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1) Statistical process control is the measurement of rejects in the final product.
2) Forecasts based on time-series (historical) data are referred to as associative
forecasts.
3) Specialization is one of the sources of disagreement between the efficiency and
behavioral approaches to job design.
4) Operations managers, who usually use quantitative approaches, are not really
concerned with ethical decision making.
5) According to the reading on restaurant sourcing practices, only fast-food restaurants
are able to bring in outsourced foods.
6) In supply chain organizations, functions must operate independently of each other.
7) Design for production takes into account the capabilities of the organization to
produce or deliver a given product or service.
8) Strategy includes both organizational and functional strategies.
9) The term loading, as used in scheduling, refers to choosing the order in which jobs
will be processed in low-volume systems.
10) Returned goods are part of reverse logistics.
11) A quality analyst wants to construct a control chart for determining whether four
machines, all producing the same product, are under control with regard to a particular
quality attribute. Accordingly, she inspected 1,000 units of output from each machine in
random samples, with the following results:
For upper and lower control limits of .026 and .014, which machine(s), if any, appear(s)
to be out-of-control for process proportion of defectives?
A.machine #3
B.machine #4
C.machines #3 and #4
D.machines #2 and #3
E.none of the machines
12) _______ variation is a variation whose cause can be identified.
A.Assignable
B.Controllable
C.Random
D.Statistical
E.Theoretical
13) Testing how a problem solution reacts to changes in one or more of the model
parameters is called:
A.simulation.
B.sensitivity analysis.
C.priority recognition.
D.analysis of variance.
14) The introduction of quantity discounts will cause the optimum order quantity to be:
A.smaller.
B.unchanged.
C.greater.
D.smaller or unchanged.
E.unchanged or greater.
15) A job has an 80 percent learning curve. If the first unit took 40 hours to complete,
the fourth unit should take roughly how many hours?
A.20
B.25
C.31
D.35
E.40
16) The operations manager for a local bus company wants to decide whether he should
purchase a small, medium, or large new bus for his company. He estimates that the
annual profits (in $000) will vary depending upon whether passenger demand is low,
medium, or high, as follows:
If he feels the chances of low, medium, and high demand are 30 percent, 30 percent,
and 40 percent respectively, what is his expected value of perfect information?
A.$15,000
B.$61,000
C.$69,000
D.$72,000
E.$87,000
17) The management of supply chain inventories focuses on:
A.internal inventories.
B.external inventories.
C.both internal and external inventories.
D.safety stock elimination.
E.optimizing reorder points.
18) 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 the least squares trend line for these data?
A.18,750
B.19,500
C.21,000
D.22,650
E.22,800
19) Scheduling in service systems may involve scheduling:
(I) the workforce.
(II) the equipment.
(III) customers.
A.II only
B.I and II only
C.II and III only
D.I and III only
E.I, II, and III
20) 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:
If she uses the minimax regret criterion, which advertising strategy will she use?
A.print
B.mixed
C.television
D.either print or mixed
E.either mixed or television
21) Professor Very Busy needs to allocate time next week to include time for office
hours. He needs to forecast the number of students who will seek appointments. He has
gathered the following data:
What is this week's forecast using exponential smoothing with alpha = .2, if the forecast
for two weeks ago was 90?
A.49
B.50
C.52
D.65
E.77
