1) Product liability means that a manufacturer is liable for any injuries or damages
caused by a faulty product because of poor workmanship or design.
2) Convenience, reliability, and assurance are dimensions of service quality.
3) Bias exists when forecasts tend to be greater or less than the actual values of time
series.
4) An advantage of Gantt charts in project management is that they identify which
activities can be delayed without delaying the overall project.
5) The decrease in time between the second and fourth units will be equal to the
decrease in time between the first and second units.
6) The goal of maintenance is to minimize cost.
7) Service design often must take into account the degree of customer contact required.
8) Capacity planning requires an analysis of needs: what kind, how much, and when.
9) The main function of dummy activities is to clarify relationships in network
diagrams.
10) It is critical that the exact quantity calculated in the EOQ model be ordered.
11) It would be acceptable to use a group incentive plan for an assembly line operation.
12) Correlation measures the strength and direction of a relationship between variables.
13) A single-server, variable-service-time system is known as an M/D/1 system.
14) Frequent deliveries of small shipments can reduce inventory but also result in an
increase in the transportation cost per unit.
15) A worker-machine chart can help identify nonproductive parts of a process.
16) One option for altering the availability of capacity is:
A.use of overtime or slack time.
B.pricing.
C.promotion.
D.back orders.
E.rigidly fixing work schedules.
17) Layout design has many objectives, one of which is:
A.reduce bottlenecks.
B.move materials and workers simultaneously.
C.use workers and space efficiently.
D.hold material handling costs to 27 percent or less.
E.install computer terminals every 500 feet.
18) Which of the following is critical to effective yield management?
A.one-price pricing
B.forecasting
C.capacity flexibility
D.constant demand
E.trained service personnel
19) A location analysis has been narrowed down to three locations. The critical factors,
their weights, and the ratings for each location are shown below:
What is the composite score for location A?
A.76
B.75
C.78
D.74
E.76.33
20) Refer to this product tree:
If 40 Ps are needed, and on-hand inventory consists of 15 Ps and 10 each of all other
components and subassemblies, how many Cs are needed?
A.340
B.350
C.380
D.400
E.590
21) _______ is choosing how many to order or make.
A.Quantity determination
B.Package sizing
C.Lot sizing
D.Grouping
E.Aggregation
22) Which of the following leads to simulation being a useful tool with uncertain
activity times?
A.paths that are not independent
B.activity times that are not deterministic
C.activity times that cannot be crashed
D.noncritical paths that have no variability
E.critical paths with activities with deterministic time estimates
23) Which of the following is not a reason for poor performance of our organization in
the marketplace?
A.placing too much emphasis on product/service design and too little on process design
B.failing to take into account customer wants and needs
C.putting too much emphasis on short-term financial performance
D.taking advantage of strengths/opportunities, and recognizing competitive threats
E.failing to monitor the external environment
24) A bank is designing a new branch office and needs to determine how much
driveway space to allow for cars waiting for drive-up teller service. The drive-up
service will have three tellers and a single waiting line. At another branch of the bank in
a similar setting, the average service time for drive-up tellers is four minutes per
customer, and average arrival rate is 36 customers per hour. It is expected that the new
bank will have similar characteristics.
How many spaces should be provided to have a 96 percent probability of
accommodating all of the waiting cars?
A.10
B.11
C.12
D.13
E.14
25) The type of maintenance which is periodic in nature is:
A.breakdown maintenance.
B.predictive maintenance.
C.preventive maintenance.
D.corrective maintenance.
E.all of the choices.
26) Farming is an example of:
A.an obsolete activity.
B.a virtual organization.
C.nonmanufactured goods.
D.a growth industry.
E.customized manufacturing.
27) A methods and measurements analyst for Timepiece, Inc., needs to develop a time
standard for the task of attaching a watch to a wristband. In a preliminary study, he
observed one of his workers perform this task five times, with the following results:
How many observations should be made if he wants to be 95.44 percent confident that
the maximum error in the observed time is one second? Assume that the standard
deviation of the task time is five seconds.
A.5
B.10
C.25
D.100
E.121
28) The more novel a new product or service design is, the more forecasters have to
rely on:
A.subjective estimates.
B.seasonality.
C.cyclicality.
D.historical data.
E.smoothed variation.
29) A forecast based on the previous forecast plus a percentage of the forecast error is:
A.a naive forecast.
B.a simple moving average forecast.
C.a centered moving average forecast.
D.an exponentially smoothed forecast.
E.an associative forecast.