OPMA FINAL

A company wants to determine its reorder point (R). Demand is variable and they want to build a safety stock into R. The company wants to have a service probability coverage of 95 percent. If average daily demand is 8, lead time is 3 days, and the standard deviation of usage during lead time is 2, which of the following is the desired value of R? A. About 17.9 B. About 19.7 C. About 24.0 D. About 27.3 E. About 31.2

D. About 27.3

A company wants to determine its reorder point (R). Demand is variable and they want to build a safety stock into R. If the average daily demand is 12, the lead time is 5 days, the desired "z" value is 1.96, and the standard deviation of usage during lead time is 3, which of the following is the desired value of R? A. About 6 B. About 16 C. About 61 D. About 66 E. About 79

D. About 66

Which of the following basic types of process structures is one which equipment or work processes are arranged according to the progressive steps by which the product is made? A. Project B. Workcenter C. Manufacturing cell D. Assembly line E. Continuous process

D. Assembly line

A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below: Using CPM, which activities have slack in this project? A. A, B, C B. B, D C. Only C D. C, E E. F, G

D. C, E

Which of the following forecasting methods is very dependent on selection of the right individuals who will judgmentally be used to actually generate the forecast? A. Time series analysis B. Simple moving average C. Weighted moving average D. Delphi method E. Panel consensus

D. Delphi method

Compared with a service operation, a manufacturing operation's capacity is which of the following? A. More dependent on time and location B. Subject to more volatile demand fluctuations C. Utilization more directly impacts quality D. Demand can be smoothed by inventory policies E. More capable of reacting to demand fluctuations

D. Demand can be smoothed by inventory policies

One of the main purposes of a MRP system is which of the following? A. Track inventory levels B. Create productive capacity C. Decrease layers of management D. Develop schedules specifying when each component should be ordered or produced. E. Upgrade manufacturing's professionalism

D. Develop schedules specifying when each component should be ordered or produced.

Which of the following is not a step in developing a manufacturing cell layout? A. Grouping parts into families that follow a common sequence of steps B. Identifying dominant flow patterns of parts families as a basis for location of processes C. Physically grouping machines and processes into cells D. Disposing of left-over machinery and outsourcing ungrouped processes E. None of the above

D. Disposing of left-over machinery and outsourcing ungrouped processes

The ability to rapidly and inexpensively switch production from one product to another enables what are sometimes referred to as: A. Economies of scale B. Economies of size C. Economies of shape D. Economies of scope E. Economies of shipping

D. Economies of scope

Which of the following is not considered a major work flow structure? A. Work Center B. Project C. Assembly line D. Fabrication E. Continuous Flow

D. Fabrication

In making any decision that affects inventory size, which of the following costs do not need to be considered? A. Holding costs B. Setup costs C. Ordering costs D. Fixed costs E. Shortage costs

D. Fixed costs

For which of the following should we use a "p" chart to monitor process quality? A. The dimensions of brick entering a kiln B. Lengths of boards cut in a mill C. The weight of fluid in a container D. Grades in a freshman "pass/fail" course E. Temperatures in a classroom

D. Grades in a freshman "pass/fail" course

When deciding to add capacity to a factory which of the following need not be considered? A. Maintaining system balance B. The frequency of capacity additions C. Use of external capacity D. Immediate product demand E. Availability of raw materials

D. Immediate product demand

An opportunity flow diagram as part of a six-sigma quality improvement process might be found in which DMAIC category? A. Define B. Measure C. Analyze D. Improve E. Control

D. Improve

Which of the following is the cost of quality classification for costs such as scrap, rework, or repair? A. Appraisal costs B. Prevention costs C. External failure costs D. Internal failure costs E. Rework and wastage

D. Internal failure costs

According to Little's Law, which of the following ratios is used to find throughput rate? A. Cycle time/Process time B. Throughput time/Process velocity C. Process velocity/Throughput time D. Inventory/Flow time E. Value added time/Process velocity

D. Inventory/Flow time

Which of the following is not one of the categories of manufacturing inventory? A. Raw materials B. Finished products C. Component parts D. Just-in-time E. Supplies

D. Just-in-time

Which of the following is a dynamic lot-sizing technique that adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size, picking the lot size with the lowest unit cost? A. Economic order quantity B. Lot-for-lot C. Least total cost D. Least unit cost E. Inventory item averaging

D. Least unit cost

In business forecasting, what is usually considered a short-term time period? A. Four weeks or less B. More than three months C. Six months or more D. Less than three months E. One year

D. Less than three months

An advantage of a pure project where self-contained teams work full time on a project is which of the following? A. Team members can work on several projects B. Functional area is a "home" after the project is completed C. There are duplicated resources D. Lines of communication are shortened E. Overall organizational policies and goals can be ignored

D. Lines of communication are shortened

Which of the following is not a major strategic operational competitive dimension that forms a company's competitive position? A. Cost or price B. Delivery speed C. Delivery reliability D. Management acumen E. Coping with changes in demand

D. Management acumen

In general, which forecasting time frame best identifies seasonal effects? A. Short-term forecasts B. Quick-time forecasts C. Long range forecasts D. Medium term forecasts E. Rapid change forecasts

D. Medium term forecasts

Which of the following is not necessary to compute the order quantity using the fixed-time period model with safety stock? A. Forecast average daily demand B. Safety stock C. Inventory currently on hand D. Ordering cost E. Lead time in days Equation 11.11 is for a

D. Ordering cost

Which of the following is a total measure of productivity? A. Output/Materials B. Output/(Labor + Capital + Energy) C. Output/Labor D. Output/Inputs E. All of the above

D. Output/Inputs

In most cases, demand for products or services can be broken down into several components. Which of the following is not considered a component of demand? A. Average demand for a period B. A trend C. Seasonal elements D. Past data E. Auto-correlation

D. Past data

Which of the following are fixed-time period inventory models? A. The EOQ model B. The least cost method C. The Q model D. Periodic system model E. Just-in-time model

D. Periodic system model

Which of the following is considered a primary report in an MRP system? A. Planning reports B. Performance reports C. Exception reports D. Planned order schedules E. Cycle counting reports

D. Planned order schedules

The Malcolm Baldrige award selection process helps improve quality and productivity by which of the following means? A. Stimulating foreign based suppliers of American companies to improve quality B. Reporting quality levels among American firms C. Identifying American firms with the most difficult quality problems D. Providing feedback to applicants by the examiners E. Helping Baldrige award winners increase their sales

D. Providing feedback to applicants by the examiners

When balancing an assembly line, which of the following is not a way to reduce the longest task time below the required workstation cycle time? A. Upgrade the equipment B. Assign a roaming helper to support the line C. Split the task between two workstations D. Speed up the assembly line transfer mechanism E. Use a more skilled worker

D. Speed up the assembly line transfer mechanism

Which of the following is considered a "pure" production planning strategy? A. Variable workforce, stable work hours B. Lag demand C. Level playing field D. Stable workforce, variable work hours E. Product warehouse

D. Stable workforce, variable work hours

Which of the following are not eligible to be considered for the Baldrige Award? A. Small businesses B. Health care organizations C. Educational institutions D. State highway patrol organizations E. Nuclear power plants

D. State highway patrol organizations

Using the ABC classification system for inventory, which of the following is a true statement? A. The "C" items are of moderate dollar volume B. You should allocate about 50 % of the dollar volume to "B" items C. The "A" items are of low dollar volume D. The "A" items are of high dollar volume E. Inexpensive and low usage items are classified as "C" no matter how critical

D. The "A" items are of high dollar volume

You have just used the capability index (Cpk) formulas to compute the two values "min [1, 1]." Which of the following is the proper interpretation of these numbers? A. The true capability index value is exactly 1 B. The mean of the production process has shifted to the left of the design limits C. The mean of the production process has shifted to the right of the design limits D. The mean has not shifted at all E. None of the above

D. The mean has not shifted at all

In a Gantt chart the horizontal axis is usually which of the following? A. Activities B. Cost C. Profit D. Time E. Milestones

D. Time

A company is planning for its financing needs and uses the basic fixed-order quantity inventory model. Which of the following is the total cost (TC) of the inventory given an annual demand of 10,000, setup cost of $32, a holding cost per unit per year of $4, an EOQ of 400 units, and a cost per unit of inventory of $150? A. $1,501,600 B. $1,498,200 C. $500,687 D. $499,313 E. None of the above

A. $1,501,600

You have collected the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the project "direct costs" are given below. The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days the total indirect costs are $400, 15 days they will be $250, 14 days they will be $200, and 13 days they will be $100. If you crash this project by one day what is the total (i.e., direct and indirect) project cost? A. $2,150 B. $2,300 C. $2,400 D. $2,450 E. $2,500

A. $2,150

If you were selecting from a variety of forecasting models based on MAD, which of the following MAD values from the same data would reflect the most accurate model? A. 0.2 B. 0.8 C. 1.0 D. 10.0 E. 100.0

A. 0.2

Using the assembly-line balancing procedure, which of the following is the required cycle time if the production time in minutes per day is 1440 and the required output per day in units is 2000? A. 0.72 B. 1.388 C. 250 D. 500 E. Cannot be determined from the information above

A. 0.72

If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity utilization rate? A. 0.75 B. 1.00 C. 1.33 D. 2.33 E. 300

A. 0.75

Which of the following is the net requirement using an MRP program if the gross requirement is 1,250 and the inventory on hand is 50? A. 1,200 B. 1,300 C. 1,150 D. 2,450 E. None of the above

A. 1,200

The total output from a production system in one day is 900 units and the total labor necessary to produce the 900 units is 900 hours. Using the appropriate productivity measure, what is the resulting productivity ratio? A. 1.000 B. 1.428 C. 0.700 D. 0.411 E. None of the above

A. 1.000

If you are going to develop an "R" chart based on range statistics and you are using a sample size of 15 for your charting purposes. Which of the following is the upper control limit D4 factor for the chart? A. 1.65 B. 1.70 C. 1.76 D. 1.87 E. 1.92

A. 1.65

Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the six tasks that make up the job are 4, 6, 7, 2, 6, and 5 minutes, and the cycle time is 10 minutes? A. 3 B. 5 C. 6 D. 8 E. None of the above

A. 3

If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per order is $50, which of the following is the EOQ lot size? A. 350 B. 247 C. 23 D. 185 E. 78

A. 350

You are developing an "X-bar" chart based on sample means. You know the standard deviation of the sample means is 4, the desired confidence level is 99.7 percent, and the average of the sample means is 24. Which of the following is your UCL? A. 36 B. 24 C. 12 D. 4 E. None of the above

A. 36

If a firm produced a standard item with relatively stable demand, the smoothing constant alpha (reaction rate to differences) used in an exponential smoothing forecasting model would tend to be in which of the following ranges? A. 5 % to 10 % B. 20 % to 50 % C. 20 % to 80 % D. 60 % to 120 % E. 90 % to 100 %

A. 5 % to 10 %

You are using an exponential smoothing model for forecasting. The running sum of the forecast error statistics (RSFE) are calculated each time a forecast is generated. You find the last RSFE to be 34. Originally the forecasting model used was selected because it's relatively low MAD of 0.4. To determine when it is time to re-evaluate the usefulness of the exponential smoothing model you compute tracking signals. Which of the following is the resulting tracking signal? A. 85 B. 60 C. 13.6 D. 12.9 E. 8

A. 85

Using the fixed-time period inventory model, and given an average daily demand of 75 units, 10 days between inventory reviews, 2 days for lead time, 50 units of inventory on hand, a service probability of 95 percent, and a standard deviation of demand over the review and lead time of 8 units, which of the following is the order quantity? A. 863 B. 948 C. 1,044 D. 1,178 E. 4,510

A. 863

A project starts out as which of the following? A. A Statement of Work B. Critical Path Method (CPM) C. A series of milestones D. A Gantt chart E. A latest-start-time estimate

A. A Statement of Work

Which of the following are the recommended percentage groupings of the ABC classifications of the dollar volume of products? A. A items get 15%, B items get 35%, and C items get 50% B. A items get 15%, B items get 45%, and C items get 40% C. A items get 25%, B items get 35%, and C items get 40% D. A items get 25%, B items get 15%, and C items get 60% E. A items get 20%, B items get 30%, and C items get 50%

A. A items get 15%, B items get 35%, and C items get 50%

Quality control charts usually have a central line and upper and lower control limit lines. Which of the following are reasons that the process being monitored with the chart should be investigated? A. A single plot falls above or below the control limits B. Normal behavior C. A large number of plots are on or near the central line D. No real trend in any direction E. A change in raw materials or operators

A. A single plot falls above or below the control limits

A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below: Using CPM, which activities make up the critical path? A. A, B, D, F, G B. A, C, E, F, G C. A, C, B, F, E D. A, D, E E. None of the above There are only two paths, ABDFG & ACEFG. ABDFG takes 13 days while ACEFG takes 11 days. ABDFG (answer A) is the critical path.

A. A, B, D, F, G

You would like to use the fixed-time period inventory model to compute the desired order quantity for a company. You know that vendor lead time is 5 days and the number of days between reviews is 7. Which of the following is the standard deviation of demand over the review and lead time if the standard deviation of daily demand is 8? A. About 27.7 B. About 32.8 C. About 35.8 D. About 39.9 E. About 45.0

A. About 27.7

Which of the following is a dimension of design quality? A. Aesthetics B. Price C. Quality at the source D. Distribution E. Leadership

A. Aesthetics

Which of the following is not included as an inventory holding cost? A. Annualized cost of materials B. Handling C. Insurance D. Pilferage E. Storage facilities

A. Annualized cost of materials

Which of the following is the cost of quality classification for costs such as inspection, testing, and other tasks to ensure that the product or process is acceptable? A. Appraisal costs B. Prevention costs C. External failure costs D. Internal failure costs E. Checking costs

A. Appraisal costs

Which of the following are eligible companies to be considered for the Baldrige award? A. Auditing firms B. Offshore suppliers to U. S. companies C. Firms operating only outside the U. S. D. State Government agencies E. None of the above

A. Auditing firms

Which of the following is an input file necessary to run an MRP system? A. Bill of materials (BOM) file B. Quality management report C. Exception reports D. Planned-order schedules E. Purchasing contracts

A. Bill of materials (BOM) file

In conducting aggregate operations planning there are a number of required inputs. Which of the following are inputs considered external to the firm? A. Competitor behavior and economic conditions B. Market demand and inventory levels C. Subcontractor capacity and current workforce D. Economic conditions and current physical capacity E. Raw material availability and inventory levels

A. Competitor behavior and economic conditions

A major competitive dimension that forms a company's strategic operational competitive position in their strategic planning is which of the following? A. Cost or price B. Focus C. Automation D. Straddling E. Activity-system mapping

A. Cost or price

In most cases, demand for products or services can be broken into several components. Which of the following is considered a component of demand? A. Cyclical elements B. Future demand C. Past demand D. Inconsistent demand E. Level demand

A. Cyclical elements

For which of the following should we use a "p" chart to monitor process quality? A. Defective electrical switches B. Errors in the length of a pencil C. Weight errors in cans of soup D. Temperature of entrees in a restaurant E. Letter grades on a final examination

A. Defective electrical switches

A flow chart as part of a six-sigma quality improvement process might be found in which DMAIC category? A. Define B. Measure C. Analyze D. Improve E. Control

A. Define

Which of the following are fixed-order quantity inventory models? A. Economic order quantity model B. The ABC model C. Periodic replenishment model D. Cycle counting model E. P model

A. Economic order quantity model

Which of the following industry types will not benefit greatly from the application of MRP? A. Fabricate-to-order B. Assemble-to-stock C. Assemble-to-order D. Manufacture-to-order E. None of the above

A. Fabricate-to-order

Which of the following is a possible source of bias error in forecasting? A. Failing to include the right variables B. Using the wrong forecasting method C. Employing less sophisticated analysts than necessary D. Using incorrect data E. Using standard deviation rather than MAD

A. Failing to include the right variables

Which of the following are basic assumptions that justify an analysis of the costs of quality? A. Failures are caused B. Prevention is more expensive C. Performance can be learned D. Rules of thumb don't always work E. Appraisal costs are less than prevention costs

A. Failures are caused

The dimension of design quality that concerns secondary characteristics is which of the following? A. Features B. Serviceability C. Reliability D. Reputation E. Perceived quality

A. Features

If a vendor has correctly used marginal analysis to select their stock levels for the day (as in the newsperson problem), and the profit resulting from the last unit being sold (Cu) is $0.90 and the loss resulting from that unit if it is not sold (Co) is $0.50, which of the following is the probability of the last unit being sold? A. Greater than 0.357 B. Greater than 0.400 C. Greater than 0.556 D. Greater than 0.678 E. None of the above

A. Greater than 0.357

A product tree can do which of the following? A. Help to compute component usage B. Reduce product scrap C. Reduce labor overtime D. Reduce regular time labor E. Locate raw material supplies

A. Help to compute component usage

Capacity planning that involves hiring, layoffs, some new tooling, minor equipment purchases, and subcontracting is considered as which one of the following planning horizons? A. Intermediate range B. Long range C. Short range D. Current E. Upcoming

A. Intermediate range

A listing of immediate predecessor activities is important information in a CPM analysis for which of the following reasons? A. It specifies the relationships in the CPM network of activities B. It provides useful timing information C. It includes cost information D. It is the probability information required in the final step of CPM E. None of the above

A. It specifies the relationships in the CPM network of activities

Which of the following is a production planning strategy presented in the textbook? A. Level B. Strategic C. Balanced D. Synchronous E. Optimal

A. Level

A series of projects that are organized in such a way that each project utilizes people from different functional areas is using which of the following organizational structures? A. Matrix project B. Integrated Task Force C. Functional project D. Pure project E. Cross-functional flexible team

A. Matrix project

Which of the following is a partial measure of productivity? A. Output/Materials B. Output/(Labor + Capital + Energy) C. Output/All resources used D. Output/Inputs E. All of the above

A. Output/Materials

If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, what kind of productivity measure could you use to compute productivity? A. Partial measure B. Multifactor measure C. Total measure D. Global measure E. All of the above

A. Partial measure

Which of the following is considered a primary report in an MRP system? A. Planned order schedule B. Peg report C. Planning report D. Inventory accuracy report E. Aggregate production plan report

A. Planned order schedule

In an overview of the major operations planning activities in a typical organization, which of the following activities precedes aggregate sales and operations planning? A. Process planning B. Workforce scheduling C. Master production scheduling D. Materials requirements planning E. Order scheduling

A. Process planning

A BOM file is also called which of the following? A. Product tree B. Stocking plan C. Inventory usage record D. Production parts plan E. Time bucket schedule

A. Product tree

Which of the following is not a basic type of process structure? A. Product-process matrix B. Workcenter C. Manufacturing cell D. Assembly line E. Continuous process

A. Product-process matrix

You have been placed in charge of a large project. Shortened communication lines are required to insure quick resolution of problems as they arise. You recognize that the project is going to take a lot of time and require a lot of team pride, motivation, and commitment by all members. Which project management structure should you use in this situation? A. Pure Project B. Task force C. Matrix Project D. Functional Project E. PERT

A. Pure Project

The philosophical leaders of the quality movement, Philip Crosby, W. Edwards Deming, and Joseph M. Juran had the same general message about what it took to achieve outstanding quality. Which of the following was not part of that message? A. Quality is free B. Leadership from senior management C. Customer focus D. Total involvement of the workforce E. Continuous improvement

A. Quality is free

In general, which forecasting time frame compensates most effectively for random variation and short term changes? A. Short-term forecasts B. Quick-time forecasts C. Long range forecasts D. Medium term forecasts E. Rapid change forecasts

A. Short-term forecasts

Which of the following forecasting methods can be used for short-term forecasting? A. Simple exponential smoothing B. Delphi technique C. Market research D. Hoskins-Hamilton smoothing E. Serial regression

A. Simple exponential smoothing

Which of the following forecasting methodologies is considered a time series forecasting technique? A. Simple moving average B. Market research C. Leading indicators D. Historical analogy E. Simulation

A. Simple moving average

Which of the following is most closely related to the reason a firm might implement MRP? A. So they can order the right parts B. So they can order parts sufficient for immediate use C. So they can insure that parts to arrive prior to when they are needed D. To assure appropriate quality levels E. To keep process costs between the LCL and the UCL

A. So they can order the right parts

In order to determine the standard deviation of usage during lead time in the reorder point formula for a fixed-order quantity inventory model which of the following must be computed first? A. Standard deviation of daily demand B. Number of standard deviations for a specific service probability C. Stockout cost D. Economic order quantity E. Safety stock level

A. Standard deviation of daily demand

When developing an operations and supply chain strategy, which of the following is an important product-specific criterion to consider? A. Technical liaison B. Learning curve C. Competitor's product performance D. Production lot-size E. Total quality management

A. Technical liaison

A company has a MAD of 10. Its wants to have a 99.7 percent control limits on its forecasting system. It's most recent tracking signal value is 3.1. What can the company conclude from this information? A. The forecasting model is operating acceptably B. The forecasting model is out of control and needs to be corrected C. The MAD value is incorrect D. The upper control value is less than 20 E. It is using an inappropriate forecasting methodology

A. The forecasting model is operating acceptably

The exponential smoothing method requires which of the following data to forecast the future? A. The most recent forecast B. Precise actual demand for the past several years C. The value of the smoothing constant delta D. Overall industry demand data E. Tracking values

A. The most recent forecast

A difference between project and continuous flow categories of process flow structures is which two of the following? A. The size and bulk of the product B. Discrete parts moving from workstation to workstation C. Degree of equipment specialization D. Being a "Virtual Factory" E. Profit per unit

A. The size and bulk of the product

The main purpose of aggregate operations planning is to specify the optimal combination of which of the following? A. Workforce levels and inventory on hand B. Inventory on hand and financing costs for that inventory C. The strategic plan and the products available for sale D. The workforce level and the degree of automation E. Operational costs and the cash flow to support operations

A. Workforce levels and inventory on hand

You want to determine the upper control line for a "p" chart for quality control purposes. You take several samples of a size of 100 items in your production process. From the samples you determine the fraction defective is 0.05 and the standard deviation is 0.01. If the desired confidence level is 99.7 percent, which of the following is the resulting UCL value for the line? A. 0.39 B. 0.08 C. 0.06 D. 0.05 E. None of the above

B. 0.08

You have just determined the actual number of workstations that will be used on an assembly line to be 6 using the assembly-line balancing procedure. The cycle time of the line is 5 minutes and the sum of all that tasks required on the line is 25 minutes. Which of the following is the correct value for the resulting line's efficiency? A. 0.500 B. 0.833 C. 0.973 D. 0.990 E. None of the above

B. 0.833

Given a prior forecast demand value of 1,100, a related actual demand value of 1,000, and a smoothing constant alpha of 0.3, what is the exponential smoothing forecast value? A. 1,000 B. 1,030 C. 1,070 D. 1,130 E. 970

B. 1,030

The total output from a production system in one day is 500 units and the total labor necessary to produce the 500 units is 350 hours. Using the appropriate productivity measure, which of the following numbers represents the resulting productivity ratio? A. 1.000 B. 1.428 C. 0.700 D. 0.411 E. None of the above

B. 1.428

Using the probability approach to determine an inventory safety stock and wanting to be 95 percent sure of covering inventory demand, which of the following is the number of standard deviations necessary to have the 95 percent service probability assured? A. 1.28 B. 1.64 C. 1.96 D. 2.00 E. 2.18

B. 1.64

If it takes a supplier 25 days to deliver an order once it has been placed and the standard deviation of daily demand is 20, which of the following is the standard deviation of usage during lead time? A. 50 B. 100 C. 400 D. 1,000 E. 1,600

B. 100

If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity cushion? A. 25 percent B. 100 units per hour C. 75 percent D. 125 percent E. 133 percent

B. 100 units per hour

A company wants to forecast demand using the weighted moving average. If the company uses two prior yearly sales values (i.e., year 2012 = 110 and year 2013 = 130), and we want to weight year 2012 at 10% and year 2013 at 90%, which of the following is the weighted moving average forecast for year 2014? A. 120 B. 128 C. 133 D. 138 E. 142

B. 128

You have collected the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the project "direct costs" are given below. The indirect costs for the project are determined on a daily duration basis. If the project lasts 16 days the total indirect costs are $400, 15 days they will be $250, 14 days they will be $200, and 13 days they will be $100. At what day do we achieve the lowest total project cost (i.e., direct plus indirect costs)? A. 16 days B. 15 days C. 14 days D. 13 days E. 12 days

B. 15 days

If annual demand is 35,000 units, the ordering cost is $50 per order and the holding cost is $0.65 per unit per year, which of the following is the optimal order quantity using the fixed-order quantity model? A. 5,060 B. 2,320 C. 2,133 D. 2,004 E. 1,866

B. 2,320

Various financial data for SunPath Manufacturing for 2012 & 2013 follow. Output:Sales $300,00&330,000 Inputs:Labor $40,000&43,000 Raw Materials $45,000&51,000 Energy $10,000&9,000 Capital Employed$250,000&262,000 Other $2,000&6,000 What is the percentage change in the labor partial productivity measure for SunPath between 2012 & 2013? A. -9.22 B. 2.33 C. -0.53 D. 2.88 E. 10.39

B. 2.33

If it takes a supplier four days to deliver an order once it has been placed and the standard deviation of daily demand is 10, which of the following is the standard deviation of usage during lead time? A. 10 B. 20 C. 40 D. 100 E. 400

B. 20

Given a prior forecast demand value of 230, a related actual demand value of 250, and a smoothing constant alpha of 0.1, what is the exponential smoothing forecast value for the following period? A. 230 B. 232 C. 238 D. 248 E. 250

B. 232

Assuming no safety stock, what is the reorder point (R) given an average daily demand of 78 units and a lead time of 3 days? A. 421 B. 234 C. 78 D. 26 E. 312

B. 234

If annual demand is 12,000 units, the ordering cost is $6 per order and the holding cost is $2.50 per unit per year, which of the following is the optimal order quantity using the fixed-order quantity model? A. 576 B. 240 C. 120.4 D. 60.56 E. 56.03

B. 240

A company has recorded the last six days of daily demand on a single product they sell. Those values are 37, 115, 93, 112, 73, and 110. The time from when an order is placed to when it arrives at the company from its vendor is 3 days. Assuming the basic fixed-order quantity inventory model fits this situation and no safety stock is needed, which of the following is the reorder point (R)? A. 540 B. 270 C. 115 D. 90 E. 60

B. 270

Assuming no safety stock, what is the re-order point (R) given an average daily demand of 50 units, a lead time of 10 days and 625 units on hand? A. 550 B. 500 C. 715 D. 450 E. 475

B. 500

Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product. If the beginning inventory is 500 units, the demand forecast is 1,000, and the necessary safety stock is 10% of the demand forecast, which of the following is the production requirement? A. 1,000 B. 600 C. 550 D. 450 E. 100

B. 600

A company hires you to develop a linear regression forecasting model. Based on the company's historical sales information, you determine the intercept value of the model to be 1,200. You also find the slope value is minus 50. If after developing the model you are given a value of X = 10, which of the following is the resulting forecast value using this model? A. - 1,800 B. 700 C. 1,230 D. 1,150 E. 12,000

B. 700

If annual demand is 50,000 units, the ordering cost is $25 per order and the holding cost is $5 per unit per year, which of the following is the optimal order quantity using the fixed-order quantity model? A. 909 B. 707 C. 634 D. 500 E. 141

B. 707

You want to develop a three-sigma "R" chart. You know the average range is 5 based on several samples of size 10. Which of the following is the resulting UCL? A. 20.9 B. 8.9 C. 7.02 D. 5 E. 3.1

B. 8.9

Which of the following is the portion of observations you would expect to see lying within a plus or minus 2 MAD range? A. 57.04 B. 89.04 C. 98.33 D. 99.86 E. 100.00

B. 89.04

Heavy sales of umbrellas during a rain storm is an example of which of the following? A. A trend B. A causal relationship C. A statistical correlation D. A coincidence E. A fad

B. A causal relationship

What is a work breakdown structure? A. A list of the activities making up the higher levels of the project B. A definition of the hierarchy of project tasks, subtasks, and work packages C. A depiction of the activities making up a project D. A Gantt chart E. A structure that is incompatible with the Critical Path Method

B. A definition of the hierarchy of project tasks, subtasks, and work packages

A simple project listing of five activities and their respective time estimates are presented below: Activity ImmediatePredecessor Day A None 1 B A 2 C A 1 D B and C 3 E D 2 Using CPM, which activities make up the critical path?

B. A, B, D, E

Using the fixed-time period inventory model, and given an average daily demand of 200 units, 4 days between inventory reviews, 5 days for lead time, 120 units of inventory on hand, a "z" of 1.96, and a standard deviation of demand over the review and lead time of 3 units, which of the following is the order quantity? A. About 1,086 B. About 1,686 C. About 1,806 D. About 2,206 E. About 2,686

B. About 1,686

A company has calculated its running sum of forecast errors to be 500 and its mean absolute deviation is exactly 35. Which of the following is the company's tracking signal? A. Cannot be calculated based on this information B. About 14.3 C. More than 35 D. Exactly 35 E. About 0.07

B. About 14.3

If it takes a supplier two days to deliver an order once it has been placed and the daily demand for three days has been 120, 124, and 125, which of the following is the standard deviation of usage during lead time? A. About 2.16 B. About 3.06 C. About 4.66 D. About 5.34 E. About 9.30

B. About 3.06

Applicants for the Baldrige Award for total quality management must submit an application of up to 50 pages that details the processes and results of their activities under seven major categories. Which of the following is one of those categories? A. DMAIC B. Analysis and Remember management C. Standardization D. Control E. Inspection protocols

B. Analysis and Remember management

In most cases, demand for products or services can be broken into several components. Which of the following is considered a component of demand? A. Forecast error B. Autocorrelation C. Previous demand D. Consistent demand E. Repeat demand

B. Auto-correlation

In a workcenter, machine A has a ten minute set-up time per batch and a two minute per unit run time. Machine B performs the identical function but has a set-up time of thirty minutes and a one minute run time per unit. The workcenter makes products in batches ranging from one unit to one hundred units. Assuming capacity is not a limitation on either machine, on which batches should machine B be used? A. All batches should be run on machine B B. Batches of more than 20 units should be run on machine B C. Batches of fewer than 80 units should be run on machine B D. Batches with up to 50 units should be run on machine B E. No batches should be run on machine B

B. Batches of more than 20 units should be run on machine B

Which of the following is usually included as an inventory holding cost? A. Order placing B. Breakage C. Typing up an order D. Quantity discounts E. Annualized cost of materials

B. Breakage

Matching the production rate to the order rate by hiring and laying off employees as the order rate varies is which of the following pure production planning strategies? A. Stable workforce, variable work hours B. Chase C. Level D. Meeting demand E. Minimizing inventory

B. Chase

Which of the following is not one of the "number of interesting issues that arise in yield management?" A. Pricing structures must appear logical to the customer and justify different prices B. Designing yield management programs that cannot be imitated by a competitor C. How to handle variability in customer arrivals, duration, and interval D. Managing the service process E. Training workers and managers to work in a yield management environment

B. Designing yield management programs that cannot be imitated by a competitor

Design of experiments is a statistical methodology often used in six-sigma projects. It aims to accomplish which of the following? A. Keep careful track of the occurrences of each possible defect B. Determine the cause and effect relationships between process variables and output C. Report defects to management on a Pareto chart D. Carefully change each individual process variable until the cause of a defect is found E. Eliminate defects by finding out whom or what is causing them

B. Determine the cause and effect relationships between process variables and output

MRP systems seek to achieve which of the following? A. Minimize lot sizes B. Determine the number of dependent demand items needed C. Relieve capacity bottlenecks D. Provide a yardstick for future improvements E. Improve on JIT methods

B. Determine the number of dependent demand items needed

Which of the following is considered a secondary report in an MRP system? A. Planned order schedule B. Exceptions reports C. Inventory record D. Firm orders from known customers E. Engineering change reports

B. Exceptions reports

Which of the following is a dimension of design quality? A. Price B. Features C. Color D. Weight E. Quality at the source

B. Features

Which of the following is a perpetual system for inventory management? A. Fixed-time period B. Fixed-order quantity C. P model D. First-in-first-out E. The wheel of inventory

B. Fixed-order quantity

Which of the following is not a step used in determining production capacity requirements? A. Forecasting to predict product sales B. Forecasting raw material usage C. Projecting availability of labor D. Calculating equipment and labor needs E. Projecting equipment availability

B. Forecasting raw material usage

From an operational perspective yield management is most effective under which of the following circumstances? A. Demand cannot be segmented by customer B. Inventory is perishable C. Fixed costs are low and variable costs are high D. The customer is a "captive" of the system E. The firm doing yield management is very profitable

B. Inventory is perishable

Capacity planning involving acquisition or disposal of fixed assets such as buildings, equipment or facilities is considered as which one of the following planning horizons? A. Intermediate-range B. Long-range C. Short-range D. Current E. Upcoming

B. Long-range

Which of the following forecasting methodologies is considered a qualitative forecasting technique? A. Simple moving average B. Market research C. Linear regression D. Exponential smoothing E. Multiple regression

B. Market research

A Pareto chart as part of a six-sigma quality improvement process might be found in which DMAIC category? A. Define B. Measure C. Analyze D. Improve E. Control

B. Measure

Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we would expect which of the following? A. A consistent lag of supply behind demand B. Minimized carrying costs C. Minimized set-up costs D. A just in time management philosophy E. Minimized quality problems

B. Minimized carrying costs

Which of the following is a multifactor measure of productivity? A. Output/(Materials) B. Output/(Labor + Capital + Energy) C. Output/All resources used D. Output/Inputs E. All of the above

B. Output/(Labor + Capital + Energy)

Which of the following is an analytical tool used in six-sigma quality improvement programs? A. Leadership B. Pareto Charts C. Management by fact D. Continuous improvement E. Kaizen

B. Pareto Charts

Which of the following is not an analytical tool used in six-sigma quality improvement programs? A. Run charts B. Pass charts C. Cause-and-effect diagrams D. Flowcharts E. Pareto charts

B. Pass charts

The capacity focus concept can be put into practice through a mechanism called which of the following? A. Best operating level (BOL) B. Plant within a plant (PWP) C. Total quality management (TQM) D. Capacity utilization rate (CUR) E. Zero-changeover-time (ZXT)

B. Plant within a plant (PWP)

A cost of quality classification is which of the following? A. Material costs B. Prevention costs C. Variable overhead D. Direct labor E. Inventory costs

B. Prevention costs

Which of the following considerations is not a factor in deciding which forecasting model a firm should choose? A. Time horizon to forecast B. Product C. Accuracy required D. Data availability E. Analyst availability

B. Product

The way to build in greater flexibility in your workers is to do which of the following? A. Pay higher wages to motivate a willingness to do a variety to tasks B. Provide a broader range of training C. Provide a wide variety of technology to augment workers skills D. Institute a "pay for skills" program E. Use part-time employees with specialized skills as needed

B. Provide a broader range of training

In conducting aggregate operations planning there are a number of required inputs. Which of the following are inputs considered external to the firm? A. Inventory levels and market demand B. Raw material availability and competitor's behavior C. Current workforce and economic conditions D. Current physical capacity and market demand E. Subcontractor capacity and inventory levels

B. Raw material availability and competitor's behavior

When a company seeks to match the benefits of a successful position while maintaining its existing position in offering customers a variety of differing services, what is this process called? A. Operations capability analysis B. Straddling C. Order qualifying D. Order winning E. Inter-functional analysis

B. Straddling

When developing inventory cost models, which of the following are not included as costs to place an order? A. Phone calls B. Taxes C. Clerical D. Calculating quantity to order E. Postage

B. Taxes

For an activity in a CPM analysis the Early Finish time is 20 and the Late Finish time is 20. Which of the following statements is true? A. The activity's late start must happen before its early start B. The activity is on the critical path C. The slack for this activity is 20 D. The duration of this task is zero E. The duration of this task is 20

B. The activity is on the critical path

Which of the following is an input to the master production schedule (MPS)? A. Inventory records file B. The aggregate plan C. The bill of materials D. The exception report E. Planned order schedules

B. The aggregate plan

You are hired as a consultant to decide if your client should purchase a new, highly specialized, piece of equipment. The product to be produced by this equipment is forecast to have a total worldwide demand of 15,000 units over the entire product life. The initial investment to acquire and install the equipment is $256,000. The variable cost to produce each unit will be $15 and the selling price for the finished product will be $30. Which of the following best describes the situation the firm is facing? A. The company will recover its initial investment B. The company's total margin will be less than its investment C. It is a good investment D. The break-even is lower than the 15,000 units that are expected to sell E. All of the above

B. The company's total margin will be less than its investment

You are hired as a consultant to advise a small firm on forecasting methodology. Based on your research you find the company has a MAD of 3. Its wants to have a 99.7 percent control limits on its forecasting system. It's most recent tracking signal value is 15. What should be your report to the company? A. The forecasting model is operating acceptably B. The forecasting model is out of control and needs to be corrected C. The MAD value is incorrect D. The upper control value is less than 20 E. The company is using an inappropriate forecasting methodology

B. The forecasting model is out of control and needs to be corrected

You have just used the capability index (Cpk) formulas to compute the two values "min [2, 2.5]." Which of the following is the proper interpretation of these numbers? A. The true capability index value is 2.5 B. The mean of the production process has shifted to the left of the design limits C. The mean of the production process has shifted to the right of the design limits D. The mean has not shifted at all E. The true capability index value is between 2 and 2.5

B. The mean of the production process has shifted to the left of the design limits

In business forecasting, what is usually considered a medium-term time period? A. Six weeks to one year B. Three months to two years C. One to five years D. One to six months E. Six months to six years

B. Three months to two years

According to Little's law, which of the following can be used to estimate work-in-process inventory? A. Process time/Cycle time B. Throughput rate times Flow time C. Process velocity/Flow time D. Set up time/Throughput rate E. Value added time/Process velocity

B. Throughput rate times Flow time

In an MRP program, the program accesses the status segment of an inventory record according to specific periods called which of the following? A. Cubed time units B. Time buckets C. BOM units D. Time modules E. Time lines

B. Time buckets

Which of the following should we use an "R" chart to monitor process quality? A. Grades in a freshman "pass/fail" course B. Tire pressures in an auto assembly plant C. Vehicles passing emissions inspection D. Computer software errors E. Number of units with missing operations

B. Tire pressures in an auto assembly plant

With which of the following should we use an "X-bar" chart based on sample means to monitor process quality? A. Grades in a freshman "pass/fail" course B. Tire pressures in an auto assembly plant C. Vehicles passing emissions inspection D. Computer software errors E. Number of units with missing operations

B. Tire pressures in an auto assembly plant

Which of the following is one of the main purposes of a MRP system? A. Educate personnel in basic work rules B. To determine the amount of materials needed to produce each end item. C. Stimulate the work force D. Decrease labor requirements E. Increase inventory accuracy

B. To determine the amount of materials needed to produce each end item.

Below are the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the costs include both direct and indirect costs. What are the total time of this project and total normal cost? A. Total time is 13 days, total cost is $1200 B. Total time is 12 days, total cost is $1700 C. Total time is 11 days, total cost is $1600 D. Total time is 10 days, total cost is $1750 E. Total time is 9 days, total cost is $1700

B. Total time is 12 days, total cost is $1700

Which of the following is not a category reported in applying for the Baldrige Award? A. Corporate leadership B. Use of statistical quality control tools C. Business results D. Consumer and market focus E. Strategic planning

B. Use of statistical quality control tools

Computer inventory systems are often programmed to produce a cycle count notice in which of the following case? A. When the record shows a near maximum balance on hand B. When the record shows positive balance but a backorder was written C. When quality problems have been discovered with the item D. When the item has become obsolete E. When the item has been misplaced in the stockroom

B. When the record shows positive balance but a backorder was written

Which of the following is one of the categories of manufacturing inventory? A. Economic Order Inventory B. Work-in-process C. Quality units D. JIT Inventory E. Re-order point

B. Work-in-process

Which of the following basic types of process structures is one which similar equipment or functions are grouped together? A. Project B. Workcenter C. Manufacturing cell D. Assembly line E. Continuous process

B. Workcenter

In an overview of the major operations planning activities in a typical service organization, which of the following activities follows aggregate sales and operations planning? A. Process planning B. Workforce scheduling C. Master scheduling D. Materials requirements planning E. Order scheduling

B. Workforce scheduling

You have just performed a CPM analysis and have found that more than one path through the project network has zero slack values. What can you conclude? A. You have incorrectly performed the analysis B. You have multiple critical paths C. Only one path is optimal D. More than one path is optimal E. The project will not be completed by the desired time

B. You have multiple critical paths

Various financial data for SunPath Manufacturing for 2012 & 2013 follow. Output:Sales $300,00&330,000 Inputs:Labor $40,000&43,000 Raw Materials $45,000&51,000 Energy $10,000&9,000 Capital Employed$250,000&262,000 Other $2,000&6,000 What is the percentage change in the multifactor labor and raw materials productivity measure for SunPath between 2012 & 2013?

C. -0.53

You want to determine the lower control line for a "p" chart for quality control purposes. You take several samples of a size of 50 items in your production process. From the samples you determine the fraction defective is 0.006 and the standard deviation is 0.001. If the desired confidence level is 99.7 percent, which of the following is the resulting LCL value for the line? A. 0.0 B. 0.002 C. 0.003 D. 0.004 E. None of the above

C. 0.003

You want to determine the control lines for a "p" chart for quality control purposes. If the total number of defects from all samples is 560, the number of samples is 70, and the sample size is 80, which of the following would be the standard deviation used in developing the control lines? A. 0.9000 B. 0.4556 C. 0.0335 D. 0.0011 E. 0.0112

C. 0.0335

If you are going to develop an "R" chart based on range statistics and you are using a sample size of 9 for your charting purposes. Which of the following is the lower control limit D3 factor for the chart? A. 0.08 B. 0.14 C. 0.18 D. 0.22 E. 0.29

C. 0.18

If you are going to develop an "X-bar" chart based on range statistics and you are using a sample size of 12 for your charting purposes. Which of the following is the A2 factor for the "X-bar" chart? A. 0.37 B. 0.31 C. 0.27 D. 0.22 E. 0.18

C. 0.27

You have just determined the actual number of workstations that will be used on an assembly line to be 8 using the assembly-line balancing procedure. The cycle time of the line is 10 minutes and the sum of all that tasks required on the line is 60 minutes. Which of the following is the correct value for the resulting line's efficiency? A. 0.500 B. 0.650 C. 0.750 D. 0.850 E. None of the above

C. 0.750

Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product. If the beginning inventory is 100 units, the demand forecast is 1,200, and the necessary safety stock is 20% of the demand forecast, which of the following is the production requirement? A. 1,200 B. 1,300 C. 1,340 D. 1,500 E. 1,540

C. 1,340

If the intercept value of a linear regression model is 40, the slope value is 40, and the value of X is 40, which of the following is the resulting forecast value using this model? A. 120 B. 1,600 C. 1,640 D. 2,200 E. 64,000

C. 1,640

If the actual output of a piece of equipment during an hour is 500 units and it's best operating level is at a rate of 400 units per hour, which of the following is the capacity utilization rate? A. 0.75 B. 1.00 C. 1.25 D. 1.33 E. 100

C. 1.25

A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below: Using CPM, what is the Latest Finish Time for the last activity in this project (i.e., the total time to complete the project)? A. 9 days B. 10 days C. 11 days D. 12 days E. 13 days

C. 11 days

A company wants to generate a forecast for unit demand for year 2014 using exponential smoothing. The actual demand in year 2013 was 120. The forecast demand in year 2013 was 110. Using this data and a smoothing constant alpha of 0.1, which of the following is the resulting year 2014 forecast value? A. 100 B. 110 C. 111 D. 114 E. 120

C. 111

A company wants to forecast demand using the simple moving average. If the company uses three prior yearly sales values (i.e., year 2011 = 130, year 2012 = 110, and year 2013 =160), which of the following is the simple moving average forecast for year 2014? A. 100.5 B. 122.5 C. 133.3 D. 135.6 E. 139.3

C. 133.3

A company wants to forecast demand using the simple moving average. If the company uses four prior yearly sales values (i.e., year 2010 = 100, year 2011 = 120, year 2012 = 140, and year 2013 = 210), which of the following is the simple moving average forecast for year 2014? A. 100.5 B. 140.0 C. 142.5 D. 145.5 E. 155.0

C. 142.5

A company wants to forecast demand using the weighted moving average. If the company uses three prior yearly sales values (i.e., year 2011 = 160, year 2012 = 140 and year 2013 = 170), and we want to weight year 2011 at 30%, year 2012 at 30% and year 2013 at 40%, which of the following is the weighted moving average forecast for year 2014? A. 170 B. 168 C. 158 D. 152 E. 146

C. 158

Which of the following values for "z" should we use in as safety stock calculation if we want a service probability of 98%? A. 1.64 B. 1.96 C. 2.05 D. 2.30 E. None of the above

C. 2.05

If there are 400 total defects from 8 samples, each sample consisting of 20 individual items in a production process, which of the following is the fraction defective that can be used in a "p" chart for quality control purposes? A. 400 B. 160 C. 2.5 D. 1.0 E. 0.4

C. 2.5

You want to determine the control lines for a "p" chart for quality control purposes. If the desired confidence level is 99 percent, which of the following values for "z" would you use in computing the UCL and LCL? A. 0.99 B. 2 C. 2.58 D. 3 E. None of the above

C. 2.58

A company has actual unit demand for four consecutive years of 100, 105, 135, and 150. The respective forecasts were 120 for all four years. Which of the following is the resulting MAD value that can be computed from this data? A. 2.5 B. 10 C. 20 D. 22.5 E. 30

C. 20

Which of the following is the planned-order release using an MRP program if the gross requirement is 5,000, inventory on hand is 1,200 and planned receipts are 800? A. 7,000 B. 4,200 C. 3,000 D. 2,000 E. 1,200

C. 3,000

A company has actual unit demand for three consecutive years of 124, 126, and 135. The respective forecasts for the same three years are 120, 120, and 130. Which of the following is the resulting MAD value that can be computed from this data? A. 1 B. 3 C. 5 D. 15 E. 123

C. 5

You would like to use the fixed-time period inventory model to compute the desired order quantity for a company. You know that vendor lead time is 10 days and the number of days between reviews is 15. Which of the following is the standard deviation of demand over the review and lead time period if the standard deviation of daily demand is 10? A. 25 B. 40 C. 50 D. 73 E. 100

C. 50

Which of the following is the net requirement using an MRP program if the gross requirement is 1,000 and the inventory on hand is 500? A. 1,000 B. 950 C. 500 D. 400 E. 350

C. 500

Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of workstations if the task times for the eight tasks that make up the job are 7, 4, 7, 8, 9, 4, 3 and 6 minutes, and the cycle time is 8 minutes? A. 3 B. 5 C. 6 D. 8 E. None of the above

C. 6

A company has recorded the last five days of daily demand on their only product. Those values are 120, 125, 124, 128, and 133. The time from when an order is placed to when it arrives at the company from its vendor is 5 days. Assuming the basic fixed-order quantity inventory model fits this situation and no safety stock is needed, which of the following is the reorder point (R)? A. 120 B. 126 C. 630 D. 950 E. 1,200

C. 630

Assume a fixed cost for a process of $120,000. The variable cost to produce each unit of product is $35, and the selling price for the finished product is $50. Which of the following is the number of units that has to be produced and sold to break-even? A. 5,000 units B. 6,000 units C. 8,000 units D. 11,000 units E. 12,000 units

C. 8,000 units

Larry's Auto Body Repair Shop had revenues that averaged $60,000 per week in April and $50,000 per week in May. During both months, the shop employed six full-time (40 hours/week) workers. In April the firm also had four part-time workers working 25 hours per week but in May there were only 2 part-time workers and they only worked 10 hours per week. What is the percentage change in labor productivity from April to May for Larry's Auto Body Repair? A. -20.00% B. -15.82% C. 8.95% D. 2.3% E. -25.00%

C. 8.95%

As a consultant you have been asked to generate a unit demand forecast for a product for year 2014 using exponential smoothing. The actual demand in year 2013 was 750. The forecast demand in year 2013 was 960. Using this data and a smoothing constant alpha of 0.3, which of the following is the resulting year 2014 forecast value? A. 766 B. 813 C. 897 D. 1,023 E. 1,120

C. 897

Using the assembly-line balancing procedure, which of the following is the required cycle time in minutes per unit if the daily production time is 480 minutes and the required daily output is 50 units? A. 0.104 B. 50 C. 9.6 D. 480 E. Cannot be determined from the information above

C. 9.6

You are developing an "X-bar" chart based on sample means. You know the standard deviation of the sample means is 4, the desired confidence level is 99 percent, and the average of the sample means is 20. Which of the following is your LCL? A. 36 B. 24 C. 9.68 D. 16.79 E. 30.32

C. 9.68

Which of the following is the portion of observations you would expect to see lying within a plus or minus 3 MAD range? A. 57.05 percent B. 88.95 percent C. 98.36 percent D. 99.85 percent E. 100 percent

C. 98.36 percent

An activity-system map is which of the following? A. A network guide to route airlines B. A listing of activities that make up a project C. A diagram that shows how a company's strategy is delivered to customers D. A facility layout schematic noting what is done where E. A timeline displaying major planned events

C. A diagram that shows how a company's strategy is delivered to customers

Some of the advantages of a functional project where the project is housed in a functional division include which of the following? A. The project manager has full authority over the project B. Team pride, motivation, and commitment are high C. A team member can work on several projects D. Needs of the client are secondary E. None of the above

C. A team member can work on several projects

The Pareto principle is best applied to which of the following inventory systems? A. EOQ B. Fixed-time period C. ABC classification D. Fixed-order quantity E. Single-period ordering system

C. ABC classification

Using the fixed-time period inventory model, and given an average daily demand of 15 units, 3 days between inventory reviews, 1 day for lead time, 30 units of inventory on hand, a service probability of 98 percent, and a standard deviation of daily demand is 3 units, which of the following is the order quantity? A. About 30.4 B. About 36.3 C. About 42.3 D. About 56.8 E. About 59.8

C. About 42.3

A fishbone diagram as part of a six-sigma quality improvement process might be found in which DMAIC category? A. Define B. Measure C. Analyze D. Improve E. Control

C. Analyze

Which of the following is the set of all cost components that make up the fixed-order quantity total annual cost (TC) function? A. Annual purchasing cost, annual ordering cost, fixed cost B. Annual holding cost, annual ordering cost, unit cost C. Annual holding cost, annual ordering cost, annual purchasing cost D. Annual lead time cost, annual holding cost, annual purchasing cost E. Annual unit cost, annual set up cost, annual purchasing cost

C. Annual holding cost, annual ordering cost, annual purchasing cost

Which of the following industry types have high expected benefits from the application of MRP? A. Fabricate-to-order B. Hospitals C. Assemble-to-order D. Aircraft manufacturers E. Oil refineries

C. Assemble-to-order

Which of the following industry types have high expected benefits from the application of MRP? A. Fabricate-to-stock B. Fabricate-to-order C. Assemble-to-stock D. Continuous process E. Service and repair parts

C. Assemble-to-stock

Which of the following costs are relevant to aggregate operations planning? A. Sunk costs B. Transaction costs C. Backordering costs D. Legal costs E. Fixed costs

C. Backordering costs

A simple project listing of five activities, their predecessors and their respective time estimates are presented below: Activity ImmediatePredecessor Day A None 2 B A 2 C A 1 D B and C 3 E D 1 Using the CPM, which activities have slack in this project? A. A B. B C. C D. D E. C and E

C. C

Failure mode and effect analysis is used in six-sigma projects. It involves which of the following? A. Closely examining each rejected part to determine the cause B. A careful sampling plan C. Calculating a risk priority number for each possible failure D. Reporting the effect each failure has had on a customer E. Multivariate testing

C. Calculating a risk priority number for each possible failure

In conducting aggregate operations planning there are a number of required inputs. Which of the following are considered inputs internal to the firm? A. Inventory levels and economic conditions B. Market demand and subcontractor capacity C. Current physical capacity and current workforce D. Competitor behavior and current workforce E. Current physical capacity and raw material availability

C. Current physical capacity and current workforce

The philosophical leaders of the quality movement, Philip Crosby, W. Edwards Deming, and Joseph M. Juran had the same general message about what it took to achieve outstanding quality. Which of the following was part of that message? A. Fourteen steps for quality management B. Quality is free C. Customer focus D. Zero defects E. Six-sigma

C. Customer focus

Which of the following models uses a schematic model of the sequence of steps in a problem and the conditions and consequences of each step? A. Probability indexing B. Johnson's sequencing rule C. Decision trees D. Activity System Maps E. Decision mapping

C. Decision trees

The Malcolm Baldrige National Quality Award is given to organizations that have done which of the following? A. Instituted a six-sigma approach to total quality control B. Demonstrated a high level of product quality C. Demonstrated outstanding quality in their products and processes D. Have a world-class quality control function E. Most significantly improved their product quality levels

C. Demonstrated outstanding quality in their products and processes

Which of the following is not an assumption of the basic fixed-order quantity inventory model? A. Ordering or setup costs are constant B. Inventory holding cost is based on average inventory C. Diminishing returns to scale of holding inventory D. Lead time is constant E. Demand for the product is uniform throughout the period

C. Diminishing returns to scale of holding inventory

Which of the following is the cost of quality classification for costs such as defects that pass through the system, such as customer warranty replacements, loss of customer or goodwill, handling complaints, and product repair? A. Appraisal costs B. Prevention costs C. External failure costs D. Customer return cost E. Workmanship costs

C. External failure costs

If a vendor has correctly used marginal analysis to select their stock levels for the day (as in the newsperson problem), and the profit resulting from the last unit being sold (Cu) is $120 and the loss resulting from that unit if it is not sold (Co) is $360, which of the following is the probability of the last unit being sold? A. Greater than 0.90 B. Greater than 0.85 C. Greater than 0.75 D. Greater than 0.25 E. None of the above

C. Greater than 0.75

Which of the following is an input file necessary to run an MRP system? A. Exception report B. Computer-aided-design files C. Inventory records file D. Personnel files E. Planned order schedule

C. Inventory records file

Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these are most nearly equal? A. Economic Order Quantity B. Lot for lot C. Least total cost D. Least unit cost E. ABC analysis

C. Least total cost

Which of the following can be used for lot sizing in an MRP system? A. Low-level coding B. Time bucket size C. Least unit cost D. Inventory record file E. Peg inventory

C. Least unit cost

Maintaining a stable workforce working at a constant output rate while shortages and surpluses are absorbed by fluctuating inventory levels, order backlogs and allowing lost sales is which of the following production planning strategies? A. Stable workforce, variable work hours B. Chase C. Level D. Full employment E. Skill maintenance

C. Level

Which of the following forecasting methodologies is considered a causal forecasting technique? A. Exponential smoothing B. Weighted moving average C. Linear regression D. Historical analogy E. Market research

C. Linear regression

In general, which forecasting time frame is best to detect general trends? A. Short-term forecasts B. Quick-time forecasts C. Long range forecasts D. Medium term forecasts E. Rapid change forecasts

C. Long range forecasts

At a decision point in a decision tree, which machine would you select when trying to maximize payoff when the anticipated benefit of selecting machine A is $45,000 with a probability of 90%; the expected benefit of selecting machine B is $80,000 with a probability of 50% and the expected benefit of selecting machine C is $60,000 with a probability of 75%? A. Machine A B. Machine B C. Machine C D. You would be indifferent between machines A and C E. You would be indifferent between machines A and B

C. Machine C

You have just been assigned to oversee a series of projects. Functional areas will loan you personnel for each project and separate project managers will be responsible for separate projects. These project managers will report to you. Which project management structure is being used? A. Pure Project B. Task force C. Matrix Project D. Functional Project E. PERT

C. Matrix Project

In CPM analysis it is generally expected that the relationship between activity direct costs and project indirect costs will be which of the following? A. Positively related B. Optimally related C. Negatively related D. Not related E. Fractionally related

C. Negatively related

Which of the following forecasting methods uses executive judgment as its primary component for forecasting? A. Historical analogy B. Time series analysis C. Panel consensus D. Market research E. Linear regression

C. Panel consensus

Which of the following is an assumption of the basic fixed-order quantity inventory model? A. Lead times are averaged B. Ordering costs are variable C. Price per unit of product is constant D. Back orders are allowed E. Stock-out costs are high

C. Price per unit of product is constant

PERT is an abbreviation for which of the following methodologies? A. Product Evaluation, Result and Treatment B. Programming and Evaluation Realization Technology C. Program Evaluation and Review Technique D. Process Evaluation and Review Technology E. It is a name, not an abbreviation for anything

C. Program Evaluation and Review Technique

The dimension of design quality that concerns the consistency of performance over time or the probability of failing is which of the following? A. Response B. Serviceability C. Reliability D. Reputation E. Perceived quality

C. Reliability

We would expect to see which of the following in an MRP system's inventory status file? A. End items produced B. Late/early delivery records C. Scrap parts D. Labor efficiency E. Computer errors

C. Scrap parts

Capacity planning involving consideration of production scheduling and inventory position is characterized by which one of the following time durations? A. Intermediate-range B. Long-range C. Short-range D. Current E. Upcoming

C. Short-range

Which of the following should we use an "R" chart to monitor process quality? A. Weighing trucks at a highway inspection station to determine if they are overloaded B. Deciding whether an airliner has sufficient fuel for its trip C. Student grades measured from 1 to 100 D. Determining whether vehicles from a motor pool will run E. Determining the accuracy of a forecast of "snow"

C. Student grades measured from 1 to 100

In development of an operations and supply chain strategy, which of the following may be an important product-specific criteria to consider? A. Focus B. Production lot-size C. Supplier after-sale support D. Learning curve E. Total quality management

C. Supplier after-sale support

You have just used the capability index (Cpk) formulas to compute the two values "min [1.5, 1]." Which of the following is the interpretation of these numbers? A. The true capability index value is 1 B. The mean of the production process has shifted to the left of the design limits C. The mean of the production process has shifted to the right of the design limits D. The mean has not shifted at all E. The true capability index value is between 1.5 and 1

C. The mean of the production process has shifted to the right of the design limits

If a firm produced a product that was experiencing growth in demand, the smoothing constant alpha (reaction rate to differences) used in an exponential smoothing forecasting model would tend to be which of the following? A. Close to zero B. A very low percentage, less than 10% C. The more rapid the growth, the higher the percentage D. The more rapid the growth, the lower the percentage E. 50 % or more

C. The more rapid the growth, the higher the percentage

From an operational perspective yield management is least effective under which of the following circumstances? A. Demand can be segmented by customer B. The product can be sold in advance C. The product can be kept to be sold when demand is stronger D. Fixed costs are high and variable costs are low E. Demand is highly variable

C. The product can be kept to be sold when demand is stronger

For an activity in a CPM analysis, the Early Start time is 8 and the Late Start time is 10. Which of the following statements is true? A. The Late Finish is 12 B. The Early Finish is 10 C. The slack for this activity is 2 D. The duration of this activity is 2 E. The activity is on the critical path

C. The slack for this activity is 2

The primary purpose of the Malcolm Baldrige National Quality Award is which of the following? A. To encourage the spread of statistical quality control B. To improve human resource development and management in manufacturing C. To help companies review and structure their quality programs. D. To prove that American firms were competitive in quality E. To emphasize the use of quantitative methods in process management

C. To help companies review and structure their quality programs.

Firms keep supplies of inventory for which of the following reasons? A. To maintain dependence of operations B. To provide a feeling of security for the workforce C. To meet variation in product demand D. To hedge against wage increases E. In case the supplier changes the design

C. To meet variation in product demand

Below are the data for a Time-Cost CPM Scheduling analysis. The time is in days and the costs include both direct and indirect costs. If you crash this project to reduce the total time by four days, what is the total time of the project and total cost? A. Total time is 10 days, total cost is $2500 B. Total time is 9 days, total cost is $2300 C. Total time is 8 days, total cost is $2750 D. Total time is 8 days, total cost is $1850 E. Total time is 9 days, total cost is $2350

C. Total time is 8 days, total cost is $2750

In an overview of the major operations planning activities in a typical logistics organization, which of the following activities follows aggregate sales and operations planning? A. Process planning B. Workforce scheduling C. Vehicle loading D. Materials requirements planning E. Order scheduling

C. Vehicle loading

A project can be subdivided into which of the following? A. Job orders B. Sub-jobs C. Work Packages D. Sub-paths E. Events and decisions

C. Work Packages

You want to determine the control lines for a "p" chart for quality control purposes. If the total number of defects from all samples is 2,500, the number of samples is 100, and the sample size is 50, which of the following would be the standard deviation used in developing the control lines? A. 0.4900 B. 0.2499 C. 0.1556 D. 0.0707 E. 0.02499

D. 0.0707

If there are 120 total defects from 10 samples, each sample consisting of 10 individual items in a production process, which of the following is the fraction defective that can be used in a "p" chart for quality control purposes? A. 120 B. 10 C. 8 D. 1.2 E. 0.8

D. 1.2

A simple project listing of five activities, their predecessors and their respective time estimates are presented below: Activity ImmediatePredecessor Day A None 3 B A 2 C A 1 D B and C 3 E D 4 Using CPM, what is the Latest Finish Time for the last activity in this project (i.e., the total time to complete the project)?

D. 12 days

Various financial data for SunPath Manufacturing for 2012 & 2013 follow. 2012&2013 Output:Sales $300,00&330,000 Inputs:Labor $40,000&43,000 Raw Materials $45,000&51,000 Energy $10,000&9,000 Capital Employed$250,000&262,000 Other $2,000&6,000 What is the percentage change in SunPath's total productivity measure between 2012 & 2013? A. -9.22 B. 2.33 C. -0.53 D. 2.88 E. 10.39

D. 2.88

Which of the following is the planned-order release using an MRP program if the gross requirement is 670 and the inventory on hand is 600? A. 670 B. 600 C. 530 D. 70 E. None of the above

D. 70

If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, and the total materials used were 425 units, what kind of productivity measure could you use to compute productivity? A. Partial measure B. Multifactor measure C. Total measure D. A and B above E. B and C above

D. A and B above

Quality control charts usually have a central line and upper and lower control limit lines. Which of the following is not a reason that the process being monitored with the chart should be investigated? A. A large number of plots are close to the upper or lower control lines B. Erratic behavior of the plots C. A single plot falls above or below the control limits D. A change in raw materials or operators E. A run of five above the central line

D. A change in raw materials or operators

Below are the data for a Time-Cost CPM Scheduling model analysis. The time is in days and the costs include both direct and indirect costs. If you crash this project to reduce the total time by one day what is the total time of the project and total cost? A. Total time is 13 days, total cost is $1500 B. Total time is 12 days, total cost is $2000 C. Total time is 12 days, total cost is $2300 D. Total time is 11 days, total cost is $1850 E. Total time is 11 days, total cost is $2350

D. Total time is 11 days, total cost is $1850

In business forecasting, what is usually considered a long-term time period? A. Three months or longer B. Six months or longer C. One year or longer D. Two years or longer E. Ten years or longer

D. Two years or longer

In time series data depicting demand which of the following is not considered a component of demand variation? A. Trend B. Seasonal C. Cyclical D. Variance E. Autocorrelation

D. Variance

In an overview of the major operations planning activities in a typical logistics organization, which of the following activities most immediately follows aggregate sales and operations planning? A. Process planning B. Strategic capacity planning C. Vehicle dispatching D. Vehicle capacity planning E. Warehouse receipt planning

D. Vehicle capacity planning

Which of the following forecasting methodologies is considered a time series forecasting technique? A. Delphi method B. Exponential averaging C. Simple movement smoothing D. Weighted moving average E. Simulation

D. Weighted moving average

Which of the following is a basic type of process structure? A. Process flow diagram B. Product matrix C. Process matrix D. Workcenter E. Manual assembly

D. Workcenter

You know when you have arrived at the optimal solution in using the Time-Cost CPM Scheduling model analysis when what happens? A. You have found the critical path B. You have run out of crash time C. You no longer have a linear relationship with costs D. You have reached the minimum total cost E. You have run out of crash costs

D. You have reached the minimum total cost

Using the fixed-order quantity model, which of the following is the total ordering cost of inventory given an annual demand of 36,000 units, a cost per order of $80 and a holding cost per unit per year of $4? A. $849 B. $1,200 C. $1,889 D. $2,267 E. $2,400

E. $2,400

You want to develop a three-sigma "R" chart. You know the average range is 12 based on several samples of size 6. Which of the following is the resulting LCL? A. 20.0 B. 18.3 C. 7.02 D. 5.6 E. 0.0

E. 0.0

Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10 and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to break-even? A. 500 units B. 667 units C. 790 units D. 900 units E. 1,000 units

E. 1,000 units

If annual demand is 12,000 units, annual holding cost is $15 per unit, and setup cost per order is $25, which of the following is the EOQ lot size? A. 2,000 B. 1,200 C. 1,000 D. 300 E. 200

E. 200

Various financial data for SunPath Manufacturing for 2012 & 2013 follow. Output:Sales $300,00&330,000 Inputs:Labor $40,000&43,000 Raw Materials $45,000&51,000 Energy $10,000&9,000 Capital Employed$250,000&262,000 Other $2,000&6,000 What is the percentage change in the energy partial productivity measure for SunPath between 2012 & 2013?

E. 22.2%

You have the following time and cost information below for use in a Time-Cost CPM Scheduling model. Act. Normal Crash N. Cost C.Cost A 3 2 $400 $600 B 5 3 $600 $1200 C 4 1 $300 $1500 What are the three costs per unit of time to expedite each activity? A. A=$300, B=$200, C=$300 B. A=$100, B=$200, C=$400 C. A=$200, B=$200, C=$200 D. A=$100, B=$400, C=$300 E. A=$200, B=$300, C=$400

E. A=$200, B=$300, C=$400

The dimension of design quality that concerns the sensory characteristics of the product is which of the following? A. Features B. Serviceability C. Perceived quality D. Reputation E. Aesthetics

E. Aesthetics

What is an important difference between capacity planning in services as contrasted to capacity planning in manufacturing operations? A. Time B. Location C. Demand volatility D. Utilization impacts service E. All of the above

E. All of the above

Which of the following is not a production activity report generated by MRP? A. Exception report B. Planning report C. Performance control report D. Planned-order schedules E. Bill of materials report

E. Bill of materials report

An analytical tool used in six-sigma quality improvement programs is which of the following? A. Leadership B. Continuous improvement C. Quick response D. Partnership diagrams E. Checksheets

E. Checksheets

Which of the following is a graphic project report used in project management? A. Project proposal B. Approved project plan C. Humphrey chart D. Equipment and supplies chart E. Cost and performance tracking schedule

E. Cost and performance tracking schedule

Which of the following methods discussed in the text requires generating several alternative aggregate plans? A. Trial and error B. Production smoothing C. Graphing and charting D. Aggregate plan simulation E. Cut and try

E. Cut and try

Which of the following is not an analytical tool used in six-sigma quality improvement programs? A. Flowcharts B. Run charts C. Control charts D. Pareto diagrams E. Decision diagrams

E. Decision diagrams

From an operational perspective yield management is least effective under which of the following circumstances? A. Demand can be segmented by customer B. The product can be sold in advance C. Demand is highly variable D. Fixed costs are high and variable costs are low E. Demand is stable and close to capacity

E. Demand is stable and close to capacity

In monitoring process quality we might use which of the following statistics? A. Absolute values B. Percentage deviation from tolerance centers C. "k" values for the sample mean D. Logarithmic control intervals E. Difference between the highest and lowest value in a sample

E. Difference between the highest and lowest value in a sample

You are looking at a chart that has the terms BCWS, BCWP and AC indicating lines on the chart. What kind of chart are you looking at? A. Gantt Chart B. PERT Chart C. Bar/Milestone Chart D. Total Program Cost Breakdown E. EVM Chart

E. EVM Chart

The placement of which of the following is not determined by production process organization decisions? A. Departments B. Workgroups C. Workstations D. Machines E. Emergency exits Emergency exits are determined by safety concerns, not by production process organization decisions.

E. Emergency exits

Which of the following is not one of the basic types of forecasting? A. Qualitative B. Time series analysis C. Causal relationships D. Simulation E. Force field analysis

E. Force field analysis

Which of the following is an input to the master production schedule? A. Prototype products from product development B. Aggregate component schedule C. Peg reports D. Exception reports E. Forecasts of random demand from customers

E. Forecasts of random demand from customers

Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot size in which these are most nearly equal? A. Kanban B. Just-in-time system C. MRP D. Least unit cost E. Least total cost

E. Least total cost

In a typical inventory status record which of the following would you not expect to see? A. Scrap allowance B. Order quantity C. Gross requirements D. Planned-order releases E. Lost items

E. Lost items

Which of the following are used to describe the degree of error? A. Weighted moving average B. Regression C. Moving average D. Forecast as a percent of actual E. Mean absolute deviation

E. Mean absolute deviation

Which of the following is an input to the master production schedule? A. Bill of materials (BOM) file B. Inventory records file C. Exception reports D. Planned-order schedules E. None of the above

E. None of the above

Which of the following files allows us to retrace a material requirement upward in the product structure through each level, identifying each parent item that created the demand? A. Planning bill of materials file B. Modular bill of materials file C. Super bill of materials file D. Exception report file E. Peg record file

E. Peg record file

When material is ordered from a vendor, which of the following is not a reason for delays in the order arriving on time? A. Normal variation in shipping time B. A shortage of material at the vendor's plant causing backlogs C. An unexpected strike at the vendor's plant D. A lost order E. Redundant ordering systems

E. Redundant ordering systems

Which of the following is the symbol used in the textbook for the cost of placing an order in the fixed-order quantity inventory model? A. C B. TC C. H D. Q E. S

E. S

To take into consideration demand uncertainty in reorder point (R) calculations, what do we add to the product of the average daily demand and lead time in days when calculating the value of R? A. The product of average daily demand times a standard deviation of lead time B. A "z" value times the lead time in days C. The standard deviation of vendor lead time times the standard deviation of demand D. The product of lead time in days times the standard deviation of lead time E. The product of the standard deviation of demand variability and a "z" score relating to a specific service probability.

E. The product of the standard deviation of demand variability and a "z" score relating to a specific service probability.

Which of the following is not a reason to carry inventory? A. To provide a safeguard for variation in raw material delivery time B. To take advantage of economic purchase-order size C. To maintain independence of operations D. To meet variation in product demand E. To keep the stock out of the hands of competitors

E. To keep the stock out of the hands of competitors

Which of the following is not a lot sizing technique used in MRP systems? A. Lot-for-lot (L4L) B. Economic order quantity (EOQ) C. Least total cost (LTC) D. Least unit cost (LUC) E. Warehouse loading factor (WLF)

E. Warehouse loading factor (WLF)