1) The primary purpose of statistical process control is to detect a defective product
before it is shipped to a customer.
2) Repetitive processing systems usually produce goods specifically for customer
orders rather than for inventory.
3) The higher the node number, the longer the activity will take.
4) Input/output (I/O) control refers to monitoring the productivity changes since
productivity is determined by the ratio of output to input.
5) LP problems must have a single goal or objective specified.
6) Eva, the owner of Eva’s Second Time Around Wedding Dresses, currently has five
dresses to be altered, shown in the order in which they arrived:
If Eva uses the earliest due date first (EDD) priority rule to schedule these jobs, what
will be the average job tardiness?
A.2 hours
B.2.2 hours
C.2.33 hours
D.2.4 hours
E.3 hours
7) A process results in a few defects occurring in each unit of output. Long-run, these
defects should be monitored with:
A.p-charts.
B.c-charts.
C.x-bar charts.
D.R-charts.
E.o-charts.
8) The forecasting method which uses anonymous questionnaires to achieve a
consensus forecast is:
A.sales force opinions.
B.consumer surveys.
C.the Delphi method.
D.time series analysis.
E.executive opinions.
9) A time-ordered plot of sample statistics is called a(n) ______ chart.
A.statistical
B.inspection
C.control
D.simo
E.limit
10) Maintenance activities are often organized into the following two groups:
A.breakdown maintenance and preventive maintenance
B.breakdown maintenance and predictive maintenance
C.preventive maintenance and predictive maintenance
D.equipment maintenance and breakdown maintenance
E.equipment maintenance and buildings maintenance
11) Which of the following is not a location option that management can consider in
location planning?
A.Expand an existing facility.
B.Add a new location.
C.Relocate from one location to another.
D.Do nothing.
E.All of the choices.
12) Suppose that for a particular piece of machinery, the frequency distribution of
monthly breakdowns is as follows:
The cost of a breakdown is $2,000, and the cost of a preventive maintenance program is
$2,000 per month. If the preventive maintenance program is adopted, the probability of
a machine breakdown is negligible. How much better off per month would the firm be
if it adopted preventive maintenance?
A.$100 worse off
B.$200 worse off
C.$100 better off
D.$200 better off
E.$2,000 better off
13) A design engineer wants to construct a sample mean chart for controlling the
service life of a halogen headlamp his company produces. He knows from numerous
previous samples that this service life is normally distributed with a mean of 500 hours
and a standard deviation of 20 hours. On three recent production batches, he tested
service life on random samples of four headlamps, with these results:
If he uses upper and lower control limits of 520 and 480 hours, what is his risk (alpha)
of concluding that service life is out of control when it is actually under control (Type I
error)?
A.0.0026
B.0.0456
C.0.3174
D.0.6826
E.0.9544
14) Factors affecting the decision of how much preventive maintenance is desirable
typically include all of the following except:
A.age of equipment.
B.type of product.
C.degree of technology.
D.type of production process.
E.how critical to the production process.
15) Which one of the following most closely describes net material requirements?
A.gross requirements – amount on hand – scheduled receipts
B.gross requirements – planned receipts
C.gross requirements – order releases + amount on hand
D.gross requirements – planned order releases
E.gross requirements – amount on hand + planned order releases
16) A system consists of two components, each of which must activate if the system is
to activate. One component has a reliability of .99. The other has a reliability of .95.
What is the overall system reliability?
A..99
B..95
C..94
D..90
E.Cannot be determined with this information.
17) The president of State University wants to forecast student enrollments for this
academic year based on the following historical data:
What is the forecast for this year using a four-year simple moving average?
A.18,750
B.19,500
C.21,000
D.22,650
E.22,800
18) The scheduling sequencing rule which always results in the lowest average
completion (flow) time is the:
A.first come, first served (FCFS) rule.
B.shortest processing time first (SPT) rule.
C.earliest due date first (EDD) rule.
D.least slack per operation first (S/O) rule.
E.run until slack happens (RUSH) rule.
19) When a process is in control, it results in there being, on average, 16 defects per
unit of output. c-chart limits of 8 and 24 would lead to a _______ percent chance of a
Type I error.
A.67
B.92
C.33
D..03
E.5
20) The head of operations for a movie studio wants to determine which of two new
scripts they should select for their next major production. (Due to budgeting constraints,
only one new picture can be undertaken at this time.) She feels that script 1 has a 70
percent chance of earning about $10,000,000 over the long run, but a 30 percent chance
of losing $2,000,000. If this movie is successful, then a sequel could also be produced,
with an 80 percent chance of earning $5,000,000, but a 20 percent chance of losing
$1,000,000. On the other hand, she feels that script 2 has a 60 percent chance of earning
$12,000,000, but a 40 percent chance of losing $3,000,000. If successful, its sequel
would have a 50 percent chance of earning $8,000,000, but a 50 percent chance of
losing $4,000,000. Of course, in either case, if the original movie were a flop, then no
sequel would be produced.
What is the expected value of selecting script 1?
A.$15,000,000
B.$9,060,000
C.$8,400,000
D.$7,200,000
E.$6,000,000
21) A quality inspector for Alpha-Beta Co. is concerned about the quality of the batch
of several thousand blank DVD disks which his company produced this week and is
preparing to ship. If the cost of replacing a defective DVD disk once it has been shipped
is $2.00, while the cost of 100 percent inspection prior to shipment is $.40 each, at what
point is he indifferent between 100 percent inspection and shipment without inspection?
A.0 percent defectives
B.2 percent defectives
C.5 percent defectives
D.20 percent defectives
E.30 percent defectives
22) Range charts are used mainly with attribute data.
23) A bank of 10 machines requires regular periodic service. Machine running time and
service time are both exponential. Machines run for an average of 44 minutes between
service requirements, and service time averages six minutes per machine. What is the
probability that a machine will have to wait for service with two operators?
A..654
B..090
C..346
D..910
E..016
24) The total maintenance curve (preventive maintenance cost plus breakdown and
repair cost):
A.slopes up as the number of preventive maintenances increases.
B.slopes down as the number of preventive maintenances increases.
C.starts low, increases rapidly, and then drops back down as the number of preventive
maintenances increases.
D.starts high, drops gradually, but then goes back up as the number of preventive
maintenances increases.
E.remains relatively flat as the number of preventive maintenances increases.
25) In a project network, the critical path is the sequence of activities which has the:
A.most activities.
B.most nodes.
C.most events.
D.longest duration.
E.greatest variance.
26) Given the following data for a make-or-buy decision:
What would be your total costs for the preferred alternative, for 32,000 units per year?
27) Consider the following decision scenario:
If you are uncertain which state of nature will occur, and use the Laplace criterion,
which alternative will you select?
28) 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, and if the
appropriate allowance for this task is 25 percent of job time, what should be the
standard time?
29) The frequency of breakdown of a piece of equipment per month is shown in the
following table. The cost of a breakdown is $1,000, and the cost of preventive
maintenance is $2,000 per month. Assume that the equipment breakdown can be
avoided if preventive maintenance is performed. Should the manager use preventive
maintenance, or would it be better to fix the equipment when it breaks down?
[COMP: Delete zeros before decimals in table.]
30) Consider the following information about sites A, B, and C:
What are total costs for site B for a quantity of 5,000 units per year?
31) Consider the following information:
What is total forecasted demand?