1) Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which
must be ready for delivery at the start of week 6. An MRP planner has prepared the
following table showing product structure, lead times (orders are lot-for-lot), and
quantities on hand:
Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate
eggs; additionally one bottle of Alka-Seltzer is included for those who overindulge.
When should an order for carved chocolate eggs be released?
A.at the start of week 2
B.at the start of week 3
C.at the start of week 4
D.at the start of week 5
E.at the start of week 6
2) Budgeting, analysis of investment proposals, and provision of funds are activities
associated with the _______ function.
A.operation
B.marketing
C.purchasing
D.finance
E.internal audit
3) The operations manager of a body and paint shop has five cars to schedule for repair.
He would like to minimize the throughput time to complete all work on these cars. Each
car requires body work prior to painting. The estimates of the times required to do the
body paint work on each are as follows:
What is the optimum sequence (first car to last)?
A.A; B; C; D; E
B.E; D; C; B; A
C.E; B; D; C; A
D.E; D; B; C; A
E.E; B; D; A; C
4) Consider the following work breakdown structure:
What is the estimated standard deviation in the time for activity D?
A.0 days
B.2 days
C.3 days
D.4 days
E.12 days
5) One reason for using the Delphi method in forecasting is to:
A.avoid premature consensus (bandwagon effect).
B.achieve a high degree of accuracy.
C.maintain accountability and responsibility.
D.be able to replicate results.
E.prevent hurt feelings.
6) The manager of the Quick Stop Corner Convenience Store (which never closes) sells
four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs
$.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three
days from the time they are placed. Daily holding costs are equal to 5 percent of the
cost of the beer.
If he were to order 16 cases of Stein beer at a time, what would be the average
inventory level?
A.4 cases
B.12 cases
C.8 cases
D.20 cases
E.16 cases
7) A company needs to rebalance a product layout for producing new plastic license
plates. They plan to use the assembly line six hours in order to meet projected demand
of 2,160 license plates each day. The following table describes the tasks involved in the
production of this product:
For output to equal projected demand, what should be the actual cycle time for this
assembly line?
A.0 seconds
B.3 seconds
C.9 seconds
D.10 seconds
E.28 seconds
8) Consider the following decision scenario:
*PV for profits ($000)
The maximax strategy would be:
A.A
B.B
C.C
D.D
E.E
9) A popular tool for planning and scheduling simple projects, and for initial planning
on more complex projects, is the:
A.activity-on-arrows network.
B.activity-on-nodes network.
C.Gantt chart.
D.critical path method.
E.program evaluation and review technique.
10) The Operations Manager for Shadyside Savings & Loan orders cash from her home
office for her very popular “BIG BUCKS” automated teller machine, which only
dispenses $100 bills. She estimates that this machine dispenses an average of 12,500
bills per month, and that carrying a bill in inventory costs 10 percent of its value
annually. She knows that each order for these bills costs $300 for clerical and armored
car delivery costs, and that order lead time is six days. Assuming a 30-day month, if she
were to order 6,000 bills at a time, what would be the length of an order cycle?
A..48 days
B.2.08 days
C.6 days
D.8.4 days
E.14.4 days