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1) Organizations that are capable of responding quickly to changing requirements can
use a shorter forecast horizon and therefore benefit from more accurate forecasts.
2) According to learning curve theory, for certain kinds of tasks the cost per unit
decreases as the number of repetitions increases.
3) Trust is a factor influencing productivity.
4) Most of the time what is called product or service design is actually a redesign of an
existing product or service.
5) Concurrent engineering means that at least two engineers are involved in product
design at the same time.
6) The development and application of MRP depended upon two developments: (1) the
recognition of the difference between independent and dependent demand, and (2):
A.computers.
B.development of the EOQ model.
C.inventory control systems.
D.blanket purchase orders.
E.the Internet.
7) Seasonal variations are often easier to deal with in capacity planning than random
variations because seasonal variations tend to be:
A.smaller.
B.larger.
C.predictable.
D.controllable.
8) If a firm has reached the point at which further reducing waiting time is not
economically feasible, reducing the ______________ is sometimes attractive.
A.channels
B.perceived service time
C.capacity underload
D.perceived waiting time
E.system underutilization
9) The president of a consulting firm wants to minimize the total number of hours it will
take to complete four projects for a new client. Accordingly, she has estimated the time
it should take for each of her top consultantsCharlie, Betty, Johnny, and Rickto
complete any of the four projects, as follows:
In how many different ways can she assign these consultants to these projects?
A.4
B.8
C.16
D.24
E.256
10) A company is designing a product layout for a new product. It plans to use this
production line eight hours a day in order to meet projected demand of 480 units per
day. The tasks necessary to produce this product are:
If the company wants the output rate to be equal to demand, what would be the
efficiency of this line with the minimum number of workstations?
A.100 percent
B.92.5 percent
C.75 percent
D.87.5 percent
E.90 percent
11) Job X, which has a duration of four days, is due by the close of business on Friday,
December 23. Without looking at the work already scheduled on X's required resource,
the scheduler schedules X to be begun on the morning of Tuesday, December 20. This
is an example of:
A.infinite scheduling.
B.finite scheduling.
C.forward scheduling.
D.backward scheduling.
E.prioritization.
12) The new owner of a beauty shop is trying to decide whether to hire one, two, or
three beauticians. She estimates that profits next year (in thousands of dollars) will vary
with demand for her services, and she has estimated demand in three categories, low,
medium, and high.
If she uses the Laplace criterion, how many beauticians will she decide to hire?
A.one
B.two
C.three
D.either one or two
E.either two or three
13) 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:
What would be the total annual costs at the point of indifference?
A.$300,000
B.$240,000
C.$380,000
D.$220,000
E.$760,000
14) The MRP input storing information on the status of each item by time period (e.g.,
scheduled receipts, lead time, lot size) is the:
A.master production schedule.
B.bill of materials.
C.inventory records.
D.assembly time chart.
E.net requirements chart.
15) Consider the following work breakdown structure:
What is the estimated expected (mean) time for activity D?
A.32 days
B.41 days
C.44 days
D.42 days
E.40 days
16) The president of State University wants to forecast student enrollments for this
academic year based on the following historical data:
What is the forecast for this year using exponential smoothing with alpha = .5, if the
forecast for two years ago was 16,000?
A.18,750
B.19,500
C.21,000
D.22,650
E.22,800
17) The four dimensions of quality that are sometimes used to determine fitness for use
of a product are:
A.performance, special features, durability, and service after sale.
B.performance, special features, conformance, and reliability.
C.special features, conformance, reliability, and durability.
D.performance, conformance, reliability, and durability.
E.special features, conformance, durability, and service after sale.
