1) Constraints limit the alternatives available to a decision maker; removing constraints
adds viable alternative solutions.
2) The rate of demand is an important factor in determining the ROP.
3) Accounting, purchasing, and inventory control are fairly routine with process
layouts.
4) Reliability can be improved by the use of backup components.
5) An advantage of a weighted moving average is that recent actual results can be given
more importance than what occurred a while ago.
6) One major difference between the use of kanban and MRP in scheduling the products
to be built is that kanban is primarily a manual system while MRP uses computers.
7) Assembly lines achieved productivity but at the expense of standard of living.
8) A major benefit of computer-aided design (CAD) is the increased productivity of
designers.
9) When a process is not centered, its capability is measured in a slightly different way.
The symbol for this case is Cpk.
10) Consider the following work breakdown structure:
What is the estimated standard deviation in the time for activity E?
A.2 days
B.3 days
C.4 days
D.16 days
E.24 days
11) In general, managing global operations is made easier by __________ and
__________.
A.political uncertainty; currency devaluation
B.differentiation strategies; diversified markets
C.low interest rates; price-sensitive customers
D.cost-leadership strategies; labor productivity
E.freer trade; technology
12) A firm pursuing a strategy based on customization and variety will tend to structure
and manage its supply chain to accommodate more _____________ than a firm
pursuing a strategy based on low cost and high volume.
A.variation
B.streamlined flow
C.quality
D.capacity
E.productivity
13) A shift in the process mean for a measured characteristic would most likely be
detected by a:
A.p-chart.
B.x-bar chart.
C.c-chart.
D.R-chart.
E.s-chart.
14) The fact that human activities typically improve when they are done on a repetitive
basis is described by a(n):
A.normal distribution curve.
B.learning curve.
C.binomial distribution curve.
D.exponential curve.
15) A ________ is one way of reducing perceived waiting time.
A.bonus
B.gatekeeper
C.reservation
D.diversion
E.number calling system
16) Consider the following work breakdown structure:
What is the estimated standard deviation in the time for activity E?
A.0 weeks
B.1 week
C.2 weeks
D.3 weeks
E.4 weeks
17) A service organization (for example, a hospital) is likely to use a(n) ________
layout because of variability in customer processing requirements.
A.project
B.process
C.flow
D.assembly
E.nonrepetitive
18) The following data occurs chronologically from left to right:
The number of runs up and down is:
A.2
B.3
C.4
D.5
E.none of these.
19) Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of
$10. Location choice J has monthly fixed costs of $150,000 and per-unit variable costs
of $9. At what volume would these locations have equal total costs?
A.30,000 units
B.25,000 units
C.40,000 units
D.50,000 units
E.60,000 units
20) Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets,
which must be ready for delivery at the start of week 6. An MRP planner has prepared
the following table showing product structure, lead times (orders are lot-for-lot), and
quantities on hand:
Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate
eggs; additionally one bottle of Alka-Seltzer is included for those who overindulge.
What is the net requirement for dark chocolate truffles to fill this order?
A.100
B.140
C.150
D.180
E.200
21) Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets,
which must be ready for delivery at the start of week 6. An MRP planner has prepared
the following table showing product structure, lead times (orders are lot-for-lot), and
quantities on hand:
Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate
eggs; additionally one bottle of Alka-Seltzer is included for those who overindulge.
If the firm is using a fixed-period lot size of two periods, what is the order size for the
first order?
A.120
B.200
C.280
D.160
E.150
22) 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:
If the manager wants to be 95.44 percent confident that the true proportion of time
spent mowing is within .02 (plus or minus) of the sample proportion, what should be
her sample size?
A.400
B.1,000
C.1,600
D.2,000
E.2,500
23) The linear optimization technique for allocating constrained resources among
different products is:
A.linear regression analysis.
B.linear disaggregation.
C.linear decomposition.
D.linear programming.
E.linear tracking analysis.
24) Vendor analysis is the examination of the _________ of purchased materials.
A.function
B.source
C.quality
D.cycle
E.quantity
25) A manager intends to order a new machine and must now decide on the number of
spare parts to order along with the machine. The parts cost $400 each and have no
salvage value. The manager has compiled a frequency distribution for the probable
usage of spare parts, as shown:
For what range of shortage costs would stocking one spare part constitute an optimal
decision?
26) Consider these data regarding the multiple-server, priority service queuing model:
Service Rate: 2 per hour (Poisson)
Number of Servers: 5
What is the average number of high-priority items waiting in line for service?
27) Given the following work sampling data, based upon 100 random observations of a
particular worker:
What is the estimated proportion of time this worker spends performing activity B?
28) Given the following process control data for a quality attribute (three samples of
size 400 each):
What is the sample proportion of defectives for sample #1? #2? #3?
29) Given the following information concerning jobs awaiting processing at a single
work center, what processing sequence will result if the critical ratio rule is used?
30) A production cell uses 240 pounds of plastic resin each eight-hour day. Resin is
transported in drums that hold 100 pounds each. The material is obtained from a nearby
supplier, and has a 12-hour cycle time. An efficiency factor of .15 has been assigned to
this cell. What is the optimum number of containers to support this operation?
31) Consider the following information:
What profit (loss) would there be for a quantity of 27,000?
32) Consider these data regarding the multiple-server, priority service queuing model:
Service Rate: 2 per hour (Poisson)
Number of Servers: 5
What is the average number of low-priority items waiting in line for service?