A firm uses graphical techniques in its aggregate planning efforts. Over the next twelve
months (its intermediate period) it estimates the sum of demands to be 105,000 units.
The firm has 250 production days per year. In January, which has 22 production days,
demand is estimated to be 11,000 units. A graph of demand versus level production will
show that
A) the January requirement is below level production of 420 units
B) level production is approximately 1000 units per day
C) level production of 420 units per day is below the January requirement
D) level production is approximately 420 units per month
E) the firm must hire workers between December and January
A finite population waiting line model has an average service time T of 200 minutes and
an average time between service requirements U of 300 minutes; the service factor X is
A) 0.20
B) 0.40
C) 0.60
D) 0.67
E) 2.5
Swift movement through the facility is typical of goods in which approach?
A) product
B) process
C) mass customization
D) repetitive
E) A and C
The expected activity time in PERT analysis is calculated as
A) the simple average of the optimistic, pessimistic, and most likely times
B) the weighted average of a, m, and b, with m weighted 4 times as heavily as a and b
C) the sum of the optimistic, pessimistic, and most likely times
D) the sum of the optimistic, pessimistic, and most likely times, divided by six
E) the sum of the activity variances, divided by six
A small hair styling salon has several operators. While customers do not have
appointments, each is waiting to be served by a specific operator. This scenario
provides an example of a
A) multiple-channel, multi-phase, limited queue length
B) single-channel, multi-phase, limited queue length
C) multi-channel, limited queue length
D) multiple single-channel systems, limited queue length
E) none of the above
A repetitive manufacturing firm is planning on level material use. The following
information has been collected. Currently, the firm operates 250 days per year.
a. What is the setup cost, based on the desired lot size?
b. What is the setup time, based on $40 per hour setup labor?
Which of the following is characteristic of lean operations?
A) long lead times
B) easy, mindless jobs
C) specialty workers with no cross-training
D) low space requirements
E) no supplier partnerships
Which of the following statements regarding Arnold Palmer Hospital is false?
A) The hospital uses a wide range of quality management techniques.
B) The culture of quality at the hospital includes employees at all levels.
C) The hospital scores very highly in national studies of patient satisfaction.
D) The hospital’s high quality is measured by low readmission rates, not patient
satisfaction.
E) The design of patient rooms, even wall colors, reflects the hospital’s culture of
quality.
The goal of inspection is to
A) detect a bad process immediately
B) add value to a product or service
C) correct deficiencies in products
D) correct system deficiencies
E) all of the above
What is the forecast for May based on a weighted moving average applied to the
following past demand data and using the weights: 4, 3, 2 (largest weight is for most
recent data)?
Upon completion of the northwest-corner rule, which source-destination cell is
guaranteed to be occupied?
A) top-left
B) top-right
C) bottom-left
D) bottom-right
E) the cell with the lowest shipping cost (or at least one of them if there€s a tie)
A clothing chain is considering two different locations for a new retail outlet. The
organization has identified the four factors listed in the following table as the basis for
evaluation, and has assigned weights as shown on the right side of this table. The
manager has rated each location on each factor, on a 100-point basis (higher scores are
better), as shown in the right-hand table.
a. Calculate the composite score for each alternative location.
b. Which site should be chosen?
c. Are you concerned about the sensitivity and subjectivity of this solution? Comment.
A combination of effective Gantt chart use and other tactics allowed Delta to cut the
average time for a plane layover by what % of the original 60 minute duration?
A) 33%, to 40 minutes
B) 50%, to 30 minutes
C) 20%, to 48 minutes
D) 25%, to 45 minutes
E) 40%, to 36 minutes
An insurance claims processing center has six work centers, any of which can be placed
into any of six physical departmental locations. Call the centers 1, 2, 3, 4, 5, and 6, and
the departments A, B, C, D, E, and F. The current set of assignments is A-3, B-1, C-6,
D-2, E-4, and F-5.
The (symmetric) matrix of departmental distances, in meters is
The matrix of work flow (estimated trips per day) is among centers
The firm estimates that each trip costs approximately $4.
a. What is the cost of the current assignment?
b. Use trial-and-error to find one improved assignment.
c. What is that assignment, and what is its cost?
What term describes how an organization expects to achieve its missions and goals?
A) conditional expectation
B) tactic
C) SWOT
D) strategy
E) competitive advantage
The tracking signal is the
A) standard error of the estimate
B) absolute deviation of the last period’s forecast
C) mean absolute deviation (MAD)
D) ratio of cumulative error/MAD
E) mean absolute percentage error (MAPE)
Which of the following is not an assumption of the M/M/1 model?
A) The first customers to arrive are the first customers served.
B) Each arrival comes independently of the arrival immediately before and after that
arrival.
C) The population from which the arrivals come is very large or infinite in size.
D) Customers do not renege.
E) Service times occur according to a normal curve.
One of the similarities between repetitive focus and mass customization is
A) the wide variety of outputs
B) module inputs
C) the process layout
D) the standard cost
E) the high volume of outputs
An operations manager’s staff has compiled the information below for four
manufacturing alternatives (A, B, C, and D) that vary by production technology and the
capacity of the machinery. All choices enable the same level of total production and
have the same lifetime. The four states of nature represent four levels of consumer
acceptance of the firm’s products. Values in the table are net present value of future
profits in millions of dollars.
a. Assuming a maximax strategy, which alternative would be chosen? b. If maximin
were used, which would be chosen? c. If the states of nature were equally likely, which
alternative should be chosen?
A problem that involves a sequence of decisions
A) cannot be analyzed with expected monetary value
B) can be better analyzed with a decision tree than by a decision table
C) must be analyzed in the same order that the decisions are made
D) cannot be analyzed with decision tree software
E) can only be analyzed using decision making under certainty
Identify the ten determinants of service quality. Describe two of them in a sentence or
two each.
Find the minimum cost solution for the transportation problem detailed in the table
below. Explain carefully the meaning of any quantity in a “dummy” row or column.
A(n) __________ is a series of digits that have been selected by a totally random
process.
The __________ is an organization that has published principles and standards for
ethical supply management conduct.
What is the difference between goods and services in terms of their location selection?
The __________ is the time between the arrival of raw materials and the shipping of
finished products.
What are the advantages of focused factories?