1) According to Little’s law, the number of people in line depends on the time of day
that they arrive.
2) Project management software eliminates conflicts when there are shared resources.
3) Load reports show capacity requirements for departments or work centers which may
be more or less than the capacity available in that work center.
4) Control limits are based on multiples of the process standard deviation.
5) A quantity discount will lower the reorder point.
6) An assembly-time chart indicates gross and net requirements taking into account the
current available inventory.
7) Path probabilities are calculated by dividing path mean by path standard deviations.
8) There are three basic process types: input, processing, and output.
9) Seasonality in demand has the advantage of leveling out requirements for our
product or service.
10) According to learning curve theory, the time reduction per unit decreases
(improves) as the number of units increases.
11) The output from aggregate planning is a detailed business plan covering the next 2
to 12 months.
12) Many U.S. manufacturers are now shifting their focus from products to both
product and process improvements.
13) Once accepted by managers, forecasts should be held firm regardless of new input
since many plans have been made using the original forecast.
14) A multiple-channel system assumes that each server will have its own waiting line,
and line changing is not permitted.
15) Which of the following are limitations of PERT?
(I) Time estimates may include a fudge factor.
(II) Important activities may be overlooked.
(III) It is an after-the-fact analysis.
A.I and II
B.I, II, and III
C.I and III
D.II and III
E.I only
16) Consider the following work breakdown structure:
What is the estimated expected (mean) time for project completion?
A.135 days
B.145 days
C.170 days
D.180 days
E.255 days
17) Consider the following decision scenario:
*PV for profits ($000)
The minimax regret strategy would be:
A.buy.
B.lease.
C.rent.
D.high.
E.low.
18) Which is not a characteristic of exponential smoothing?
A.smoothes random variations in the data
B.weights each historical value equally
C.has an easily altered weighting scheme
D.has minimal data storage requirements
E.smoothes real variations in the data
19) Which of the following interactions with vendors would potentially lead to
inventory reductions?
A.reduced lead times
B.increased safety stock
C.less frequent purchases
D.larger batch quantities
E.longer order intervals
20) Although transitioning to a lean system can be a powerful means of improving
performance, it is generally thought that using __________ along with lean can lead to
even better results.
A.kaizen
B.ERP
C.six sigma
D.JIT
E.jidoka
21) 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:
How many observations should be made if she wants to be 95.44 percent confident that
the maximum error in the observed time is two seconds? Assume that the standard
deviation of the task time is six seconds.
A.5
B.6
C.30
D.36
E.49
22) What combination of x and y will yield the optimum for this problem?
A.x = 2, y = 0
B.x = 0, y = 0
C.x = 0, y = 3
D.x = 1, y = 5
E.x = 0, y = 4
23) A concert promoter is forecasting this year’s attendance for one of his concerts
based on the following historical data:
What is this year’s forecast using a two-year weighted moving average with weights of .
7 and .3?
A.19,400
B.18,600
C.19,000
D.11,400
E.10,600
24) For the jobs listed below, which processing sequence would result using Johnson’s
rule?
A.c-a-d-b
B.b-d-a-c
C.a-b-c-d
D.d-c-b-a
E.c-a-b-d
25) Two troubleshooters handle service calls for 10 machines. The average time
between service requirements is 18 days, and service time averages two days. Assume
exponential distributions. While running, each machine can produce 1,500 pieces per
day. Determine:
(A) the percentage of time troubleshooters are idle.
(B) each machine’s net productivity.
(C) If troubleshooters represent a cost of $150 per day, and machine downtime cost is
$600 per day, would another troubleshooter be justified? Explain.
26) Consider the following work breakdown structure:
What is the total cost of reducing the project to 18 weeks?
27) The Corner Newsstand has demand for a certain weekly magazine that can be
approximated by a Poisson distribution with a mean of 9.0. Magazines are purchased
for $1.50. If unsold copies can be returned for half credit and the owner stocks 10
copies, what is the implied range of shortage cost?
28) Consider the following work breakdown structure:
What is the total cost of reducing this project by two weeks?
29) Estimated demand for gold-filled lockets at Sam’s Bargain Jewelry and Housewares
is 2,420 lockets a year. Manager Veronica Winters has indicated that ordering cost is
$45, and that the following price schedule applies: 1 to 599 lockets, $.90 each; 600 to
1,199 lockets, $.80 each; and 1,200 or more, $.75 each. What order size will minimize
total cost if carrying cost is $.18 per locket on an annual basis?
30) Given the following process control data for a normally distributed quality variable
(three samples of size four each):
If this process is known to have a mean of 15 and a standard deviation of 3, what is the
mean of the sampling distribution of sample means for whenever this process is under
control? The standard deviation?
31) A manager is using exponential smoothing to predict merchandise returns at a
suburban branch of a department store chain. Given a previous forecast of 140 items, an
actual number of returns of 148 items, and a smoothing constant equal to .15, what is
the forecast for the next period?
32) There are three jobs to be done and three resources with which to do them. Each
resource will cost a specific amount to do each job, as shown in the following table:
What is the optimum assignment of jobs to machines?