The financial plan indicates the sources and uses of funds, expected cash flows,
anticipated profits and projected budgets.
A Gantt chart is a basic scheduling tool for low-volume systems.
Predetermined time data is a published database of elemental time data used for
establishing standard times.
Today many corporate CEOs have come through the ranks of operations.
Finance and Customer Support are the two primary functions interested in capacity
planning and location analysis.
Victoria’s Secret has used the Internet to conduct a fashion show in order to boost sales.
The best operating level is the volume of output that results in the lowest average unit
cost.
The later that defects are found, the less costly they are to correct.
In Excel Solver, the Target Cell corresponds to the objective function in the algebraic
model.
In a time study, personal time, fatigue, and unavoidable delays (PFD) during the typical
work day are accounted for in the allowance factor.
A measure of how efficiently inputs are being converted into outputs is called
utilization.
An advantage of producing at average demand levels is that it allows for a lower
investment in capacity.
The termination phase in the project life cycle involves identifying the need for the
project.
Precedence relationships structure the sequencing of activities.
If a process has a ‘faster’ cycle time, then its cycle time has decreased.
In Excel, part of a formula’s references can be relative while another part can be
absolute.
For the following data, verify the amount of employees needed.
a) 20
b) 5
c) 34
d) 25
e) 15
When should 100% inspection be used?
a) Whenever attributes are being measured
b) When the expected cost of a defective item exceeds the cost of inspecting a unit
c) With destructive testing
d) When the cost of inspecting a unit exceeds the expected cost of a defective item
e) 100% inspection should never be used
Which of the following is not a valid assumption of the break’‘even model?
a) only one product is involved
b) everything which is produced will be sold
c) the revenue per unit will be the same regardless of volume
d) the fixed cost per unit will be the same regardless of volume
e) the variable cost per unit will be the same regardless of volume
From an operations view point, single-phase systems operators must:
a) have greater skills
b) adjust their work schedules
c) be capable of multi-tasking customers
d) be unionized
e) be competitive
Consider a pizza parlor. Which of the following would not be a valid productivity
measure?
a) pizzas produced / number of workers used
b) pizzas produced / number of ovens
c) pizzas produced / cost of workers and ingredients
d) pizzas produced / cost of all inputs used
e) labor hours / pizzas produced
Scheduled receipts are _________________________________________.
a) planned orders
b) planned orders offset by lead time
c) gross requirements offset by lead time
d) gross requirements minus inventory
e) replenishment orders that have been placed but not yet received
4! = _________?
a) 0
b) 1
c) undefined
d) 4
e) 24
Consider a production line that has a station with two machines, and each unit produced
at the station needs to be processed by both of the machines. (A unit cannot be worked
on by both machines simultaneously.) Each machine has a production capacity of 4
units per hour. What is the lowest possible cycle time of the station?
a) 4 minutes per unit
b) 8 minutes per unit
c) 7.5 minutes per unit
d) 30 minutes per unit
e) 15 minutes per unit
Uhura Enterprises provides consulting services for customers. Consultants are brought
in for two-hour shifts. A consultant will spend one full hour with a customer. The
customers remain for that hour and then leave. Each consultant is paid $25 per hour. Let
Xirepresent the number of consultants starting their shift at hour i, (i = 1,2,3,4). The
firm wishes to minimize salary costs while satisfying demand. Customer demand is as
follows.
Suppose that two of the customers scheduled to arrive at 1:00 could be rescheduled to
arrive at 2:00. Which of the following sets of constraints would allow for this
rescheduling option? (In the options below, q and qiare binary (0-1) variables.)
a) X1≥ 4 and X2≥ 5 and X1≥ 2 and X2≥ 7
b) X1≥ 4 and X2+ X3≥ 15 and X1≥ 2 and X2+ X3≥ 17
c) 50X1≥ 4 and 50X2+ 50X3≥ 15 and 50X1≥ 2 and 50X2+ 50X3≥ 17
d) X1≥ 4 ‘“ 5000q and X2+ X3≥ 15 ‘“ 5000q and X1≥ 2 ‘“5000(1-q) and X2+
X3≥ 17 ‘“5000(1-q)
e) X1≥ 4 + 5000q and X2+ X3≥ 15 + 5000q and X1≥ 2 + 5000(1-q) and X2+
X3≥ 17 + 5000(1-q)
Which of the following would not be a basic element into which a job would be split
when using predetermined time data?
a) reach
b) sort
c) grasp
d) insert
e) turn
Which activity appears to be most frequently outsourced by large companies?
a) Purchasing
b) Marketing
c) Finance
d) Accounting
e) Manufacturing
Who is responsible for the success and failure of a project?
a) CEO
b) Program Manager
c) Project Manager
d) Project Sponsor
e) Functional Manager
At the break-even point, _____________________.
a) output equals capacity
b) total cost equals total revenue
c) total cost equals profit
d) variable cost equals fixed cost
e) variable cost equals total revenue
Which of the following is not a direct input into the MRP system?
a) MPS
b) aggregate plan
c) inventory records
d) bill of material data
e) None of these answer choices are correct
Costs of quality inspections, testing, test equipment, and labs are examples of
__________ costs.
a) Internal failure
b) External failure
c) Appraisal
d) Prevention
e) Replacement
Annie’s Smart Dog annual fair concession stand operates for five days. Last year they
sold the following number of supreme smart dogs. Calculate (a) MAD, (MSE) and
using a tracking signal of+/- 8 determine if the forecast should be reviewed.
The best operating level is the volume of output that results in the
____________________.
a) lowest average unit cost
b) most revenue
c) maximum use of machinery
d) best quality
e) optimum product mix
What does job flow time measure?
a) the time a job spends in the shop
b) due-date performance
c) the amount of time it takes to finish a batch of jobs
d) job tardiness
e) job lateness
Which of the following is mostly like to be an internal resource constraint?
a) increasing market demand
b) raw material shipping problems
c) decreasing market demand
d) no overtime
e) a regular bottleneck in the product process
Jim-O’s fast focus restaurant is opening up a new branch. Based on demand forecast the
following service personnel levels are anticipated. What days will employee #1 have
off?
a) Mon – Tue
b) Tue – Wed
c) Wed – Thur
d) Thur – Fri
e) Fri – Sat
Which of the following is a reason capacity and location decisions are usually made
simultaneously?
a) in order to get them in the operating budget on a consistent basis
b) it makes it easier to understand capacity
c) often there is not enough time available to separate them
d) they require the same types of information
e) the size of a new facility may affect its location
Excel’s COUNT function returns the ______ of cells containing numerical values.
List some advantages of small order quantities.
Big Oil Refinery is losing money every month. They cannot shut down the refinery.
What quantity of product should they make in an effort to break even? Their primary
product sale price is $1.50 per gallon. The production fixed cost is $36,000/day. The
variable cost per gallon is $1.20.
An observation’s residual error is the ________________________ distance between
itself and the linear regression line.
Items that are sold as complete or repair parts are called ______________________.
HEAVY, Inc. produces two lines of heavy equipment, earthmoving and forestry. The
largest member of the earthmoving equipment line (the E-7) and the largest member of
the forestry equipment line (the F-7) are produced in the same departments and with the
same equipment. HEAVY’s marketing manager has judged that the firm will be able to
sell as many E-7s or F-7s as the firm can produce. The contribution margins are
$15,000 for each E-7 and $14,000 for each F-7. There are 170 hours available in
department A and 185 hours available in department B. Each E-7 produced uses 10
hours in department A and 20 hours in department B. Each F-7 uses 15 hours in
department A and 10 hours in department B. Furthermore, in order to maintain the
current market position, senior management has decreed that it is necessary to build at
least one F-7 for every three E-7s produced. Finally, a major dealer has ordered a total
of at least five E-7s and F-7s (in any combination) for next month, so at least that many
must be produced. Formulate a Linear Program to determine the best production policy
for next month.