1) The process of dismantling and inspecting a competitor’s product to discover
improvements is called reverse engineering.
2) The value of an objective function decreases as it is moved away from the origin.
3) Aggregate planners commonly use trial-and-error methods in developing aggregate
plans.
4) Robust design describes a product that will perform satisfactorily so long as it is used
in a very narrow range of conditions.
5) Lean systems often use layouts that are based on group technology product
requirements.
6) Using third-party fulfillment means losing control of fulfillment.
7) The variation of a sampling distribution is tighter than the variation of the underlying
process distribution.
8) Heuristic approaches to line balancing are the only approach that will guarantee an
optimal solution.
9) Preventive maintenance will eliminate the need to carry supplies of spare parts.
10) Vendor analysis is the process that evaluates the source of supply in terms of price,
quality, reputation, and service.
11) Customer expectations tend to change over time, affecting their perception of
service quality.
12) E-commerce involves business-to-business (B2B) interaction only.
13) In a single work center, makespan improvement can be accomplished by selecting
the optimal sequencing rule.
14) Once production is underway and the learning curve effect is occurring, successive
changes made to the production process will cause the time per unit to:
A.continue following the original learning curve without any impact.
B.cause a scallop effect.
C.increase the unit time and result in a higher percentage learning curve.
D.decrease the unit time and result in a higher percentage learning curve.
15) Warranty service, processing of complaints, and costs of litigation are examples of:
A.internal failure costs.
B.external failure costs.
C.appraisal costs.
D.prevention costs.
E.replacement costs.
16) Acceptance sampling plans might call for the selection of:
A.one or more samples.
B.a variable number of samples based on actual results.
C.random inspections.
D.outside audits by testing agencies.
E.100 percent inspection.
17) The grouping of equipment by the operations needed to perform similar work for
part families is:
A.product layout.
B.cellular manufacturing layout.
C.functional layout.
D.fixed-position layout.
E.process layout.
18) Outsourcing followed by __________ is not simple.
A.integration
B.unionization
C.backsourcing
D.computerization
E.just-in-time
19) Supplying operations with parts and materials, performing work on products, and/or
performing services are part of the firm’s:
A.division of labor.
B.market development.
C.outsourcing.
D.external process orientation.
E.internal supply chain.
20) A job is expected to have a 70 percent learning curve. The first unit has been
completed in 20 hours. Accordingly, the second unit can be expected to take
approximately how many hours?
A.6
B.9.8
C.14
D.20
E.34
21) One local hospital has just enough space and funds currently available to start either
a cancer or heart research lab. If administration decides on the cancer lab, there is a 20
percent chance of getting $100,000 in outside funding from the American Cancer
Society next year, and an 80 percent chance of getting nothing. If the cancer research
lab is funded the first year, no additional outside funding will be available the second
year. However, if it is not funded the first year, then management estimates the chances
are 50 percent it will get $100,000 the following year, and 50 percent that it will get
nothing again. If, however, the hospital’s management decides to go with the heart lab,
then there is a 50 percent chance of getting $50,000 in outside funding from the
American Heart Association the first year and a 50 percent change of getting nothing. If
the heart lab is funded the first year, management estimates a 40 percent chance of
getting another $50,000 and a 60 percent chance of getting nothing additional the
second year. If it is not funded the first year, then management estimates a 60 percent
chance for getting $50,000 and a 40 percent chance for getting nothing in the following
year. For both the cancer and heart research labs, no further possible funding is
anticipated beyond the first two years.
What is the probability that the heart lab will be funded in both the first and second
years?
A..4
B..3
C..2
D..1
E.0
22) The local operations manager for the Internal Revenue Service must decide whether
to hire one, two, or three temporary tax examiners for the upcoming tax season. She
estimates that net revenues (in thousands of dollars) will vary with how well taxpayers
comply with the new tax code just passed by Congress, as follows:
If she uses the Laplace criterion, how many new examiners will she decide to hire?
A.one
B.two
C.three
D.either one or two
E.either two or three
23) Which of the following is not characteristic of time-based compensation plans?
A.stable labor costs
B.easier to administer than output-based plans
C.stable pay for workers
D.simpler wage computations than output-based plans
E.lower cost per unit than output-based plans
24) Consider the following decision scenario:
If you feel that P(#1) = .4, P(#2) = .3, P(#3) = .2, and P(#4) = .1, which alternative will
you select?
25) Which of the following is not a criterion for developing capacity alternatives?
A.design structured, rigid systems
B.take a big-picture approach to capacity changes
C.prepare to deal with capacity in “chunks”
D.attempt to smooth out capacity requirements
E.identify the optimal operating level
26) A methods and measurement analyst wants to develop a time standard for a certain
task. In a preliminary study, he observed one worker perform the task six times with an
average observed time of 20 seconds and a standard deviation of two seconds.
What is the normal time for this task if the employee worked at a 20 percent faster pace
than average?
A.4 seconds
B.16.7 seconds
C.20 seconds
D.24 seconds
E.100 seconds
27) When MRP II systems include feedback, they are known as:
A.MRP III.
B.enterprise resource planning.
C.circular MRP.
D.feasible MRP.
E.closed loop MRP.
28) Years ago in the overnight delivery business, providing package tracking capability
gave some firms a competitive advantage. Now, all firms must offer this capability
simply to be in this line of business. This is an example of ______________ becoming
____________ over time.
A.tactical implications; strategic
B.strategic implications; tactical
C.order winners; order qualifiers
D.profitability factors; productivity factors
E.order qualifiers; order winners
29) Activity J has a duration of 7 and an earliest finish time of 21 . If J’s latest start time
is 16, this must mean that J’s slack is:
A.7
B.4
C.3
D.2
E.1
30) Which closeness rating reflects indifference on the nearness or lack of nearness of
two departments?
A.A
B.E
C.I
D.U
E.X
31) The head of operations for a movie studio wants to determine which of two new
scripts they should select for their next major production. (Due to budgeting constraints,
only one new picture can be undertaken at this time.) She feels that script 1 has a 70
percent chance of earning about $10,000,000 over the long run, but a 30 percent chance
of losing $2,000,000. If this movie is successful, then a sequel could also be produced,
with an 80 percent chance of earning $5,000,000, but a 20 percent chance of losing
$1,000,000. On the other hand, she feels that script 2 has a 60 percent chance of earning
$12,000,000, but a 40 percent chance of losing $3,000,000. If successful, its sequel
would have a 50 percent chance of earning $8,000,000, but a 50 percent chance of
losing $4,000,000. Of course, in either case, if the original movie were a flop, then no
sequel would be produced.
What is the probability that script 1 will be a success, but its sequel will not?
A..8
B..7
C..56
D..2
E..14
32) The process of assigning tasks to workstations in such a way that the workstations
have approximately equal time requirements is called:
A.fair employment practices.
B.idle time analysis.
C.line balancing.
D.cycle time optimization.
E.capacity cycling.
33) Which of the following is present in the manufacturing scheduling hierarchy but is
absent in the service scheduling hierarchy?
A.aggregate planning
B.materials planning
C.master scheduling
D.detailed, short-term scheduling
E.detailed, short-term planning
34) An analyst has gathered data and counted the number of runs with respect to the
median. There were 60 observations and 22 runs. What can the analyst conclude given
this information?
35) A bakery’s use of corn sweetener is normally distributed with a mean of 80 gallons
per day and a standard deviation of four gallons per day. Lead time for delivery of the
corn sweetener is normal, with a mean of six days and a standard deviation of two days.
If the manager wants a service level of 99 percent, what reorder point should be used?
36) Given the following information, develop a material requirements plan that will
lead to 400 units of product P being available at the beginning of week 7.
37) Given the following line balance data:
For eight hours of operating time per day and a desired output rate of 960 units per day,
what balance (if any) will yield the minimum number of stations?
38) A work sampling study is needed that will estimate the percentage of time a postal
clerk spends selling stamps as opposed to other duties. Determine the necessary sample
size to estimate that proportion with a confidence of 99.74 percent to within 3 percent,
for these cases:
(1) No information is currently available concerning that proportion.
(2) The proportion is probably no more than 15 percent.