1) The transportation model assumes shipping cost per unit is the same regardless of the
number of units shipped (there are no quantity discounts).
2) In order to update a moving average forecast, the values of each data point in the
average must be known.
3) Juran describes quality management as a trilogy that consists of quality planning,
control of quality costs, and quality improvement.
4) Work sampling involves the use of some method of randomizing the observations.
5) Safety stock is held because we anticipate future demand.
6) If the expected length of a path is more than 2.5 standard deviations less than a
desired project completion time, the path will not be a factor in assessing the probability
of finishing the project on time.
7) The methods analysis chart which describes the portions of a work cycle during
which an operator and equipment are busy or idle is a:
A.flow process chart.
B.worker-machine chart.
C.gang process chart.
D.simultaneous-motion chart.
E.time/efficiency chart.
8) Consider the following work breakdown structure:
What is the estimated standard deviation in the time for activity Z?
A.3 days
B.2 days
C.4 days
D.8 days
E.5 days
9) 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 decision alternative to select the cancer lab?
A.$100,000
B.$60,000
C.$50,000
D.$40,000
E.$20,000
10) 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 time in line for a low priority item?
11) An electrical appliance will not work unless component QK does. Component QK’s
reliability is 0.95. Every other part of the appliance is 100 percent reliable. What would
the reliability of the appliance be if a backup QK were added?
A..95
B..9975
C..9025
D..9205
E..9795
12) The production planner for Fine Coffees, Inc., produces two coffee blends:
American (A) and British (B). Two of his resources are constrained: Columbia beans, of
which he can get at most 300 pounds (4,800 ounces) per week; and Dominican beans,
of which he can get at most 200 pounds (3,200 ounces) per week. Each pound of
American blend coffee requires 12 ounces of Colombian beans and 4 ounces of
Dominican beans, while a pound of British blend coffee uses 8 ounces of each type of
bean. Profits for the American blend are $2.00 per pound, and profits for the British
blend are $1.00 per pound.
What is the objective function?
A.$1A + $2B = Z
B.$12A + $8B = Z
C.$2A + $1B = Z
D.$8A + $12B = Z
E.$4A + $8B = Z
13) In a linear programming problem involving minimization, at least one constraint
must be of the __________ type.
A.less than or equal
B.integer
C.greater than or equal
D.binary
E.slack
14) QRS Corp. is designing a product layout for a new product. They plan to use this
production line 10 hours a day in order to meet forecasted demand of 900 units per day.
The following table describes the tasks necessary to produce this product:
For output to equal forecasted demand, what will be the efficiency of the production
line that uses the least number of workstations?
A.81 percent
B.90 percent
C.95 percent
D.85 percent
E.100 percent
15) Which of the following differs between aggregate planning in services and
aggregate planning in manufacturing?
A.uncertainty in demand
B.costs of storing inventory
C.the perishability of capacity
D.cost of overtime
E.cost of hiring
16) The operations manager for a local bus company wants to decide whether he should
purchase a small, medium, or large new bus for his company. He estimates that the
annual profits (in $000) will vary depending upon whether passenger demand is low,
medium, or high, as follows:
If he uses the minimax regret criterion, which size bus will he decide to purchase?
A.small
B.medium
C.large
D.either small or medium
E.either medium or large
17) Using the information given in the following table:
(A) Identify the critical path.
(B) Determine expected project duration.
18) If a line is balanced with 80 percent efficiency, the “balance delay” will be:
A.20 percent.
B.80 percent.
C.100 percent.
D.unknown, since balance delay is not related to efficiency.
E.depends on the next operation.
19) To minimize quality risks, which of the following would be least likely to be
outsourced to less-developed countries?
A.rubber processing
B.repetitive assembly
C.packaging
D.pharmaceuticals
E.steel manufacturing
20) The advertising manager for Roadside Restaurants, Inc., needs to decide whether to
spend this month’s budget for advertising on print media, television, or a mixture of the
two. She estimates that the cost per thousand “hits” (readers or viewers) will vary
depending upon the success of the new cable television network she plans to use, as
follows:
If she uses the maximin criterion, which advertising strategy will she use?
A.print
B.mixed
C.television
D.either print or mixed
E.either mixed or television
21) The direct result of disaggregating the aggregate plan is the:
A.marketing plan.
B.production plan.
C.rough-cut capacity plan.
D.master schedule.
E. material requirements plan.
22) A common objective of both MRP and the lean philosophy is to:
A.smooth production.
B.minimize inventory.
C.obtain high quality.
D.reduce overhead.
E.eliminate inventory.
23) The head of operations for a movie studio wants to determine which of two new
scripts they should select for their next major production. (Due to budgeting constraints,
only one new picture can be undertaken at this time.) She feels that script 1 has a 70
percent chance of earning about $10,000,000 over the long run, but a 30 percent chance
of losing $2,000,000. If this movie is successful, then a sequel could also be produced,
with an 80 percent chance of earning $5,000,000, but a 20 percent chance of losing
$1,000,000. On the other hand, she feels that script 2 has a 60 percent chance of earning
$12,000,000, but a 40 percent chance of losing $3,000,000. If successful, its sequel
would have a 50 percent chance of earning $8,000,000, but a 50 percent chance of
losing $4,000,000. Of course, in either case, if the original movie were a flop, then no
sequel would be produced.
What is the expected value for the optimum decision alternative?
A.$15,000,000
B.$9,060,000
C.$8,400,000
D.$7,200,000
E.$6,000,000
24) The production planner for Fine Coffees, Inc., produces two coffee blends:
American (A) and British (B). Two of his resources are constrained: Columbia beans, of
which he can get at most 300 pounds (4,800 ounces) per week; and Dominican beans,
of which he can get at most 200 pounds (3,200 ounces) per week. Each pound of
American blend coffee requires 12 ounces of Colombian beans and 4 ounces of
Dominican beans, while a pound of British blend coffee uses 8 ounces of each type of
bean. Profits for the American blend are $2.00 per pound, and profits for the British
blend are $1.00 per pound. What is the Dominican bean constraint?
25) The priority rule which will sequence jobs in the order they are received is:
A.EDD.
B.LIFO.
C.SPT.
D.CR.
E.FCFS.
26) When performing a time study, the analyst converts the observed time into the time
an “average” worker would require working at an acceptable pace by using which of the
following?
A.allowance factors
B.MTM
C.methods analysis
D.performance rating
E.analysis of therbligs