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1) If an 80 percent curve is appropriate for a task and the first unit takes 10 hours, the
average time for the first two units would be eight hours.
2) Limited WIP lowers inventory carrying costs but reduces flexibility.
3) Acceptance sampling is a form of inspection applied to items during an ongoing
process.
4) Self-directed teams are allowed to make changes in the work processes under their
control.
5) The average inventory level and the number of orders per year are inversely related:
As one increases, the other decreases.
6) The costs associated with risk events tend to be lower near the beginning of a project
and higher near the end of the project.
7) A change in the value of an objective function coefficient does not change the
optimal solution.
8) The dimensions of product and service quality are too abstract to be used as
parameters for product or service design.
9) Time-based systems compensate employees according to the time they have worked
and the amount of output they produce.
10) The Taguchi loss function suggests that the capability ratio can be improved by
extending the spread between LCL and UCL.
11) Juran describes quality management as a trilogy that consists of quality planning,
quality control, and quality improvement.
12) Giving a worker a larger portion of the total task is known as job:
A.expansion.
B.enrichment.
C.enlargement.
D.rotation.
E.elimination.
13) The owner of Tastee Cookies needs to decide whether to lease a small, medium, or
large new retail outlet. She estimates that monthly profits will vary with demand for her
cookies as follows:
For what range of probability that demand will be high, will she decide to lease the
small facility?
A.0-.25
B.0-.33
C..25-.5
D..33-1
E..5-1
14) For firms competing in worldwide markets, conducting __________________ is
more complex, since what works in one country or region might not work in another.
A.productivity analysis
B.environmental analysis
C.strategy implementation
D.sustainability analysis
E.growth forecasting
15) In which of these settings would one be least likely to encounter first-come service?
A.a fast-food restaurant
B.a doctor's office
C.a hotel check-in operation
D.an emergency room
E.a check-out line
16) 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:
Using .95 control limits (5 percent risk of Type I error), which instructor(s), if any,
should he conclude is (are) out of control?
A.none
B.Prof. B
C.Prof. D
D.both Prof. B and Prof. D
E.all
17) If average demand for an item is 20 units per day, safety stock is 50 units, and lead
time is four days, the ROP will be:
A.20
B.50
C.70
D.80
E.130
18) Which of the following is not an element of the project management triangle?
A.cost
B.schedule
C.resources
D.quality
E.performance objectives
19) Students at a major university must go through several registration steps. Officials
have observed that it is typically the case that the waiting line at the fee-payment station
is the longest. This would seem to suggest that the fee-payment station is the
___________ in the student registration process.
A.capacity cushion
B.first station
C.bottleneck
D.economy of scale
E.diseconomy of scale
20) Which phrase most closely describes the Delphi technique?
A.associative forecast
B.consumer survey
C.series of questionnaires
D.developed in India
E.historical data
21) All of the following are possible reasons for using the fixed-order-interval model
except:
A.supplier policy encourages use.
B.grouping orders can save in shipping costs.
C.the required safety stock is lower than with an EOQ/ROP model.
D.it is suited to periodic checks of inventory levels rather than continuous monitoring.
E.continuous monitoring is not practical.
22) The owner of Kat Motel wants to develop a time standard for the task of cleaning a
cat cage. In a preliminary study, she observed one of her workers perform this task six
times, with the following results:
What is the normal time for this task if the employee worked at a 50 percent faster pace
than average?
A.45 seconds
B.60 seconds
C.90 seconds
D.135 seconds
E.180 seconds
23) Modern firms increasingly rely on other firms to supply goods and services instead
of doing these tasks themselves. This increased level of _____________ is leading to
increased emphasis on ____________ management.
A.outsourcing; supply chain
B.offshoring; lean
C.downsizing; total quality
D.optimizing; inventory
E.internationalization; intercultural
24) The value of standardizing some or all of a service is demonstrated by the shorter
wait times observed in models with:
A.constant demand rates.
B.finite queues.
C.infinite sources.
D.finite sources.
E.constant service times.
25) Capacity in excess of expected demand that is intended to offset uncertainty is a:
A.margin protect.
B.line balance.
C.capacity cushion.
D.timing bubble.
26) The operations manager for the Blue Moon Brewing Co. produces two beers: Lite
(L) and Dark (D). Two of his resources are constrained: production time, which is
limited to 8 hours (480 minutes) per day; and malt extract (one of his ingredients), of
which he can get only 675 gallons each day. To produce a keg of Lite beer requires 2
minutes of time and 5 gallons of malt extract, while each keg of Dark beer needs 4
minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg,
and profits for Dark beer are $2.00 per keg.
What are optimal daily profits?
A.$0
B.$240
C.$420
D.$405
E.$505
27) Data on demand over the last few years are available as follows:
What is this year's forecast using exponential smoothing with alpha = .25, if last year's
smoothed forecast was 45?
28) Use either the transportation method or linear programming to develop an optimum
aggregate plan, given the following data:
29) The operations manager for the Blue Moon Brewing Co. produces two beers: Lite
(L) and Dark (D). Two of his resources are constrained: production time, which is
limited to 8 hours (480 minutes) per day; and malt extract (one of his ingredients), of
which he can get only 675 gallons each day. To produce a keg of Lite beer requires 2
minutes of time and 5 gallons of malt extract, while each keg of Dark beer needs 4
minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg,
and profits for Dark beer are $2.00 per keg. What is the time constraint?
30) Consider the following information:
What is the break-even quantity (produced and sold)?
31)
32) Given the following process layout data for locating four departments (A, B, C, and
D) in four areas (1, 2, 3, and 4):
What is the distance from area 3 to area 1?
33) The injection molding department of a company uses 40 pounds of a powder a day.
Inventory is reordered when the amount on hand is 240 pounds. Lead time averages
five days. It is normally distributed and has a standard deviation of two days. What is
the probability of a stockout during lead time?
34) Suppose we have a lot of several thousand units of a finished good. If this lot were
5 percent defective, what type error would be possible? For an acceptance sampling
plan with n = 20 and c = 2, what would be the risk of this error?
35) A firm stocks a seasonal item that it buys for $22/unit and sells for $29/unit. During
the season, daily demand can be described using a Poisson distribution with a mean of
2.4. Because of the nature of the item, units remaining at the close of business each day
must be removed at a cost of $2 each. What is the optimum stocking level, and what is
the effective service level?
