1) A 30 percent reduction in product and service variety will not affect the efficiency of
a supply chain.
2) Ideally, preventive maintenance will be performed before a breakdown or failure.
3) The term range of optimality refers to a constraint’s right-hand-side quantity.
4) Reducing the variations in our product or service is an important key to perceived
quality.
5) Product reliability involves both short-term and long-term perspectives.
6) The objective of inventory management is to minimize the cost of holding inventory.
7) For the constraints given below, which point is in the feasible solution space of this
minimization problem?
A.x = .5, y = 5
B.x = 0, y = 4
C.x = 2, y = 5
D.x = 1, y = 2
E.x = 2, y = 1
8) _________________ is a means of assessing the impact of changing parameters in a
linear programming model.
A.Simulplex
B.Simplex
C.Slack
D.Surplus
E.Sensitivity
9) Which of the following is the last step in the procedure for making location
decisions?
A.Determine the evaluation criteria.
B.Identify important factors.
C.Develop location alternatives.
D.Evaluate alternatives and make a selection.
E.Request input regarding alternatives.
10) In location planning, the location of raw materials, the location of markets, and
labor factors are:
A.regional factors.
B.community factors.
C.site-related factors.
D.national factors.
E.minor considerations.
11) A manufacturer is contemplating a switch from buying to producing a certain item.
Setup cost would be the same as ordering cost. The production rate would be about
double the usage rate. Compared to the EOQ, the economic production quantity would
be approximately:
A.the same.
B.20 percent larger.
C.40 percent larger.
D.20 percent smaller.
E.40 percent smaller.
12) The theoretical limit on the number of decision variables that can be handled by the
simplex method in a single problem is:
A.1
B.2
C.3
D.4
E.unlimited.
13) The greater the volume of the process being targeted for inspection, the more
attractive __________ inspection is.
A.monitored
B.controlled
C.periodic
D.variable
E.automated
14) Which of the following is not a principle regarding the way lean systems function?
(I) Identifying customer values
(II) Focusing on processes that create value
(III) Elimination of waste to create flow
(IV) Increasing forecast accuracy
(V) Producing only according to customer demand
(VI) Optimizing on setup costs with long production runs
(VII) Striving for perfection
A.IV
B.II and IV
C.both IV and VI
D.IV and V
E.VI
15) In the broadest sense, equipment and facilities preventive maintenance extends back
to the:
A.design and selection stage.
B.procurement stage.
C.installation stage.
D.pilot-testing stage.
E.implementation stage.
16) On a log-log graph, learning curves appear as:
A.upward-curving lines.
B.downward-curving lines.
C.straight lines.
D.lines which increase at a decreasing rate.
17) A manager wants to choose one of two forecasting alternatives. Each alternative
was tested using historical data. The resulting forecast errors for the two are shown in
the table. Analyze the data and recommend a course of action to the manager.
18) Making plans for how products that have reached the end of their useful lives will
be dealt with is the primary subject of:
A.cradle-to-grave assessment.
B.end-of-life programs.
C.life-cycle analysis.
D.three R’s programs.
E.process mapping.
19) To which worker would learning curves be most applicable?
A.bus driver
B.printing press operator
C.assembly-line worker
D.auto service mechanic
E.baker or cook
20) Consider the following work breakdown structure:
What are the estimated expected (mean) times (in weeks) for activities A-H?
21) Given the following process control data for a quality attribute (three samples of
size 400 each):
If the process is known to produce 11 percent defectives on average, what are the upper
and lower control limits for an alpha risk of .10? .05? .01?
22) Eight instances of a worker doing a task were observed as follows:
If the person observed worked at a pace that is 20 percent faster than average, and if the
appropriate allowance for this task is 25 percent of the workday, what should be the
standard time?
23) Given the following process control data for a quality attribute (three samples of
size 400 each):
If the process is known to produce 11 percent defectives on average, using three-sigma
control limits, do any of the sample proportions indicate an out-of-control process
proportion of defectives?
24) Given the following data for a particular inventory item:
For the economic order quantity, what are average weekly carrying costs?