1) Productivity is defined as the ratio of input to output.
2) People who work in the field of operations should have skills that include both
knowledge and people skills.
3) As long as the bottleneck operations are used effectively, idle time in non-bottleneck
operations will not affect the overall productivity of the system.
4) One approach to extending a product’s life cycle is to promote alternate uses of the
product.
5) In lean operations, a responsibility of the cross-trained worker is to check the quality
of the work of others.
6) Standardization can at times lead to serious difficulties and competitive struggles,
particularly when systems are running under different conditions.
7) A control chart involves setting action limits for cumulative forecast error.
8) Concurrent engineering is another term for sequential development.
9) Forecasting techniques generally assume an existing causal system that will continue
to exist in the future.
10) Managers should most often rely on quantitative techniques for important decisions
since quantitative approaches result in more accurate decisions.
11) The learning curve principle would apply to the number of students in a class: a
class twice as large will learn 80 percent faster.
12) In the A-B-C classification system, items which account for 15 percent of the total
dollar volume for a majority of the inventory items would be classified as:
A.A items.
B.B items.
C.C items.
D.A items plus B items.
E.B items plus C items.
13) Average demand for a particular item is 1,200 units per year. It costs $100 to place
an order for this item, and it costs $24 to hold one unit of this item in inventory for one
year. If the fixed-order-interval model is chosen in this instance, how often (on average)
will this item be ordered?
A.once a month
B.once every other month
C.twice a month
D.twice every three months
E.three times every two months
14) Having a vendor be responsible for managing the restocking of inventory is what is
meant by the term:
A.JIT II.
B.MRP II.
C.SCM I.
D.EOQ III.
E.POQ II.
15) In acceptance sampling, the level of inspection automatically adjusts to the quality
of lots being inspected, assuming that:
A.a single-sampling plan is used.
B.double-sampling plans are used.
C.multiple-sampling plans are used.
D.”rejected” lots are subjected to 100 percent inspection.
E.the incoming fraction defective remains constant.
16) In a transportation problem with three locations and two destinations, the objective
function is as follows: Min 20X11 + 18X21 + 23X31 + 16X12 + 14X22 + 12X32. How
much does it cost to ship one unit from location 1 to destination 2?
A.18
B.12
C.23
D.16
E.14
17) The owner of Kat Motel wants to develop a time standard for the task of cleaning a
cat cage. In a preliminary study, she observed one of her workers perform this task six
times, with the following results:
What is the standard time for this task if the employee worked at a 50 percent faster
pace than average, and an allowance of 20 percent of job time is used?
A.90 seconds
B.99 seconds
C.100 seconds
D.162 seconds
E.150 seconds
18) Dealing with the fact that certain aspects of any management situation are more
important than others is called:
A.analysis of trade-offs.
B.sensitivity analysis.
C.recognition of priorities.
D.analysis of variance.
E.decision table analysis.
19) Giving workers responsibility for quality improvements and authority to make
changes is known as:
A.continuous improvement.
B.passing the buck.
C.benchmarking.
D.employee empowerment.
E.employee involvement.
20) A local bagel shop produces two products: bagels (B) and croissants (C). Each bagel
requires 6 ounces of flour, 1 gram of yeast, and 2 tablespoons of sugar. A croissant
requires 3 ounces of flour, 1 gram of yeast, and 4 tablespoons of sugar. The company
has 6,600 ounces of flour, 1,400 grams of yeast, and 4,800 tablespoons of sugar
available for today’s production run. Bagel profits are 20 cents each, and croissant
profits are 30 cents each.
What are optimal profits for today’s production run?
A.$580
B.$340
C.$220
D.$380
E.$420
21) What is the effect of an increase in the desired confidence level on the number of
observations necessary in a time study?
A.increases
B.decreases
C.unaffected
D.may increase or decrease, depending on the sample standard deviation
E.impossible to say without additional information
22) Consider these data regarding the multiple-server, priority service queuing model:
Service Rate: 2 per hour (Poisson)
Number of Servers: 5
What is the average time in the system for a low-priority item?
23) A formal way to document customer requirements is:
A.consumer surveys.
B.quality function deployment.
C.focus groups.
D.the Delphi technique.
E. a sales/marketing matrix.
24) Consider the following information:
What are total regular time costs?
25) Given the following data for a particular inventory item:
For the economic order quantity, what is the average inventory level?
26) ISO standards aid in transferring technology to developing countries.
27) Given the following data, develop a linear regression model for y as a function of x.
28) Given the following data for a particular inventory item:
For the economic order quantity, what are average weekly total costs, including the cost
of the inventory item?
29) A firm uses acceptance sampling to evaluate batches of inputs. Ideally, the defect
rate would be no more than 3.5 percent. The firm knows that on occasion, batches with
higher defect rates will be accepted. However, if the defect rate reaches 7 percent, the
firm would like there to be very little chance of that batch being accepted. This value, 7
percent, is the firm’s:
30) Given the following data for a particular inventory item:
For the economic order quantity, what is the length of an order cycle?
31) Given the following work sampling data, based upon 100 random observations of a
particular worker:
For a confidence level of 86.64 percent, what is the maximum error of the estimate for
activity B?