1) As a general rule, continuous processing systems produce products for inventory
rather than for customer order.
2) A benefit of the lean philosophy is the flexibility to respond quickly to changing
customer requirements.
3) A net-change MRP system is one that is updated periodically but not less frequently
than once a week.
4) The cost of customer waiting is easy to estimate, the number waiting multiplied by
the wait cost per minute.
5) Technology has made communication with global operations as easy as local
communication.
6) Recent changes to ISO guidelines stress continuous improvement regardless of how
good you currently are.
7) Lean operations cannot easily handle changes of output or product mix.
8) A quality circle is a cross-functional team focused on quality.
9) Measured day work refers to an output-based system.
10) Lean purchasing requires frequent contract bidding by multiple sources to ensure
the buyer of competitive prices.
11) Job enrichment involves giving a workers a greater share of the total task, which is
why they feel enriched.
12) The percentage of idle time in an assembly line is called cycle time.
13) When to order can be calculated by the ROP and expressed as a quantity.
14) Concluding that a process is out of control when it is not is known as a Type I error.
15) A manufacturing firm is considering two locations for a plant to produce a new
product. The two locations have fixed and variable costs as follows:
At what annual output would the company be indifferent between the two locations?
A.60,000 units
B.15,000 units
C.10,000 units
D.20,000 units
E.4,000 units
16) 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 throughput time for the optimal schedule?
A.24 hours
B.25 hours
C.26 hours
D.28 hours
E.50 hours
17) In theory of constraints scheduling, the synchronization of the sequence of
operations is referred to as the:
A.buffer.
B.bottleneck.
C.constraint.
D.rope.
E.drum.
18) The type of layout which features departments or other functional groupings in
which similar activities are performed is:
A.process.
B.product.
C.fixed-position.
D.mass.
E.unit.
19) The maker of the world-famous Chocolate Chip Cookies needs to design a product
layout for a new product, Mint Chocolate Chip. The company plans to use this new
production line eight hours a day in order to meet projected demand of 1,440 cases per
day. The following table describes the tasks involved in the production of a Mint
Chocolate Chip Cookie.
For output to equal projected demand, what is the minimum number of workstations
needed?
A.6
B.4.5
C.3
D.2.7
E.2
20) Which of the following is not a basic option for altering the availability of capacity
in a service environment?
A.overtime
B.hiring/layoff
C.part time
D.inventory
E.All of the choices are options.
21) Product design and process selection are examples of _______ decisions.
A.financial
B.tactical
C.system design
D.system operation
E.forecasting
22) A computer-based information system designed to handle ordering and scheduling
of dependent-demand inventories is:
A.computer-aided manufacturing.
B.computer-integrated manufacturing.
C.economic order quantity.
D.material requirements planning.
E.economic run size.
23) A single-bay car wash with a Poisson arrival rate and an exponential service time
has cars arriving an average of 10 minutes apart, and an average service time of four
minutes. The system utilization is:
A..24
B..40
C..67
D.2.50
E.1.25
24) Which of the following is least likely to affect the cost an organization incurs in
producing its products or services?
A.price
B.productivity
C.location
D.quality
E.inventory management
25) Suppose a three-period weighted average is being used to forecast demand. Weights
for the periods are as follows: wt-3 = 0.2, wt-2 = 0.3 and wt-1 = 0.5. Demand observed
in the previous three periods was as follows: At-3 = 2,200, At-2 = 1,950, At-1 = 2,050.
What will be the demand forecast for period t?
A.2,000
B.2,095
C.1,980
D.2,050
E.1,875
26) Operation X feeds into operation Y. Operation X has an effective capacity of 55
units per hour. Operation Y has an effective capacity of 50 units per hour. Finding a way
to increase Y’s effective capacity would be an example of ________ a constraint.
A.overcoming
B.cushioning
C.insourcing
D.cycling
E.repositioning
27) Which one of the following is not a basic option for altering demand?
A.promotion
B.backordering
C.pricing
D.subcontracting
E.All are demand options.
28) Which of the following is not a stage in the decision-making process?
A.Select the best alternative.
B.Develop suitable alternatives.
C.Analyze and compare alternatives.
D.Monitor the competition.
E.Specify objectives.
29) The owner of Darkest Tans Unlimited in a local mall is forecasting this month’s
(October’s) demand for the one new tanning booth based on the following historical
data:
What is this month’s forecast using exponential smoothing with alpha = .2, if August’s
forecast was 145?
A.144
B.140
C.142
D.148
E.163
30) Customers filter into a record shop at an average of one per minute (Poisson) where
the service rate is 15 per hour (Poisson).
Determine the following:
(A) the average number of customers in the system with eight servers
(B) the minimum number of servers needed to keep the average time in the system to
under six minutes
31) 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 shortest processing time first priority rule to schedule these jobs, what
will be the average job tardiness?
A.2 hours
B.2.2 hours
C.2.33 hours
D.2.4 hours
E.3 hours
32) There are four activities on the critical path. Coincidentally, their standard
deviations are all equal to 4 . The standard deviation of the critical path is therefore
equal to:
A.2
B.4
C.8
D.16
E.64
33) Which of the following is not generally considered to be a measure of system
performance in a queuing analysis?
A.the average number waiting in line
B.the average number in the system
C.system utilization
D.the cost of servers plus customer waiting cost
E.average serving time
34) Consider the project depicted by the following A-O-A diagram:
What is the probability that this project’s duration will exceed 8.5 weeks?
35) The efficiency of a productive unit is 60 percent. The unit produces an average of
20 forklift trucks per day. Determine the effective capacity of the unit.
36) A manager is using the equation below to forecast quarterly demand for a product:
Yt = 6,000 + 80t where t = 0 at Q2 of last year
Quarter relatives are Q1 = .6, Q2 = .9, Q3 = 1.3, and Q4 = 1.2.
What forecasts are appropriate for the last quarter of this year and the first quarter of
next year?
37) Consider the following information:
What are total costs for each period?
38) There are three jobs to be done and three resources with which to do them. Each
resource will take a specific time to do each job, as shown in the following table:
What is the result of the row and column reductions?
39) It takes a worker with a 90 percent learning curve 72.9 minutes to complete the
fourth unit of a seven-unit job. Estimate the amount of time the worker spent on the first
two units.