Business Finance Assignment Questions

Question 1    In addition to correcting substandard work, employees have an ethical obligation to __________ the quality problem as well.    prevent    offset    report    standardize    redesign 3 points    Question 2    ISO 9000 currently stresses _____ of a certified organization.    minimizing harmful environmental effects    product diversity    inclusion of reused components in the office equipment    a minimum of four supervisory levels    continual improvement 3 points    Question 3    The quality certification that deals primarily with conformance to customer requirements is ISO __________; ISO __________ is concerned primarily with the organization’s effect on the environment.    9000; 14000    24700; 9000    14000; 9000    9000; 24700    14000; 24700 3 points    Question 4    Warranty service, processing of complaints, and costs of litigation are examples of:    internal failure costs.    external failure costs.    appraisal costs.    prevention costs.    replacement costs. 3 points    Question 5    Managers have obligations to a wide variety of stakeholders such as shareholders, employees, and customers. When considering outsourcing production to offshore suppliers, managers have to weigh: (I) cost benefits that might make shareholders wealthier. (II) quality issues that might make firms less productive and/or products riskier. (III) the investments already tied up in relationships with existing suppliers.    I    II    III    I and II only    I, II, and III 3 points    Question 6    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) 1 495 500 505 500 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 that service life is out of control when it is actually under control (Type I error)?    0.0026    0.0456    0.3174    0.6826    0.9544 3 points    Question 7    If a process is performing as it should, it is still possible to obtain observations which are outside of which limits?    (I) tolerances (II) control limits (III) process variability    I    II    I and II    II and III    I, II, and III 3 points    Question 8    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) 1 495 500 505 500 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?    sample 1    sample 2    sample 3    both samples 2 and 3    all samples are in control 3 points    Question 9    A quality analyst wants to construct a control chart for determining whether three machines, all producing the same product, are in control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results:    Machine Measurements #1 17 15 15 17 #2 16 25 18 25 #3 23 24 23 22 ________________________________________  For upper and lower control limits of 23.29 and 16.71, which machine(s), if any, appear(s) to have an out-of-control process mean?    machine #1    machine #2    machine #3    all of the machines    none of the machines 3 points    Question 10    The traditional view is that the optimum level of inspection is where the:    cost of inspection is minimum.    cost of passing defectives is minimum.    total cost of inspection and defectives is maximum.    total cost of inspection and defectives is minimum.    difference between inspection and defectives costs is minimum. 3 points    Question 11    At XYZ Corp., the master schedule reflects the fact that 50 percent of its output is product version A, 30 percent is version B, and 20 percent is version C. Suppose that over the coming year planned aggregate production is for 10,400 units. Once the production plan is disaggregated evenly throughout the year, what will the weekly production for version A be (assume 52 weeks per year)?    1,000    200    400    100    50 3 points    Question 12    Information for firm ABC:       Inventory at the end of April, 2008: 200 units Expected demand during April, 2008: 50 units Production expected during April, 2008: 100 units ________________________________________   What was the inventory at the end of March 2008?    350    250    150    50    400 3 points    Question 13    One option for altering the availability of manufacturing capacity is:    pricing.    promotion.    back orders.    inventories.    yield management. 3 points    Question 14    A firm has 56 units of product X on hand. Forecasts of demand are for 20 units per week. An MPS quantity of 100 units is planned to arrive in period 3. Customer orders are 24 for period 1, 18 for period 2, and 15 for period 3.  What is the projected on-hand inventory at the end of period 2?    14    32    12    20    impossible to say without more information 3 points    Question 15    The direct result of disaggregating the aggregate plan is the:    marketing plan.    production plan.    rough-cut capacity plan.    master schedule.    material requirements plan. 3 points    Question 16    Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week 6. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot), and quantities on hand:   Deluxe Easter Basket BOM Lead Time On-Hand  Deluxe Easter Basket 1 week 10  Dark Chocolate Truffles (2 per) 2 weeks 30  Carved Chocolate Eggs (4 per) 1 week 50  ________________________________________  Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs.  What is the net requirement for dark chocolate truffles to fill this order?    100    140    150    180    200 3 points    Question 17    In MRP, scheduled receipts are:    identical to planned-order receipts.    identical to planned-order releases.    open orders (that is, ordered before the first time bucket, but not delivered yet).    net requirements.    available-to-promise inventory. 3 points    Question 18    Which is true of a net-change system?    It is a batch-type system which is updated periodically.    It is usually run at the beginning of each month.    The production plan is modified to reflect changes as they occur    It is used to authorize the execution of planned orders.    It indicates the amount and timing of future changes. 3 points    Question 19    The MRP input listing the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product is the:    master production schedule.    bill of materials.    inventory records.    assembly time chart.    net requirements chart. 3 points    Question 20    Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week 6. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot), and quantities on hand:   Deluxe Easter Basket BOM Lead Time On-Hand  Deluxe Easter Basket 1 week 10  Dark Chocolate Truffles (2 per) 2 weeks 30  Carved Chocolate Eggs (4 per) 1 week 50  ________________________________________  Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs.   If the firm is using a fixed-period lot size of two periods, what is the order size for the first order?    120    200    280    160    150 3 points    Question 21    Quality of design refers to the intention of the designers to include or exclude certain features in a product or service based on marketing and other information.  True   False  3 points    Question 22    A lower control limit must by definition be a value less than an upper control limit.  True   False  3 points    Question 23    Ultimately the overriding factor in choosing a strategy in aggregate planning is overall cost.  True   False  3 points    Question 24    Lumpy demand for components results primarily from the periodic scheduling of batch production.  True   False  3 points    Question 25    The gross requirements value for any given component is equal to the net requirements of that component’s immediate parent multiplied by the quantity per parent.  True   False