1) Organizational strategy should be determined without considering the realities of
functional area strengths and weaknesses since they can be changed to meet our
strategy.
2) Line balancing is a major factor in the design and scheduling of low-volume systems
because of batch processing.
3) Therbligs are basic elemental motions.
4) Ultimately the overriding factor in choosing a strategy in aggregate planning is
overall cost.
5) In the decision-making hierarchy, scheduling decisions are the final step in the
transformation process before actual output occurs.
6) In the lean philosophy, the larger the lot size, the easier it is to schedule.
7) The equation 3xy = 9 is linear.
8) The estimation of costs is generally most difficult when the ___________ process
has been chosen.
A.project
B.repetitive
C.continuous
D.batch
E.job shop
9) The manager of the Quick Stop Corner Convenience Store (which never closes) sells
four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs
$.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three
days from the time they are placed. Daily holding costs are equal to 5 percent of the
cost of the beer.
If he were to order 16 cases of Stein beer at a time, what would be the length of an
order cycle?
A..25 days
B.3 days
C.1 day
D.4 days
E.20 days
10) When the output is less than the optimal rate of output, the average unit cost will be:
A.lower.
B.the same.
C.higher.
D.could be either higher or lower.
E.could be either higher, lower or the same.
11) The multiplication process used by MRP to determine lower-level requirements is
called:
A.time-phasing.
B.pegging.
C.netting.
D.projecting.
E.exploding.
12) A company is designing a product layout for a new product. It plans to use this
production line eight hours a day in order to meet projected demand of 480 units per
day. The tasks necessary to produce this product are:
If the company wants the output rate to be equal to demand, what is the last task
performed at the second workstation in the balance which uses the minimum number of
workstations?
A.u
B.v
C.w
D.x
E.y
13) A shadow price reflects which of the following in a maximization problem?
A.marginal cost of adding additional resources
B.marginal gain in the objective that would be realized by adding one unit of a resource
C.net gain in the objective that would be realized by adding one unit of a resource
D.marginal gain in the objective that would be realized by subtracting one unit of a
resource
E.expected value of perfect information
14) The owner of Darkest Tans Unlimited in a local mall is forecasting this month’s
(October’s) demand for the one new tanning booth based on the following historical
data:
What is the monthly rate of change (slope) of the least squares trend line for these data?
A.320
B.102
C.8
D.-.4
E.-8
15) The construction manager for Acme Construction, Inc., must decide whether to
build single-family homes, apartments, or condominiums. He estimates annual profits
(in $000) will vary with the population trend as follows:
If he uses the minimax regret criterion, which kind of dwellings will he decide to build?
A.single family
B.apartments
C.condos
D.either single family or apartments
E.either apartments or condos
16) Doctor J. is considering purchasing a new blood analysis machine to test for HIV; it
will cost $60,000. He estimates that he could charge $25.00 for an office visit to have a
patient’s blood analyzed, while the actual cost of a blood analysis would be $5.00. How
many HIV blood analyses would he have to perform in order to make a profit of
$15,000?
A.3,000
B.4,800
C.5,000
D.12,000
E.3,750
17) Inventory information for firm ABC:
What is the expected inventory at the end of April 2008?
A.350
B.250
C.150
D.50
E.80
18) Which of the following would not be a strategy associated with adjusting aggregate
capacity to meet expected demand?
A.Subcontract.
B.Vary the size of the workforce.
C.Vary the intensity of workforce utilization.
D.Allow inventory levels to vary.
E.Use back orders.
19) A company needs to locate three departments (X, Y, and Z) in the three areas (I, II,
and III) of a new facility. They want to minimize interdepartmental transportation costs,
which are expected to be $.50 per load meter moved. An analyst has prepared the
following flow and distance matrices:
What is the total flow (loads per week) between department Y and department Z?
A.130
B.150
C.180
D.230
E.280
20) The term ‘sensitivity analysis” is most closely associated with:
A.maximax.
B.maximin.
C.decision making under risk.
D.minimax regret.
E.Laplace criterion.
21) Suppose operation X feeds directly into operation Y. All of X’s output goes to Y, and
Y has no other operations feeding into it. X has a design capacity of 80 units per hour
and an effective capacity of 72 units per hour. Y has a design capacity of 100 units per
hour. What is Y’s maximum possible utilization?
A.80 percent
B.72 percent
C.90 percent
D.70 percent
E.60 percent
22) Which of the following is not typically considered a cure for poor competitiveness?
A.Remove communications barriers within organizations.
B.Minimize attention to the operations function.
C.Put less emphasis on short-term financial results.
D.Recognize labor as a valuable asset and act to develop it.
E.Improve quality.
23) Which of the following are advantages of PERT?
(I) It is visual.
(II) It is automatically updated.
(III) Activities that need to be watched closely can be identified.
A.I and II
B.II and III
C.III only
D.I and III
E.I, II, and III
24) If there is a good chance that one or a few employees could wind up in monotonous
jobs, job __________ can be a good idea.
A.alteration
B.expansion
C.enrichment
D.enlargement
E.rotation
25) The term that refers to the automatic detection of defects is:
A.kaizen.
B.kanban.
C.autonomation.
D.automation.
E.100 percent inspection.
26) Range charts and p-charts are both used for variable data.
27) Prepare a crashing plan for the following project that will reduce the project
duration by three weeks.
28) Given the following work sampling data, based upon 100 random observations of a
particular worker:
For a confidence level of 86.64 percent, what is the maximum error of the estimate for
activity A?
29) Given the following data for a make-or-buy decision:
What would be your cost savings for the preferred alternative, for 32,000 units per year,
compared to the other alternative?
30) Given the following data for a particular inventory item:
For the economic order quantity, what is the reorder point?
31) Given the following process layout data for locating four departments (A, B, C, and
D) in four areas (1, 2, 3, and 4):
What is the total flow between departments B and D?
32) Shipments of bowling balls are sampled before delivery to a warehouse. Lots of 600
balls are checked, using 10 observations from each lot. Any lot with more than one
defective is rejected. Calculate values for the operating characteristic curve for this
sampling plan.
33) Given the information below, assign the departments A through I to locations in a 3
x 3 grid, with department E fixed in the lower right-hand corner.
34) Given the following line balance data:
What is the maximum possible cycle time?
35) How many observations would be required in a time study in order to obtain 95
percent confidence that the average time observed was no more than 0.6 minutes from
the true mean, assuming a standard deviation of cycle time of 1.8 minutes?