1) When the item is offered for resale, shortage costs in the single-period model can
include a charge for loss of customer goodwill.
2) “Balance delay” is another name for the percentage of idle time in a process layout.
3) A schedule chart can be used to monitor job progress.
4) The two main concerns of inventory control relate to the costs and the level of
customer service.
5) In market research, a group of consumers who express their opinions about a product
or service is called a steering committee.
6) MRP is used within most MRP II and ERP systems.
7) Setup time and its associated cost can often be reduced by the use of group
technology.
8) Advanced communications has aided globalization.
9) The quality manager for Frozen Pizzas, Inc., is concerned about the quality of the lot
of several thousand pizzas which his company produced this week, and is now ready to
ship. If the cost of replacing a defective pizza once it has been shipped is $5.00, while
the cost of complete (100 percent) inspection prior to shipment is $.30 per pizza, what
is the point of indifference between complete inspection and shipment without
inspection?
A.1.67 percent defectives
B.3 percent defectives
C.5 percent defectives
D.6 percent defectives
E.16.7 percent defectives
10) In a linear programming problem involving maximization, at least one constraint
must be of the __________ type.
A.greater than or equal
B.integer
C.binary
D.less than or equal
E.surplus
11) A job has an 80 percent learning curve. The second unit required 12 hours to
complete. Approximately how many hours will be devoted to the first five units
(including those already completed)?
A.26
B.36
C.46
D.56
E.66
12) The goal of queuing analysis is to minimize:
A.the sum of customer waiting costs and capacity costs.
B.the sum of customer waiting time and service time.
C.capacity costs.
D.customer waiting time.
E.idle servers.
13) Knowledge about challenges specific to the operations function can help marketing
personnel to judge how _____________ new product designs will be.
A.marketable
B.segmentable
C.manufacturable
D.measurable
E.nameable
14) In a supermarket, a vendor’s restocking the shelves every Monday morning is an
example of:
A.safety stock replenishment.
B.economic order quantities.
C.reorder points.
D.fixed order intervals.
E.blanket ordering.
15) The responsibilities of the operations manager are:
A.planning, organizing, staffing, procuring, and reviewing.
B.planning, organizing, staffing, directing, and controlling.
C.forecasting, designing, planning, organizing, and controlling.
D.forecasting, designing, operating, procuring, and reviewing.
E.designing and operating.
16) Eva, the owner of Eva’s Second Time Around Wedding Dresses, currently has five
dresses to be altered, shown in the order in which they arrived:
If Eva uses the shortest processing time first (SPT) priority rule to schedule these jobs,
what will be the average completion time?
A.3 hours
B.5 hours
C.7 hours
D.7.2 hours
E.8 hours
17) The quality manager for Graphics, Inc., is concerned about the quality of the lot of
several thousand posters which her company printed this week and is now preparing to
ship. If she uses an acceptance sampling plan of n = 10 and c = 2, what will be the
average outgoing quality for lots with 20 percent defectives?
A..13556
B..20000
C..23630
D..58434
E..32484
18) 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 A be scheduled?
A.first
B.second
C.third
D.fourth
E.fifth
19) When we use less of a resource than was available, in linear programming that
resource would be called non-__________.
A.binding
B.feasible
C.reduced cost
D.linear
E.enumerated
20) A Virginia county is considering whether to pay $50,000 per year to lease a prisoner
transfer facility in a prime location near Washington, D.C. They estimate it will cost
$50 per prisoner to process the paperwork at this new location. The county is paid a $75
commission for each new prisoner they process. If their holding area at this new
location has design and effective capacities of 10,000 and 7,500 prisoners processed
annually, respectively, and they plan to be 80 percent efficient in their use of this space,
how many prisoners does the county plan to process per year?
A.5,000
B.8,000
C.2,000
D.4,000
E.6,000
21) The owner of a greenhouse and nursery is considering whether to spend $6,000 to
acquire the licensing rights to grow a new variety of rosebush, which she could then sell
for $6 each. Per-unit variable cost would be $3. If her available land has design and
effective capacities of 3,000 and 2,000 rosebushes per year, respectively, and she
expects to be 80 percent efficient in her use of this land, how many rosebushes does
Rose plan to grow each year on this land?
A.1,600
B.2,400
C.3,000
D.2,000
E.1,000
22) Aggregate planning for services is more difficult than aggregate planning for
manufacturing because __________ and __________ are more difficult to predict.
A.capacity availability; customer tastes
B.holding costs; overtime costs
C.demand; capacity availability
D.capacity change costs; holding costs
E.hiring costs; holding costs
23) ERP’s primary value comes from applications:
A.deployment.
B.development.
C.interfaces.
D.integration.
E.networking.
24) A quality analyst wants to construct a control chart for determining whether three
machines, all producing the same product, are under control with regard to a particular
quality variable. Accordingly, he sampled four units of output from each machine, with
the following results:
What is the sample mean for machine #1?
A.15
B.16
C.17
D.21
E.23
25) The Corner Newsstand has demand for a certain weekly magazine that can be
approximated by a Poisson distribution with a mean of 9.0. Magazines are purchased
for $1.50. If unsold copies can be returned for half credit and copies sell for $4.25 each,
find the optimal stocking level.
26) Consider the following information about sites A, B, and C:
For the preferred site for 20,000 units per year, what would be your total costs?
27) Consider the following information about sites A, B, and C:
For what quantity would you be indifferent between selecting site B or site C?
28) Eight instances of a worker doing a task were observed as follows:
What is the observed time for this task?
29) A company produces two products (A and B) using three resources (I, II, and III).
Each product A requires 1 unit of resource I and 3 units of resource II and has a profit of
$1. Each product B requires 2 units of resource I, 3 units of resource II, and 4 units of
resource III and has a profit of $3. Resource I is constrained to 40 units maximum per
day; resource II, 90 units; and resource III, 60 units.
Is the production combination 10 A’s and 10 B’s feasible?