1) A c-chart is used to monitor the number of defects per unit for process output.
2) No stopwatch is required in a work sampling study.
3) For purposes of obtaining good time standards using a stopwatch time study, the
analyst should try to avoid having the worker discover he or she is being observed.
4) Firms that wish to do business with the European Community can benefit from
having a quality management system that meets ISO 9000 standards.
5) User instructions and follow-up services after delivery are important elements of
overall product or service quality.
6) The word “technology” is used only to refer to “information technology.”
7) Quality at the source means returning all defects to the sourceour vendors.
8) In the area of maintenance, the Pareto phenomenon is reflected in the fact that,
regardless of problem classification, all equipment will justify about the same expense.
9) Measurement of productivity in service is more straightforward than in
manufacturing since it is not necessary to take into account the cost of materials.
10) Control limits tend to be wider for more variable processes.
11) In a single-sampling plan, the entire lot, or batch of items, is accepted or rejected
based upon only one specified sized sample.
12) A tracking signal focuses on the ratio of cumulative forecast error to the
corresponding value of MAD.
13) ERP began in manufacturing organizations but has spread into service
organizations.
14) Carrying cost is a function of order size; the larger the order, the higher the
inventory carrying cost.
15) Stating capacity in dollar amounts generally results in a consistent measure of
capacity regardless of the actual units of measure.
16) The Five S’s do not include:
A.Sort.
B.Straighten.
C.Sanitize.
D.Sweep.
E.Standardize.
17) The transportation method is a linear programming technique. Linearity is present
in the following way:
A.The cost of goods shipped from any source to any destination is a linear function of
quantity shipped.
B.The cost of goods shipped from any source to any destination is a linear function of
the cost per unit.
C.The total cost associated with a given plan is a linear function of shipping costs.
D.Cell evaluations require linear horizontal movements through the matrix.
E.Cell evaluations are linear.
18) Heuristic rules are usually applied when:
A.an optimum is necessary.
B.a computer program is unavailable.
C.a problem has a small number of alternatives.
D.a problem has a large number of alternatives.
E.other approaches have failed.
19) Which one of the following is not generally a determinant of the reorder point?
A.rate of demand
B.length of lead time
C.lead time variability
D.stockout risk
E.purchase cost
20) A system consists of two components, each of which must activate if the system is
to activate. One component has a reliability of .99. The other has a reliability of .95.
The components are independent of one another with respect to reliability. What is the
overall system reliability?
A..99
B..95
C..94
D..90
E.Cannot be determined with this information.
21) A persistent tendency for forecasts to be greater than or less than the actual values is
called:
A.bias.
B.tracking.
C.control charting.
D.positive correlation.
E.linear regression.
22) Essentially, the output of aggregate planning is the:
A.marketing plan.
B.production plan.
C.rough-cut capacity plan.
D.assignment plan.
E.material requirements plan.
23) 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 expected value for the decision alternative to write the statistics book?
A.50,000 copies
B.40,000 copies
C.32,000 copies
D.30,500 copies
E.10,500 copies
24) Eva, the owner of Eva’s Second Time Around Wedding Dresses, currently has five
dresses to be altered, shown in the order in which they arrived:
If Eva uses the first come, first served priority rule to schedule these jobs, what will be
the average completion time?
A.3 hours
B.5 hours
C.7 hours
D.7.2 hours
E.8 hours
25) The following matrix shows relative costs for various job-machine combinations.
Which set of pairs constitutes the minimum-cost solution using the assignment method?
A.1-B, 2-C, 3-A
B.1-B, 2-A, 3-C
C.1-A, 2-C, 3-B
D.1-A, 2-B, 3-C
E.1-C, 2-A, 3-B
26) Which one of the following would not be a reason for using acceptance sampling?
A.high cost of passing defectives
B.large number of items
C.destructive testing
D.boredom and fatigue that would accompany complete inspection
E.low cost of passing defectives
27) Which of the following is least likely to be a key consideration when a company
chooses a supplier?
A.lead time and on-time delivery
B.reputation and financial stability
C.value analysis
D.quality and quality assurance
E.flexibility of design change
28) A firm is considering three capacity alternatives: A, B, and C. Alternative A would
have an annual fixed cost of $100,000 and variable costs of $22 per unit. Alternative B
would have annual fixed costs of $120,000 and variable costs of $20 per unit.
Alternative C would have fixed costs of $80,000 and variable costs of $30 per unit.
Revenue is expected to be $50 per unit.
(A) Which alternative has the lowest break-even quantity?
(B) Which alternative will produce the highest profits for an annual output of 10,000
units?
(C) Which alternative would require the lowest volume of output to generate an annual
profit of $50,000?
29) The owner of Firewood To Go is considering buying a hydraulic wood splitter
which sells for $50,000. He figures it will cost an additional $100 per cord to purchase
and split wood with this machine, while he can sell each cord of split wood for $125.
How many cords of wood would he have to split with this machine to break even?
A.5,000
B.3,000
C.2,000
D.1,000
E.0