The critical path can be determined by use of either the “forward pass” or the
“backward pass.”
Security is the determinant of service quality that means freedom from danger, risk, or
doubt.
A time-series model uses a series of past data points to make the forecast.
When safety stock is deemed absolutely necessary, the usual policy is to build it into the
projected on-hand inventory of the MRP logic.
An acceptance sampling plan must define “good lots” and “bad lots” and specify the
risk level associated with each one.
Outsourcing is not a new concept; it is simply an extension of the long-standing
practice of subcontracting production activities.
Internal failure costs are associated with scrap, rework, and downtime.
In the past half-century, while the number of people employed in manufacturing in the
United States has decreased slightly, the output per worker has increased significantly.
One of the elements of ergonomics is
A) allocating work time based on economic studies
B) the cost justification of technology
C) designing tools and machines that facilitate human work
D) the use of automation in a manufacturing organization
E) the establishment of time standards
Students arrive randomly at the help desk of the computer lab. There is only one service
agent, and the time required for inquiry varies from student to student. Arrival rates
have been found to follow the Poisson distribution, and the service times follow the
negative exponential distribution. The average arrival rate is 12 students per hour, and
the average service rate is 20 students per hour. A student has just entered the system.
How long is she expected to stay in the system?
A) 0.125 minute
B) 0.9 minute
C) 1.5 minutes
D) 7.5 minutes
E) 0.075 hour
Which of the following statements regarding a pull system is true?
A) Large lots are pulled from upstream stations.
B) Work is pulled to the downstream stations before it is actually needed.
C) Manufacturing cycle time is increased.
D) Problems become more obvious.
E) None of the above is true of a pull system.
The stepping-stone method
A) is an alternative to using the northwest-corner rule
B) often involves tracing closed paths with a triangular shape
C) is used to identify the relevant costs in a transportation problem
D) is used to evaluate the cost effectiveness of shipping goods via transportation routes
not currently in the solution
E) helps determine whether a solution is feasible or not
Currency risk is based on what assumption?
A) Firms that do not continuously innovate will lose market share.
B) Values of foreign currencies continually rise and fall in most countries.
C) Changing product lines by reacting to every current trend may alienate the customer
base.
D) The value of one dollar today is greater than the value of one dollar to be received
one year from now.
E) The U.S. stock market fluctuates daily.
Which of the following is not a current trend in operations management?
A) just-in-time performance
B) global focus
C) supply-chain partnering
D) mass customization
E) All of the above are current trends.
Which one of the following statements is true regarding JIT inventory?
A) It exists just in case something goes wrong.
B) It is the minimum inventory necessary to keep a perfect system running.
C) It hides variability.
D) It is minimized with large lot production.
E) It increases if setup costs decrease.
The accuracy of a labor standard is to be within 5%, and the confidence level is 95%.
The standard deviation of the sample is 2 and the mean is 8. What sample size should
be used?
A) 8
B) 10
C) 96
D) 127
E) cannot be determined from the information given
What combination of x and y will yield the optimum for this problem?
Maximize $3x + $15y, subject to (1) 2x + 4y =< 12 and (2) 5x + 2y =< 10 and (3) x, y
>= 0.
A) x = 2, y = 0
B) x = 0, y = 3
C) x = 0, y = 0
D) x = 1, y = 5
E) none of the above
A project manager is interested in crashing a project with variable activity times. Which
of the following tools should he/she employ?
A) PERT
B) CPM
C) Gantt Chart
D) either PERT or CPM
E) PERT, CPM, or a Gantt chart are fine
“Operators simply load new programs, as necessary, to produce different products”
describes
A) CAD
B) automated guided vehicles
C) flexible manufacturing systems
D) vision systems
E) process control
A linear programming problem has three constraints:
2X + 10Y =<1004X + 6Y =<1206X + 3Y >= 90
What is the largest quantity of X that can be made without violating any of these
constraints?
A) 50
B) 30
C) 20
D) 15
E) 10
A project organization that becomes permanent is often referred to as a __________.
A) fixed project organization
B) matrix organization
C) normal organization
D) standard organization
E) none of the above
An engineering drawing shows the
A) dimensions, tolerances, materials, and finishes of a component
B) dimensions, tolerances, cost, and sales or use volume of a component
C) materials, finishes, machining operations, and dimensions of a component
D) cost, materials, tolerances, and lead-time for a component
E) cost, dimensions, and machining operations for a component
A linear programming problem contains a restriction that reads “the quantity of X must
be at least three times as large as the quantity of Y.” Which of the following inequalities
is the proper formulation of this constraint?
A) 3X >= Y
B) X =<3Y
C) X + Y>=3
D) X – 3Y >= 0
E) 3X =<Y
A product-focused process is commonly used to produce
A) high-volume, high-variety products
B) low-volume, high-variety products
C) high-volume, low-variety products
D) low-variety products at either high- or low-volume
E) high-volume products of either high- or low-variety
Suppose that a maximization LP problem has corners of (0,0), (5,0), and (0,5). How
many possible combinations of X and Y will yield the maximum profit if profit is given
to be 5X+5Y?
A) 0
B) 1
C) 2
D) 5
E) Infinite
Lean operations are known for their
A) employee development
B) supplier education
C) supplier partnerships
D) challenging jobs
E) All of the above are attributes of lean operations.
Rienzi Farms grows sugar cane and soybeans on its 500 acres of land. An acre of
soybeans brings a $1000 contribution to overhead and profit; an acre of sugar cane has
a contribution of $2000. Because of a government program no more than 200 acres may
be planted in soybeans. During the planting season 1200 hours of planting time will be
available. Each acre of soybeans requires 2 hours, while each acre of sugar cane
requires 5 hours. The company seeks maximum contribution (profit) from its planting
decision.
a. Algebraically state the decision variables, objective and constraints.
b. Plot the constraints
c. Solve graphically, using the corner-point method.
What is the difference between a firm’s mission and its strategy?
What is the AOQ of an acceptance sampling plan?
Differentiate between a push and a pull system.
Pirmin’s Bike Shop is behind on a custom bike and needs to crash 8 hours of time from
the 8-step project. Given the project table below calculate the crash cost for 8 hours of
time-savings. Suppose Pirmin calls the customer and asks for a project extension,
reducing the amount of time he needs to crash. Calculate both the maximum
time-savings available on a $25 crash budget and the cost to crash four hours of
savings.
What is the simplex method?
How are outsourcing and vertical integration related? Can a single firm successfully do
both?