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1) Service involves a much higher degree of customer contact than manufacturing.
2) The break-even quantity can be determined by dividing the fixed costs by the
difference between the revenue per unit and the variable cost per unit.
3) Loading is the determination of which work centers should perform which jobs.
4) In the quantity discount model, if holding costs are given as a percentage of unit
price, a graph of the total cost curves will have the same EOQ for each curve.
5) Predetermined time standards involve the use of published data regarding how long
various activities are expected to take.
6) The customer is the focal point and customer satisfaction is the driving force in
quality management.
7) Outsourcing tends to improve quality but at the cost of lowered productivity.
8) A real advantage of the lean philosophy is the reduction of coordination effort
required.
9) The queuing models discussed in the text apply only to steady-state conditions.
Steady state exists only when customers arrive at a steady rate; that is, without any
variability.
10) A business that is rated highly by its customers for service quality will tend to be
more profitable than a business that is rated poorly.
11) Serviceability, conformance, and reliability are dimensions of product quality.
12) Annual ordering cost is inversely related to order size.
13) An advantage of a U-shaped production line is that it facilitates teamwork and
flexibility in work assignments.
14) Consider the following work breakdown structure:
What is the estimated slack time for activity W?
A.0 days
B.25 days
C.35 days
D.45 days
E.85 days
15) What is it about repetitive processes that make them appropriate for products in the
maturity phase of their life cycle?
A.efficiency
B.general-purpose technology
C.possible variety
D.low risk
E.flexibility
16) Which of the following is not an example of a high-volume system?
A.aircraft manufacturing
B.magazine printing
C.petroleum refining
D.waste treatment
E.commercial donut baking
17) Which of the following is least likely to result in product innovations that have
near-term commercial application?
A.process blueprinting
B.development
C.applied research
D.quality function deployment
E.basic research
18) Which of the following possible values of alpha would cause exponential
smoothing to respond the most quickly to forecast errors?
A.0
B..01
C..05
D..10
E..15
19) The materials manager for a billiard ball maker must periodically place orders for
resin, one of the raw materials used in producing billiard balls. She knows that
manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per
day to carry a kilogram of resin in inventory. She also knows that the order costs for
resin are $100 per order, and that the lead time for delivery is four days. If order size
was 1,000 kilograms of resin, what would be the length of an order cycle?
A..05 days
B.4 days
C.16 days
D.20 days
E.50 days
20) Given the following information, what would utilization be?
Effective capacity = 20 units per day
Design capacity = 60 units per day
Actual output = 15 units per day
A.1/4
B.1/3
C.1/2
D.3/4
E.none of these
21) A methods and measurements analyst for Digital Devices needs to develop a time
standard for the task of assembling a computer mouse. In a preliminary study, she
observed one of her workers perform this task six times with the following results:
What is the observed time for this task?
A.34 seconds
B.40 seconds
C.46 seconds
D.48 seconds
E.240 seconds
22) A quality analyst wants to construct a sample mean chart for controlling a
packaging process. He knows from past experience that whenever this process is under
control, package weight is normally distributed with a mean of 20 ounces and a
standard deviation of two ounces. Each day last week, he randomly selected four
packages and weighed each:
If he uses upper and lower control limits of 22 and 18 ounces, on what day(s), if any,
does this process appear to be out of control?
A.Monday
B.Tuesday
C.Monday and Tuesday
D.Monday, Tuesday, and Thursday
E.none
23) Given the same demand, setup/ordering costs, and carrying costs, the EPQ
calculated using incremental replenishment will be ____________ if instantaneous
replenishment was assumed.
A.greater than the EOQ
B.equal to the EOQ
C.smaller than the EOQ
D.greater than or equal to the EOQ
E.smaller than or equal to the EOQ
