1) The first step in developing location alternatives is identifying important factors.
2) Predetermined time standards use historical data from a company’s own files.
3) An idle percentage of zero means a line is perfectly balanced.
4) The owner of a greenhouse and nursery is considering whether to spend $6,000 to
acquire the licensing rights to grow a new variety of rosebush, which she could then sell
for $6 each. Per-unit variable cost would be $3. What would the profit be if she were to
produce and sell 5,000 rosebushes?
A.$0
B.$9,000
C.$15,000
D.$10,000
E.$30,000
5) Consider the following work breakdown structure:
What is the probability that the critical path for this project will be completed within
200 days?
A.0.8413
B.0.9544
C.0.9772
D.0.9974
E.0.9987
6) Sampling plans typically specify:
A.lot size.
B.sample size.
C.number of samples to be taken.
D.acceptance/rejection criteria.
E.all choices are correct.
7) Which technique is used in computing seasonal relatives?
A.double smoothing
B.Delphi
C.mean squared error
D.centered moving average
E.exponential smoothing
8) 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 normal time for this task if the employee worked at a 25 percent faster pace
than average?
A.80 seconds
B.96 seconds
C.100 seconds
D.120 seconds
E.125 seconds
9) The quality manager for Microelectronics, Inc., is concerned about the quality of the
batch of several thousand Z-box games which his company is about to ship. If he uses
an acceptance sampling plan of n = 20 and c = 1, what will be the average outgoing
quality for batches with 15 percent defectives?
A..0263
B..1237
C..1756
D..8244
E..9737
10) Job X, which has a duration of four days, is due by the close of business on Friday,
December 23. Without looking at the work already at X’s required resource, the
scheduler schedules X to be begun immediately and assumes that X will be done four
days from now. This is an example of:
A.infinite scheduling.
B.finite scheduling.
C.forward scheduling.
D.backward scheduling.
E.prioritization.
11) Sensitivity analysis is required because:
A.payoffs and probabilities are estimates.
B.most decisions will affect employees.
C.expected payoffs are sensitive to the time value of money.
D.it is the second step in the decision model.
E.with the passage of time, small decisions get bigger.
12) When a decision-making scenario involves two or more departments, if the
individual departments pursue what is optimal for them, sometimes the overall
organization suffers. This is an example of:
A.subminimization.
B.suboptimization.
C.rational boundaries.
D.decision making under risk.
E.decision making under uncertainty.
13) Management behaviors supporting an organizational culture that encourages
continuous improvement include which of the following?
(I) Develop a vision statement for the organization.
(II) Develop a reward system that promotes the philosophy.
(III) Institute continuous training programs.
(IV) Make decisions that adhere to the philosophy.
A.I, II, and IV
B.I, II, III, and IV
C.I and III
D.II, III, and IV
E.II and IV
14) Which of the following is not a key step toward improving productivity?
A.developing productivity measures for all operations
B.improving the bottleneck operations
C.establishing reasonable goals for improvement
D.considering incentives to reward workers
E.converting bond debt to stock ownership
15) A job had an observed cycle time of four minutes, a performance rating of 80
percent, and an allowance factor that was 20 percent of job time. Normal time for the
job in minutes is:
A.3.20.
B.3.84.
C.4.00.
D.4.80.
E.5.00.
16) The advantages of automation include:
(I) reduced output variability.
(II) reduced variable costs.
(III) machines don’t strike or file grievances.
(IV) machines are always less expensive than human labor.
A.I and IV
B.II and III
C.I, II, and III
D.I and III
E.II and IV
17) 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.
What is the maximum profit?
A.$0
B.$30,000
C.$42,000
D.$45,000
E.$54,000