1) The single-period model can be very helpful in determining when to order.
2) A single-period model would be used mainly by organizations going out of business.
3) The standard deviation of the critical path is equal to the sum of the standard
deviations of all of the activities on the critical path.
4) The latest starting time for an activity is equal to the latest finish time minus the
activity time.
5) Reliability refers to the ability of a product to perform its intended function under
normal conditions.
6) The transportation model assumes similar, homogeneous goods.
7) Location decisions are basically one-time decisions usually made by new
organizations.
8) Priority rules are widely used to sequence jobs in high-volume systems.
9) Curvilinear and multiple regression procedures permit us to extend associative
models to relationships that are nonlinear or involve more than one predictor variable.
10) A forecast method is generally deemed to perform adequately when the errors
exhibit an identifiable pattern.
11) One important factor that influences productivity is trust between workers and
managers.
12) Concurrent engineering brings people concerned with manufacturing into the
design phase earlier than in the “over-the-wall” approach.
13) In the basic EOQ model, an annual demand of 40 units, an ordering cost of $5, and
a holding cost of $1 per unit per year will result in an EOQ of:
A.20
B.square root of 200
C.200
D.400
E.600
14) When a process is in control, it results in there being, on average, 16 defects per
unit of output. c-chart limits of 4 and 28 would lead to a _______ percent chance of a
Type I error.
A.67
B.92
C.33
D.0.3
E.5
15) Which of the following features would not generally be considered common to all
forecasts?
A.Assumption of a stable underlying causal system.
B.Actual results will differ somewhat from predicted values.
C.Historical data is available on which to base the forecast.
D.Forecasts for groups of items tend to be more accurate than forecasts for individual
items.
E.Accuracy decreases as the time horizon increases.
16) Which of the following would not usually be a main factor in selecting a vendor?
A.location
B.price
C.quality
D.inventory turnover
E.vendor services
17) To facilitate utilization of bottleneck operations, in theory of constraints scheduling
________ can be split into __________ to reduce waiting times.
A.bottleneck lots; nonbottleneck lots
B.transfer batches; process lots
C.sized lots; constrained lots
D.process batches; transfer batches
E.buffer lots; transfer lots
18) The advertising manager for Roadside Restaurants, Inc., needs to decide whether to
spend this month’s budget for advertising on print media, television, or a mixture of the
two. She estimates that the cost per thousand “hits” (readers or viewers) will vary
depending upon the success of the new cable television network she plans to use, as
follows:
If she feels that there is a 60 percent chance that the new cable network will be
successful, what is her expected cost (per thousand “hits”) under certainty?
A.$3.40
B.$4.60
C.$8.00
D.$9.00
E.$10.00
19) Which of the following is least important as a consideration for a firm at the
beginning of a supply chain?
A.access to end consumers
B.access to resources
C.proximity to customers
D.access to transportation infrastructure
E.access to productive labor
20) Which of the following raises quality risks?
A.currency fluctuations
B.outsourcing to less-developed countries
C.empowering employees
D.benchmarking
E.streamlining the supplier base
21) In “crashing” a project, a manager will generally focus on activities which:
A.are not on the critical path.
B.are the least costly to crash.
C.are costly to crash and are on the critical path.
D.are on the critical path and are the least costly to crash.
E.are the easiest to crash.
22) Key aspects of the process selection challenge include _________ and __________.
A.information technology; marketing strategy
B.process flexibility; marketing strategy
C.capital intensity; process flexibility
D.marketing strategy; operations strategy
E.capacity planning; marketing strategy