1) Which of the following is not a benefit of using models in decision making?
A.They provide a standardized format for analyzing a problem.
B.They serve as a consistent tool for evaluation.
C.They are easy to use and less expensive than dealing with the actual situation.
D.They force the decision maker to take into account qualitative issues such as
personalities and emotions.
E.They offer insights into fundamental issues at play in a decision-making setting.
2) Daily capacity of a product layout is determined by:
A.cycle time divided by operating time.
B.operating time divided by cycle time.
C.operating time divided by total task time.
D.total task time divided by cycle time.
E. cycle time divided by total task time.
3) The owner of Tastee Cookies needs to decide whether to lease a small, medium, or
large new retail outlet. She estimates that monthly profits will vary with demand for her
cookies as follows:
If she uses the Laplace criterion, what size outlet will she decide to lease?
A.small
B.medium
C.large
D.either small or medium
E.either medium or large
4) Two professors at a nearby university want to coauthor a new textbook in either
economics or statistics. They feel that if they write an economics book, they have a 50
percent chance of placing it with a major publisher, and it should ultimately sell about
40,000 copies. If they cannot get a major publisher to take it, then they feel they have
an 80 percent chance of placing it with a smaller publisher, with ultimate sales of
30,000 copies. On the other hand, if they write a statistics book, they feel they have a 40
percent chance of placing it with a major publisher, and it should result in ultimate sales
of about 50,000 copies. If they cannot get a major publisher to take it, they feel they
have a 50 percent chance of placing it with a smaller publisher, with ultimate sales of
35,000 copies.
What is the expected value for the decision alternative to write the economics book?
A.50,000 copies
B.40,000 copies
C.32,000 copies
D.30,500 copies
E.10,500 copies
5) The purpose of cyclical scheduling is to:
A.eliminate weekends and holidays.
B.rotate schedules.
C.add flexible hours.
D.incorporate overtime.
E.observe work patterns.
6) The typical difference between quality circles and continuous improvement teams is:
A.quality circles work on product design only.
B.continuous improvement teams work on product and process design.
C.continuous improvement teams use only engineers, while quality circles use just the
workers doing the work.
D.the amount of employee empowerment.
E.There is no differencethey are the same.
7) Which of the following is most closely associated with disaggregation?
A.subcontracting
B.master schedule
C.diversity
D.varying inventory levels
E.firing and laying off
8) Which of the following is the last step in the capacity/scheduling chain?
A.product planning
B.process planning
C.capacity planning
D.aggregate planning
E.scheduling
9) When making location decisions, nonprofit organizations differ from for-profit ones
in seeking a balance between:
A.profits and opportunities.
B.costs and revenues.
C.costs and customer service.
D.growth and stability.
E.stability and opportunity.
10) A simo chart includes:
A.delay.
B.storage.
C.transportation.
D.left/right hand movements.
E.inspection.
11) In linear programming, a nonzero reduced cost is associated with a:
A.decision variable in the solution.
B.decision variable not in the solution.
C.constraint for which there is slack.
D.constraint for which there is surplus.
E.constraint for which there is no slack or surplus.