In which of the following has LP been applied successfully?
A) minimizing distance traveled by school buses carrying children
B) minimizing 911 response time for police patrols
C) minimizing labor costs for bank tellers while maintaining service levels
D) determining the distribution system for multiple warehouses to multiple destinations
E) all of the above
A concert hall, employing both ticket takers and ushers to seat patrons, behaves
typically as a
A) multi-channel, single phase system
B) multi-channel, multi-phase system
C) single channel, single phase system
D) single channel, multi-phase system
E) none of the above
In mass service and service factory quadrants of the service process matrix, the
operations manager could focus on all of the following except
A) automation
B) standardization
C) tight quality control
D) removing some services
E) customization
Among the following choices, an operations manager might best evaluate political risk
of a country by looking at which type of country ranking?
A) based on competitiveness
B) based on cost of doing business
C) based on corruption
D) based on magnitude of government social programs
E) based on average duration between presidential/prime minister elections
Which of the following is among the eight determinants of revenue and volume for a
service firm?
A) uniqueness of the firm’s and the competitor’s locations
B) quality of the competition
C) quality of management
D) purchasing power of the customer-drawing area
E) all of the above
Conventional MRP uses time buckets that do not recognize capacity limits, and in fact
ignores capacity issues. A more realistic scheduling system that includes work center
capacities and other resource availabilities is
A) aggregate planning
B) the master production schedule
C) finite capacity scheduling
D) the assignment method
E) level material use
Which of the following statements about time-series forecasting is true?
A) It is based on the assumption that future demand will be the same as past demand.
B) It makes extensive use of the data collected in the qualitative approach.
C) It is based on the assumption that the analysis of past demand helps predict future
demand.
D) Because it accounts for trends, cycles, and seasonal patterns, it is always more
powerful than associative forecasting.
E) All of the above are true.
An organization is considering three process configuration options. There are two
different intermittent processes, as well as a repetitive focus. The smaller intermittent
process has fixed costs of $3,000 per month, and variable costs of $10 per unit. The
larger intermittent process has fixed costs of $12,000 per month and variable costs of $2
per unit. A repetitive focus plant has fixed costs of $50,000 and variable costs of $1 per
unit.
a. If the company produced 20,000 units, what would be its cost under each of the three
choices?
b. Which process offers the lowest cost to produce 40,000 units? What is that cost?
The components, their description, and the quantity of each required to make one unit
of a product are documented on
A) a group technology listing
B) a route sheet
C) a bill of material
D) an engineering drawing
E) none of the above
Which of the following is not one of McDonald’s ‘seven major innovations”?
A) the Happy Meal
B) drive-through windows
C) breakfast menus
D) play areas
E) “Made by You” kitchen system
Building high-morale organizations and building communication networks that include
employees are both elements of
A) ISO 9000 certification
B) Six Sigma certification
C) employee empowerment
D) Taguchi methods
E) the tools of TQM
The philosophy of zero defects is
A) the result of Deming’s research
B) unrealistic
C) prohibitively costly
D) an ultimate goal; in practice, 1 to 2% defects is acceptable
E) consistent with the commitment to continuous improvement
Provide examples of non-monetary incentives.
Industrial firms choose locations that minimize cost, but service firms look for locations
with good demographics and traffic count because these variables are indicators of good
__________.
Two methods of conducting sensitivity analysis on solved linear programming problems
are __________ and __________.
A distribution of service times at a waiting line shows that service takes 6 minutes 40
percent of the time, 7 minutes 30 percent of the time, 8 minutes 20 percent of the time,
and 9 minutes 10 percent of the time. Prepare the probability distribution, the
cumulative probability distribution, and the random number intervals for this problem.
__________ are a way of allowing a segment of the master schedule to be designated as
“not to be rescheduled.”
A toy manufacturer makes stuffed kittens and puppies which have relatively lifelike
motions. There are three different mechanisms which can be installed in these “pets.”
These toys will sell for the same price regardless of the mechanism installed, but each
mechanism has its own variable cost and setup cost. Profit, therefore, is dependent upon
the choice of mechanism and upon the level of demand. The manufacturer has in hand a
forecast of demand that suggests a 0.2 probability of light demand, a 0.45 probability of
moderate demand, and a probability of 0.35 of heavy demand. Payoffs for each
mechanism-demand combination appear in the table below.
Construct the appropriate decision tree to analyze this problem. Use standard symbols
for the tree. Analyze the tree to select the optimal decision for the manufacturer.
