1) The goal of queuing analysis is to balance the cost of providing a level of service
capacity with the possible loss of business due to customers leaving the line or refusing
to wait.
2) Productivity is directly related to the ability of an organization to compete.
3) Design capacity refers to the maximum output that can possibly be attained.
4) A process layout is more susceptible to shutdowns caused by equipment breakdowns
than a product layout.
5) One way that project management differs from management of more traditional
activities is because of the limited lifetime of projects.
6) The inventory value of the supply chain exceeds the inventory value of the
organization’s work-in-process inventory.
7) “Balance delay” is another name for the percentage of idle time in a product layout.
8) The degree to which a product or service satisfies its intended purpose is determined
by service after delivery, ease of use, design, and conformance to design.
9) In a double-sampling plan, a second sample may not be taken if the results of the
first sample are conclusive.
10) Initially, a master production schedulethe output from MRPmay not represent a
feasible schedule.
11) An example of a strategic operations management decision is the choice of where to
locate.
12) One disadvantage of specialization is worker dissatisfaction.
13) Competitiveness relates to the profitability of an organization in the marketplace.
14) Lean production systems incorporate the advantages of both mass production and
craft production.
15) The owner/operator of the local franchise of Handyman, Inc., has four jobs to do
today, shown in the order they were received:
If he uses the shortest processing time first priority rule to schedule these jobs, what
will be the average job tardiness?
A.0 hours
B.1.5 hours
C.1.75 hours
D.2 hours
E.2.25 hours
16) In an A-B-C system, the typical percentage of the number of items in inventory for
A items is about:
A.10
B.30
C.50
D.70
E.90
17) A job has a normal time of 12 minutes, a performance rating of .80, and an
allowance factor of 20 percent of job time. The standard time for this job in minutes is:
A.11.52
B.12
C.14.4
D.15
E.depends on the number of cycles observed.
18) The manager of the Quick Stop Corner Convenience Store (which never closes)
sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer
costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive
three days from the time they are placed. Daily holding costs are equal to 5 percent of
the cost of the beer.
At what point should he reorder Stein beer?
A.0 cases remaining
B.4 cases remaining
C.12 cases remaining
D.16 cases remaining
E.20 cases remaining
19) The Baldrige Award is based on seven categories. Which is not one of those?
A.relative profitability
B.strategic planning
C.human resource focus
D.information and analysis
E.leadership
20) Measurements taken at various points in the transformation process for control
purposes are called:
A.plans.
B.directions.
C.controls.
D.feedback.
E.budgets.
21) One possible disadvantage of modular design is that:
A.replacement and repair are more difficult.
B.failure diagnosis is more complex.
C.the number of configurations of modules decreases.
D.individual parts lose their identities.
E.inventory problems arise.
22) Lost production time, scrap, and rework are examples of:
A.internal failure costs.
B.external failure costs.
C.appraisal costs.
D.prevention costs.
E.replacement costs.
23) A firm has 56 units of product X on hand. Forecasts of demand are for 20 units per
week. An MPS quantity of 100 units is planned to arrive in period 3. Customer orders
are 24 for period 1, 18 for period 2, and 15 for period 3.
What is the projected on-hand inventory at the end of period 2?
A.14
B.32
C.12
D.20
E.impossible to say without more information
24) Product design and choice of location are examples of _______ decisions.
A.strategic
B.tactical
C.operational
D.customer-focused
E.design
25) When the opportunity cost of lost revenue is relatively high, _________ become(s)
relatively more attractive.
A.layoffs
B.back orders
C.excess capacity
D.disaggregation
E.minimal inventory
26) A project is represented by the following diagram:
The expected duration of this project is:
A.12
B.17
C.20
D.36
E.77
27) Which objective function has the same slope as this one: $4x + $2y = $20?
A.$4x + $2y = $10
B.$2x + $4y = $20
C.$2x – $4y = $20
D.$4x – $2y = $20
E.$8x + $8y = $20
28) A restaurant at a popular Colorado casino provides priority service to player’s card
holders. The restaurant has 10 tables or booths where customers may be seated. The
service time (time a booth or table is occupied) averages 40 minutes once a party is
seated. The customer arrival rate is 12 parties per hour, with the parties being equally
divided between card holders and people without player’s cards. What is the average
time that player’s card holders wait to be seated?
A.approx. 4 minutes
B.approx. 8 minutes
C.approx. 12 minutes
D.approx. 15 minutes
E.approx. 2 minutes
29) Which of the following would be an advantage of using a sales force composite to
develop a demand forecast?
A.The sales staff is least affected by changing customer needs.
B.The sales force can easily distinguish between customer desires and probable actions.
C.The sales staff is often aware of customers’ future plans.
D.Salespeople are least likely to be influenced by recent events.
E.Salespeople are least likely to be biased by sales quotas.
30) An electronics firm produces two models of pocket calculators: the A-100 (A),
which is an inexpensive four-function calculator, and the B-200 (B), which also features
square root and percent functions. Each model uses one (the same) circuit board, of
which there are only 2,500 available for this week’s production. Also, the company has
allocated a maximum of 800 hours of assembly time this week for producing these
calculators, of which the A-100 requires 15 minutes (.25 hours) each, and the B-200
requires 30 minutes (.5 hours) each to produce. The firm forecasts that it could sell a
maximum of 4,000 A-100s this week and a maximum of 1,000 B-200s. Profits for the
A-100 are $1.00 each, and profits for the B-200 are $4.00 each. For the production
combination of 1,400 A-100s and 900 B-200s, which resource is slack (not fully used)?
A.circuit boards (only)
B.assembly time (only)
C.both circuit boards and assembly time
D.neither circuit boards nor assembly time
E.cannot be determined exactly
31) Primary considerations in scheduling high-volume systems involve:
(I) coordinating the flow of inputs.
(II) overcoming the disruptions to planned outputs.
(III) assigning workers to work centers.
A.I and III
B.I and II
C.II and III
D.I, II, and III
E.II only
32) A manager has just received a revised price schedule from a vendor:
What order quantity should the manager use in order to minimize total costs? Annual
demand is 120 units, ordering cost is $8, and annual carrying cost is $1 per unit.
33) A manager wants to analyze the learning curve associated with producing one of his
company’s products. Accordingly, he has gathered the following data:
Approximately how long did it take to produce the first four units?
A.15 hours
B.16 hours
C.18 hours
D.20 hours
E.21 hours
34) Given the following data for a make-or-buy decision:
What are total costs to make a quantity of 15,000 units per year?
35) Eight instances of a worker doing a task were observed as follows:
If the person observed worked at a pace that is 80 percent of normal, what should be the
normal time for this task?
36) Data on demand over the last few years are available as follows:
What is this year’s forecast using a four-year simple moving average?
37) Refer to the following data for jobs waiting to be processed at a single work center
(jobs are shown in order of arrival):
What is the average completion time for the first come, first served priority rule
schedule? Average job tardiness? Average number of jobs at the center?
38) Consider the following information:
What are total revenues for the break-even quantity?
39) The operator of a concession at a downtown location estimates that he will sell 400
bags of circus peanuts during a year. Carrying costs are 17 percent of unit price, and
ordering cost is $22. The price schedule for bags of peanuts is: 1 to 199, $1.00 each;
200 to 499, $.94 each; and 500 or more, $.87 each. What order size would be most
economical?
40) Solve the following linear programming problem:
41) An analyst counted 17 A/B runs and 15 U/D runs in 26 time series observations. Do
these results suggest that the data are non-random?