1) In the single-period model, the service level is the probability that demand will not
exceed the stocking level in any period.
2) Applied research has the objective of achieving commercial applications for new
ideas.
3) Capacity can be modified in aggregate planning by promotion and producing
additional product using overtime.
4) The total cost curve is relatively flat near the EOQ.
5) Forecasting techniques that are based on time-series data assume that future values of
the series will duplicate past values.
6) Exponential smoothing is a form of weighted averaging.
7) Zero defects requires 100 percent inspection of the final product.
8) Run tests give managers an alternative to control charts; they are quicker and cost
less.
9) If people would only work harder, productivity would increase.
10) A basic requirement for operating with low inventories in lean systems is that major
system problems must already have been solved and new problems will be solved as
they appear.
11) In an infinite-source model, the average time in line is equal to the average number
in line divided by the arrival rate.
12) Which of the following is not usually a characteristic of successful high-volume
systems?
A.smooth workflow through the system
B.customized output
C.rapid repair of breakdowns
D.minimal quality problems
E.reliable supply schedules
13) The MRP input listing the assemblies, subassemblies, parts, and raw materials
needed to produce one unit of finished product is the:
A.master production schedule.
B.bill of materials.
C.inventory records.
D.assembly time chart.
E.net requirements chart.
14) The operations manager for a local bus company wants to decide whether he should
purchase a small, medium, or large new bus for his company. He estimates that the
annual profits (in $000) will vary depending upon whether passenger demand is low,
medium, or high, as follows:
If he uses the maximin criterion, which size bus will he decide to purchase?
A.small
B.medium
C.large
D.either small or medium
E.either medium or large
15) A production line is to be designed for a job with three tasks. The task times are .3
minutes, 1.4 minutes, and .7 minutes. The minimum cycle time in minutes is:
A..3
B..7
C.1.4
D.2.4
E..8
16) Which of the following is not a benefit of small lot sizes in lean systems?
A.In-process inventory is considerably less.
B.Each product is produced less frequently.
C.Carrying costs are reduced.
D.There is less clutter in the workplace.
E.Inspection and rework costs are less.
17) The local operations manager for the Internal Revenue Service must decide whether
to hire one, two, or three temporary tax examiners for the upcoming tax season. She
estimates that net revenues (in thousands of dollars) will vary with how well taxpayers
comply with the new tax code just passed by Congress, as follows:
If she uses the maximin criterion, how many new examiners will she decide to hire?
A.one
B.two
C.three
D.either one or two
E.either two or three
18) A graphical representation that shows the risk of: (1) accepting bad lots and (2)
rejecting good lots is called the:
A.indifference curve.
B.operating characteristic curve.
C.sampling plan.
D.inspection curve.
19) To _____ an activity means to shorten the time it will take.
A.speed
B.fund
C.crash
D.aggregate
E.matrix
20) Which of the following is not a determinant of effective capacity?
A.facilities
B.product mix
C.actual output
D.human factors
E.external factors
21) Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of
$10. What would its total cost be at a monthly volume of 250 units?
A.$105,200
B.$102,500
C.$100,250
D.$100,520
E.$105,500
22) The transportation model method for evaluating location alternatives minimizes
total:
A.sources.
B.destinations.
C.capacity.
D.demand.
E.shipping cost.
23) The dean of a school of business is forecasting total student enrollment for this
year’s summer session classes based on the following historical data:
What is this year’s forecast using exponential smoothing with alpha = .4, if last year’s
smoothed forecast was 2,600?
A.2,600
B.2,760
C.2,800
D.3,840
E.3,000
24) Which is not a cost of quality?
A.prevention cost
B.external failure
C.extended service contracts
D.internal failure
E.appraisal costs
25) The manager of the Quick Stop Corner Convenience Store (which never closes)
sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer
costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive
three days from the time they are placed. Daily holding costs are equal to 5 percent of
the cost of the beer.
What is the economic order quantity for Stein beer?
A.8 cases
B.11 cases
C.14 cases
D.20 cases
E.32 cases
26) The quality manager for Microelectronics, Inc., is concerned about the quality of
the batch of several thousand Z-box games which his company is about to ship. If he
uses an acceptance sampling plan of n = 20 and c = 1, what is the probability that, if
this batch is 15 percent defectives, it will be rejected and completely inspected prior to
shipment?
A..0263
B..1237
C..1756
D..8244
E..9737
27) The specification limit for a product is 8 cm and 10 cm. A process that produces the
product has a mean of 9.5 cm and a standard deviation of 0.2 cm. What is the process
capability, Cpk?
A.3.33
B.1.67
C.0.83
D.2.50
E.1.33
28) To reduce waiting times by actively managing system constraints, managers could
consider:
(I) using temporary workers.
(II) shifting demand from high-demand periods to low-demand periods.
(III) offering more service variety.
(IV) discovering bottlenecks.
A.I and III only
B.I, II, and IV only
C.III only
D.II and IV only
E.IV only
29) Some communities offer financial and other incentives to ______ new businesses.
A.tax
B.attract
C.marginalize
D.incorporate
E.zone
30) A disadvantage of global teams for product design is that:
A.customers may have different needs in different countries.
B.the product designed may have increased marketability and utility.
C.the diversity of an international team may be a detriment.
D.ease of face-to-face meetings is absent since members are located everywhere.
E. technology allows constant contact with team members.