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OPS 571 Final Exam Guide (April, 2019)
For more course tutorials visit
www.uopops571.com
In Hau Lee's uncertainty framework to classify supply chains, a supply
chain for functional products with a stable supply process is called
which of the following?
Responsive
Agile
Efficient
Risk hedging
Forward looking
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?
1,000
1,200
200
300
2,000

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?
Minimizing inventory
Stable workforce, variable work hours
Level
Chase
Meeting demand
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
rev: 04_28_2014_QC_48598
1,130
970
1,000
1,070
1,030
Which of the following is not a problem definition tool from the
operations consulting tool kit?
Five forces model
Gap analysis
Customer surveys

Issue trees
Computer simulation
A company must perform a maintenance project consisting of seven
activities. The activities, their predecessors, and their respective time
estimates are presented here:
Using CPM, what is the latest finish time for the last activity in this
project (i.e., the total time to complete the project)?
12 days
11 days
10 days
13 days
9 days
An activity where the parts that go into each unit of a product are
periodically removed from inventory and accounted for based on the
number of units produced is called which of the following?
Frozen window
Kanban
Backflush
Level schedule
Group technology
According to the theory of constraints, which of the following is a kind
of time that makes up the cycle time in production?
Quality time

Research time
Break time
Just-in-time
Idle time
Which of the following is a priority rule used to schedule the sequence
of jobs in a production operation?
Parts on hand first
First on hand first
Last-come, first-served
Longest slack time first
Last complaint first
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?
$2,267
$849
$1,200
$1,889
$2,400
Which of the following is a perpetual system for inventory
management?
The wheel of inventory

First-in-first-out
Fixed-time period
P model
Fixed-order quantity
Which of the following address elimination of waste under lean
production?
Outsourced housekeeping
Backflush
Quality at the source
Bottom-round management
Info-matic warehouse networks
Which of the following is a reason that there are disparities between a
firm's learning curve rate and that of its industry?
Learning curves don't reflect organizational learning.
There may be procedural differences in the manner that different firms
collect and report data.
Companies don't always report sensitive data to outside agencies
accurately.
The starting points for different firms were different.
The cumulative number of units produced is different.

For which of the following should we use an X-bar chart based on
sample means to monitor process quality?
Grades in a freshman "pass/fail" course
Number of units with missing operations
Tire pressures in an auto assembly plant
Vehicles passing emissions inspection
Computer software errors
Which of the following are the three major components of a queuing
system?
rev: 02_17_2017_QC_CS-79354
The number of customers the system serves, the number of steps in the
service system, and how quickly customers exit the system
The number of servers, the service speed, and the waiting line
The number of customers and how they arrive, how customers exit the
system, and the service system
The service speed, the queue discipline, and the waiting line
The source population, how customers exit the system, and the queuing
discipline
Which of the following basic types of process structures is one in which
equipment or work processes are arranged according to the progressive
steps by which the product is made?
Assembly line
Continuous process

Work center
Project
Manufacturing cell
Which of the following is one of the three contrasting approaches to
delivering on-site service?
Production-line approach
Quality approach
Professional approach
Stock market approach
Retail approach
Which of the following is a measure of operations and supply
management efficiency used by Wall Street?
Current ratio
Receivable turnover
Financial leverage
Earnings per share growth
Dividend payout ratio
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?
Inter-functional analysis
Order qualifying

Order winning
Straddling
Operations capability analysis
Which of the following is a total measure of productivity?
Output/(Labor + Capital + Energy)
Output/Labor
All of these
Output/Materials
Output/Inputs
In the service-system design matrix, a face-to-face total customization
service encounter is expected to have which of the following?
Low degree of customer/server contact
None of these
Low production efficiency
High production efficiency
Low sales opportunity
We would expect to see in a manufacturing cell layout which of the
following?
None of these
Long production setup times
Large teams who collectively do a small part of a finished product

A small team of workers who turn out complete units of work
More in-process inventory
Which of the following is a major factor that distinguishes service
design and development from manufacturing design and development?
Capacity decisions are much more critical in manufacturing operations.
Manufacturing is far more capital intensive than services.
The service process and service product can be developed
independently.
The service package has the same legal protection available to
manufactured goods.
The service package is the major output of the development process.
The customer order decoupling point determines the position of what in
the supply chain?
Orders
Transportation facilities
Inventory
Customers
Manufacturing facilities
Machine breakdown and repair in a 12-machine factory having one
repair mechanic would develop which type of queuing system line
structure concerning machine breakdowns?
Single channel, single phase

None of these
Multichannel, single phase
Single channel, multiphase
Multichannel, multiphase
Assume the service rate for a queue in a truck-loading operation is 2
trucks per hour. Using the infinite queuing notion for the models
presented in the textbook, which of the following is the average service
time?
0.25 hour
0.5 hour
2 hours
1 hour
None of these
An assumption of learning curve theory is which of the following?
Unit time will decrease at a decreasing rate.
Unit time will hold constant.
Unit time will increase at an increasing rate.
Unit time will increase at a decreasing rate.
Unit time will decrease at an increasing rate.
The unit improvement factor for a 60 percent learning curve at 25 units
is 0.0933. The first and second timings of a person doing a job are 5
minutes and 3 minutes respectively. Which of the following is the
learning-adjusted time estimate for unit number 25?

0.0933 minute
9.33 minutes
3 minutes
4.665 minutes
0.4665 minute
For which of the following should we use a p-chart to monitor process
quality?
Letter grades on a final examination
Temperature of entrees in a restaurant
Weight errors in cans of soup
Errors in the length of a pencil
Defective electrical switches
been called in as a consultant to set up a Kanban control system. The
first thing to do is to determine the number of Kanban card sets needed.
Your research shows that the expected demand during lead time for a
particular component is 150 per hour. You estimate the safety stock
should be set at 25 percent of the demand during lead time. The tote
trays used as containers can hold 8 units of stock, and the lead time it
takes to replenish an order is 2 hours. Which of the following is the
number of Kanban card sets necessary to support this situation?
94
68
42

47
89
Which of the following is a fixed-order-quantity inventory model?
P model
Periodic replenishment model
The ABC model
Economic order quantity model
Cycle counting model
$1,889
$2,267
$849
$2,400
$1,200
Assume there are five jobs (i.e., A, B, C, D, and E) that need to be
sequenced in a production schedule. The remaining operating time
necessary for completion of job A is 4 days (i.e., job A will take 4 more
days to complete), B will take 7 days, C will take 8 days, D will take 2
days, and E will take 5 days. Which job should be scheduled first if you
use the SOT priority rule for job sequencing?
E

B
C
D
A
Which of the following is a "focusing step" of Dr. Eli Goldratt's theory
of constraints?
Reinforce system constraints.
If you have no system constraints, make some.
Identify system constraints.
Reduce system constraints.
Support system constraints
In implementing a lean production system you should work with
suppliers to do which of the following?
Make frequent deliveries.
Calculate lead times.
Achieve bottom-round management.
Freeze windows.
Use quality circles.
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?
The slack for this activity is 20.
The activity's late start must happen before its early start.

The activity is on the critical path.
The duration of this task is 20.
The duration of this task is zero.
You have been placed in charge of a large project. Shortened
communication lines are required to ensure 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?
Pure project
PERT
Task force
Functional project
Matrix project
Which of the following is not a principle of reengineering?
Capture information many times, at the source and where it is
interpreted.
Treat geographically dispersed resources as though they were
centralized.
Merge information processing work into the work that produces the
information.
Link parallel activities instead of integrating their results.

Organize around outcomes not tasks.
Which of the following forecasting methodologies is considered a
qualitative forecasting technique?
Simple moving average
Market research
Exponential smoothing
Linear regression
Multiple regression
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 these data and a
smoothing constant alpha of 0.1, which of the following is the resulting
year 2014 forecast value?
111
100
114
120
110
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
Full employment

Skill maintenance
Level
Chase
What are two of the main objectives of ERP?
Transaction processing and logistic optimizing
Resource tracking and master schedule planning
Product tracking and customer invoicing
Transaction processing and decision support
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?
133 percent
25 percent
100 units per hour
125 percent
75 percent
Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we
would expect which of the following?
A consistent lag of supply behind demand
Minimized carrying costs
Minimized setup costs

Minimized quality problems
A just-in-time management philosophy
A product tree can do which of the following?
Help to compute component usage.
Reduce product scrap.
Reduce regular time labor.
Locate raw material supplies.
Reduce labor overtime.
Very few products are moved without at least part of their journey being
by which mode of transportation?
Rail
Highway
Pipeline
Water
Air
chain for innovative products with an evolving supply process is called
Responsive
Efficient
Agile
Risk hedging

Forward looking
1.
Receivable turnover
Current ratio
Financial leverage
2.
An activity-system map is which of the following?
A diagram that shows how a company's strategy is delivered to
customers
A timeline displaying major planned events
A network guide to route airlines
A facility layout schematic noting what is done where
A listing of activities that make up a project
3.
Output/Materials
Output/Labor

All of these
Output/Inputs
4.
Which of the following approaches to service design is characterized by
having the customer take a greater role in the production of the service?
Quality approach
Self-service approach
Do-it-yourself approach
Personal-attention approach
5
Which of the following basic types of production layout formats is one
that has similar equipment or functions are grouped together?
Workcenter layout
Production line layout
Group technology layout
Manufacturing cell layout
Assembly line layout
6.
Which of the following is a characteristic that can be used to guide the
design of service systems?

Services are all similar.
Services cannot be inventoried.
Services businesses are inherently entrepreneurial.
Even service businesses have internal services.
Quality work means quality service.
7.
An advantage of a make-to-stock process is which of the following?
All units of output are unique.
It features rapid delivery of a standard product.
It combines the best features of other processes.
It responds directly to customer orders.
It allows the firm to avoid inventory costs.
8.
Getting an autograph from a famous person might involve standing in
which type of queuing line structure?
None of these
9.

For an infinite queuing situation, if the arrival rate for loading trucks is 5
trucks per hour, what is the mean time between arrivals?
2.5 hours
5 hours
0.2 hour
0.1 hour
None of these
10.
Organizational learning is not included in learning theory.
The time required to do a task will vary randomly each time the task is
repeated.
Learning will not be transferred from one worker to the next.
The reduction in unit time will follow a predictable pattern.
11.
A company's production process has an 80 percent learning curve rate.
The process has produced 1,000 units to date. A process refinement is
estimated to allow a future learning curve rate for the identical product
of 75 percent. However, the initial unit made using the new process will
take the same amount of time as the initial unit produced using the old
process. At what point, using the new process, will the production rate
exceed the production rate achieved by the old process?

Before the 100th unit
12.
quality?
Temperatures in a classroom
The dimensions of brick entering a kiln
The weight of fluid in a container
Lengths of boards cut in a mill
13.
You have been called in as a consultant to set up a Kanban control
system. The first thing to do is to determine the number of Kanban card
sets needed. Your research shows that the expected demand during lead
time for a particular component is 150 per hour. You estimate the safety
stock should be set at 25 percent of the demand during lead time. The
tote trays used as containers can hold 8 units of stock, and the lead time
it takes to replenish an order is 2 hours. Which of the following is the
42

68
89
47
94
14.
Which of the following is a fixed-time-period inventory model?
Just-in-time model
The EOQ model
Periodic system model
The Q model
The least cost method
15.
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?
None of these
$1,501,600
$1,498,200
$499,313
$500,687

A. $1,501,600
Q = 400. Average Inventory = Q/2 = 200. Holding cost/year = $4. Thus,
annual holding cost = $800. Annual set-up cost = 10,000/400 = 25 x $32
= 800. Demand x cost per unit = 10,000 x $150 = 1,500,000. Hence, TC
= $1,500,000 + 800 + 800 = $1,501,600.
16.
Which of the following is a principle of work center scheduling?
Reschedule every day.
Once started, a job can and should be finished even if unavoidably
interrupted.
Assign the first worker to all of the days that require staffing.
Achieve certainty in standards and routings.
Give work centers less to do then their maximum.
17.
of constraints?
Support system constraints.
18.

In designing a lean production facility layout, a designer should do
Locate flexible workstations offline.
Balance capacity using job shop analysis.
Design for work flow balance.
Always keep operations on a single floor of the factory.
Link operations through a push system.
19.
A simple project listing of five activities and their respective time
Using CPM, which activities make up the critical path?
None of these
A, B, D, E
A, D, E
A, C, B, D, E
A, C, D, E
20.
A, C, B, F, E

None of these
A, B, D, F, G
A, C, E, F, G
A, D, E
21.
Issue trees
Five forces model
Computer simulation
Customer surveys
Gap analysis
22.
Which of the following is not one of the basic types of forecasting?
Simulation
Causal relationships
Qualitative
Time series analysis
Force field analysis
23.

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 these data?
3
1
15
123
5
C MAD = ABS[(124 - 120) + (126 - 120) + (135 - 130)]/3 = 15/3 = 5.
24.
From an operational perspective, yield management is most effective
under which of the following circumstances?
Inventory is perishable.
The firm doing yield management is very profitable.
Demand cannot be segmented by customer.
Fixed costs are low, and variable costs are high.
The customer is a "captive" of the system.
25.
What is transaction processing?
The decision support system used to efficiently handle multiple
transactions

The movement of paperwork through a system using a decision tree
The scheduling of machinery to minimize time and scrap
The posting and tracking of the detailed activities of a business
26.
If the actual output of a piece of equipment during an hour is 500 units
and its best operating level is at a rate of 400 units per hour, which of the
following is the capacity utilization rate?
0.75
1.00
1.25
1.33
100
27.
Which of the following is an input to the master production schedule
(MPS)?
Planned order schedules
The bill of materials
The aggregate plan
The exception report
Inventory records file
28.

Which of the following is considered a primary report in an MRP
system?
Cycle counting reports
Performance reports
Planning reports
Exception reports
29.
The centroid method for plant location uses which of the following data?
Probabilities and payoffs
Correlation matrix of existing facilities
Volume of goods to be shipped between existing points
Inbound transportation costs
Transport times between facilities
30.
chain for functional products with an evolving supply process is called
Responsive
Forward looking
Efficient
Risk hedging

Agile
==============================================
OPS 571 Final Exam Guide (New, 2019)
For more course tutorials visit
www.uopops571.com
chain for functional products with a stable supply process is called
Responsive
Agile
Efficient
Risk hedging
Forward looking
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?
1,000
1,200
200

300
2,000
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
Minimizing inventory
Level
Chase
Meeting demand
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
rev: 04_28_2014_QC_48598
1,130
970
1,000
1,070
1,030
Five forces model

Gap analysis
Customer surveys
Issue trees
Computer simulation
Using CPM, what is the latest finish time for the last activity in this
project (i.e., the total time to complete the project)?
12 days
11 days
10 days
13 days
9 days
An activity where the parts that go into each unit of a product are
periodically removed from inventory and accounted for based on the
number of units produced is called which of the following?
Frozen window
Kanban
Backflush
Level schedule
Group technology

According to the theory of constraints, which of the following is a kind
of time that makes up the cycle time in production?
Quality time
Research time
Break time
Just-in-time
Idle time
Which of the following is a priority rule used to schedule the sequence
of jobs in a production operation?
Parts on hand first
First on hand first
Last-come, first-served
Longest slack time first
Last complaint first
$2,267
$849
$1,200
$1,889
$2,400

Which of the following is a perpetual system for inventory
management?
The wheel of inventory
First-in-first-out
Fixed-time period
P model
Fixed-order quantity
Which of the following address elimination of waste under lean
production?
Outsourced housekeeping
Backflush
Quality at the source
Bottom-round management
Info-matic warehouse networks
Which of the following is a reason that there are disparities between a
firm's learning curve rate and that of its industry?
Learning curves don't reflect organizational learning.
There may be procedural differences in the manner that different firms
collect and report data.
Companies don't always report sensitive data to outside agencies
accurately.

The starting points for different firms were different.
The cumulative number of units produced is different.
For which of the following should we use an X-bar chart based on
sample means to monitor process quality?
Number of units with missing operations
Tire pressures in an auto assembly plant
Vehicles passing emissions inspection
Computer software errors
Which of the following are the three major components of a queuing
system?
rev: 02_17_2017_QC_CS-79354
The number of customers the system serves, the number of steps in the
service system, and how quickly customers exit the system
The number of servers, the service speed, and the waiting line
The number of customers and how they arrive, how customers exit the
system, and the service system
The service speed, the queue discipline, and the waiting line
The source population, how customers exit the system, and the queuing
discipline
Which of the following basic types of process structures is one in which
equipment or work processes are arranged according to the progressive
steps by which the product is made?

Assembly line
Continuous process
Work center
Project
Manufacturing cell
Which of the following is one of the three contrasting approaches to
delivering on-site service?
Quality approach
Professional approach
Stock market approach
Retail approach
Current ratio
Receivable turnover
Financial leverage
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?

Inter-functional analysis
Order qualifying
Order winning
Straddling
Operations capability analysis
Output/Labor
All of these
Output/Materials
Output/Inputs
In the service-system design matrix, a face-to-face total customization
service encounter is expected to have which of the following?
Low degree of customer/server contact
None of these
Low production efficiency
High production efficiency
Low sales opportunity
We would expect to see in a manufacturing cell layout which of the
following?
None of these

Long production setup times
Large teams who collectively do a small part of a finished product
A small team of workers who turn out complete units of work
More in-process inventory
Which of the following is a major factor that distinguishes service
design and development from manufacturing design and development?
Capacity decisions are much more critical in manufacturing operations.
Manufacturing is far more capital intensive than services.
The service process and service product can be developed
independently.
The service package has the same legal protection available to
manufactured goods.
The service package is the major output of the development process.
The customer order decoupling point determines the position of what in
the supply chain?
Orders
Transportation facilities
Inventory
Customers
Manufacturing facilities

Machine breakdown and repair in a 12-machine factory having one
repair mechanic would develop which type of queuing system line
structure concerning machine breakdowns?
None of these
Assume the service rate for a queue in a truck-loading operation is 2
trucks per hour. Using the infinite queuing notion for the models
presented in the textbook, which of the following is the average service
time?
0.25 hour
0.5 hour
2 hours
1 hour
None of these
Unit time will decrease at a decreasing rate.
Unit time will hold constant.
Unit time will increase at an increasing rate.
Unit time will increase at a decreasing rate.

The unit improvement factor for a 60 percent learning curve at 25 units
is 0.0933. The first and second timings of a person doing a job are 5
minutes and 3 minutes respectively. Which of the following is the
learning-adjusted time estimate for unit number 25?
0.0933 minute
9.33 minutes
3 minutes
4.665 minutes
0.4665 minute
quality?
Letter grades on a final examination
Temperature of entrees in a restaurant
Weight errors in cans of soup
Errors in the length of a pencil
Defective electrical switches
been called in as a consultant to set up a Kanban control system. The
first thing to do is to determine the number of Kanban card sets needed.
Your research shows that the expected demand during lead time for a
particular component is 150 per hour. You estimate the safety stock
should be set at 25 percent of the demand during lead time. The tote
trays used as containers can hold 8 units of stock, and the lead time it

takes to replenish an order is 2 hours. Which of the following is the
94
68
42
47
89
Which of the following is a fixed-order-quantity inventory model?
P model
Periodic replenishment model
The ABC model
Economic order quantity model
Cycle counting model
$1,889
$2,267
$849
$2,400
$1,200

Assume there are five jobs (i.e., A, B, C, D, and E) that need to be
sequenced in a production schedule. The remaining operating time
necessary for completion of job A is 4 days (i.e., job A will take 4 more
days to complete), B will take 7 days, C will take 8 days, D will take 2
days, and E will take 5 days. Which job should be scheduled first if you
use the SOT priority rule for job sequencing?
E
B
C
D
A
of constraints?
Support system constraints
In implementing a lean production system you should work with
suppliers to do which of the following?
Make frequent deliveries.
Calculate lead times.
Achieve bottom-round management.

Freeze windows.
Use quality circles.
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?
The slack for this activity is 20.
The activity's late start must happen before its early start.
The activity is on the critical path.
The duration of this task is 20.
The duration of this task is zero.
You have been placed in charge of a large project. Shortened
communication lines are required to ensure 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?
Pure project
PERT
Task force
Functional project
Matrix project
Which of the following is not a principle of reengineering?
Capture information many times, at the source and where it is
interpreted.

Treat geographically dispersed resources as though they were
centralized.
Merge information processing work into the work that produces the
information.
Link parallel activities instead of integrating their results.
Organize around outcomes not tasks.
Which of the following forecasting methodologies is considered a
qualitative forecasting technique?
Simple moving average
Market research
Exponential smoothing
Linear regression
Multiple regression
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 these data and a
smoothing constant alpha of 0.1, which of the following is the resulting
year 2014 forecast value?
111
100
114
120

110
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
Full employment
Skill maintenance
Level
Chase
What are two of the main objectives of ERP?
Transaction processing and logistic optimizing
Resource tracking and master schedule planning
Product tracking and customer invoicing
Transaction processing and decision support
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?
133 percent
25 percent
100 units per hour
125 percent

75 percent
Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we
would expect which of the following?
A consistent lag of supply behind demand
Minimized carrying costs
Minimized setup costs
Minimized quality problems
A just-in-time management philosophy
A product tree can do which of the following?
Help to compute component usage.
Reduce product scrap.
Reduce regular time labor.
Locate raw material supplies.
Reduce labor overtime.
Very few products are moved without at least part of their journey being
by which mode of transportation?
Rail
Highway
Pipeline
Water
Air

chain for innovative products with an evolving supply process is called
Responsive
Efficient
Agile
Risk hedging
Forward looking
1.
Receivable turnover
Current ratio
Financial leverage
2.
An activity-system map is which of the following?
A diagram that shows how a company's strategy is delivered to
customers
A timeline displaying major planned events
A network guide to route airlines

A facility layout schematic noting what is done where
A listing of activities that make up a project
3.
Output/Materials
Output/Labor
All of these
Output/Inputs
4.
Which of the following approaches to service design is characterized by
having the customer take a greater role in the production of the service?
Quality approach
Self-service approach
Do-it-yourself approach
Personal-attention approach
5
Which of the following basic types of production layout formats is one
that has similar equipment or functions are grouped together?
Workcenter layout

Production line layout
Group technology layout
Manufacturing cell layout
Assembly line layout
6.
Which of the following is a characteristic that can be used to guide the
design of service systems?
Services are all similar.
Services cannot be inventoried.
Services businesses are inherently entrepreneurial.
Even service businesses have internal services.
Quality work means quality service.
7.
An advantage of a make-to-stock process is which of the following?
All units of output are unique.
It features rapid delivery of a standard product.
It combines the best features of other processes.
It responds directly to customer orders.
It allows the firm to avoid inventory costs.
8.

Getting an autograph from a famous person might involve standing in
which type of queuing line structure?
None of these
9.
For an infinite queuing situation, if the arrival rate for loading trucks is 5
trucks per hour, what is the mean time between arrivals?
2.5 hours
5 hours
0.2 hour
0.1 hour
None of these
10.
Organizational learning is not included in learning theory.
The time required to do a task will vary randomly each time the task is
repeated.
Learning will not be transferred from one worker to the next.

The reduction in unit time will follow a predictable pattern.
11.
A company's production process has an 80 percent learning curve rate.
The process has produced 1,000 units to date. A process refinement is
estimated to allow a future learning curve rate for the identical product
of 75 percent. However, the initial unit made using the new process will
take the same amount of time as the initial unit produced using the old
process. At what point, using the new process, will the production rate
exceed the production rate achieved by the old process?
12.
quality?
Temperatures in a classroom
The dimensions of brick entering a kiln
The weight of fluid in a container
Lengths of boards cut in a mill
13.

You have been called in as a consultant to set up a Kanban control
system. The first thing to do is to determine the number of Kanban card
sets needed. Your research shows that the expected demand during lead
time for a particular component is 150 per hour. You estimate the safety
stock should be set at 25 percent of the demand during lead time. The
tote trays used as containers can hold 8 units of stock, and the lead time
it takes to replenish an order is 2 hours. Which of the following is the
42
68
89
47
94
14.
Which of the following is a fixed-time-period inventory model?
Just-in-time model
The EOQ model
Periodic system model
The Q model
The least cost method
15.
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?
None of these
$1,501,600
$1,498,200
$499,313
$500,687
A. $1,501,600
Q = 400. Average Inventory = Q/2 = 200. Holding cost/year = $4. Thus,
annual holding cost = $800. Annual set-up cost = 10,000/400 = 25 x $32
= 800. Demand x cost per unit = 10,000 x $150 = 1,500,000. Hence, TC
= $1,500,000 + 800 + 800 = $1,501,600.
16.
Which of the following is a principle of work center scheduling?
Reschedule every day.
Once started, a job can and should be finished even if unavoidably
interrupted.
Assign the first worker to all of the days that require staffing.
Achieve certainty in standards and routings.
Give work centers less to do then their maximum.
17.
of constraints?

Support system constraints.
18.
In designing a lean production facility layout, a designer should do
Locate flexible workstations offline.
Balance capacity using job shop analysis.
Design for work flow balance.
Always keep operations on a single floor of the factory.
Link operations through a push system.
19.
A simple project listing of five activities and their respective time
None of these
A, B, D, E
A, D, E
A, C, B, D, E

A, C, D, E
20.
A, C, B, F, E
None of these
A, B, D, F, G
A, C, E, F, G
A, D, E
21.
Issue trees
Five forces model
Computer simulation
Customer surveys
Gap analysis
22.
Which of the following is not one of the basic types of forecasting?
Simulation

Causal relationships
Qualitative
Time series analysis
Force field analysis
23.
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 these data?
3
1
15
123
5
C MAD = ABS[(124 - 120) + (126 - 120) + (135 - 130)]/3 = 15/3 = 5.
24.
From an operational perspective, yield management is most effective
under which of the following circumstances?
Inventory is perishable.
The firm doing yield management is very profitable.
Demand cannot be segmented by customer.
Fixed costs are low, and variable costs are high.

The customer is a "captive" of the system.
25.
What is transaction processing?
The decision support system used to efficiently handle multiple
transactions
The movement of paperwork through a system using a decision tree
The scheduling of machinery to minimize time and scrap
The posting and tracking of the detailed activities of a business
26.
If the actual output of a piece of equipment during an hour is 500 units
and its best operating level is at a rate of 400 units per hour, which of the
following is the capacity utilization rate?
0.75
1.00
1.25
1.33
100
27.
Which of the following is an input to the master production schedule
(MPS)?
The bill of materials

The aggregate plan
The exception report
Inventory records file
28.
Which of the following is considered a primary report in an MRP
system?
Cycle counting reports
Performance reports
Planning reports
Exception reports
29.
The centroid method for plant location uses which of the following data?
Probabilities and payoffs
Correlation matrix of existing facilities
Volume of goods to be shipped between existing points
Inbound transportation costs
Transport times between facilities
30.
chain for functional products with an evolving supply process is called

Responsive
Forward looking
Efficient
Risk hedging
Agile
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