1) Most likely time generally is more than optimistic time.
2) Sampling plans are designed considering both the cost and time required for the
inspection.
3) When considering service quality, convenience often is a major factor.
4) The ability of an acceptance sampling plan to discriminate between good and bad
lots is described by its operating characteristic curve.
5) Safety stock eliminates all stockouts.
6) MRP, considering inventory position, bills of material, open purchase orders, and
lead times guarantees a feasible production plan if the inputs to MRP are accurate.
7) The term range of feasibility refers to coefficients of the objective function.
8) The learning curve principle would apply to a baseball pitcher learning to throw a
curveball.
9) MAD is equal to the square root of MSE, which is why we calculate the easier MSE
and then calculate the more difficult MAD.
10) Once a project is approved and underway, project managers are only responsible for
effectively managing time and costs which, if done well, will assure project completion
on time and on budget.
11) Gatekeeping manages the cost of shipping returned goods.
12) One disadvantage to RFID is that it requires a clear “line of sight” to operate.
13) Among Ford’s many contributions was the introduction of mass production, using
the concepts of interchangeable parts and division of labor.
14) Doctor J. is considering purchasing a new blood analysis machine to test for HIV; it
will cost $60,000. He estimates that he could charge $25.00 for an office visit to have a
patient’s blood analyzed, while the actual cost of a blood analysis would be $5.00. What
would be his profit if he were to perform 5,000 HIV blood analyses?
A.$0
B.$40,000
C.$60,000
D.$25,000
E.$100,000
15) Given forecast errors of 5, 0, -4, and 3, what is the mean absolute deviation?
A.4
B.3
C.2.5
D.2
E.1
16) Which of the following is not an input to the aggregate planning process?
A.resources available
B.demand forecast
C.policies on workforce changes
D.master production schedules
E.cost information
17) Location options do not usually include:
A.expansion.
B.a contract.
C.adding new facilities.
D.moving.
E.doing nothing.
18) The owner of Tastee Cookies needs to decide whether to lease a small, medium, or
large new retail outlet. She estimates that monthly profits will vary with demand for her
cookies as follows:
For what range of probability that demand will be high, will she decide to lease the
medium facility?
A.0-.25
B.0-.33
C..25-.5
D..33-1
E..5-1
19) During the early morning hours, customers arrive at a branch post office at an
average rate of 45 per hour (Poisson), while clerks can handle transactions in an
average time (exponential) of four minutes each. Find:
(A) the average number of customers waiting for service if six clerks are used.
(B) the minimum number of clerks needed to keep the average time in the system to
under five minutes.
(C) If clerk cost is $30 per hour and customer waiting time represents a “cost” of $20
per hour, how many clerks can be justified on a cost basis?
20) In addition to operations, which of the following is considered a “line” function?
A.accounting
B.finance
C.IT
D.procurement
E.sales
21) An alternative strategy to increase the capacity of a service system is:
A.reducing the number of arrivals.
B.increasing variability.
C.increasing the processing rate.
D.reducing the number of servers.
E.reducing the processing rate.
22) Which of the following steps is necessary to ensure that a master schedule is valid?
A.worker scheduling
B.order promising
C.inventory counting
D.order booking
E.rough-cut capacity planning
23) A restaurant that implements a limited menu and a “no substitutions” policy during
peak dining hours is practicing _____________ with respect to waiting-line
management.
A.demand shifting
B.queuing psychology
C.service standardization
D.service phasing
E.outsourcing