A location decision for a traditional department store (Macy’s) would tend to have a(n)
A) cost focus
B) labor focus
C) revenue focus
D) environmental focus
E) education focus
The transportation method, when applied to location analysis
A) minimizes total fixed costs
B) minimizes total production and transportation costs
C) minimizes total transportation costs
D) maximizes revenues
E) minimizes the movement of goods
Which of the following product development strategies has the highest risk?
A) acquiring the developer
B) alliances
C) joint ventures
D) new internally developed products
E) purchasing technology
Manufacturability and Value Engineering has which of the following benefits?
I. Reduced complexity of the product
II. Reduction of environmental impact
III. Additional standardization of components
IV. Robust design
V. Improved job design and safety
A) I, III, V
B) II, IV
C) I, III, IV
D) IV
E) I, II, III, IV, V
Lag and straddle strategies for increasing capacity have what main advantage over a
leading strategy?
A) They are cheaper.
B) They are more accurate.
C) They delay capital expenditure.
D) They increase demand.
E) all of the above
The phrase “demand related to the demand for other products” describes
A) a dependent variable
B) dependent demand
C) recursive demand
D) regression analysis
E) independent demand
Acceptance sampling is usually used to control
A) the number of units output from one stage of a process which are then sent to the
next stage
B) the number of units delivered to the customer
C) the quality of work-in-process inventory
D) incoming lots of purchased products
E) all of the above
The first unit took 10 hours and the eighth unit took 1.25 hours. What is the learning
curve?
A) 50%
B) 90%
C) 80%
D) 12.5%
E) none of the above
A plant manager wants to know how much he should be willing to pay for perfect
market research. Currently there are two states of nature facing his decision to expand
or do nothing. Under favorable market conditions the manager would make $100,000
for the large plant and $5,000 for the small plant. Under unfavorable market conditions
the large plant would lose $50,000 and the small plant would make $0. If the two states
of nature are equally likely, how much should he pay for perfect information?
A) $0
B) $25,000
C) $50,000
D) $100,000
E) unable to determine
Genco, Inc., a small manufacturer of diesel-generator sets has four shearing machines.
Because of the age of these machines, they need minor repairs after 30 hours of use.
Analysis of previous breakdowns indicates that breakdowns follow a Poisson
distribution. The facility employs one repairman specifically to repair these machines.
Average repair time is two hours following an exponential distribution.
a. What is the service factor for this system?
b. What is the average number of these machines in service?
c. What is the impact of adding a second repairman?
It took 18 hours to complete the first two products with an 80% learning curve. How
long did the second product take?
A) 8 hours
B) 10 hours
C) 18 hours
D) 8.1 hours
E) none of the above
For the problem data set below, what is the northwest corner allocation to the cell
Source 1-Destination 1?
A) 0
B) 2
C) 15
D) 90
E) 30
A waiting-line problem that cannot be modeled by standard distributions has been
simulated. The table below shows the result of a Monte Carlo simulation. (Assume that
the simulation began at 8:00 a.m. and there is only one server.) Why do you think this
problem does not fit the standard distribution for waiting lines? Explain briefly how a
Monte Carlo simulation might work where analytical models cannot.
Which of the following is not associated with manipulation of product or service
demand?
A) price cuts or discounts
B) promotion
C) subcontracting
D) counterseasonal products or services
E) advertising
An organization’s approach to transforming resources into goods and services is called
its __________.
Explain how a load-distance model helps solve problems in process layout.
Competitive advantage in operations can be achieved by __________, __________,
and/or __________.
__________ is a method of giving an employee more responsibility that includes some
of the planning and control necessary for job accomplishment.
What are L and Lq, as used in waiting line terminology? Which is larger, L or Lq?
Explain.
Can an organization’s plans for vertical integration be supported by the tools of
make-or-buy analysis? Explain; provide an example.
“Proximity” or closeness implies that a firm should locate “close” to something. What
are the three kinds of proximity described in the text? What are the basic conditions
under which each is appropriate? What kinds of firms are likely to use each of these?
A(n) __________ is a bill of material for components, usually assemblies that exist
only temporarily; they are never inventoried.
Identify the limitations to job expansion.