1) Net requirements for component J are as follows: 60 units in week 2, 40 units in
week 3, and 60 units in week 5. If a fixed-period, three-period lot-sizing method is
used, what will be the quantity of the first planned receipt?
A.60
B.100
C.160
D.cannot be determined
E.none of the choices
2) A potential obstacle to conversion to a lean system is:
A.lack of management commitment.
B.lack of worker cooperation.
C.supplier resistance.
D.all of the choices.
E.insufficient space to store the increased inventories.
3) The operations manager for a well-drilling company must recommend whether to
build a new facility, expand his existing one, or do nothing. He estimates that long-run
profits (in $000) will vary with the amount of precipitation (rainfall) as follows:
If he uses the maximax criterion, which alternative will he decide to select?
A.do nothing
B.expand
C.build new
D.either do nothing or expand
E.either expand or build new
4) A company is preparing a bid on a government contract for 40 units of a certain
product. The operations manager estimates the assembly time required for the first two
units to be 10.4 hours and 8.8 hours.
What is the average time per unit for the first 30 units?
A.4.7 hours
B.5.9 hours
C.5.6 hours
D.4.5 hours
E.3.6 hours
5) A company needs to rebalance a product layout for producing new plastic license
plates. They plan to use the assembly line six hours in order to meet projected demand
of 2,160 license plates each day. The following table describes the tasks involved in the
production of this product:
For output to equal projected demand, what is the minimum number of workstations
needed?
A.2
B.2.8
C.3
D.4
E.5
6) Building up an inventory of standard parts or modules instead of immediately
producing the finished end items is the essence of:
A.delayed differentiation.
B.kanban.
C.autonomation.
D.andon.
E.matrix management.
7) Efficiency is defined as the ratio of:
A.actual output to effective capacity.
B.actual output to design capacity.
C.design capacity to effective capacity.
D.effective capacity to actual output.
E.design capacity to actual output.
8) From the worker’s perspective, an output-based pay system has the advantage of:
A.linking pay more directly to effort.
B.keeping earnings stable.
C.keeping pay totally in the worker’s control.
D.minimizing the temptation to work harder for more money.
E.keeping effort from influencing pay.
9) The maker of the world-famous Chocolate Chip Cookies needs to design a product
layout for a new product, Mint Chocolate Chip. The company plans to use this new
production line eight hours a day in order to meet projected demand of 1,440 cases per
day. The following table describes the tasks involved in the production of a Mint
Chocolate Chip Cookie.
For output to equal projected demand, what will be the efficiency of the production line
that uses the minimum number of workstations?
A.93.33 percent
B.95 percent
C.97 percent
D.99 percent
E.100 percent
10) The technique which can be used to estimate the percentage of time a worker or
piece of equipment is idle is known as:
A.MTM.
B.work sampling.
C.methods analysis.
D.micro motion study.
E.none of these.
11) Consider the following decision scenario:
*PV for profits ($000)
The maximin strategy would be:
A.small.
B.medium.
C.med.-large.
D. large.
E. ex-large.