1) Applied research is the major R&D effort of business organizations because of their
desire for commercial applications.
2) Environmental scanning is a search for events or trends that present either threats or
opportunities to the organization.
3) MRP output reports are divided into two main groups, daily and weekly.
4) Job enrichment involves an increase in the level of responsibility for planning and
coordinating tasks.
5) An example of a tactical operations management decision is determining
employment levels.
6) The assignment model seeks an optimum matching of tasks and resources.
7) Trend-adjusted exponential smoothing uses double smoothing to add twice the
forecast error to last period’s actual demand.
8) Costs of inspectors, testing, test equipment, and labs are examples of:
A.internal failure costs.
B.external failure costs.
C.appraisal costs.
D.prevention costs.
E.replacement costs.
9) Professor Very Busy needs to allocate time next week to include time for office
hours. He needs to forecast the number of students who will seek appointments. He has
gathered the following data:
What is this week’s forecast using a three-week simple moving average?
A.49
B.50
C.52
D.65
E.78
10) Developing work assignments in a job shop in a certain firm has a learning curve of
80 percent. If the second set of assignments takes 12 minutes, determine the length of
time required for the following:
(A) the fifth set.
(B) sets 3, 4, and 5 together.
11) Process choice is _________ driven.
A.demand
B.operations
C.marketing
D.process
E.capacity
12) A queuing system has four crews with three members each. The number of ‘servers”
is:
A.3
B.4
C.7
D.12
E.1
13) Suppose the first unit of output required 800 labor hours, and the second required
only 640. How many hours will be reduced from the second unit to the fourth?
A.128
B.256
C.512
D.486
E.322
14) The fundamental purpose for the existence of any organization is described by its:
A.policies.
B.procedures.
C.corporate charter.
D.mission statement.
E.bylaws.
15) A transportation planner has set up the following spreadsheet formulation of a
transportation problem:
This model indicates that it costs ________ dollars to ship one unit from location(s)
_______ to location(s) ___.
A.60; I; A, B, & C
B.30; I, II, & III; A
C.5; II; B
D.9; II; A
E.7; III; C
16) Given the following historical data, what is the simple three-period moving average
forecast for period 6?
A.67
B.115
C.69
D.68
E.68.67
17) The comprehensive approach used in lean systems to deal with quality includes:
A.designing quality into products and processes.
B.insisting vendors provide high-quality materials.
C.making workers responsible for producing high quality.
D.designing in quality, insisting on quality materials, and making workers responsible
for quality.
E.100 percent inspection of raw materials, work-in-process, and finished goods.
18) Which statement concerning MRP II is false?
A.It is basically a computerized system.
B.It can handle complex planning and scheduling quickly.
C.It involves other functional areas in the production planning process.
D.It involves capacity planning.
E.It produces a production plan which includes all resources required.
19) 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:
Between what limits can the manager be 68.26 percent confident about the true
proportion of time spent mowing?
A.0 and .683
B..475 and .525
C..45 and .55
D..425 and .575
E..4 and .6