Global projects are rarely concerned with cultural differences among team members
because English is the universal business language.
The order cycle is the time between receipts of orders in an inventory cycle.
The moving average method is used for creating forecasts when there is no variation in
demand.
Product layouts have a higher degree of flexibility than process layouts.
The upper level of a work breakdown structure for a project highlights summary
activities and/or major components.
As a simulation model becomes more complex, using a computer application is the
recommended approach.
Minimizing overtime is one of several objectives that could be considered when
constructing a schedule.
The reorder point is the level of inventory that promts a new order to be placed in a
continuous inventory system.
Globalization requires that firms compete only on cost and not quality, speed or
flexibility.
Issues of cultural diversity in project management should only be addressed if and when
they arise.
The ABC classification system is a method for classifying inventory based on the
percentage of total value and the percentage of total quantity.
Deployment is a step in strategy formulation that evaluates the alignment between core
competencies and order winners.
Inventory can take the form of tools and equipment.
The time between orders is variable and the order quantity is constant in the periodic
inventory system.
The probability that a product will operate properly within an expected time frame is
known as quality of performance.
Which of the following is not a strategy for adjusting capacity?
a. level production
b. subcontracting
c. backordering
d. product substitution
In a time study the standard time is calculated as
a. the normal cycle time plus the allowance factor.
b. the normal cycle time minus the allowance factor.
c. the normal cycle time divided by (1 + allowance factor).
d. the normal cycle time multiplied by (1 + allowance factor).
_________________ companies use web-based technologies that directly link to
customers’ websites to eliminate obstacles to global trade.
a. International trade logistics (ITL)
b. Global trade facilitators (GTF)
c. International trade solutions (ITS)
d. None of these answer choices is correct.
The estimated variance for an activity with a most likely time (m) equal to 12 weeks, an
optimistic time (a) equal to 9 weeks, and a pessimistic time (b) equal to 18 weeks is
a. 3.75 weeks.
b. 1.50 weeks.
c. 5.25 weeks.
d. 0.25 weeks.
A tracking signal is computed by
a. multiplying the cumulative error by MAD.
b. multiplying the absolute error by MAD.
c. dividing MAD by the cumulative absolute error.
d. dividing the cumulative error by MAD.
Companies go global to
a. take advantage of favorable costs.
b. to keep abreast of trends and access new technologies.
c. to build reliable sources of supply.
d. All of these answer choices are correct.
The following information relates to a company’s aggregate production planning
activities:
Beginning Workforce = 125 workers
Production per Employee = 500 units per quarter
Hiring Cost = $750 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $10 per unit per quarter
If a level production strategy is used the number of workers required each quarter is
a. 50
b. 75
c. 85
d. 125
Fairco, a family business, is considering making an investment in its manufacturing
operation. Three decisions are under consideration: (1) a large investment; (2) a
medium investment; and (3) a small investment. The business believes that there are
three possible future outcomes for its product: (1) increasing demand; (2) stable
demand; and (3) decreasing demand. The following payoff table describes the decision
situation.
The best decision for Fairco using the Hurwicz criterion with a coefficient of optimism
equal to 0.80 would be to
a. make the large investment.
b. make the medium investment.
c. make the small investment.
d. choose stable demand.
The Taguchi Quality Loss Function implies that a
a. customer’s dissatisfaction increases geometrically as the actual value deviates from
the target value.
b. customer’s satisfaction increases geometrically as the actual value deviates from the
target value.
c. customer’s dissatisfaction decreases geometrically as the actual value deviates from
the target value.
d. customer’s preferences are strongly oriented towards conforming to specifications.
The process of assigning work to limited resources is known as
a. loading.
b. sequencing.
c. monitoring.
d. dispatching
Which of the following is not a typical component of lead time?
a. processing time
b. maintenance time
c. waiting time
d. setup time
When higher levels of output cost more per unit to produce, the facility realizes
a. best operating level.
b. capacity cushion.
c. diseconomies of scale.
d. economies of scale.
Which of the following is not one of the basic steps involved in developing a schedule?
a. define the activities
b. sequence the activities
c. estimate the time required to complete each activity
d. identify the project cost
The daily demand for a company’s product follows the probability distribution below:
Use the following random numbers to simulate the product’s demand for the next five
weeks: 72, 27, 93, 17, 47.
If the first random number interval begins with 1 then the estimated total demand for
the simulated five week period is
a. 200.
b. 230.
c. 250.
d. 280.
Snacknow, a food service firm, is calculating its monthly productivity report. From the
following raw data calculate the labor productivity.
a. 0.220
b. 0.476
c. 0.800
d. 1.000
The direct labor time required to produce the first sailboat of a particular model was
3,000 hours. If the company believes that an 80% learning curve applies to the
production of this model sailboat then the direct labor time required to produce the
second boat is estimated to be
a. 600 hours.
b. 2,400 hours.
c. 3,600 hours.
d. 4,000 hours.