1) Regardless of superior quality, consumers will not pay premium prices.
2) Cost of inspectors, testing, test equipment, and labs are examples of appraisal costs.
3) Control limits used on process control charts are specifications established by design
or customers.
4) Modular design increases the costs of purchasing and controlling inventory
compared to nonmodular.
5) A disadvantage of activity-on-node diagrams is the occasional need for dummy
activities.
6) Managing supply chain visibility involves making sure that potential supply chain
partners are aware of your organization’s needs.
7) Cycle counting can be used in motorcycle inventory control.
8) A benefit of small lot sizes in lean systems is that each product is produced less
frequently.
9) Learning curves generally apply to situations in which there is a high degree of
human involvement and tasks are fairly repetitive.
10) A level capacity strategy is also known as a chase demand strategy.
11) The master production schedule states which end items are to be produced, in
addition to when and how many.
12) Suppose that the average time before breakdown is normally distributed with a
mean of 2.5 weeks and a standard deviation of .4 weeks. If breakdowns cost an average
of $1,200 and preventive maintenance costs $800, what is the optimal maintenance
interval?
A.Every .67 weeks
B.Every .33 weeks
C.Every 2.67 weeks
D.Every 3.25 weeks
E.Every 3.12 weeks
13) In order to increase the responsiveness of a forecast made using the moving average
technique, the number of data points in the average should be:
A.decreased.
B.increased.
C.multiplied by a larger alpha.
D.multiplied by a smaller alpha.
E.eliminated if the MAD is greater than the MSE.
14) Which of the following is not true about the use of dummy activities in project
networking?
A.They preserve the separate identities of activities.
B.They clarify precedence relationships among activities.
C.They have an activity time equal to zero.
D.They have an activity time variance equal to zero.
E.They are used in activities-on-nodes (AON) network diagrams.
15) Which of the following is not a type of operations?
A.goods production
B.storage/transportation
C.entertainment
D.communication
E.advertising
16) A firm has 43 units of a certain product on hand. Forecasts for the first two planning
periods are 20 units each. A production quantity of 80 units is planned to be available in
period 3. Customer orders are 22 for period 1 and 17 for period 2. What is the projected
on-hand inventory at the end of period 2?
A.21
B.1
C.12
D.20
E.impossible to say without more information
17) When an organization comes to the realization that there are quality problems in
products that are already in service, ethical approaches include:
(I) divulging the information to the public at large.
(II) recalling, if possible, affected products.
(III) handling complaints on an individual rather than a systemic basis.
A.I and III
B.I and II
C.II and III
D.I, II, and III
E.Neither I, II, nor III
18) Standard times derived from a firm’s historical data are known as:
A.predetermined times.
B.MTM.
C.work sampling times.
D.judgmental times.
E.standard elemental times.
19) In a multichannel system with multiple waiting lines, customers shifting among the
waiting lines is an example of:
A.departing.
B.utilizing.
C.abandoning.
D.balking.
E.jockeying.
20) Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni
each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and
carrying costs are 4 cents per pound per day. Lead time for each order is three days, and
the pepperoni itself costs $3.00 per pound. What is the economic order quantity for
pepperoni?
A.20 pounds
B.40 pounds
C.60 pounds
D.80 pounds
E.100 pounds
21) Forecasts based on an average tend to exhibit less variability than the original data.
22) Which one of the following is not a factor of successful product and service design?
A.Be aware of what the competitors are doing.
B.Be aware of what customers want.
C.Know what government regulations are.
D.Use computerized design techniques.
E.Know what new technologies are available.
23) Which term is most closely associated with cellular manufacturing?
A.part families
B.assembly line
C.robotics
D.CAD
E.CAM
24) Which of the following corresponds to the predictor variable in simple linear
regression?
A.regression coefficient
B.dependent variable
C.independent variable
D.predicted variable
E.demand coefficient
25) One option for altering the pattern of demand is:
A.back orders.
B.overtime.
C.part-time workers.
D.inventories.
E.subcontracting.
26) A work sampling study of kitchen help is to be designed. The study will be
conducted over a nine-day period. The kitchen help works a seven-hour shift.
Determine the day, hour, and minute of five observations using the random digits listed
below.
Arrange observations chronologically.
27) Given the following data for a make-or-buy decision:
For what range of output would you prefer to buy?
28) Given the following data for a make-or-buy decision:
For what quantity would you be indifferent between buying and making?
29) Eight instances of a worker doing a task were observed as follows:
If the person observed worked at a pace that is 20 percent faster than average, what
should be the normal time for this task?
30) Consider these data regarding the multiple-server, priority service queuing model:
Service Rate: 2 per hour (Poisson)
Number of Servers: 5
What is the average time in the system for a high-priority item?
31) Develop a linear trend equation for the data on bread deliveries shown below.
Forecast deliveries for period 11 through 14.
32) Consider the following information:
What profit (loss) would there be for a quantity of 10,000?
33) Data on the last three years of demand are available as follows:
What is the linear regression trend line for these data (t = 0 for spring, three years ago)?
34) Given the following work sampling data, based upon 100 random observations of a
particular worker:
What is the estimated proportion of time this worker spends on activities B and C?
35) A department has five semiautomatic pieces of equipment which operate for an
average of 79 minutes before they must be reloaded. The reloading operation takes an
average of 21 minutes per machine. Assume exponential distributions.
What is the minimum number of servers needed to keep the average downtime per
cycle to less than 25 minutes?