1) Traffic management refers to truck movement within our parking areas.
2) Kanban focuses on specific part numbers; CONWIP does not.
3) Strategic partnering is encouraged when two or more business organizations have
complementary products or services that would benefit the others.
4) In a double-sampling plan, a second sample is taken if the results of the first sample
are inconclusive.
5) High-cost, low-volume items often require careful inspection since we make them so
infrequently.
6) Learning curves are used primarily for mass production applications.
7) Intermittent processing can take the form of batch processing or a job shop.
8) Delayed differentiation is a means of increasing product variety without building the
customized product from scratch or keeping large inventories of custom products.
9) Decoupling operations applies to the railroad industry.
10) Which one of the following measures of system performance is a key measure with
respect to customer satisfaction?
A.average number of customers waiting in line
B.system utilization
C.average number of customers in the calling population
D.probability of a server being busy
E.capacity costs per hour
11) Average completion (flow) time for a schedule sequence at a work center is:
A.the sum of processing time divided by the number of jobs.
B.the sum of jobs’ flow times divided by the number of jobs.
C.overall flow time divided by total processing time.
D.total processing time plus total late time divided by number of jobs.
E.the sum of flow time plus total late time divided by number of jobs.
12) When a location evaluation includes both quantitative and qualitative inputs, a
technique that can be used is:
A.linear programming.
B.consumer surveys.
C.factor rating.
D.transportation models.
E.center of gravity methods.
13) Which of the following would tend to decrease forecast accuracy?
A.a reduction in demand variability
B.a shortening of the forecast time horizon
C.an attempt to forecast demand for a group of similar items rather than an individual
item
D.a change in the underlying causal system
Forecasting techniques generally assume that the same underlying causal system that
existed in the past will continue to exist in the future.
14) Customer service levels can be improved by better:
A.mission statements.
B.control charting.
C.short-term forecast accuracy.
D.exponential smoothing.
E.customer selection.
15) The optimum level of inspection is where the:
A.cost of inspection is minimum.
B.cost of passing defectives is minimum.
C.total cost of inspection and defectives is maximum.
D.total cost of inspection and defectives is minimum.
E.difference between inspection and defectives costs is minimum.
16) The logistics/operations manager of a mail order house purchases two products for
resale: king beds (K) and queen beds (Q). Each king bed costs $500 and requires 100
cubic feet of storage space, and each queen bed costs $300 and requires 90 cubic feet of
storage space. The manager has $75,000 to invest in beds this week, and her warehouse
has 18,000 cubic feet available for storage. Profit for each king bed is $300 and for each
queen bed is $150.
For the purchase combination 0 king beds and 200 queen beds, which resource is slack
(not fully used)?
A.investment money (only)
B.storage space (only)
C.both investment money and storage space
D.neither investment money nor storage space
E.cannot be determined exactly
17) The advertising manager for Roadside Restaurants, Inc., needs to decide whether to
spend this month’s budget for advertising on print media, television, or a mixture of the
two. She estimates that the cost per thousand “hits” (readers or viewers) will vary
depending upon the success of the new cable television network she plans to use, as
follows:
For what range of probability that the new cable network will be successful will she
select the mixed media strategy?
A.0-.4
B.0-.55
C..4-.7
D..55-1
E..7-1
18) Which one of the following would not be considered a decision option for purposes
of aggregate planning?
A.inventory levels
B.manpower levels
C.pricing
D.production costs
E.promotion
19) A quality improvement technique that involves the sharing of thoughts and ideas in
a way that encourages unrestrained collective thinking is:
A.Pareto analysis.
B.benchmarking.
C.brainstorming.
D.a control chart.
E.a check sheet.
20) The research and development activity which starts after positive research results
are available and attempts to turn these results into useful commercial applications is:
A.basic research.
B.applied research.
C.development.
D.redesign.
E.commercial research.
21) Asking a group of employees at a particular level to take on more responsibility is a
form of ___________ loading, also known as job __________.
A.horizontal; enlargement
B.horizontal; rotation
C.vertical; rotation
D.vertical; enrichment
E.horizontal; enrichment
22) A company is preparing a bid on a government contract for 40 units of a certain
product. The operations manager estimates the assembly time required for the first two
units to be 10.4 hours and 8.8 hours respectively.
What is the appropriate learning curve?
A.70 percent
B.75 percent
C.80 percent
D.85 percent
E.90 percent
23) That portion of projected inventory which enables marketing to make realistic
commitments about delivery dates for new orders is:
A.beginning inventory.
B.safety stock inventory.
C.available-to-promise inventory.
D.high-margin inventory.
E.master production schedule arrivals.
24) A project has the activities and activity times (days) listed below. Determine the
probability that the project will require more than 15 days from start to finish.
25) 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:
What is the throughput time for the optimum schedule?
26) Given the following process layout data for locating six departments in the six areas
shown:
What process layout(s) satisfy(ies) these closeness ratings?
27) The average time before breakdown of a machine is normally distributed and has a
mean of seven weeks and a standard deviation of 1.5 weeks. If breakdown cost
averages $2,500 and preventive maintenance costs $500, what is the optimal preventive
maintenance interval?
28) Data on the last three years of demand are available as follows:
What is this year’s seasonally adjusted forecast for each season?
29) A process that makes chocolate candy bars has an output that is normally distributed
with a mean of 6 ounces and a standard deviation of .01 ounces. A job is to be run that
requires 200 candy bars. Determine the three-sigma control limits for an x-bar chart,
assuming a sample size of 10.
If specifications are 5.98 to 6.02, what run size should be used for this job so that the
expected number of good candy bars is 200, assuming the process is in control?
30) Consider the following work breakdown structure:
What is the critical path for this project network?
31) Given the following work sampling data, based upon 100 random observations of a
particular worker:
What is the estimated proportion of time this worker spends performing activity A?
32) Consider the following decision scenario:
If you are uncertain which state of nature will occur, and use the maximin criterion,
which alternative will you select?
33) Consider the following information about sites A, B, and C:
For what quantity would you be indifferent between selecting site A or site B?