Aggregate planning in manufacturing ties organizational strategic goals to a production
plan.
Unfavorable exchange rates can offset other savings in a location decision.
Johnson€s rule sequences a set of jobs through two different machines or work centers
in the same order.
Price changes are useful for matching the level of demand to the capacity of a facility.
An example of a “hidden” production function is money transfers at banks.
Waiting-line models are useful to operations in such diverse settings as service systems,
maintenance activities, and shop-floor control.
When using the stepping stone method, the closed path sometimes has the shape of a
triangle as diagonal moves are permitted.
Before establishing and implementing strategy, a resources view would ensure that
which of the following resources are available:
A) financial
B) physical
C) human
D) technological
E) all of the above
Favors Distribution Company purchases small imported trinkets in bulk, packages
them, and sells them to retail stores. They are conducting an inventory control study of
all their items. The following data are for one such item, which is not seasonal.
a. Use trend projection to estimate the relationship between time and sales (state the
equation).
b. Calculate forecasts for the first four months of the next year.
For a given product demand, the time series trend equation is 53 – 4 X. The negative
sign on the slope of the equation
A) is a mathematical impossibility
B) is an indication that the forecast is biased, with forecast values lower than actual
values
C) is an indication that product demand is declining
D) implies that the coefficient of determination will also be negative
E) implies that the cumulative error will be negative
Which of the international operations strategies uses import/export or licensing of
existing products?
A) international strategy
B) global strategy
C) transnational strategy
D) multidomestic strategy
E) none of the above
Two critical path activities are candidates for crashing on a CPM network. Activity
details are in the table below. To cut one day from the project€s duration, activity
_________ should be crashed first, adding _________ to project cost.
A) B; $2,000
B) B; $8,000
C) C; $1,000
D) C; $2,000
E) C; $6,000
Normal time for a stopwatch study is equal to
A) Average time Performance rating
B) Average time + Performance rating
C) Average time / Performance rating
D) Average time € Performance rating
E) None of the above
The MPS calls for 50 units of Product A and 60 of B. There are currently 25 of Product
B on hand. Each A requires 2 of Part C; each B requires 5 of C. There are 160 units of C
available. The net requirements for C are
A) 115
B) 175
C) 240
D) 690
E) 700
Red Top Cab Company receives multiple complaints per day about driver behavior.
Over 9 days the owner recorded the number of calls to be 3, 0, 8, 9, 6, 7, 4, 9, 8. What is
the upper control limit for the c-chart?
A) 13.35
B) 8.45
C) 24.00
D) 0.00
E) 9.03
The “bullwhip” effect
A) occurs as orders are relayed from retailers to wholesalers
B) results in increasing fluctuations at each step of the sequence
C) increases the costs associated with inventory in the supply chain
D) occurs because of distortions in information in the supply chain
E) all of the above
A forecast based on the previous forecast plus a percentage of the forecast error is a(n)
A) qualitative forecast
B) naive forecast
C) moving average forecast
D) weighted moving average forecast
E) exponentially smoothed forecast
Time-series data may exhibit which of the following behaviors?
A) trend
B) random variations
C) seasonality
D) cycles
E) They may exhibit all of the above.
A hospital’s layout most closely resembles which of the following?
A) product oriented
B) work cell
C) job shop
D) project
E) none of the above
“Employees cannot produce goods that on average exceed the quality of what the
process is capable of producing” expresses a basic element in the writings of
A) Vilfredo Pareto
B) Armand Feigenbaum
C) Joseph M. Juran
D) W. Edwards Deming
E) Philip B. Crosby
The number of defects after a hotel room cleaning (sheets not straight, smears on
mirror, missed debris on carpet, etc) should be measured using a(n)
A) x-bar chart
B) R-chart
C) p-chart
D) c-chart
E) either x-bar or R chart
A shadow price (or dual value) reflects which of the following in a maximization
problem?
A) the marginal gain in the objective realized by subtracting one unit of a resource
B) the market price that must be paid to obtain additional resources
C) the increase in profit that would accompany one added unit of a scarce resource
D) the reduction in cost that would accompany a one unit decrease in the resource
E) none of the above
What is the EMV for Option 2 in the following decision table?
A) 5,000
B) 21,000
C) 25,000
D) 29,000
E) 45,000
Which of the following is false regarding repetitive processes?
A) They use modules.
B) They allow easy switching from one product to the other.
C) They are the classic assembly lines.
D) They have more structure and less flexibility than a job shop layout.
E) They include the assembly of basically all automobiles.
When __________, in addition to creativity and R&D investments, is critical to
operations strategy, cost may cease to be the primary focus of location criteria.
Identify the seven steps involved in using simulation.
Describe the differences between a Gantt chart and a PERT/CPM network.
What is DRP?
What problems in scheduling can arise if adjustments for learning curve effects in
operations are not made?
A swim club is designing a new pool to replace its old pool. The new pool would need
to last for 10 years since the club is planning on relocating after 10 years. A concrete
shell would cost $100,000 and last for all 10 years. Another option is to install a vinyl
liner that would cost only $75,000 to install. However, the vinyl is not guaranteed to
last for all 10 years, and has a 33% chance of breaking down. Repair of the vinyl would
cost $40,000 and would extend the life of the vinyl liner to the 10 year mark. If both
options are acceptable to the swim club, which one minimizes their cost?
