Psychological factors have little relevance in the design of assembly line jobs since they
involve physical products and production technology.
The assembly line is a classic example of a repetitive process.
All forms of simulation are based on probability or chance.
The larger the standard error of the estimate, the more accurate the forecasting model.
A common form of the product-mix linear programming problem seeks to find that
combination of products and the quantity of each that maximizes profit in the presence
of limited resources.
The only objective of aggregate planning is to minimize the cost of matching capacity
to demand over the planning period.
Automated storage and retrieval systems are commonly used in distribution facilities of
retailers.
Forecasts of individual products tend to be more accurate than forecasts of product
families.
The work cell layout, a special arrangement of machinery and equipment to focus on
the production of a single product or group of related products, is for manufacturing
applications and has no relevance to services.
SWOT analysis is a method of determining external strengths and weaknesses and
internal opportunities and threats.
Ethical and social dilemmas arise because stakeholders of a business have conflicting
perspectives.
The layout approach that addresses trade-offs between space and material handling is
called the fixed position layout.
An example of a conditional value would be the payoff from selecting a particular
alternative when a particular state of nature occurs.
The optimal solution of a linear programming problem that consists of two variables
and six constraints will probably not satisfy all six constraints as equalities.
The effects of OM policies over many months or years can be obtained by computer
simulation in a short time. This phenomenon is referred to as
A) time suppression
B) time suspension
C) time compression
D) time inversion
E) time conversion
A Cpk index of 1.00 equates to a defect rate of
A) five percent
B) 3.4 defects per million
C) 2.7 per 1,000 items
D) 97.23 percent
E) one percent
The most common tactic followed in process-layout planning is to arrange departments
or work centers so they
A) minimize the cost of skilled labor
B) maximize the machine utilization
C) allocate the available space equally to all the departments
D) minimize the costs of material handling
E) none of the above
Natural variations
A) affect almost every production process
B) are the many sources of variation that occur when a process is under control
C) when grouped, form a pattern, or distribution
D) are tolerated, within limits, when a process is under control
E) All of the above are true.
Traffic counts and purchasing power analysis of drawing area are techniques associated
with
A) locational break-even analysis
B) a manufacturing location decision
C) a retail or professional service location decision
D) the factor rating method
E) the transportation method
A two-component process has an 81% success rate in series and a 99% success rate in
parallel. If each component has the same reliability, what is the reliability of an
individual component?
A) 50%
B) 90%
C) 99%
D) none of the above
E) unable to determine
Franz Colruyt has achieved low-cost leadership through
A) effective use of voice mail
B) plastic, not paper, shopping bags
C) background music that subtly encourages shoppers to buy more
D) converting factories, garages, and theaters into retail outlets
E) exclusive use of the Euro
What % of sales from new products is indicative of industry leaders?
A) 50%
B) below 25%
C) 25 to 35%
D) above 60%
E) 35 to 45%
The first unit of a product took 832 hours to build, and the learning curve is 75%. How
long will it take to make the 10th unit? (Use at least three decimals in the exponent if
you use the logarithmic approach.)
A) less than 250 hours
B) from 251 to 275 hours
C) from 276 to 300 hours
D) from 301 to 325 hours
E) 325 or more hours
A retailer is deciding how many of a certain product to stock. The historical probability
distribution of sales for this product is 0 units, 0.2; 1 unit, 0.3; 2 units, 0.4, and 3 units,
0.1. The product costs $8 per unit and sells for $25 per unit. The conditional value for
the decision alternative “Stock 3” and state of nature “Sell 1” is
A) 1.4 units
B) $1 profit
C) $25 profit
D) $-8 profit
E) none of the above
In the basic queuing model (M/M/1), service times are described by
A) binomial probability distributions
B) negative exponential probability distributions
C) Poisson probability distributions
D) normal probability distributions
E) lognormal distributions
When the number of shipments in a feasible solution is less than the number of rows
plus the number of columns minus one
A) the solution is optimal
B) a dummy source must be created
C) a dummy destination must be created
D) there is degeneracy, and an artificial allocation must be created
E) the closed path has a triangular shape
The typical goal used when developing a process-oriented layout strategy is to
A) minimize the distance between adjacent departments
B) minimize the material handling costs
C) maximize the number of different tasks which can be performed by an individual
machine
D) minimize the level of operator skill necessary
E) maximize job specialization
Match the following steps in Microsoft’s development of Windows 7 to their respective
WBS level.
A)
B)
C)
D)
E) None of the above patterns is correct.
Which of the following costs tend to be ignored in determining the optimal maintenance
policy?
A) expected breakdown costs
B) preventive maintenance costs
C) the costs associated with various levels of commitment to maintenance
D) cost of low morale
E) all of the above
ASQ, ISM, APICS, and PMI are important professional organizations to operations
management because
A) they provide certification for professionals
B) they allow professionals to keep up with industry developments
C) they facilitate professional networking
D) none of the above
E) all of the above
A manufacturing company is considering three expansion options. The first is to do
nothing (Option A). The next is to leave the current plant open and also open a new
larger plant (Option B). Finally they could close the existing plant and open the new,
larger one (Option C). Given the VC and FC from the table below calculate the range
for which each option minimizes cost.
An executive conference center has the physical ability to handle 1,100 participants.
However, conference management personnel believe that only 1,000 participants can be
handled effectively for most events. The last event, although forecasted to have 1,000
participants, resulted in the attendance of only 950 participants. What are the utilization
and efficiency of the conference facility?
__________ is a cost-volume analysis to make an economic comparison of location
alternatives.
Identify and describe briefly the five supply-chain strategies.
Briefly explain what ‘slotting” is. Why is slotting considered a “controversial” practice?
What ethical issues might arise with regard to slotting?
The mean and standard deviations for a process are = 90 and = 9. For the variable
control chart, a sample size of 16 will be used. Calculate the standard deviation of the
sampling distribution.
What opportunities exist for reducing the “bullwhip” effect, and improving the supply
chain?
Complete the following table in preparation for a Monte Carlo simulation. The expected
demand is 3.52.
