BSIE Production Management 4

Question 1

In the Theory of Constraints (TOC), the step of 'exploiting the constraint' means:

Accepted Answer

Maximizing throughput at the bottleneck with existing resources

Answer

Exploiting the constraint means getting the most out of the current bottleneck before investing in additional capacity.

Question 2

Which production planning technique time-phases gross requirements backward from the due date to determine order release dates?

Accepted Answer

Backward scheduling

Answer

Backward scheduling starts from the required completion date and subtracts lead times to establish when to start each operation.

Question 3

The 'bullwhip effect' in supply chains refers to:

Accepted Answer

Amplification of demand variability as orders move upstream

Answer

Small fluctuations in end-customer demand get amplified at each upstream stage, causing large order swings.

Question 4

In statistical process control (SPC), the control limits on an X-bar chart are typically set at:

Accepted Answer

±3 standard deviations from the process mean

Answer

Control limits are placed at ±3σ from the process mean, capturing 99.73% of natural process variation.

Question 5

A company uses continuous review inventory policy. The reorder point (ROP) is calculated as:

Accepted Answer

Average demand during lead time plus safety stock

Answer

ROP = (average demand rate × lead time) + safety stock, ensuring inventory doesn't run out before the next order arrives.

BSIE - Bachelor of Science in Industrial Engineering Practice Test