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1) Profit maximization, like cost minimization, could be an objective of an LP problem,
but neither would be an actual decision variable.
2) If a point on a control chart falls outside one of the control limits, this suggests that
the process output is nonrandom and should be investigated.
3) Graphical linear programming can handle problems that involve any number of
decision variables.
4) The demand for a product and the rate of technological change have a significant
impact on the length of a given phase of the product life cycle.
5) In the lean philosophy, producing more than two order quantities represents waste.
6) Makespan is the total time needed to complete a group of jobs.
7) In the broadest sense, preventive maintenance extends back to the installation stage
of equipment and facilities.
8) Waiting lines occur even in underloaded systems because of variability in service
rates and/or arrival rates.
9) The basic EOQ model ignores the purchasing cost.
10) In an infinite-source model, the system utilization is the ratio of the arrival rate to
the service capacity.
11) The hierarchy and sequence of planning and decision making is: mission,
organizational strategy, tactics, and operational decisions.
12) The expression "quality at the source" refers primarily to the practice of requiring
each of our vendors to provide quality parts and materials.
13) For new products in a strong growth mode, a low alpha will minimize forecast
errors when using exponential smoothing techniques.
14) Which of the following is not a benefit of RFID?
A.increased productivity
B.elimination of paperwork
C.frequent deliveries of smaller shipments
D.reduction in clerical labor
E.increased accuracy
15) MRP can apply to services, especially when it is focused on:
(I) work-in-process inventory.
(II) finished goods inventory.
(III) service components.
(IV) materials that are part of the service process.
A.II and IV only
B.I and III only
C.I, II, and IV only
D.I, III, and IV only
E.III and IV only
16) Which of the following does not relate to system design?
A.altering the system capacity
B.location of facilities
C.inventory management
D.selection and acquisition of equipment
E.physical arrangement of departments
17) The owner of Crackers, Inc., produces two kinds of crackers: Deluxe (D) and
Classic (C). She has a limited amount of the three ingredients used to produce these
crackers available for her next production run: 4,800 ounces of sugar; 9,600 ounces of
flour, and 2,000 ounces of salt. A box of Deluxe crackers requires 2 ounces of sugar, 6
ounces of flour, and 1 ounce of salt to produce; while a box of Classic crackers requires
3 ounces of sugar, 8 ounces of flour, and 2 ounces of salt. Profits for a box of Deluxe
crackers are $.40; and for a box of Classic crackers, $.50. What are profits for the
optimal production combination?
A.$800
B.$500
C.$640
D.$620
E.$600
18) Which of the following is not characteristic of preventive maintenance in lean
systems?
A.maintaining equipment in good operating condition
B.replacing parts when they are worn but before they fail
C.workers maintaining their own equipment
D.eliminating supplies of spare parts to reduce capital investment
E.perceiving breakdowns as an opportunity for improvement
19) A company needs to rebalance a product layout for producing new plastic license
plates. They plan to use the assembly line six hours in order to meet projected demand
of 2,160 license plates each day. The following table describes the tasks involved in the
production of this product:
Without regard to projected demand, what is the minimum possible cycle time for this
assembly line?
A.0 seconds
B.3 seconds
C.9 seconds
D.10 seconds
E.28 seconds
20) In a linear programming problem, the objective function was specified as follows:
Z = 2A + 4B + 3C
The optimal solution calls for A to equal 4, B to equal 6, and C to equal 3 . It has also
been determined that the coefficient associated with A can range from 1.75 to 2.25
without the optimal solution changing. This range is called A's:
A.range of optimality.
B.range of feasibility.
C.shadow price.
D.slack.
E.surplus.
21) Use Johnson's rule to determine the optimum processing sequence for the jobs listed
in the following table. Chart total throughput time.
22) 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:
How many observations should be made if the analyst wants to be 99.74 percent
confident that the maximum error in the observed time is two seconds? Assume that the
standard deviation of each task time is four seconds.
A.5
B.6
C.25
D.36
E.49
23) An electronics firm produces two models of pocket calculators: the A-100 (A),
which is an inexpensive four-function calculator, and the B-200 (B), which also features
square root and percent functions. Each model uses one (the same) circuit board, of
which there are only 2,500 available for this week's production. Also, the company has
allocated a maximum of 800 hours of assembly time this week for producing these
calculators, of which the A-100 requires 15 minutes (.25 hours) each, and the B-200
requires 30 minutes (.5 hours) each to produce. The firm forecasts that it could sell a
maximum of 4,000 A-100s this week and a maximum of 1,000 B-200s. Profits for the
A-100 are $1.00 each, and profits for the B-200 are $4.00 each. What are optimal
weekly profits?
A.$10,000
B.$4,600
C.$2,500
D.$5,200
E.$6,400
24) The chair of the operations management department at Quality University wants to
construct a p-chart for determining whether the four faculty teaching the basic P/OM
course are under control with regard to the number of students who fail the course.
Accordingly, he sampled 100 final grades from last year for each instructor, with the
following results:
What is the estimate of the mean proportion of failures for these instructors?
A..10
B..11
C..13
D..16
E..40
25) A manager wants to analyze the learning curve associated with producing one of his
company's products. Accordingly, he has gathered the following data:
Approximately how long will it take to produce the 10th unit?
A.1 hour
B.2 hours
C.3 hours
D.4 hours
E.5 hours
26) 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 per meter moved. An analyst has prepared the
following distances and flow matrices:
If departments X, Y, and Z were to be located in areas I, II, and III, respectively, what
would be the total distance (in meters) loads would be moved each week?
A.4,000
B.4,500
C.7,000
D.8,000
E.9,000
27) Which of the following is not an element of TQM?
A.continuous improvement
B.competitive benchmarking
C.employee empowerment
D.team approach
E.quality management as a specialized function within the firm
28) QRS Corp. is designing a product layout for a new product. They plan to use this
production line 10 hours a day in order to meet forecasted demand of 900 units per day.
The following table describes the tasks necessary to produce this product:
Without considering forecasted demand, what is the minimum possible cycle time for
this production line?
A.10 seconds
B.20 seconds
C.34 seconds
D.38 seconds
E.152 seconds
29) The specifications for a product are 6 mm 0.1 mm. The process is known to operate
at a mean of 6.05 with a standard deviation of 0.01 mm. What is the Cpk for this
process?
A.3.33
B.1.67
C.5.00
D.2.50
E.1.33
30) Methods analysis is particularly valuable when it is used on jobs that:
(I) are high in labor content.
(II) are done frequently.
(III) involve a high degree of automation and mechanization.
(IV) are unsafe, tiring, unpleasant, and/or noisy.
A.I, II, III, and IV
B.I, II, and IV only
C.II and III only
D.II and IV only
E.I and III only
31) A manager reorders lubricant when the amount on hand reaches 422 pounds.
Average daily usage is 45 pounds, which is normally distributed with a standard
deviation of three pounds per day. Lead time is nine days. What is the risk of a
stockout?
32) 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.
Assuming that the process mean of 0.09 cannot be changed, what process standard
deviation would be required for this process to be considered capable (assuming that a
capable process must have a capability index of at least 1.3)?
33) Data on demand over the last few years are available as follows:
What would this year's forecast be if we were using the naive approach?
34) The utilization of a machine is 50 percent. The machine has a design capacity of 70
units per hour and an effective capacity of 60 units per hour. Find the efficiency of the
machine.
35) Consider the following decision scenario:
If you feel that P(#1) = .4, P(#2) = .3, P(#3) = .2, and P(#4) = .1, what is your expected
payoff under certainty?
36) Consider the following information about sites A, B, and C:
Which site would you prefer for a quantity of 20,000 units per year?
