1) A shadow price indicates how much a one-unit decrease/increase in the
right-hand-side value of a constraint will decrease/increase the optimal value of the
objective function.
2) Flow-shop scheduling is used in high-volume systems.
3) In order to compute seasonal relatives, the trend of past data must be computed or
known, which means that for brand-new products this approach cannot be used.
4) Fast and simple are two common threads that run through the four building blocks of
lean operations.
5) The most commonly used queuing models assume that the arrival rate can be
described by a Poisson distribution.
6) After the first period of the planning horizon, available-to-promise is computed only
for those periods in which there is an MPS quantity.
7) The fact that most types of firms are located in every section of the country suggests
that in many cases, location decisions are not overly important; one location typically is
as good as another.
8) In which of the following scenarios would an 80 percent learning curve be especially
relevant?
A.the pursuit of an innovation strategy to stay ahead of competitors
B.the pursuit of a flexibility-based strategy to increase customer satisfaction
C.the pursuit of a customization-based strategy to command premium prices
D.the pursuit of a time-based strategy to gain market share
E.the pursuit of a quality-based strategy to gain customer loyalty
9) The dean of a school of business is forecasting total student enrollment for this year’s
summer session classes based on the following historical data:
What is this year’s forecast using the least squares trend line for these data?
A.3,600
B.3,500
C.3,400
D.3,300
E.3,200
10) Outsourcing some production is a means of _________ a capacity constraint.
A.identifying
B.modifying
C.supporting
D.overcoming
E.repeating
11) The purchasing perspective of the supplier as a partner is characterized by:
A.an emphasis on low prices.
B.one or a few suppliers.
C.low flexibility.
D.100 percent inspection for quality.
E.low volume.
12) Which of the following is not a primary concern for process selection?
A.variety in products/services
B.flexibility of equipment
C.volume of output
D.pricing strategy
E.changeover costs
13) Which of the following is characteristic of the lean philosophy?
A.Inventories are an asset.
B.Lot sizes are optimized by formula.
C.Vendors are coworkers, essentially other departments of our organization.
D.Queues are a necessary investment.
E.All of the choices.
14) Which of the following is not a process commonly considered in making products
or delivering services?
A.continuous
B.batch
C.repetitive
D.job shop
E.subcontracting
15) The difference between expected payoff under certainty and expected payoff under
risk is the expected:
A.monetary value.
B.value of perfect information.
C.net present value.
D.rate of return.
E.profit.
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. If
this new blood analysis machine has design and effective capacities of 6,000 and 5,000
blood analyses per year, respectively, and Dr. J. expects to be 80 percent efficient in his
use of this machine, how many HIV blood analyses does he plan to perform each year?
A.3,200
B.4,800
C.4,000
D.1,000
E.5,000
17) The operations manager for the Blue Moon Brewing Co. produces two beers: Lite
(L) and Dark (D). Two of his resources are constrained: production time, which is
limited to 8 hours (480 minutes) per day; and malt extract (one of his ingredients), of
which he can get only 675 gallons each day. To produce a keg of Lite beer requires 2
minutes of time and 5 gallons of malt extract, while each keg of Dark beer needs 4
minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg,
and profits for Dark beer are $2.00 per keg.
Which of the following is not a feasible production combination?
A.0 L and 0 D
B.0 L and 120 D
C.90 L and 75 D
D.135 L and 0 D
E.135 L and 120 D
18) In MRP, scheduled receipts are:
A.identical to planned-order receipts.
B.identical to planned-order releases.
C.open orders (that is, ordered before the first time bucket, but not delivered yet).
D.net requirements.
E.available-to-promise inventory.
19) The production planner for Fine Coffees, Inc., produces two coffee blends:
American (A) and British (B). Two of his resources are constrained: Columbia beans, of
which he can get at most 300 pounds (4,800 ounces) per week; and Dominican beans,
of which he can get at most 200 pounds (3,200 ounces) per week. Each pound of
American blend coffee requires 12 ounces of Colombian beans and 4 ounces of
Dominican beans, while a pound of British blend coffee uses 8 ounces of each type of
bean. Profits for the American blend are $2.00 per pound, and profits for the British
blend are $1.00 per pound. What are optimal weekly profits?
A.$0
B.$400
C.$700
D.$800
E.$900
20) A major difference between manufacturing and service systems in terms of
scheduling is:
A.variability in arrival and service rates.
B.processing cost per unit.
C.the number of units to be processed.
D.length of processing time.
E.output rate.
21) Small changes in consumer demand can result in large variations in orders placed
because of the:
A.supply chain.
B.safety stock requirement.
C.lead time effect.
D.bullwhip effect.
E.FCFS scheduling.
22) In an environment in which demand is both substantial and stable, __________
technology tends to be the best choice.
A.batch production
B.fixed automation
C.project production
D.programmable automation
E.flexible automation
23) The method of financial analysis which results in an equivalent interest rate is:
A.payback.
B.net present value.
C.internal rate of return.
D.queuing.
E.cost-volume.
24) A methods and measurements analyst for Timepiece, Inc., needs to develop a time
standard for the task of attaching a watch to a wristband. In a preliminary study, he
observed one of his workers perform this task five times, with the following results:
What is the standard time for this task if the employee worked at a 20 percent faster
pace than average, and an allowance of 20s percent of job time is used?
A.4.5 seconds
B.5 seconds
C.20 seconds
D.28.8 seconds
E.100 seconds
25) 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.
Which unit, if any, will require approximately one-half the time of the first unit?
A.18th unit
B.19th unit
C.20th unit
D.21st unit
E.22nd unit