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1) MRP II did not replace or improve the basic MRP.
2) If a system depends on two subsystems functioning when activated, the reliability of
that system is equal to that of the less reliable subsystem.
3) Monitoring inventory turns over time can be used as a measure of performance.
4) Motivation influences quality and productivity, but not the work environment.
5) The quality function deployment matrices are often referred to as the "house of
quality" because, when completed, they "house" all of the customer's quality
requirements.
6) The purpose of the forecast should be established first so that the level of detail,
amount of resources, and accuracy level can be understood.
7) One of the major reasons for a company to adopt third-party logistics is to
concentrate on one's core business.
8) An example of an operational operations management decision is inventory level
management.
9) A systems approach emphasizes interrelationships among subsystems, but its main
theme is that the whole is greater than the sum of its individual parts.
10) Consider the following work breakdown structure:
What is the estimated expected (mean) time for activity Y?
A.30 days
B.29 days
C.38 days
D.26 days
E.35 days
11) A Virginia county is considering whether to pay $50,000 per year to lease a prisoner
transfer facility in a prime location near Washington, D.C. They estimate it will cost
$50 per prisoner to process the paperwork at this new location. The county is paid a $75
commission for each new prisoner they process. How many prisoners would they have
to process annually to break even at this new location?
A.5,000
B.8,000
C.2,000
D.4,000
E.6,000
12) Suppose the first unit required 800 hours and the second unit required only 680.
Which of the following times for the fourth unit would be consistent with a true
learning curve scenario?
A.492
B.587
C.578
D.603
E.583
13) The production planner for a private label soft drink maker is planning the
production of two soft drinks: root beer (R) and sassafras soda (S). Two resources are
constrained: production time (T), of which she has at most 12 hours per day; and
carbonated water (W), of which she can get at most 1,500 gallons per day. A case of
root beer requires 2 minutes of time and 5 gallons of water to produce, while a case of
sassafras soda requires 3 minutes of time and 5 gallons of water. Profits for the root
beer are $6.00 per case, and profits for the sassafras soda are $4.00 per case. For the
production combination of 180 root beer and 0 sassafras soda, which resource is slack
(not fully used)?
A.production time (only)
B.carbonated water (only)
C.both production time and carbonated water
D.neither production time nor carbonated water
E.cannot be determined exactly
14) A master production schedule quantity of 300 units will arrive in week 6. Weekly
demand over weeks 3 through 10 is forecasted at 50 units. At present, orders have been
booked in various quantities in weeks 1, 2, 3, and 4. What is available to promise for
week 6?
A.50
B.6
C.300
D.100
E.cannot be determined without projected on-hand information
15) Breakdown maintenance is _____________; preventive maintenance is _________.
A.reactive; proactive
B.proactive; reactive
C.expensive; inexpensive
D.inexpensive; expensive
E.easy; hard
16) Lead time is exactly 20 days long. Daily demand is normally distributed with a
mean of 10 gallons per day and a standard deviation of 2 gallons. What is the standard
deviation of demand during lead time?
A.20 times 2
B.20 times 10
C.2 times the square root of 20
D.2 times the square root of 10
E.400 times the square root of 10
17) Time-based approaches of business organizations focus on reducing the time to
accomplish certain necessary activities. Time reductions seldom apply to:
A.product/service design time.
B.processing time.
C.delivery time.
D.response time for complaints.
E.internal audits.
18) Which of the following is an example of a postponement tactic?
A.mass customization
B.standardization
C.process mapping
D.delayed differentiation
E.service blueprinting
19) The production planner for a private label soft drink maker is planning the
production of two soft drinks: root beer (R) and sassafras soda (S). Two resources are
constrained: production time (T), of which she has at most 12 hours per day; and
carbonated water (W), of which she can get at most 1,500 gallons per day. A case of
root beer requires 2 minutes of time and 5 gallons of water to produce, while a case of
sassafras soda requires 3 minutes of time and 5 gallons of water. Profits for the root
beer are $6.00 per case, and profits for the sassafras soda are $4.00 per case. What is the
objective function?
A.$4R + $6S = Z
B.$2R + $3S = Z
C.$6R + $4S = Z
D.$3R + $2S = Z
E.$5R + $5S = Z
20) The construction manager for Acme Construction, Inc., must decide whether to
build single-family homes, apartments, or condominiums. He estimates annual profits
(in $000) will vary with the population trend as follows:
If he uses the Laplace criterion, which kind of dwellings will he decide to build?
A.single family
B.apartments
C.condos
D.either single family or apartments
E.either apartments or condos
21) Ideally, preventive maintenance will be performed:
A.after a planned inspection.
B.after the passage of a specified period of time.
C.after a predetermined number of operating hours.
D.just prior to the start of the workday.
E.just prior to a breakdown or failure.
22) Consider the following work breakdown structure:
In crashing this project to 18 weeks, which activities (in order of selection) will be
reduced?
23) Suppose a batch is of unacceptable quality. There is a 10 percent chance that it will
be accepted. Thus, ________ is 10 percent.
24) An analyst has observed 28 work cycles, for which the average cycle time was five
minutes and the performance rating was 1.05. Allowances for the department are 25
percent of job time. What standard time is appropriate for this job?
25) Consider the following information:
What are total overtime costs?
26) There are three jobs to be done and three resources with which to do them. Each
resource will cost a specific amount to do each job, as shown in the following table:
Can an optimum assignment be made after the first modification of the row and column
reductions table?
27) Construct the appropriate two-sigma control chart for the sample observations listed
below.
28) Prepare a master schedule based on the following information:
Currently there are 145 units in inventory. Policy calls for a fixed order quantity of 250
units.
29) The third unit of a 10-unit job required 7.3 hours to complete. The fourth unit has
been worked on for two hours, but it is not yet finished. Estimate the remaining amount
of time that will be needed to finish this 10-unit job if the work has an 80 percent
learning curve.
30) The Four Star Publishing Company uses 60 reams of paper each hour at one of its
high-speed printing stations. The cycle time for a standard container, which holds 15
reams of paper, averages 40 minutes. If management has decided to use three
containers, what efficiency factor was applied?
