A project manager bases his time and labor estimates on a learning curve of 86%. The
actual learning curve turns out to be 89%. The manager, because of the decreased
learning, will complete his project in more time and with more labor use.
A naive forecast for September sales of a product would be equal to the sales in August.
The quarterly “make meeting” of Lexus dealers is an example of a sales force
composite forecast.
The acceptable quality level (AQL) is the average level of quality we are willing to
accept.
A redundant part decreases reliability if the reliability of the redundant part is lower
than that of the part it is backing up.
The expected monetary value of a decision alternative is the sum of all possible payoffs
from the alternative, each weighted by the probability of that payoff occurring.
The logarithmic approach to learning curve calculations allows us to determine the
hours required for any unit.
The outcome of an alternative/state of nature combination is a(n)
A) price
B) conditional value
C) expected value
D) conditional probability
E) All of the above are correct.
A large discount store and supermarket has a hair styling salon on its premises. The
salon has several operators. Salon customers can shop in other parts of the store until
their name is called for salon service, at which time the customer will be served by the
next available stylist. This scenario provides an example of a
A) multi-channel, limited queue length
B) single-channel, multi-phase, limited queue length
C) multi-channel, unlimited queue length
D) multiple single-channel systems, limited queue length
E) single-channel, unlimited queue length
Operations managers must be able to anticipate changes in which of the following?
A) product mix
B) product opportunities
C) the products themselves
D) product volume
E) all of the above
Which of the following is not a disadvantage to simulation?
A) Time compression
B) Expensive, can take months to develop
C) Trial and error approach
D) All input must be user generated
E) All of these are disadvantages to simulation
The term maquiladora is most synonymous with
A) free trade zones in Mexico
B) Chinese forced labor camps
C) home-based or cottage industry
D) areas that do not meet U.S. standards for workplace safety and pollution
E) none of the above
Boeing’s new 787 Dreamliner
A) is assembled in Washington, D.C.
B) uses engines from Japan
C) has its fuselage sections built in Australia
D) has increased efficiency from new engine technology
E) results from a partnership of about a dozen companies
The short-term scheduling activity called loading
A) assigns dates to specific jobs or operations steps
B) specifies the order in which jobs should be done at each center
C) assigns jobs to work centers
D) assigns workers to jobs
E) assigns workers to machines
The construction manager for Acme Construction, Inc. must decide whether to build
single family homes, apartments, or condominiums. This is not a product-mix problem,
but an all-or nothing decision. He will hire workers and rent equipment appropriate for
one action only. He estimates annual profits (in thousands of dollars) will vary with
population trends as follows:
a. If he uses the maximin criterion, which type of dwellings will he choose to build?
Show your supporting calculations.
b. If he uses the equally likely criterion, which kind of dwellings will he choose to
build? Show your supporting calculations.
c. If the construction manager were an optimist, what criterion would he choose? What
would be the choice of dwelling for that criterion? Show your supporting calculations.
Which of the following statements regarding aggregate planning is true?
A) In a pure level strategy, production rates or work force levels are adjusted to match
demand requirements over the planning horizon.
B) A pure level strategy allows lower inventories when compared to pure chase and
hybrid strategies.
C) In a mixed strategy, there are changes in both inventory and in work force and
production rate over the planning horizon.
D) Because service firms have no inventory, the pure chase strategy does not apply.
E) All of the above are true.
A maximizing linear programming problem with constraints C1, C2, and C3 has been
solved. The dual values associated with the problem are C1 = $2, C2 = $0.50, and C3 =
$0. Which statement below is false?
A) One more unit of the resource in C1 would add $2 to the objective function value.
B) One more unit of the resource in C2 would add one more unit each of X and Y.
C) The resource in C3 has not been used up
D) The resources in C1 and in C2, but not in C3, are scarce.
E) All of the above are true.
Define slack.
A contractor builds large ships for the Department of Defense. A recent contract called
for 12 amphibious landing platforms. It was originally estimated that the first of these
would cost $1 billion and that 80 percent learning would be appropriate. In fact, the first
ship cost $1.6 billion and the second $1.12 billion. What is the revised learning rate?
What will be the total cost of the twelve ships? Is it higher or lower than the original
estimates? If the defense department cuts the contract from 12 ships to 9, what happens
to the average cost per ship?
Identify some mathematical approaches to aggregate planning. Which are optimizing?
Which are heuristic?
Identify the inventory tactics appropriate for a JIT environment.
Your firm has expertise with a special type of hand-finished furniture. The learning rate
is known to be 82%. If the first piece of furniture took 6 hours, how long will it take to
do the second? How long will it take to do the fourth?
A transportation problem that has more units supplied than demanded will require a(n)
__________ to balance the problem.
Is there an optimal amount of preventive maintenance? What caution should be
exercised before calculating this optimal amount?
Miles is considering buying a new pickup truck for his lawn service firm. The economy
in town seems to be growing, and he is wondering whether he should opt for a
subcompact, compact, or full-size pickup truck. The smaller truck would have better
fuel economy, but would sacrifice capacity and some durability. A friend at the Bureau
of Economic Research told him that there is a 30% chance of lower gas prices in his
area this year, a 20% chance of higher gas prices, and a 50% chance that gas prices will
stay roughly unchanged. Based on this information, Miles has developed a decision
table that indicates the profit amount he would end up with after a year for each
combination of truck and gas prices. Develop a decision tree for this situation and
indicate which type of truck he should select.
__________ is any deviation from the optimum process that delivers perfect product on
time, every time.
If a design can be produced to requirements even when the production process has
unfavorable conditions, the design is said to be __________.