1) The naive forecast can serve as a quick and easy standard of comparison against
which to judge the cost and accuracy of other techniques.
2) The sampling distribution can be assumed to be approximately normal even when the
underlying process distribution is not normally distributed.
3) Work sampling provides both quick and accurate estimates of activity times.
4) Productivity tends to be only a very minor factor in an organization’s ability to
compete.
5) Decision trees, with their predetermined analysis of a situation, are really not useful
in making health care decisions since every person is unique.
6) The number of defective parts in a sample is an example of variable data because it
will “vary” from one sample to another.
7) The importance of purchasing relates only to the cost of parts and materials
purchased, which is often 60 percent or more of the cost of finished goods.
8) All infinite-source queuing models require the system utilization to be less than 1.0.
9) Tolerances represent the control limits we use on the charts.
10) The goal of aggregate planning is to achieve a production plan that attempts to
balance the organization’s resources and meet expected demand.
11) Locational cost-profit-volume analysis assumes:
(I) nonlinear variable costs.
(II) fixed costs that are constant over the range of possible output.
(III accurate estimates regarding the required level of output.
(IV) multiple products.
A.I, III, and IV only
B.II and III only
C.I, II, and III only
D.II, III, and IV only
E.I, II, III, and IV
12) The structural approach for integrating customer requirements into every aspect of
product development is known as:
A.total quality management.
B.customer satisfaction.
C.quality function deployment.
D.customer integration.
E.a product development team.
13) Which of the following would tend to reduce effective capacity?
A.suppliers that provide more reliable delivery performance
B.reduced changeover times
C.more employee cross-training
D.improved production quality
E.greater variety in the product line
14) The dean of a school of business is forecasting total student enrollment for this
year’s summer session classes based on the following historical data:
What is the annual rate of change (slope) of the least squares trend line for these data?
A.0
B.200
C.400
D.180
E.360
15) Simple exponential smoothing is being used to forecast demand. The previous
forecast of 66 turned out to be four units less than actual demand. The next forecast is
66.6, implying a smoothing constant, alpha, equal to:
A..01.
B..10.
C..15.
D..20.
E..60.
16) The ultimate objective in a lean system is:
A.low to moderate levels of inventory.
B.high quality, zero defects.
C.minimal waste (less than 6 percent).
D.balanced and rapid flow.
E.all of these.
17) An automobile manufacturer that has eight assembly plants and thousands of
dealers throughout the United States can find the optimal distribution plan by using:
(I) a linear programming model.
(II) the transportation model.
(III) weighted factor ratings.
(IV) global information systems.
A.I only
B.II only
C.II or III
D.I or II
E.I or IV
18) When is the average outgoing quality level (AOQL) at its peak?
A.when the incoming fraction defective is at a minimum
B.when the incoming fraction defective is at a maximum
C.when the outgoing fraction defective is at a minimum
D.when the outgoing fraction defective is constant
E.when the outgoing fraction defective begins to increase
19) In the lean philosophy, the ideal lot size is:
A.the economic order quantity.
B.the economic run size.
C.one unit.
D.the capacity of the standard container.
E.N = (DT(1 + X))/C.
20) The key to successfully competing is understanding what customers want and then
__________ satisfy those wants.
A.training production workers to
B.finding suppliers who can
C.finding the best way to
D.designing products and services that
E.hiring enough workers to
21) An example of automated services is:
A.online banking.
B.build your own pizza.
C.haircuts.
D.massage parlors.
E.financial advising.
22) Unit times for a job exhibit a learning effect. If the second unit took 30 hours, and
the fourth unit took 21 hours, roughly how many hours would you estimate the third
unit took?
A.29
B.27
C.25
D.24
E.21
23) A company needs to locate three departments (X, Y, and Z) in the three areas (I, II,
and III) of a new facility. They want to minimize interdepartmental transportation costs,
which are expected to be $.50 per load per meter moved. An analyst has prepared the
following distances and flow matrices:
How many least costly process layouts are there?
A.1
B.2
C.3
D.4
E.5