1) The maximin approach involves choosing the alternative with the highest payoff.
2) Net requirements equal gross requirements minus safety stock.
3) A dental office with two professionals (one dentist, one hygienist) who work together
as a team would be an example of a multiple-channel system.
4) A job-shop processing system generally requires less-skilled workers than a
continuous processing system.
5) The purpose of acceptance sampling is to decide whether a batch of items satisfies
pre-determined standards.
6) Starting with the final customer and moving backward through the supply chain,
batch sizes and the level of safety stock tend to decrease.
7) Compared to a single-channel system with exponential service time, a single-channel
system with a constant service time causes a reduction of 50 percent in the average
number waiting in line.
8) The master schedule indicates the quantity and timing for delivery of a product, but
not the dates production will need to start.
9) Forecasts help managers both to plan the system itself and to provide valuable
information for using the system.
10) The two basic issues in inventory are how much to order and when to order.
11) Lean systems typically require that suppliers be able to provide large lots at periodic
intervals.
12) Research and development (R&D) refers to organized efforts that are directed
toward increasing scientific knowledge and product (or process) innovation.
13) Time-series techniques involve the identification of explanatory variables that can
be used to predict future demand.
14) The operations manager for the Blue Moon Brewing Co. produces two beers: Lite
(L) and Dark (D). Two of his resources are constrained: production time, which is
limited to 8 hours (480 minutes) per day; and malt extract (one of his ingredients), of
which he can get only 675 gallons each day. To produce a keg of Lite beer requires 2
minutes of time and 5 gallons of malt extract, while each keg of Dark beer needs 4
minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg,
and profits for Dark beer are $2.00 per keg.
For the production combination of 135 Lite and 0 Dark, which resource is slack (not
fully used)?
A.time (only)
B.malt extract (only)
C.both time and malt extract
D.neither time nor malt extract
E.cannot be determined exactly
15) A basic requirement for operating with the low inventories present in lean systems
is:
A.Inventory space must be increased.
B.Inventory investment must be increased.
C.Major problems must be identified.
D.Major problems must have been solved.
E.Inventories must be reduced rapidly.
16) A market constraint can be overcome by:
A.lobbying.
B.cash flow management.
C.outsourcing.
D.advertising or price changes.
E.supplier development.
17) In a transportation problem with three locations and two destinations, the objective
function is as follows: Min 20X11 + 18X21 + 23X31 + 16X12 + 14X22 + 12X32. How
much does it cost to ship one unit from location 2 to destination 1?
A.18
B.12
C.23
D.16
E.none of the choices
18) Which of these factors would not be subtracted from design capacity when
calculating effective capacity?
A.personal time
B.equipment maintenance
C.scheduling problems
D.changing the mix of products
E.all of the choices
19) In the area of maintenance, the Pareto phenomenon is reflected in the fact that:
A.all equipment justifies about the same expense.
B.a majority of equipment will justify considerable expense.
C.a few pieces of equipment will justify little expense.
D.a few pieces of equipment will justify considerable expense.
E.no piece of equipment will justify major expense; it’s better to replace.
20) Backflushing takes place:
A.when inventory records need updating.
B.after some bills of material have been found to be inaccurate.
C.after production has been completed.
D.when customer orders are being reconciled.
E.when previous periods’ planned releases are converted to scheduled receipts.
21) Which of the following statements should not characterize an operations strategy
toward the design of work systems?
A.Manufacturing technology is the heart of a business.
B.Workers can make or break a business.
C.Workers can be a valuable source of insights.
D.A spirit of cooperation can contribute to success.
E.Workers can be proud and respected.
22) Aggregate planning in the case of a high-volume product output business such as a
restaurant is directed toward:
A.smoothing the service rate.
B.reducing the size of the workforce.
C.making the kitchen and waitstaff more flexible.
D.coming up with a fixed staffing level.
E.making weekly work schedules more stable.
23) For the data given below, what would the naive forecast be for period 5?
A.58
B.62
C.59.5
D.61
E.cannot tell from the data given
24) The method of financial analysis which focuses on the length of time it takes to
recover the initial cost of an investment is:
A.payback.
B.net present value.
C.internal rate of return.
D.queuing.
E.cost-volume.
25) The operations manager of a body and paint shop has five cars to schedule for
repair. He would like to minimize the throughput time to complete all work on these
cars. Each car requires body work prior to painting. The estimates of the times required
to do the body paint work on each are as follows:
Where in the optimum sequence should car E be scheduled?
A.first
B.second
C.third
D.fourth
E.fifth
26) The operations manager for the Blue Moon Brewing Co. produces two beers: Lite
(L) and Dark (D). Two of his resources are constrained: production time, which is
limited to 8 hours (480 minutes) per day; and malt extract (one of his ingredients), of
which he can get only 675 gallons each day. To produce a keg of Lite beer requires 2
minutes of time and 5 gallons of malt extract, while each keg of Dark beer needs 4
minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg,
and profits for Dark beer are $2.00 per keg. What is the objective function?
A.$2L + $3D = Z
B.$2L + $4D = Z
C.$3L + $2D = Z
D.$4L + $2D = Z
E.$5L + $3D = Z
27) The logistics/operations manager of a mail order house purchases two products for
resale: king beds (K) and queen beds (Q). Each king bed costs $500 and requires 100
cubic feet of storage space, and each queen bed costs $300 and requires 90 cubic feet of
storage space. The manager has $75,000 to invest in beds this week, and her warehouse
has 18,000 cubic feet available for storage. Profit for each king bed is $300 and for each
queen bed is $150.
Which of the following is not a feasible purchase combination?
A.0 king beds and 0 queen beds
B.0 king beds and 250 queen beds
C.150 king beds and 0 queen beds
D.90 king beds and 100 queen beds
E.0 king beds and 200 queen beds
28) The website and order fulfillment are essential features of:
A.delayed differentiation.
B.e-commerce.
C.Internet service providers.
D.inventory balancing.
E.market segmentation.
29) Where a firm locates would typically not affect that firm’s:
A.costs.
B.convenience for customers.
C.delivery times.
D.strategy.
E.transportation costs.
30) The more effective and all-encompassing a firm’s quality control and continuous
improvement efforts, the less that company will need to rely on:
A.insourcing.
B.inspection.
C.outsourcing.
D.acceptance sampling.
E.capability assessment.
31) One step that is not part of service blueprinting is:
A.Eliminate boundaries for the service and decide on the level of interaction needed.
B.Identify and determine the sequence of customer and service actions and interactions.
C.Develop time estimates for each phase of the process.
D.Understand the time variability involved.
E.Identify potential failure points and develop a plan to minimize them.