1) Technology choices seldom affect:
A.costs.
B.productivity.
C.union activity.
D.quality.
E.flexibility.
2) Competitiveness doesn’t include:
A.productivity.
B.effectiveness.
C.profitability.
D.operations strategy.
E.operations management.
3) A transportation planner has set up the following spreadsheet formulation of a
transportation problem:
Suppose the output from this formulation is as follows:
How many units are shipped from location II to location C?
A.0
B.60
C.70
D.80
E.none of these
4) Which one of the following most closely describes the MRP approach that is used for
components or subassemblies to compensate for variations in lead time?
A.pegging
B.safety stock
C.increased order sizes
D.safety time
E.low-level coding
5) Software systems known as GIS help in location analysis. The initials GIS stand for:
A.Graphic Interface Systems.
B.Global Integrated Software.
C.Graded Information Systems.
D.Geo Intensive Software.
E. Geographic Information System.
6) The term “opportunity loss or regret” is most closely associated with:
A.minimax regret.
B.maximax.
C.maximin.
D.expected monetary value.
E. Laplace.
7) The operations manager of a body and paint shop has five cars to schedule for repair.
He would like to minimize the throughput time to complete all work on these cars. Each
car requires body work prior to painting. The estimates of the times required to do the
body paint work on each are as follows:
What is the idle time at the paint work center for the optimal schedule?
A.1 hour
B.2 hours
C.4 hours
D.7 hours
E.10 hours
8) The EOQ model is most relevant for which one of the following?
A.ordering items with dependent demand
B.determination of safety stock
C.ordering perishable items
D.determining fixed-interval order quantities
E.determining fixed order quantities
9) 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 much
longer do parties without player’s cards spend in the system, compared to parties with
the player’s cards?
A.2 minutes
B.4 minutes
C.8 minutes
D.10 minutes
E.It is impossible to say without more information.
10) The operations manager for a well-drilling company must recommend whether to
build a new facility, expand his existing one, or do nothing. He estimates that long-run
profits (in $000) will vary with the amount of precipitation (rainfall) as follows:
If he feels the chances of low, normal, and high precipitation are 30 percent, 20 percent,
and 50 percent respectively, what are expected long-run profits for the alternative he
will select?
A.$140,000
B.$170,000
C.$285,000
D.$305,000
E.$475,000
11) Which one of the following would learning curves probably affect the least?
A.pricing new products
B.negotiated purchasing
C.layout analysis
D.scheduling
E.capacity planning
12) Which of the following is an advantage of E-business?
(I) reduction of transaction costs
(II) shortened supply chain response time
(III) greater customer loyalty
A.I
B.II
C.I and II
D.II and III
E.I, II, and III
13) One local hospital has just enough space and funds currently available to start either
a cancer or heart research lab. If administration decides on the cancer lab, there is a 20
percent chance of getting $100,000 in outside funding from the American Cancer
Society next year, and an 80 percent chance of getting nothing. If the cancer research
lab is funded the first year, no additional outside funding will be available the second
year. However, if it is not funded the first year, then management estimates the chances
are 50 percent it will get $100,000 the following year, and 50 percent that it will get
nothing again. If, however, the hospital’s management decides to go with the heart lab,
then there is a 50 percent chance of getting $50,000 in outside funding from the
American Heart Association the first year and a 50 percent change of getting nothing. If
the heart lab is funded the first year, management estimates a 40 percent chance of
getting another $50,000 and a 60 percent chance of getting nothing additional the
second year. If it is not funded the first year, then management estimates a 60 percent
chance for getting $50,000 and a 40 percent chance for getting nothing in the following
year. For both the cancer and heart research labs, no further possible funding is
anticipated beyond the first two years.
What is the expected value for the optimum decision alternative?
A.$100,000
B.$60,000
C.$50,000
D.$40,000
E.$20,000
14) Which of the following is not an advantage of work sampling compared to
stopwatch time study?
A.There is little or no disruption of work.
B.It is less susceptible to short-term fluctuations.
C.Workers are less resentful.
D.It is less costly and less time-consuming.
E.It is better suited for short, repetitive tasks.
15) In a single-period inventory situation, the probabilities that demand will be 1, 2, 3,
or 4 units are .3, .3, .2, and .2, respectively. If two units are stocked, what is the
probability of selling both of them?
A..5
B..6
C..7
D..8
E..9
16) Forecasting techniques generally assume:
A.the absence of randomness.
B.continuity of some underlying causal system.
C.a linear relationship between time and demand.
D.accuracy that increases the farther out in time the forecast projects.
E.accuracy that is better when individual items, rather than groups of items, are being
considered.
17) The manager of Lawn and Garden Services would like to estimate the proportion of
her employees’ time spent performing various gardening and lawn care activities. She
has made 400 random observations of a typical worker, with the following results:
What is the most likely true proportion of time spent mowing?
A.0
B..1
C..2
D..5
E.1
18) A company needs to locate three departments (X, Y, and Z) in the three areas (I, II,
and III) of a new facility. They want to minimize interdepartmental transportation costs,
which are expected to be $.50 per load per meter moved. An analyst has prepared the
following distances and flow matrices:
What is the total flow (loads per week) between department Y and department Z?
A.140
B.160
C.200
D.250
E.300