1) A maximization problem may be characterized by all greater than or equal to
constraints.
2) The main issue in the design of process layouts concerns the relative positioning of
the departments involved.
3) The purpose of statistical process control is to ensure that historical output is random.
4) Price is the primary determining factor in choosing a vendor since most products are
essentially the same.
5) The design of work systems, because objective standards are used, avoids most
ethical issues.
6) Taguchi design methods involve identifying the optimal operating or environmental
conditions for a given product.
7) A time fence in the master schedule is used to prevent unauthorized people from
making changes to the schedule.
8) In a theme park like Disney world, reservation systems are a win-lose situation since
only those holding reservations are satisfied.
9) A benefit of lean systems is that lead times are increased, allowing more time for
processing.
10) One of the potential benefits of self-directed teams is higher productivity and
greater worker satisfaction.
11) Forecasts based on judgment and opinion do not include:
A.executive opinion.
B.salesperson opinion.
C.second opinions.
D.customer surveys.
E.Delphi methods.
12) The owner of Touchdown Sports Bar wants to develop a time standard for the task
of mixing a specialty cocktail. In a preliminary study, he observed one of his bartenders
perform this task seven times with an average of 90 seconds and a standard deviation of
five seconds.
How many observations should be made if he wants to be 95.44 percent confident that
the maximum error in the observed time is one second?
A.64
B.86
C.100
D.144
E.169
13) The basis for use of the beta distribution in PERT is:
A.essentially theoretical.
B.its adaptability.
C.its symmetry.
D.It is bimodal.
E.It can easily be converted to a normal distribution.
14) Which of the following factors would tend to reduce productivity?
A.improvements in workplace safety
B.reductions in labor turnover
C.more inexperienced workers
D.reductions in the scrap rate
E.less variety in the product mix
15) What combination of x and y will provide a minimum for this problem?
A.x = 0, y = 0
B.x = 0, y = 3
C.x = 0, y = 5
D.x = 1, y = 2.5
E.x = 6, y = 0
16) Which of the following lot sizing methods does not attempt to balance ordering (or
setup) and holding costs?
A.economic order quantity
B.economic run size
C.lot-for-lot
D.part-period
E.all of these
17) The purpose of cycle counting is to:
A.count all the items in inventory.
B.count bicycles and motorcycles in inventory.
C.reduce discrepancies between inventory records and actual quantities.
D.reduce theft.
E.count 10 percent of the items each month.
18) Consider the following work breakdown structure:
What is the estimated expected (mean) time for project completion?
A.160 days
B.170 days
C.200 days
D.210 days
E.300 days
19) 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:
If annual demand is estimated to be 20,000 units, which location should the company
select?
A.Atlanta
B.Phoenix
C.either Atlanta or Phoenix
D.reject both Atlanta and Phoenix
E.build at both locations
20) Offering an “early bird” special at a restaurant to reduce waiting times during peak
hours is an example of:
A.demand shifting.
B.queuing psychology.
C.service phasing.
D.service standardization.
E.outsourcing.
21) Which is not a characteristic of simple moving averages applied to time series data?
A.smoothes random variations in the data
B.weights each historical value equally
C.lags changes in the data
D.requires only last period’s forecast and actual data
E.smoothes real variations in the data
22) The optimum amount of preventive maintenance occurs when:
A.total breakdown costs are at a minimum.
B.total preventive maintenance costs are at a minimum.
C.each maintenance component cost is at a minimum.
D.total maintenance costs are at a maximum.
E.total maintenance costs are at a minimum.
23) One way to increase reliability is to:
A.improve component design.
B.increase the number of service stations.
C.increase mean repair time.
D.increase the number of dependent components.
E.reduce production capacity.