1) Forecasts of future demand are used by operations people to plan capacity.
2) A control chart is a visual representation of the various states in a process.
3) National productivity is determined by averaging the productivity measures of
various companies or industries.
4) In MRP, EOQ models tend to be less useful for materials at the lowest levels than for
upper-level assemblies of the bill of materials since higher-level assemblies have larger
dollar investments.
5) In the EOQ formula, holding costs under 10 percent are expressed as percentages,
above 10 percent are expressed as annual unit costs.
6) Improving efficiency will guarantee a similar improvement in productivity.
7) Remanufacturing refers to removing some of the components of old products and
reusing them in new products.
8) Master schedulers are employed primarily by service organizations.
9) Acceptance sampling is most useful when the cost consequences of passing
defectives are low.
10) Acceptance sampling procedures are applicable for inspection both before and after
production.
11) The shorter the forecast period, the more accurately the forecasts tend to track what
actually happens.
12) Right-sized equipment tends to be larger than equipment used in traditional process
layouts.
13) For a system that has a low utilization ratio, decreasing service capacity slightly
will have only negligible effect on customer waiting time.
14) In a pull system, a quantity of inventory in front of a workstation indicates
problems at that workstation.
15) Value stream mapping is a technique focused on finding new ways of adding value
for critical stakeholders such as customers.
16) There are four resources and four jobs to be done. The time required for each
resource to do each job is as follows:
What is the optimal assignment of resources to jobs?
A.1 to A; 2 to C; 3 to B; 4 to D
B.1 to B; 2 to D; 3 to C; 4 to A
C.1 to C; 2 to B; 3 to A; 4 to D
D.1 to D; 2 to B; 3 to C; 4 to A
E.1 to A; 2 to C; 3 to D; 4 to B
17) The materials manager for a billiard ball maker must periodically place orders for
resin, one of the raw materials used in producing billiard balls. She knows that
manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per
day to carry a kilogram of resin in inventory. She also knows that the order costs for
resin are $100 per order, and that the lead time for delivery is four days. At what point
should resin be reordered?
A.0 kilograms remaining
B.50 kilograms remaining
C.200 kilograms remaining
D.400 kilograms remaining
E.500 kilograms remaining
18) In the single-period model, if excess cost is double the shortage cost, the
approximate stockout risk, assuming an optimum service level, is ___ percent.
A.100
B.67
C.50
D.33
E.5
19) A multiple-channel queuing system with a Poisson arrival rate and exponential
service time has an average arrival rate of four customers per hour and an average
service time of 18 minutes per customer. The minimum number of servers required to
avoid an overloaded system is:
A.1
B.2
C.3
D.4
E.5
20) A decision tree is:
A.an algebraic representation of alternatives.
B.a behavioral representation of alternatives.
C.a matrix representation of alternatives.
D.a schematic representation of alternatives.
E.limited to a maximum of 12 branches.
21) The time between failures for an electrical appliance is exponentially distributed
with a mean of 25 months. What is the probability that the next failure will not occur
before 30 months have elapsed?
A.not in excess of .2
B.in excess of .2 but not in excess of .3
C.in excess of .3 but not in excess of .4
D.in excess of .4 but not in excess of .6
E.in excess of .6
22) The owner/operator of the local franchise of Handyman, Inc., has four jobs to do
today, shown in the order they were received:
If he uses the earliest due date first priority rule to schedule these jobs, what will be the
average job tardiness?
A.0 hours
B.1.5 hours
C.1.75 hours
D.2 hours
E.2.25 hours
23) Using the information in the table, determine the following:
(A) Processing sequence using (1) SPT and (2) EDD rules
(B) Average completion time and average job tardiness under each rule
24) As a piece of equipment begins to break down more often, the manager is often
faced with a trade-off in which __________ are weighed against the __________.
A.failure rates; maintenance probabilities
B.maintenance intervals; maintenance programs
C.operating costs; variable costs
D.replacement costs; continued maintenance costs
E.fixed costs; maintenance costs
25) A factor that makes it desirable for business organizations to actively manage their
supply chains is:
A.more potential vendors.
B.increasing globalization.
C.downsizing.
D.the Internet.
E.RFIDs.