1) Scheduled due dates are the result of:
A.promises to customers.
B.MRP processing.
C.managerial decisions.
D.all of the choices.
E.our competitor’s promises.
2) The owner of Tastee Cookies needs to decide whether to lease a small, medium, or
large new retail outlet. She estimates that monthly profits will vary with demand for her
cookies as follows:
If she feels there is a 30 percent chance that demand will be high, what is her expected
payoff under certainty?
A.$1,600
B.$1,100
C.$1,000
D.$900
E.$500
3) Which is not a requirement for an effective self-directed team?
A.talent and skills to meet goals
B.one or more members representing supervision
C.a system of reinforcement and celebration
D.clearly stated and commonly held vision and goals
E.effective and skilled interpersonal relations
4) A company can produce a part it uses in an assembly operation at the rate of 50 an
hour. The company operates eight hours a day, 300 days a year. Daily usage of the part
is 300 parts. The company uses the part every day. The run size is 6,000 parts. The
annual holding cost is $2 per unit, and setup cost is $100.
(A) How many runs per year will there be?
(B) While production is occurring, how many parts per day are being added to
inventory?
(C) Assuming that production begins when there are no parts on hand, what is the
maximum number of parts in inventory?
(D) The machine is dedicated to this product. Every so often, preventive maintenance,
which requires six working days, must be performed on it. Does this interrupt
production cycles, or is there enough time between cycles to perform the maintenance?
Explain.
5) Allowance percentages normally would not include:
A.noise levels.
B.monotony.
C.personal phone calls.
D.weight lifted.
E.restroom allowances.
6) Suppose that for a particular piece of machinery, the frequency distribution of
monthly breakdowns is as follows:
The cost of a breakdown is $2,000, and the cost of a preventive maintenance program is
$2,000 per month. If the preventive maintenance program is adopted, the probability of
a machine breakdown is negligible. How much better off per month would the firm be
if it adopted preventive maintenance?
A.$100 worse off
B.$200 worse off
C.$100 better off
D.$200 better off
E.$2,000 better off
7) Which of the following helps improve supply chain forecasting performance?
A.contracts that require supply chain members to formulate long-term forecasts
B.penalties for supply chain members that adjust forecasts
C.sharing forecasts or demand data across the supply chain
D.increasing lead times for critical supply chain members
E.increasing the number of suppliers at critical junctures in the supply chain
8) Which of the following is not a limitation of PERT and similar project-scheduling
techniques?
A.They force the manager to organize and quantify information.
B.One or more important activities may be omitted from the network.
C.Precedence relationships may not all be correct as shown.
D.Time estimates may contain a “fudge factor.”
E.The use of a computer is essential for large projects.
9) A company needs to locate three departments (X, Y, and Z) in the three areas (I, II,
and III) of a new facility. They want to minimize interdepartmental transportation costs,
which are expected to be $.50 per load meter moved. An analyst has prepared the
following flow and distance matrices:
What is the distance (in meters) from area III to area I of this new facility?
A.0
B.10
C.20
D.30
E.40
10) Which of the following is not a goal of process improvement?
A.increasing customer satisfaction
B.reducing waste
C.achieving higher quality
D.identifying the cause of a problem
E.All are the goals
11) Which of the following changes would tend to shorten the time frame for short-term
forecasting?
A.bringing greater variety into the product mix
B.increasing the flexibility of the production system
C.ordering fewer weather-sensitive items
D.adding more special-purpose equipment
E.investing in the production system to make it more task-specific
12) The region which satisfies all of the constraints in graphical linear programming is
called the:
A.optimum solution space.
B.region of optimality.
C.lower left hand quadrant.
D.region of non-negativity.
E.feasible solution space.
13) Which is not a true assumption in the EOQ model?
A.Production rate is constant.
B.Lead time does not vary.
C.No more than three items are involved.
D.Usage rate is constant.
E.No quantity discounts.
14) The key questions in the process selection task are:
(I) How will the product/service be priced?
(II) How much variety will be imposed on the process?
(III) What is the target market for the product/service?
(IV) At what volume will the process need to operate?
A.I and III
B.II and IV
C.II and III
D.I and IV
E.III and IV
15) If one organization is better able than most to respond to changes in demands or
opportunities, we say that organization exhibits higher:
A.sustainability.
B.efficiency.
C.productivity.
D.agility.
E.marketability.
16) Products or services with a high degree of similarity of features and components are
called:
A.generic.
B.copy-cat.
C.rip-offs.
D.product families.
E.product/service matrix.
17) In a two-bin inventory system, the amount contained in the second bin is equal to
the:
A.ROP.
B.EOQ.
C.amount in the first bin.
D.optimum stocking level.
E.safety stock.