Which of the following is not a reason for variability?
A) Employees, machines, and suppliers produce units late.
B) Customer demand is unknown.
C) Employees, machines, and suppliers produce units that conform to standards.
D) Engineering drawings are inaccurate.
E) Drawings or specifications are incomplete.
Which of these organizations is likely to have the most complex inventory decisions?
A) a marketing research firm
B) a stock brokerage firm
C) a management consulting firm
D) a computer manufacturing company
E) a high school
Which of the four major categories of quality costs is particularly hard to quantify?
A) prevention costs
B) appraisal costs
C) internal failure costs
D) external failure costs
E) None is hard to quantify.
Given an actual demand of 61, a previous forecast of 58, and an alpha of .3, what would
the forecast for the next period be using simple exponential smoothing?
A) 45.5
B) 57.1
C) 58.9
D) 61.0
E) 65.5
For the problem data set below, what is the northwest corner allocation to the cell
Source 3-Destination 3?
A) 0
B) 15
C) 20
D) 35
E) 45
The learning curve rate is
A) the percentage of time it will take to make each unit when the production rate
doubles
B) the log-log of the annual rate change divided by the average unit cost
C) always based on constant value dollars
D) only considered valid after one year of data is accumulated
E) always equal to at least 75%
A process layout problem consists of 4 departments, each of which can be assigned to
one of four rooms. The number of different solutions to this problem is __________,
although all of them may not have different material handling costs.
A) 1
B) 4
C) 16
D) 24
E) unknown
A queuing model which follows the M/M/1 assumptions has » = 2 and ¼ = 8. The
average number in the system L is __________ and the utilization of the system is
__________.
A) 3; 100 percent
B) 0.33; 25 percent
C) 4; 33 percent
D) 6; 25 percent
E) 4; 25 percent
The region which satisfies all of the constraints in graphical linear programming is
called the
A) area of optimal solutions
B) area of feasible solutions
C) profit maximization space
D) region of optimality
E) region of non-negativity
Which of the following services is least likely to be unique, i.e., customized to a
particular individual’s needs?
A) dental care
B) hairdressing
C) legal services
D) elementary education
E) computer consulting
A company negotiates a price for two aircraft that includes a reduction in labor on the
second aircraft consistent with a 70% learning curve. Suppose the first aircraft took 100
hours. If the improvement rate changes to 20%, how will the total time to complete both
aircraft change?
A) no change
B) -10 hours
C) + 10 hours
D) -50 hours
E) + 50 hours
By which distribution system is 90 percent of U.S. coal shipped?
A) railroads
B) trucks
C) waterways
D) pipelines
E) none of the above
Three critical path activities are candidates for crashing on a CPM network. Activity
details are in the table below.
a. What is the crash cost per unit time for each of the three activities?
b. Which activity should be crashed first to cut one day from the project’s duration; how
much is added to project cost?
c. Which activity should be the next activity crashed to cut a second day from the
project’s duration; how much is added to project cost?
A brake system installer in an auto factory has an actual average time of 10 minutes on
her task. The performance rating of the worker timed was estimated at 110%. Practice
in this department is to allow 9% for the constant allowances. There is currently no
variable allowance.
a. Find the normal time for the operation.
b. Compute the standard time for the operation.
c. Recompute the standard time if a variable allowance of 7% is factored in.
In MRP, the number of units projected to be available at the beginning of each time
period refers to
A) net requirements
B) scheduled receipts
C) the projected usage of the item
D) the amount projected to be on hand
E) the amount necessary to cover a shortage
Which of the following restrictions applies to queuing models but not Monte Carlo
simulations?
A) Poisson distribution of arrivals
B) constant or exponential service times
C) average length of line
D) A and B
E) A, B, and C
The c-chart signals whether there has been a
A) gain or loss in uniformity
B) change in the number of defects per unit
C) change in the central tendency of the process output
D) change in the percent defective in a sample
E) change in the AOQ
In a stopwatch time study, the average time it takes a given worker to perform a task a
certain number of times, without correction for performance rating or allowances, is the
A) average observed time
B) standard time
C) performance rating time
D) normal time
E) allowance time
The main issue in designing process layouts concerns the relative positioning of
A) safety devices
B) departments
C) raw materials
D) entrances, loading docks, etc.
E) supervisors to their employees
The __________ is an iterative technique for moving from an initial feasible solution to
an optimal solution in the transportation method.
The department manager using a combination of methods has forecast sales of toasters
at a local department store. Calculate the MAD for the manager’s forecast. Compare the
manager’s forecast against a naive forecast. Which is better?
Which technique results in an optimistic decision? Why?
Define variability within the context of JIT.
The __________ develops an initial feasible solution for a transportation model by
starting at the upper left-hand cell of a table and systematically allocating units to
shipping points.