1) A consumer survey is an easy and sure way to obtain accurate input from future
customers since most people enjoy participating in surveys.
2) One concern in the design of production systems is the degree of standardization.
3) The naive forecast is limited in its application to series that reflect no trend or
seasonality.
4) Using the enumeration approach, optimality is obtained by evaluating every
coordinate.
5) The majority of our textbook deals with tactical operations that support established
functional strategies.
6) A p-chart is used to monitor the fraction of defectives in the output of a process.
7) The most widely used method of work measurement is work sampling.
8) Breakdown maintenance is best performed on a regularly scheduled basis.
9) Output-based systems compensate employees according to the amount of output they
produce, thereby tying pay directly to performance.
10) Discrete stocking levels are used when an organization does not want visibility of
inventory levels.
11) At the break-even point:
A.output equals capacity.
B.total cost equals total revenue.
C.total cost equals profit.
D.variable cost equals fixed cost.
E.variable cost equals total revenue.
12) A location analysis has been narrowed down to three locations. The critical factors,
their weights, and the ratings for each location are shown below:
If the selection criterion is to be the greatest composite score, management should
choose:
A.location A
B.location B
C.location C
D.either location B or location C
E.to reject all locations.
13) Real-time information about product movement on store shelves could benefit from
the use of:
A.batch processing.
B.economic order quantities.
C.statistical process control.
D.radio frequency identification tags.
E.infrared remote scanners.
14) A method used for establishing a logical framework for identifying the required
activities for the project is called:
A.work breakdown structure.
B.PERT.
C.planning matrix.
D.crashing.
E.critical path analysis.
15) An operator collected the following time series data from a process:
(A) Determine the number of A/B runs.
(B) Determine the number of up/down runs.
16) The operations manager for a well-drilling company must recommend whether to
build a new facility, expand his existing one, or do nothing. He estimates that long-run
profits (in $000) will vary with the amount of precipitation (rainfall) as follows:
If he feels the chances of low, normal, and high precipitation are 30 percent, 20 percent,
and 50 percent respectively, what is his expected value of perfect information?
A.$140,000
B.$170,000
C.$285,000
D.$305,000
E.$475,000
17) Which phrase best describes the term “bounded rationality”?
A.thinking a problem through clearly before acting
B.taking care not to exhaust limited resources
C.the result of departmentalized decision making
D.limits imposed on decision making by costs, time, and technology
E.the use of extremely structured steps in the decision-making process
18) A methods and measurements analyst for Digital Devices needs to develop a time
standard for the task of assembling a computer mouse. In a preliminary study, she
observed one of her workers perform this task six times with the following results:
How many observations should be made if she wants to be 86.64 percent confident that
the maximum error in the observed time is .5 second? Assume that the standard
deviation of the task time is four seconds.
A.10
B.12
C.120
D.144
E.169
19) 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.
What is the expected time required to produce the 40th unit?
A.3.2 hours
B.4.4 hours
C.5.9 hours
D.3.7 hours
E.2.2 hours
20) Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets,
which must be ready for delivery at the start of week 6. An MRP planner has prepared
the following table showing product structure, lead times (orders are lot-for-lot), and
quantities on hand:
Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate
eggs; additionally one bottle of Alka-Seltzer is included for those who overindulge.
How many dark chocolate eggs should be ordered?
A.310
B.450
C.500
D.550
E.600
21) An operations strategy for process selection should recognize that:
A.process selection seldom requires technical expertise.
B.engineering “white elephants” are uncommon.
C.there is little need to manage technology.
D.flexibility is not always the best choice.
22) Which of the following refers to service and production processes that use resources
in ways that do not harm ecological systems?
A.sustainability
B.supportability
C.marketability
D.perishability
E.transportability
23) In the 1970s and early 1980s in the United States, organizations concentrated on:
A.operations strategies.
B.improving quality.
C.marketing and financial strategies.
D.revising mission statements.
E.environmental issues.
24) A project is represented by the following diagram:
The critical path for the network shown is:
A.1-3-6-7
B.1-2-4-7
C.1-4-7
D.1-3-4-7
E.1-2-5-7
25) Consider the following decision scenario:
*PV for profits ($000)
The minimax regret strategy would be:
A.small.
B.medium.
C.med.-large.
D. large.
E. ex-large.
26) Which of the following is not one of the 3 Rs?
A.reuse
B.reduce
C.reposition
D.recycle
27) A given inventory item has a per-year holding cost of $500. One method of shipping
this item is three days faster than the other, but it is $2.50 more per unit. Using the
slower method would be __________ more expensive overall than using the faster
method.
A.$1.08
B.$1.16
C.$2.37
D.$2.73
E.$1.61
28) Managers have obligations to a wide variety of stakeholders such as shareholders,
employees, and customers. When considering outsourcing production to offshore
suppliers, managers have to weigh:
(I) cost benefits that might make shareholders wealthier.
(II) quality issues that might make firms less productive and/or products riskier.
(III) the investments already tied up in relationships with existing suppliers.
A.I
B.II
C.III
D.I and II only
E.I, II, and III
29) Refer to the following data for jobs waiting to be processed at a single work center
(jobs are shown in order of arrival):
If jobs A, B, and C require two operations each, while jobs D and E require one
operation each, what is the schedule sequence using the slack per operation (S/O)
priority rule?
30) Consider the following decision scenario:
*PV for profits ($000)
The maximax strategy would be:
A.small.
B.medium.
C.med.-large.
D. large.
E. ex-large.