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In a decision tree, the expected monetary values are computed by working from right to
left.
The transportation model is a special class of linear programming models.
Processes can be environmentally friendly and socially responsible while still
contributing to profitable strategies.
The factor-rating method is an excellent tool for dealing with both country risk
assessment and source provider selection problems.
The allowances that convert normal time to standard time have three components:
personal time allowances, delay allowances, and fatigue allowances.
By starting random number intervals at 01, not 00, the top of each range is the
cumulative probability.
In the vendor evaluation phase, most companies will use the same list of criteria and the
same criteria weights.
A transportation problem with 8 sources and 6 destinations will have an optimal
solution that uses at most 13 of the 48 possible routes.
Outsourcing has expanded to become a major strategy in business due to the continuing
move toward specialization in an increasingly technological society.
MRP is an excellent tool for scheduling products with variable lead times.
One classic type of negotiation strategy is the market-based price model.
Firms using the global strategy can be thought of as "world companies."
Slack is the amount of time an activity can be delayed without delaying the entire
project.
Four of the most widely used waiting line models€M/M/1 or A, M/M/S or B, M/D/1 or
C, and Limited population or D€all share three characteristics, which are
A) normal arrivals, FIFO discipline, and normal service times
B) Poisson arrivals, FIFO discipline, and a single-service phase
C) Poisson arrivals, FIFO discipline, and exponential service times
D) Poisson arrivals, no queue discipline, and exponential service times
E) none of these
Which of the following is usually not one of the top considerations in choosing a
country for a facility location?
A) availability of labor and labor productivity
B) exchange rates
C) attitude of governmental units
D) zoning regulations
E) location of markets
The 5Ss
A) have the "flavor" of a housekeeping list
B) are a checklist for lean operations
C) have become a list of seven items in American practice
D) can be used to assist with necessary changes in organizational culture
E) All of these are true.
The process of identifying other organizations that are best at some facet of your
operations and then modeling your organization after them is known as
A) continuous improvement
B) employee empowerment
C) benchmarking
D) copycatting
E) patent infringement
Which of the following statements regarding "proximity" in the location decision is
false?
A) Service organizations find that proximity to market is the most critical primary
location factor.
B) Manufacturers want to be near customers when their product is bulky, heavy, or
fragile.
C) Perishability of raw materials is a good reason for manufacturers to locate near the
supplier, not the customer.
D) Reduction in bulk is a good reason for a manufacturer to locate near the supplier.
E) Clustering among fast food chains occurs because they need to be near their labor
supply.
Which one of the following is not a characteristic of a Model C or M/D/1 system?
A) single channel
B) single phase
C) Poisson arrival rate pattern
D) exponential service time pattern
E) unlimited population size
Which is not true regarding differences between goods and services?
A) Tangible goods are generally produced and consumed simultaneously; services are
not.
B) Most goods are common to many customers; services are often unique to the final
customer.
C) Services tend to have a more inconsistent product definition than goods.
D) Services tend to have higher customer interaction than goods.
E) All of the above are true.
A manager must decide on the mix of products to produce for the coming week.
Product A requires three minutes per unit for molding, two minutes per unit for
painting, and one minute for packing. Product B requires two minutes per unit for
molding, four minutes for painting, and three minutes per unit for packing. There will
be 600 minutes available for molding, 600 minutes for painting, and 420 minutes for
packing. Both products have contributions of $1.50 per unit.
a. Algebraically state the objective and constraints of this problem.
b. Plot the constraints on the grid below and identify the feasible region.
Solving a load-distance problem for a process-oriented layout requires that
A) the difficulty of movement be the same for all possible paths
B) pickup and setdown costs vary from department to department
C) the cost to move a load be the same for all possible paths
D) takt time be less than 1
E) CRAFT software examine all possible department configurations
Which distribution system is the fastest growing mode of shipping?
A) railroads
B) trucks
C) airfreight
D) waterways
E) pipelines
Which of the following costs would be incurred even if no units were produced?
A) raw material costs
B) direct labor costs
C) transportation costs
D) building rental costs
E) purchasing costs
A partially solved PERT problem is detailed in the table below. Times are given in
weeks.
a. Calculate the expected time for each activity. Enter these values in the appropriate
column in the table above.
b. Which activities form the critical path?
c. What is the estimated time of the critical path?
d. What are the project variance and the project standard deviation?
e. What is the probability of completion of the project after week 40?
All of the following are "opportunities" for supply-chain management except
A) postponement
B) drop shipment
C) blanket orders
D) channel assembly
E) line balancing
Which of the following statements regarding Starbucks Coffee is false?
A) The firm plans to open three new cafes per day around the world.
B) The firm uses GIS to evaluate every site decision.
C) The firm's cafes are exclusively in traditional settings: malls, tourist areas, and
airports.
D) The firm places cafes into ever more innovative locations.
E) The firm put cafes in Japan, even though that country had no GIS data available.
Study of waiting-line models helps operations managers better understand
A) service systems such as bank teller stations
B) maintenance activities that might repair broken machinery
C) shop-floor control activities
D) service systems such as amusement park rides
E) all of the above
Forecasts are usually classified by time horizon into three categories
A) short-range, medium-range, and long-range
B) finance/accounting, marketing, and operations
C) strategic, tactical, and operational
D) exponential smoothing, regression, and time series
E) departmental, organizational, and industrial
Which of the following are true regarding allowances in time studies?
A) They have a "constant" and a "variable" component.
B) They are adjusted for work conditions such as heating, lighting, and noise.
C) They include allowances for personal time, delay, and fatigue.
D) They represent the adjustment between normal time and standard time.
E) All of the above are true.
Which of the following statements about aggregate planning is false?
A) Hiring, layoffs, overtime, and subcontracting are methods of manipulating capacity.
B) Aggregate planning produces a plan detailing which products are made and in what
quantities.
C) Yield management is a way of manipulating product or service demand.
D) Aggregate planning uses the adjustable part of capacity to meet production
requirements.
E) The transportation method is an optimizing technique for aggregate planning.
Reddick's Specialty Electronics makes weatherproof surveillance systems for parking
lots. Demand estimates for the next four quarters are 25, 9, 13, and 17 units. Prepare an
aggregate plan that uses inventory, regular time and overtime and back orders.
Subcontracting is not allowed. Regular time capacity is 15 units for quarters 1 and 2, 18
units for quarters 3 and 4. Overtime capacity is 3 units per quarter. Regular time cost is
$2000 per unit, while overtime cost is $3000 per unit. Back order cost is $300 per unit
per quarter; inventory holding cost is $100 per unit per quarter. Beginning inventory is
zero.
The data inputs for this problem, and the optimal solution, generated by microcomputer
software, appear below. Answer the following questions based on the scenario and the
solution.
a. How many total units will be produced in quarter 1 for delivery in quarter 1?
b. How many units in total will be used to fill back orders over the four quarters?
c. What is the cost to produce one unit in Quarter 4 using overtime to deliver in quarter
1 (filling a back order)?
d. At the end of quarter 3, what is the ending inventory of finished systems?
e. What is the total cost of the solution?
f. What is the average cost per unit?
The defect rate for a product has historically been about 1.6%. What are the upper and
lower control chart limits for a p-chart, if you wish to use a sample size of 100 and
3-sigma limits?
What is mass customization?
Why do range charts exist? Aren't x-bar charts enough?
Consider the following constraints from a two-variable linear program.
<1> X >=1
<2> Y >=1
<3> X + Y =<9
If these are the only constraints, which of the following points (X, Y) cannot be the
optimal solution?
E) The question cannot be answered without knowing the objective function.
The __________ is a special class of linear programming models that involves
assigning tasks or jobs to resources.
Osprey Fabrication has the following aggregate demand requirements and other data for
the upcoming four quarters.
Which of the following production plans is better: Plan A-chase demand by hiring and
layoffs; Plan B-pure level strategy, or Plan C-1350 level with the remainder by
subcontracting?
A hotel room that goes unrented, a dental appointment that no patient booked, and an
airline seat that went unsold, are all examples of __________ in services inventory.
To use the table of learning curve coefficients, you must specify __________ and
__________.
Given the following data, calculate the three-year moving averages for years 4 through
10.
Pierre's Motorized Pirogues and Mudboats is setting up an acceptance sampling plan for
the special air cleaners he manufactures for his boats. His specifications, and the
resulting plan, are shown on the POM for Windows output below. Pierre is a bit
confused. He mistakenly thinks that acceptance sampling will reject all bad lots and
accept all good lots. Explain why this will not happen.
