1) Infinite loading and finite loading are two major approaches used to load work
centers.
2) A strategy that emphasizes convenience for the customers would probably select a
single very large facility.
3) Reducing consumer choices makes service more efficient.
4) E-commerce refers to the use of electronic technology to facilitate business
transactions.
5) Aggregate planners are concerned with the quality and quantity of expected demand.
6) The point that minimizes total queuing system costs is that point where waiting costs
and capacity costs are equal.
7) The advertising manager for Roadside Restaurants, Inc., needs to decide whether to
spend this month’s budget for advertising on print media, television, or a mixture of the
two. She estimates that the cost per thousand “hits” (readers or viewers) will vary
depending upon the success of the new cable television network she plans to use, as
follows:
For what range of probability that the new cable network will be successful will she
select the television media strategy?
A.0-.4
B.0-.55
C..4-.7
D..55-1
E..7-1
8) “Total productive maintenance” is best described as:
A.avoiding all breakdown maintenance.
B.doing a great deal of preventive maintenance to try to avoid breakdown maintenance.
C.a JIT approach that takes advantage of cross-training.
D.extending preventive maintenance back to design.
E.none of these.
9) Given an actual demand of 105, a forecasted value of 97, and an alpha of .4, the
simple exponential smoothing forecast for the next period would be:
A.80.8.
B.93.8.
C.100.2.
D.101.8.
E.108.2.
10) A scheduling rule used for sequencing jobs through two work centers is:
A.critical ratio rule.
B.Johnson’s rule.
C.slack per operation rule.
D.shortest processing time rule.
E.Pareto rule.
11) In project network analysis, ‘slack” refers to the difference between:
A.observed and predicted times.
B.optimistic and pessimistic times.
C.mean and modal times.
D.finish and start times.
E.latest and earliest times.
12) In the A-B-C classification system, items which account for 60 percent of the total
dollar volume for few inventory items would be classified as:
A.A items.
B.B items.
C.C items.
D.A items plus B items.
E.B items plus C items.
13) A company needs to locate three departments (X, Y, and Z) in the three areas (I, II,
and III) of a new facility. They want to minimize interdepartmental transportation costs,
which are expected to be $.50 per load meter moved. An analyst has prepared the
following flow and distance matrices:
If the company were to locate departments X, Y, and Z in areas 1, 2, and 3, respectively,
what would be the total distance (in meters) loads would be moved each week?
A.3,100
B.3,600
C.6,200
D.6,700
E.8,200
14) The advertising manager for Roadside Restaurants, Inc., needs to decide whether to
spend this month’s budget for advertising on print media, television, or a mixture of the
two. She estimates that the cost per thousand “hits” (readers or viewers) will vary
depending upon the success of the new cable television network she plans to use, as
follows:
For what range of probability that the new cable network will be successful will she
select the print media strategy?
A.0-.4
B.0-.55
C..4-.7
D..55-1
E..7-1
15) In the probabilistic approach to project network analysis, the time estimate
annotated tm for any activity is the:
A.mean time.
B.median time.
C.most likely time.
D.mode time.
E.marginal time.
16) Six sigma programs involve both __________ and __________ components.
A.probabilistic; deterministic
B.logistical; managerial
C.statistical; probabilistic
D.managerial; technical
E.local; global