1) Modern quality management emphasizes finding and correcting mistakes before they
reach the customercatching the errors before they are shipped.
2) Quality of conformance refers to the degree to which goods and services conform to
the intent of the designers as documented in the specifications.
3) Labor laws are an important site-related factor.
4) Increasing productivity and also quality will result in increased capacity.
5) The minimum number of workstations for a production line is determined in part by
the desired output rate.
6) The term isoprofit line means that all points on the line will yield the same profit.
7) In lean operations, when work is completed at one work center, it is important to
immediately move the completed work to the next work center to minimize idle time.
8) Increased setup times equal increased work-in-process inventories.
9) A process that exhibits random variability would be judged to be out of control.
10) Morale problems can be a reason for redesign of a facility layout.
11) “Value added” by definition is always a positive number since “added” implies
increases.
12) The inventory records contain information on the status of each item by time
period.
13) Consider the following decision scenario:
*PV for profits ($000)
If P(high) is .60, the choice for maximum expected value would be:
A.buy.
B.lease.
C.rent.
D.high.
E.low.
14) In the basic EOQ model, if D = 60 per month, S = $12, and H = $10 per unit per
month, EOQ is:
A.10
B.12
C.24
D.72
E.144
15) The center of gravity method is used to _______ travel time, distance, and costs.
A.normalize
B.eliminate
C.average
D.minimize
E.document
16) Suppose a given control unit fails, on average, every 12,000 hours. It takes an
average of 900 hours to repair and reboot this unit. The repair/reboot procedures for this
unit are being reconfigured. By how much would average repair/reboot time need to be
reduced to increase availability by 5 percent (assuming the control unit’s average life
remains unchanged)?
A.not more than 200 hours
B.more than 200 hours but not more than 400 hours
C.more than 400 hours but not more than 600 hours
D.more than 600 hours but not more than 800 hours
E.more than 800 hours
17) Consider the following decision scenario:
*PV for profits ($000)
The minimax regret strategy would be:
A.A
B.B
C.C
D.D
E.E
18) Averaging techniques are useful for:
A.distinguishing between random and nonrandom variations.
B.smoothing out fluctuations in time series.
C.eliminating historical data.
D.providing accuracy in forecasts.
E.average people.
19) A local bagel shop produces two products: bagels (B) and croissants (C). Each bagel
requires 6 ounces of flour, 1 gram of yeast, and 2 tablespoons of sugar. A croissant
requires 3 ounces of flour, 1 gram of yeast, and 4 tablespoons of sugar. The company
has 6,600 ounces of flour, 1,400 grams of yeast, and 4,800 tablespoons of sugar
available for today’s production run. Bagel profits are 20 cents each, and croissant
profits are 30 cents each. What is the objective function?
A.$0.30B + $0.20C = Z
B.$0.60B + $0.30C = Z
C.$0.20B + $0.30C = Z
D.$0.20B + $0.40C = Z
E.$0.10B + $0.10C = Z
20) The automatic identification of material is part of/facilitated by:
A.holding costs.
B.RFID.
C.working capital reduction.
D.net present value calculations.
E.vendor analysis.
21) The business analyst for Video Sales, Inc. wants to forecast this year’s demand for
DVD decoders based on the following historical data:
What is the forecast for this year using the naive approach?
A.163
B.180
C.300
D.420
E.510
22) One important objective of purchasing is to:
A.set quality standards for purchased items.
B.be knowledgeable about new products.
C.maintain numerous sources of supply.
D.obtain the lowest prices on all purchased items.
E.determine the processes that should be used.
23) A methods and measurements analyst needs to develop a time standard for a certain
task. In a preliminary study, he observed one of his workers perform this task five
times, with the following results:
What is the observed time for this task?
A.80 seconds
B.84 seconds
C.160 seconds
D.240 seconds
E.400 seconds
24) Which one of the following is not considered an important factor in service layout
design?
A.cost minimization and product flow
B.frequency of orders
C.customer attitude and image
D.intensity of contact with the customer
E.customer preferences with regard to variety
25) Consider the following work breakdown structure:
What is the probability that the critical path for this project will be completed within
210 days?
A.0.5000
B.0.8413
C.0.9544
D.0.9772
E.0.9987
26) The business analyst for Video Sales, Inc. wants to forecast this year’s demand for
DVD decoders based on the following historical data:
What is the forecast for this year using exponential smoothing with alpha = .4, if the
forecast for two years ago was 750?
A.163
B.180
C.300
D.420
E.510
27) Given the following data for a make-or-buy decision:
For what range of output would you prefer to make?
28) Given the following data for jobs awaiting processing at a manufacturing cell in
which jobs are first processed by machine A, then by machine B:
In developing the sequence which will minimize throughput time, where should job X
be placed?
29) Consider the following information about sites A, B, and C:
For what range of output would you prefer site A?
30) Given the following data for jobs awaiting processing at a manufacturing cell in
which jobs are first processed by machine A, then by machine B:
When does idle time occur at machine B for the optimum schedule?
31) Given the following line balance data:
What is the minimum possible cycle time?
32) An initial time study resulted in an average observed time of 2.2 minutes per cycle,
and a standard deviation of .3 minutes per cycle. The performance rating was 1.20.
What sample size, including the 20 observations in the initial study, would be necessary
to have a confidence of 95.44 percent that the observed time was within 4 percent of the
true value?
33) Given the following process control data for a normally distributed quality variable
(three samples of size four each):
What is the sample mean for sample #1? #2? #3?