1) Because courtesy is subjective, it cannot be considered a factor in service quality.
2) Product layouts involve high utilization of labor and equipment.
3) One therblig is the equivalent of one hour of sustained work by one average person.
4) The causes of variation in any process can be identified through the general
categories of people, procedures, education, and age.
5) The probability of occurrence of risk events is lower near the beginning of a project
and higher near the end of the project since very few activities remain.
6) Among decision environments, risk implies that certain parameters have probabilistic
outcomes.
7) Lot-for-lot ordering in MRP eliminates the holding costs for parts that are carried
over to other periods.
8) The owner of Darkest Tans Unlimited in a local mall is forecasting this month’s
(October’s) demand for the one new tanning booth based on the following historical
data:
What is this month’s forecast using a four-month weighted moving average with
weights of .4, .3, .2, and .1?
A.120
B.129
C.141
D.135
E.140
9) 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 plans
to grow 1,200 rosebushes each year on this land, what will be the utilization of this
land?
A.0 percent
B.40 percent
C.60 percent
D.67 percent
E.100 percent
10) For a company with a product mix of 40 percent of product A and 30 percent each
of products B and C, which of the following mixed-model sequences best reflects the
lean philosophy?
A.AABBCCAABC
B.ABCABCABCA
C.AAAABBBCCC
D.BCABCABCAB
E.BBBAACCCAA
11) A single-phase queuing system is one which has a single:
A.channel.
B.server.
C.customer being served.
D.operation.
E.waiting line.
12) Which of the following is not an approach for decision making under uncertainty?
A.decision trees
B.maximin
C.maximax
D.minimax regret
E.Laplace
13) The construction manager for Acme Construction, Inc., must decide whether to
build single-family homes, apartments, or condominiums. He estimates annual profits
(in $000) will vary with the population trend as follows:
If he feels the chances of declining, stable, and growing population trends are 40
percent, 50 percent, and 10 percent, respectively, what is his expected value of perfect
information?
A.$187,000
B.$132,000
C.$123,000
D.$65,000
E.$55,000
14) The substitution of machinery that has sensing and control devices for human labor
is best described by the term:
A.automation.
B.feedback control.
C.computer-aided manufacturing.
D.computer-integrated manufacturing.
E.flexible manufacturing system.
15) One disadvantage of appointment systems is:
A.Capacity can be adjusted by varying hours.
B.The customer’s desired time may be already taken.
C.People generally accept it as fair.
D.It can reduce customer waiting time.
E.Appointments do not have to be all the same length.
16) Which of these items would be most likely to be made with a fixed-position layout?
A.a Boeing 777 jet aircraft
B.applesauce
C.a computer chip
D.toothpaste
E.all of these
17) The operations manager for a well-drilling company must recommend whether to
build a new facility, expand his existing one, or do nothing. He estimates that long-run
profits (in $000) will vary with the amount of precipitation (rainfall) as follows:
If he uses the Laplace criterion, which alternative will he decide to select?
A.do nothing
B.expand
C.build new
D.either do nothing or expand
E.either expand or build new
18) Consider the following work breakdown structure:
What is the probability that the critical path for this project will be completed within 52
weeks?
A.0.1554
B.0.3108
C.0.3466
D.0.6554
E.0.8277
19) One of the biggest ethical risks in supply chain management is that the __________
supply chain member tends to be the one that suffers the blame and/or lost goodwill
when something goes wrong.
A.most responsible
B.buying
C.most visible
D.supplying
E.most ethical
20) The total cost curve:
A.starts at zero and increases as service capacity increases.
B.begins high and decreases as service capacity increases.
C.starts high, declines, then increases again.
D.remains relatively flat regardless of service capacity.
E.starts at zero, increases rapidly, then declines slowly back to zero.
21) Which of the following is not a type of judgmental forecasting?
A.executive opinions
B.sales force opinions
C.consumer surveys
D.the Delphi method
E.time series analysis
22) One area to which aggregate planning decisions relate is:
A.job sequencing
B.customer order quantities
C.inventory levels
D.location
E.layout
23) A machine is expected to use approximately three spare parts during its useful life.
The spares cost $200 each and have no salvage value or other use. The manager has
ordered five spares. Assuming a Poisson usage rate, what range of shortage cost is
implied?
Ce = $200
Mean = 3 (Poisson)
Cs = ?
24) Consider the following information:
What is the anticipated utilization?
25) Consider the following decision scenario:
If somehow you find out for certain that state of nature 4 is going to occur, which
alternative will you select?
26) Given the following acceptance sampling data for a lot of several thousand units of
a finished good:
Per-unit cost of replacing a defective unit after it has been shipped is $5.00
Per-unit cost of 100 percent inspection prior to shipment is $.60.
What is the point of indifference between 100 percent inspection and shipment without
inspection?
27) Consider the following work breakdown structure:
What are the estimated slack times (in weeks) for activities A-H?