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1) Which of the following mechanisms for enhancing profitability is most likely to
result from improving short-term forecast performance?
A.increased inventory
B.reduced flexibility
C.higher-quality products
D.greater customer satisfaction
E.greater seasonality
2) Which item would be least likely to be ordered under a fixed-order-interval system?
A.textbooks at a college bookstore
B.auto parts at an assembly plant
C.cards at a gift shop
D.canned peas at a supermarket
3) In the basic EOQ model, if lead time increases from five to 10 days, the EOQ will:
A.double.
B.increase, but not double.
C.decrease by a factor of 2
D.remain the same.
4) The tool that is useful in the collection and organization of data is a:
A.control chart.
B.Pareto chart.
C.check sheet.
D.flowchart.
E.runs chart.
5) Gantt charts are most closely associated with
A.JIT.
B.PERT.
C.MRP.
D.MRPII.
E.Six Sigma.
6) Which of the following is not typically treated as part of a project life cycle?
A.feasibility analysis
B.planning
C.maturity
D.incubation
E.alternative generation
7) A basic difference between infinite-source and finite-source queuing models is the:
A.number of servers.
B.average waiting time.
C.arrival distribution.
D.size of potential calling population.
E.processing rate.
8) Which of the following characterizes decision making under uncertainty?
A.Decision makers must rely on probabilities in assessing outcomes.
B.The likelihood of possible future events is unknown.
C.Relevant parameters have known values.
D.Certain parameters have probabilistic outcomes.
E.Lack of knowledge about how risk-averse the decision maker is.
9) The owner of Tastee Cookies needs to decide whether to lease a small, medium, or
large new retail outlet. She estimates that monthly profits will vary with demand for her
cookies as follows:
If she uses the maximax criterion, what size outlet will she decide to lease?
A.small
B.medium
C.large
D.either small or medium
E.either medium or large
10) The operations manager for a local bus company wants to decide whether he should
purchase a small, medium, or large new bus for his company. He estimates that the
annual profits (in $000) will vary depending upon whether passenger demand is low,
medium, or high, as follows:
If he uses the Laplace criterion, which size bus will he decide to purchase?
A.small
B.medium
C.large
D.either small or medium
E.either medium or large
11) 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 will be the efficiency of the assembly line
that uses the minimum number of workstations?
A.0.0 percent
B.6.7 percent
C.70.0 percent
D.93.3 percent
E.100 percent
12) Customers arrive at a suburban ticket outlet at the rate of 14 per hour on Monday
mornings. This can be described by a Poisson distribution. Selling the tickets and
providing general information takes an average of three minutes per customer, and
varies exponentially. There is one ticket agent on duty on Mondays. Determine each of
the following:
(A) system utilization
(B) average number in line
(C) average time in line
(D) average time in the system
13) Loss of business, liability, productivity, and costs are consequences of:
A.labor unions.
B.globalization.
C.poor quality.
D.robotics.
E.micro-factories.
14) Which of the following is not generally considered an advantage of specialization?
A.high productivity
B.low wage costs
C.ease of training employees
D.low equipment costs
E.All are advantages
15) In an assignment method problem, if it takes Abe 3 hours to build a birdhouse and 4
hours for a doghouse, while Betty takes 4 hours for a birdhouse and 3 hours for a
doghouse, what is the reduced cost (in hours) of assigning Abe to build the doghouse?
A.0 hours
B.1 hour
C.2 hours
D.3 hours
E.4 hours
