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1) Which of the following is not an application of E-business?
A.Internet buying and selling
B.e-mail
C.order and shipment tracking
D.electronic data interchange (EDI)
E.universal product codes
2) Process design that supports lean does not include:
A.production flexibility.
B.duplicate facilities.
C.setup time reduction.
D.minimal inventory storage.
E.small lot sizes.
3) The average time before breakdown of a machine is normally distributed and has a
mean of 18 weeks and a standard deviation of three weeks. If breakdown cost averages
$2,000 and preventive maintenance costs $1,400, what is the optimal preventive
maintenance interval?
A.16.4 weeks
B.14.6 weeks
C.16.9 weeks
D.19.6 weeks
E.21.3 weeks
4) Net requirements for component J are as follows: 60 units in week 2, 40 units in
week 3, and 60 units in week 5. If a fixed-period, two-period lot-sizing method is used,
what will be the quantity of the first planned receipt?
A.60 units
B.120 units
C.180 units
D.cannot be determined
E.none of the choices
5) A lot can be "accepted" or "rejected" in a double-sampling plan:
A.after one sample is taken.
B.after two samples are taken.
C.only after two samples are taken.
D.All choices are correct.
E.Only after one and after two samples are taken is correct.
6) Which of the following is not a major caution or criticism of learning curves?
A.Learning rates may differ between organizations.
B.Projections should be regarded as approximations.
C.The base time must be carefully determined.
D.The curve may eventually tip upwards.
E.Carryover effects may alter the learning rate.
7) A restaurant at a popular Colorado casino provides priority service to player's card
holders. The restaurant has 10 tables or booths where customers may be seated. The
service time (time a booth or table is occupied) averages 40 minutes once a party is
seated. The customer arrival rate is 12 parties per hour, with the parties being equally
divided between card holders and people without player's cards. What is the average
time that parties without player's cards wait to be seated?
A.approx. 4 minutes
B.approx. 8 minutes
C.approx. 12 minutes
D.approx. 15 minutes
E.approx. 2 minutes
8) The amount of inspection needed depends on __________ and __________.
A.the amount of automation; the reliability of inspectors
B.the quality of the supplier; the target market of the process
C.the costs of inspection; the costs of passing on defective items
D.where in the process the inspection occurs; the volume of the process
E.the cost of the item being inspected; the use of the item being inspected
9) The primary difference between seasonality and cycles is:
A.the duration of the repeating patterns.
B.the magnitude of the variation.
C.the ability to attribute the pattern to a cause.
D.the direction of the movement.
E.there are only four seasons but 30 cycles.
10) The production planner for a private label soft drink maker is planning the
production of two soft drinks: root beer (R) and sassafras soda (S). Two resources are
constrained: production time (T), of which she has at most 12 hours per day; and
carbonated water (W), of which she can get at most 1,500 gallons per day. A case of
root beer requires 2 minutes of time and 5 gallons of water to produce, while a case of
sassafras soda requires 3 minutes of time and 5 gallons of water. Profits for the root
beer are $6.00 per case, and profits for the sassafras soda are $4.00 per case. Which of
the following is not a feasible production combination?
A.0 R and 0 S
B.0 R and 240 S
C.180 R and 120 S
D.300 R and 0 S
E.180 R and 240 S
11) In regards to supply chain management and the location decision, a primary
challenge is to address _______________ distribution.
A.insourced vs. outsourced
B.strategic vs. tactical
C.local vs. global
D.centralized vs. decentralized
E.anticipatory vs. reactive
12) A restaurant at a popular Colorado casino provides priority service to player's card
holders. The restaurant has 10 tables or booths where customers may be seated. The
service time (time a booth or table is occupied) averages 40 minutes once a party is
seated. The customer arrival rate is 12 parties per hour, with the parties being equally
divided between card holders and people without player's cards. On average, how many
parties without player's cards are waiting to be seated?
A.0.52
B.0.41
C.0.88
D.1.23
E.1.75
13) Two professors at a nearby university want to coauthor a new textbook in either
economics or statistics. They feel that if they write an economics book, they have a 50
percent chance of placing it with a major publisher, and it should ultimately sell about
40,000 copies. If they cannot get a major publisher to take it, then they feel they have
an 80 percent chance of placing it with a smaller publisher, with ultimate sales of
30,000 copies. On the other hand, if they write a statistics book, they feel they have a 40
percent chance of placing it with a major publisher, and it should result in ultimate sales
of about 50,000 copies. If they cannot get a major publisher to take it, they feel they
have a 50 percent chance of placing it with a smaller publisher, with ultimate sales of
35,000 copies.
What is the probability that the economics book would wind up being placed with a
smaller publisher?
A..8
B..5
C..4
D..2
E..1
14) A point which is outside of the lower control limit on an R-chart:
A.is an indication that no cause of variation is present.
B.should be ignored because it signifies better-than-average quality.
C.should be investigated because an assignable cause of variation might be present.
D.should be ignored unless another point is outside that limit.
E.is impossible since the lower limit is always zero.
15) Our organization can obtain visibility to potential trading partners on the Internet by
using:
A.C2C.
B.B2C.
C.B2B.
D.C2B.
E.2BC.
16) The fixed-order-interval model would be most likely to be used for this situation:
A.A company has switched from mass production to lean production.
B.Production is done in batches.
C.Spare parts are ordered when a new machine is purchased.
D.Grouping orders can save shipping costs.
E.Demand is highly variable
