1) The assignment method is limited to a maximum of two jobs per resource.
2) The single-period model can be very helpful in determining how much to order.
3) The expected monetary value approach is most appropriate when the decision maker
is risk neutral.
4) In general, job-shop systems have a lower unit cost than continuous systems do
because continuous systems use costly specialized equipment.
5) Priority rules are used in low-volume systems to identify an optimal processing
sequence.
6) In purchasing, one’s only ethical obligation is to one’s suppliers.
7) Independent demand tends to be more “lumpy” than dependent demand, meaning
that we need large quantities followed by periods of no demand.
8) Low-cost, high-volume items often require more intensive inspection than other
types of items.
9) The term capacity refers to the maximum quantity an operating unit can process over
a given period of time.
10) If the elapsed time for the task is short and the activity is somewhat routine, a
modest amount of improvement occurs during the first few repetitions.
11) One reason that accurate bills of material are important is that errors at one level
become magnified at lower levels because of the multiplication process used by MRP.
12) Given forecast errors of -5, -10, and +15, the MAD is:
A. 0
B. 10
C. 30
D. 175
E. 225
13) Strategies to address supply chain risks include:
(I) risk avoidance.
(II) risk reduction.
(III) risk projection.
(IV) risk sharing.
A.I, II, and IV only
B.II and III only
C.I and IV only
D.II and IV only
E.I, II, III, and IV
14) The business analyst for Video Sales, Inc. wants to forecast this year’s demand for
DVD decoders based on the following historical data:
What is the forecast for this year using a three-year weighted moving average with
weights of .5, .3, and .2?
A.163
B.180
C.300
D.420
E.510
15) Attempting to determine when preventive maintenance activities should be
performed is called:
A.breakdown maintenance.
B.forecastive maintenance.
C.preventive maintenance.
D.predictive maintenance.
E.corrective maintenance.
16) A lot can be “accepted” or “rejected” in a multiple-sampling plan:
A.after one sample is taken.
B.after two samples are taken.
C.after three or more samples are taken.
D.all of the choices.
E.none of the choices.
17) The quality manager for Frozen Pizzas, Inc., is concerned about the quality of the
lot of several thousand pizzas which his company produced this week, and is now ready
to ship. If he uses an acceptance sampling plan of n = 8 and c = 1, what is the
probability that, if this lot is 10 percent defective, it will be accepted for shipment
without inspection?
A..9619
B..9428
C..8131
D..4305
E..1869
18) A lean-systems method of asking questions about a process is the __________
approach.
A.jidoka
B.3 kanban
C.heijunka
D.2 kaizen
E.5W2H
19) The following table contains information about five jobs waiting to be processed at
work center number three.
Using the EDD rule, the sequence of jobs would be:
A.d-e-b-a-c.
B.a-d-c-b-e.
C.e-d-b-a-c.
D.a-d-c-e-d.
E.e-b-c-d-a.
20) The activity controlled in the same way by both kanban and MRP is the
determination of:
A.rates of output.
B.products to be built.
C.materials required.
D.capacity required.
E.feedback information.
21) A methods and measurements analyst needs to develop a time standard for a certain
task. In a preliminary study, he observed one of his workers perform this task five
times, with the following results:
What is the standard time for this task if the employee worked at a 25 percent faster
pace than average and an allowance of 20 percent of job time is used?
A.80 seconds
B.96 seconds
C.100 seconds
D.120 seconds
E.125 seconds
22) Using the latest observation in a sequence of data to forecast the next period is:
A.a moving average forecast.
B.a naive forecast.
C.an exponentially smoothed forecast.
D.an associative forecast.
E.regression analysis.
23) The quality certification that deals primarily with conformance to customer
requirements is ISO __________; ISO __________ is concerned primarily with the
organization’s effect on the environment.
A.9000; 14000
B.24700; 9000
C.14000; 9000
D.9000; 24700
E.14000; 24700
24) Which of the following would not be a potential upside in a decision to outsource?
A.supplier capacity
B.potential to lower fixed costs
C.supplier expertise
D.knowledge sharing
E.supplier cost
25) Focusing attention on the most important problem areas is referred to as:
A.quality circles.
B.quality assurance.
C.brainstorming.
D.Pareto analysis.
E.cause-and-effect analysis.
26) The owner of a greenhouse and nursery is considering whether to spend $6,000 to
acquire the licensing rights to grow a new variety of rosebush, which she could then sell
for $6 each. Per-unit variable cost would be $3. How many rosebushes would she have
to produce and sell in order to make a profit of $6,000?
A.1,600
B.2,400
C.3,000
D.1,000
E.4,000
27) Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni
each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and
carrying costs are 4 cents per pound per day. Lead time for each order is three days, and
the pepperoni itself costs $3.00 per pound. If she were to order 80 pounds of pepperoni
at a time, what would be the average inventory level?
A.20 pounds
B.40 pounds
C.60 pounds
D.80 pounds
E.100 pounds