1) In a lean environment, anything not essential to the product or process is viewed as
waste.
2) The assignment of work to specific machines and people are examples of aggregate
planning.
3) The total cost of crashing any one activity should never exceed 20 percent of the total
cost of the original project.
4) The amount of inspection needed is governed by the costs of inspection and the
expected costs of passing defective items.
5) The best forecast is not necessarily the most accurate.
6) The quickest, most effective way to improve an employee’s job satisfaction is to
increase his or her compensation.
7) EOQ inventory models are basically concerned with the timing of orders.
8) Global teams provide diversity while eliminating conflicts and miscommunication.
9) A manufacturing cell allows the production of a wide range of very different
products.
10) The EOQ should be regarded as an approximate quantity rather than an exact
quantity. Thus, rounding the calculated value is acceptable.
11) As long as we match a competitor on quality and price we will gain market share.
12) A disadvantage of a product layout can be high in-process inventory costs.
13) The calculation of safety stock requires knowledge of demand and lead time
variability.
14) Given the following historical data and weights of .5, .3, and .2, what is the
three-period moving average forecast for period 5?
A.144.20
B.144.80
C.144.67
D.143.00
E.144.00
15) One form of long-term team that is increasingly being used, especially in lean
production settings, is:
A.quality circle.
B.product design.
C.self-directed.
D.self-improvement.
E.mandatory.
16) The production planner for Fine Coffees, Inc., produces two coffee blends:
American (A) and British (B). Two of his resources are constrained: Columbia beans, of
which he can get at most 300 pounds (4,800 ounces) per week; and Dominican beans,
of which he can get at most 200 pounds (3,200 ounces) per week. Each pound of
American blend coffee requires 12 ounces of Colombian beans and 4 ounces of
Dominican beans, while a pound of British blend coffee uses 8 ounces of each type of
bean. Profits for the American blend are $2.00 per pound, and profits for the British
blend are $1.00 per pound. Which of the following is not a feasible production
combination?
A.0 A and 0 B
B.0 A and 400 B
C.200 A and 300 B
D.400 A and 0 B
E.400 A and 400 B
17) In a product layout, the task of deciding how to assign work to specific stations is
referred to as:
A.process balancing.
B.task allocation.
C.line balancing.
D.work allocation.
E.station balancing.
18) Which of the following is the information needed to use the transportation model?
(I) A list of the sources and each one’s capacity
(II) A list of the destinations and each one’s demand
(III) The unit cost of shipping items from each source to each destination
A.I and II only
B.II and III only
C.I and III only
D.III only
E.I, II, and III
19) Based on the cost information given in the following table, which set of
job-machine pairs reflects the minimum-cost solution using the Assignment method?
A.1-B, 2-A, 3-C
B.1-A, 2-B, 3-C
C.1-C, 2-A, 3-B
D.1-B, 2-C, 3-A
E.1-C, 2-B, 3-A
20) Refer to the following data for jobs waiting to be processed at a single work center
(jobs are shown in order of arrival):
What is the average completion time for the earliest due date priority rule schedule?
Average job tardiness? Average number of jobs at the center?
21) There are four resources and four jobs to be done. The time required for each
resource to do each job is as follows:
After the row and column reductions, what is the reduced time for assigning resource 4
to job D?
A.0 hours
B.2 hours
C.3 hours
D.6 hours
E.9 hours
22) Which one of the following is not one of the building blocks that is the foundation
of the lean philosophy?
A.product design
B.process design
C.personnel/organizational elements
D.manufacturing planning and control
E.kanban
23) Examination of the sources of supply for purchased parts or materials in order to
improve performance is called:
A.vendor analysis.
B.value analysis.
C.negotiated purchasing.
D.reverse engineering.
E.disintegration.
24) The advertising manager for Roadside Restaurants, Inc., needs to decide whether to
spend this month’s budget for advertising on print media, television, or a mixture of the
two. She estimates that the cost per thousand “hits” (readers or viewers) will vary
depending upon the success of the new cable television network she plans to use, as
follows:
If she uses the maximax criterion, which advertising strategy will she use?
A.print
B.mixed
C.television
D.either print or mixed
E.either mixed or television
25) A quality analyst wants to construct a control chart for determining whether three
machines, all producing the same product, are under control with regard to a particular
quality variable. Accordingly, he sampled four units of output from each machine, with
the following results:
What are the x-bar chart three-sigma upper and lower control limits?
A.22 and 18
B.23.29 and 16.71
C.23.5 and 16.5
D.23.16 and 16.84
E.24 and 16
26) Which of the following most involves coordinating the activities among all the
elements of the business?
A.pollution control
B.quality management
C.supply chain management
D.competition from foreign manufacturers
E.technological change
27) A manager wants to analyze the learning curve associated with producing one of his
company’s products. Accordingly, he has gathered the following data:
What is the learning curve percentage?
A.40 percent
B.50 percent
C.75 percent
D.80 percent
E.90 percent
28) Given the following information, what would efficiency be?
Effective capacity = 50 units per day
Design capacity = 100 units per day
Actual output = 30 units per day
A.40 percent
B.50 percent
C.60 percent
D.80 percent
E.90 percent
29) In which type of operation are you likely to see, at most, only minor variations in
the product or service being produced using the same process and the same equipment?
A.a project
B.a job shop
C.repetitive production
D.batch processing
E.intermittent production