BUSI 411 exam 2 solutions complete answers

BUSI 411 exam 2 solutions complete answers 

 

The method for evaluating location alternatives that incorporates both qualitative and quantitative inputs to establish a composite score for each alternative is:

 

Among the potential disadvantages of having global operations is/are:

 

A company is designing a product layout for a new product. It plans to use this production line eight hours a day in order to meet projected demand of 480 units per day. The tasks necessary to produce this product are: 
 

Task
Time(secs)
Immediate
Predecessor
u
30
none
v
30
u
w
6
u
x
12
w
y
54
x
z
30
v,y

If the company wants the output rate to be equal to demand, what would be the efficiency of this line with the theoretical minimum number of workstations? 

 

A clothing manufacturer produces clothing in five locations in the United States. In a move to vertical integration, the company is planning a new fabric production plant that will supply fabric to all five clothing plants. The clothing plants have been located on a coordinate system as follows:

 

· Question 1

3 out of 3 points

 
 
 
 
Which of the following is a key question in capacity planning? 
 
 
 
 
 
 
·         Question 2

3 out of 3 points

 
 
 
 
Utilization is defined as the ratio of:
 
 
 
 
 
 
·         Question 3

3 out of 3 points

 
 
 
 
Given the following information, what would utilization be? 

Effective capacity = 20 units per day
Design capacity = 60 units per day
Actual output = 15 units per day
 
 
 
 
 
 
·         Question 4

3 out of 3 points

 
 
 
 
An alternative will have fixed costs of $10,000 per month, variable costs of $50 per unit, and revenue of $70 per unit. The break-even point volume is:
 
 
 
 
 
 
·         Question 5

3 out of 3 points

 
 
 
A Virginia county is considering whether to pay $50,000 per year to lease a prisoner transfer facility in a prime location near Washington, D.C. They estimate it will cost $50 per prisoner to process the paperwork at this new location. The county is paid a $75 commission for each new prisoner they process. How many prisoners would they have to process annually to break even at this new location?
 
 
 
 
 
 
 
·         Question 6

3 out of 3 points

 
 
 
 
A company needs to locate three departments (X, Y, and Z) in the three areas (I, II, and III) of a new facility. They want to minimize interdepartmental transportation costs, which are expected to be $.50 per load per meter moved. An analyst has prepared the following distances and flow matrices:
 

Distances (meters)
From/To
I
II
III
I
-
10
20
II
 
-
10
III
 
 
-
 

Flows (loads per week)
From/To
X
Y
Z
X
-
60
90
Y
40
-
160
Z
110
140
-
 
What is the distance (in meters) from area III to area I in this new facility?
 
 
 
 
 
 
·         Question 7

3 out of 3 points

 
 
 
 
QRS Corp. is designing a product layout for a new product. They plan to use this production line 10 hours a day in order to meet forecasted demand of 900 units per day. The following table describes the tasks necessary to produce this product:
 

Task
Time(secs)
Immediate
Predecessor
a
34
none
b
20
a
c
10
b
d
16
b
e
10
c
f
24
d,e
g
38
f
 
For output to equal forecasted demand, what will be the efficiency of the production line that uses the least number of workstations?
 
 
 
 
 
 
·         Question 8

3 out of 3 points

 
 
 
 
What is it about job shops that make them appropriate for products in the introductory phase of their life cycle?
 
 
 
 
 
 
·         Question 9

3 out of 3 points

 
 
 
An operations strategy for process selection should recognize that:
 
 
 
 
 
 
 
·         Question 10

3 out of 3 points

 
 
 
Computer-aided manufacturing refers to the use of computers in:
 
 
 
 
 
 
 
·         Question 11

3 out of 3 points

 
 
 
 
Which of the following most closely describes job enlargement?
 
 
 
 
 
 
·         Question 12

3 out of 3 points

 
 
 
 
A methods and measurements analyst for Digital Devices needs to develop a time standard for the task of assembling a computer mouse. In a preliminary study, she observed one of her workers perform this task six times with the following results:
 

Observation
1
2
3
4
5
6
Time(Seconds)
46
38
40
34
42
40
 
What is the normal time for this task if the employee worked at a 20 percent faster pace than average?
 
 
 
 
 
 
·         Question 13

3 out of 3 points

 
 
 
 
The symbols for operation, storage, transportation, inspection, and delay would usually be found on which type of chart?
 
 
 
 
 
 
·         Question 14

3 out of 3 points

 
 
 
 
A methods and measurements analyst for Timepiece, Inc., needs to develop a time standard for the task of attaching a watch to a wristband. In a preliminary study, he observed one of his workers perform this task five times, with the following results:
 

Observation
1
2
3
4
5
Time(Seconds)
27
19
20
21
13
 
How many observations should be made if he wants to be 95.44 percent confident that the maximum error in the observed time is one second? Assume that the standard deviation of the task time is five seconds.
 
 
 
 
 
 
·         Question 15

3 out of 3 points

 
 
 
A methods and measurement analyst wants to develop a time standard for a certain task. In a preliminary study, he observed one worker perform the task six times with an average observed time of 20 seconds and a standard deviation of two seconds.

What is the normal time for this task if the employee worked at a 20 percent faster pace than average?
 
 
 
 
 
 
 
·         Question 16

3 out of 3 points

 
 
 
 
A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows:
 

Location
FC (annual)
VC (per unit)
Atlanta
$
80,000
 
$
20
 
 
Phoenix
$
140,000
 
$
16
 
 
 
 
What would the total annual costs be for the Phoenix location with an annual output of 10,000 units?
 
 
 
 
 
 
·         Question 17

3 out of 3 points

 
 
 
 
Nearness to raw materials would be most important to a:
 
 
 
 
 
 
·         Question 18

3 out of 3 points

 
 
 
 
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?
 
 
 
 
 
 
·         Question 19

3 out of 3 points

 
 
 
 
A hardware distributor has regional warehouses at the locations shown below. The company wants to locate a new central distribution center to serve this warehouse network.
 

Location
(x, y)
A
2, 3
B
3, 7
C
5, 5
D
7, 3
E
8, 7
 
 
If weekly shipments to each warehouse will be approximately equal, what is the optimal location for the distribution center?
 
 
 
 
 
 
·         Question 20

3 out of 3 points

 
 
 
The center of gravity method is used to _______ travel time or shipping costs. 
 
 
 
 
 
 
 
·         Question 21

3 out of 3 points

 
 
 
Capacity planning requires an analysis of needs: what kind, how much, and when.
 
 
 
 
 
 
 
·         Question 22

3 out of 3 points

 
 
 
 
The goal of line balancing is to assign tasks to workstations in such a way that the workstations have approximately equal time requirements.
 
 
 
 
 
 
·         Question 23

3 out of 3 points

 
 
 
 
Predetermined time standards use historical data from a company's own files.
 
 
 
 
 
 
·         Question 24

3 out of 3 points

 
 
 
 
Web-based, retail businesses should be located near the customer to reduce their long distance phone charges.
 
 
 
 
 
 
·         Question 25

3 out of 3 points

 
 
 
 
The fact that most types of firms are located in every section of the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another.
 
 
 
 
 
 
 

Question 1 The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. If, for this machine, design capacity is 50 cords per day, effective capacity is 40 cords per day, and actual output is anticipated to be 35 cords per day, what would be its utilization?

Question 2 Students at a major university must go through several registration steps. Officials have observed that it is typically the case that the waiting line at the fee-payment station is the longest. This would seem to suggest that the fee-payment station is the ___________ in the student registration process.

Question 3 The method of financial analysis which results in an equivalent interest rate is:

Question 4 Which of these factors would not be subtracted from design capacity when calculating effective capacity?

Question 5 Everything else being equal, a firm considering outsourcing can be reasonably certain that:

Question 6 A company needs to rebalance a product layout for producing new plastic license plates. They plan to use the assembly line six hours in order to meet projected demand of 2,160 license plates each day. The following table describes the tasks involved in the production of this product:

  

For output to equal projected demand, what will be the idle time at the second workstation of the assembly line that uses the minimum number of workstations?

Question 7 The maximum allowable cycle time is computed as:

Question 8 Although they do not guarantee optimal solutions, ______________ are useful in finding reasonable solutions when the number of possible options is overwhelming.

Question 9 Cellular layout is a term associated with:

Question 10 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:

Question 11 The chart used to review the overall sequence of an operation by focusing on the movements of either the operator or materials is called a:

Question 12 Which sample proportion will require the largest number of work sampling observations?

Question 13 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. How many observations should be made if he wants to be 95.44 percent confident that the maximum error in the observed time is one second?

Question 14 A methods and measurements analyst needs to develop a time standard for a certain task. In a preliminary study, he observed one of his workers perform this task five times, with the following results:

 

What is the standard time for this task if the employee worked at a 25 percent faster pace than average and an allowance of 20 percent of job time is used?

Question 15 Determining the number of cycles to observe is an element of:

Question 16 Among the disadvantages of having global operations is/are:

Question 17 A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows:

 

At what annual output would the company be indifferent between the two locations?

Question 18 A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below:

 

What is the composite score for location B?

Question 19 In general, managing global operations is made easier by __________ and __________.

Question 20 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?

Question 21 The term capacity refers to the maximum quantity an operating unit can process over a given period of time.

Question 22 The percentage of idle time in an assembly line is called cycle time.

Question 23 It would be acceptable to use a group incentive plan for an assembly line operation.

Question 24 Location decisions are basically one-time decisions usually made by new organizations.

Question 25 Retail businesses generally prefer locations that are not near other retailers, as this reduces their competition.

 

·         Question 1

3 out of 3 points

 
 
 
The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. If, for this machine, design capacity is 50 cords per day, effective capacity is 40 cords per day, and actual output is expected to be 32 cords per day, what would be its efficiency?
 
 
 
 
 
 
 
·         Question 2

3 out of 3 points

 
 
 
A Virginia county is considering whether to pay $50,000 per year to lease a prisoner transfer facility in a prime location near Washington, D.C. They estimate it will cost $50 per prisoner to process the paperwork at this new location. The county is paid a $75 commission for each new prisoner they process. How many prisoners would they have to process annually to break even at this new location?
 
 
 
 
 
 
 
·         Question 3

3 out of 3 points

 
 
 
Improving cash flow would be a reasonable thing to focus on when trying to overcome a _________ constraint.
 
 
 
 
 
 
 
·         Question 4

3 out of 3 points

 
 
 
Which of the following is not a criterion for developing capacity alternatives?
 
 
 
 
 
 
 
·         Question 5

·         3 out of 3 points

 
 
 
The ratio of actual output to design capacity is:
 
 
 
 
 
 
 
·         Question 6

3 out of 3 points

 
 
 
Computer-integrated manufacturing integrates ______________ with manufacturing.
 
 
 
 
 
 
 
·         Question 7

3 out of 3 points

 
 
 
A company is designing a product layout for a new product. It plans to use this production line eight hours a day in order to meet projected demand of 480 units per day. The tasks necessary to produce this product are:

If the company wants the output rate to be equal to demand, what is the desired cycle time (in seconds)?
 
 
 
 
 
 
 
·         Question 8

3 out of 3 points

 
 
 
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. 

Without considering projected demands, what is the minimum possible cycle time for this production line?
 
 
 
 
 
 
 
·         Question 9

3 out of 3 points

 
 
 
Process choice is _________ driven.
 
 
 
 
 
 
 
·         Question 10

3 out of 3 points

 
 
 
A company is designing a product layout for a new product. It plans to use this production line eight hours a day in order to meet projected demand of 480 units per day. The tasks necessary to produce this product are:

If the company wants the output rate to be equal to demand, what is the minimum number of workstations needed?
 
 
 
 
 
 
 
·         Question 11

3 out of 3 points

 
 
 
What is the effect of an increase in the desired confidence level on the number of observations necessary in a time study?
 
 
 
 
 
 
 
·         Question 12

3 out of 3 points

 
 
 
Asking a group of employees at a particular level to take on more responsibility is a form of ___________ loading, also known as job __________.
 
 
 
 
 
 
 
·         Question 13

3 out of 3 points

 
 
 
A methods and measurements analyst needs to develop a time standard for a certain task. In a preliminary study, he observed one of his workers perform this task five times, with the following results: 

What is the standard time for this task if the employee worked at a 25 percent faster pace than average and an allowance of 20 percent of job time is used?
 
 
 
 
 
 
 
·         Question 14

3 out of 3 points

 
 
 
A disadvantage of teams is:
 
 
 
 
 
 
 
·         Question 15

3 out of 3 points

 
 
 
A methods and measurements analyst for Timepiece, Inc., needs to develop a time standard for the task of attaching a watch to a wristband. In a preliminary study, he observed one of his workers perform this task five times, with the following results:

What is the standard time for this task if the employee worked at a 20 percent faster pace than average, and an allowance of 20s percent of job time is used?
 
 
 
 
 
 
 
·         Question 16

3 out of 3 points

 
 
 
In regards to supply chain management and the location decision, a primary challenge is to address _______________ distribution.
 
 
 
 
 
 
 
·         Question 17

3 out of 3 points

 
 
 
The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows:

What would be total annual costs for either location at the point of indifference?
 
 
 
 
 
 
 
·         Question 18

3 out of 3 points

 
 
 
A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows:

What would be the total annual costs at the point of indifference?
 
 
 
 
 
 
 
·         Question 19

3 out of 3 points

 
 
 
The method for evaluating location alternatives that uses their total cost curves is:
 
 
 
 
 
 
 
·         Question 20

3 out of 3 points

 
 
 
Which of the following is not a location option that management can consider in location planning?
 
 
 
 
 
 
 
·         Question 21

3 out of 3 points

 
 
 
An example of an external factor that influences effective capacity is government safety regulations.
 
 
 
 
 
 
 
·         Question 22

3 out of 3 points

 
 
 
Information technology refers to competitive data.
 
 
 
 
 
 
 
·         Question 23

3 out of 3 points

 
 
 
Work sampling can be used to estimate the proportion of time a machine is idle.
 
 
 
 
 
 
 
·         Question 24

3 out of 3 points

 
 
 
Web-based, retail businesses should be located near the customer to reduce their long distance phone charges.
 
 
 
 
 
 
 
·         Question 25

3 out of 3 points

 
 
 
Location decisions are basically one-time decisions usually made by new organizations.
 
 
 
 
 
 
 
 

Question 1 Sensitivity analysis is required because:

Question 2 The operations manager for a well­drilling company must recommend whether to build a new facility, expand his existing one, or do nothing. He estimates that long­run profits (in $000) will vary with the amount of precipitation (rainfall) as follows: If he uses the maximax criterion, which alternative will he decide to select?

Question 3 The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. What would the potential profit be if he were to split 4,000 cords of wood with this machine?

Question 4 One local hospital has just enough space and funds currently available to start either a cancer or heart research lab. If administration decides on the cancer lab, there is a 20 percent chance of getting $100,000 in outside funding from the American Cancer Society next year, and an 80 percent chance of getting nothing. If the cancer research lab is funded the first year, no additional outside funding will be available the second year. However, if it is not funded the first year, then management estimates the chances are 50 percent it will get $100,000 the following year, and 50 percent that it will get nothing again. If, however, the hospital's management decides to go with the heart lab, then there is a 50 percent chance of getting $50,000 in outside funding from the American Heart Association the first year and a 50 percent change of getting nothing. If the heart lab is funded the first year, management estimates a 40 percent chance of getting another $50,000 and a 60 percent chance of getting nothing additional the second year. If it is not funded the first year, then management estimates a 60 percent chance for getting $50,000 and a 40 percent chance for getting nothing in the following year. For both the cancer and heart research labs, no further possible funding is anticipated beyond the first two years. What is the expected value for the decision alternative to select the cancer lab?

Question 5 Consider the following decision scenario: *PV for profits ($000) If P(high) is .60, the choice for maximum expected value would be:

Question 6 Daily capacity of a product layout is determined by:

Question 7 The type of processing system which is used for highly standardized products is:

Question 8 Product profiling links key product or service requirements to:

Question 9 A company needs to locate three departments (X, Y, and Z) in the three areas (I, II, and III) of a new facility. They want to minimize interdepartmental transportation costs, which are expected to be $.50 per load meter moved. An analyst has prepared the following flow and distance matrices: What is the layout that will minimize the total distance loads will be moved each week?

Question 10 In which type of processing system would gasoline be produced from crude oil?

Question 11 Suppose the first unit of output required 900 labor hours, and the second unit required only 810. At this rate, how many more units must be produced before labor requirements are less than 700 hours?

Question 12 A manager wants to analyze the learning curve associated with producing one of his company's products. Accordingly, he has gathered the following data: What is the learning curve percentage?

Question 13 The owner of Kat Motel wants to develop a time standard for the task of cleaning a cat cage. In a preliminary study, she observed one of her workers perform this task six times, with the following results: How many observations should be made if she wants to be 95.44 percent confident that the maximum error in the observed time is two seconds? Assume that the standard deviation of the task time is six seconds.

Question 14 A manager wants to analyze the learning curve associated with producing one of his company's products. Accordingly, he has gathered the following data: Approximately how long will it take to produce the fifth through tenth units?

Question 15 Determining the number of cycles to observe is an element of:

Question 16 Which of the following is least important as a consideration for a firm at the beginning of a supply chain?

Question 17 Suppose a decision maker is confronted with the following transportation model scenario: What is the total cost of the optimal solution?

Question 18 For service firms such as banks and supermarkets, location decisions are critical elements of __________ strategy.

Question 19 Which of the following is the last step in the procedure for making location decisions?

Question 20 The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows: What would be the total annual costs for the Alpha Ave. location with 20 persons living there?

Question 21 The break­even quantity can be determined by dividing the fixed costs by the difference between the revenue per unit and the variable cost per unit.

Question 22 A cafeteria line would be an example of a process­focused layout.

Question 23 Ergonomics is an important part of job design to consider when we automate the system.

Question 24 For service organizations, the dominant factors in location analysis usually are marketrelated.

Question 25 A strategy that emphasizes convenience for the customers would probably select a single very large facility.

 

1. Decision trees, with their predetermined analysis of a situation, are really not useful in making health care decisions since every person is unique. 
True    False

 2. Bounded rationality refers to the limits imposed on decision-making because of costs, human abilities, time, technology, and/or availability of information. 
True    False

 3. In reaching a decision, the alternative with the lowest cost should be ranked #1. 
True    False

 4. The expected monetary value approach is most appropriate when the decision-maker is risk-neutral. 
True    False

 5. The value of perfect information is inversely related to losses predicted. 
True    False

 6. Expected monetary value gives the long-run average payoff if a large number of identical decisions could be made. 
True    False

 7. Among decision environments, risk implies that certain parameters have probabilistic outcomes. 
True    False

 8. Among decision environments, uncertainty implies that states of nature have wide ranging probabilities associated with them. 
True    False

 9. In decision theory, states of nature refer to possible future conditions. 
True    False

 10. The maximin approach involves choosing the alternative with the highest payoff. 
True    False

 11. The maximin approach involves choosing the alternative that has the "best worst" payoff. 
True    False

 12. The Laplace criterion treats states of nature as being equally likely. 
True    False

 13. The maximax approach is a pessimistic strategy. 
True    False

 14. A weakness of the maximin approach is that it loses some information. 
True    False

 15. The expected value approach applies to decision-making under uncertainty. 
True    False

 16. The expected value approach is used for decision-making under risk. 
True    False

 17. The EVPI indicates an upper limit on the amount a decision-maker should be willing to spend to obtain additional information. 
True    False

 18. Graphical sensitivity analysis is limited to cases with no more than two alternatives. 
True    False

 19. Graphical sensitivity analysis is used for decision-making under risk. 
True    False

 20. An advantage of decision trees compared to payoff tables is that they permit us to analyze situations involving sequential decisions. 
True    False

 21. The term sub-optimization is best described as the: 
A. result of individual departments making the best decisions for their own areas
B. limitations on decision-making caused by costs and time
C. result of failure to adhere to the steps in the decision process
D. result of ignoring symptoms of the problem
E. none of the above

 22. Which phrase best describes the term bounded rationality? 
A. thinking a problem through clearly before acting
B. taking care not to exhaust limited resources
C. the result of departmentalized decision making
D. limits imposed on decision making by costs, time, and technology
E. the use of extremely structured steps in the decision making process

 23. Testing how a problem solution reacts to changes in one or more of the model parameters is called: 
A. simulation
B. sensitivity analysis
C. priority recognition
D. analysis of variance
E. decision analysis

 24. Sensitivity analysis is required because _______. 
A. payoffs and probabilities are estimates
B. most decision will affect employees
C. expected payoffs are sensitive to the time value of money
D. it's the second step in the decision model
E. with the passage of time, small decisions get bigger

 25. A tabular presentation that shows the outcome for each decision alternative under the various possible states of nature is called a/an: 
A. payoff table
B. feasible region
C. Laplace table
D. decision tree
E. payback period matrix

 26. Which of the following characterizes decision-making under uncertainty? 
A. Decision-makers must rely on probabilities in assessing outcomes.
B. The likelihood of possible future events is unknown.
C. Relevant parameters have known values.
D. Certain parameters have probabilistic outcomes.
E. none of the above

 27. Which of the following is not an approach for decision-making under uncertainty? 
A. decision trees
B. maximin
C. maximax
D. minimax regret
E. Laplace

 28. Determining the worst payoff for each alternative and choosing the alternative with the "best worst" is the approach called: 
A. minimin
B. maximin
C. maximax
D. minimax regret
E. Laplace

 29. Determining the average payoff for each alternative and choosing the alternative with the highest average is the approach called: 
A. minimin
B. maximin
C. maximax
D. minimax regret
E. Laplace

 30. The maximin approach to decision-making refers to: 
A. minimizing the maximum return
B. maximizing the minimum return
C. maximizing the minimum expected value
D. choosing the alternative with the highest payoff
E. choosing the alternative with the minimum payoff

 31. Which one of these is not used in decision-making under risk? 
A. EVPI
B. EMV
C. decision trees
D. minimax regret
E. All are used for risk situations.

 32. The term opportunity loss or regret is most closely associated with: 
A. minimax regret
B. maximax
C. maximin
D. expected monetary value
E. Laplace

 33. The expected monetary value criterion (EMV) is the decision-making approach used with the decision environment of: 
A. certainty
B. risk
C. uncertainty
D. all of the above
E. none of the above

 34. A decision tree is: 
A. an algebraic representation of alternatives
B. a behavioral representation of alternatives
C. a matrix representation of alternatives
D. a schematic representation of alternatives
E. limited to a maximum of 12 branches

 35. The difference between expected payoff under certainty and expected payoff under risk is the expected: 
A. monetary value
B. value of perfect information
C. net present value
D. rate of return
E. profit

 36. If the minimum expected regret is computed, it indicates to a decision-maker the expected: 
A. value of perfect information
B. payoff under certainty
C. monetary value
D. payoff under risk
E. none of the above

 37. The term sensitivity analysis is most closely associated with: 
A. maximax
B. maximin
C. decision-making under risk
D. minimax regret
E. Laplace criterion

 38. A manager has developed the following payoff table that indicates the profits associated with a set of alternatives under two possible states of nature.
   
Answer the following questions:
(A) If the manager uses maximin as the decision criterion, which of the alternatives would be indicated?
(B) If the manager uses minimax regret as the criterion, which alternative would be indicated?
(C) Determine the expected value of perfect information if P(S2) = .40.
(D) Determine the range of P(S2) for which each alternative would be optimal. 

39. A manager's staff has compiled the information below which pertains to four capacity alternatives under four states of nature. Values in the matrix are present value in thousands of dollars.
   
(A) Assuming a maximax strategy, which alternative would be chosen?
(B) If maximin were used, which alternative would be chosen?
(C) If states of nature are equally likely and an expected value criterion of maximization is used, which alternative would be chosen? 

40. A manager has learned that annual profits from four alternatives being considered for solving a capacity problem are projected to be $15,000 for A, $30,000 for B, $45,000 for C, and $60,000 for D if state of nature 1 occurs; and $60,000 for A, $80,000 for B, $90,000 for C, and $35,000 for D if state of nature 2 occurs.
(A) Assuming maximax is used, what alternative would be chosen?
(B) Assuming maximin is used, what alternative would be chosen?
(C) If P(State of Nature 1) is .40, what alternative has the highest expected monetary value?
(D) Determine the range of P(S2) for which each alternative would be optimal. 

41. A manager is quite concerned about the recent deterioration of a section of the roof on a building that houses her firm's computer operations. According to her assistant there are three options which merit consideration: A, B, and C. Moreover, there are three possible future conditions that must be included in the analysis: I, which has a probability of occurrence of .5; II, which has a probability of .3; and III, which has a probability of .2.
If condition I materializes, A will cost $12,000, B will cost $20,000, and C will cost $16,000. If condition II materializes, the costs will be $15,000 for A, $18,000 for B, and $14,000 for C. If condition III materializes, the costs will be $10,000 for A, $15,000 for B, and $19,000 for C.
(A) Draw a decision tree for this problem.
(B) Using expected monetary value, which alternative should be chosen? 

    
*PV for profits ($000)

 42. The maximax strategy would be: 
A. buy
B. lease
C. rent
D. high
E. low

 43. The maximin strategy would be: 
A. buy
B. lease
C. rent
D. high
E. low

 44. The minimax regret strategy would be: 
A. buy
B. lease
C. rent
D. high
E. low

 45. If P(high) is .60, the choice for maximum expected value would be: 
A. buy
B. lease
C. rent
D. high
E. low

     
*PV for profits ($000)

 46. The maximax strategy would be: 
A. small
B. Medium
C. med.-large
D. large
E. ex-large

 47. The maximin strategy would be: 
A. small
B. Medium
C. med.-large
D. large
E. ex-large

 48. The minimax regret strategy would be: 
A. small
B. Medium
C. med.-large
D. large
E. ex-large

 49. If yes and no are equally likely, which alternative has the largest expected monetary value? 
A. small
B. Medium
C. med.-large
D. large
E. ex-large

     
*PV for profits ($000)

 50. The maximax strategy would be: 
A. A
B. B
C. C
D. D
E. E

 51. The maximin strategy would be: 
A. A
B. B
C. C
D. D
E. E

 52. The minimax regret strategy would be: 
A. A
B. B
C. C
D. D
E. E

 53. With equally likely states of nature, the alternative that has the largest expected monetary value is: 
A. A
B. B
C. C
D. D
E. E

  The new owner of a beauty shop is trying to decide whether to hire one, two, or three beauticians. She estimates that profits next year (in thousands of dollars) will vary with demand for her services and has estimated demand in three categories low, medium and high
   

 54. If she uses the maximax criterion, how many beauticians will she decide to hire? 
A. one
B. two
C. three
D. either one or two
E. either two or three

 55. If she uses the Laplace criterion, how many beauticians will she decide to hire? 
A. one
B. two
C. three
D. either one or two
E. either two or three

 56. If she uses the minimax regret criterion, how many beauticians will she decide to hire? 
A. one
B. two
C. three
D. either one or two
E. either two or three

 57. If she feels the chances of low, medium, and high demand are 50%, 20%, and 30% respectively, what are the expected annual profits for the number of beauticians she will decide to hire? 
A. $54,000
B. $55,000
C. $70,000
D. $80,000
E. $135,000

 58. If she feels the chances of low, medium, and high demand are 50%, 20%, and 30% respectively, what is her expected value of perfect information? 
A. $54,000
B. $55,000
C. $70,000
D. $80,000
E. $135,000

  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, moderate, or high, as follows:
   

 59. 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

 60. If he uses the Laplace 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

 61. If he uses the minimax regret 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

 62. If he feels the chances of low, moderate, and high demand are 30%, 30%, and 40% respectively, what is the expected annual profit for the bus that he will decide to purchase? 
A. $15,000
B. $61,000
C. $69,000
D. $72,000
E. $87,000

 63. If he feels the chances of low, moderate, and high demand are 30%, 30%, and 40% respectively, what is his expected value of perfect information? 
A. $15,000
B. $61,000
C. $69,000
D. $72,000
E. $87,000

  The operations manager for a well-drilling company must recommend whether to build a new facility, expand his existing one, or do nothing. He estimates that long-run profits (in $000) will vary with the amount of precipitation (rainfall) as follows:
   

 64. If he uses the maximax criterion, which alternative will he decide to select? 
A. do nothing
B. expand
C. build new
D. either do nothing or expand
E. either expand or build new

 65. If he uses the Laplace criterion, which alternative will he decide to select? 
A. do nothing
B. expand
C. build new
D. either do nothing or expand
E. either expand or build new

 66. If he uses the minimax regret criterion, which alternative will he decide to select? 
A. do nothing
B. expand
C. build new
D. either do nothing or expand
E. either expand or build new

 67. If he feels the chances of low, normal, and high precipitation are 30%, 20%, and 50% respectively, what are expected long-run profits for the alternative he will select? 
A. $140,000
B. $170,000
C. $285,000
D. $305,000
E. $475,000

 68. If he feels the chances of low, normal, and high precipitation are 30%, 20%, and 50% respectively, what is his expected value of perfect information? 
A. $140,000
B. $170,000
C. $285,000
D. $305,000
E. $475,000

  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:
   

 69. 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

 70. If she uses the Laplace 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

71. If she uses the minimax regret 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

 72. If she feels the chances of low, medium, and high compliance are 20%, 30%, and 50% respectively, what are the expected net revenues for the number of assistants she will decide to hire? 
A. $26,000
B. $46,000
C. $48,000
D. $50,000
E. $76,000

 73. If she feels the chances of low, medium, and high compliance are 20%, 30%, and 50% respectively, what is her expected value of perfect information? 
A. $16,000
B. $26,000
C. $46,000
D. $48,000
E. $50,000

  The construction manager for Acme Construction, Inc. must decide whether to build single-family homes, apartments, or condominiums. He estimates annual profits (in $000) will vary with the population trend as follows:
   

 74. If he uses the maximin criterion, which kind of dwellings will he decide to build? 
A. single family
B. apartments
C. condominiums
D. either single family or apartments
E. either apartments or condos

 75. If he uses the Laplace criterion, which kind of dwellings will he decide to build? 
A. single family
B. apartments
C. condos
D. either single family or apartments
E. either apartments or condos

 76. If he uses the minimax regret criterion, which kind of dwellings will he decide to build? 
A. single family
B. apartments
C. condos
D. either single family or apartments
E. either apartments or condos

 77. If he feels the chances of declining, stable, and growing population trends are 40%, 50%, and 10%, respectively, which kind of houses will he decide to build? 
A. single family
B. apartments
C. condos
D. either single family or apartments
E. either apartments or condos

 78. If he feels the chances of declining, stable, and growing population trends are 40%, 50%, and 10%, respectively, what is his expected value of perfect information? 
A. $187,000
B. $132,000
C. $123,000
D. $65,000
E. $55,000

  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:
   

 79. If she uses the maximax 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

 80. If she uses the maximin 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

 81. 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

 82. If she uses the minimax regret 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

 83. If she feels there is a 30% chance that demand will be high, what are the expected monthly profits for the outlet she will decide to lease? 
A. $1,600
B. $1,100
C. $1,000
D. $900
E. $500

 84. If she feels there is a 30% chance that demand will be high, what is her expected payoff under certainty? 
A. $1,600
B. $1,100
C. $1,000
D. $900
E. $500

 85. If she feels there is a 30% chance that demand will be high, what is her expected value of perfect information? 
A. $1,600
B. $1,100
C. $1,000
D. $900
E. $500

 86. For what range of probability that demand will be high, will she decide to lease the small facility? 
A. 0 - .25
B. 0 - .33
C. .25 - .5
D. .33 - 1
E. .5 - 1

 87. For what range of probability that demand will be high, will she decide to lease the medium facility? 
A. 0 - .25
B. 0 - .33
C. .25 - .5
D. .33 - 1
E. .5 - 1

 88. For what range of probability that demand will be high, will she decide to lease the large facility? 
A. 0 - .25
B. 0 - .33
C. .25 - .5
D. .33 - 1
E. .5 - 1

  The advertising manager for Roadside Restaurants, Inc. needs to decide whether to spend this month's budget for advertising on print media, television, or a mixture of the two. She estimates that the cost per thousand "hits" (readers or viewers) will vary depending upon the success of the new cable television network she plans to use, as follows:
   

 89. If she uses the maximax criterion, which advertising strategy will she use? 
A. print
B. mixed
C. television
D. either print or mixed
E. either mixed or television

 90. If she uses the maximin criterion, which advertising strategy will she use? 
A. print
B. mixed
C. television
D. either print or mixed
E. either mixed or television

 91. If she uses the Laplace criterion, which advertising strategy will she use? 
A. print
B. mixed
C. television
D. either print or mixed
E. either mixed or television

 92. If she uses the minimax regret criterion, which advertising strategy will she use? 
A. print
B. mixed
C. television
D. either print or mixed
E. either mixed or television

 93. If she feels that there is a 60% chance that the new cable network will be successful, what is her expected cost (per thousand "hits") for the strategy she will select? 
A. $3.40
B. $4.60
C. $8.00
D. $9.00
E. $10.00

 94. If she feels that there is a 60% chance that the new cable network will be successful, what is her expected cost (per thousand "hits") under certainty? 
A. $3.40
B. $4.60
C. $8.00
D. $9.00
E. $10.00

 95. If she feels that there is a 60% chance that the new cable network will be successful, what is her expected value (per thousand "hits") of perfect information? 
A. $3.40
B. $4.60
C. $8.00
D. $9.00
E. $10.00

 96. For what range of probability that the new cable network will be successful will she select the print media strategy? 
A. 0 - .4
B. 0 - .55
C. .4 - .7
D. .55 - 1
E. .7 - 1

 97. For what range of probability that the new cable network will be successful will she select the mixed media strategy? 
A. 0 - .4
B. 0 - .55
C. .4 - .7
D. .55 - 1
E. .7 - 1

 98. For what range of probability that the new cable network will be successful will she select the television media strategy? 
A. 0 - .4
B. 0 - .55
C. .4 - .7
D. .55 - 1
E. .7 - 1

  The head of operations for a movie studio wants to determine which of two new scripts they should select for their next major production. (Due to budgeting constraints, only one new picture can be undertaken at this time.) She feels that script #1 has a 70 percent chance of earning about $10,000,000 over the long run, but a 30 percent chance of losing $2,000,000. If this movie is successful, then a sequel could also be produced, with an 80 percent chance of earning $5,000,000, but a 20 percent chance of losing $1,000,000. On the other hand, she feels that script #2 has a 60 percent chance of earning $12,000,000, but a 40 percent chance of losing $3,000,000. If successful, its sequel would have a 50 percent chance of earning $8,000,000, but a 50 percent chance of losing $4,000,000. Of course, in either case, if the original movie were a "flop," then no sequel would be produced.

 99. What would be the total payoff if script #1 were a success, but its sequel were not? 
A. $15,000,000
B. $10,000,000
C. $9,000,000
D. $5,000,000
E. $-1,000,000

 100. What is the probability that script #1 will be a success, but its sequel will not? 
A. .8
B. .7
C. .56
D. .2
E. .14

 101. What is the expected value of selecting script #1? 
A. $15,000,000
B. $9,060,000
C. $8,400,000
D. $7,200,000
E. $6,000,000

 102. What is the expected value of selecting script #2? 
A. $15,000,000
B. $9,060,000
C. $8,400,000
D. $7,200,000
E. $6,000,000

 103. What is the expected value for the optimum decision alternative? 
A. $15,000,000
B. $9,060,000
C. $8,400,000
D. $7,200,000
E. $6,000,000

  One local hospital has just enough space and funds presently available to start either a cancer or heart research lab. If administration decides on the cancer lab, there is a 20 percent chance of getting $100,000 in outside funding from the American Cancer Society next year, and an 80 percent chance of getting nothing. If the cancer research lab is funded the first year, no additional outside funding will be available the second year. However, if it is not funded the first year, then management estimates the chances are 50 percent it will get $100,000 the following year, and 50 percent that it will get nothing again. If, however, Merciless's management decides to go with the heart lab, then there's a 50 percent chance of getting $50,000 in outside funding from the American Heart Association the first year and a 50 percent change of getting nothing. If the heart lab is funded the first year, management estimates a 40 percent chance of getting another $50,000 and a 60 percent chance of getting nothing additional the second year. If it is not funded the first year, then management estimates a 60 percent chance for getting $50,000 and a 40 percent chance for getting nothing in the following year. For both the cancer and heart research labs, no further possible funding is anticipated beyond the first two years.

 104. What would be the total payoff if the heart lab were funded in both the first and second years? 
A. $100,000
B. $60,000
C. $50,000
D. $40,000
E. $20,000

 105. What is the probability that the heart lab will be funded in both the first and second years? 
A. .4
B. .3
C. .2
D. .1
E. 0

 106. What is the expected value for the decision alternative to select the cancer lab? 
A. $100,000
B. $60,000
C. $50,000
D. $40,000
E. $20,000

 107. What is the expected value for the decision alternative to select the heart lab? 
A. $100,000
B. $60,000
C. $50,000
D. $40,000
E. $20,000

 108. What is the expected value for the optimum decision alternative? 
A. $100,000
B. $60,000
C. $50,000
D. $40,000
E. $20,000

  Two professors at a nearby university want to co-author 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 can't 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 can't 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.

 109. What is the probability that the economics book would wind up being placed with a smaller publisher? 
A. .8
B. .5
C. .4
D. .2
E. .1

 110. What is the probability that the statistics book would wind up being placed with a smaller publisher? 
A. .6
B. .5
C. .4
D. .3
E. 0

 111. 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

 112. What is the expected value for the decision alternative to write the statistics book? 
A. 50,000 copies
B. 40,000 copies
C. 32,000 copies
D. 30,500 copies
E. 10,500 copies

 113. What is the expected value for the optimum decision alternative? 
A. 50,000 copies
B. 40,000 copies
C. 32,000 copies
D. 30,500 copies
E. 10,500 copies

 114. When a decision-making scenario involves two or more departments, if the individual departments pursue what is optimal for them, sometimes the overall organization suffers. This is an example of _____________. 
A. subminimization
B. suboptimization
C. rational boundaries
D. decision making under risk
E. decision making under uncertainty

 115. Which of the following is not a stage in the decision making process? 
A. select the best alternative
B. develop suitable alternatives
C. analyze and compare alternatives
D. monitor the competition
E. specify objectives

 116. Option A has a payoff of $10,000 in environment 1 and $20,000 in environment 2. Option B has a payoff of $5,000 in environment 1 and $27,500 in environment 2. Once the probability of environment 1 exceeds ______, option A becomes the better choice. 
A. .40
B. .45
C. .50
D. .57
E. .60

 117. Option A has a payoff of $10,000 in environment 1 and $20,000 in environment 2. Option B has a payoff of $12,500 in environment 1 and $17,500 in environment 2. Once the probability of environment 2 exceeds ______, option A becomes the better choice. 
A. .33
B. .67
C. .45
D. .50
E. .55

 118. Which of the following would make decision trees an especially attractive decision making tool? 
A. The need to think through a possible sequence of decisions
B. The need to maximize the expected value of perfect information
C. The need to minimize expected regret
D. The need to avoid suboptimization
E. The need to minimize costs

 

1. Continuous processing is the best way to produce customized output.

2. As a general rule, continuous processing systems produce products for inventory rather than for customer order.

3. A Job-Shop processing system generally requires less skilled workers than a continuous processing system.

4. Avoiding bottlenecks is the primary goal of product design.

5. In general, Job-Shop systems have a lower unit cost than continuous systems do because continuous systems use costly specialized equipment.

6. A robot consists of three parts: a power supply, a controller, and a mechanical arm.

7. Continuous production has been a significant factor underpinning the U.S. standard of living over the last century.

8. Right-sized equipment tends to be larger than equipment used in traditional process layout.

9. Intermittent processing can take the form of batch processing or a job shop.

10. The term computer aided manufacturing (CAM) refers primarily to the use of robotics in a manufacturing process.

11. Flexible manufacturing systems (FMS) bring the benefits of automation to continuous processes.

12. Repetitive processing systems usually produce goods specifically for customer orders rather than for inventory.

13. Morale problems can be a reason for redesign of a facility layout.

14. There are three basic process types – Input, Processing and Output.

15. A cafeteria line would be an example of a process focused layout.

16. A possible disadvantage of a product layout is an inflexible system.

17. Product layouts involve high utilization of labor and equipment.

18. A manufacturing cell allows the production of a wide-range of very different products.

19. Product layouts can more easily adapt to variations in product requirements than process layouts can.

20. Process layouts feature departments or other functional groupings of personnel or equipment.

21. Information technology refers to competitive data.

22. A process layout is more susceptible to shutdowns caused by equipment breakdowns than a product layout.

23. Accounting, purchasing, and inventory control are fairly routine with process layouts.

24. A disadvantage of a product layout can be high in-process inventory costs.

25. In cellular manufacturing, machines and equipment are grouped by type (e.g., all grinders are grouped into a cell).

26. Among the benefits claimed for cellular manufacturing are less material handling and reduced setup time.

27. Group technology is closely connected to cellular manufacturing.

28. The percentage of idle time in an assembly line is called cycle time.

Chapter 06 - Process Selection and Facilities Layout

29. Mismatches between operational capabilities and market demand can have a negative impact on an organization.

30. Service layouts must be visually pleasing as well as functional.

31. "Balance delay" is another name for the percentage of idle time in a product layout.

32. "Balance delay" is another name for the percentage of idle time in a process layout.

33. For a production line, daily capacity can be determined by dividing the daily operating time by the line's cycle time.

34. The minimum number of workstations for a production line is determined by the desired output rate.

35. The goal of line balancing is to assign tasks to workstations in such a way that the workstations have approximately equal time requirements.

36. An idle percentage of zero means a line is perfectly balanced.

37. None of the approaches to line balancing, manual or computerized, guarantee optimal solutions.

38. Heuristic approaches to line balancing are the only approach that will guarantee an optimal solution.

39. The main issue in the design of process layouts concerns the relative positioning of the departments involved.

40. An advantage of a U-shaped production line is that it facilitates teamwork and flexibility in work assignments.

41. The goal in line balancing is to obtain a reasonable allocation of work to each station.

42. Cycle time is the maximum time allowed for each workstation to complete its work on each unit.

43. The design of service layouts, e.g., warehouse and supermarket layouts, focuses on cost minimization and product flow.

44. Process layouts allow greater flexibility in processing than product layouts.

45. Process layouts tend to have low in-process inventories.

46. Flexibility can be used as a competitive strategy.

47. Poor layouts are found in both manufacturing and service organizations.

48. Numerically controlled (N/C) machine and some robots are applications of programmable automation.

49. Which of the following is not a process commonly considered in making products or delivering services?

A. continuous

B. batch

C. repetitive

D. job shop

E. subcontracting

50. The type of processing system which is used for highly standardized products is:

A. continuous

B. intermittent

C. project

D. batch

E. unit

51. Cellular layout is a term associated with:

A. wireless telecommunication

B. part families

C. functional (or process) layouts

D. assembly lines

E. job shops

52. The substitution of machinery that has sensing and control devices for human labor is best described by the term:

A. automation

B. feedback control

C. computer-aided manufacturing

D. computer-integrated manufacturing

E. flexible manufacturing system

53. Computer-aided manufacturing (CAM) refers to the use of computers in:

A. product design

B. decision making

C. data analysis

D. quality control

E. process control

54. A group of machines including supervisory computer control, automatic material handling, and possibly robots is called:

A. computer aided design

B. a manufacturing cell

C. computer-aided manufacturing

D. computer-integrated manufacturing

E. a flexible manufacturing system

55. In which type of operations are you likely to see, at most, only minor variations in the product or service being produced using the same process and the same equipment?

A. a project

B. a job shop

C. repetitive production

D. batch processing

E. continuous production

56. The process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements is called:

A. fair employment practices

B. idle time analysis

C. line balancing

D. cycle time optimization

E. none of the above

57. An operations strategy for process selection should recognize that:

A. process selection seldom requires technical expertise

B. engineering "white elephants" are uncommon

C. there is little need to manage technology

D. flexibility is not always the best choice

E. most technical skills can be contracted out to consultants

58. Layout planning is required because of:

(I) Efficient operations

(II) Accidents or safety hazards

(III) New products or services

(IV) Morale problems

A. I and II

B. II and IV

C. I and III

D. II, III, and IV

E. I, II, III, and IV

59. The advantages of automation include:

(I) Reduced output variability

(II) Reduced variable costs

(III) Machines don't strike or file grievances.

(IV) Machines are always less expensive than human labor.

A. I and IV

B. II and III

C. I, II, and III

D. I and III

E. II and IV

60. The benefits of flexible manufacturing systems (FMS) include:

A. reduced labor costs

B. higher flexibility than automation

C. quick changeover from part to part

D. significantly lower unit costs

E. all of the above

61. Which type of processing system tends to produce the most product variety?

A. Assembly

B. Job-Shop

C. Batch

D. Continuous

E. Project

62. In which type of processing system would gasoline be produced from crude oil?

A. Job Shop

B. Batch

C. Assembly

D. Continuous

E. Project

63. Which of the following is not a characteristic of layout decisions in system design?

A. substantial investment of both money and effort

B. long-term commitment

C. significant impact on short-term efficiency

D. usually well-received by operative personnel

E. all of the above

64. An example of automated services is

A. on-line banking

B. build your own pizza

C. haircuts

D. massage parlors

E. all are examples of automated services

65. Which one of the following is not common to product layouts?

A. a high rate of output

B. specialization of labor

C. low unit costs

D. ability to adjust to changes in demand

E. all are common

66. Which one of the following is not considered an important factor in service layout design?

A. cost minimization and product flow

B. frequency of orders

C. customer attitude and image

D. all are important

E. none are important

67. The type of layout which features departments or other functional groupings in which similar activities are performed is:

A. process

B. product

C. fixed-position

D. mass

E. unit

68. Which of the following is not true about process layouts when they are compared to product layouts?

A. higher in-process inventories

B. lower span of supervision

C. lower rates of output

D. more involved cost accounting

E. lower unit costs

69. The type of layout in which workers, materials, and equipment are moved to the product as needed is:

A. process

B. product

C. fixed-position

D. batch

E. mass

70. The grouping of equipment by the operations needed to perform similar work for part families is:

A. product layout

B. cellular manufacturing layout

C. functional layout

D. fixed-position layout

E. process layout

71. Which term is most closely associated with cellular manufacturing?

A. part families

B. assembly line

C. robotics

D. CAD

E. CAM

72. Laser technology used in surgical procedures is an example of technological advances in:

A. Product

B. Service

C. Process

D. Information

E. Reverse Engineering

73. Product profiling links key product or service requirements to:

A. Market conditions

B. Order sizes

C. Pricing strategies

D. Schedule changes

E. Process capabilities

74. Layout design has many objectives, one of which is _______.

A. reduce bottlenecks

B. move materials and workers simultaneously

C. use workers and space efficiently

D. hold material handling costs to 27% or less

E. install computer terminals every 500 feet

75. Which phrase most closely describes flexible manufacturing systems?

A. a variation of CAD

B. a more fully automated version of cellular manufacturing

C. manufacturing resource planning

D. a process layout with a manufacturing overlay

E. an approach that allows workers to begin work at a time of their choosing

76. A service organization (for example, a hospital) is likely to use a ________ layout because of variability in customer processing requirements.

A. project

B. process

C. flow

D. assembly

E. non-repetitive

77. In a product layout, the task of deciding how to assign work to specific stations is referred to as:

A. process balancing

B. task allocation

C. line balancing

D. work allocation

E. station balancing

78. The minimum possible cycle time in a product layout is determined by the:

A. longest task time

B. shortest task time

C. average task time

D. total task time

E. none of the above

79. A production line is to be designed for a job with three tasks. The task times are 0.4 minutes, 1.2 minutes, and 0.5 minutes. The maximum cycle time in minutes is:

A. 0.3

B. 0.7

C. 1.4

D. 2.1

E. 0.8

80. A production line is to be designed for a job with three tasks. The task times are 0.3 minutes, 1.4 minutes, and 0.7 minutes. The minimum cycle time in minutes, is:

A. 0.3

B. 0.7

C. 1.4

D. 2.4

E. 0.8

81. 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

82. The maximum allowable cycle time is computed as:

A. daily operating time divided by the desired output

B. desired output divided by the daily operating time

C. daily operating time divided by the product of the desired output and the sum of job times

D. the product of desired output and the sum of job times divided by daily operating time

E. 1.00 minus station time

83. If a line is balanced with 80 percent efficiency, the "balance delay" would be:

A. 20 percent

B. 80 percent

C. 100 percent

D. unknown, since balance delay isn't related to efficiency

E. depends on the next operation

84. The main issue in the design of process layouts for service operations concerns the relative positioning of:

A. workstations

B. processing components

C. departments

D. entrances, loading docks, etc.

E. manufacturing cells

85. Which of the following is not an information requirement for the design of a process layout?

A. a list of departments or work centers

B. a projection of work flows between the work centers

C. the distance between locations

D. the cost per unit of distance to move loads

E. a list of product cycle times for every product manufactured

86. Which of the following is not an approach that companies use to achieve a smooth flow of production?

A. line balancing heuristics

B. parallel workstations

C. dynamic line balancing (Cross train workers)

D. mixed model line

E. Companies use all of these.

87. A common goal in designing process layouts is:

A. minimizing the number of workers

B. minimizing idle time

C. minimizing transportation costs

D. maximizing work-station productive time

E. maximizing transportation distances

88. In the use of closeness ratings for process layouts, the code "U" means the closeness between two departments is:

A. (U)nknown

B. (U)nusually important

C. of (U)sual importance

D. (U)nimportant

E. (U)ndesirable

89. Which closeness rating reflects the undesirability of having two departments located near each other?

A. A

B. E

C. I

D. U

E. X

90. Which closeness rating reflects the highest importance for two departments being close to each other?

A. A

B. E

C. I

D. U

E. X

91. Which closeness rating reflects indifference on the nearness or lack of nearness of two departments?

A. A

B. E

C. I

D. U

E. X

92. Heuristic rules are used primarily in which of these types of layouts?

(I) Product

(II) Process

(III) Fixed-position

A. I

B. II

C. I and III

D. I and II

E. II and III

93. Heuristic rules are usually applied when:

A. an optimum is necessary

B. a computer program isn't available

C. a problem has a small number of alternatives

D. a problem has a large number of alternatives

E. other approaches have failed

94. An advantage of a U-shaped production line is that it:

A. is more compact.

B. permits better communication among employees.

C. facilitates teamwork among workers.

D. increases flexibility of work assignments.

E. all of the above

95. Which of these items would be most likely to be made with a fixed position layout?

A. a Boeing 777 jet aircraft

B. applesauce

C. a computer chip

D. toothpaste

E. all of these

96. A product focused, single piece flow, pull production system would be called a:

A. cellular layout

B. job shop

C. assembly line

D. non-repetitive process

E. continuous flow

97. Which one of these is a tool used to tell a machine the details of the operations to be performed?

A. CNC

B. CIM

C. CAD

D. CAM

E. automation

98. Which of the following is a primary concern for process selection?

A. variety in products/services

B. flexibility of equipment

C. volume of output

D. all of the above

E. none of the above

99. Management wants to design an assembly line that will turn out 800 videotapes per day.There will be eight working hours in each day. The industrial engineering staff has assembled the information below:

(A) Determine the maximum and minimum cycle times.

(B) Determine the optimum cycle time.

(C) What is the minimum number of stations needed?

(D) Draw the precedence diagram.

(E) Assign tasks to stations in order of most following tasks first.

(A) Maximum cycle time is 2.3 minutes; minimum cycle time is .6 minutes.

D) Refer to the diagram above.

E) Refer to the diagram above

100. Given the information below, assign departments to locations in a 3 x 3 grid, with department F in the lower right hand corner.

101. Given the information below, assign the departments A through I to locations in a 3 x 3 rid, with department E fixed in the lower right-hand corner.

102. Determine the minimum number of workstations needed for this situation:

103. Given the following data:

Determine the percentage idle time.

(1.) Compute the station idle time and the total idle time per cycle:

104. Given the following process layout data for locating six departments in the six areas shown: What process layout(s) satisfy(ies) these closeness ratings? Any layout with I and VI at one end of the facility, III and IV at the other end, and II and V in the middle.

A company is designing a product layout for a new product. It plans to use this production line eight hours a day in order to meet projected demand of 480 units per day. The tasks necessary to produce this product:

105. Without regard to demand, what is the minimum possible cycle time (in seconds) for this situation?

A. 162

B. 72

C. 54

D. 12

E. 60

106. If the company desires that output rate equal demand, what is the desired cycle time (in seconds)?

A. 162

B. 72

C. 54

D. 12

E. 60

107. If the company desires that output rate equal demand, what is the minimum number of workstations needed?

A. 3

B. 4

C. 5

D. 6

E. 7

108. If the company desires that output rate equal demand, what would be the efficiency of this line with the minimum number of workstations?

A. 100%

B. 92.5%

C. 75%

D. 87.5%

E. 90%

109. If the company desires that output rate equal demand, what is the last task performed at the second workstation in the balance which uses the minimum number of workstations?

A. u

B. v

C. w

D. x

E. y

110. Without considering forecasted demand, what is the minimum possible cycle time for this production line?

A. 10 seconds

B. 20 seconds

C. 34 seconds

D. 38 seconds

E. 152 seconds

111. For output to equal forecasted demand, what should be the actual cycle time for this production?

A. 32 seconds

B. 38 seconds

C. 40 seconds

D. 76 seconds

E. 152 seconds

112. For output to equal forecasted demand, what is the minimum number of workstations needed?

A. 1

B. 3

C. 3.75

D. 4

E. 5

113. For output to equal forecasted demand, what will be the efficiency of the production line that uses the least number of workstations?

A. 81%

B. 90%

C. 95%

D. 85%

E. 100%

114. For output to equal forecasted demand, what will be the second task performed at the second workstation of the production line that uses the fewest number of stations?

A. a

B. b

C. c

D. d

E. e

115. Without considering projected demands, what is the minimum possible cycle time for this production line?

A. 54 seconds

B. 14 seconds

C. 12 seconds

D. 10 seconds

E. 4 seconds

116. 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

117. For output to equal projected demand, what is the minimum number of workstations needed?

A. 6

B. 4.5

C. 3

D. 2.7

E. 2

118. For output to equal projected demand, what will be the efficiency of the production line that uses the minimum number of workstations?

A. 90%

B. 95%

C. 97%

D. 99%

E. 100%

119. For output to equal projected demand, what will be the first task performed at the third workstation of the production line which uses the minimum number of stations?

A. u

B. v

C. w

D. x

E. y

120. Without regard to projected demand, what is the minimum possible cycle time for this assembly line?

A. 0 seconds

B. 3 seconds

C. 9 seconds

D. 10 seconds

E. 28 seconds

121. For output to equal projected demand, what should be the actual cycle time for this assembly line?

A. 0 seconds

B. 3 seconds

C. 9 seconds

D. 10 seconds

E. 28 seconds

122. For output to equal projected demand, what is the minimum number of workstations needed?

A. 2

B. 2.8

C. 3

D. 4

E. 5

123. For output to equal projected demand, what will be the efficiency of the assembly line that uses the minimum number of workstations?

A. 0.0%

B. 6.7%

C. 70.0%

D. 93.3%

E. 100%

124. For output to equal projected demand, what will be the idle time at the second workstation of the assembly line that uses the minimum number of workstations?

A. 0 seconds

B. 1 second

C. 2 seconds

D. 3 seconds

E. 5 seconds

125. What is the distance (in meters) from area III to area I in this new facility?

A. 0

B. 10

C. 20

D. 30

E. 40

126. What is the total flow (loads per week) between department Y and department Z?

A. 140

B. 160

C. 200

D. 250

E. 300

127. If departments X, Y, and Z were to be located in areas I, II, and III, respectively, what would be the total distance (in meters) loads would be moved each week?

A. 4,000

B. 4,500

C. 7,000

D. 8,000

E. 9,000.

128. What are total weekly costs for the least costly process layout?

A. $2,800

B. $3,150

C. $3,500

D. $4,000

E. $4,500

129. How many least costly process layouts are there?

A. 1

B. 2

C. 3

D. 4

E. 5

130. What is the distance (in meters) from area 3 to area 1 of this new facility?

A. 0

B. 10

C. 20

D. 30

E. 40

131. What is the total flow (loads per week) between department Y and department Z?

A. 130

B. 150

C. 180

D. 230

E. 280

132. If the company were to locate departments X, Y, and Z in areas 1, 2, and 3, respectively, what would be the total distance (in meters) loads would be moved each week?

A. 3,100

B. 3,600

C. 6,200

D. 7,200

E. 8,200

133. What is the layout that will minimize the total distance loads will be moved each week?

A. X in 1; Y in 2; Z in 3

B. X in 1; Z in 2; Y in 3

C. Y in 1; X in 2; Z in 3

D. Z in 1; X in 2; Y in 3

E. Z in 1; Y in 2; X in 3

134. What are total weekly costs for an optimum layout?

A. $3,100

B. $3,600

C. $6,200

D. $7,200

E. $8,200

135. What is the distance (in meters) from area IV to area II in this new facility?

A. 0

B. 5

C. 10

D. 15

E. 20

136. What is the total flow (patients per week) between department W and department L?

A. 70

B. 80

C. 88

D. 130

E. 148

137. How many different process layouts are possible for this new facility?

A. 4

B. 6

C. 16

D. 24

E. 120

138. If the consultant were to locate departments W, C, L, and E in areas I, II, III, and IV, respectively, what would be total weekly costs?

A. $114

B. $217

C. $255

D. $322

E. $366

139. What are total weekly costs for the least costly process layout?

A. $114

B. $217

C. $255

D. $322

E. $366

 

1. If the elapsed time for the task is short and the activity is somewhat routine, a modest amount of improvement occurs during the first few repetitions. 
True    False

 2. When the task is fairly complex and has a longer duration, it will take a larger number of repetitions before improvement is observed. 
True    False

 3. Negotiated purchasing results in lower unit costs for smaller quantities. 
True    False

 4. Learning curves generally apply to situations in which there is a high degree of human involvement and tasks are fairly repetitive. 
True    False

 5. Learning curves are mostly relevant for complex, new activities that have not been done often. 
True    False

 6. According to learning curve theory, every doubling of total output will produce a constant percentage decrease in time per unit. 
True    False

 7. The decrease in time between the second and fourth units will be equal to the decrease in time between the first and second units. 
True    False

 8. According to learning curve theory, for certain kinds of tasks the cost per unit decreases as the number of repetitions increases. 
True    False

 9. According to learning curve theory, the time reduction per unit decreases (improves) as the number of units increase. 
True    False

 10. A learning percentage of 95% indicates greater learning than a percentage of 90%. 
True    False

 11. A learning curve for an overqualified worker is higher than an average worker. 
True    False

 12. An 80 percent learning curve means that with each doubling of repetitions there will be a 20 percent decrease in time per unit. 
True    False

 13. For an 80% learning curve, if the first unit requires 10 hours, the second unit will require 8 hours and the third 6.4 hours. 
True    False

 14. If an 80% curve is appropriate for a task and the first unit takes ten hours, the average time for the first two units would be eight hours. 
True    False

 15. If we have never made the first unit but only think we know how much the labor time will be, we cannot draw a learning curve. 
True    False

 16. The learning curve principal would apply to the number of students in a class - a class twice as large will learn 80% faster. 
True    False

 17. The learning curve principle would apply to a baseball pitcher learning to throw a curve ball. 
True    False

 18. The learning curve is a basic tool for mass production type activities because it can deal with large volumes of output. 
True    False

 19. Learning curves are used primarily for mass production applications. 
True    False

 20. A learning rate of 98% implies an exceptionally rapid rate of improvement. 
True    False

 21. A learning rate of 77% will produce relatively minor decreases in completion times of the first few repetitions. 
True    False

 22. One use of learning curves is for negotiated purchasing anticipating lower costs at the vendor with increasing volumes. 
True    False

 23. A learning rate of 97% will produce minor decreases in completion times of the first few repetitions. 
True    False

 24. The fact that human activities typically improve when they are done on a repetitive basis is described by a/an: 
A. normal distribution curve
B. learning curve
C. binomial distribution curve
D. exponential curve
E. fatigue factor allowance

 25. To which worker would learning curves be most applicable? 
A. bus driver
B. printing press operator
C. assembly-line worker
D. auto service mechanic
E. baker or cook

 26. Once production is underway and the learning curve effect is occurring, successive changes made to the production process will cause the time per unit to: 
A. continue following the original learning curve without any impact
B. cause a scallop effect
C. increase the unit time and result in a higher percentage learning curve
D. decrease the unit time and result in a higher percentage learning curve
E. decrease the unit time and result in a lower percentage learning curve

 27. On a log-log graph, learning curves appear as: 
A. upward-curving lines
B. downward-curving lines
C. straight lines
D. lines which increase at a decreasing rate
E. lines which decrease at a decreasing rate

 28. Increasing volumes result in ___________ the learning curve. 
A. moving up
B. moving down
C. moving off
D. moving away from
E. stabilization of

 29. It took exactly 10 hours to perform the first kidney transplant on a 100 percent learning curve. The second kidney transplant will take how many hours to perform? 
A. 8.0 hours
B. 10.0 hours
C. 12.0 hours
D. A 100 percent learning curve cannot exist.
E. 5 hours

 30. A job is expected to have a 70 percent learning curve. The first unit has been completed in 20 hours. Accordingly, the second unit can be expected to take approximately how many hours? 
A. 6
B. 9.8
C. 14
D. 20
E. 34

 31. A job with a 70 percent learning curve required 20 hours for the initial unit. The fourth unit should require approximately how many hours? 
A. 6
B. 9.8
C. 14
D. 20
E. 34

 32. How long would a job with a 70 percent learning curve and a time of 20 hours for the first unit require (approximately, in hours) for the third unit? 
A. 14.1
B. 11.5
C. 10.0
D. 7.8
E. 4.3

 33. A job is expected to have a learning curve of 90 percent. The third unit required 16 hours. The twelfth unit should take approximately how many hours? 
A. 2.67
B. 4.83
C. 7.94
D. 10.31
E. 12.95

 34. A job has an 80 percent learning curve. The second unit required 12 hours to complete. Approximately how many hours will be devoted to the first five units (including those already completed)? 
A. 26
B. 36
C. 46
D. 56
E. 66

 35. A manager is trying to estimate the appropriate learning curve for a certain job. The manager notes that the first four units had a total time of 30 minutes. Which learning curve would yield approximately this result if the first unit took 10 minutes? 
A. .70
B. .75
C. .80
D. .85
E. .90

 36. In which of the following managerial activities would learning curves probably be the least useful? 
A. negotiated purchasing
B. manpower planning
C. location analysis
D. budgeting
E. pricing new products

 37. Which of the following is not a major caution or criticism of learning curves? 
A. Learning rates may differ between organizations.
B. Projections should be regarded as approximations.
C. The base time must be carefully determined.
D. The curve may eventually tip upwards.
E. Carryover effects may alter the learning rate.

 38. A job has a 70% learning curve. If the first unit took 10 hours to complete, the third unit should take roughly how many hours? 
A. 7
B. 5.5
C. 5
D. 3.5
E. 4.9

 39. A job has an 80% learning curve. If the first unit took 40 hours to complete, the fourth unit should take roughly how many hours? 
A. 20
B. 25
C. 31
D. 35
E. 40

 40. Which one of the following would learning curves probably affect the least? 
A. pricing new products
B. negotiated purchasing
C. layout analysis
D. scheduling
E. capacity planning

 41. A job has an 80% learning curve. If the first unit took 50 hours to complete, the third unit should take roughly how many hours? 
A. 40
B. 36
C. 35
D. 32
E. 10

 42. Unit times for a job exhibit a learning effect. If the 2nd unit took 30 hours, and the 4th unit took 21 hours, roughly how many hours would you estimate the 3rd unit took? 
A. 29
B. 27
C. 25
D. 24
E. 21

43. A manager is trying to estimate the learning rate for a new job. The first unit took 16 hours and the fourth unit required about 13 hours. The learning rate is: 
A. 70%
B. 75%
C. 80%
D. 85%
E. 90%

 44. A job will have a learning rate of 75 percent. If the 3rd unit requires 10 hours, the 12th unit should require about this many hours: 
A. 5.6
B. 6.5
C. 7.4
D. 8.3
E. 9.2

45. Assembly of a model airplane has a learning curve of 80 percent. The estimated time to assemble a second identical model airplane is 40 hours. Determine approximately how much time will be required for:
(A) the eighth unit
(B) the first ten units 

46. Developing work assignments in a job shop in a certain firm has a learning curve of 80 percent. If the second set of assignments takes 12 minutes, determine the length of time required for the following:
(A) the fifth set
(B) sets 3, 4, and 5 together 

47. 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)? 

48. Sally suspects strongly that there is a learning curve associated with solving problems assigned for operations management. She notes that it took her approximately 33 minutes to solve the first problem and 17 minutes to solve the fifth problem.
(A) Estimate Sally's learning percentage.
(B) Using your answer from Part A, estimate how long it will take Sally to finish the three remaining problems. 

49. Ron has noted that the first accounting problem he did in a set of similar problems took him one hour, and the ninth problem took 24 minutes.
(A) Estimate Ron's learning curve.
(B) About how long did it take Ron to do his set of 10 problems? 

50. It takes a worker with a 90 percent learning curve 72.9 minutes to complete the fourth unit of a seven-unit job. Estimate the amount of time the worker spent on the first two units. 

51. The 3rd unit of a ten-unit job required 7.3 hours to complete. The 4th unit has been worked on for two hours, but it is not yet finished. Estimate the remaining amount of time that will be needed to finish this ten-unit job if the work has an 80% learning curve. 

 A company is preparing a bid on a government contract for 40 units of a certain product. The operations manager estimates the assembly time required for the first two units to be 10.4 hours and 8.8 hours respectively.

 52. What is the appropriate learning curve? 
A. 70 percent
B. 75 percent
C. 80 percent
D. 85 percent
E. 90 percent

 53. What is the expected time required to produce the 40th unit? 
A. 3.2 hours
B. 4.4 hours
C. 5.9 hours
D. 3.7 hours
E. 2.2 hours

 54. What is the average time per unit for the first 30 units? 
A. 4.7 hours
B. 5.9 hours
C. 5.6 hours
D. 4.5 hours
E. 3.6 hours

 55. If a contract for 30 units is canceled after the first 20 units, approximately how much of the expected total direct labor will have been expended to that point? 
A. 73%
B. 55%
C. 61%
D. 50%
E. It is impossible to say without additional information.

 56. Approximately how long will it take to produce the 15th unit? 
A. 4.3 hours
B. 5.5 hours
C. 4.7 hours
D. 6.9 hours
E. 3.4 hours

 57. Which unit, if any, will require approximately one-half the time of the first unit? 
A. 18th unit
B. 19th unit
C. 20th unit
D. 21st unit
E. 22nd unit

 58. Approximately how long will it take to produce the 25th through the 30th units? 
A. 23 hours
B. 49 hours
C. 29 hours
D. 38 hours
E. It is impossible to say without additional information.

  A manager wants to analyze the learning curve associated with producing one of his company's products. Accordingly, he has gathered the following data:
   

 59. What is the learning curve percentage? 
A. 40%.
B. 50%.
C. 75%.
D. 80%.
E. 90%.

 60. How long did it take to produce the first unit? 
A. 5 hours
B. 6 hours
C. 6.25 hours
D. 6.33 hours
E. 6.5 hours

 61. Approximately how long did it take to produce the first four units? 
A. 15 hours
B. 16 hours
C. 18 hours
D. 20 hours
E. 21 hours

 62. Approximately how long will it take to produce the tenth unit? 
A. 1 hour
B. 2 hours
C. 3 hours
D. 4 hours
E. 5 hours

 63. Approximately how long will it take to produce the fifth through tenth units? 
A. 15 hours
B. 16 hours
C. 18 hours
D. 20 hours
E. 21 hours

 64. In which of the following scenarios would an 80% learning curve be especially relevant? 
A. the pursuit of an innovation strategy to stay ahead of competitors
B. the pursuit of a flexibility-based strategy to increase customer satisfaction
C. the pursuit of a customization-based strategy to command premium prices
D. the pursuit of a time-based strategy to gain market share
E. the pursuit of a quality-based strategy to gain customer loyalty

 65. To which of the following challenges are learning curves important considerations? 
A. capacity planning
B. product designs
C. process layouts
D. output-based compensation
E. demand forecasting

 66. Which of the following is an example of a carryover effect? 
A. capacity that was used on older products but that can be used on new products
B. previous experience that is relevant to the current scenario
C. existing products that are still in the maturity phase of their life cycle
D. forecasting errors from previous product lines
E. old supplier contracts that must still be honored

 67. When are learning curves most relevant to managerial decision making in mass production settings? 
A. late in product life-cycles
B. in the maturity phase
C. in the decline phase
D. before processes are stabilized
E. never

 68. Suppose the first unit required 800 hours and the second unit required only 680. Which of the following times for the fourth unit would be consistent with a true learning curve scenario? 
A. 492
B. 587
C. 578
D. 603
E. 583

 

1. Ergonomics is the use of computers and robots in the workplace. 
True    False

 2. Specialization is one of the sources of disagreement between the efficiency and behavioral approaches to job design. 
True    False

 3. One disadvantage of specialization is worker dissatisfaction. 
True    False

 4. The quickest, most effective way to improve an employee's job satisfaction is increase his or her compensation. 
True    False

 5. Job enrichment involves giving a workers a greater share of the total task which is why they feel enriched. 
True    False

 6. Trust is a factor influencing productivity. 
True    False

 7. Many lower level jobs are monotonous and boring. 
True    False

8. Job enrichment involves an increase in the level of responsibility for planning and coordinating tasks. 
True    False

 9. "Self-directed teams" are allowed to make changes in the work processes under their control. 
True    False

 10. "Self-directed teams" help other work groups make changes to their processes. 
True    False

 11. Motivation influences quality and productivity, but not the work environment. 
True    False

 12. One important factor that influences productivity is trust between workers and managers. 
True    False

 13. Ergonomics is an important part of job design to consider when we automate the system. 
True    False

 14. One of the potential benefits of "self-directed teams" is higher productivity and greater worker satisfaction. 
True    False

 15. One of the potential benefits of "self-directed teams" is higher quality. 
True    False

 16. One potential disadvantage of "self-directed teams" is higher training costs. 
True    False

 17. Job design relates to people therefore technology has little impact. 
True    False

 18. Methods analysis cannot be done for new jobs (ones that do not yet exist) since it requires observation of the process. 
True    False

 19. One therblig is the equivalent of one hour of sustained work by one average person. 
True    False

 20. A flow process chart is helpful for visualizing the portions of a work cycle during which the operator and equipment are busy or idle. 
True    False

 21. Predetermined time standards are usually based on observing one very efficient worker performing the task. 
True    False

 22. Therbligs are basic elemental motions. 
True    False

 23. We incorporate the average seriousness of accidents by measuring the number of lost-time accidents per million labor-hours worked. 
True    False

 24. Work measurement concentrates on how long the tasks take to accomplish. 
True    False

 25. Ergonomics is important for preventing common workplace injuries such as back injuries and repetitive-motion injuries. 
True    False

 26. The most widely used method of work measurement is work sampling. 
True    False

 27. For purposes of obtaining good time standards using a stopwatch time study, the analyst should try to avoid having the worker discover he or she is being observed. 
True    False

 28. One factor in determining how many cycles to time in a time study is the degree of variation that is present in the observed times. 
True    False

 29. The normal time in time study is obtained by multiplying the observed time by the performance rating. 
True    False

 30. Studies on worker efficiency and time of day suggest the greatest efficiency is at the end of the day when workers are ‘warmed up'. 
True    False

 31. The normal time for a job is multiplied by the performance rating to obtain the standard time for the job. 
True    False

 32. The design of work systems, because objective standards are used, avoids most ethical issues. 
True    False

 33. The standard time for a job can be obtained by multiplying the normal time by an appropriate allowance factor. 
True    False

 34. Predetermined time standards use historical data from a company's own files. 
True    False

 35. A performance rating of less than 1.0 means that the observed worker was judged to be working at a faster than normal rate - doing the job quicker than normal. 
True    False

 36. Predetermined time standards involve the use of published data regarding how long various activities are expected to take. 
True    False

 37. Work sampling can be used to estimate the proportion of time a machine is idle. 
True    False

 38. Work sampling involves the use of some method of randomizing the observations. 
True    False

 39. An advantage of work sampling, compared to a stopwatch time study, is that observations are spread out over a period of time in work sampling. 
True    False

 40. No stopwatch is required in a work sampling study. 
True    False

 41. Work sampling provides a detailed elemental breakdown of a task for purposes of establishing reliable time standards. 
True    False

 42. Measured day work refers to an output-based system. 
True    False

 43. It would be acceptable to use a group incentive plan for an assembly line operation. 
True    False

 44. Work sampling provides both quick and accurate estimates of activity times. 
True    False

 45. Methods analysis and motion study techniques do not directly consider behavioral aspects of jobs. 
True    False

 46. "Time-based systems" compensate employees according to the time the employee has worked and the amount of output they produce. 
True    False

 47. "Output-based systems" compensate employees according to the amount of output they produce, thereby tying pay directly to performance. 
True    False

 48. A pay system that rewards workers who undergo training that increases their skills is called a "knowledge-based pay system." 
True    False

 49. "Knowledge-based pay systems" pay higher wages or salaries to workers who have completed college than to those who just finished high school. 
True    False

 50. Increasing compensation is always a way to improve worker satisfaction. 
True    False

 51. A worker-machine chart can help identify non-productive parts of a process. 
True    False

 52. A worker-machine chart can be used to determine how many machines an operator can manage. 
True    False

 53. Micromotion studies should be limited to periodic activities where breakthrough improvements are possible. 
True    False

 54. The Occupational Safety and Health Act (OSHA) is a regulatory burden that has been proven to have little impact on the safety and welfare of workers. 
True    False

 55. Management compensation should be based primarily on organizational output. 
True    False

 56. Many management compensation systems are being revised to reflect increased emphasis on quality and customer service. 
True    False

 57. Behavioral approaches to job design include: 
A. Specialization
B. Ergonomics
C. Job Rotation
D. Flow Process Charts
E. SIMO Charts

 58. A major advantage of job specialization in business is increased _________. 
A. motivation
B. opportunity for advancement
C. opportunity for self-fulfillment
D. productivity
E. job enrichment

 59. Which of the following is not generally considered an advantage of specialization? 
A. high productivity
B. low wage costs
C. ease of training employees
D. low equipment costs
E. all are advantages

 60. Process chart symbols don't include ________. 
A. Delay
B. Inspection
C. Operation
D. Rejection
E. Storage

 61. Which of the following most closely describes job enlargement? 
A. horizontal loading
B. increasing the level of responsibility associated with a job
C. transferring workers through a series of jobs to increase their scope of experience
D. increasing the amount of workspace assigned to a worker
E. assigning two jobs to the same worker

 62. A behavioral approach to job design which increases responsibility for planning and coordinating tasks is job: 
A. enlargement
B. rotation
C. enrichment
D. involvement
E. enhancement

 63. Which of the following concerns is not one that job designers focus on? 
A. what will be done in a job
B. who will do the job
C. how the job will be done
D. when should the job be completed
E. where the job will be done

 64. Which of the following is not a potential benefit of the use of self-directed teams? 
A. higher quality
B. higher productivity
C. greater worker satisfaction
D. greater satisfaction for middle managers
E. lower turnover

 65. A SIMO chart includes: 
A. Delay
B. Storage
C. Transportation
D. Left/Right hand movements
E. Inspection

 66. Determining the number of cycles to observe is an element of ________. 
A. Stop watch time study
B. Standard elemental times
C. Predetermined time standards
D. Work sampling
E. MTM tables

 67. The chart used to review the overall sequence of an operation by focusing on either the movements of the operator or materials is called a _________. 
A. SIMO-chart
B. Gantt chart
C. Worker-materials chart
D. Flow process chart
E. Multi-activity chart

 68. The methods analysis chart which describes the overall sequence of operations, transportation, storage, delays, and inspection is a: 
A. flow process chart
B. worker-machine chart
C. gang process chart
D. simultaneous-motion (SIMO) chart
E. time/efficiency chart

 69. The symbols for operation, storage, transportation, inspection, and delay would usually be found on which type of chart? 
A. Flow process
B. Gantt
C. Simultaneous motion
D. Worker-machine
E. Delay analysis

 70. The chart used to focus on busy and idle portions of a work cycle is a: 
A. Worker-machine chart
B. Gantt chart
C. SIMO-chart
D. Idle chart
E. Flow process chart

 71. The methods analysis chart which describes the portions of a work cycle during which an operator and equipment are busy or idle is a: 
A. flow process chart
B. worker-machine chart
C. gang process chart
D. simultaneous-motion (SIMO) chart
E. time/efficiency chart

 72. In methods analysis, a "therblig" is a: 
A. charting method of analysis
B. job enrichment technique
C. dummy task
D. basic elemental motion
E. fraction (.0006) of a minute

 73. The methods analysis chart which describes the movements of both hands at the same time is a: 
A. flow process chart
B. worker-machine chart
C. gang process chart
D. simultaneous-motion (SIMO) chart
E. time/efficiency chart

 74. One form of long term team that is increasingly being used, especially in lean production settings, is: 
A. Quality circle
B. Product Design
C. Self-directed
D. Self-improvement
E. Mandatory

 75. In a stopwatch time study, the number of cycles that must be timed is a function of: 
A. the variability of observed times
B. the desired accuracy for the estimated job time
C. the desired confidence for the estimated job time
D. all of the above
E. none of the above

 76. What is the effect of an increase in the desired confidence level on the number of observations necessary in a time study? 
A. increases
B. decreases
C. unaffected
D. may increase or decrease, depending on the sample standard deviation
E. impossible to say without additional information

 77. In a stopwatch time study, the average time it takes a given worker to perform a task a certain number of times is the: 
A. observed time
B. normal time
C. standard time
D. allowance time
E. performance rating time

 78. Which is not a requirement for an effective team? 
A. talent and skills to meet goals.
B. one or more members representing supervision.
C. a system of reinforcement and celebration.
D. clearly stated and commonly held vision and goals.
E. effective and skilled interpersonal relations.

 79. A job had an observed cycle time of four minutes, a performance rating of 80 percent, and an allowance factor that was 20 percent of job time. Normal time for the job in minutes is: 
A. 3.20
B. 3.84
C. 4.00
D. 4.80
E. 5.00

 80. When performing a time study, the analyst converts the observed time into the time an "average" worker would require working at an acceptable pace by using which of the following? 
A. allowance factors
B. MTM
C. methods analysis
D. performance rating
E. analysis of therbligs

 81. In stopwatch time study, adjusting the normal time by an allowance factor for normal delays and interruptions results in the: 
A. observed time
B. normal time
C. standard time
D. allowance time
E. performance rating time

 82. A job had an observed time of 10 minutes, a performance rating of .90, and an allowance factor of 20 percent of job time. Twenty-five cycles were timed. Standard time for the job in minutes is: 
A. 10.0
B. 10.8
C. 12.5
D. 15.0
E. depends on the number of cycles observed

 83. A job has a normal time of 12 minutes, a performance rating of .80, and an allowance factor of 20 percent of job time. The standard time for this job in minutes is: 
A. 11.52
B. 12
C. 14.4
D. 15
E. depends on the number of cycles observed

 84. Standard times derived from a firm's historical data are known as: 
A. predetermined times
B. MTM
C. work sampling times
D. judgmental times
E. standard elemental times

 85. Allowance percentages normally would not include: 
A. noise levels
B. monotony
C. personal phone calls
D. weight lifted
E. rest room allowances

 86. A technique for estimating the proportion of time a worker spends on various activities is: 
A. stopwatch time study
B. standard elemental (historical) times
C. simultaneous motion study
D. predetermined (published) time standards
E. work sampling

 87. The technique which can be used to estimate the percentage of time a worker or piece of equipment is idle is known as: 
A. MTM
B. work sampling
C. methods analysis
D. micro motion study
E. none of these

 88. Which sample proportion will require the largest number of work sampling observations? 
A. .05
B. .25
C. .50
D. .75
E. .95

 89. What will be the effect on sample size in work sampling of increasing the permissible maximum error? 
A. increase the number of observations needed
B. decrease the number of observations needed
C. no effect on sample size
D. sometimes increase and sometimes decrease the sample size, depending on the analyst
E. impossible to say without additional information

 90. In work sampling, observations should be taken: 
A. at the same time each day
B. within a short period of time
C. at randomly determined times
D. once every hour
E. once every day

 91. Which of the following is not an advantage of work sampling compared to stopwatch time study? 
A. There is little or no disruption of work.
B. It is less susceptible to short-term fluctuations.
C. Workers are less resentful.
D. It is less costly and less time-consuming.
E. It is better suited for short, repetitive tasks.

 92. Which of the following is not characteristic of time-based compensation plans? 
A. stable labor costs
B. easier to administer than output-based plans
C. stable pay for workers
D. simpler wage computations than output-based plans
E. lower cost per unit than output-based plans

 93. Which of the following statements should not characterize an operations strategy toward the design of work systems? 
A. Manufacturing technology is the heart of a business.
B. Workers can make or break a business.
C. Workers can be a valuable source of insights.
D. A spirit of cooperation can contribute to success.
E. Workers can be proud and respected.

 94. The design of work systems involves: 
A. work measurement
B. job design
C. compensation
D. all of the above
E. use of outside human resource consultants

 95. Methods analysis and motion study techniques develop which aspect of jobs? 
A. behavioral aspects
B. efficiency aspects
C. pay levels
D. all of the above
E. none of the above

 96. A disadvantage of teams is: 
A. higher quality
B. higher productivity
C. greater worker satisfaction
D. team member conflict
E. lower turnover

 A Methods and Measurements Analyst needs to develop a time standard for a certain task. In a preliminary study, he observed one of his workers perform this task five times, with the following results:
   

 104. What is the observed time (OT) for this task? 
A. 80 seconds
B. 84 seconds
C. 160 seconds
D. 240 seconds
E. 400 seconds

 105. What is the normal time (NT) for this task if the employee worked at a twenty-five percent faster pace than average? 
A. 80 seconds
B. 96 seconds
C. 100 seconds
D. 120 seconds
E. 125 seconds

 106. What is the standard time (ST) for this task if the employee worked at a twenty-five percent faster pace than is average and an allowance of twenty percent of the workday is used? 
A. 80 seconds
B. 96 seconds
C. 100 seconds
D. 120 seconds
E. 125 seconds

 107. What is the standard time (ST) for this task if the employee worked at a twenty-five percent faster pace than is average and an allowance of twenty percent of job time is used? 
A. 80 seconds
B. 96 seconds
C. 100 seconds
D. 120 seconds
E. 125 seconds

 108. How many observations should be made if the analyst wants to be 99.74 percent confident that the maximum error in the observed time is two seconds? Assume that the standard deviation of each task time is 4 seconds. 
A. 5
B. 6
C. 25
D. 36
E. 49

  The owner of Kat Motel wants to develop a time standard for the task of cleaning a cat cage. In a preliminary study, she observed one of her workers perform this task six times, with the following results:
   

 109. What is the observed time (OT) for this task? 
A. 81 seconds
B. 90 seconds
C. 99 seconds
D. 108 seconds
E. 540 seconds

 110. What is the normal time (NT) for this task if the employee worked at a fifty-percent faster pace than is average? 
A. 45 seconds
B. 60 seconds
C. 90 seconds
D. 135 seconds
E. 180 seconds

 111. What is the standard time (ST) for this task if the employee worked at a fifty-percent faster pace than is average, and an allowance of twenty percent of job time is used? 
A. 90 seconds
B. 99 seconds
C. 100 seconds
D. 162 seconds
E. 150 seconds

 112. What is the standard time (ST) for this task if the employee worked at a fifty-percent faster pace than is average, and an allowance of ten percent of the workday is used? 
A. 90 seconds
B. 99 seconds
C. 100 seconds
D. 168.8 seconds
E. 150 seconds

 113. How many observations should be made if she wants to be 95.44 percent confident that the maximum error in the observed time is two seconds? Assume that the standard deviation of the task time is 6 seconds. 
A. 5
B. 6
C. 30
D. 36
E. 49

  A Methods and Measurements Analyst for Timepiece, Inc. needs to develop a time standard for the task of attaching a watch to a wristband. In a preliminary study, he observed one of his workers perform this task five times, with the following results:
   

 114. What is the observed time (OT) for this task? 
A. 20 seconds
B. 27 seconds
C. 46 seconds
D. 66 seconds
E. 100 seconds

 115. What is the normal time (NT) for this task if the employee worked at a twenty- percent faster pace than is average? 
A. 16.7 seconds
B. 20 seconds
C. 24 seconds
D. 25 seconds
E. 100 seconds

 116. What is the standard time (ST) for this task if the employee worked at a twenty- percent faster pace than is average, and an allowance of twenty percent of the workday is used? 
A. 20 seconds
B. 24 seconds
C. 25 seconds
D. 28.8 seconds
E. 30 seconds

 117. What is the standard time (ST) for this task if the employee worked at a twenty-percent faster pace than is average, and an allowance of twenty percent of job time is used? 
A. 4.5 seconds
B. 5 seconds
C. 20 seconds
D. 28.8 seconds
E. 100 seconds

 118. How many observations should be made if he wants to be 95.44 percent confident that the maximum error in the observed time is one second? Assume that the standard deviation of the task time is 5 seconds. 
A. 5
B. 10
C. 25
D. 100
E. 121

  A Methods and Measurement Analyst wants to develop a time standard for a certain task. In a preliminary study, he observed one worker perform the task six times with an average observed time of 20 seconds and a standard deviation of 2 seconds.

 119. What is the normal time (NT) for this task if the employee worked at a twenty percent faster pace than is average? 
A. 4 seconds
B. 16.7 seconds
C. 20 seconds
D. 24 seconds
E. 100 seconds

 120. What is the standard time (ST) for this task if the employee worked at a twenty percent faster pace than is average, and an allowance of twenty-five percent of the workday is used? 
A. 20 seconds
B. 25 seconds
C. 26.7 seconds
D. 30 seconds
E. 32 seconds

 121. What is the standard time (ST) for this task if the employee worked at a twenty percent faster pace than is average, and an allowance of twenty-five percent of job time is used? 
A. 20 seconds
B. 25 seconds
C. 26.7 seconds
D. 30 seconds
E. 32 seconds

 122. How many observations should be made if he wants to be 95.44 percent confident that the maximum error in the observed time is one second? 
A. 3
B. 4
C. 13.3
D. 16
E. 25

  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 5 seconds.

 123. What is the normal time (NT) for this task if the bartender worked at a twenty percent faster pace than is average? 
A. 75 seconds
B. 90 seconds
C. 108 seconds
D. 110 seconds
E. 112.5 seconds

 124. What is the standard time (ST) for this task if the bartender worked at a twenty percent faster pace than is average, and an allowance of twenty percent of the workday is used? 
A. 112.5 seconds
B. 120 seconds
C. 135 seconds
D. 144 seconds
E. 150 seconds

 125. What is the standard time (ST) for this task if the bartender worked at a twenty percent faster pace than is average, and an allowance of ten percent of job time is used? 
A. 135 seconds
B. 123.8 seconds
C. 118.8 seconds
D. 120 seconds
E. 112.5 seconds

 126. How many observations should be made if he wants to be 95.44 percent confident that the maximum error in the observed time is one second? 
A. 64
B. 86
C. 100
D. 144
E. 169

  A Methods and Measurements Analyst for Digital Devices needs to develop a time standard for the task of assembling a computer mouse. In a preliminary study, she observed one of her workers perform this task six times with the following results:
   

 127. What is the observed time (OT) for this task? 
A. 34 seconds
B. 40 seconds
C. 46 seconds
D. 48 seconds
E. 240 seconds

 128. What is the normal time (NT) for this task if the employee worked at a 20% faster pace than is average? 
A. 8 seconds
B. 32 seconds
C. 40 seconds
D. 48 seconds
E. 200 seconds

 129. What is the standard time (ST) for this task if the employee worked at a 20% faster pace than is average and an allowance of 25% of the workday is used? 
A. 40 seconds
B. 50 seconds
C. 53.3 seconds
D. 60 seconds
E. 64 seconds

 130. What is the standard time (ST) for this task if the employee worked at a 20% faster pace than is average and an allowance of 25% of job time is used? 
A. 40 seconds
B. 50 seconds
C. 53.3 seconds
D. 60 seconds
E. 64 seconds

 131. How many observations should be made if she wants to be 0.8664 confident that the maximum error in the observed time is 0.5 second? Assume that the standard deviation of the task time is 4 seconds. 
A. 10
B. 12
C. 120
D. 144
E. 169

  The manager of Lawn and Garden Services would like to estimate the proportion of her employees' time spent performing various gardening or lawn care activities. She has made 400 random observations of a typical worker, with the following results:
   

 132. What is the most likely true proportion of time spent mowing? 
A. 0
B. .1
C. .2
D. .5
E. 1

 133. What is the probability that the true proportion of time spent mowing is exactly equal to the sample proportion? 
A. 0
B. .1
C. .2
D. .5
E. 1

 134. How confident can the manager be that the true proportion of time spent mowing is between .45 and .55? 
A. 90 percent
B. 95 percent
C. 95.5 percent
D. 99 percent
E. 99.7 percent

 135. Between what limits can the manager be 68.26 percent confident the true proportion of time spent mowing is? 
A. 0 and .683
B. .475 and .525
C. .45 and .55
D. .425 and .575
E. .4 and .6

 136. If the manager wants to be 95.44 percent confident that the true proportion of time spent mowing is within .02 (plus or minus) of the sample proportion, what should be her sample size? 
A. 400
B. 1,000
C. 1,600
D. 2,000
E. 2,500

 

1. Location decisions are basically one-time decisions usually made by new organizations. 
True    False

 2. The fact that most types of firms are located in every section of the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another. 
True    False

 3. You can't make a mistake by locating where labor costs are low. 
True    False

 4. Advanced communications has aided globalization. 
True    False

 5. The first step in developing location alternatives is identifying important factors. 
True    False

 6. An example of a regional factor in location planning is the location of our markets (either existing or potential). 
True    False

 7. A strategy that emphasizes convenience for the customers would probably select a single very large facility. 
True    False

8. For service organizations, the dominant factors in location analysis usually are market-related. 
True    False

 9. Global Positioning Systems (GPS) use the Center of Gravity method to establish starting grid co-ordinates. 
True    False

 10. Labor laws are an important site-related factor. 
True    False

 11. Web-based, retail businesses should be located near the customer to reduce their long distance phone charges. 
True    False

 12. For service and retail stores, a prime factor in location analysis is customer access. 
True    False

 13. Retail businesses generally prefer locations that are not near other retailers, as this reduces their competition. 
True    False

 14. Technology has made communication with global operations as easy as local communication. 
True    False

 15. Factor rating is limited to quantitative information concerning location decisions. 
True    False

 16. As a result of the factor rating analysis, a manager may sometimes reject all of the alternatives under consideration when the composite scores are below the minimum threshold value. 
True    False

 17. The lower cost of foreign labor is often offset by lower levels of productivity. 
True    False

 18. The center of gravity method is a location planning technique that determines a composite score from weighted factor evaluation. 
True    False

 19. The center of gravity method is useful in location planning for the location of a distribution center. 
True    False

 20. The center of gravity method of location planning is accurate only when the quantities to be shipped to each location are equal. 
True    False

 21. Location decisions are closely tied to an organization's strategies. 
True    False

 22. A "micro-factory" is a small, automated facility with a narrow product focus located near major markets. 
True    False

 23. One of the reasons for the importance of location decisions is its strategic importance to the supply chains. 
True    False

 24. Nearness to raw materials would be most important to a ¼ 
A. grocery store
B. tax preparation service
C. manufacturing company
D. post office
E. hospital

 25. A one-hour photo processing machine in a Wal-Mart store is an example of a _________. 
A. micro-factory
B. downsize strategy
C. diversified strategy
D. lean production system
E. falling price strategy

 26. Which statement best characterizes a typical search for location alternatives? 
A. identify the best location choice
B. minimize cost consequences
C. maximize associated profits
D. locate near markets
E. identify acceptable locations

 27. Which of the following is not a location option that management can consider in location planning? 
A. expand an existing facility
B. add a new location
C. relocate from one location to another
D. do nothing
E. All are possible options.

 28. Which of the following is the last step in the procedure for making location decisions? 
A. determine the evaluation criteria
B. identify important factors
C. develop location alternatives
D. evaluate alternatives and make a selection
E. request input regarding alternatives

 29. When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is ___________. 
A. Linear programming
B. Consumer surveys
C. Factor rating
D. Transportation models
E. Center of gravity methods

 30. The center of gravity method is used to _______ travel time, distance and costs. 
A. Normalize
B. Eliminate
C. Average
D. Minimize
E. Document

 31. In location planning, the location of raw materials, the location of markets, and labor factors are: 
A. regional factors
B. community factors
C. site-related factors
D. national factors
E. minor considerations

 32. Software systems known as GIS help in location analysis. The initials GIS stand for _______. 
A. Graphic Interface Systems
B. Global Integrated Software
C. Graded Information Systems
D. Geo Intensive Software
E. Geographical Information System

 33. Facilities, personnel and operations that are located around the world are called: 
A. non-domestic
B. diversified operations
C. globalization
D. worldwide presence
E. virtual organization

 34. Some communities offer financial and other incentives to ______ new businesses. 
A. Tax
B. Attract
C. Marginalize
D. Incorporate
E. Zone

 35. Location options don't usually include: 
A. expansion
B. a contract
C. adding new facilities
D. moving
E. doing nothing

 36. Cultural differences, Customer preferences, Labor and Resources are factors relating to: 
A. Regional choices
B. Site selection
C. Zoning
D. Product design
E. Foreign locations

 37. The method for evaluating location alternatives which uses their total cost curves is: 
A. cost-volume analysis
B. transportation model analysis
C. factor rating analysis
D. linear regression analysis
E. MODI analysis

 38. The method for evaluating location alternatives which minimizes shipping costs between multiple sending and receiving locations is: 
A. cost-volume analysis
B. transportation model analysis
C. factor rating analysis
D. linear regression analysis
E. MODI analysis

 39. The method for evaluating location alternatives which uses their composite (weighted-average) scores is: 
A. cost-volume analysis
B. transportation model analysis
C. factor rating analysis
D. linear regression analysis
E. MODI analysis

 40. An approach to location analysis that can include both qualitative and quantitative considerations is: 
A. location cost-volume
B. factor rating
C. transportation model
D. expected value (net present value)
E. financial analysis

 41. A location analysis has been narrowed down to two locations, Akron and Boston. The main factors in the decision will be the supply of raw materials, which has a weight of .50, transportation cost, which has a weight of .40, and labor cost, which has a weight of .10. The scores for raw materials, transportation, and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should: 
A. be indifferent between these locations
B. choose Akron
C. choose Boston
D. reject both locations
E. build a plant in both cities

42. A manager must decide between two location alternatives, Boston and Chicago. Boston would have annual fixed costs of $70,000, transportation costs of $60 per unit, and labor and material costs of $200 per unit. Chicago would have annual fixed costs of $90,000, transportation costs of $40 per unit, and labor and material costs of $170 per unit. Revenue will be $300 per unit.
(A) Which alternative would yield the higher profit for an annual demand of 3,000 units?
(B) Would the two locations yield the same profit at a certain volume? If so, at what volume would that be? 

43. A firm is trying to decide between two location alternatives, Albany and Baltimore. Albany would result in annual fixed costs of $60,000, labor costs of $7 per unit, material costs of $10 per unit, transportation costs of $15 per unit, and revenue per unit of $50. Baltimore would have annual fixed costs of $80,000, labor costs of $6 per unit, material costs of $9 per unit, transportation costs of $14 per unit, and revenue per unit of $48.
(A) At an annual volume of 9,000, which would yield the higher profit?
(B) At what annual volume would management be indifferent between the two alternatives in terms of annual profits? 

44. Given the information below on scores of three location alternatives, which alternative would you recommend? Why?
    

45. Determine the center of gravity location for the destinations and shipping quantities shown below:
    

46. Determine the optimum location for a distribution center to serve the following locations. Shipments to each location will be approximately equal.
    

 The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. Skull's president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows:
   

 47. What would be total annual costs for the Alpha Ave. location with twenty persons living there? 
A. $5,400
B. $4,000
C. $5,000
D. $7,000
E. $9,000

 48. What would be total annual costs for either location at the point of indifference? 
A. $13,000
B. $13,350
C. $9,000
D. $17,000
E. $19,200

 49. If it is estimated that thirty persons will be living in this new chapter house, which location should the Skulls select? 
A. Alpha Ave.
B. Beta Blvd.
C. either Alpha Ave. or Beta Blvd.
D. reject both Alpha Ave. nor Beta Blvd.
E. become a virtual organization

 50. If it is estimated that thirty persons will be living in this new chapter house, what would be the Skull's annual cost savings by selecting the less costly location, rather than the more costly? 
A. $0
B. $1,500
C. $200
D. $150
E. $350

     

 

51. What are total costs for site A for a quantity of 5,000 units per year? 

52. What are total costs for site B for a quantity of 5,000 units per year? 

53. What are total costs for site C for a quantity of 5,000 units per year? 

54. For what quantity would you be indifferent between selecting site A or site B? 

55. For what quantity would you be indifferent between selecting site B or site C? 

56. For what range of output would you prefer site A? 

57. For what range of output would you prefer site B? 

58. For what range of output would you prefer site C? 

59. Which site would you prefer for a quantity of 20,000 units per year? 

60. For the preferred site for 20,000 units per year, what would be your total costs? 

61. For the preferred site for 20,000 units per year, what would be your cost savings compared to each of the other two sites? 

 A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows:
   

 62. At what annual output would the company be indifferent between the two locations? 
A. 60,000 units
B. 15,000 units
C. 10,000 units
D. 20,000 units
E. 4,000 units

 63. What would the total annual costs be for the Phoenix location with an annual output of 10,000 units? 
A. $280,000
B. $140,000
C. $220,000
D. $300,000
E. $156,000

 64. What would be the total annual costs at the point of indifference? 
A. $300,000
B. $240,000
C. $380,000
D. $220,000
E. $760,000

 65. If annual demand is estimated to be 20,000 units, which location should the company select? 
A. Atlanta
B. Phoenix
C. either Atlanta or Phoenix
D. reject both Atlanta and Phoenix
E. build at both locations

 66. If the annual demand will be 20,000 units, what would be the cost advantage of the better location? 
A. $20,000
B. $460,000
C. $480,000
D. $80,000
E. $60,000

  A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below:
   

 67. What is the composite score for location A? 
A. 76
B. 75
C. 78
D. 74
E. 76.33

 68. What is the composite score for location B? 
A. 76
B. 75
C. 78
D. 74
E. 76.33

 69. What is the composite score for location C? 
A. 76
B. 75
C. 78
D. 74
E. 76.33

 70. If the selection criteria is to be the greatest composite score, management should choose: 
A. location A
B. location B
C. location C
D. either B or C
E. to reject all locations

 71. If the decisions rule is to select the location with the greatest composite score exceeding 80, management should choose: 
A. location A
B. location B
C. location C
D. either B or C
E. to reject all locations

  A clothing manufacturer produces clothing in five locations in the U. S. In a move to vertical integration, the company is planning a new fabric production plant that will supply fabric to all five clothing plants. The clothing plants have been located on a coordinate system as follows:
   

 72. If the amount of fabric shipped to each plant is equal, what is the optimal location for the fabric plant? 
A. 5, 5
B. 6, 4
C. 4, 6
D. 6, 2
E. 5, 4

 73. Shipments of fabric to each plant vary per week as follows: plant A, 200 units; plant B, 400 units; plant C, 300 units; plant D, 300 units; and plant E, 200 units. What is the optimal location for the fabric plant? 
A. 6.2, 3.0
B. 6.0, 4.0
C. 6.5, 5.3
D. 5.6, 4.4
E. 5.0, 3.0

  A hardware distributor has regional warehouses at the locations shown below. The company wants to locate a new central distribution center to serve this warehouse network.
   

74. If weekly shipments to each warehouse will be approximately equal, what is the optimal location for the distribution center? 
A. 5, 5
B. 5, 4
C. 4, 5
D. 5, 6
E. 6, 5

 75. Weekly shipments to each warehouse will be: WH1, 100; WH2, 150; WH3, 120; WH4, 150; and WH5, 120. What is the optimal location of the distribution center? 
A. 5.1, 4.2
B. 5.2, 4.0
C. 5.1, 5.1
D. 4.2, 5.1
E. 4.9, 5.2

 76. Which of the following circumstances would be least likely to lead to a need for a new location? 
A. Shifting of markets.
B. Depletion of basic inputs.
C. Growth in demand that is leading to greater utilization of existing capacity.
D. The need to expand into new markets.
E. The opportunity to take advantage of globalization trends.

77. Which of the following is least important as a consideration for a firm at the beginning of a supply chain? 
A. Access to end consumers
B. Access to resources
C. Proximity to customers
D. Access to transportation infrastructure
E. Access to productive labor

 78. 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

 79. 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 550 units? 
A. $105,200
B. $102,500
C. $100,250
D. $100,520
E. $105,500

 80. Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. Location choice J has monthly fixed costs of $150,000 and per-unit variable costs of $9. At what volume would these locations have equal total costs? 
A. 30,000 units
B. 25,000 units
C. 40,000 units
D. 50,000 units
E. 60,000 units

 

1.
3 cows eat grass for 6 hours to cover 1,100 square feet of grass.

Somehow, eating grass has caused the cows to now cover 1,270 square feet of grass.

What is the productivity increase? Write your answer at a percent with 1 decimal. Do not write the %.
 
 
2.
Although they do not guarantee optimal solutions, ________ are useful in finding reasonable solutions when the number of possible options is overwhelming.
 
 
5.
Avoiding bottlenecks is the primary goal of product design
 
 
6.
"Balance delay" is another name for the percentage of idle time in a product layout
 
 
7.
Bob's Market is a local grocery store which buys its products from local sources, such as farmers and ranchers. It sells products mainly to families living in the surrounding neighborhoods. Who would be considered a downstream entity in the company's supply chain?
 
 
8.
Bob's Market is a local grocery store which buys its products from local sources, such as farmers and ranchers. It sells products mainly to families living in the surrounding neighborhoods. Who would be considered an upstream entity in the company's supply chain?
 
 
9.
Capacity decisions are usually one-time decisions; once they have been made, we know the limits of our operations.
 
 
10.
Capacity decisions often involve a long-term commitment of resources which, when implemented, are difficult or impossible to modify without major added costs.
 
 
11.
Capacity in excess of expected demand that is intended to offset uncertainty is a:
 
 
14.
A chain of production is the same thing as a supply chain.
 
 
15.
Continuous processing is the best way to produce customized output.
 
 
20.
The estimation of costs is generally most difficult when the ________ process has been chosen.
 
 
21.
An example of automated services is:
 
 
22.
The fact that most types of firms are located in every section of the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another.
 
 
23.
An idle percentage of zero means a line is perfectly balanced
 
 
24.
Improving efficiency will guarantee a similar improvement in productivity.
 
 
25.
The internet has made it easier to outsource jobs that don't need to be done in-house, like tech support, which creates the ability to better focus on the quality of in-house jobs that require more hands-on control.
 
 
26.
A model is NOT "an abstraction of reality"
 
 
27.
One concern in the design of production systems is the degree of standardization.
 
 
28.
Operations, marketing, and finance function independently of each other in most organizations.
 
 
29.
The operations of the manager are:
 
 
 
 
 
 
 
 
 
 
 
 

31.
The "Pareto Principle" states that a relatively few number of things are actually responsible for a majority of the impact.
 
 
36.
Production systems with customized outputs typically have relatively:
 
 
38.
Product layouts can more easily adapt to variations in product requirements than process layouts can.
 
 
39.
The ratio of actual output to design capacity is:
 
 
40.
Retail businesses generally prefer locations that are not near other retailers, as this reduces their competition.
 
 
41.
Service often requires relatively greater labor content when compared to manufacturing.
 
 
42.
Standardization has the advantage of reducing variability.
 
 
43.
A super chicken lays 250 total eggs during 10 hours. After 10 hours, the chicken takes a 30 minute break. What is the productivity in eggs per hour? Round to 2 decimal places.
 
 
45.
This study stated that people act differently when they are being paid attention to. More specifically, the study stated that people perform better when they feel that someone above them feels that their job is important. What was this study called?
 
 
47.
What does an operations manager really do?
 
 
48.
What field is primarily impacted by operations analytics?
 
 
49.
When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is:
 
 
50.
Which circumstance results in an entity needing to discount prices to eliminate aging and obsolete stock?
 
 
51.
Which circumstance results in an entity suffering from a stockout situation, which may anger customers and cause the company to lose business?
 
 
 
 
 
 
 
 
 

52.
Which of the following are examples of assignable variation?

Bad inputs

Poor methods

Machines in need of adjustment

All of the above
 
 
53.
Which of the following is a system in which low-skilled workers use specialized equipment to produce high volumes of standardized goods?
 
 
54.
Which of these items would be most likely to be made with a fixed-position layout?
 
 
55.
Which one of these drive a machine tool by communicating the details of the operations to be performed?
 
 
56.
Who is considered to have been the big player in the Industrial Revolution?
 
 
57.
With what types of measurements about outputs might operations managers be concerned?
 
 
 

 

 
 
 
RFID chips:

(I) are used to track goods in distribution.
(II) are used to track job progress in production.
(III) are used to provide special instructions to operators.
(IV) can be used in inventory record keeping. 

A. I, II, and IV
B. II, III, and IV
C. I and II only
D. IV only
E. II and III only
 
 
 
A car rental agency uses 96 boxes of staples a year. The boxes cost $4 each. It costs $10 to order staples, and carrying costs are $.80 per box on an annual basis.

Determine:

(A) the order quantity that will minimize the sum of ordering and holding boxes of staples
(B) the annual cost of ordering and carrying the boxes of staples

D = 96 boxes/year
S = $10
H = $.80 per box-year 

A. a) 56 b) $40.43
B. a) 48.99 b) $39.19
C. a) 35 b) $22.53
D. a) 38 b) $20.79
E. a) 96 b) $205.74
 
 
 
Logistics includes all of these except: 
A. outgoing shipments of goods or materials.
B. customer selection.
C. returned goods processing.
D. incoming shipments of goods or materials.
E. the movement of materials within a production facility.
 
 
 
The more __________ a company's supply chain, the more difficult it is to ensure that the supply chain is managed ethically. 
A. interconnected
B. global
C. visible
D. shortened
E. competitive
 
 
 
One of the biggest ethical risks in supply chain management is that the __________ supply chain member tends to be the one that suffers the blame and/or lost goodwill when something goes wrong. 
A. most responsible
B. most visible
C. supplying
D. most ethical
E. buying
 
 
 
Which of the following quality control sample statistics indicates a quality characteristic that is an attribute? 
A. Range
B. Proportion
C. Standard Deviation
D. Mean
E. Variance
 
 
 
In the basic EOQ model, an annual demand of 40 units, an ordering cost of $5, and a holding cost of $1 per unit per year will result in an EOQ of: 
A. 200
B. 400
C. 20
D. 600
E. square root of 200
 
 
 
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 10 percent of job time is used? 
A. 135 seconds
B. 112.5 seconds
C. 118.8 seconds
D. 123.8 seconds
E. 120 seconds
 
 
 
Inspection is a(n): 
A. control.
B. prevention.
C. corrective.
D. appraisal.
E. monitoring.
 
 
 
Strategies to address supply chain risks include:

(I) risk avoidance.
(II) risk reduction.
(III) risk projection.
(IV) risk sharing. 

A. II and III only
B. II and IV only
C. I, II, III, and IV
D. I, II, and IV only
E. I and IV only
 
 
 
A stock or store of goods is called a(n): 
A. retailer.
B. bundler.
C. supply chain.
D. inventory.
E. servicer.
 
 
 
A time-ordered plot of representative sample statistics is called a(n): 
A. Gantt chart.
B. up-down matrix.
C. standard deviation table.
D. simo chart.
E. control chart.
 
 
 
Giving a worker a larger portion of the total task is known as job:
 
 
 
Process chart symbols do not include: 
A. Operation
B. Storage
C. Inspection
D. Delay
E. Rejection
 
 
 
A control chart used to monitor the process mean is the: 
A. Gantt chart.
B. c-chart.
C. R-chart.
D. p-chart.
E. x-bar chart.
 
 
 
True or False: In the A-B-C approach, C items typically represent about 15 percent of the number of items, but 60 percent of the dollar usage.
 
 
 
True of False: A retail store that carries twice as much inventory as its competitor will provide twice the customer service level.
 
 
 
 
 
 
 
 
 
 

 
 
 
True or False: Job enrichment involves giving a workers a greater share of the total task, which is why they feel enriched.
 
 
 
True or False: The quickest, most effective way to improve an employee's job satisfaction is to increase his or her compensation
 
 
 
True or False: The objective of inventory management is to minimize the cost of holding inventory.
 
 
 
True or False: An organization achieves quality by consistently meeting its competitors' standards.
 
 
 
True or False: Attributes need to be measured, whereas variable data can be counted.
 
 
 
True or False: EOQ inventory models are basically concerned with the timing of orders.
 
 
 
True or False: In supply chain organizations, functions must operate independently of each other.
 
 
 
True or False: Range charts are used mainly with attribute data.
 
 
 
True or False: The optimum level of inspection occurs when we catch at least 98.6 percent of the defects.
 
 
 
True of False: In the quantity discount model, the optimum quantity will always be found on the lowest total cost curve.
 
 
 
True or False: Traffic management refers to truck movement within our parking areas.
 
 
 
True or False: Processes that are in control eliminate variations.
 
 
 
Cause-and-effect diagrams are sometimes called:
 
 
 
The Deming Prize was established by the:
 
 
 
In addition to correcting substandard work, employees have an ethical obligation to __________ whatever led to the quality problem as well.
 
 
 
True or False: The total cost curve is relatively flat near the EOQ.
 
 
 
True or False: High-cost, low-volume items often require careful inspection since we make them so infrequently.
 
 
 
True of False: The two main concerns of inventory control relate to the costs and the level of customer service.
 
 
 
True or False: Every business organization is part of at least one supply chain.
 
 
 
True or False: Business organizations that achieve good quality benefit in a variety of ways, including a positive reputation for quality, increased customer loyalty, and lower production costs.
 
 
 
True or False: A lower control limit must by definition be a value less than an upper control limit.
 
 
 
True or False: A company's supply chain involves the flow of materials and information from suppliers, through production, to the end users.
 
 
 
True or False: The goal of supply chain management is to synchronize supply and demand of all of the organizations that are part of the chain.
 
 
 
 
 
 
 

 

1.
Accuracy in forecasting can be measured by:

A. MTE.
B. MRP.
C. MTM.
D. MPS.
E. MSE.
 
 
2.
Although transitioning to a lean system can be a powerful means of improving performance, some believe that using __________ along with lean can lead to even better results. 

A. JIT
B. Six Sigma 
C. EOQ
D. jidoka
E. kaizen
 
 
3.
The amount of inspection needed depends on __________ and __________.

A. the amount of automation; the reliability of inspectors
B. the quality of the supplier; the target market of the process
C. the cost of the item being inspected; the use of the item being inspected
D. the costs of inspection; the costs of passing on defective items
E. where in the process the inspection occurs; the volume of the process
 
 
4.
The Balanced Scorecard is a useful tool for helping managers translate their strategy into action in the following areas:

A. The Environment; The Community; Suppliers; Other Stakeholders
B. Strategy; Tactics; Productivity; Profitability
C. Sustainability; Flexibility; Efficiency; Technology
D. Customization; Standardization; Efficiency; Effectiveness
E. Customers; Financial; Internal Business Processes; Learning and Growth
 
 
5.
The Baldrige Award aims to:

(I) publicize successful quality programs.
(II) recognize quality achievements of U.S. companies.
(III) stimulate efforts to improve quality.
(IV) distribute the grant money available for improved quality.

A. I, II, and III only
B. I, II, III, and IV
C. II and III only
D. I and II only
E. I and IV only
 
 
6.
Before a dimension of quality can be made operationally useful, it must be restated in some ___________ form.

A. certifiable
B. marketable
C. qualitative
D. measurable
E. manipulative
 
 
7.
Buying goods or services instead of producing or providing them in-house is called:

A. internationalization.
B. downsizing.
C. outsourcing. 
D. vertical integration.
E. entrepreneurship.
 
 
8.
Capacity in excess of expected demand that is intended to offset uncertainty is a:

A. line balance.
B. timing bubble.
C. capacity cushion.
D. positioning hedge.
E. margin protect.
 
 
9.
The center of gravity method is used to _______ travel time or shipping costs. 

A. average
B. eliminate
C. minimize
D. normalize
E. document
 
 
10.
A common objective of both MRP and the lean philosophy is to:

A. reduce (and ultimately eliminate) "excess" inventory. 
B. obtain high quality components.
C. smooth the flow of production.
D. reduce overhead.
E. eliminate process bottlenecks.
 
 
11.
A constraint that does not form a unique boundary of the feasible solution space is a:

A. nonbinding constraint.
B. binding constraint.
C. feasible solution constraint.
D. constraint that equals zero.
E. redundant constraint.
 
 
12.
A control chart used to monitor the fraction of defectives generated by a process is the:

A. Gantt chart.
B. c-chart.
C. p-chart.
D. R-chart.
E. x-bar chart.
 
 
13.
A control chart used to monitor the process mean is the:

A. c-chart.
B. x-bar chart.
C. R-chart.
D. p-chart.
E. Gantt chart.
 
 
14.
A conveyance __________ signals parts movement.

A. WIP
B. andon
C. kanban 
D. kaizen
E. routing
 
 
15.
Costs of inspectors, testing, test equipment, and labs are examples of:

A. appraisal costs.
B. replacement costs.
C. internal failure costs.
D. external failure costs.
E. prevention costs.
 
 
16.
Dairy items, fresh fruit, and newspapers are items that:

A. require that prices be lowered every two days.
B. do not require safety stocks.
C. cannot be ordered in large quantities.
D. are subject to deterioration and spoilage. 
E. have minimal holding costs.
 
 
17.
The decision to outsource opens the firm up to certain risks, among them _________ and ________.

A. loss of direct control over operations; need to disclose proprietary information
B. greater capacity rigidity; tight knowledge control
C. higher marketing costs; small orders
D. lower costs; fewer task-specific investments
E. access to greater expertise; greater demand variability
 
 
18.
The Deming Prize was established by the:

A. World Trade Organization.
B. North American Free Trade Association.
C. American Quality Society.
D. American Statistical Association.
E. Union of Japanese Scientists.
 
 
 
 
 
 
 
 

19.
Elton Mayo's Hawthorne experiments were significant contributions to the human relations movement, which emphasized the importance of the human element in job design.
 
 
20.
The estimation of costs is generally most difficult when the ___________ process has been chosen.

A. job shop
B. continuous
C. project
D. batch
E. repetitive
 
 
21.
Excitement characteristics are categories in the _________ model.

A. quality
B. Pareto
C. Kano 
D. bipolar
E. service matrix
 
 
22.
The external elements of SWOT analysis are:

A. opportunities and threats. 
B. weaknesses and opportunities.
C. strengths and weaknesses.
D. strengths and threats.
E. strengths and opportunities.
 
 
23.
The fact that a few improvements in a few key areas of operations will have more impact than many improvements in many other areas is consistent with the:

A. Pareto phenomenon. 
B. Tellier phenomenon.
C. Stevenson phenomenon.
D. Adam Smith phenomenon.
E. Irwin phenomenon.
 
 
24.
The Five S's do not include:

A. Sweep.
B. Standardize.
C. Sort.
D. Straighten.
E. Sanitize.
 
 
25.
A forecast based on the previous forecast plus a percentage of the forecast error is:

A. a naive forecast.
B. a centered moving average forecast.
C. an associative forecast.
D. a simple moving average forecast.
E. an exponentially smoothed forecast.
 
 
26.
The forecasting method which uses anonymous questionnaires to achieve a consensus forecast is:

A. consumer surveys.
B. time series analysis.
C. sales force opinions.
D. executive opinions.
E. the Delphi method.
 
 
27.
A formal way to ensure customer requirements are factored into the product and service development process is: 

A. a sales/marketing matrix.
B. the Delphi technique.
C. consumer surveys.
D. quality function deployment. 
E. focus groups.
 
 
28.
For service firms such as banks and supermarkets, location decisions are critical elements of __________ strategy.

A. promotional
B. effectiveness
C. pricing
D. efficiency
E. marketing
 
 
29.
For the products A, B, C, and D, which of the following could be a linear programming objective function?

A. Z = 1A + 2B/C + 3D
B. Z = 1A + 2B + 3C + 4D 
C. Z = 1A + 2BC + 3D
D. Z = 1A + 2B − 1CD
E. Z = 1A + 2AB + 3ABC + 4ABCD
 
 
30.
The fundamental purpose for the existence of any organization is described by its:

A. procedures.
B. policies.
C. bylaws.
D. corporate charter.
E. mission statement.
 
 
31.
Given forecast errors of 4, 8, and -3, what is the mean absolute deviation?

A. 4
B. 12
C. 6
D. 3
E. 5
 
 
 

32.
Given the following information, what would efficiency be?

Effective capacity = 50 units per day
Design capacity = 100 units per day
Actual output = 30 units per day

A. 40 percent
B. 50 percent
C. 60 percent
D. 80 percent
E. 90 percent
 
 
33.
Given the following information, what would efficiency be?

Effective capacity = 80 units per day
Design capacity = 100 units per day
Utilization = 48 percent

A. 35 percent
B. 80 percent
C. 20 percent
D. 60 percent
E. 48 percent
 
 
34.
Gourmet Pretzels bakes soft pretzels on an assembly line. It currently bakes 800 pretzels each eight-hour shift. If the production is increased to 1,200 pretzels each shift, then productivity will have increased by:

A. 33 percent.
B. 67 percent.
C. 25 percent.
D. 50 percent.
 
 
35.
Gradual, long-term movement in time series data is called:

A. cycles.
B. irregular variation.
C. seasonal variation.
D. trend. 
E. random variation.
 
 
36.
_________ has/have helped firms to concentrate on their core business.

A. Scheduling
B. Supply chains
C. Outsourcing 
D. Lean production
E. ERP
 
 
37.
Having a vendor be responsible for managing the restocking of inventory is what is meant by the term:

A. JIT II. 
B. EOQ III.
C. POQ II.
D. MRP II.
E. SCM I.
 
 
38.
A hierarchical listing of what must be done in a project is called a:

A. work breakdown structure (WBS). 
B. PERT.
C. planning matrix.
D. crashing plan.
E. critical path.
 
 
39.
If one organization is better able than most to respond to changes in demands or opportunities, we say that organization exhibits higher:

A. productivity.
B. agility. 
C. sustainability.
D. efficiency.
E. marketability.
 
 
40.
In an assembly operation at a furniture factory, six employees assembled an average of 450 standard dining chairs per five-day week. What is the labor productivity of this operation?

A. 75 chairs/worker/day
B. 90 chairs/worker/day
C. 60 chairs/worker/day
D. 15 chairs/worker/day 
E. 20 chairs/worker/day
 
 
41.
In a project network, the critical path is the sequence of activities which has the:

A. greatest variance.
B. most nodes.
C. most activities.
D. longest duration. 
E. most events.
 
 
42.
In a supermarket, a vendor's restocking the shelves every Monday morning is an example of:

A. fixed order intervals. 
B. safety stock replenishment.
C. reorder points.
D. economic order quantities.
E. blanket ordering.
 
 
43.
In "crashing" a project, a manager will generally focus on activities which:

A. are not on the critical path.
B. are the least costly to crash. 
C. are costly to crash and are on the critical path.
D. are on the critical path and are the least costly to crash. 
E. are the easiest to crash.
 
 
 

44.
In order to increase the responsiveness of a forecast made using the moving average technique, the number of data points in the average should be:

A. eliminated if the MAD is greater than the MSE.
B. multiplied by a larger alpha.
C. decreased. 
D. increased.
E. multiplied by a smaller alpha.
 
 
45.
In regards to supply chain management and the location decision, a primary challenge is to address _______________ distribution.

A. centralized vs. decentralized
B. strategic vs. tactical
C. anticipatory vs. reactive
D. local vs. global
E. insourced vs. outsourced
 
 
46.
In the graphical approach to linear programming, finding values for the decision variables at the intersection of corners requires the solving of:

A. binding constraints.
B. slack variables.
C. simultaneous equations. 
D. linear constraints.
E. surplus variables
 
 
47.
In the lean philosophy, the ideal lot size is:

A. the economic order quantity. 
B. the economic run size.
C. one unit. 
D. the capacity of the standard container.
E. N = (DT(1 + X))/C.
 
 
48.
In the Toyota Production System, waste and inefficiency are referred to as __________, and the ongoing effort to reduce this is referred to as __________. 

A. jidoka; heijunka
B. muda; jidoka
C. kaizen; heijunka
D. muda; kanban
E. muda; kaizen
 
 
49.
In which type of operation are you likely to see, at most, only minor variations in the product or service being produced using the same process and the same equipment?

A. a job shop
B. batch processing
C. repetitive production
D. a project
E. intermittent production
 
 
50.
Job shops tend to be __________ while continuous processes tend to be __________.

A. in services; in manufacturing
B. low cost-per-unit; high cost-per-unit
C. short-term and capital intensive; long-term and labor intensive
D. standardized; customized
E. small scale and flexible; large-scale and inflexible
 
 
51.
The kaizen philosophy applies to:

A. employee development.
B. safety stock.
C. waste. 
D. supply chain management.
E. MRP III.
 
 
52.
Key aspects of the process selection challenge include _________ and __________.

A. capacity planning; marketing strategy
B. process flexibility; marketing strategy
C. information technology; marketing strategy
D. marketing strategy; operations strategy
E. capital intensity; process flexibility
 
 
53.
The lean philosophy suggests that workers are:

A. interchangeable.
B. assets. 
C. liabilities.
D. replaceable.
E. to be phased out.
 
 
54.
A lean-systems method of asking questions about a process is the __________ approach.

A. 2 kaizen
B. 3 kanban
C. jidoka
D. 5W2H 
E. heijunka
 
 
55.
The logical approach, from beginning to end, for assembling a linear programming model begins with:

A. identifying the constraints.
B. specifying the constraint parameters.
C. identifying the decision variables. 
D. specifying the objective function parameters.
E. identifying the objective function.
 
 
56.
Logistics includes all of these except:

A. returned goods processing.
B. outgoing shipments of goods or materials.
C. the movement of materials within a production facility.
D. customer selection. 
E. incoming shipments of goods or materials.
 
 
 

57.
Lost production time, scrap, and rework are examples of:

A. prevention costs.
B. appraisal costs.
C. replacement costs.
D. external failure costs.
E. internal failure costs.
 
 
58.
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. 32 cases
B. 11 cases
C. 20 cases 
D. 8 cases
E. 14 cases
 
 
59.
A manager uses the following equation to predict monthly receipts: Yt = 40,000 + 150t. What is the forecast for July if t = 0 in April of this year?

A. 42,100
B. 40,600
C. 40,450 
D. 42,250
E. 42,400
 
 
60.
Marketing depends on operations for information regarding:

A. lead time. 
B. budgeting.
C. corporate intelligence.
D. productivity.
E. cash flow.
 
 
61.
A method used for establishing a logical framework for identifying the required activities for the project is called:

A. crashing.
B. work breakdown structure. 
C. critical path analysis.
D. planning matrix.
E. PERT.
 
 
62.
Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____________ is leading to increased emphasis on ____________ management.

A. outsourcing; supply chain
B. optimizing; inventory
C. offshoring; lean
D. downsizing; total quality
E. internationalization; intercultural
 
 
63.
The more __________ a company's supply chain, the more difficult it is to ensure that the supply chain is managed ethically.

A. interconnected
B. shortened
C. global 
D. visible
E. competitive
 
 
64.
Nearness to raw materials would be most important to a:

A. manufacturing company.
B. post office.
C. hospital.
D. grocery store.
E. tax preparation service.
 
 
65.
The need for safety stocks can be reduced by an operations strategy which:

A. increases lot sizes.
B. increases lead time.
C. decreases ordering costs.
D. decreases lead time variability. 
E. increases lead time variability.
 
 
66.
One structured approach for integrating customer requirements into every aspect of product development is: 

A. total quality management.
B. customer integration.
C. quality function deployment. 
D. customer satisfaction.
E. a product development team.
 
 
67.
One way to increase reliability is to:

A. eliminate backup components.
B. increase the number of independent components.
C. improve preventive maintenance procedures. Correct
D. increase mean repair time.
E. use a global supply chain.
 
 
 

68.
The operations manager for the Blue Moon Brewing Co. produces two beers: Lite (L) and Dark (D). Two of his resources are constrained: production time, which is limited to 8 hours (480 minutes) per day; and malt extract (one of his ingredients), of which he can get only 675 gallons each day. To produce a keg of Lite beer requires 2 minutes of time and 5 gallons of malt extract, while each keg of Dark beer needs 4 minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg, and profits for Dark beer are $2.00 per keg. What is the objective function?

A. $3L + $2D = Z 
B. $2L + $4D = Z
C. $5L + $3D = Z
D. $4L + $2D = Z
E. $2L + $3D = Z
 
 
69.
The operations manager for the Blue Moon Brewing Co. produces two beers: Lite (L) and Dark (D). Two of his resources are constrained: production time, which is limited to 8 hours (480 minutes) per day; and malt extract (one of his ingredients), of which he can get only 675 gallons each day. To produce a keg of Lite beer requires 2 minutes of time and 5 gallons of malt extract, while each keg of Dark beer needs 4 minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg, and profits for Dark beer are $2.00 per keg. What is the time constraint?

A. 3L + 2D ≤ 480
B. 2L + 3D ≤ 480
C. 2L + 4D ≤ 480 
D. 4L + 2D ≤ 480
E. 5L + 3D ≤ 480
 
 
70.
An organization's mission statement serves as the basis for:

A. core competencies.
B. organizational goals.
C. distinctiveness.
D. operating procedures.
E. environmental scanning.
 
 
71.
A popular visual tool for planning and scheduling simple projects, and for monitoring progress, is the:

A. activity-on-arrows network.
B. program evaluation and review technique.
C. activity-on-nodes network.
D. critical path method.
E. Gantt chart.
 
 
72.
The primary difference between seasonality and cycles is:

A. there are only four seasons but 30 cycles.
B. the ability to attribute the pattern to a cause.
C. the magnitude of the variation.
D. the duration of the repeating patterns. 
E. the direction of the movement.
 
 
73.
The primary method for associative forecasting is:

A. exponential smoothing.
B. simple moving averages.
C. centered moving averages.
D. sensitivity analysis.
E. regression analysis.
 
 
74.
The process capability index (Cpk) may mislead if:

(I) the process is not stable.
(II) the process output is not normally distributed.
(III) the process is not centered.

A. I and II
B. I, II, and III
C. II and III
D. II only
E. I and III
 
 
75.
Process choice is _________ driven.

A. process
B. marketing
C. operations
D. demand
E. capacity
 
 
76.
The process of dismantling and inspecting a competitor's new or revised product for the purpose of gleaning design ideas is called:

A. product analysis.
B. reverse engineering. 
C. benchmarking.
D. design by imitation.
E. disassembly.
 
 
77.
Product design and choice of location are examples of _______ decisions.

A. design
B. customer-focused
C. strategic 
D. operational
E. tactical
 
 
 

78.
The production planner for a private label soft drink maker is planning the production of two soft drinks: root beer (R) and sassafras soda (S). Two resources are constrained: production time (T), of which she has at most 12 hours per day; and carbonated water (W), of which she can get at most 1,500 gallons per day. A case of root beer requires 2 minutes of time and 5 gallons of water to produce, while a case of sassafras soda requires 3 minutes of time and 5 gallons of water. Profits for the root beer are $6.00 per case, and profits for the sassafras soda are $4.00 per case. What is the objective function?

A. $6R + $4S = Z 
B. $4R + $6S = Z
C. $3R + $2S = Z
D. $5R + $5S = Z
E. $2R + $3S = Z
 
 
79.
The production planner for a private label soft drink maker is planning the production of two soft drinks: root beer (R) and sassafras soda (S). Two resources are constrained: production time (T), of which she has at most 12 hours per day; and carbonated water (W), of which she can get at most 1,500 gallons per day. A case of root beer requires 2 minutes of time and 5 gallons of water to produce, while a case of sassafras soda requires 3 minutes of time and 5 gallons of water. Profits for the root beer are $6.00 per case, and profits for the sassafras soda are $4.00 per case. What is the production time constraint (in minutes)?

A. 3R + 5S ≤ 720
B. 3R + 2S ≤ 720
C. 5R + 5S ≤ 720
D. 2R + 3S ≤ 720 
E. 2R + 5S ≤ 720
 
 
80.
The production planner for Fine Coffees, Inc., produces two coffee blends: American (A) and British (B). Two of his resources are constrained: Columbia beans, of which he can get at most 300 pounds (4,800 ounces) per week; and Dominican beans, of which he can get at most 200 pounds (3,200 ounces) per week. Each pound of American blend coffee requires 12 ounces of Colombian beans and 4 ounces of Dominican beans, while a pound of British blend coffee uses 8 ounces of each type of bean. Profits for the American blend are $2.00 per pound, and profits for the British blend are $1.00 per pound. What is the Columbia bean constraint?

A. 12A + 8B ≤ 4,800
B. 2A + 1B ≤ 4,800
C. 4A + 8B ≤ 4,800
D. 8A + 12B ≤ 4,800
E. 1A + 2B ≤ 4,800
 
 
81.
The production planner for Fine Coffees, Inc., produces two coffee blends: American (A) and British (B). Two of his resources are constrained: Columbia beans, of which he can get at most 300 pounds (4,800 ounces) per week; and Dominican beans, of which he can get at most 200 pounds (3,200 ounces) per week. Each pound of American blend coffee requires 12 ounces of Colombian beans and 4 ounces of Dominican beans, while a pound of British blend coffee uses 8 ounces of each type of bean. Profits for the American blend are $2.00 per pound, and profits for the British blend are $1.00 per pound. What is the Dominican bean constraint?

A. 8A + 4B ≤ 3,200
B. 8A + 12B ≤ 4,800
C. 12A + 8B ≤ 4,800
D. 4A + 8B ≤ 3,200 
E. 4A + 8B ≤ 4,800
 
 
82.
The production planner for Fine Coffees, Inc., produces two coffee blends: American (A) and British (B). Two of his resources are constrained: Columbia beans, of which he can get at most 300 pounds (4,800 ounces) per week; and Dominican beans, of which he can get at most 200 pounds (3,200 ounces) per week. Each pound of American blend coffee requires 12 ounces of Colombian beans and 4 ounces of Dominican beans, while a pound of British blend coffee uses 8 ounces of each type of bean. Profits for the American blend are $2.00 per pound, and profits for the British blend are $1.00 per pound.

What is the objective function?

A. $4A + $8B = Z
B. $1A + $2B = Z
C. $8A + $12B = Z
D. $12A + $8B = Z
E. $2A + $1B = Z
 
 
83.
Production systems with customized outputs typically have relatively:

A. low unit costs.
B. skilled workers.
C. fast work movement.
D. high amounts of specialized equipment.
E. high volumes of output.
 
 
84.
Productivity growth can be calculated by:

A. inputs divided by the outputs.
B. outputs minus inputs.
C. (current productivity - previous productivity) x 100 / (previous productivity) Correct
D. input plus output divided by two.
E. outputs divided by the inputs.
 
 
 

85.
Productivity is expressed as:

A. output times input.
B. output minus input.
C. output plus input.
D. output divided by input. 
E. input divided by output.
 
 
86.
Project risk events tend to be unlikely __________ a project, but that's also when they tend to be the __________.

A. early in; most costly
B. late in; least costly
C. late in; most costly 
D. before the beginning of; most complex
E. at the conclusion of; least complex
 
 
87.
The purchasing perspective of the supplier as a partner is characterized by:

A. 100 percent inspection for quality.
B. low flexibility.
C. an emphasis on low prices.
D. one or a few suppliers. 
E. low volume.
 
 
88.
The purpose of control charts is to:

A. distinguish between random variation and assignable variation in the process. 
B. determine if the output is within tolerances/specifications.
C. weed out defective items.
D. estimate the proportion of output that is acceptable.
E. provide meaningful work for quality inspectors.
 
 
89.
A quality circle is:

A. a team of customers and their contacts within the company who meet to discuss ways of improving products or processes.
B. a group of employees who meet to discuss ways of improving products or processes.
C. responsible for quality.
D. an inspection stamp found on meat.
E. total quality control.
 
 
90.
The quality function deployment matrices are often referred to as the "house of quality" because, when completed, they "house" all of the customer's quality requirements.
 
 
91.
The quality tool that resembles a "fishbone" is:

A. check sheets.
B. Pareto analysis.
C. fail-safe methods.
D. brainstorming.
E. cause-and-effect diagrams.
 
 
92.
The quality tool which helps focus on the most important problem areas based on the 80-20 rule is:

A. fail-safe methods.
B. brainstorming.
C. cause-and-effect diagrams.
D. Pareto analysis.
E. check sheets.
 
 
93.
Real-time information about product movement on store shelves could benefit from the use of:

A. infrared remote scanners.
B. statistical process control.
C. batch processing.
D. economic order quantities.
E. radio frequency identification tags.
 
 
94.
The region which satisfies all of the constraints in graphical linear programming is called the:

A. region of non-negativity.
B. lower left hand quadrant.
C. region of optimality.
D. feasible solution space. 
E. optimum solution space.
 
 
95.
Retail businesses often engage in ____________, the tendency to locate in close proximity to one another.

A. strategizing
B. macromarketing
C. centering
D. clustering
E. localcasting
 
 
96.
A risk avoider would want ______ safety stock.

A. more
B. 50 percent
C. less
D. the same
E. zero
 
 
97.
Scheduling personnel is an example of an operations management:

A. tactical decision.
B. operational decision.
C. organizational strategy.
D. functional strategy.
E. mission implementation.
 
 
 

98.
A shadow price reflects which of the following in a maximization problem?

A. marginal gain in the objective that would be realized by subtracting one unit of a resource
B. marginal gain in the objective that would be realized by adding one unit of a resource 
C. marginal cost of adding additional resources
D. net gain in the objective that would be realized by increasing an objective function coefficient
E. expected value of perfect information
 
 
99.
Six sigma programs involve both __________ and __________ components.

A. managerial; technical
B. statistical; probabilistic
C. local; global
D. probabilistic; deterministic
E. logistical; managerial
 
 
100.
Small changes in consumer demand can result in large variations in orders placed because of the:

A. lead time effect.
B. supply chain.
C. FCFS scheduling.
D. safety stock requirement.
E. bullwhip effect.
 
 
101.
Some communities offer financial and other incentives to ______ new businesses.

A. zone
B. attract
C. marginalize
D. tax
E. incorporate
 
 
102.
The substitution of machinery that has sensing and control devices for human labor is best described by the term:

A. computer-integrated manufacturing.
B. automation.
C. flexible manufacturing system.
D. computer-aided manufacturing.
E. feedback control.
 
 
103.
Suppose a country's productivity last year was 84. If this country's productivity growth rate of 5 percent is to be maintained, this means that this year's productivity will have to be:

A. 79.8.
B. 88.2. 
C. 4.2.
D. 82.8.
E. 78.9.
 
 
104.
The term "degrees of newness" is associated with:

A. average age of employees.
B. average length of time on the job.
C. degree of design change. 
D. average age of the capital equipment.
E. total years of business experience.
 
 
105.
The term "standardization" is closely associated with:

A. high cost.
B. variety.
C. interchangeability. 
D. longer lead times.
E. customization.
 
 
106.
(T/F) A benefit of the lean philosophy is the flexibility to respond quickly to changing customer product preferences.
 
 
107.
(T/F) A characteristic that was once an order winner may become an order qualifier.
 
 
108.
(T/F) A control chart is a visual representation of the steps in a process.
 
 
109.
(T/F) Activities not on the critical path have a slack time equal to zero.
 
 
110.
(T/F) A disadvantage of standardization is the possibility of standardizing designs too early, which may make them difficult to modify in the future.
 
 
111.
(T/F) A hierarchical listing of what must be done during a project is called matrix.
 
 
112.
(T/F) A job-shop processing system generally requires less-skilled workers than a continuous processing system.
 
 
113.
(T/F) A major benefit of computer-aided design (CAD) is the increased productivity of designers.
 
 
114.
(T/F) A moving average forecast tends to be more responsive to changes in the data series when more data points are included in the average.
 
 
115.
(T/F) An advantage of decentralized purchasing is the attention given to local needs.
 
 
116.
(T/F) An example of a strategic operations management decision is the choice of where to locate.
 
 
117.
(T/F) An example of a tactical operations management decision is determining employment levels.
 
 
118.
(T/F) An organization achieves quality by consistently meeting its competitors' standards.
 
 
119.
(T/F) An organization that is twice as productive as its competitor will be twice as profitable.
 
 
120.
(T/F) A process that exhibits random variability would be judged to be out of control.
 
 
121.
(T/F) A quality circle is a management team focused on implementing major changes to improve quality.
 
 
 
 
 
 
 
 
 

122.
(T/F) As a general rule, continuous processing systems produce products with very little variety.
 
 
123.
(T/F) Broadly defined, quality refers to the ability of a product or service to occasionally meet or exceed customer expectations.
 
 
124.
(T/F) Bullwhip effect refers to a phenomenon in which demand variations that exist at the customer end of the supply chain are magnified as orders are generated back through the supply chain.
 
 
125.
(T/F) Capacity decisions are usually one-time decisions; once they have been made, we know the limits of our operations.
 
 
126.
(T/F) Carrying cost is a function of order size; the larger the order quantity, the higher the inventory carrying cost.
 
 
127.
(T/F) Concurrent engineering brings people concerned with manufacturing into the design phase earlier than in the "over-the-wall" approach.
 
 
128.
(T/F) Concurrent engineering is another term for sequential development.
 
 
129.
(T/F) Constraints limit the alternatives available to a decision maker
 
 
130.
(T/F) Continuous processing is the best way to produce customized output.
 
 
131.
(T/F) Continuous production systems are typically very rigid and costly to change.
 
 
132.
(T/F) Cost of inspectors, testing, test equipment, and labs are examples of prevention costs.
 
 
133.
(T/F) Crosby's concept of "quality is free" means that it is less expensive to do it right initially than to do it over.
 
 
134.
(T/F) Decentralized purchasing can usually offer quicker response than centralized purchasing.
 
 
135.
(T/F) Delayed differentiation is a means of increasing product variety without building the customized product from scratch or keeping large inventories of custom products.
 
 
136.
(T/F) Deming stresses that workers are primarily responsible for poor quality because very often they fail to follow instructions.
 
 
137.
(T/F) Design for production takes into account the capabilities of the organization to produce or deliver a given product or service.
 
 
138.
(T/F) Disintermediation occurs when the traditional retailer or service provider is reduced or eliminated in a supply chain.
 
 
139.
(T/F) Environmental scanning is a search for events or trends that present either threats or opportunities to the organization.
 
 
140.
(T/F) Exponential smoothing adds a percentage (called alpha) of the last period's forecast to estimate the next period's demand.
 
 
141.
(T/F) Forecasting techniques generally assume an existing causal system that will continue to exist in the future.
 
 
142.
(T/F) Forecasts based on time-series (historical) data are referred to as associative forecasts.
 
 
143.
(T/F) Forecasts for groups of items tend to be less accurate than forecasts for individual items because forecasts for individual items don't include as many influencing factors.
 
 
144.
(T/F) Forecasts help managers both to plan the system itself and to provide valuable information for using the system.
 
 
145.
(T/F) For service and retail stores, a prime factor in location analysis is customer access.
 
 
146.
(T/F) For service organizations, the dominant factors in location analysis usually are market-related.
 
 
147.
(T/F) Global competition really only applies to multinational organizations.
 
 
149.
(T/F) Graphical linear programming can handle problems that involve any number of decision variables.
 
 
150.
(T/F) If a point on a control chart falls outside one of the control limits, this suggests that the process output is nonrandom and should be investigated.
 
 
151.
(T/F) If people would only work harder, productivity would increase.
 
 
152.
(T/F) If the majority of service customers are satisfied, it is likely that all service customers will be satisfied.
 
 
153.
(T/F) If two consecutive activities on the same path each have two days of activity slack, this means that each of them can be delayed by two days without delaying the project.
 
 
154.
(T/F) Important factors in purchasing include the cost of goods purchased, the quality of goods and services, and the timing of deliveries of goods or services.
 
 
155.
(T/F) Improving efficiency will guarantee a similar improvement in productivity.
 
 
156.
(T/F) In a lean environment, anything not essential to the product or process is viewed as waste.
 
 
157.
(T/F) In a pull system, the accumulation of excessive inventory in front of a workstation is avoided even if there are problems such as equipment failure at that workstation which prevent it from completing its work.
 
 
158.
(T/F) In general, job-shop systems have a lower unit cost than continuous systems do because continuous systems use costly specialized equipment.
 
 
 
 
 
 
 
 
 

159.
(T/F) Interest, insurance, and opportunity costs are all associated with holding costs.
 
 
160.
(T/F) Juran describes quality management as a trilogy that consists of quality planning, quality control, and quality improvement.
 
 
161.
(T/F) Lean purchasing requires frequent contract bidding by multiple sources to ensure the buyer of competitive prices.
 
 
162.
(T/F) LP problems must have a single goal or objective specified.
 
 
163.
(T/F) Matrix organizations transfer control of workers to project managers for the duration of the project.
 
 
164.
(T/F) Medical malpractice claims are an example of how poor quality can affect an organization through liability.
 
 
165.
(T/F) One approach to extending a product's life cycle is to promote alternate uses of the product.
 
 
166.
(T/F) One important use of inventories in manufacturing is to decouple operations through the use of work-in-process inventories.
 
 
167.
(T/F) One of the main advantages of standardization is that it increases the potential variety of products.
 
 
168.
(T/F) One problem with lean operations is that they can lead to much stress on workers due to their increased responsibility for process and quality improvement.
 
 
169.
(T/F) One way that project management differs from management of more traditional activities is because of the limited time framework of projects.
 
 
170.
(T/F) Operations and sales are the two functional areas that exist to support activities in other functions such as accounting, finance, IT, and human resources.
 
 
171.
(T/F) Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization's goods or services.
 
 
172.
(T/F) Organizations that are capable of responding quickly to changing requirements can use a shorter forecast horizon and therefore benefit from more accurate forecasts.
 
 
173.
(T/F) People who work in the field of operations should have skills that include both knowledge and people skills.
 
 
174.
(T/F) Preventive maintenance is additional maintenance done immediately after a breakdown has occurred to help prevent any further breakdowns.
 
 
175.
(T/F) Price is the primary determining factor in choosing a vendor since most products are essentially the same.
 
 
176.
(T/F) Process capability compares process variability to the tolerances.
 
 
177.
(T/F) Product failures can be easier to remedy with modular design.
 
 
178.
(T/F) Productivity is defined as the ratio of output to input.
 
 
179.
(T/F) Productivity is directly related to the ability of an organization to compete.
 
 
180.
(T/F) Profit maximization could be an objective of an LP problem; but cost minimization cannot be the objective of an LP problem.
 
 
181.
(T/F) Quality of conformance refers to the degree to which goods and services conform to the intent of the designers as documented in the specifications.
 
 
182.
(T/F) Quality of design refers to the intention of the designers to include or exclude certain features in a product or service based on marketing and other information.
 
 
183.
(T/F) Reducing consumer choices makes service more efficient.
 
 
184.
(T/F) Reliability refers to the ability of a product to perform its intended function under normal conditions.
 
 
185.
(T/F) Returned goods are part of reverse logistics.
 
 
186.
(T/F) Service often requires relatively greater labor content when compared to manufacturing.
 
 
187.
(T/F) Service operations require additional inventory because of the unpredictability of consumer demand.
 
 
188.
(T/F) Some organizations use a matrix organization to integrate the activities of specialists within a functional framework.
 
 
189.
(T/F) Standardization has the advantage of reducing variability.
 
 
190.
(T/F) Taguchi design methods involve identifying the optimal operating or environmental conditions for a given product.
 
 
191.
(T/F) The A-B-C approach involves classifying inventory items based on their name.
 
 
192.
(T/F) The center of gravity method uses the earth's center to establish starting grid coordinates (i.e., the 0,0,0 point) in three dimensions (x, y and z).
 
 
193.
(T/F) The costs associated with risk events tend to be lower near the beginning of a project and higher near the end of the project.
 
 
194.
(T/F) The Delphi approach involves the use of a series of questionnaires to achieve a consensus forecast.
 
 
195.
(T/F) The equation 5x + 7y = 10 is linear.
 
 
196.
(T/F) The feasible solution space only contains points that satisfy all constraints.
 
 
197.
(T/F) The four building blocks of lean operations are: product design, process design, personnel/organizational elements, and manufacturing planning and control.
 
 
198.
(T/F) The greater the degree of customer involvement, the more challenging the design and management of operations.
 
 
 

199.
(T/F) The hierarchy and sequence of planning and decision making is: mission, organizational strategy, tactics, and operational decisions.
 
 
200.
(T/F) The naive approach to forecasting requires a linear trend line.
 
 
201.
(T/F) The need for risk management increases as globalization of supply chains increases.
 
 
202.
(T/F) The objective of inventory management is to minimize the cost of holding inventory.
 
 
203.
(T/F) The overall objective of inventory management is to achieve satisfactory levels of customer service while keeping inventory costs reasonable.
 
 
204.
(T/F) The primary difference between internal failures and external failures is time and place of discovery of the failure.
 
 
205.
(T/F) The probability of occurrence of risk events is lower near the beginning of a project and higher near the end of the project since very few activities remain.
 
 
206.
(T/F) The process of dismantling and inspecting a competitor's product to discover product improvement is called benchmarking.
 
 
207.
(T/F) The rate of demand is an important factor in determining the ROP.
 
 
208.
(T/F) The shorter the forecast horizon, the more accurate the forecast tends to be.
 
 
209.
(T/F) The standard deviation of the critical path is equal to the sum of the standard deviations of all of the activities on the critical path.
 
 
210.
(T/F) The sum of times of the longest path in a network indicates expected project duration, and the activities represent the critical activities.
 
 
211.
(T/F) The term capacity refers to the maximum quantity an operating unit can process over a given period of time.
 
 
212.
(T/F) The term isoprofit line means that all points on the line will yield the same profit.
 
 
213.
(T/F) The ultimate goal of lean operations is a system characterized by the smooth, rapid flow of materials.
 
 
214.
(T/F) Three key philosophies in TQM are continuous improvement, involvement of everyone in the organization, and customer satisfaction.
 
 
215.
(T/F) Time-series techniques involve the identification of explanatory variables that can be used to predict future demand.
 
 
216.
(T/F) To provide satisfactory levels of customer service while keeping inventory costs within reasonable bounds, two fundamental decisions must be made about inventory: when to order and how much to order.
 
 
217.
(T/F) TQM expands the traditional view of quality beyond looking only at the quality of the final product or service to looking at the quality of every aspect of the process.
 
 
218.
(T/F) Tracking productivity measures over time enables managers to judge organizational performance and decide where improvements are needed.
 
 
219.
(T/F) Using the EOQ model, the higher an item's carrying costs, the more frequently it will be ordered.
 
 
220.
(T/F) Variability in demand and/or lead time can be compensated for by safety stock.
 
 
221.
(T/F) Vendor analysis is the process that evaluates the source of supply in terms of price, quality, reputation, and service.
 
 
222.
(T/F) Web-based, retail businesses should be located near the customer to reduce their long distance phone charges.
 
 
223.
(T/F) You cannot make a mistake by locating where labor costs are low.
 
 
224.
To _____ an activity means to shorten the time it will take.

A. aggregate
B. fund
C. crash
D. matrix
E. smash
 
 
225.
The tool that is useful in documenting the current process is a:

A. flowchart.
B. cause-and-effect diagram.
C. check sheet.
D. control chart.
E. Pareto chart.
 
 
226.
A tool that uses time-ordered values of a sample statistic to help detect the presence of correctable causes of variation in a process is a(n):

A. relationship diagram.
B. flowchart.
C. control chart.
D. affinity diagram.
E. checklist.
 
 
227.
TQM stands for

A. Taguchi Quality Methods.
B. The Quality Matrix.
C. Total Quantity Measurement.
D. Tactical Quality Measurements.
E. Total Quality Management.
 
 
 
 
 
 
 
 
 

228.
The two general approaches to forecasting are:

A. mathematical and statistical.
B. judgmental and qualitative.
C. qualitative and quantitative. 
D. historical and associative.
E. precise and approximation.
 
 
229.
The type of processing system which is used for highly standardized products is:

A. continuous.
B. batch.
C. unit.
D. intermittent.
E. project.
 
 
230.
The ultimate goal in a lean system is:

A. low to moderate levels of inventory.
B. balanced and rapid flow. Correct
C. minimal waste (less than 6 percent).
D. high quality, zero defects.
E. all of these.
 
 
231.
The ultimate goal of lean operations is to have:

A. no in-process inventories.
B. no setup times.
C. a smooth, rapid flow of work through the system. 
D. all of the choices.
E. cross-trained workers capable of handling every process.
 
 
232.
Unbalanced systems are evidenced by:

A. labor unrest.
B. assembly lines.
C. bottleneck operations.
D. increasing capacities.
E. top-heavy operations.
 
 
233.
_______ variation is a variation whose cause can be identified.

A. Random
B. Theoretical
C. Assignable
D. Controllable
E. Statistical
 
 
234.
Warranty service, processing of complaints, and costs of litigation are examples of:

A. appraisal costs.
B. prevention costs.
C. internal failure costs.
D. external failure costs.
E. replacement costs.
 
 
235.
The website and order fulfillment are essential features of:

A. Internet service providers.
B. inventory balancing.
C. market segmentation.
D. e-commerce. 
E. delayed differentiation.
 
 
236.
What combination of x and y will yield the optimum for this problem?


Maximize Z = $3x + $15y
Subject to:
2x + 4y ≤ 12
5x + 2y ≤ 10

A. x = 0, y = 3 
B. x = 2, y = 0
C. x = 0, y = 4
D. x = 1, y = 2.5
E. x = 0, y = 0
 
 
237.
When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is:

A. transportation models.
B. factor rating.
C. center of gravity methods.
D. consumer surveys.
E. linear programming.
 
 
238.
Where a firm locates would typically not affect that firm's:

A. delivery times.
B. transportation costs.
C. strategy.
D. convenience for customers.
E. costs.
 
 
239.
Which is not a cost of quality?

A. appraisal costs
B. prevention cost
C. external failure costs
D. internal failure costs
E. extended service contract costs
 
 
240.
Which is not an area of significant difference between manufacturing and service operations?

A. uniformity of input
B. customer contact
C. forecasting demand
D. labor content of jobs
E. measurement of productivity
 
 
 
 
 
 
 
 
 
 

241.
Which is not a true assumption in the basic EOQ model?

A. Each order is received in a single delivery.
B. Lead time does not vary.
C. No more than three items are involved. 
D. Usage rate is constant.
E. No quantity discounts.
 
 
242.
Which objective function has the same slope as this one: $4x + $2y = $20?

A. $4x − $2y = $20
B. $2x + $4y = $20
C. $2x − $4y = $20
D. $8x + $8y = $20
E. $4x + $2y = $10
 
 
243.
Which of the following choices constitutes a simultaneous solution to these equations?

3x + 2y = 6
6x + 3y = 12

A. x = .5, y = 2
B. x = 0, y = 0
C. x = 2, y = 0 
D. x = 1, y = 1.5
E. x = 0, y = 3
 
 
244.
Which of the following could not be a linear programming problem constraint?

A. 1A + 2B ≥ 3
B. 1A + 2B = 3
C. 1A + 2B 
D. 1A + 2B ≤ 3
E. 1A + 2B + 3C + 4D ≤ 5
 
 
245.
Which of the following does not contribute to reduced setup time and cost?

A. use of group technology
B. standardized setup tools
C. use of multipurpose equipment or attachments
D. custom setup procedures for each product 
E. standardized setup equipment
 
 
246.
Which of the following interactions with vendors would potentially lead to inventory reductions?

A. less frequent purchases
B. longer order intervals
C. reduced lead times 
D. larger batch quantities
E. increased safety stock
 
 
247.
Which of the following is a location option that management can consider in location planning?

(I) Expand an existing facility.
(II) Add a new location.
(III) Relocate from one location to another.
(IV) Do nothing.

A. I and III only.
B. II and IV only.
C. I and II only.
D. I, II, and III only.
E. I, II, III, and IV.
 
 
248.
Which of the following is an example of a postponement tactic?

A. standardization
B. process mapping
C. service blueprinting
D. mass customization
E. delayed differentiation
 
 
249.
Which of the following is a system in which low-skilled workers use specialized equipment to produce high volumes of standardized goods?

A. the Internet
B. lean systems
C. craft production
D. mass production
E. supply chain
 
 
250.
Which of the following is least important as a consideration for a firm at the beginning of a supply chain?

A. proximity to customers
B. access to productive labor
C. access to end consumers
D. access to transportation infrastructure
E. access to resources
 
 
251.
Which of the following is least likely to affect the cost an organization incurs in producing its products or services?

A. price 
B. location
C. quality
D. productivity
E. inventory management
 
 
 

252.
Which of the following is least likely to be a key consideration when a company chooses a supplier?

A. current inventory 
B. quality and quality assurance
C. reputation and financial stability
D. flexibility of design change
E. lead time and on-time delivery
 
 
253.
Which of the following is not a benefit of centralized purchasing?

A. potential for use of purchasing specialists
B. potential for quantity discounts
C. better service from suppliers
D. supplier research
E. quick response to local needs
 
 
254.
Which of the following is not a benefit of effective supply chain management?

A. lower inventory costs
B. larger number of suppliers
C. greater customer loyalty
D. shorter lead times
E. higher productivity
 
 
255.
Which of the following is not a characteristic of service operations?

A. intangible output
B. low uniformity of input
C. easy measurement of productivity
D. high labor content
E. high customer contact
 
 
256.
Which of the following is not a goal of supply chain management?

A. fewer suppliers and long-term relationships
B. lowest possible transportation costs
C. delivery often to the place of use
D. on-time deliveries
E. small lot sizes
 
 
257.
Which of the following is not among the chief reasons organizations fail?

A. overemphasis on short-term financial performance
B. not investing in capital and human resources
C. emphasizing labor productivity in labor-intensive environments 
D. poor internal communications
E. overemphasis on product (or service) design
 
 
258.
Which of the following is not an advantage of standardization?

A. Purchasing is more routine.
B. Inventory management is less complex.
C. The opportunity to freeze design at a very early stage. 
D. Fewer parts to deal with in inventory.
E. Reduced training cost and time.
 
 
259.
Which of the following is not characteristic of preventive maintenance in lean systems?

A. eliminating supplies of spare parts to reduce capital investment 
B. maintaining equipment in good operating condition
C. perceiving breakdowns as an opportunity for improvement
D. workers maintaining their own equipment
E. replacing parts that have a tendency to fail before they fail
 
 
260.
Which of the following is not one of the 3 Rs?

A. retrofit
B. reduce
C. recycle
D. reuse
E. reposition
 
 
261.
Which of the following is not one of the assumptions of the basic EOQ model?

A. Annual demand requirements are known and constant.
B. Ordering and holding costs have been estimated reasonably accurately.
C. Quantity discounts are available.
D. Lead time does not vary.
E. Each order is received in a single delivery.
 
 
262.
Which of the following is typically the largest of all inventory costs?

A. holding cost
B. pipeline cost
C. ordering cost
D. shortage cost
E. purchase cost
 
 
263.
Which of the following most involves coordinating the activities among all the elements of the business including its suppliers and distributors?

A. pollution control
B. technological change
C. quality management
D. competition from foreign manufacturers
E. supply chain management
 
 
 

264.
Which of the following quality control sample statistics indicates a quality characteristic that is an attribute?

A. proportion
B. range
C. variance
D. mean
E. standard deviation
 
 
265.
Which of the following refers to service and production processes that use resources in ways that do not harm ecological systems?

A. supportability
B. transportability
C. perishability
D. sustainability
E. marketability
 
 
266.
Which of the following would be least important in the pursuit of a time-based strategy?

A. cost minimization 
B. reduced complaint resolution times
C. quick changeover times
D. operational agility
E. flexible technology
 
 
267.
Which of the following would not contribute to making services more lean?

A. Train workers so they can handle variety in the tasks they perform.
B. Simplify the service process.
C. Increase the flexibility of the service system.
D. Have service workers handle multiple tasks simultaneously. 
E. Standardize the work methods for providing the service.
 
 
268.
Which of the following would not usually be a main factor in selecting a vendor?

A. price
B. inventory turnover 
C. vendor services
D. location
E. quality
 
 
269.
Which of the following would probably not involve the use of PERT?

A. writing a poem 
B. preparing for the visit of a foreign dignitary
C. developing an advertising campaign for a new product
D. planning and constructing a new city hall
E. designing and constructing a subway system
 
 
270.
Which of these factors would be least likely to affect productivity?

A. product mix
B. management
C. advertising 
D. methods and technology
E. workers
 
 
271.
Which of these pairs of functions would tend to be affected most dramatically by a product or service redesign?

A. Marketing and Operations 
B. Engineering and Accounting
C. Finance and Engineering
D. Operations and Accounting
E. Finance and Human Resources
 
 
272.
Which one of the following is not considered an important factor in retail layout design?

A. degree of contact with the customer
B. traffic patterns and traffic flow
C. degree of customization
D. opportunity to influence customer attitudes
E. cost minimization
 
 
273.
Which one of the following is not generally a determinant of the reorder point?

A. length of lead time
B. stockout risk
C. rate of demand
D. purchase cost 
E. lead time variability
 
 
274.
Which type of processing system tends to produce the most product variety?

A. continuous
B. assembly
C. mass customization
D. batch
E. job shop
 
 
275.
With regard to suppliers, lean systems typically require:

A. long-term relationships and commitments. 
B. delivery of large lots at regular intervals.
C. buyer inspection of goods and materials.
D. multiple sources from which to purchase.
E. the lowest price possible.
 
 
 

276.
Years ago in the overnight delivery business, providing package tracking capability gave some firms a competitive advantage. Now, all firms must offer this capability simply to be in this line of business. This is an example of ______________ becoming ____________ over time.

A. tactical implications; strategic
B. profitability factors; productivity factors
C. order winners; order qualifiers
D. strategic implications; tactical
E. order qualifiers; order winners
 
 
 

 

1.
The advantages of standardization include which of the following?
(I.) The opportunity to freeze design at a very early stage 
(II.) Fewer parts to deal with in inventory 
(III.) Reduced training cost and time 
(IV.) Purchasing is more routine
 
 
4.
The Balanced Scorecard is a useful tool for helping managers translate their strategy into action in the following areas:
 
 
5.
basic functions of the business organization:
 
 
8.
Capacity decisions are usually one-time decisions; once they have been made, we know the limits of our operations.
 
 
9.
Capacity decisions often involve a long-term commitment of resources which, when implemented, are difficult or impossible to modify without major added costs.
 
 
10.
Continuous production systems are typically very rigid and costly to change.
 
 
14.
Design capacity refers to the maximum output rate that can be achieved under ideal conditions.
 
 
16.
Efficiency is defined as the ratio of:
 
 
19.
Factor rating is limited to quantitative information concerning location decisions.
 
 
20.
For firms competing in worldwide markets, conducting __________________ is more complex, since what works in one country or region might not work in another.
 
 
21.
For service and retail stores, a prime factor in location analysis is customer access.
 
 
25.
Goods-producing organizations are not involved in service activities.
 
 
26.
hierarchal planning to successfully compete in markets:
 
 
 
 
 
 
 
 
 
 
 
 
 

27.
The hierarchy and sequence of planning and decision making is: mission, organizational strategy, tactics, and operational decisions.
 
 
28.
If a line is balanced with 80 percent efficiency, the "balance delay" will be:
 
 
29.
In an environment in which demand is both substantial and stable, __________ technology tends to be the best choice.
 
 
30.
In location planning, the location of raw materials, the location of markets, and labor factors are:
 
 
31.
In the area of product and service design, the acronym CAD refers to:
 
 
33.
mass customization:
 
 
34.
Maximum capacity commonly refers to the upper limit on:
 
 
35.
The minimum possible cycle time in a typical product layout with no parallel activities is determined by the:
 
 
37.
One possible disadvantage of modular design is that:
 
 
38.
Operations, marketing, and finance function independently of each other in most organizations.
 
 
 

51.
Retail businesses often engage in ____________, the tendency to locate in close proximity to one another.
 
 
63.
When service firms such as retailers or banks make growth-spurred location decisions, typically these involve:
 
 
64.
Where a firm locates would typically not affect that firm's:
 
 
 
 
 
 
 
 
 

 

1.
Asking a group of employees at a particular level to take on more responsibility is a form of ___________ loading, also known as job __________.
 
 
2.
A behavioral approach to job design which increases responsibility for planning and coordinating tasks is job:
 
 
3.
The chart used to focus on busy and idle portions of a work cycle is a:
 
 
4.
The chart used to review the overall sequence of an operation by focusing on the movements of either the operator or materials is called a:
 
 
5.
The design of work systems typically involves:
 
 
6.
A disadvantage of teams is:
 
 
7.
From the worker's perspective, an output-based pay system has the advantage of:
 
 
8.
Giving a worker a larger portion of the total task is known as job:
 
 
9.
If there is a good chance that one or a few employees could wind up in monotonous jobs, job __________ can be a good idea.
 
 
10.
In a stopwatch time study, adjusting the normal time by an allowance factor for normal delays and interruptions results in the:
 
 
11.
In a stopwatch time study, the average of the times recorded for a given worker to perform a given task is the:
 
 
12.
In a stopwatch time study, the number of cycles that must be timed is a function of:
 
 
13.
In calculating standard times, allowance percentages normally would consider all of the following except:
 
 
14.
In motion studies, a therblig is a:
 
 
15.
In work sampling, observations should be taken:
 
 
16.
A major advantage of job specialization in business is increased:
 
 
17.
Methods analysis and motion study techniques develop primarily which aspects of jobs?
 
 
18.
The methods analysis chart which describes the overall sequence of operations, transportation, storage, delays, and inspection is a:
 
 
19.
The methods analysis chart which describes the portions of a work cycle during which an operator and equipment are busy or idle is a:
 
 
20.
Methods analysis is particularly valuable when it is used on jobs that:
 
 
21.
The motion study chart which describes the movements of both hands at the same time is a:
 
 
22.
One form of long-term team that is increasingly being used, especially in lean production settings, is:
 
 
23.
Process chart symbols do not include:
 
 
24.
A simo chart includes:
 
 
25.
The symbols for operation, storage, transportation, inspection, and delay would usually be found on which type of chart?
 
 
26.
A technique for estimating the proportion of time a worker spends on various activities is:
 
 
27.
Time standards derived from a firm's historical time study data are known as:
 
 
28.
When performing a time study, the analyst converts the observed time into the time a worker would require working at an acceptable "average" pace by using which of the following?
 
 
29.
Which is not a requirement for an effective self-directed team?
 
 
30.
Which is not a requirement for an effective self-directed team?
 
 
31.
Which of the following concerns is not one that job designers focus on?
 
 
32.
Which of the following is not an advantage of time-based pay systems?
 
 
33.
Which of the following is not a potential benefit of the use of self-directed teams?
 
 
34.
Which of the following is not characteristic of time-based compensation plans?
 
 
35.
Which of the following is not generally considered an advantage of specialization?
 
 
36.
Which of the following most closely describes job enlargement?
 
 
 
 
 
 
 
 
 
 
 

 

 

1.
Outsourcing some production is a means of _____ a capacity constraint.
 
 
2.
A key question in capacity planning is:
 
 
3.
Allowances for which of these factors would be subtracted from design capacity when calculating effective capacity?
 
 
4.
Which of the following is NOT a reason why capacity decisions ARE so important?
 
 
5.
Which of the following is the case where capacity is measured in terms of inputs?
 
 
6.
Unbalanced systems are evidenced by:
 
 
7.
Maximum capacity commonly refers to the upper limit on:
 
 
8.
The impact that a significant change in capacity will have on a key vendor is a:
 
 
9.
The maximum possible output given a product mix, scheduling difficulties, personal time, and so on is:
 
 
10.
Efficiency is defined as the ratio of:
 
 
11.
Utilization is defined as the ratio of:
 
 
12.
Which of the following would tend to reduce effective capacity?
 
 
13.
The decision to outsource opens the firm up to certain risks, including _____ and _____.
 
 
14.
The ratio of actual output to effective capacity is:
 
 
15.
The ratio of actual output to design capacity is:
 
 
16.
Which of the following is not a strategy to manage service capacity or cope with service capacity limitations?
 
 
17.
Which of the following is not a determinant of effective capacity?
 
 
18.
Everything else being equal , a firm considering outsourcing would find all of the following desirable except:
 
 
19.
Capacity in excess of expected demand that is intended to offset uncertainty is a:
 
 
20.
Short term considerations in determining capacity requirements include:
 
 
21.
Which of the following is not a criterion for developing capacity alternatives?
 
 
22.
Seasonal variations are often easier to deal with in capacity planning than random variations because seasonal variations tend to be:
 
 
23.
Production units have an optimal rate of output where:
 
 
24.
When the output is less than the optimal rate of output, the average unit cost will be:
 
 
25.
When buying component parts, risk does not include:
 
 
26.
At the break-even point:
 
 
27.
Which of the following would not be a potential upside in a decision to outsource?
 
 
28.
If the output rate is increased but the average unit costs also increase, we are experiencing:
 
 
29.
he method of financial analysis which focuses on the length of time it takes to recover the initial cost of an investment is:
 
 
30.
When determining the timing and degree of capacity change, one can use the approach of:
 
 
31.
The method of financial analysis which results in an equivalent interest rate is:
 
 
32.
The first, and perhaps most important, step in constraint management is to _____ the most pressing constraint.
 
 
33.
A market constraint can be overcome by:
 
 
34.
Improving cash flow would be a reasonable thing to focus on when trying to overcome a _____constraint.
 
 
35.
Operation X feeds into operation Y. Operation X has an effective capacity of 55 units per hour. Operation Y has an effective capacity of 50 units per hour. Increasing Xs effective capacity to ensure that Y's utilization is maximized would be an example of a _____ constraint.
 
 
36.
Operation X feeds into OP y. OP X has an effective capacity of 55uiits per hour. OP Y's effective capacity of 50 mi / hr. Finding a way to increase Y's effective cap would be an example of _____ a constraint.
 
 
 
 
 
 
 
 
 
 
 

 

1.
Advanced communications has aided globalization.
 
 
2.
Among the disadvantages of having global operations is/are:
 
 
3.
An approach to location analysis that can include both qualitative and quantitative considerations is:
 
 
4.
An example of a regional factor in location planning is the location of our markets (either existing or potential).
 
 
5.
The fact that most types of firms are located in every section of the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another.
 
 
6.
For service firms such as banks and supermarkets, location decisions are critical elements of __________ strategy.
 
 
7.
For service organizations, the dominant factors in location analysis usually are market-related.
 
 
8.
Location decisions are basically one-time decisions usually made by new organizations.
 
 
9.
Location options do not usually include:
 
 
10.
The method for evaluating location alternatives that minimizes shipping costs between multiple sending and receiving locations is:
 
 
11.
The method for evaluating location alternatives that uses their total cost curves is:
 
 
12.
Nearness to raw materials would be most important to a:
 
 
13.
Some communities offer financial and other incentives to ______ new businesses.
 
 
14.
A strategy that emphasizes convenience for the customers would probably select a single very large facility.
 
 
15.
Technology has made communication with global operations as easy as local communication.
 
 
16.
Web-based, retail businesses should be located near the customer to reduce their long distance phone charges.
 
 
17.
When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is:
 
 
18.
When making location decisions, nonprofit organizations differ from for-profit ones in seeking a balance between:
 
 
19.
When service firms such as retailers or banks make growth-spurred location decisions, typically these involve:
 
 
20.
Which of the following circumstances would be least likely to lead to a need for a new location?
 
 
21.
Which of the following is the last step in the procedure for making location decisions?
 
 
22.
You cannot make a mistake by locating where labor costs are low.
 
 
 
 
 
 
 
 
 

 

1.
According to the reading on restaurant sourcing practices, only fast-food restaurants are able to bring in outsourced foods. 
 
 
2.
The break-even quantity can be determined by dividing the fixed costs by the difference between the revenue per unit and the variable cost per unit. 
 
 
3.
Capacity decisions are usually one-time decisions; once they have been made, we know the limits of our operations. 
 
 
4.
Capacity decisions often involve a long-term commitment of resources which, when implemented, are difficult or impossible to modify without major added costs. 
 
 
5.
Capacity increases are usually acquired in fairly large "chunks" rather than in smooth increments. 
 
 
6.
Capacity planning requires an analysis of needs: what kind, how much, and when. 
 
 
7.
The current trend toward global operations has made capacity decisions much easier since we have the whole world in which to consider operations. 
 
 
8.
Design capacity refers to the maximum output rate that can be achieved under ideal conditions. 
 
 
9.
An example of an external factor that influences effective capacity is government safety regulations. 
 
 
10.
Having excess capacity tends to keep operating costs low. 
 
 
11.
If the unit cost to buy something is less than the variable cost to make it, the decision to make or buy is based solely on the fixed costs. 
 
 
12.
In cost-volume analysis, costs that vary directly with volume of output are referred to as fixed costs because they are a fixed percentage of output levels. 
 
 
13.
Increasing capacity just before a bottleneck operation will improve the output of the process. 
 
 
14.
Increasing productivity and also quality will result in increased effective capacity. 
 
 
15.
The more current capacity exceeds desired capacity, the greater the opportunity for profit. 
 
 
16.
Outsourcing some production is a means of supporting a constraint. 
 
 
17.
Stating capacity in dollar amounts generally results in a consistent measure of capacity regardless of the actual units of measure. 
 
 
18.
The term capacity refers to the maximum quantity an operating unit can process over a given period of time. 
 
 
19.
Utilization is defined as the ratio of effective capacity to design capacity. 
 
 
20.
Waiting line analysis can be useful for capacity design, especially for service systems. 
 
 
 
 
 
 
 
 
 
 

 

1.
• A layout in which workstation are grouped based on the operations needed to perform work on a set of similar items, or part families, is a:
 
 
2.
Allowances for which of these factors would be subtracted from design capacity when calculating effective capacity?
 
 
4.
As compared to rigid automation, the benefits of flexible manufacturing systems include:
 
 
5.
The assessment of the environmental impact of a product or service throughout its useful life is called:
 
 
6.
At the break-even point:
 
 
7.
Capacity in excess of expected demand that is intended to offset uncertainty is a:
 
 
8.
The center of gravity method is used to _______ travel time or shipping costs.
 
 
9.
Common reasons for redesign of layouts include:

(I) efficient operations.
(II) accidents or safety hazards.
(III) new products or services.
(IV) morale problems.
 
 
10.
• Computer-integrated manufacturing integrates all of the following except________ with manufacturing
 
 
11.
A decision maker's worst option has an expected value of $1,000, and her best option has an expected value of $3,000. With perfect information, the expected value would be $5,000. The decision maker has discovered a firm that will, for a fee of $1,000, make her position-risk free. How much better off will her firm be if she takes this firm up on its offer?
 
 
12.
A decision tree is:
 
 
13.
Departmentalizing decisions increases the risk of __________ leading to a poor decision.
 
 
14.
Determining the average payoff for each alternative and choosing the alternative with the highest average is the approach called:
 
 
15.
Determining the worst payoff for each alternative and choosing the alternative with the "best worst" is the approach called
 
 
16.
The difference between expected payoff under certainty and expected payoff under risk is the expected:
 
 
17.
Efficiency is defined as the ratio of:
 
 
18.
The estimation of costs is generally most difficult when the ___________ process has been chosen.
 
 
19.
Everything else being equal, a firm considering outsourcing would find all of the following desirable except:
 
 
20.
An example of automated services is:
 
 
21.
Excitement characteristics are categories in the ______ model:
 
 
22.
The expected monetary value (EMV) criterion is the decision-making approach used with the decision environment of:
 
 
23.
A formal way to ensure customer requirements are factored into the product and service development process is:
 
 
24.
A group of machines including supervisory computer control, automatic material handling, and possibly robots is called:
 
 
25.
If the minimum expected regret is computed, it indicates to a decision maker the expected:
 
 
26.
In a decision-making setting, if the manager has to contend with limits on the amount of information he or she can consider, this can lead to a poor decision due to __________.
 
 
27.
In location planning, the location of raw materials, the location of markets, and labor factors are:
 
 
28.
In regards to supply chain management and the location decision, a primary challenge is to address _______________ distribution.
 
 
29.
In the use of closeness ratings for process layouts, the code U means the closeness between two departments is:
 
 
30.
In which type of processing system would gasoline be produced from crude oil?
 
 
31.
The key questions in the process selection task are:

(I) How will the product/service be priced?
(II) How much variety will be imposed on the process?
(III) What is the target market for the product/service?
(IV) At what volume will the process need to operate?
 
 
32.
Laser technology used in surgical procedures is an example of technological advances in:
 
 
33.
Layout design has many objectives, one of which is:
 
 
34.
A layout in which workstations are grouped based on the operations needed to perform work on a set of similar items, or part families, is a:
 
 
 
 
 
 
 
 
 

35.
A location analysis has been narrowed down to two locations, Akron and Boston. The main factors in the decision will be the supply of raw materials, which has a weight of .50, transportation cost, which has a weight of .40, and labor cost, which has a weight of .10. The scores for raw materials, transportation, and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should:
 
 
36.
Location options do not usually include:
 
 
37.
The main issue in the design of process layouts for service operations concerns the relative positioning of:
 
 
38.
A market constraint can be overcome by:
 
 
39.
The maximin approach to decision making refers to:
 
 
40.
The maximum allowable cycle time is computed as:
 
 
41.
Maximum capacity commonly refers to the upper limit on:
 
 
42.
The maximum possible output given a product mix, scheduling difficulties, personal time, and so on is:
 
 
44.
The method for evaluating location alternatives that minimizes shipping costs between multiple sending and receiving locations is:
 
 
45.
The method for evaluating location alternatives that uses their total-cost lines is:
 
 
46.
The method of financial analysis which results in an equivalent interest rate is:
 
 
47.
The minimum possible cycle time in a typical product layout with no parallel activities is determined by the:
 
 
48.
Nearness to raw materials would be most important to a:
 
 
49.
One of these is not a characteristic of a well-designed service system:
 
 
50.
One possible disadvantage of modular design is that:
 
 
51.
Problem 8 Page 291
 
 
52.
The process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements is called:
 
 
53.
Product Life cycle management (PLM) incorporates all of the following except:
 
 
54.
The range of probability for which an alternative has the best expected payoff can be determined by:
 
 
55.
The ratio of actual output to design capacity is:
 
 
56.
Retail businesses often engage in ____________, the tendency to locate in close proximity to one another.
 
 
57.
Seasonal variations are often easier to deal with in capacity planning than random variations because seasonal variations tend to be
 
 
58.
• Seasonal variations are often easier to deal with in the capacity planning than random variations because seasonal variations tend to be:
 
 
59.
Sensitivity analysis is useful because:
 
 
60.
Short-term considerations in determining capacity requirements include:
 
 
61.
Software systems known as GIS help in location analysis. The initials GIS stand for:
 
 
62.
Students at a major university must go through several registration steps. Officials have observed that it is typically the case that the waiting line at the fee-payment station is the longest. This would seem to suggest that the fee-payment station is the ___________ in the student registration process.
 
 
63.
The substitution of machinery that has sensing and control devices for human labor is best described by the term:
 
 
 

64.
Suppose a firm has decided to break its departments down into smaller units. While this likely will help with __________ issues, it raises the possibility that poor decisions will result due to __________.
 
 
65.
A tabular presentation that shows the outcome for each decision alternative under the various possible states of nature is called a:
 
 
66.
The term "degree of newness" is associated with:
 
 
67.
The term "opportunity loss" is most closely associated with:
 
 
68.
The term "sensitivity analysis" is most closely associated with:
 
 
69.
The term "suboptimization" is best described as the:
 
 
70.
• The decision to outsource opens the firm up to certain risks, amount them ___ and ____ :
 
 
71.
• The method of financial analysis which results in an equivalent interest rate is
 
 
72.
The type of processing system which is used for highly standardized products is:
 
 
73.
Utilization is defined as the ratio of:
 
 
74.
When making location decisions, nonprofit organizations differ from for-profit ones in seeking a balance between:
 
 
75.
When service firms such as retailers or banks make growth-spurred location decisions, typically these involve:
 
 
76.
Which closeness rating reflects the highest importance for two departments being close to each other?
 
 
77.
Which of the following characterizes decision making under uncertainty?
 
 
78.
Which of the following is an example of a postponement tactic
 
 
79.
Which of the following is least important as a consideration for a firm at the beginning of a supply chain?
 
 
80.
Which of the following is not an approach for decision making under uncertainty?
 
 
81.
Which of the following is not an approach that companies use to achieve a smooth flow of production?
 
 
82.
Which of the following is not a reason why capacity decisions are so important?
 
 
83.
Which of the following is not a significant concern for process selection?
 
 
84.
Which of the following is not a stage in the decision-making process?
 
 
85.
Which of the following is not a strategy to manage service capacity or cope with service capacity limitations?
 
 
86.
Which of the following is not true about process layouts when they are compared to product layouts?
 
 
87.
Which of the following is the case where capacity is measured in terms of inputs?
 
 
88.
Which of the following is the last step in the procedure for making location decisions?
 
 
89.
Which of the following makes using present value approaches in capacity decisions difficult?
 
 
90.
• Which of the following would not be a potential upside in a decision to outsource?
 
 
 

91.
Which of the following would not be a potential upside in a decision to outsource?
 
 
92.
Which one of the following is not considered an important factor in retail layout design?
 
 
93.
Which one of these drive a machine tool by communicating the details of the operations to be performed?
 
 
94.
Which one of these is not used in decision making under risk?
 
 
95.
Which phrase best describes the term "bounded rationality"?
 
 
96.
Which statement best characterizes the objective of a typical search for location alternatives?
 
 
 

 

1.
Accounting, purchasing, and inventory control are fairly routine with process layouts.
 
 
2.
An advantage of a U-shaped production line is that:
 
 
3.
An advantage of a U-shaped production line is that it facilitates teamwork and flexibility in work assignments.
 
 
4.
The advantages of automation include:

(I) reduced output variability.
(II) reduced variable costs.
(III) machines don't strike or file grievances.
(IV) machines are always less expensive than human labor.
 
 
5.
Although they do not guarantee optimal solutions, ______________ are useful in finding reasonable solutions when the number of possible options is overwhelming.
 
 
6.
Among the benefits claimed for cellular manufacturing are less material handling and reduced setup time.
 
 
7.
As a general rule, continuous processing systems produce products with very little variety.
 
 
8.
As compared to rigid automation, the benefits of flexible manufacturing systems include:
 
 
9.
The assembly line layout is sometimes called a product layout because the focus here is on the product itself as it moves through the factory.
 
 
10.
Avoiding bottlenecks is the primary goal of product design.
 
 
11.
"Balance delay" is another name for the percentage of idle time in a process layout.
 
 
12.
"Balance delay" is another name for the percentage of idle time in a product layout.
 
 
13.
Based on the characteristics of your product, you might adopt a make-to-stock strategy or a make-to-order strategy.
 
 
14.
A cafeteria line would be an example of a process-focused layout.
 
 
15.
Cellular layouts are associated with:
 
 
16.
A common goal in designing process layouts is:
 
 
17.
Common reasons for redesign of layouts include:

(I) efficient operations.
(II) accidents or safety hazards.
(III) new products or services.
(IV) morale problems.
 
 
18.
A company is designing a product layout for a new product. It plans to use this production line eight hours a day in order to meet projected demand of 480 units per day. The tasks necessary to produce this product are:

Task Time(secs) Immediate
Predecessor
u 30 none
v 30 u
w 6 u
x 12 w
y 54 x
z 30 v,y

Without regard to demand, what is the minimum possible cycle time (in seconds) for this situation?
 
 
19.
A company needs to locate three departments (X, Y, and Z) in the three areas (I, II, and III) of a new facility. They want to minimize interdepartmental transportation costs, which are expected to be $.50 per load meter moved. An analyst has prepared the following flow and distance matrices:


Distances (meters)
From/To I II III
I - 10 20
II - 10
III -

Flows (loads per week)
From/To X Y Z
X - 0 80
Y 30 - 150
Z 100 130 -

What is the distance (in meters) from area III to area I of this new facility?
 
 
20.
A company needs to locate three departments (X, Y, and Z) in the three areas (I, II, and III) of a new facility. They want to minimize interdepartmental transportation costs, which are expected to be $.50 per load per meter moved. An analyst has prepared the following distances and flow matrices:

Distances (meters)
From/To I II III
I - 10 20
II - 10
III -

Flows (loads per week)
From/To X Y Z
X - 60 90
Y 40 - 160
Z 110 140 -

What is the distance (in meters) from area III to area I in this new facility?
 
 
21.
A company needs to rebalance a product layout for producing new plastic license plates. They plan to use the assembly line six hours in order to meet projected demand of 2,160 license plates each day. The following table describes the tasks involved in the production of this product:

Task Time(secs) Immediate
Predecessor
a 3 none
b 4 none
c 5 a,b
d 7 none
e 9 c,d

Without regard to projected demand, what is the minimum possible cycle time for this assembly line?
 
 
22.
Computer-aided manufacturing refers to the use of computers in:
 
 
23.
Computer-integrated manufacturing integrates all of the following except ______________ with manufacturing.
 
 
24.
Continuous processing is the best way to produce customized output.
 
 
25.
Continuous production systems are typically very rigid and costly to change.
 
 
 
 
 
 
 
 
 

26.
Daily capacity of a product layout is determined by:
 
 
27.
A disadvantage of a product layout can be high in-process inventory costs.
 
 
28.
The estimation of costs is generally most difficult when the ___________ process has been chosen.
 
 
29.
An example of automated services is:
 
 
30.
Flexible manufacturing systems bring the benefits of automation to continuous processes.
 
 
31.
For a production line, daily capacity can be determined by dividing the daily operating time by the line's cycle time.
 
 
32.
For output to equal forecasted demand, what is the theoretical minimum number of workstations needed?
 
 
33.
For output to equal forecasted demand, what should be the actual cycle time for this production?
 
 
34.
For output to equal forecasted demand, what will be the efficiency of the production line that uses the least number of workstations?
 
 
35.
For output to equal forecasted demand, what will be the second task performed at the second workstation of the production line that uses the fewest number of stations?
 
 
36.
For output to equal projected demand, what is the theoretical minimum number of workstations needed?
 
 
37.
For output to equal projected demand, what should be the actual cycle time for this assembly line?
 
 
38.
For output to equal projected demand, what should be the actual cycle time for this production line?
 
 
39.
For output to equal projected demand, what will be the efficiency of the assembly line that uses the minimum number of workstations?
 
 
40.
For output to equal projected demand, what will be the efficiency of the production line that uses the theoretical minimum number of workstations?
 
 
41.
For output to equal projected demand, what will be the first task performed at the third workstation of the production line which uses the minimum number of stations?
 
 
42.
For output to equal projected demand, what will be the idle time at the second workstation of the assembly line that uses the minimum number of workstations?
 
 
43.
The goal of line balancing is to assign tasks to workstations in such a way that the workstations have approximately equal time requirements.
 
 
44.
The grouping of equipment by the operations needed to perform similar work for part families is:
 
 
45.
A group of machines including supervisory computer control, automatic material handling, and possibly robots is called:
 
 
46.
Group technology is closely connected to cellular manufacturing.
 
 
47.
Heuristic rules are used primarily in which of these types of layouts?

(I) Product
(II) Process
(III) Fixed-position
 
 
48.
Heuristic rules are usually applied when:
 
 
49.
Heuristic rules for line balancing will guarantee an optimal solution.
 
 
50.
How many least costly process layouts are there?
 
 
51.
An idle percentage of zero means a line is perfectly balanced.
 
 
52.
If a line is balanced with 80 percent efficiency, the "balance delay" will be:
 
 
53.
If departments X, Y, and Z were to be located in areas I, II, and III, respectively, what would be the total distance (in meters) loads would be moved each week?
 
 
54.
If the company wants the output rate to be equal to demand, what is the desired cycle time (in seconds)?
 
 
55.
If the company wants the output rate to be equal to demand, what is the theoretical minimum number of workstations needed?
 
 
 

57.
If the company wants the output rate to be equal to demand, which task should be assigned to the second station if tasks are assigned in order of most following tasks with longest task time as a tiebreaker.
 
 
58.
If the company were to locate departments X, Y, and Z in areas I, II, and III, respectively, what would be the total distance (in meters) loads would be moved each week?
 
 
59.
In an environment in which demand is both substantial and stable, __________ technology tends to be the best choice.
 
 
60.
In a product layout, the task of deciding how to assign work to specific stations is referred to as:
 
 
61.
In cellular manufacturing, machines and equipment are grouped by type (e.g., all grinders are grouped into a cell).
 
 
62.
Information technology refers to competitive data.
 
 
63.
In general, job-shop systems have a lower unit cost than continuous systems do because continuous systems use costly specialized equipment.
 
 
64.
In some service industries, facility layout may influence sales volume and customer attitudes.
 
 
65.
Intermittent processing can take the form of batch processing or a job shop.
 
 
66.
In the use of closeness ratings for process layouts, the code U means the closeness between two departments is:
 
 
67.
In which type of operation are you likely to see, at most, only minor variations in the product or service being produced using the same process and the same equipment?
 
 
68.
In which type of processing system would gasoline be produced from crude oil?
 
 
69.
A job-shop processing system generally requires less-skilled workers than a continuous processing system.
 
 
70.
Job shops tend to be __________ while continuous processes tend to be __________.
 
 
71.
Key aspects of the process selection challenge include _________ and __________.
 
 
72.
The key questions in the process selection task are:

(I) How will the product/service be priced?
(II) How much variety will be imposed on the process?
(III) What is the target market for the product/service?
(IV) At what volume will the process need to operate?
 
 
73.
The key to running an efficient assembly line is:
 
 
74.
Laser technology used in surgical procedures is an example of technological advances in:
 
 
75.
Layout design has many objectives, one of which is:
 
 
76.
A layout in which workstations are grouped based on the operations needed to perform work on a set of similar items, or part families, is a:
 
 
77.
A low-volume process that produces customized products is called a:
 
 
78.
The main issue in the design of process layouts concerns the relative positioning of the departments involved.
 
 
79.
The main issue in the design of process layouts for service operations concerns the relative positioning of:
 
 
 

80.
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 case of Mint Chocolate Chip Cookies.

Task Time(secs) Immediate
Predecessor
u 4 none
v 14 u
w 12 v
x 12 v
y 6 w
z 8 x,y

Without considering projected demands, what is the minimum possible cycle time for this production line?
 
 
81.
A manufacturing cell allows the production of a wide range of very different products.
 
 
82.
The maximum allowable cycle time is computed as:
 
 
83.
The minimum number of workstations for a production line is determined in part by the desired output rate.
 
 
84.
The minimum possible cycle time in a typical product layout with no parallel activities is determined by the:
 
 
85.
Mismatches between operational capabilities and market demand can have a negative impact on an organization.
 
 
86.
Morale problems can be a reason for redesign of a facility layout.
 
 
87.
An operations strategy for process selection should recognize that:
 
 
88.
An optimal set of assignments for a production line cannot be obtained by assigning tasks to workstations in order of either: (1) the most following tasks;or (2) the sum of the task's time and the times of all following tasks.
 
 
89.
The percentage of idle time in an assembly line is called cycle time.
 
 
90.
A possible disadvantage of a product layout is an inflexible system.
 
 
91.
Process choice is _________ driven.
 
 
92.
A process layout is more susceptible to shutdowns caused by equipment breakdowns than a product layout.
 
 
93.
Process layouts feature departments or other functional groupings of personnel or equipment.
 
 
94.
The process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements is called:
 
 
95.
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. For a single production line with no parallel activities, the minimum cycle time in minutes is:
 
 
96.
A production line is to be designed for a job with three tasks. The task times are .4 minutes, 1.2 minutes, and .5 minutes. The maximum cycle time in minutes is:
 
 
97.
Product layouts can more easily adapt to variations in product requirements than process layouts can.
 
 
98.
Product layouts typically achieve high utilization of labor and equipment.
 
 
99.
Product profiling links key product or service requirements to:
 
 
 

100.
QRS Corp. is designing a product layout for a new product. They plan to use this production line 10 hours a day in order to meet forecasted demand of 900 units per day. The following table describes the tasks necessary to produce this product:


Task Time(secs) Immediate
Predecessor
a 34 none
b 20 a
c 10 b
d 16 b
e 10 c
f 24 d,e
g 38 f

Without considering forecasted demand, what is the minimum possible cycle time for this production line?
 
 
101.
Repetitive processing systems repetitively rotate production through small batches of a variety of products.
 
 
102.
Right-sized equipment tends to be larger than equipment used in traditional process layouts.
 
 
103.
A service organization such as a hospital is likely to use a(n) ________ layout because of variability in customer processing requirements.
 
 
104.
The substitution of machinery that has sensing and control devices for human labor is best described by the term:
 
 
105.
The term "computer-aided manufacturing" refers primarily to the use of robotics in process control.
 
 
106.
There are three basic process types: input, processing, and output.
 
 
107.
The type of layout in which workers, materials, and equipment are moved to the product as needed is:
 
 
108.
The type of layout which features departments or other functional groupings in which similar activities are performed is:
 
 
109.
The type of processing system which is used for highly standardized products is:
 
 
110.
A type of process that creates one-of-a-kind products is: (Choose all that apply)
 
 
111.
What are total weekly costs for an optimum layout?
 
 
112.
What are total weekly costs for the least costly process layout?
 
 
113.
What is it about job shops that make them appropriate for products in the introductory phase of their life cycle?
 
 
114.
What is it about repetitive processes that make them appropriate for products in the maturity phase of their life cycle?
 
 
115.
What is the total flow (loads per week) between department Y and department Z?
 
 
116.
What is the total flow (loads per week) between department Y and department Z?
 
 
117.
When new products or services are being planned, process selection occurs as a matter of course. Process selection also comes into play as a result of:

(I) technological changes.
(II) competitive pressures.
(III) fundamental changes in demand patterns.
 
 
118.
Which closeness rating reflects indifference on the nearness or lack of nearness of two departments?
 
 
119.
Which closeness rating reflects the highest importance for two departments being close to each other?
 
 
120.
Which closeness rating reflects the undesirability of having two departments located near each other?
 
 
121.
Which layout will minimize the total distance loads will be moved each week?
 
 
122.
Which of the following is not a characteristic of layout decisions in system design?
 
 
123.
Which of the following is not an approach that companies use to achieve a smooth flow of production?
 
 
124.
Which of the following is not an information requirement for the design of a process layout?
 
 
 

125.
Which of the following is not a process type commonly considered in making products or delivering services?
 
 
126.
Which of the following is not a significant concern for process selection?
 
 
127.
Which of the following is not true about process layouts when they are compared to product layouts?
 
 
128.
Which of the following process types would be most likely to be used in the introductory phase of a product's life cycle?
 
 
129.
Which of the following process types would be most likely to be used in the maturity phase of a product's life cycle?
 
 
130.
Which of these items would be most likely to be made with a fixed-position layout?
 
 
131.
Which one of the following is not common to product layouts?
 
 
132.
Which one of the following is not considered an important factor in retail layout design?
 
 
133.
Which one of these drive a machine tool by communicating the details of the operations to be performed?
 
 
134.
Which phrase most closely describes flexible manufacturing systems?
 
 
135.
Which term is most closely associated with cellular manufacturing?
 
 
136.
Which type of processing system tends to produce the most product variety?
 
 
137.
Your selection of a layout format for your facility depends on: (Choose all that apply)