Learning curves can only be applied to labor.
Labor standards based on historical experience are relatively inexpensive to obtain.
Scheduling optimization systems used in retail stores typically track customer traffic in
4-hour time increments.
Substantial research has proved that the only successful method of dealing with
bottlenecks is to increase the bottleneck’s capacity.
One environmentally friendly approach to product design is to use lighter components.
The two extremes of employment stability policy are “follow demand exactly” and
“keep demand constant.”
Which of the following is true concerning CAD?
A) Accurate information flows to other departments.
B) Most product costs are determined at the design stage.
C) Design options are easier to review before final commitments are made.
D) Virtually all products have their development cycle shortened.
E) All of the above are true.
Operations management is applicable
A) mostly to the service sector
B) to services exclusively
C) mostly to the manufacturing sector
D) to all firms, whether manufacturing or service
E) to the manufacturing sector exclusively
A route sheet provides a(n)
A) exploded view of the product
B) instruction to make a given quantity of a particular item
C) schematic showing how the product is assembled
D) sequence of operations necessary to produce the component
E) set of detailed instructions about how to perform a task
All of the following costs are likely to decrease as a result of better quality except
A) customer dissatisfaction costs
B) inspection costs
C) scrap costs
D) warranty and service costs
E) maintenance costs
Which of the following are limitations of rules-based dispatching systems?
A) Rules need to be revised to adjust to changes in orders, product mix, and so forth.
B) Rules may not recognize idle resources.
C) Rules may not recognize bottleneck resources
D) Rules may not be able to prioritize two jobs with identical due dates.
E) All of the above are limitations.
John’s House of Pancakes uses a weighted moving average method to forecast pancake
sales. It assigns a weight of 5 to the previous month’s demand, 3 to demand two months
ago, and 1 to demand three months ago. If sales amounted to 1000 pancakes in May,
2200 pancakes in June, and 3000 pancakes in July, what should be the forecast for
August?
A) 2400
B) 2511
C) 2067
D) 3767
E) 1622
Which of the following aggregate planning methods does not work if hiring and layoffs
are possible?
A) the linear decision rule
B) simulation
C) the management coefficients model
D) the transportation method
E) graphical methods
A queuing model which follows the M/M/1 assumptions has » = 2 and ¼ = 3. The
average waiting time in the system is
A) 2/3
B) 1
C) 1.5
D) 2
E) 6
A defense contractor has just started producing turbines for a new government contract.
The first turbine took 7000 hours to produce. If the learning curve is 90%, how long
will it take to produce the 10th turbine? (Use at least three decimals in the exponent if
you use the logarithmic approach.)
A) less than 4800 hours
B) from 4800 to 4900 hours
C) from 4900 to 5000 hours
D) from 5000 to 5100 hours
E) over 5100 hours
In linear programming, a statement such as “maximize contribution” becomes a(n)
A) constraint
B) slack variable
C) objective function
D) violation of linearity
E) decision variable
Which of the following is least likely to result in a strategy change?
A) change in the company’s financial situation
B) a company’s adoption of new technology
C) change in the product life cycle
D) change in the competitive environment
E) change in job scheduling techniques
Which of the statements below best describes office layout?
A) groups workers, their equipment, and spaces/offices to provide for movement of
information
B) addresses the layout requirements of large, bulky projects such as ships and
buildings
C) seeks the best personnel and machine utilization in repetitive or continuous
production
D) allocates shelf space and responds to customer behavior
E) deals with low-volume, high-variety production
How is MTBF related to FR(N)?
A) MTBF is measured in hours, while FR(N) is measured in years.
B) MTBF is normally distributed, with FR(%) as its mean and FR(N) as its standard
deviation.
C) MTBF is the reciprocal of FR(N).
D) Both MTBF and FR(N) increase when breakdown maintenance is replaced by
preventive maintenance.
E) MTBF and FR(N) are unrelated concepts.
The “Father of Scientific Management” is
A) Henry Ford
B) Frederick W. Taylor
C) W. Edwards Deming
D) Frank Gilbreth
E) just a figure of speech, not a reference to a person
Instead of comparing the salaries of Detroit autoworkers to foreign autoworkers to
determine if Union labor prices are the cause of Detroit’s financial woes, which of the
following should be used?
A) labor content per vehicle
B) labor productivity
C) total production
D) A or B
E) None of the above, salary is the best comparison.
Describe some of the challenges faced in the construction of the new 11-story building
at Arnold Palmer Hospital in Orlando, Florida.
Gradual movement in time-series data over time is called
A) seasonal variation
B) a cycle
C) a trend
D) exponential variation
E) random variation
The practice of choosing an external provider in the home country or in a nearby
country is referred to as
A) homeshoring
B) homesourcing
C) nearshoring
D) nearsourcing
E) backsourcing
Normally, the transportation model is used to solve problems involving several physical
sources of product and several physical uses of the product, as in factories and
warehouses. How is it possible to use the transportation model where the “routes” are
from one time period to another? Describe how this provides aggregate planners with a
usable mathematical model.
The __________ takes into account such costs as deteriorated customer relations and
lost sales.
Identify the disadvantages of the Gantt load chart.
Starbucks stopped requiring signatures on credit-card purchases under $25 in an attempt
to reduce __________ .
You have seen several methods for lot sizing in MRP. Why is lot sizing important in
MRP? Can too much concern be given lot sizing? Answer in a well-developed
paragraph.
Identify the four major quantitative methods for solving location problems.
The larger a transportation problem (that is, as the problem has more rows and more
columns), the smaller the fraction of all possible routes that will be filled in a solved
problem. Explain.
What can cause a learning curve to vary from a smooth downward slope?
A working MRP system allows a firm to react to even minor changes in production
requirements. Discuss both the advantages and disadvantages of having such ability.