1) Information technology is the key to success of global supply chains.
2) One potential disadvantage of self-directed teams is higher training costs.
3) Acceptance sampling procedures can be applied to both attribute and variables
inspection.
4) Low-level coding represents items less than $18 per unit.
5) Subcontracting “in” would apply to periods in which our organization has excess
capacity.
6) You cannot make a mistake by locating where labor costs are low.
7) A company needs to locate three departments (X, Y, and Z) in the three areas (I, II,
and III) of a new facility. They want to minimize interdepartmental transportation costs,
which are expected to be $.50 per load per meter moved. An analyst has prepared the
following distances and flow matrices:
What are total weekly costs for the least costly process layout?
A.$2,800
B.$3,150
C.$3,500
D.$4,000
E.$4,500
8) Assembly of a model airplane has a learning curve of 80 percent. The estimated time
to assemble a second identical model airplane is 40 hours. Determine approximately
how much time will be required for:
(A) the eighth unit.
(B) the first 10 units.
9) A clothing manufacturer produces clothing in five locations in the United States. In a
move to vertical integration, the company is planning a new fabric production plant that
will supply fabric to all five clothing plants. The clothing plants have been located on a
coordinate system as follows:
Shipments of fabric to each plant vary per week as follows: plant A, 200 units; plant B,
400 units; plant C, 300 units; plant D, 300 units; and plant E, 200 units. What is the
optimal location for the fabric plant?
A.6.2, 3.0
B.6.0, 4.0
C.6.5, 5.3
D.5.6, 4.4
E.5.0, 3.0
10) Product profiling links key product or service requirements to:
A.market conditions.
B.order sizes.
C.pricing strategies.
D.schedule changes.
E.process capabilities.
11) In a _______ system, customers enter the waiting line, receive service, and leave.
A.fast-track
B.simulated
C.queuing
D.random
E.nonrandom
12) A location analysis has been narrowed down to three locations. The critical factors,
their weights, and the ratings for each location are shown below:
What is the composite score for location B?
A.76
B.75
C.78
D.74
E.76.33
13) A design engineer wants to construct a sample mean chart for controlling the
service life of a halogen headlamp his company produces. He knows from numerous
previous samples that this service life is normally distributed with a mean of 500 hours
and a standard deviation of 20 hours. On three recent production batches, he tested
service life on random samples of four headlamps, with these results:
What is the sample mean service life for sample 2?
A.460 hours
B.495 hours
C.500 hours
D.515 hours
E.525 hours
14) TQM stands for:
A.Taguchi Quality Methods.
B.Tactical Quality Measurements.
C.The Quality Matrix.
D.Total Quality Management.
E.Total Quantity Measurement.
15) Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni
each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and
carrying costs are 4 cents per pound per day. Lead time for each order is three days, and
the pepperoni itself costs $3.00 per pound. If she were to order 80 pounds of pepperoni
at a time, what would be the length of an order cycle?
A.0 days
B.0.25 days
C.3 days
D.4 days
E.5 days
16) The dean of a school of business is forecasting total student enrollment for this
year’s summer session classes based on the following historical data:
What is this year’s forecast using a three-year simple moving average?
A.2,667
B.2,600
C.2,500
D.2,400
E.2,333