1) For service and retail stores, a prime factor in location analysis is customer access.
2) Studies on worker efficiency and time of day suggest that the greatest efficiency is at
the end of the day when workers are “warmed up.”
3) A possible disadvantage of a product layout is an inflexible system.
4) So long as quality input resources are used to make a product, we can expect quality
output from the process.
5) In the quantity discount model, the optimum quantity will always be found on the
lowest total cost curve.
6) An organization achieves quality by consistently meeting its competitors’ standards.
7) Range control charts are used to monitor process central tendency.
8) Self-directed teams help other work groups make changes to their processes.
9) The value of perfect information is inversely related to losses predicted.
10) The gross requirements at one level of an MRP plan determine the gross
requirements at the next lower level continuing on down to the lowest levels shown on
the bill of material.
11) Factor rating is limited to quantitative information concerning location decisions.
12) A.
B.2,000.
C.500.
D.1,000.
E.800.
13) The maker of the world-famous Chocolate Chip Cookies needs to design a product
layout for a new product, Mint Chocolate Chip. The company plans to use this new
production line eight hours a day in order to meet projected demand of 1,440 cases per
day. The following table describes the tasks involved in the production of a Mint
Chocolate Chip Cookie.
For output to equal projected demand, what should be the actual cycle time for this
production line?
A.54 seconds
B.27 seconds
C.20 seconds
D.18 seconds
E.14 seconds
14) The process of identifying other organizations that are best at some facet of your
operations, and then modeling your organization after them is known as:
A.continuous improvement.
B.employee empowerment.
C.benchmarking.
D.copycatting.
E.industrial espionage.
15) Professor Very Busy needs to allocate time next week to include time for office
hours. He needs to forecast the number of students who will seek appointments. He has
gathered the following data:
What is this week’s forecast using trend-adjusted (double) smoothing with alpha = .5
and beta = .1, if the forecast for last week was 65, the forecast for two weeks ago was
75, and the trend estimate for last week’s forecast was -5?
A.49.3
B.50.6
C.51.3
D.65.4
E.78.7
16) Logistics includes all of these except:
A.the movement of materials within a production facility.
B.incoming shipments of goods or materials.
C.outgoing shipments of goods or materials.
D.customer selection.
E.returned goods processing.
17) In a single-period model, if shortage cost is four times excess cost, then the
optimum service level is ___ percent.
A.100
B.80
C.60
D.40
E.20
18) A bank of 10 machines requires regular periodic service. Machine running time and
service time are both exponential. Machines run for an average of 44 minutes between
service requirements, and service time averages six minutes per machine. If operators
cost $15 per hour in wages and fringe benefits and machine downtime costs $75 per
hour in lost production, what is the optimal number of operators for this bank of
machines?
A.1
B.2
C.3
D.4
E.5
19) The main disadvantage(s) of informal techniques used for aggregate planning
is(are):
A.they are expensive to do.
B.they may not result in the best plan.
C.they take a long time to do.
D.they require the use of a computer.
E.the lack of formal education of the planners.
20) In a service setting, the aggregate plan results in a time-phased projection of
__________ requirements.
A.customer
B.staff
C.inventory
D.subcontracting
E.outsourcing
21) Comparing known and expected capacity requirements with projected capacity
availability is the job of:
A.planned releases.
B.load reports.
C.lot sizing.
D.work loading.
E.time fencing.
22) 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. How many rosebushes would she have
to produce and sell in order to break even?
A.1,600
B.2,400
C.2,000
D.1,000
E.1,500
23) The owner of Touchdown Sports Bar wants to develop a time standard for the task
of mixing a specialty cocktail. In a preliminary study, he observed one of his bartenders
perform this task seven times with an average of 90 seconds and a standard deviation of
five seconds.
What is the standard time for this task if the bartender worked at a 20 percent faster
pace than is average, and an allowance of 20 percent of the workday is used?
A.112.5 seconds
B.120 seconds
C.135 seconds
D.144 seconds
E.150 seconds
24) The quality manager for Frozen Pizzas, Inc., is concerned about the quality of the
lot of several thousand pizzas which his company produced this week, and is now ready
to ship. If he uses an acceptance sampling plan of n = 8 and c = 1, what will be the
average outgoing quality for lots with 10 percent defectives?
A..0813
B..0962
C..1869
D..7318
E..8131
25) A concert promoter is forecasting this year’s attendance for one of his concerts
based on the following historical data:
What is this year’s forecast using the least squares trend line for these data?
A.20,000
B.21,000
C.22,000
D.23,000
E.24,000
26) There are four activities on the critical path, and they have standard deviations of 1,
2, 4, and 2 days. The standard deviation of the critical path is:
A.3
B.5
C.9
D.16
E.25
27) Job X arrived at work center Q at noon. At 2 p.m. that same day X was begun. X
left work center Q at 3:15 p.m. that same day. X’s flow time, in minutes, was:
A.195
B.120
C.75
D.60
E.Cannot be determined.
28) Exponential smoothing adds a percentage (called alpha) of the last period’s forecast
to estimate the next period’s demand.
29) A control chart used to monitor the fraction of defectives generated by a process is
the:
A.p-chart.
B.R-chart.
C.x-bar chart.
D.c-chart.
E.Gantt chart.
30) Which of the following is absolutely necessary for successful implementation and
operation of MRP?
(I) accurate inventory records
(II) accurate demand forecasts
(III) accurate holding and backordering costs
(IV) accurate bills of materials
A.I, II, and IV only
B.I, III, and IV only
C.I, II, and III only
D.I and II only
E.I, II, III, and IV
31) Given the following data for a particular inventory item:
What is the economic order quantity for this item?
32) Suppose a batch is of acceptable quality. There is a 10 percent chance that it will be
rejected. Thus, ________ is 10 percent.
33) Consider the following work breakdown structure:
Within what amount of time (in weeks) is there a 90 percent probability that the critical
path for this project will be completed? 95 percent? 99 percent?
34) The costs to do each of the three jobs on three alternate pieces of equipment are
given below. Determine the job-equipment combination that will minimize total cost.
35) The owner of Crackers, Inc., produces two kinds of crackers: Deluxe (D) and
Classic (C). She has a limited amount of the three ingredients used to produce these
crackers available for her next production run: 4,800 ounces of sugar; 9,600 ounces of
flour, and 2,000 ounces of salt. A box of Deluxe crackers requires 2 ounces of sugar, 6
ounces of flour, and 1 ounce of salt to produce; while a box of Classic crackers requires
3 ounces of sugar, 8 ounces of flour, and 2 ounces of salt. Profits for a box of Deluxe
crackers are $.40; and for a box of Classic crackers, $.50. What is the constraint for
sugar?
36) Consider the following information:
What is total regular time capacity?
37) An order we just received has a 90 percent learning curve associated with it. The
second unit of the total 25-unit order had a unit time of 36 minutes. What will the total
time be for the entire order (all 25 units)?