The objective of the make-or-buy decision is to help identify the products and services
that can be obtained externally.
The maximax criterion of decision making requires that all decision alternatives have
an equal probability of occurrence.
When implemented as a comprehensive manufacturing strategy, JIT, TPS, and lean
systems sustain competitive advantage and result in increased overall returns.
The operations manager performs the management activities of planning, organizing,
staffing, leading, and controlling of the OM function.
A reason for the use of simulation in queuing is that the four standard queuing models
do not allow for unusual arrival and service distributions.
To find the process cycle time with simultaneous processes, compute the time over all
paths and choose the shortest path through the system.
The last step in the analytic decision process clearly defines the problem and the factors
that influence it.
Professional services typically require low levels of labor intensity.
Preventive maintenance is nothing more than keeping the equipment and machinery
running.
Multinational organizations can shop from country to country and cut costs through
A) lower wage scales
B) lower indirect costs
C) less stringent regulations
D) lower taxes and tariffs
E) all of the above
An assembly drawing
A) shows, in schematic form, how the product is assembled
B) shows an exploded view of the product
C) lists the operations, including assembly and inspection, necessary to produce the
component with the material specified in the bill of material
D) provides detailed instructions on how to perform a given task
E) describes the dimensions and finish of each component
Which service design technique(s) would ordinarily not be appropriate for full-service
restaurant meals?
A) modularizing the product
B) customization as late in the process as possible
C) reducing customer interaction
D) the moment of truth
E) All of the above are appropriate.
Ambient conditions, spatial layout and functionality, and signs, symbols, and artifacts
are all
A) indicators of imbalance on an assembly line
B) indicators that cross-docking has been successful
C) elements of customization in a warehouse layout
D) elements of servicescapes
E) elements of successful office layouts
A local project being analyzed by PERT has 42 activities, 13 of which are on the critical
path. If the estimated time along the critical path is 105 days with a project variance of
25, the probability that the project will be completed in 95 days or less is
A) -0.4
B) 0.0228
C) 0.3444
D) 0.9772
E) 4.2
A fundamental distinction between trend projection and linear regression is that
A) trend projection uses least squares while linear regression does not
B) only linear regression can have a negative slope
C) in trend projection the independent variable is time; in linear regression the
independent variable need not be time, but can be any variable with explanatory power
D) trend projection can be a function of several variables, while linear regression can
only be a function of one variable
E) trend projection uses two smoothing constants, not just one
A carpet manufacturer has delivered carpet directly to the end consumer rather than to
the carpet dealer. The carpet manufacturer is practicing
A) postponement
B) cross-docking
C) channel assembly
D) drop shipping
E) float reduction
An activity on a PERT network has these time estimates: optimistic = 2, most likely =
5, and pessimistic = 10. Its expected time is
A) 5.00
B) 5.33
C) 5.67
D) 17.00
E) none of these
Which of the following is not an operations strategic decision?
A) maintenance
B) price
C) layout design
D) quality
E) inventory
Average outgoing quality (AOQ) usually
A) worsens with inspection
B) stays the same with inspection
C) improves with inspection
D) may either improve or worsen with inspection
E) is the average quality before inspection
Which of the following statements regarding the center-of-gravity method is false?
A) It is designed to minimize the maximum possible travel distance to any location.
B) The optimal x- and y-coordinates are calculated separately.
C) The optimal solution is unconstrained, so it could suggest a location in the middle of
a body of water.
D) The weights used are the quantity of goods moved to or from each location.
E) The origin of the coordinate system and the scale used are arbitrary, just as long as
the relative distances are correctly represented.
Assignable causes
A) are not as important as natural causes
B) are within the limits of a control chart
C) depend on the inspector assigned to the job
D) are also referred to as “chance” causes
E) are causes of variation that can be identified and investigated
Using the iso-profit line solution method to solve a maximization problem requires that
we
A) find the value of the objective function at the origin
B) move the iso-profit line away from the origin until it barely touches some part of the
feasible region
C) move the iso-cost line to the lowest level that still touches some part of the feasible
region
D) test the objective function value of every corner point in the feasible region
E) none of the above
Location analysis techniques typically employed by service organizations include
A) factor rating method
B) center-of-gravity method
C) purchasing power analysis of area
D) traffic counts
E) all of the above
DuLarge Marine manufactures diesel engines for shrimp trawlers and other small
commercial boats. One of their CNC machines has caused several problems. Over the
past 30 weeks, the machine has broken down as indicated below. Each time the machine
breaks down, the firm loses an average of $3,000 in time and repair expenses.
What is the expected breakdown cost per week?
A) $1,000
B) $2,000
C) $6,000
D) $10,000
E) $60,000
The expected value of perfect information (EVPI) is the
A) payoff for a decision made under perfect information
B) payoff under minimum risk
C) average expected payoff
D) difference between the payoff under perfect information and the payoff under risk
E) none of the above
Which of the following is not an idea behind simulation?
A) to imitate a real-world situation mathematically
B) study the properties and operating characteristics
C) draw conclusions and make decisions based on the results
D) both A and B
E) A, B, and C are all ideas behind simulation,
Which of the determinants of service quality involves having the customer’s best
interests at heart?
A) access
B) courtesy
C) credibility
D) responsiveness
E) tangibles
Outsourcing is simply an extension of the long-standing practice of
A) subcontracting
B) importing
C) exporting
D) postponement
E) e-procurement
If historical experience data are so widely available and so easy to obtain, why aren’t
they more widely used to set labor standards?
What is the role of heuristics in solving layout problems? Provide a brief example,
drawing from manufacturing situations, retailing situations, or other service situations.
A diagram of all activities and the precedence relationships that exist between these
activities in a project is a(n) __________.
When does degeneracy occur in a transportation model?
A refrigeration and heating company-one that installs and repairs home central air and
heating systems-has asked your advice on how to analyze their service quality. They
have logged customer complaints. Here’s a recent sampling. Use the supplied template
to construct a conventional cause-and-effect diagram. Place each of the complaints onto
a main cause; justify your choice with a brief comment as necessary.
1. “I was overcharged-your labor rates are too high.”
2. “The repairman left trash where he was working.”
3. “You weren’t here when you said you would be. You should call when you must be
late.”
4. “Your repairman smoked in my house.”
5. “The part you installed is not as good as the factory original.
6. “Your repairman was here for over two hours, but he wasn’t taking his work
seriously.”
7. “You didn’t tighten some of the fittings properly-the system’s leaking.”
8. “Your estimate of repair costs was WAY off.”
9. “I called you to do an annual inspection, but you’ve done more-work that I didn’t
authorize.”
10. “Your mechanic is just changing parts-he doesn’t have a clue what’s really wrong.”
11. “Your bill has only a total-I wanted to see detail billing.”
12. “Your testing equipment isn’t very new-are you sure you’ve diagnosed the
problem?”
13. “One of the workmen tracked mud into my living room.”
__________ is a network technique using only one time factor per activity that enables
managers to schedule, monitor, and control large and complex projects.
How does the process choice of an organization affect the basis of its master production
schedule?
Service organizations can immerse the consumer in the service, or have the consumer
become a participant in the service, as they practice __________.
Identify the advantages and disadvantages of using the few suppliers approach.