What is the practice of procuring from external sources services or products that are
normally part of an organization?
A) nearshoring
B) farshoring
C) offshoring
D) outsourcing
E) backsourcing
Which of the following statements regarding PERT analysis is true?
A) Each activity has two estimates of its duration.
B) Project variance is the sum of all activity variances.
C) Project standard deviation is the sum of all critical activity standard deviations.
D) Only critical activities contribute to the project variance.
E) None of the above is true.
WBS stands for which of the following project management tools?
A) Work Break Schedule
B) Work Breakdown Status
C) Work Breakdown Schedule
D) Work Breakdown Structure
E) None of the above
Just-in-time systems make demands on layouts, including
A) distance reduction
B) increased flexibility
C) reduced space and inventory
D) cross-trained, flexible employees
E) All of the above are JIT influences on layout.
A project whose critical path has an estimated time of 120 days with a variance of 100
has a 20% chance that the project will be completed before day (rounded to nearest
day).
A) 98
B) 112
C) 120
D) 124
E) 220
An acceptance sampling plan is to be designed to meet the organization’s targets for
product quality and risk levels. Which of the following is true?
A) n and c determine the AQL.
B) AQL, LTPD, and collectively determine n and c.
C) n and c are determined from the values of AQL and LTPD.
D) ± and ² are determined from the values of AQL and LTPD.
E) None of the above is true.
A process sheet is a type of
A) assembly drawing
B) assembly chart
C) route sheet
D) work order
E) bill of material
Marketing issues such as advertising, image, and promotion are important to quality
because
A) they define for consumers the tangible elements of a service
B) the intangible attributes of a product (including any accompanying service) may not
be defined by the consumer
C) they educate consumers on how to use the product
D) they make the product seem more valuable than it really is
E) they raise expenses and therefore decrease profitability
A foundry produces circular utility access hatches (manhole covers). Currently, 120
covers are produced in a 10-hour shift. If labor productivity can be increased by 20%, it
would then be
A) 14.4 covers/hr
B) 24 covers/hr
C) 240 covers/hr
D) 1200 covers/hr
E) none of the above
To use yield management strategies a business should have which combination of
costs?
A) high variable and high fixed
B) low variable and high fixed
C) high variable and low fixed
D) low variable and low fixed
E) either A or B
An airline ticket counter, with several agents for one line of customers, is an example of
a
A) single channel, single phase system
B) single channel, multi-phase system
C) multi-channel, single phase system
D) multi-channel, multi-phase system
E) none of the above
In location planning, environmental regulations, cost and availability of utilities, and
taxes are
A) global factors
B) country factors
C) regional/community factors
D) site-related factors
E) none of the above
When safety stock is deemed absolutely necessary, the usual policy is to build it into
which category of the MRP logic?
A) Gross Requirements
B) Scheduled Receipts
C) Projected On Hand
D) Net Requirements
E) Planned Order Receipts
Arnold Palmer Hospital uses which focus?
A) process
B) repetitive
C) product
D) mass customization
E) A and D
Enterprise resource planning (ERP)
A) seldom requires software upgrade or enhancement
B) does not integrate well with functional areas other than operations
C) is inexpensive to implement
D) automates and integrates the majority of business processes
E) all of the above
Ten high-technology batteries are tested for 200 hours each. One failed at 20 hours; all
others completed the test. FR(%) is __________ and MTBF is __________.
A) 10%; 1/1820
B) 90%; 1/1820
C) 10%; 1820 hours
D) 10%; 1980 hours
E) cannot calculate from information provided
Explain the graphical shapes used in decision tree analysis.
__________ determines the order in which jobs should be done at each work center.
The text states that trial-and-error methods continue to be widely used, in spite of the
development of various models. Using your knowledge from earlier in this course or
from other quantitative courses you might have taken, speculate on why managers
continue to use “primitive” devices when such sophistication is available.
A(n) __________ uses symbols to analyze the movement of people or material.
The diagram below identifies the elements of service as provided by a soft drink
vending machine. Each element has an estimate of its own reliability, independent of
the others. What is the reliability of the ‘system”?
A regional grocery chain spends 70 percent of its sales in the supply chain, and has a
net profit margin of 2 percent. They have just initiated an Internet-based inventory
management program that is expected to save the chain $500,000 per year. What is the
equivalent increase in sales to this saving? Use Table 11.3, reproduced below.
