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1) Flexible acceptance sampling revises the sampling plan in response to actual results.
2) Decentralized purchasing can usually offer quicker response than centralized
purchasing.
3) Global positioning systems (GPS) use the center of gravity method to establish
starting grid coordinates.
4) If we have never made the first unit but only think we know how much the labor
time will be, we cannot draw a learning curve.
5) In e-commerce, the front-end design is significantly more important than the
back-end design.
6) Elton Mayo's Hawthorne experiments were the focal point of the human relations
movement, which emphasized the importance of the human element in job design.
7) ROP models indicate to managers the time between orders.
8) The goal of line balancing is to assign tasks to workstations in such a way that the
workstations have approximately equal time requirements.
9) Approving the effort that occurs during the production process is known as
acceptance sampling.
10) Profit margins tend to be inversely related to inventory turns.
11) Which of the following does not contribute to reduced setup time and cost?
A.standardized setup tools
B.standardized setup equipment
C.custom setup procedures for each product
D.use of multipurpose equipment or attachments
E.use of group technology
12) The president of a consulting firm wants to minimize the total number of hours it
will take to complete four projects for a new client. Accordingly, she has estimated the
time it should take for each of her top consultantsCharlie, Betty, Johnny, and Rickto
complete any of the four projects, as follows:
After the row and column reductions, what is the reduced time for assigning Rick to
project D?
A.0 hours
B.8 hours
C.10 hours
D.9 hours
E.22 hours
13) The more __________ a task, the less likely it is that a substantial learning curve
will be in effect.
A.strategic
B.capital intensive
C.routine
D.tactical
E.unusual
14) Which of the following smoothing constants would make an exponential smoothing
forecast equivalent to a naive forecast?
A.0
B..01
C..1
D..5
E.1.0
15) Which of the following is typically the largest of all inventory costs?
A.shortage cost
B.purchase cost
C.holding cost
D.ordering cost
E.pipeline cost
16) Managing the supply chain has become more important as a result of firms
increasing their levels of:
A.overtime.
B.outsourcing.
C.marketing.
D.promotions.
E.shipping.
17) A sequence of activities that leads from the starting node to the finishing node is
called a:
A.path.
B.sequel.
C.trail.
D.critical sequence.
E.time line.
18) Given an actual demand of 59, a previous forecast of 64, and an alpha of .3, what
would the forecast for the next period be using simple exponential smoothing?
A.36.9
B.57.5
C.60.5
D.62.5
E.65.5
19) 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:
What are the control chart upper and lower control limits for an alpha risk of .05?
A..0272 and .0128
B..0287 and .0113
C..029 and .013
D..0303 and .0097
E..0332 and .0068
20) Mobile phones have evolved from devices intended to place and receive phone calls
into handheld multimedia communications devices, but in the eyes of some customers
these new features make the phones less desirable. This is an example of:
A.robust design.
B.creeping featurism.
C.sustainable design.
D.quality function deployment.
E.component commonality.
21) In an MRP master schedule, the planning horizon is often separated into a series of
time periods called:
A.pegging.
B.lead times.
C.stacked lead times.
D.time buckets.
E.firm, fixed, and frozen.
22) The process of comparing outputs to previously established standards to determine
if corrective action is needed is called:
A.planning.
B.directing.
C.controlling.
D.budgeting.
E.disciplining.
23) 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:
What is the estimate of the process proportion of defectives for whenever it is under
control?
A..08
B..06
C..04
D..02
E..01
24) Which of the following is not a reason for redesigning a product or service?
A.to reduce labor or material cost
B.to increase the level of employee satisfaction
C.to increase the level of customer satisfaction
D.to attract and increase customer demand
E.to increase quality
25) 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 uses the minimax regret criterion, which alternative will he decide to select?
A.do nothing
B.expand
C.build new
D.either do nothing or expand
E.either expand or build new
26) Inspection is a(n):
A.prevention.
B.control.
C.monitoring.
D.corrective.
E. appraisal
27) A hardware distributor has regional warehouses at the locations shown below. The
company wants to locate a new central distribution center to serve this warehouse
network.
Weekly shipments to each warehouse will be: WH1, 100; WH2, 150; WH3, 120; WH4,
150; and WH5, 120. What is the optimal location of the distribution center?
A.5.1, 4.2
B.5.2, 4.0
C.5.1, 5.1
D.4.2, 5.1
E.4.9, 5.2
28) 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 the least squares trend line for these data?
A.49
B.50
C.52
D.65
E.78
29) Given the following data, construct a material requirements plan which will result
in 100 units of Parent 1 (P1) at the beginning of week 6, and 200 units of Parent 2 (P2)
at the beginning of week 8:
30) A stent for use in coronary surgery requires a special coating. Specifications for this
coating call for it to be at least 0.05 millimeters but no more than 0.15 millimeters. If,
when the coating process is in control, the long-run average is 0.09 millimeters, what
metric would be used to assess this process's capability?
31) Given the projected demands for the next six months, prepare an aggregate plan that
uses inventory, regular time and overtime, and back orders. The plan must wind up with
no units in ending inventory in period 6. Regular time capacity is 150 units per month.
Overtime capacity is 20 units per month. Overtime cost is $30 per unit, back order cost
is $20 per unit, inventory holding cost is $5 per unit, regular time cost is $20 per unit,
and beginning inventory is zero.
32) There are three jobs to be done and three resources with which to do them. Each
resource will take a specific time to do each job, as shown in the following table:
Can an optimum assignment be made after the row and column reductions?
33) Suppose we have a lot of several thousand units of a finished good. For an
acceptance sampling plan with n = 20 and c = 2, what will be the average outgoing
quality for lots with 5 percent defectives? 10 percent? 15 percent? 20 percent?
34) Given the data below, develop a forecast for period 6 using a four-period weighted
moving average and weights of .4, .3, .2 and .1.
35) A production system uses kanban cards to control production and movement of
parts. One work center uses an average of 40 pieces per hour of a certain part. Standard
containers hold 10 parts. The cycle time for parts containers is about 36 minutes.
Management has assigned an efficiency factor of .20 to this work center. How many
containers should be used to support this operation?
36) Given the following process layout data for locating four departments (A, B, C, and
D) in four areas (1, 2, 3, and 4):
If department C must be located in area 1, what layout will minimize the total distance
loads will be moved each month?
37) Develop a forecast for the next period, given the data below, using a three-period
moving average.
38) Eight instances of a worker doing a task were observed as follows:
How many observations would be needed to be 99.74 percent confident that the
maximum error is 5 percent of the observed time? Assume that the standard deviation
of the task time is two seconds.
