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1) Many lower-level jobs are monotonous and boring.
2) Utilization is defined as the ratio of effective capacity to design capacity.
3) An objective function represents a family of parallel lines.
4) Quality function deployment (QFD) is based on a set of standards which relate
customer requirements to company capabilities.
5) Most people working for a business organization are somehow involved with the
supply chain of that business.
6) Productivity is defined as the ratio of output to input.
7) Linear programming models yield the optimal solution.
8) If optimal sequencing through three work centers is desired, Johnson's rule II is used
rather than Johnson's rule.
9) Reliability is the probability that a product or system will function when activated.
10) A methods and measurement analyst wants to develop a time standard for a certain
task. In a preliminary study, he observed one worker perform the task six times with an
average observed time of 20 seconds and a standard deviation of two seconds.
How many observations should be made if he wants to be 95.44 percent confident that
the maximum error in the observed time is one second?
A.3
B.4
C.13.3
D.16
E.25
11) Uncommitted inventory is called:
A.available-to-promise inventory.
B.free inventory.
C.safety stock.
D.lead time inventory.
E.obsolete inventory.
12) To which of the following challenges are learning curves important considerations?
A.capacity planning
B.product designs
C.process layouts
D.output-based compensation
E.demand forecasting
13) 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 feels that there is a 60 percent chance that the new cable network will be
successful, what is her expected cost (per thousand "hits") for the strategy she will
select?
A.$3.40
B.$4.60
C.$8.00
D.$9.00
E.$10.00
14) A company is preparing a bid on a government contract for 40 units of a certain
product. The operations manager estimates the assembly time required for the first two
units to be 10.4 hours and 8.8 hours.
Approximately how long will it take to produce the 25th through 30th units?
A.23 hours
B.49 hours
C.29 hours
D.38 hours
E.It is impossible to say without additional information.
15) When determining the timing and degree of capacity change, one can use the
approach of:
A.lead time flexibility strategy.
B.expand early strategy.
C.wait-and-see strategy.
D.backordering.
E.delayed differentiation.
16) Which of the following is true?
A.Corporate strategy is shaped by functional strategies.
B.Corporate mission is shaped by corporate strategy.
C.Functional strategies are shaped by corporate strategy.
D.External conditions are shaped by corporate mission.
E.Corporate mission is shaped by functional strategies.
17) A quality analyst wants to construct a control chart for determining whether four
machines, all producing the same product, are under control with regard to a particular
quality attribute. Accordingly, she inspected 1,000 units of output from each machine in
random samples, with the following results:
What is the estimate of the standard deviation of the sampling distribution of sample
proportions for whenever this process is under control?
A..016
B..00016
C..04
D..0044
E..00002
18) The chair of the operations management department at Quality University wants to
construct a p-chart for determining whether the four faculty teaching the basic P/OM
course are under control with regard to the number of students who fail the course.
Accordingly, he sampled 100 final grades from last year for each instructor, with the
following results:
What are the .95 (5 percent risk of Type I error) upper and lower control limits for the
p-chart?
A..95 and .05
B..13 and .07
C..1588 and .0412
D..16 and .04
E..1774 and .0226
19) A novice linear programmer is dealing with a three-decision-variable problem. To
compare the attractiveness of various feasible decision-variable combinations, values of
the objective function at corners are calculated. This is an example of:
A.empiritation.
B.explicitation.
C.evaluation.
D.enumeration.
E.elicitation.
20) Which one of these is not used in decision making under risk?
A.EVPI
B.EMV
C.decision trees
D.minimax regret
E.All are used for risk situations.
21) Scheduling in service systems often takes the form of:
(I) appointment systems.
(II) reservation systems.
(III) makespan systems.
A.I only
B.II only
C.I and II only
D.III only
E.I, II, and III
22) Gradual, long-term movement in time series data is called:
A.seasonal variation.
B.cycles.
C.irregular variation.
D.trend.
E.random variation.
23) When buying component parts, risk does not include:
A.loss of control.
B.vendor viability.
C.interest rate fluctuations.
D.need to disclose proprietary information.
E.product liability.
24) Suppose a four-period weighted average is being used to forecast demand. Weights
for the periods are as follows: wt-4 = 0.1, wt-3 = 0.2, wt-2 = 0.3 and wt-1 = 0.4.
Demand observed in the previous four periods was as follows: At-4 = 380, At-3 = 410,
At-2 = 390, At-1 = 400. What will be the demand forecast for period t?
A.402
B.397
C.399
D.393
E.403
