1) One of the primary output reports of MRP concerns changes to planned orders.
2) If a firm’s product mix is 60 percent of product A and 20 percent each of products B
and C, an optimal mix-model production schedule would be successive sequences of
AAABC.
3) In reaching a decision, the alternative with the lowest cost should be ranked number
1.
4) The quantity sent to a bottleneck operation could be split into two or more process
batches to better utilize a bottleneck resource rather than process the entire batch.
5) An organization that is twice as productive as its competitor will be twice as
profitable.
6) A weakness of the maximin approach is that it loses some information.
7) Goods-producing organizations are not involved in service activities.
8) Sequencing is concerned with the order in which jobs are done, while loading is
concerned with assigning jobs to work centers or workstations.
9) One important use of inventories in manufacturing is to decouple operations through
the use of work-in-process inventories.
10) Mismatches between operational capabilities and market demand can have a
negative impact on an organization.
11) Operations management and marketing are the two functional areas that exist to
support activities in other functions such as accounting, finance, IT, and human
resources.
12) Taking a systems viewpoint with regard to operations in today’s environment
increasingly leads decision makers to consider ______________ in response to the
___________.
A.flexibility; pressure to be more efficient
B.offshoring; need to promote domestic production
C.sustainability; threat of global warming
D.technology; impact of random variation
E.forecasting; stabilization of demand
13) The new owner of a beauty shop is trying to decide whether to hire one, two, or
three beauticians. She estimates that profits next year (in thousands of dollars) will vary
with demand for her services, and she has estimated demand in three categories, low,
medium, and high.
If she feels the chances of low, medium, and high demand are 50 percent, 20 percent,
and 30 percent respectively, what is her expected value of perfect information?
A.$54,000
B.$65,000
C.$70,000
D.$80,000
E.$135,000
14) Consider the following decision scenario:
If you are uncertain which state of nature will occur, and use the maximax criterion,
which alternative will you select?
15) 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:
What is the observed time for this task?
A.20 seconds
B.27 seconds
C.46 seconds
D.66 seconds
E.100 seconds
16) The construction manager for Acme Construction, Inc., must decide whether to
build single-family homes, apartments, or condominiums. He estimates annual profits
(in $000) will vary with the population trend as follows:
If he uses the maximin criterion, which kind of dwellings will he decide to build?
A.single family
B.apartments
C.condominiums
D.either single family or apartments
E.either apartments or condos
17) A design engineer wants to construct a sample mean chart for controlling the
service life of a halogen headlamp his company produces. He knows from numerous
previous samples that this service life is normally distributed with a mean of 500 hours
and a standard deviation of 20 hours. On three recent production batches, he tested
service life on random samples of four headlamps, with these results:
What is the mean of the sampling distribution of sample means when service life is in
control?
A.250 hours
B.470 hours
C.495 hours
D.500 hours
E.515 hours
18) The materials manager for a billiard ball maker must periodically place orders for
resin, one of the raw materials used in producing billiard balls. She knows that
manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per
day to carry a kilogram of resin in inventory. She also knows that the order costs for
resin are $100 per order, and that the lead time for delivery is four days. If the order size
was 1,000 kilograms of resin, what would be the average inventory level?
A.50 kilograms
B.200 kilograms
C.500 kilograms
D.800 kilograms
E.1,000 kilograms
19) The purchasing cycle begins with:
A.selecting a supplier.
B.placing an order.
C.evaluating potential vendors.
D.conducting a value analysis.
E.receiving a requisition.
20) An OC curve shows:
A.average outgoing quality.
B.the average outgoing quality limit.
C.out-of-control criteria.
D.operating control.
E.probability of acceptance versus lot quality.
21) Which of these products would be most likely to have dependent demand?
A.refrigerators
B.automobile engines
C.televisions
D.brownies
E.automobiles