ISDS3115 Exam One
Which of the following is a location analysis technique typically employed by a manufacturing organization? A. demographic analysis B. transportation method C. simulation D. correlation analysis and traffic counts E. queuing theory
B. transportation method
The service sector constitutes what percentage of employment in the United States? A. between 50% to 60% B. between 60% to 70% C. between 80% to 90% D. between 70% to 80%
C. between 80% to 90%
The creation of a unique advantage over competitors is referred as A. experience differentiation. B. differentiation. C. competitive advantage. D. response.
C. competitive advantage.
The center-of-gravity method is used primarily to determine what type of locations? A. call center locations B. manufacturing locations C. distribution center locations D. service locations E. supplier locations
C. distribution center locations
Which of the following TQM tools would be best suited for displaying the number of students majoring in each business discipline? A. scatter diagram B. cause-and-effect diagram C. histogram D. flowchart
C. histogram
Taguchi's quality loss function is based on a A. quadratic equation. B. binomial distribution. C. linear equation. D. negative exponential distribution.
A. quadratic equation.
Which of the following costs is NOT a cost of quality? A. research and development B. rework C. lost goodwill D. scrap
A. research and development
Which of the following is an example of a "hidden" production function? A. transplanting a liver B. manufacturing a television C. assembling a motorcycle D. producing a computer
A. transplanting a liver
Disney differentiates itself by not simply having customers go on a ride, but instead immersing them in the experience. What is the name for this type of differentiation? A. Experience differentiation B. Immersion differentiation C. Active differentiation D. Unique differentiation
A. Experience differentiation
Which of the following statements comparing exponential smoothing to the weighted moving average technique is TRUE? A. Exponential smoothing typically requires less record keeping of past data. B. Exponential smoothing allows one to develop forecasts for multiple periods, whereas the weighted moving average technique does not. C. More emphasis can be placed on recent values using the weighted moving average. D. Exponential smoothing is considerably more difficult to implement on a computer. E. Exponential smoothing is more easily used in combination with the Delphi method
A. Exponential smoothing typically requires less record keeping of past data.
Which of the following statements regarding critical paths is true? A. On a specific project, there can be multiple critical paths, all with exactly the same duration. B. The duration of the critical path is the average duration of all paths in the project network. C. The shortest of all paths through the network is the critical path. D. Every network has only one critical path. E. Some activities on the critical path may have slack.
A. On a specific project, there can be multiple critical paths, all with exactly the same duration.
What is the primary reason why retailers tend to locate high-draw items around the periphery of the store? A. This arrangement will help to maximize customer exposure to other items in the store. B. It is easier to put large advertisement signs on the outside walls right next to the items. C. This arrangement allows customers to travel through the store as quickly as possible. D. There will be less congestion of customers than there would be in the middle. E. More shelf space for those popular items is available around the periphery.
A. This arrangement will help to maximize customer exposure to other items in the store.
Which of the following is NOT one of the phases of project management? A. budgeting B. scheduling C. planning D. controlling E. All of the above are project management phases.
A. budgeting
Competing on differentiation is A. concerned with uniqueness. B. based upon low-cost leadership. C. based upon flexibility. D. concerned with reliability of scheduling.
A. concerned with uniqueness.
For which of the following operations would a fixed-position layout be MOST appropriate? A. constructing a highway tunnel B. producing TV sets C. refining of crude oil D. running an insurance agency E. assembling automobiles
A. constructing a highway tunnel
A ________ is also called a plant within a plant. Part 2 A. focused work center B. focused factory C. job shop D. cross-docking facility E. work cell
A. focused work center
In acceptance sampling, the producer's risk is the risk of having a A. good lot rejected. B. bad lot rejected. C. bad lot accepted. D. good lot accepted.
A. good lot rejected.
Which of these is NOT one of the basic functions of the management process? A. inspecting B. staffing C. leading D. controlling
A. inspecting
The forecasting technique that pools the opinions of a group of experts or managers is known as: A. jury of executive opinion. B. market survey. C. the expert judgment model. D. management coefficients. E. multiple regression.
A. jury of executive opinion.
The two popular measures for quantitatively determining if a process is capable are A. process capability ratio and process capability index. B. process mean and range. C. process mean and standard deviation of the process population. D. upper specification and lower specification.
A. process capability ratio and process capability index.
The ________ layout's main objective is to equalize the task time for each station. A. product oriented B. fixed position C. job shop D. work cell E. office
A. product oriented
The phases of project management are: A. planning, scheduling, and controlling. B. planning, programming, and budgeting. C. GANTT, CPM, and PERT. D. different for manufacturing projects than for service projects. E. planning, organizing, staffing, leading, and controlling.
A. planning, scheduling, and controlling.
Which of the following best defines scheduling? A. Determines and implements long- and short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands. B. Determines and implements intermediate- and short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands. C. Determines and implements intermediate- and short-term schedules that effectively and efficiently utilize personnel while meeting customer demands. D. Determines and implements long- and short-term schedules that effectively and efficiently utilize personnel while meeting customer demands.
B. Determines and implements intermediate- and short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands.
Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor? A. Furniture makers choose to locate near the source of good hardwoods, even though it means locating near other furniture manufacturers. B. Few people will travel out-of state for a routine haircut. C. Soft drinks are bottled in many local plants, where carbonated water is added to proprietary syrups that may have been shipped long distances. D. Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital. E. Metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's source.
B. Few people will travel out-of state for a routine haircut.
Currency risk is based on what assumption? A. The U.S. stock market fluctuates daily. B. Values of foreign currencies continually rise and fall in most countries. C. Changing product lines by reacting to every current trend may alienate the customer base. D. Firms that do not continuously innovate will lose market share. E. The value of one dollar today is greater than the value of one dollar to be received one year from now.
B. Values of foreign currencies continually rise and fall in most countries.
Competing on cost is A. concerned with uniqueness. B. achieving maximum value as perceived by the customer. C. concerned with reliability of scheduling. D. based upon flexibility.
B. achieving maximum value as perceived by the customer.
Which of the following does not represent competing on response? A. based on quickness B. based on providing uniqueness C. based on flexibility D. concerned with reliability of scheduling
B. based on providing uniqueness
In a PERT network, non-critical activities that have little slack need to be monitored closely: A. because slack is undesirable and needs to be eliminated. B. because near-critical paths could become critical paths with small delays in these activities. C. because they have a high risk of not being completed. D. because they are causing the entire project to be delayed. E. because PERT treats all activities as equally important.
B. because near-critical paths could become critical paths with small delays in these activities.
The last four weekly values of sales were 80, 100, 105, and 90 units. The last four forecasts were 60, 80, 95, and 75 units. These forecasts illustrate: A. trend projection. B. bias. C. qualitative methods. D. slope. E. adaptive smoothing.
B. bias.
When making a location decision at the region/community level, which of these would be considered? A. air, rail, highway, waterway systems B. cost and availability of utilities C. cultural and economic issues D. zoning restrictions E. government rules, attitudes, stability, incentives
B. cost and availability of utilities
The fundamental difference between cycles and seasonality is the: A. magnitude of the variation. B. duration of the repeating patterns. C. ability to attribute the pattern to a cause. D. All of the above. E. None of the above.
B. duration of the repeating patterns.
The separate plants that produce seat belts, fuel tanks, and exhaust systems for Toyota are: A. focused work centers. B. focused factories. C. work cells. D. job shops. E. random stocking warehouses.
B. focused factories.
The concept of customizing in a warehouse layout: A. is possible, but it causes serious loss of oversight of the quality function. B. incorporates value-added activities in warehouses. C. locates stock wherever there is an open location. D. cannot be considered seriously in today's high efficiency factories. E. is theoretically sound, but several years away in practice.
B. incorporates value-added activities in warehouses.
Which of these is a reason why outsourcing continues to expand? A. more expensive transportation B. increased technological expertise and specialization C. rapid development and deployment of advancements in automation D. less reliable transportation
B. increased technological expertise and specialization
Which operations function at a manufacturing facility strives for the efficient use of machines, space, and personnel? A. design B. industrial engineering C. process analysis D. production and inventory control
B. industrial engineering
The primary purpose of the mean absolute deviation (MAD) in forecasting is to: A. eliminate forecast errors. B. measure forecast accuracy. C. remove random variations. D. estimate the trend line. E. seasonally adjust the forecast.
B. measure forecast accuracy.
The transportation model, when applied to location analysis: A. minimizes total fixed costs. B. minimizes total production and transportation costs. C. minimizes total transportation costs. D. maximizes revenues. E. minimizes the movement of goods.
B. minimizes total production and transportation costs.
A large percentage of the revenue of most firms is spent on which function? A. marketing B. operations C. research and development D. finance
B. operations
Which of the following is NOT a common TQM tool? A. check sheets B. queuing models C. scatter diagrams D. histograms
B. queuing models
Increasing the number of periods in a moving average will accomplish greater smoothing, but at the expense of: A. stability. B. sensitivity to real changes in the data. C. manager understanding. D. accuracy. E. All of the above are diminished when the number of periods increases.
B. sensitivity to real changes in the data.
The economic activities that typically produce an intangible product are referred to as A. phantoms. B. services. C. products. D. goods.
B. services.
Tangible costs include which of the following? A. availability of public transportation B. taxes C. quality and attitude of prospective employees D. zoning regulations E. climatic conditions
B. taxes
The primary advantage of outsourcing is A. to allow a company to focus on its non-core competencies. B. to allow a company to focus on its core competencies. C. to decrease supply chain risk. D. to decrease logistics and transportation costs.
B. to allow a company to focus on its core competencies.
The assumptions necessary for a successful product-oriented layout include all EXCEPT which of the following? A. adequately standardized supplies of raw materials and components B. volatile product demand C. adequate volume for high equipment utilization D. standardized product E. All of the above are appropriate assumptions.
B. volatile product demand
Which of the following methods best considers intangible costs related to a location decision? A. the transportation method B. factor-rating method C. center-of-gravity method D. locational cost-volume analysis E. crossover methods
B. factor-rating method
Which of the following statements regarding the center-of-gravity method is FALSE? A. The origin of the coordinate system and the scale used are arbitrary, just as long as the relative distances are correctly represented. B. The optimal solution is unconstrained, so it could suggest a location in the middle of a body of water. C. It is designed to minimize the maximum possible travel distance to any of the locations. D. The optimal x- and y-coordinates are calculated separately. E. The weights used are the quantity of goods moved to or from each location.
C. It is designed to minimize the maximum possible travel distance to any of the locations.
Which of the following does NOT support the retail layout objective of maximizing customer exposure to products? Part 2 A. Use end-aisle locations. B. Convey the store's mission with the careful positioning of the lead-off department. C. Maximize exposure to expensive items. D. Locate high-draw items around the periphery of the store. E. Use prominent locations for high-impulse and high-margin items.
C. Maximize exposure to expensive items.
A c-chart is based on the Part 2 A. Erlang distribution. B. binomial distribution. C. Poisson distribution. D. normal distribution.
C. Poisson distribution.
Which of the following sectors has seen a consistent rise in the percentage of workers in the United States since 1950? A. Manufacturing B. Agriculture C. Services D. None of the above
C. Services
Which one of the following is NOT common to repetitive and product-oriented layouts? A. low unit costs B. a high rate of output C. ability to adjust to changes in demand D. standardized products E. specialized equipment
C. ability to adjust to changes in demand
Which of the statements below best describes retail layout? A. positions workers, their equipment, and spaces/offices to provide for movement of information B. deals with low-volume, high-variety production C. allocates shelf space and responds to customer behavior D. seeks the best personnel and machine utilization in repetitive or continuous production E. addresses the layout requirements of large, bulky projects such as ships and buildings
C. allocates shelf space and responds to customer behavior
The main goal of retail layout is: A. minimizing customer confusion regarding location of items. B. minimizing space required. C. maximizing profitability per square foot of floor space. D. minimizing material handling cost. E. minimizing storage costs.
C. maximizing profitability per square foot of floor space.
The typical goal used when developing a process-oriented layout strategy is to: A. maximize job specialization. B. minimize the distance between adjacent departments. C. minimize the material handling costs. D. minimize the level of operator skill necessary. E. maximize the number of different tasks that can be performed by an individual machine.
C. minimize the material handling costs.
The central problem in product-oriented layout planning is: A. maximizing equipment utilization. B. equalizing the space allocated to the different workstations. C. minimizing the imbalance in the workloads among workstations. D. minimizing material handling within workstations. E. minimizing labor movement between workstations.
C. minimizing the imbalance in the workloads among workstations.
A method managers use to evaluate the resources at their disposal and manage or alter them to achieve competitive advantage is referred as A. competitive advantage. B. value-chain analysis. C. resources view. D. five forces analysis.
C. resources view.
Retail layouts are based on the notion that: A. space used should be minimized. B. average customer visit duration should be maximized. C. sales and profitability vary directly with customer exposure to products. D. handling costs should be minimized. E. storage costs should be minimized.
C. sales and profitability vary directly with customer exposure to products.
Production and transportation costs are always considered in which of the following location decision methods? A. purchasing power B. clustering C. transportation model D. proximity of markets E. traffic counts
C. transportation model
A regional bookstore chain wants to build a distribution center that is centrally located for its eight retail outlets. It will most likely employ which of the following tools of analysis? A. locational cost-volume analysis B. linear programming C. center-of-gravity method D. load-distance analysis E. assembly line balancing
C. center-of-gravity method
Cause-and-effect diagrams are also known as A. Pareto charts. B. target specification graphs. C. fish-bone charts. D. flowcharts.
C. fish-bone charts.
What layout strategy deals with low-volume, high-variety production? A. warehouse layout B. office layout C. process-oriented layout D. retail layout E. fixed-position layout
C. process-oriented layout
A jewelry store is more likely than a jewelry manufacturer to consider ________ in making a location decision. A. cost of raw materials B. taxes C. appearance/image of the location D. transportation costs E. quality of life
C. appearance/image of the location
Which of the following statements regarding CPM is true? A. Some networks have no critical path. B. The critical path is that set of activities that has positive slack. C. The critical path is the shortest of all paths through the network. D. All activities on the critical path have their LS equal to the maximum EF of all immediate predecessors. E. All activities on the critical path have their ES equal to their LF.
D. All activities on the critical path have their LS equal to the maximum EF of all immediate predecessors.
Which of the following would NOT be a concerning pattern on a control chart? A. Two points very near the lower control limit B. One point above the upper control limit C. Five consecutive points above the central line. D. All of the above are concerning patterns on a control chart
D. All of the above are concerning patterns on a control chart
Cross-docking refers to which of the following? A. Warehouse docks are designed in the shape of a cross. B. Docks are placed in the warehouse according to the direction (north, south, east, or west) from which the truck is arriving. C. The same dock is used to unload and then reload the same truck. D. Avoid placing materials or supplies in storage by processing them as they are received. E. The same docks can be used either incoming or outbound shipments.
D. Avoid placing materials or supplies in storage by processing them as they are received.
Which of the following organizations does NOT belong to the service sector? A. Southwest Airlines B. Costco C. San Diego Zoo D. Ford Motor Company
D. Ford Motor Company
The main difference between PERT and CPM is that: A. PERT assumes that activity durations are known. B. PERT ignores activity costs. C. CPM assumes activity durations can vary. D. PERT employs three time estimates for each activity. E. PERT is more accurate than CPM.
D. PERT employs three time estimates for each activity.
A successful quality strategy begins with A. satisfying customers and obtaining a competitive advantage. B. an understanding of the principles of quality. C. engaging employees in the necessary activities to implement quality. D. an organizational culture that fosters quality.
D. an organizational culture that fosters quality.
In a PERT network, non-critical activities that have little slack need to be monitored closely: A. because they have a high risk of not being completed. B. because PERT treats all activities as equally important. C. because they are causing the entire project to be delayed. D. because near-critical paths could become critical paths with small delays in these activities. E. because slack is undesirable and needs to be eliminated.
D. because near-critical paths could become critical paths with small delays in these activities.
The creation of a unique advantage over competitors is referred as A. differentiation. B. response. C. experience differentiation. D. competitive advantage.
D. competitive advantage.
A fundamental distinction between trend projection and linear regression is that: A. trend projection uses least squares while linear regression does not. B. trend projection can be a function of several variables, while linear regression can only be a function of one variable. C. trend projection uses two smoothing constants, not just one. D. in trend projection the independent variable is time; in linear regression the independent variable need not be time, but can be any variable with explanatory power. E. only linear regression can have a negative slope.
D. in trend projection the independent variable is time; in linear regression the independent variable need not be time, but can be any variable with explanatory power.
A project organization: A. is most helpful for ongoing projects with no termination date. B. is most helpful when the work contains simple and unrelated tasks. C. is appropriate only in construction firms. D. is effective for companies with multiple large projects. E. often fails when the project cuts across organizational lines.
D. is effective for companies with multiple large projects.
The R-chart A. control limits are computed using sample standard deviations. B. is used to measure changes in the central tendency. C. generally uses control limits set at plus or minus 2 standard deviations of the distribution, rather than plus or minus 3, which is commonly used on the x-bar chart. D. is used to indicate gains or losses in dispersion.
D. is used to indicate gains or losses in dispersion.
One use of short-range forecasts is to determine: A. capital expenditures. B. planning for new products. C. research and development plans. D. job assignments. E. facility location.
D. job assignments.
Which of the following is the Japanese term used to describe continuous improvement efforts? A. six sigma B. kanban C. poka-yoke D. kaizen
D. kaizen
When making a location decision at the country level, which of these would be considered? A. land/construction costs B. zoning restrictions C. corporate desires D. location of markets E. air, rail, highway, waterway systems
D. location of markets
One hundred percent inspection A. means that only good parts will be shipped to a customer. B. catches all of the defective parts. C. is practical and an excellent fit for world-class manufacturers. D. means that every part is checked to see whether or not it is defective.
D. means that every part is checked to see whether or not it is defective.
The major problem addressed by the process-oriented layout strategy is: A. how to design a continuous flow process. B. the movement of material to the limited storage areas around the site. C. the provision of low-cost storage with low-cost material handling. D. minimizing difficulties caused by material flow varying with each product. E. balancing product flow from one work station to the next.
D. minimizing difficulties caused by material flow varying with each product.
What is the probability of accepting a bad lot? A. LTPD B. type I error (alpha) C. AQL D. type II error (beta)
D. type II error (beta)
An activity on a PERT network has these time estimates: optimistic = 2, most likely = 3, and pessimistic = 8. What is its expected activity time and variance? A. 4.33; 1 B. 3.67; 6 C. 4.33; 6 D. 3.67; 1 E. None of the above.
D. 3.67; 1
Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods? Part 2 A. transportation method B. center-of-gravity method C. simulation D. factor-rating method E. locational cost-volume analysis
D. factor-rating method
A local project being analyzed by PERT has 42 activities, 13 of which are on the critical path. If the estimated time along the critical path is 105 days with a project variance of 25, what is the probability that the project will be completed in 95 days or less? A. 4.2 B. −0.4 C. 0.3444 D. 0.9772 E. 0.0228
E. 0.0228
Which of the following is NOT a retail layout practice? A. Use end-aisle locations to maximize product exposure. B. Use prominent locations for high-impulse and high-margin items. C. Distribute power items throughout the store. D. Locate the high-draw items around the periphery of the store. E. All of the above are retail layout practices.
E. All of the above are retail layout practices.
Which of the following statements concerning CPM activities is false? A. The early finish of an activity is the early start of that activity plus its duration. B. The late finish is the earliest of the late start times of all successor activities. C. The early start of an activity is the latest early finish of all preceding activities. D. The late start of an activity is its late finish less its duration. E. The late finish of an activity is the earliest late start of all preceding activities.
E. The late finish of an activity is the earliest late start of all preceding activities.
A forecast based on the previous forecast plus a percentage of the forecast error is a(n): A. weighted moving average forecast. B. moving average forecast. C. qualitative forecast. D. naive forecast. E. exponential smoothing forecast.
E. exponential smoothing forecast.
A hospital's layout most closely resembles which of the following? A. product oriented B. retail C. work cell D. project E. job shop
E. job shop
Which of the following is not a type of qualitative forecasting? A. market survey B. jury of executive opinion C. sales force composite D. Delphi method E. moving average
E. moving average
Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm? A. cost of shipping finished goods B. attitude toward unions C. labor costs D. energy and utility costs E. parking and access
E. parking and access
Traffic counts and demographic analysis of drawing area are associated with: A. locational cost-volume analysis. B. the center-of-gravity method. C. manufacturing location decisions. D. the transportation model. E. service location decisions.
E. service location decisions.
Balancing low-cost storage with low-cost material handling is important in which of the following? A. process-oriented layout B. repetitive and product-oriented layout C. office layout D. fixed-position layout E. warehouse layout
E. warehouse layout
Which of the following reduces product handling, inventory, and facility costs, but requires both (1) tight scheduling and (2) accurate inbound product information? A. random stocking B. customizing C. phantom-docking D. ASRS E. cross-docking
E. cross-docking
A project organization works best for an organization when the project resides in only one of its functional areas. True False
False
In a regression equation where y-hat is demand and x is advertising, a coefficient of determination (R2) of .70 means that 70% of the variance in advertising is explained by demand. True False
False
In trend projection, a negative regression slope is mathematically impossible. True False
False
The shortest of all paths through the network is the critical path. True or False
False
A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y per period. True False
True
If a forecast is consistently greater than (or less than) actual values, the forecast is said to be biased. True False
True
In PERT analysis, the identification of the critical path can be incorrect if a noncritical activity takes substantially more than its expected time. True False
True
One advantage of exponential smoothing is the limited amount of record keeping involved. Part 2 True False
True
Slack is the amount of time an activity can be delayed without delaying the entire project. True False
True
The sales force composite forecasting method relies on salespersons' estimates of expected sales. True False
True
