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1) Availability cannot be increased without improving the time between breakdowns.
2) The design of the supply chain and establishing partnerships with vendors and
distributors are examples of operational issues in a supply chain.
3) The bill of materials indicates how much material will be needed to produce the
quantities on a given master production schedule.
4) To reduce the average number waiting in line, it is important to increase utilization.
5) Bottlenecks may shift with the passage of time, so that different operations become
bottleneck operations at different times.
6) DVD recorders would be an example of independent-demand items.
7) Customers arrive at a video rental desk at the rate of one per minute (Poisson). Each
server can handle .40 customers per minute (Poisson).
(A) If there are four servers, determine:
(1) The average time it takes to rent a video
(2) The probability of three or fewer customers in the system
(B) What is the minimum number of servers needed to achieve an average time in the
system of less than three minutes?
8) If a process is performing as it should, it is still possible to obtain observations which
are outside of which limits?
(I) tolerances
(II) control limits
(III) process variability
A.I
B.II
C.I and II
D.II and III
E.I, II, and III
9) A product-focused, single-piece flow, pull production system would be called a:
A.cellular layout.
B.job shop.
C.assembly line.
D.nonrepetitive process.
E.continuous flow.
10) A project is represented by the following diagram:
The critical path for the network shown is:
A.a-c-g.
B.a-d-f-g.
C.a-d-h-i.
D.b-e-f-g.
E.b-e-h-i.
11) Which of the following is not information needed to use the transportation model?
A.capacity of the sources
B.demand of the destinations
C.unit shipping costs
D.unit shipping distances
E.All of the choices are necessary.
12) Reactive maintenance is _____________ maintenance.
A.planned
B.after the event
C.proactive
D.predictive
E.preventive
13) Consider the following work breakdown structure:
What is the estimated expected (mean) time for project completion?
A.35 weeks
B.39 weeks
C.50 weeks
D.104 weeks
E.105 weeks
14) The local operations manager for the Internal Revenue Service must decide whether
to hire one, two, or three temporary tax examiners for the upcoming tax season. She
estimates that net revenues (in thousands of dollars) will vary with how well taxpayers
comply with the new tax code just passed by Congress, as follows:
If she uses the minimax regret criterion, how many new examiners will she decide to
hire?
A.one
B.two
C.three
D.either one or two
E.either two or three
15) The two general approaches to forecasting are:
A.mathematical and statistical.
B.qualitative and quantitative.
C.judgmental and qualitative.
D.historical and associative.
16) Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni
each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and
carrying costs are 4 cents per pound per day. Lead time for each order is three days, and
the pepperoni itself costs $3.00 per pound. At what point should she reorder pepperoni?
A.20 pounds remaining
B.40 pounds remaining
C.60 pounds remaining
D.80 pounds remaining
E.100 pounds remaining
17) In practice, the more commonly used techniques for aggregate planning are:
A.mathematical techniques.
B.informal trial-and-error techniques.
C.transportation models.
D.simulation models.
E.linear programming optimization.
18) Which of these aspects of supply chain management are especially concerning to
small business?
(I) customer reliability
(II) inventory management
(III) purchasing costs
(IV) risk management
(V) international trade
A.III, IV, and V only
B.I, II, and III only
C.I, III, and IV only
D.I and II only
E.II, IV, and V only
