1. (16 points) Circle True or False as it relates to each statement. Variation t

Question

1. (16 points) Circle True or False as it relates to each statement. Variation that is inh True False a) erent in a production process itself is called common cause variation b) The f plant location minimizes the sum of distances from the new plant to existing facilities. True False ) ime serics orecasting models make predictions about the future based on analysis of past data. True False Inventory is defined as the stock of any item or resource used in an organization. True False d) only useful for monitoring performance that deals with continuous variables. True False D The factor method is used when multiple dimensions have to be considered in selecting a site. True False In the weighted moving average forecasting model, the weights must add up to one times the number of data points True False g) h) The e-chart tracks the proportion of defectives. True F ) Process controlds concerned with monitoring quality after the product or service has been produced. True False The cost of storing an item in inventory isindependent of the duration of storage. True False k) The factor method is used for selecting the best mode of transportation True False

Explanation / Answer

Ans a) True .

Explanation: This classification of process variations was first made by statistitians Walter A. Shewhart and W. Edwards Deming. Those variations that do not require a special cause / exceptional circumstances to occur and are naturally a part of any production process are called common cause variation. These are expected variations since no practical process can be 100% efficient or perfect.

Ans b) True

Explanation: The aim of centroid method is to minimise overall transportation / distribution costs. Using geometrical formulae of location of new plant and existing facilities like raw material storage, finished goods etc, it reduces overall cost of transit.

Ans c) True

Explanation:  Usually data collected over regular periods of time, i.e monthly, quarterly, yearly, daily or hourly tabulations are used for future predictions about a process or product or service. These are called time-series data. They help analysts to create a predictive trendline for the future.

Ans d) True

Explanation:  Any raw material, WIP (work-in-process), finished goods or resources held by the company as stock can be qualified as inventory.

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