average diameters:

Is the process in control?

No,
there is a distinguishable pattern to the samples.

No, the range is not in control.

No, some diameters exceeded the control limits.

Yes, no diameters exceeded the control limits.

Question 5

Which of the following statements about the basic EOQ model
is true?

If the ordering cost were to double, the EOQ would rise.

If annual demand were to double, the EOQ would increase.

If the holding cost were to increase, the EOQ would fall.

If annual demand were to double, the number of orders per
year would increase.

All of
the above statements are true.

What is the main reason why a Manufacturer prefers a larger
order size than its Retailers?

The Manufacturer’s unit holding cost is larger than the
Retailers’.

The
Manufacturer’s unit order/set-up cost is larger than the Retailers’.

The Retailers’ unit holding cost is larger than the
Manufacturer’s.

Question

Keeping a product generic as long as possible before customizing is
known as
a.
postponement
b. keiretsu
c. channel assembly
d. forward integration
e. backward integration

Question

Estimate
the inventory turnover from the above data.

Explain under which
conditions your postponement example provides an improvement in terms of
operational efficiency & costs