Supply Chain Management: Questions and Answers
Chapter 6—Resource Planning Systems
TRUE/FALSE
1. The resource and operations planning done by operations managers is intended to balance capacity and output.
T
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Supply Chain Management: Questions and Answers
Chapter 6—Resource Planning Systems
TRUE/FALSE
1. The resource and operations planning done by operations managers is intended to balance capacity and output.
T PTS: 1
2. MRP is the production planning system intended to develop long-range plans (more than a year away) concerning product families manufactured by the organization.
F PTS: 1
3. The three basic production strategies for addressing the aggregate planning problem are the capacity production strategy, the level production strategy, and the chase production strategy.
F PTS: 1
4. The three basic production strategies for addressing the aggregate planning problem are the chase production strategy, the level production strategy, and the mixed production strategy.
T PTS: 1
5. System nervousness is when even small changes to upper-level production plans cause major changes in lower-level production plans.
T PTS: 1
6. System nervousness is a common business culture phenomenon where employees are unsure how to utilize a newly implemented ERP system.
F PTS: 1
7. An MRP system has a subassembly with a lot size of 100 units. In terms of filling future requirements, this would mean that planned order releases for the subassembly would always have to be exactly 100 units.
F PTS: 1
8. The process of converting a parent item's planned order releases into component gross requirements is referred to as the MRP explosion.
T PTS: 1
9. The process of converting a parent item's planned order releases into component gross requirements is referred to as the ERP implosion.
F PTS: 1
10. ERP systems, more commonly known as enterprise relationship programming systems, are the tools organizations use in order to efficiently share information with their supply chain members in hopes that the organization's resources, as well as a the resources of their supply chain partners, are fully utilized to meet demand, while minimizing supply chain inventories.
F PTS: 1
11. A typical ERP system attempts to tie together a variety of systems related to production and inventory planning, purchasing, logistics, human resources, finance, accounting, customer relationship management, and supplier relationship management by means of a single centralized database.
T PTS: 1
12. A typical ERP system attempts to tie together a variety of systems related to production and inventory planning, purchasing, logistics, human resources, finance, accounting, customer relationship management, and supplier relationship management by means of a multiple databases that are decentralized for both competitive and security purposes.
F PTS: 1
13. Key requirements to a successful ERP implementation include adequate computer support, accurate system inputs, and flexible business processes that can conform to the approaches used in the ERP software logic.
T PTS: 1
14. Lack of communication between the implementing firm and its ERP software provider can become a major hindrance for a successful implementation.
T PTS: 1
15. Organizations that choose to discontinue use of old and inefficient computer and information systems in favor of adopting a modern ERP system are said to have implemented a decentralized database solution.
F PTS: 1
16. MRP systems are simply a more modern version of the ERP systems of the 1980's.
F PTS: 1
MULTIPLE CHOICE
1. Which of the following seeks to develop short range plans seeking to effectively and efficiently manage components and/or subassemblies over time period of few days to a few weeks?
a. RRP
b. MPS
c. RCCP
d. MRP
D PTS: 1
2. Which of the following basic production strategies used for addressing the aggregate planning problem would work best with make-to-order manufacturing firms?
a. Capacity Production Strategy
b. Chase Production Strategy
c. Level Production Strategy
d. Backlog Production Strategy
B PTS: 1
3. Which of the following is NOT one of the three basic methods used to calculate the available-to-promise quantities?
a. Discrete available-to-promise
b. Cumulative available-to-promise without looking ahead
c. Indiscrete available-to-promise
d. Cumulative available-to-promise with looking ahead
C PTS: 1
4. Which of the following could be considered a master production schedule for a service firm?
a. The reservation book utilized by a restaurant
b. The employee shift schedule utilized by an auto shop
c. A hospital patient's personal information fill
d. The recipe book utilized by a chef at a restaurant
A PTS: 1
5. Which of the following is an engineering document that shows an inclusive listing of all the component parts and assemblies making up the final product?
a. Master Production Schedule
b. Bill of Materials
c. Distribution Requirement Plan
d. Resource Requirement Plan
B PTS: 1
6. Which number should be placed in the spot presently filled with the X?
Item ABC-Level 1 1 2 3 4
Gross Requirements 20 20 50 30
Schedule Receipts 25
Projected on Hand Inventory 30 10 15 40 10
Net Requirements
Planned Order Releases X
Q = 25; LT = 2; SS = 10
a. 50
b. 75
c. 10
d. 20
B PTS: 1
7. According to the textbook, which of the following is considered a reason that ERP implementations fail?
a. The organization may lack the necessary workforce and expertise to properly implement the system
b. Top management becomes overcommitted to the point where they constantly encourage the employees during implementation
c. Organizations tend to spend too much time and money training their employees on the new system
d. All of these
A PTS: 1
8. While ERP is a relatively new technology, it has grown rapidly since the early 1990s. Which of the following is the reason that has contributed to its rapid growth?
a. The year 2000 millennium bug
b. The trend for companies to eliminate their supply chain partners
c. The increased use of email during the 1990's
d. All of these
A PTS: 1
9. Which of the following is considered an advantage/benefit of utilizing in ERP system?
a. Utilizes multiple databases in order to provide up-to-date information
b. Increases the privacy level within an organization, thus functional departments can more easily protect their data from supporting or dependent functional departments
c. Allows organizations to more easily communicate information about operational changes to supply chain members
d. Increases the bullwhip effect
C PTS: 1
10. Organizations that choose to implement one single system with all of the desired applications from a single vendor versus choosing to implement the best applications or modules for each of the different functional departments associated with the supply chain is said to have chosen a(n):
a. Best-of-breed solution
b. Elite integrator solution
c. Single integrator solution
d. Premier application solution
C PTS: 1
11. Which of the following is considered an advantage/benefit of utilizing an ERP system?
a. Fairly inexpensive to purchase and implement
b. Enables the company to utilize a single centralized database system, thus eliminating duplicate data entry.
c. Flexible enough that it allows different companies with different business models to mold the new ERP system to fit the company's business model
d. All of these
B PTS: 1
12. Not all ERP software is designed to provide the exact same tools, nonetheless, some of the common modules usually included in ERP software packages include:
a. Customer Relationship Management and human resource management
b. Human resource management and accounting and finance
c. Supplier relationship management and customer relationship management
d. All of these
D PTS: 1
13. Organizations that choose to implement the best applications or modules for each of the different functional departments associated with the supply chain versus choosing to implement one single system with all of the desired applications from a single vendor is said to have chosen a(n):
a. Best-of-breed solution
b. Elite integrator solution
c. Multi-modular solution
d. Premier application solution
A PTS: 1
14. Which number should be placed in the spot presently filled with the X?
Item ABC-Level 1 1 2 3 4
Gross Requirements 40 65 35 10
Schedule Receipts 60
Projected on Hand Inventory 50 30 25 20 10
Net Requirements
Planned Order Releases X
Q = 30; LT = 2; SS = 10
a. 10
b. 15
c. 30
d. 60
C PTS: 1
Chapter 7—Inventory Management
TRUE/FALSE
1. The four broad categories of inventories are raw materials, work-in-process, subassemblies, and finished goods.
F PTS: 1
2. The ABC inventory control system categorizes inventory items into three groups, A, B, and C. A items are given highest priority, while C items have the lowest priority. Prioritization may be based on annual dollar usage, shelf life, or sales volume.
T PTS: 1
3. The EOQ, also known as the economic order quantity, is the optimal order size in terms of cost because it minimizes the annual total inventory cost. The EOQ is the lot size where inventory holding costs equal annual ordering costs.
T PTS: 1
4. The total annual inventory cost is the sum of the annual purchase cost, the annual holding cost, the annual capacity cost, and the annual ordering cost.
F PTS: 1
5. Service parts sold to the repair shops are examples of dependent demand.
F PTS: 1
6. Inventory turnover ratio shows how many times a firm turns over its inventory in an accounting period. Faster turnovers are generally viewed as negative because it indicates instability in the firm's inventory level.
F PTS: 1
7. The ABC inventory matrix shows an ABC inventory classification based on annual usage on the vertical axis and an ABC inventory classification based on physical inventory on the horizontal axis.
T PTS: 1
8. The ABC inventory matrix is used to monitor whether the firm is stocking the correct type of inventory and to detect obsolete stock.
T PTS: 1
9. Radio Frequency Identification (RFID) is considered an eventual replacement of bar code because of its ability to store huge amount of information to differentiate specific unit of good.
T PTS: 1
10. Electronic Product Code (EPC) is the only RFID standard adopted by the commercial sector and the U.S. Department of Defense.
F PTS: 1
11. An RFID reader does not require direct line of sight to read the information stored in an RFID tag.
T PTS: 1
12. Relaxing the constant price assumption of the classic EOQ model results in the Quantity Discount model.
T PTS: 1
13. Relaxing the instantaneous replenishment assumption of the EOQ model results in the Economic Manufacturing Quantity model.
T PTS: 1
14. The optimal order quantity for the quantity discount model may exist at a price breakpoint.
T PTS: 1
15. In the Economic Manufacturing Quantity model, the annual consumption rate must be higher than the annual production rate.
F PTS: 1
16. In the Economic Manufacturing Quantity model, average inventory is one-half of the economic manufacturing quantity.
F PTS: 1
17. When demand and lead time are constant, reorder point is the demand during lead time.
T PTS: 1
18. The continuous review inventory system is more expensive to monitor compared to the periodic review inventory system.
T PTS: 1
19. The (s, S) continuous review inventory system orders the same quantity Q when physical inventory reaches the reorder points.
F PTS: 1
20. The periodic inventory review system reviews physical inventory at specific points in time.
T PTS: 1
21. Cycle counting counts the physical inventory to ensure that physical inventory matches against records.
T PTS: 1
MULTIPLE CHOICE
1. Which of the following is NOT an assumption of the classic Economic Order Quantity (EOQ)?
a. Lead time is known and constant.
b. Demand is known and constant.
c. Instantaneous replenishment.
d. There is no quantity discount.
e. The production rate must be greater than the consumption rate.
E PTS: 1
2. If an item is ordered at its economic order quantity, the annual carrying cost should be:
a. slightly less than the annual ordering cost.
b. equal to the annual ordering cost.
c. twice the annual purchase price.
d. the square root of the annual ordering cost.
e. cannot be determined because there is insufficient information provided.
B PTS: 1
3. What inventory factor may be omitted from the basic EOQ derivation because it is a constant?
a. Annual order-processing cost
b. Annual purchase cost of goods
c. Annual capital cost
d. Annual setup costs
e. all of these
B PTS: 1
4. If usage is constant, as order size increases, annual order costs ____ but annual carrying costs ____.
a. increase ..... increase
b. decrease ..... decrease
c. increase ..... decrease
d. decrease ..... increase
e. remain the same ..... increase
D PTS: 1
5. Which one of the following statements regarding the economic order quantity is true?
a. The EOQ model combines several different item orders to the same supplier.
b. If an order quantity is larger than the EOQ, the annual holding cost exceeds the annual ordering cost.
c. The EOQ model assumes a variable demand pattern.
d. When the interest rate drops, both the holding cost and the EOQ decreases.
e. EOQ is used to determine the optimum shipping quantity.
B PTS: 1
6. The cost of a widget is $5, and the carrying rate is 40%; cost of processing an order is $25, annual demand is for 400 widgets, and supply and usage patterns are stable. What is the economic order quantity (EOQ)?
a. 5
b. 20
c. 25
d. 100
e. 200
D PTS: 1
7. The cost of a widget is $5, and the carrying rate is 40%; the cost of processing an order is $25, the annual demand is 400 widgets, and supply and usage patterns are stable. Assuming you are ordering at the lot size of 200 units per order (not the EOQ quantity). What is the annual ordering cost?
a. $10
b. $25
c. $50
d. $200
e. Cannot be determined based on the given information.
C PTS: 1
8. Companies hold a supply of inventory for all of the following reasons EXCEPT:
a. meet variation in product demand
b. increase production change/setup costs
c. allow production scheduling flexibility
d. purchase in bulk to take advantage of quantity discounts
e. maintain independence of operations (Decoupling)
B PTS: 1
9. Which of the following cannot be considered as independent demand items?
a. wholesale and retail merchandise items
b. maintenance, repair, and operating supplies at a manufacturing company
c. maintenance, repair, and operating supplies at a service firm
d. raw material items that become part of the final product at a manufacturing firm
e. service industry items such as hospital supplies or office supplies for law firms
D PTS: 1
10. Which of the following is not an example of an ordering cost for products purchased from a supplier?
a. the cost of transmitting the order
b. the cost of receiving the product
c. the cost associated with processing the invoice
d. the opportunity cost of not ordering from a least cost supplier
e. the cost of handling the product
D PTS: 1
11. In the absence of demand and delivery lead time variation, if demand is eight per day and purchase lead time is four days, the reorder point is:
a. 3.
b. 8.
c. 32.
d. 35.
e. 56.
C PTS: 1
12. In the absence of demand and delivery lead time uncertainty, reorder point is the ____.
a. demand during lead time
b. safety stock
c. sum of demand during lead time and safety stock
d. economic order quantity
e. average inventory
A PTS: 1
13. In the presence of demand and delivery lead time uncertainty, reorder point is the ____.
a. demand during lead time
b. safety stock
c. sum of demand during lead time and safety stock
d. economic order quantity
e. average inventory
C PTS: 1
14. Which of the following is a disadvantage of excessive inventory?
a. It hides production and other problems.
b. It leads to higher inventory ordering cost.
c. It leads to lower average inventory.
d. It eliminates cycle stock.
e. It reduces the need to conduct cycle count.
A PTS: 1
15. The EOQ model with quantity discounts attempts to determine
a. what is the lowest purchasing price.
b. whether to use fixed-quantity or fixed period order policy.
c. how many units should be ordered.
d. what is the shortest lead time.
e. what is the lowest amount of inventory necessary to satisfy a certain service level.
C PTS: 1
16. ____, such as lubricants for machine, are used in the production process, but do not become parts of the final products.
a. Raw materials
b. Work-in-process
c. Maintenance, repair and operating supplies
d. Finished goods
e. Cycle stock
C PTS: 1
17. Which of the following is not an assumption of the economic order quantity model?
a. Demand is known, constant, and independent.
b. Lead time is known and constant.
c. Quantity discounts are not possible.
d. Production and use can occur simultaneously.
e. The only variable costs are setup cost and holding (or carrying) cost.
D PTS: 1
18. The primary purpose of the basic economic order quantity model is
a. to calculate the reorder point, so that replenishments take place at the proper time
b. to minimize the sum of carrying cost and holding cost
c. to maximize the customer service level
d. to minimize the sum of setup cost and holding cost
e. to calculate the optimum safety stock
D PTS: 1
19. Dependent demand and independent demand items differ in that
I. for any product, all components are dependent-demand items
II. the need for independent-demand items is forecast
III. the need for dependent-demand items is calculated
a. I only
b. I & II only
c. I & III only
d. II & III only
e. I, II & III
E PTS: 1
20. If the actual order quantity is the economic order quantity in a problem that meets the assumptions of the model, the average amount of inventory on hand
a. is zero
b. is affected by the amount of product cost
c. is one-half of the economic order quantity
d. is smaller than the holding cost per unit
e. cannot be determined from the given information
C PTS: 1
21. In the quantity discount model, the optimum order quantity that minimizes annual total costs may exist at:
I. the economic order quantity
II. the economic manufacturing quantity
III. a price break point
IV. the average inventory
V. the reorder point
a. I only
b. II only
c. III only
d. I and III only
e. II and III only
D PTS: 1
22. Which of the following would most likely be considered a dependent demand item?
a. Bicycle tires used to assemble a bicycle
b. Television (TV)
c. Couch
d. Lawn Mower
A PTS: 1
Figure 7-1
Use the graph below to answer the next question.
23. Which of the following is TRUE in relation to Figure 7-1?
a. Curve J represents the annual ordering cost, and curve K represents the annual holding cost.
b. A lot size of G has an annual total cost of about C.
c. At lot size H both holding costs and ordering costs exceed the annual total cost.
d. The EOQ is most likely lot size G, and curve L is the annual ordering cost curve.
D PTS: 1
24. Use this information below to calculate the optimal order quantity:
Annual demand for backpacks is 43,000 units
The cost to place an order is $220
The per unit cost of the item is $60.00
The annual holding rate is 37.5%
Choose the closest answer.
a. 920 units
b. 250 units
c. 710 units
d. 830 units
A PTS: 1
25. If your company had an annual purchase cost of items equal to $2,000,000, an annual holding cost of $150,000 and an annual ordering cost of $750,000 this scenario would reveal that:
a. Your fixed lot size was lower than the EOQ
b. Your fixed lot size was equal to the EOQ
c. Your fixed lot size was higher than the EOQ
d. Nothing because there is insufficient information to discern where the EOQ would be.
A PTS: 1
ABC Inventory Matrix
Use the graph below to answer the next question(s).
26. In the ABC Inventory Matrix, inventory in area X suggests
a. under-stocked A and B items.
b. under-stocked B and C items.
c. overstocked A and B items.
d. over-stocked B and C items.
e. inventory matches sales.
A PTS: 1
27. In the ABC Inventory Matrix, inventory in area Y suggests
a. under-stocked A and B items.
b. under-stocked B and C items.
c. overstocked A and B items.
d. over-stocked B and C items.
e. inventory matches sales.
E PTS: 1
28. In the ABC Inventory Matrix, inventory in area Z suggests
a. under-stocked A and B items.
b. under-stocked B and C items.
c. overstocked A and B items.
d. over-stocked B and C items.
e. inventory matches sales.
D PTS: 1
29. Which of the following is not a major advantage of RFID over bar code technology?
a. Ability to store huge amount of information on the RFID tag.
b. Cost of the RFID tag.
c. Ability to identify goods at the item level.
d. Direct line of sight is not needed for the RFID reader to read an RFID tag.
B PTS: 1
30. The revenue for a firm is $1,500,000. Its cost of revenue is $800,000 and its average inventory for the year is $50,000. What is the inventory turnover?
a. 1.875 times
b. 13.7 times
c. 16 times
d. 30 times
C PTS: 1
31. Adagio Store stocks a part that has a normal distribution demand pattern during the reorder period. Its average demand during lead time is 600 units and the standard deviation of demand during lead time is 60 units. What is the statistical reorder point that result in 5 percent stockouts (Z = 1.65)?
a. 99 units
b. 600 units
c. 699 units
d. 990 units
e. 1050 units
C PTS: 1
32. The UNLV Bookstore sells a unique calculator to college students. The demand for this calculator has a normal distribution with an average daily demand of 20 units and a standard deviation of 4 units per day. The lead time for this calculator is very stable at 9 days. Compute the statistical reorder point that results in a 95 percent in-stock probability (Z = 1.65).
a. 19.8 units
b. 80 units
c. 180 units
d. 199.8 units
e. 720 units
D PTS: 1
Chapter 8—Process Management: Lean Production and Six Sigma Quality Issues in Supply Chain Management
TRUE/FALSE
1. Lean production is an operating philosophy or mindset that essentially attempts to minimize the impact of system variability and flaws in forecasting through the use of high safety stock inventories.
F PTS: 1
2. Lean production and Six Sigma quality are essentially two terms that mean the same thing.
F PTS: 1
3. Channel integration is a supply chain term which refers to how a manufacturing firm within a supply chain attempts to create strategic alliances not only with their immediate suppliers but also with the suppliers' suppliers and in the other direction not only reaching out to its immediate customers but also the customer's customers.
T PTS: 1
4. Manufacturing layouts for an organization practicing lean manufacturing principles seek to maximize operator visibility, maintain an effective and efficient flow of people and materials, and minimize the distance that work in process must travel from one processing center to another processing center.
T PTS: 1
5. Organizations practicing lean production often increase their inventory levels in the long-run in order to create a cushion against variability so that they can investigate and eliminate the weaknesses of their system.
F PTS: 1
6. The objective of the Deming Prize is to stimulate quality and productivity improvement among US firms.
F PTS: 1
7. W. Edwards Deming and Shigeo Shingo were two of the notables who helped Toyota develop the Toyota Production System.
T PTS: 1
8. When designing a manufacturing or service process, or even during the reengineering of such a process, a Pareto chart would be an essential tool for evaluating the process in terms of its action elements, waiting periods, and process flow.
F PTS: 1
9. Statistical process control uses control charts to monitor the outputs of a process to identify variations due to assignable causes from variations due to common causes.
T PTS: 1
10. The five S's refer to various safety activities practiced by Toyota.
F PTS: 1
11. The primary design objective with lean layouts is to reduce wasted movements of workers, customers, and/or work-in-process
T PTS: 1
12. Carbon neutral organizations do not produce any carbon emissions.
F PTS: 1
13. Six Sigma is a quality improvement concept developed by Motorola.
T PTS: 1
14. Deming's 14 points actually conflict with many Six Sigma concepts.
F PTS: 1
15. For a certain loaf of bread it was found that it measured 16 inches in length, 4 inches in height, and 4 inches across, it was also found to weigh 1 pound; all of these measures can be considered attribute data.
F PTS: 1
16. Acceptance sampling is a statistical technique that enables a reject or accept decision to be made based on information obtained from a representative sample drawn from the population.
T PTS: 1
MULTIPLE CHOICE
1. Modern supply chains simultaneously pursue the goals of high-quality, fast response, and low cost because customers nowadays want both high levels of quality and responsiveness. A key manufacturing philosophy that emphasizes waste elimination and minimizing inventories to expose problems is:
a. Just-in-time
b. Quick Response
c. Efficient Consumer Response
d. Total Quality Management
A PTS: 1
2. Japanese manufacturing firms sometimes create cooperative coalitions with their suppliers in order to provide the suppliers with a certain degree of financial support. What are these cooperative coalitions called?
a. Jidoka Networks
b. Keiretsu Networks
c. Kanban Networks
d. Kaizen Networks
B PTS: 1
3. Which of the following are among the most important elements of the lean production philosophy?
a. Quality inspections and a standardized product line
b. Fully automated assembly lines and a large supplier base
c. Large inventories and quality inspections
d. Waste reduction and value enhancement
D PTS: 1
4. Which company probably played the largest role in the development of the Toyota Production System?
a. General Motors
b. Ford
c. Chrysler
d. Boeing
B PTS: 1
5. Lean production systems are sometimes referred to as pull systems because demand from customers activates the production actions of the manufacturing facilities. In order for this demand to be communicated to everyone in the supply chain/manufacturing facility a signal must be passed from downstream processing centers to the upstream processing centers. This system of relaying signals is referred to as a:
a. Kanban Pull System
b. Semaphore System
c. Keiretsu Network
d. TQM Network
A PTS: 1
6. Which of the following is NOT consistent with the lean philosophy?
a. Cross-training employees to increase processing flexibility
b. Developing a culture of continuous improvement within the organization
c. Increasing batch size to take advantage of economies of scale
d. Positioning WIP inventories near each processing center
C PTS: 1
7. Which of the following is NOT one of Toyota's seven wastes?
a. Excess inventories
b. Environmental waste
c. Waiting time
d. Scrap and rework
B PTS: 1
8. Which of the following best describes the five S's?
a. These were originally Japanese words relating to industrial housekeeping
b. Five ways to reduce inventories on the shop floor
c. These are five different kinds of manufacturing layouts
d. Refer to methods for reducing setup times
A PTS: 1
9. While the philosophy of Six Sigma means different things to different people and is practiced differently in different companies, according to the textbook, two of the more important and agreed-upon elements of Six Sigma are:
a. Minimizing inventories and increasing material flow
b. Focusing on the customer and workforce involvement
c. Rewarding employees and keeping defect rates below 2%
d. Minimizing inventories and keeping defect rates below 1%
B PTS: 1
10. Calculate the number of inventory containers required, given the following:
Demand rate = 10 parts per hour, Safety stock required = 15%
Container size = 5 parts, Time to cycle through entire system = 6 hours
a. 12
b. 13
c. 14
d. 15
C PTS: 1
11. Calculate the inventory container size required given the following:
Demand rate = 10 parts per hour, Safety stock required = 15%
Number of containers = 14, Time to cycle through entire system = 6 hours
a. 2 parts
b. 3 parts
c. 4 parts
d. 5 parts
D PTS: 1
12. Calculate the defects per million opportunities (DPMO) given the following:
Blake, owner of Blakester's T-shirt Shoppe, keeps track of customer complaints. For each T-shirt sold, there are four possible complaints: T-shirt shrinks, poor quality, design wears off, and doesn't fit right. Each week, Blake calculates the rate of T-shirt "defects" per total T-shirts sold, and then uses this information to determine his company's DPMO. During the past week, his company sold 1200 T-shirts. His company received 22 customer shrinkage complaints, 16 poor quality complaints, 12 design wears off complaints, 8 doesn't fit right complaints.
Calculate his firm's DPMO.
a. 69,600
b. 0.193
c. 58 106
d. 12,083
D PTS: 1
13. Which of the following quality gurus believed that companies should strive for zero defects and that quality was, in a sense, free since quality improvement programs invariably paid for themselves?
a. Juran
b. Deming
c. Baldrige
d. Crosby
D PTS: 1
14. The ISO certification standard for environmental management is:
a. ISO 9000
b. ISO 9005
c. ISO 14000
d. ISO 19000
C PTS: 1
15. A company that produces 8 pound bags of rice gathered 5 samples of 6 bags each. The weights of each bags' contents are listed below.
Bag Number
Sample 1 2 3 4 5 6
1 7.98 8.34 8.02 7.94 8.44 7.68
2 8.33 8.22 8.08 8.51 8.41 8.28
3 7.89 7.77 7.91 8.04 8 7.89
4 8.24 8.18 7.83 8.05 7.9 8.16
5 7.87 8.13 7.92 7.99 8.1 7.81
What would you plot on the x-bar chart for sample 2?
a. All of the following numbers: 8.33, 8.22, 8.08, 8.51, 8.41, 8.28
b. All of the following numbers: 8.34, 8.22, 7.77, 8.18, 8.13
c. Only 8.130
d. Only 8.305
D PTS: 1
16. A company sells eggs in boxes with 12 cartons and 12 eggs in each carton, thus there are 144 eggs in each box. The organization wants to construct a P-chart to track the proportion of broken eggs in each sample. If the company used one box of eggs in each sample in the dataset, what would be the centerline, upper control limit(UCL), and lower control limit(LCL) for the appropriate P-chart? (Use z = 3.) Choose the closest answer.
Sample Eggs Sample Eggs Sample Eggs
1 3 8 6 15 5
2 5 9 4 16 0
3 3 10 9 17 2
4 4 11 2 18 6
5 2 12 6 19 2
6 4 13 5 20 1
7 2 14 1 TOTAL 72
B PTS: 1
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 for Financial & Managerial Accounting, 15th Edition By Carl Warren.png)
