1) Activities not on the critical path have a slack time equal to zero.
2) An inventory buffer adds value and lowers cost in all supply chains.
3) The fixed-order-interval model requires a continuous monitoring of inventory levels.
4) Acceptance sampling is applied to batches of items during the production process.
5) Splitting a large lot after one operation beyond a bottleneck operation would reduce
the overall waiting time of the bottleneck operation.
6) A double-sampling plan requires a second sample of exactly twice the size of the first
sample.
7) Deming stresses that workers are primarily responsible for poor quality because very
often they fail to follow instructions.
8) The need for supply chain management increases as globalization increases.
9) Expected monetary value gives the long-run average payoff if a large number of
identical decisions could be made.
10) Increasing capacity just before a bottleneck operation will improve the output of the
process.
11) Breakdown maintenance includes activities such as equipment inspection and
adjustment.
12) Aggregate planning is used to establish general levels of employment, output, and
inventories over an intermediate range of time.
13) The feasible solution space only contains points that satisfy all constraints.
14) A hierarchical (vertical) listing of what must be done during a project is called
matrix.
15) Which closeness rating reflects the undesirability of having two departments
located near each other?
A.A
B.E
C.I
D.U
E.X
16) Under lot-for-lot, order sizes for component parts are essentially determined
directly from which one of the following?
A.gross requirements
B.net requirements
C.economic order quantity
D.gross requirements and net requirements
E.net requirements and amount on hand
17) Which of the following is the case where capacity is measured in terms of inputs?
A.steel mill
B.electrical power plant
C.restaurant
D.petroleum refinery
E.airline
18) The activity which begins with a request from within the organization is:
A.outsourcing search.
B.purchasing cycle.
C.supplier selection.
D.order receipt.
E.supply chain management.
19) Waygate’s residential Internet modem works well but is sensitive to power-line
fluctuations. On average, this product hangs up and needs resetting every 200 hours. On
average about 45 minutes is needed to reset this product. What is this product’s
availability?
A.not in excess of .75
B.in excess of .75 but not in excess of .8
C.in excess of .8 but not in excess of .9
D.in excess of .9 but not in excess of .95
E.in excess of .95
20) A tool that depicts process variation graphically is a(n):
A.affinity diagram.
B.checklist.
C.control chart.
D.flowchart.
E.relationship diagram.
21) Which of the following would reduce perceived waiting times most dramatically in
a doctor’s office?
A.putting all clocks out of sight
B.removing couches
C.having the patient fill out forms
D.implementing a “no-cell-phone” policy
E.keeping expected waiting times from the patients
22) A customer growing frustrated with the wait and leaving the facility (without being
served) is an example of:
A.reneging.
B.utilizing.
C.balking.
D.jockeying.
E.departing.
23) Which of the following would make decision trees an especially attractive
decision-making tool?
A.The need to think through a possible sequence of decisions.
B.The need to maximize the expected value of perfect information.
C.The need to minimize expected regret.
D.The need to avoid suboptimization.
E.The need to minimize costs.
24) Which of the following is part of the purchasing cycle?
(I) Purchasing selects a supplier.
(II) Orders from vendors are received.
(III) Purchasing receives a requisition.
A.II and III
B.I, II, and III
C.I only
D.I and II
E.I and III
25) Two professors at a nearby university want to coauthor a new textbook in either
economics or statistics. They feel that if they write an economics book, they have a 50
percent chance of placing it with a major publisher, and it should ultimately sell about
40,000 copies. If they cannot get a major publisher to take it, then they feel they have
an 80 percent chance of placing it with a smaller publisher, with ultimate sales of
30,000 copies. On the other hand, if they write a statistics book, they feel they have a 40
percent chance of placing it with a major publisher, and it should result in ultimate sales
of about 50,000 copies. If they cannot get a major publisher to take it, they feel they
have a 50 percent chance of placing it with a smaller publisher, with ultimate sales of
35,000 copies.
What is the expected value for the optimum decision alternative?
A.50,000 copies
B.40,000 copies
C.32,000 copies
D.30,500 copies
E.10,500 copies
26) Given forecast errors of 5, 0, -4, and 3, what is the bias?
A.-4
B.4
C.5
D.12
E.6
27) The methods analysis chart which describes the movements of both hands at the
same time is a:
A.flow process chart.
B.worker-machine chart.
C.gang process chart.
D.simultaneous-motion chart.
E.time/efficiency chart.
28) 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 is the percentage of idle time for the balance which uses the minimum number of
stations?
29) Joe’s Coffee Shoppe has fresh doughnuts delivered each morning. Daily demand for
plain doughnuts is approximately normal, with a mean of 200 and a standard deviation
of 15. Joe pays $1.20 per dozen and has a standing order for 16 dozen. Joe and the staff
eat any leftovers. What is the implied shortage cost?
30) Given the following process control data for a quality attribute (three samples of
size 400 each):
If the process is known to produce 11 percent defectives on average, what is the mean
of the sampling distribution of sample proportions for whenever this process is under
control? The standard deviation?
31) Given the following information on scores of three location alternatives, which
alternative would you recommend? Why?
32) A local bagel shop produces two products: bagels (B) and croissants (C). Each bagel
requires 6 ounces of flour, 1 gram of yeast, and 2 tablespoons of sugar. A croissant
requires 3 ounces of flour, 1 gram of yeast, and 4 tablespoons of sugar. The company
has 6,600 ounces of flour, 1,400 grams of yeast, and 4,800 tablespoons of sugar
available for today’s production run. Bagel profits are 20 cents each, and croissant
profits are 30 cents each. What is the sugar constraint (in tablespoons)?