Practice Exam Questions

CHAPTER 1.
INTRODUCTION TO THE FIELD
1. F.W. Taylor believed that:

A. the worker should have more control over his job.
B. the worker to be efficient should always be busy.
C. the scientific method does not apply to labor.
D. the Hawthorne studies were a serious threat to scientific
management.
E. scientific laws governed how much work a person could do each
day.
2. The operations management transformation process in a hospital is

primarily which of the following?
A. physical
B. locational
C. exchange
D. physiological
E. storage
3. He (she) developed the use of standardization in large scale mass

production using a moving assembly line.
A. Frederick Winslow Taylor
B. Frank Gilbreth
C. Adam Smith
D. Charles Babbage
E. Henry Ford
4. This individual documented the economic benefits from work

simplification in production through time and motion studies.
B. Frank Gilbreth
C. Adam Smith
D. Charles Babbage
E. Elton Mayo
5. This individual was greatly responsible for the scientific management

movement since the turn of the century.
B. Frank Gilbreth
C. Adam Smith
D. Charles Babbage
E. Elton Mayo
6. This individual developed "bar-chart" techniques for activity
scheduling.
A. Henry Gantt
B. Elton Mayo
C. Adam Smith
D. Walter Shewhart
E. Frank Gilbreth
7. Operations research management has its roots in which of the

following wars?
A. World War I
B. World War II
C. Korean War
D. Vietnam War
E. Cold War
8. Which of the following individuals made contributions to the field of

Operations Management by developing MRP systems using
computers?
A. Frank Gilbreth
B. Joe Orlicky
C. Henry Ford
D. Charles Babbage
E. Elton Mayo
9. Management decisions within the operations function can be divided

into which of the following broad areas:
I. Strategic decisions
II. Tactical decisions
III. Operational planning and control decisions
IV. Transformation decisions
A. I and II only
B. I and III only
C. I, II, and III only
D. II, III, and IV only
E. I, II, III, and IV only
10. The core services customers seek from manufacturing include the
following:
I. Quality
II. Speed
III. Flexibility
IV. Price
A. I and II only
B. I and III only
C. III and IV only
E. I, II, III, and IV
11. Chase and Garvin suggest that value-added factory services can be
divided into the following categories:
I. Information
II. Problem solving
III. Sales support
IV. Field support
A. I only
B. III only
C. I and II only
D. I, III, and IV only
12. According to the book's authors, operations resources consist of the

following:
I. People
II. Plants
III. Parts
IV. Processes
V. Planning and control systems
A. I and II only
B. I, II, and III only
C. I, II, III, and IV only
D. II, III, IV and V only
E. I, II, III, IV and V
ANSWERS:
1E, 2D, 3E, 4B, 5A, 6A, 7B, 8B, 9C, 10E, 11E, 12E
CHAPTER 2. OPERATIONS STRATEGY AND COMPETITIVENESS
1. As identified by C. Wickham Skinner and other researchers,

the basic operations strategies include which of the following:
I. Cost
II. Quality
III. Field Support
IV. Flexibility
A. I are basic operations strategies

B. I and II are basic operations strategies
C. II and III are basic operations strategies
D. I, II and IV are basic operations strategies
E. I, II, III and IV are all basic operations strategies
2. According to the decision making framework presented in the Chase,

Aquilano, & Jacobs text, decisions related to the number of workers to
employ and when to employ them are examples of:
A. Strategic decisions.
B. Tactical decisions.
C. Planning and control decisions.
D. Short-term decisions.
E. Long-term employment decisions
3. An Operations Strategy can include many issues and choices. Which

of the following is not generally considered an Operations issue?
A. The degree of vertical integration to be used by the company.
B. The mix and volume of product to be sold.
C. The size and location of the manufacturing facility.
D. Development of defect prevention plan.
E. The type and number of manufacturing machines to be ordered
to meet capacity.
4. According to the decision making framework presented in the Chase,

Aquilano, & Jacobs text, decisions related to the number of workers to
employ and when to employ them are examples of:
A. Strategic decisions.
B. Tactical decisions.
C. Planning and control decisions.
D. Short-term decisions.
E. Long-term employment decisions
5. An Operations Strategy can include many issues and choices. Which
of the following is not generally considered an Operations issue?
A. The degree of vertical integration to be used by the company.
B. The mix and volume of product to be sold.
C. The size and location of the manufacturing facility.
D. Development of defect prevention plan.
E. The type and number of manufacturing machines to be ordered
to meet capacity.
6. Productivity increases when:

A. Inputs increase while outputs remain the same
B. Inputs decrease while outputs remain the same
C. Outputs decrease while inputs remain the same
D. Inputs and outputs increase proportionately
E. None of the answers are correct
7. Which of the following factories is the most productive?
A. Factory V1, which uses 43 units of input to produce 38 units of

output
B. Factory W15, which uses 28 units of input to produce 27 units of
output
C. Factory X3A, which uses 57 units of input to produce 58 units of
output
D. Factory Y3, which uses 120 units of input to produce 110 units of
output
E. Factory ZZ3, which uses 260 units of input to produce 240 units
of output
8. Which of the following divisions of a firm is the most productive?

Average Average Profit
Input Output (%)
A. Division A 43 38 12.0
B. Division B 28 27 8.6
C. Division C 57 52 9.7
D. Division D 120 110 10.8
E. Division E 260 240 11.0
9. According to the MIT commission on productivity, all of the following

are causes of productivity problems in the United States EXCEPT:
A. use of short time horizons
B. strategic weaknesses in the U.S. companies
C. lack of cooperation between individuals and organizations
D. weak human resource management
E. uncooperative labor unions particularly with respect to
automation
10. Which of the following measures is a total productivity measure?

I. Output/Labor
II. Output/Materials
III. Output/(Labor+Energy+Capital)
IV. Output/Inputs
A. I and II only
B. II and III only
C. III and IV only
D. III only
E. IV only
11. Speed of delivery as a major factor in determining the success of a

company is most closely associated with
A. George Stalk, Jr
B. W. Edwards Deming
C. C. Wickham Skinner
D. Joseph M. Juran
E. None of the above are correct
12. Acme Corporation received the data below for its rodent cage
production unit. Find the total productivity measure. Round your
answer to the nearest tenth.
Output Input
50,000 cages Production time 620 man hours
Sales price: $3.50 per Wages $7.50 per hour
unit
Raw materials (total $30,000
cost)
Component parts (total $15,350
cost)
A. 1.1
B. 3.8
C. 3.5
D. 10.8
E. 1.7
13. As Operations Manager, you are concerned about being able to meet
sales requirements in the coming months. You have just been given
the following production report.
JAN FEB MAR APR
Units Produced 2300 1800 2800 3000

Hours per Machine 325 200 400 320
Number of Machines 3 5 4 4
Find the average monthly productivity (units per hour).
A. Between 2.5 and 6.9

B. Between 7.0 and 9.0
C. Less than 1.9
D. Between 1.9 and 2.4
E. None of the above
14. Which of the following are steps for developing priorities for a manufacturing strategy?
I. Segment the market according to the product group
II. Identify product requirements, demand patters, and
profit margins of each group
III. Determine order winners and qualifies for each group
IV. Convert order winners into specific performance
requirements
A. I only
B. III only
C. I and II only
D. I, II and IV only
E. I, II, III and IV
ANSWERS:
1D, 2B, 3B, 4B, 5B, 6B, 7C, 8B, 9E, 10B, 11A, 12C, 13D, 14E
CHAPTER 3 PROJECT MANAGEMENT
1. All of the following are advantages of the pure project organizational

structure EXCEPT:
A. the project manager has full authority over the project.
B. equipment and people are shared across projects.
C. lines of communication are shortened.
D. high team pride and commitment. .
E. team members report to one boss.
2. Which of the following is NOT an advantage of the matrix project

structure?
A. communication between functional divisions is enhanced
B. duplication of resources is minimized
C. policies of the parent organization are followed
D. there are two bosses - functional managers and project
managers
E. team members have a functional area after the project is
completed
3. Which of the following factors are of concern in project management?

I. time
II. cost
III. resource availability
A. I only
B. II only
C. III only
D. I and II only
E. I, II and III
4. For critical path scheduling techniques to be most applicable, the jobs

or tasks of a project must be:
A. well-defined.
B. independent.
C. ordered.
D. a and b only.
E. all of the above.
5. The early finish time equals:

A. the earliest possible time that the activity can begin.
B. the earliest start time plus the time needed to complete the
activity.
C. the latest time an activity can end without delaying the project.
D. the earliest time an activity can start minus the activity time.
E. the latest start time minus the activity time.
6. The critical path of a project can be characterized in the following
way:
A. The slack times for each task in the project are zero.
B. The chain of activities (from start to finish) that has the largest
sum of activity durations.
C. The early start date and early finish date are always the same
for each activity on the critical path.
D. To reduce the project duration, you must reduce the slack time
of a task on the critical path.
E. None of the above are correct.
7. You have just been asked to oversee 100 people on a two-year project,
to develop a new MRI machine similar to a current product, which will
have twice the effectiveness and cost less to manufacture. You are
uncertain about the time required to complete many of the activities.
Which project management technique should you use?
A. CPM with a single time estimate
B. MRP
C. CPM with three time estimates
D. GANTT
E. Any of the above will work.
8. Which of the following is a major disadvantage of the Matrix method of

project management?
A. A single project manager is held responsible for the successful
completion of the project.
B. Team members must leave their functional “home” -
jeopardizing their career path.
C. Communication between functional disciplines is discouraged.
D. Team members report to two bosses - creating a potential
conflict.
E. The combined functional knowledge of many similarly-trained
employees can be used to create synergistic solutions to
problems as they arise over the duration of the project
9. The early finish time for an activity equals:

A. The earliest possible time that the activity can begin.
B. The earliest start time plus the time needed to complete the
activity.
C. The latest time an activity can end without delaying the project.
D. The earliest time an activity can start minus the activity time.
E. The latest start time minus the activity time.
10. What is the expected duration of the path BCDEGH?
Activity Pred Optimi Most Pessim
ecessors stic Likely istic
A 2 3 4
B 2 4 6
C A, B 3 4 8
D C 2 3 7
E D 4 6 8
F E 5 8 13
G E 4 4 4
H F, G 2 4 6
A. 17
B. 26
C. 25
D. 37.33
E. 39
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT 2

QUESTIONS.
Ta P Nor Minim C
sk Predecessor mal Time um Time Crash Cost
s (weeks) (weeks) ( per
week
A None 8 7 $1000
B A 3 2 $500
C A 5 4 $1200
D B, C 6 5 $1500
E D 3 2 $800
F D 5 4 $900
G E, F 6 5 $3000
11. What is the minimum possible project duration attainable?
A. 21
B. 25
C. 26
D. 29
E. None of the above answers are correct.
12. If you want to shorten the project by two weeks, which tasks should be
crashed (and by how much) while minimizing direct costs?
A. Task A by two weeks.
B. Task B by two weeks.
C. Task B by one week and Task E by one week.
D. Task A by one week and Task F by one week.
E. Task F by two weeks.
ANSWERS:
1B, 2D, 3E, 4E, 5B, 6B, 7C, 8D, 9B, 10B, 11B, 12D
CHAPTER 4 PRODUCT DESIGN AND PROCESS SELECTION -
MANUFACTURING
1. An assembly drawing does which of the following?

A. shows an exploded view of the product and components
B. shows how parts go together and the order of assembly
C. specifies the sequence of machines used to assemble the
product
D. defines symbolically, and in great detail, the operations
performed
E. shows the manufacturing process cycle
2.. An assembly chart does which of the following?

product
performed
3. An operations or routing sheet does which of the following?

product
performed
4. A flow process chart does which of the following?

product
performed
E. shows how special purpose equipment is designed for a limited
range of work and small volume production
5. The major functional areas involved in product design and process
planning activities include:
I. Marketing and Sales
II. Manufacturing
III. Product Development
IV. Finance
A. II and III only

B. I, II and IV only
C. I, II and III only
D. II, III and IV only
6. Which of the following are important issues in linking product design

and manufacturing?
I. Design for manufacturability
II. Concurrent engineering
III. Frequency of design changes
A. I only
B. II only
C. I and II only
D. II and III only
E. I, II and III
7. The production of small batches of a large quantities of different

products requiring different sets or sequences of processing steps
generally results in a
A. job shop process flow organization
B. batch process flow organization
C. assembly line process flow organization
D. continuous process flow organization
E. project management organization
8. The type of equipment, tooling, and operations required to complete a

part are specified in the:
A. assembly chart
B. operation and routing sheet
C. assembly drawing
D. flow process chart
E. break-even chart
9. A process usually consists of
A. a set of tasks
B. a flow of material and information
C. a storage of material and information
D. both a and b
E. A, B, and C
10. Which of the following types of processes will be used to produce

gasoline and petroleum products?
A. Job Shop
B. Batch
C. Assembly Lines
D. Continuous Processing
E. All of the above could be used
11. Which of the following types of processes will be used to produce

airplanes?
A. Job Shop
B. Batch
C. Assembly Lines
D. Continuous Processing
E. All of the above could be used
12. One approach by which the voice of the customer becomes a factor in
a product's design specifications is:
A. quality function deployment
B. continuous process improvement
C. product re-engineering
D. conformance engineering
E. none of the above
ANSWERS:
1B, 2B, 3C, 4D, 5C, 6E, 7A, 8B, 9E, 10D, 11A, 12A
CHAPTER 4 SUPPLEMENT OPERATIONS TECHNOLOGY
1. According to the authors, which of the following terms refer to fully

automated manufacturing?
I. Total factory automation
II. Integrated processing
III. The factory of the future
IV. Computer integrated manufacturing
A. I, II, and IV only

B. I, III, and IV only
C. II, III, and IV only
D. I, II, and III only
2. CIM is:
I. a method used to increase flexibility.
II. a method which automates and integrates design, planning,
control, and manufacturing itself.
III. an automated version of the generic manufacturing process.
IV. synonymous with JIT.
A. I only.
B. I, II, and III only.
C. I, III, and IV only.
D. I, II, III, and IV.
E. I, II
3. CAE is:
A. used to evaluate and conduct engineering analysis on a part.
B. used to design numerically controlled part programs.
C. a program which instructs computer controlled tools.
D. used to design the use and sequence of machine centers.
E. all of the answers are correct
4. Automated MP&C Systems are:

A. computer based information systems.
B. computer based design systems.
C. computer based purchasing systems.
D. computer based quality control systems.
E. none of the answers are correct
5. Which of the following is NOT a task performed by robots?

A. spot welding
B. assembly
C. spray painting
D. decision making
E. pick and place materials
6. Which of the following is NOT identified by the authors as a benefit of

CAD?
A. improved design accuracy
B. design staff reduction
C. reduced time spent prototyping
D. an improved engineering database
E. all of the items were identified
7. XYZ Techno Systems produces a computer chip utilizing a process with

highly toxic chemicals. The company is currently a defendant in a civil
suit concerning an employee who was seriously injured because of
contact with the hazardous chemicals. As a consultant, which of the
following technologies should you recommend?
A. FMS.
B. CAD.
C. Computer aided quality control.
D. Robotics.
E. CAE
8. CIM improves which of the following strategic dimensions of

manufacturing?
I. cost
II. quality
III. productivity availability
IV. flexibility
A. I and II only
B. II and IV only
C. I, II, and IV only
9. Group technology can classify and group parts based on which of the
following:
I. the geometry of the part
II. the materials used
III. the operations and equipment required
A. I only
B. II only
C. I and II only
D. II and III only
E. I, II and III
10. Which of the following are benefits of automated materials handling

systems?
I. reduced inventories and storage space
II. reduced product damage
III. quicker material movement
IV. higher labor productivity
A. I only
B. I and II only
C. I and III only
D. I, II and III only
11. New technologies can be used to achieve which of the following:

I. a reduction in labor costs
II. an increase in product variety
III. an improvement in product quality
IV. a reduction in product lead time
V. an increase in operations flexibility
A. I only
B. I and III only
C. I, III and IV only
D. III, IV and V only
12. Technologies such as electronic mail, teleconferencing, voice mail and

fax are frequently associated with:
A. image processing systems.
B. office automation.
C. electronic data interchange.
D. decision support and expert systems.
E. all of the above answers are true
13. While the 19th century gave birth to the Industrial Revolution, the
20th century has spawned the:
A. Integrated Revolution.
B. Technology Revolution.
C. Automation Revolution.
D. Information Revolution.
14. Which of the following new information technologies have been

adopted extensively by the service sector?
I. office automation
II. image processing systems
III. automated materials handling
IV. electronic data interchange
A. I only
B. I and III only
15. Which of the following types of risks accompany the acquisition of new
technologies?
I. technological risks
II. operational risks
III. organizational risks
IV. environmental risks
A. I only
B. I and II only
C. I and IV only
ANSWERS:
1B, 2B, 3A, 4A, 5D, 6B, 7D, 8E, 9E, 10E, 11E, 12B, 13D, 14D, 15E
CHAPTER 5 PRODUCT DESIGN AND PROCESS SELECTION -
SERVICES
1. Service systems with high customer contact:

A. are usually relatively easy to control.
B. are usually difficult to control.
C. experience medium difficulty in control.
D. are generally unconcerned with control activities.
E. all of the above answers are correct
2. Which of the following most closely relates to a permeable service

system?
A. mail contact
B. phone contact
C. on-site technology
D. face to face contact, total customization
E. none of the above answers are correct
3. Which of the following most closely relates to a reactive system?

A. mail contact
B. phone contact
C. on-site technology
D. face to face contact, total customization
4. Lovelock and Young propose that the service process can be enhanced
by:
A. substituting technology for people.
B. separating high contact and low contact operations.
C. having customers take a greater role in the production of the
service.
D. minimize the customer contact in the service system
E. none of the above answers are correct.
5. The customer contact approach holds that:

A. a low-contact service operation can operate more efficiently
than
a high-contact service.
B. worker skills should not be considered when staffing high or low
contact departments.
C. most high contact systems are not affected by the customer's
presence.
D. a high-contact service operation is more efficient than a high
contact
operation.
E. none of the above answers are correct.
6. Which one of the following could best be run as an internal services
system?
A. a university billing office
B. a dance studio
C. a branch office of a professional employment agency
D. a movie theater
7. High contact services are which of the following?

I. More difficult to control
II. More difficult to rationalize
III. Have greater variation in service times
A. I only
B. I and II only
C. II and III only
D. I and III only
E. I, II, and III
8. Which of the following individual(s) is(are) associated with the

customer involvement approach to service organizations?
A. Lovelock and Young
B. Tom Peters
C. Jim Nordstrom
D. Theodore Levitt
E. None of the above answers are correct

production line approach to service organization?
B. Tom Peters
C. Jim Nordstrom
D. Theodore Levitt

personal attention approach to service organization?
B. Jim Nordstrom
C. Theodore Levitt
D. G. Lynn Shostack
11. Which of the following individual(s) is(are) associated with the concept
of service blueprinting?
A. Lynn Shostack
B. Theodore Levitt
C. Jim Nordstrom
D. Lovelock and Young
12. According to James Heskett the "Strategic Service Vision" involves the
following:
I. identification of the target market
II. the service concept
III. the service strategy
IV. the service delivery system
A. I only
B. II only
C. I and III only
13. Which of the following is NOT a general approach to delivering on-site

services?
A. batch process
B. production line approach
C. personal attention approach
D. self-service approach
14. The approach employed by McDonald's Corporation to deliver on-site

services is most appropriately termed:
A. the low customer contact approach.
B. the self-service approach.
C. the production line approach.
D. the personal attention approach.
15. Developing customer trust, promoting the benefits of cost, speed, and
convenience, and following up to ensure that procedures are being
effectively used are steps helpful to a firm employing which service
approach?
A. the personal attention approach
B. the internal service approach
C. the production line approach
D. the self-service approach
ANSWERS:
1B, 2B, 3D, 4C, 5A, 6A, 7E, 8A, 9D, 10B, 11A, 12E, 13A, 14C, 15D
CHAPTER 5 SUPPLEMENT WAITING LINE MANAGEMENT
1. The more complex waiting line problems can almost always be

handled by:
A. mathematical models.
B. queuing models.
C. linear programming.
D. computer simulation.
2. A one-man barbershop is a typical example of a:

A. single channel, tandem service facility.
B. single channel, single phase facility.
C. multi-channel, single phase facility.
D. multi-channel, multi-phase facility.
E. single channel, multi-phase facility
3. Which of the following is the most common queue discipline?

A. Shortest processing rule
B. First-come first-serv
(This problem requires a queuing model formula table.)
5. Which of the following is the mean number of students waiting in line

for service?
A. 1.0
B. 1.33
C. 2.0
D. 3.2
E. 4.0
6. Which of the following is the percentage of time that the registration

booth is busy?
A. 120
B. 100
C. 80
D. 66.7
E. 40
7. Which of the following is the percentage of time that the registration

booth is idle?
A. 0
B. 5
C. 15
D. 33
E. 60
8. Which of the following situations have servers which are fully (100%)
utilized? (For L read LAMBDA, M read MU)
I. L = 30, M = 20 both follow a Poisson Distribution
II. L = 20, M = 20 both follow a Poisson Distribution
III. L = 10, M = 20 both follow a Poisson Distribution.
IV. L = 20, M = 20 both are constant, that is not random
A. I, II and III only

B. I, II and IV only
C. I, III, and IV only
9. Students arrive at a class registration booth at the Poisson distributed

rate of 4 per hour. The administrators serve students in a first-come,
first-serve priority with an average exponentially distributed time of
12 minutes. Which of the following is the mean number of students
waiting in line for service? This problem requires a queuing model
formula table?
A. .1667
B. .50
C. 1.0
D. 3.2
E. 4.0
The next 2 questions refer to the following:

A one-hour film processing store has a single machine that processes
film as it arrives. The mean arrival rate of film is 70 rolls per hour and
follows a Poisson Distribution. The mean service rate (development
rate) of film is 80 rolls per hour and follows a Poisson Distribution.
(This problem requires a queuing model formula table).
10. The mean time in hours that a roll of film spends in the system is
which of the following?
A. .05
B. .10
C. .875
D. 1.0
E. 1.1
11. The mean utilization percentage of the developing equipment is which

of the following?
A. 10
B. 40
C. 70
D. 87.5
E. 90
Use the following information to work the next 2 problems:

A drive-in restaurant desires to analyze its Drive-Thru window.
Customers arrive at the rate of 50 units per hour. This rate is validly
described by a Poisson Distribution. Service times follow an
Exponential Distribution with a mean of 1 minute. There is a single
server at the window. (This problem requires a queuing model formula
table).
12. What percentage of the time is the drive-thru window idle?

A. 16.67
B. 33.33
C. 50.00
D. 83.33
E. 22.65
13. On the average how many minutes does a car spend in the system?
A. 4.2
B. 5.0
C. 1.2
D. 6.0
E. 3.3

Students arrive at the School of Business and Public Administration
advising office at the rate of 20 per hour. Judy Gumshoes advises
students at the rate of 24 per hour. Arrival rates follow a Poisson
Distribution, and service rates follow an exponential distribution. (This
problem requires a queuing model formula table).
14. What percent of the time is Judy busy with advising?

A. .833
B. .890
C. .913
D. .980
E. 1.00
15. At times, students seem to pile up in the hallways of the advising

office. On the average, what number of the students are waiting to be
advised?
A. 2.20
B. 4.17
C. 5.00
D. 8.33
E. 1.18

Students arrive at a single computer terminal during on-line student
registration at the rate of 10 per hour. On the average, the operator
of the terminal can process 20 students per hour. The arrival rate
follows a Poisson Distribution and the service rate follows an
Exponential Distribution. (This problem requires a queuing model
formula table).
16. What is the average waiting time for students before they can sit at
the terminal with the operator?
A. 6 minutes
B. 5 minutes
C. 3 minutes
D. 1.2 minutes
E. .3 minutes
17. How many students on the average are waiting in line to get to the
terminal?
A. .5
B. .833
C. 1
D. 1.2
E. 2.0
18. On average, items arrive into a system at the rate of 4 per hour. What
is the probability that exactly 2 items will arrive within a 15 minute
period.
A. 1.56%
B. 18.39%
C. 56.35%
D. 81.61%
E. 100.00%
19. If the mean arrival rate for customers entering Charlie's Burgers is 5
per minute, what is the probability that 25 customers will arrive within
a 4 minute period?
A. 4.46%
B. 24.38%
C. 45.36%
D. 95.54%
E. 100.00%
20. If items arrive at the rate of 6 per hour then the probability that 3 will
arrive within a 30 minute period is
A. 0.00%
B. 6.50%
C. 22.40%
D. 44.81%
E. 100.00%
ANSWERS
1D, 2B, 3B, 4E, 5B, 6D, 7D, 8B, 9D, 10B, 11D, 12A, 13D, 14A, 15B,
16C, 17A, 18B, 19A, 20C
CHAPTER 6 QUALITY MANAGEMENT
1. Which of the following are associated with the Baldrige Award?

I. Primary focus is customer satisfaction and quality
II. For US firms only
III. First award 1987
A. I only
B. II only
C. I and II only
D. II and III only
E. I, II, and III
2. The Baldrige Award's guidelines can be used to do which of the

following?
I. Help define and design total quality systems.
II. Help improve the computer based information system.
III. Assess customer satisfaction.
A. I only
B. I and II only
C. II and III only
D. I and III only
E. I, II, and III
3. All of the following are grading criteria of the Deming Prize except:
A. education and extension
B. standardization
C. future plans
D. data gathering/reporting
E. leadership
4. The following categories are eligible for the Baldrige Award:

I. manufacturing companies
II. service companies
III. small business
IV. nonprofit companies
V. foreign firm.
A. I only
B. I and II only
5. Comparing a firm's performance on critical criteria against the best
businesses is known as:
A. benchmarking.
B. comparative evaluation.
C. quality assessment.
D. root cause analysis.
E. quality function deployment.
6. Which of the following are characteristics of companies who have won

a Baldrige Award?
I. a quality vision was developed
II. senior management was actively involved
III. the quality effort was carefully planned and organized
IV. the overall process was vigorously controlled
A. I only
B. I and III only
7. The degree to which the product or service design specifications are

met is known as:
A. design quality
B. conformance quality
C. quality function deployment
D. fitness for use
8. The costs of quality are generally classified into the following

categories:
I. appraisal costs
II. prevention costs
III. failure costs
A. I only
B. II only
C. III only
D. I and III only
E. I, II and III
9. Costs associated with inspection and testing are examples of:

A. prevention costs
B. internal failure costs
C. external failure costs
D. appraisal costs
E. all of the above
10. Which of the following sequences describes the continuum covered by

the ISO 9000 series for an operating firm?
A. production--procurement--design and
development--installation--servicing
B. procurement--design and
development--production--installation--servicing
C. design and development--procurement--production--servicing--
installation
D. design and
development--procurement--production--installation--servicing
11. The sequential and continual nature of the continuous improvement

process is illustrated by the PDCA cycle. PDCA stands for:
A. procurement--design--completion--assurance
B. plan--do--check--act
C. produce--design--catalogue--assess
D. plan--development--check--align
E. produce--deliver--check--assure
12. A distribution showing the frequency of occurrences between the high

and low range of data is known as a:
A. histogram
B. checksheet
C. run chart
D. pareto diagram
E. scatter diagram
13. A time sequence chart displaying plotted values of a statistic,

including a center line and statistically determined control limits is a:
A. process flow chart
B. scatter diagram
C. run chart
D. control chart
E. cause and effect diagram
14. Checklists, parts kiting, special tooling, and electronic signaling

devices are examples of:
A. poka-yoke devices
B. statistical process control tools
C. jidoka
D. SMED technique
15. The cost of quality is estimated to be:
A. negligible
B. between 5-15% of sales
C. between 15-20% of sales
D. between 20-25% of sales
E. somewhere above 25% of sales
16. The costs of quality include all of the following except:
A. overhead
B. rework
C. scrap
D. inspection
E. warranties
ANSWERS
1E, 2D, 3E, 4C, 5A, 6E, 7B, 8E, 9D, 10D, 11B, 12A, 13D, 14A, 15C, 16A
CHAPTER 6 SUPPLEMENT STATISTICAL QUALITY CONTROL
METHODS
1. A process when in control produces a normally distributed output with

a mean of 200 and a mean range of 20. When using samples of size
20, then which of the following is the upper control limit of the X-BAR
chart?
A. 200
B. 201.414
C. 202.121
D. 203.6
E. 232.22

a mean of 200 and a mean range of 20. When using samples of size
20, then which of the following is the upper control limit of the R
chart?
A. 20
B. 22
C. 26
D. 30.5
E. 31.8

a mean of 200 and a mean range of 20. What percentage of the
sample means will be above 200?
A. 68
B. 50
C. 5
D. 1
E. .27
4. What is the probability that a process will be accepted as in control

when a two tailed Z of 2.58 is used to accept or reject the process?
(This problem requires a Z-table.)
A. .9973
B. .9900
C. .6800
D. .0100
E. .0027
5. A process generates floppy diskettes with a precision magnetic
coating. When in control, the mean coating thickness (i.e. output) is
400 with a standard deviation of 1. If sample sizes of 100 are drawn
from the process, then what is the probability of accepting the process
as in control when it is actually producing with a mean output of 402?
Assume a Z of 3 is used to accept or reject the process.
A. .8413
B. .5000
C. .0500
D. .0027
E. approx. 0.0
6. A process generates floppy diskettes with a precision magnetic

coating. When in control, the mean coating thickness (i.e. output) is
400 with a standard deviation of 1. If the engineers have specified the
magnetic coating must be from 395 to 405, then what is the
approximate proportion of defective parts that will be produced if the
mean diameter of the process shifts from 400 to 405?
A. .5000
B. .3413
C. .022
D. .0027
E. .00135
7. A process generates a turned diameter on a shaft. When in control,

the mean output is 100 with a standard deviation of 10. What is the
probability that when the process is in control, that it will be rejected
as out of control when a two tailed Z of 2.33 is used to accept or reject
the process?
A. .9973
B. .9800
C. .0200
D. .0100
E. .0027
8. The X-bar chart is most appropriately used to control which of the

following?
A. The standard deviations of diameters of a turned part.
B. The mean diameter of a turned part.
C. The process response.
D. The percentage of customers satisfied with service received.
E. The process proportionality.
9. The P chart is most appropriately used to control which of the
following?
10. The R chart is used to control which of the following?

a mean of 200 and a range of 20. Which of the following is the upper
control limit on an X-Bar Chart when samples of 5 each are taken to
control the process?
A. 242.2
B. 220
C. 211.6
D. 210
E. 205
12. The Bermuda Bell Telephone Company would like to better control the
quality of phone services that customers receive from each directory
assistance office. They would like to track monthly customer
satisfaction at each directory assistance office using control charts.
They ask you to set up a control chart in which the percentage
satisfaction of 100 customers are plotted each month. They would like
to identify those offices at which the satisfaction level is statistically
significantly lower than .99 (99%). What is the usual lower control
limit of the appropriate control chart?
A. .96
B. .94
C. .92
D. .90
E. .88
13. A chart which controls the total number of defects divided by the
sample size is known as a(n):
A. R chart.
B. X chart.
C. C chart.
D. Run chart.
E. p chart.
14. Testing a random sample of existing goods to determine whether an

entire lot should be accepted or not is an application of:
A. process control.
B. acceptance sampling.
C. quality function deployment.
D. histograms.
E. pareto analysis.
15. The consumer's risk is the probability associated with:

A. rejecting a bad lot.
B. rejecting a good lot.
C. accepting a good lot.
D. accepting a bad lot.
E. none of the above.
16. Which of the following parameters are needed to establish an

acceptance sampling plan?
I. the acceptable quality level
II. the producer's risk
III. the lot tolerance percent defective
IV. the consumer's risk
A. I only
B. I and II only
C. I, II and IV only
17. Illustrating the probability of accepting lots with varying percent

defectives is done using:
A. an operating characteristic curve.
B. an acceptable quality level curve.
C. a lot tolerance percent defective curve.
D. pareto analysis.
E. a process control chart.
18. Providing timely information about currently produced items and

detecting process shifts are typical objectives of:
A. acceptance sampling plans.
B. operating characteristic curves.
C. process control procedures.
D. value analysis.
E. Shingo procedures.
19. The main issues to address in creating a control chart are:
I. the size of the samples
II. the number of samples
III. the frequency of samples
IV. the control limits
A. I and II only
B. I and III only
20. Which of the following are statistical techniques for conducting
experiments to determine the best combinations of product and
process variables to produce a product?
A. statistical process control methods
B. acceptance sampling plans
C. Taguchi methods
D. process capability analysis
E. Isikawa diagrams
ANSWERS
1D, 2E, 3B, 4B, 5E, 6A, 7C, 8B, 9D, 10A, 11C, 12A, 13E, 14B, 15D,
16E, 17A, 18C, 19E, 20C
CHAPTER 7 STRATEGIC CAPACITY PLANNING
1. According to the authors, excessive capacity may result in:

I. price reductions
II. work force underutilization
III. higher profit margins
IV. additional product offerings
A. I, II, and III only

B. I, II, and IV only
C. I, III, and IV only
2. The best operating level is:

A. the maximum point of the cost curve.
B. the level of capacity for which average unit cost is minimized.
C. maximum capacity.
D. the level of capacity for which total cost is minimized.
3. According to the text, the Ringling Brothers Barnum and Bailey Circus
is an example of:
A. process flexibility.
B. worker flexibility.
C. external flexibility.
D. capacity flexibility.
E. plant flexibility.
4. Long-range capacity planning should be the responsibility of:

A. analysts.
B. middle management.
C. top management.
D. marketing management.
E. operations management
5. In a decision tree, a decision point is represented as a:

A. square.
B. circle.
C. rectangle.
D. triangle.
E. none of the above answers is correct
6. Capacity balance can be obtained by:
A. buffer inventories.
B. decoupling through backup equipment.
C. adding capacity to bottleneck stages.
D. all of the above.
7. Capacity used equals 768; Design capacity equals 1026. What is the
capacity utilization rate?
A. 74.85%
B. 133.6%
C. 72.4%
D. 174.5%
E. Not enough information is available to solve the problem
8. The capacity level selected has a critical impact on the firm's:

A. rate of response.
B. cost structure.
C. inventory policies.
D. management and worker support needs.
9. The level of capacity for which the volume of output where average
unit cost is a minimum is known as the:
A. best operating level.
B. strategic capacity volume.
C. rated capacity level.
D. break-even operating level.
E. design capacity level.
10. When multiple products can be produced at a lower cost in

combination than they can separately the company is said to
experience:
A. best operating level.
B. full capacity utilization.
C. zero-changeover time.
D. economies of scope.
E. economies of scale.
11. A 25% capacity cushion equates to a(n):

A. 75% utilization rate.
B. 80% utilization rate.
C. 125% utilization rate.
D. 133% utilization rate.
12. The determination of capacity requirements for a company requires
which of the following be performed?
I. forecast demands for individual product lines
II. assess individual plant capabilities
III. allocate production throughout the plant network
A. I only
B. II only
C. I and II only
D. I and II only
E. I, II and III
13. Having the ability to respond rapidly to demand volume changes and
product mix changes is known as:
A. process flexibility.
B. capacity flexibility.
C. service flexibility.
D. experience flexibility.
E. market dominance.
14. Which of the following are important differences between service and
manufacturing capacity planning?
I. service capacit
e shifted to where they are needed
B. use customer co-production in the service transaction
C. reduce their hours of operation
D. a and b only
E. a and c only
ANSWERS
1B, 2B, 3E, 4C, 5A, 6D, 7A, 8E, 9A, 10D, 11B, 12E, 13B, 14C, 15D
CHAPTER 7 SUPPLEMENT LINEAR PROGRAMMING
1. Linear programming is useful principally in problems:

A. which cannot be handled by a computer.
B. which can be solved graphically.
C. which require simultaneous solutions of many equations.
D. which are impossible to solve by other methods.
2. The principal limitation of linear programming is that it requires:

A. knowledge of very advanced mathematics.
B. computers.
C. complex equations to represent the problem.
D. all relationships to be linear.
3. A graphical solution to a linear programming problem:

A. is possible in problems limited to three dimensions.
B. is usually applied to four dimensional problems.
C. is useful only in theory and has no practical significance.
D. is usually used to verify the computer solution.
4. Each variable in the Solution Mix column should have which of the
following?
A. a zero at the intersection of its row and column and all of its
other column values
equal to one.
B. a one at the intersection of its row and column and all of its
other column values
equal to zero.
C. a zero at the intersection of its row and column all other values
nonzero.
D. a nonzero value at the intersection of its row and column.
E. none of the answers is correct
Use the following information to work the next 4 questions.

A firm produces three products A, B, and C. These products pass
through two machines, X and Y. The capacities of these machines are
limited to 30 and 60 hours each. Each A requires 2 hours of machine X
and 1 hour of machine Y. Each B requires 2 hours of machine X and 3
hours of Y. Each C requires 3 hours of X and .5 hours of Y. The firm
receives a net contribution of $5, $4, and $3 per unit of A, B, and C
produced.
5. Which of the following matrices represent the coefficients matrix for
the constraints and right-hand sides of this problem?
A. 1 2 3 < = 30
1 3 .5 < = 60
B. 1 2 <=5
3 2 <=4
3 .5 < = 3
C. 2 2 3 < = 30
1 3 .5 < = 60
D. 1 2 >=5
3 2 >=4
3 .5 > = 3
6. The maximum number of B's that can be in the solution is which of the
following?
A. 10
B. 15
C. 20
D. 30
E. 60
7. Of the three products that can be produced, at most, how many of the
three different products can be in the solution at once?
A. all three
B. only two
C. only one at a time
D. zero
E. there is not enough information available to solve
8. The maximum number of A's that can be in the solution is which of the
following?
A. 10
B. 15
C. 20
D. 30
E. 60
9. Which of the following are characteristics of the Simplex Method?

I. It evaluates all possible corner points for the optimal solution II.
it finds the optimal solution at a corner point
II. It finds the optimal solution at a corner point
III. When at a corner point, it provides the value of incremental
changes in the
objective function at all adjacent corner points IV. so long as the
objective
function and constraints are linear, an optimal solution will be found
IV. So long as the objective function and constraints are linear, an
optimal
solution will be found
A. I and III only

B. II and IV only
E. I, II, III, IV
10. When multiple objectives exist in a linear programming problem it is

best solved using:
A. linear programming.
B. integer programming.
C. dynamic programming.
D. goal programming.
E. any of the methods can be used equally well
11. Which of the following are necessary conditions in a program situation

for linear programming to pertain?
I. limited resources
II. explicit objective
III. linearity
IV. divisibility
A. I only
B. II only
C. I and II only
D. I, III and IV only
12. Investigating how small changes in the solution of a linear

programming problem affect the objective function is known as:
A. parametric analysis.
B. optimization analysis.
C. sensitivity analysis.
D. feasibility analysis.
E. none of the answers is correct
13. Which of the following can be used to make initial allocations in
solving transportation problems?
I. Northwest-corner method
II. Least cost method
III. Vogel's approximation method
IV. Assignment method
A. I only
B. II only
C. I and II only
14. A convenient way of setting up a linear programming problem for

solution using the simplex method is to:
A. draw a network diagram.
B. construct a solution tableau.
C. determine shadow prices.
D. perform sensitivity analysis.
E. all of the answers are true
ANSWERS
1C, 2D, 3A, 4B, 5C, 6B, 7B, 8B, 9D, 10D, 11E, 12C, 13D, 14B
CHAPTER 8 JUST-IN-TIME PRODUCTION SYSTEMS
1. A focused factory is one that:

A. produces many products with options.
B. is small and tends to specialize.
C. has a large number of management specialists.
D. is vertically integrated.
E. all of the above answers are true
2. Group technology includes:

A. grouping workers by job classification.
B. grouping machines by product.
C. grouping management function.
D. grouping raw material uses.
E. all of the above answers are true.
3. A Kanban system is based on:

A. computer order generation.
B. verbal order transmission.
C. a manual card system.
D. the use of buffer inventories.
E. large lot sizes.
4. The Kanban small lot size approach to production depends greatly on:
A. buffer inventories.
B. long production runs.
C. reducing machine set-up times.
D. production coordination.
E. computer order generation.
5. Japanese union/management relations are based on all of the

following EXCEPT:
A. the existence of company-wide unions.
B. a cooperative arrangement.
C. the existence of company bonus plans.
D. clearly defined and limited work rules.
E. worker flexibility.
6. Suppliers to Japanese manufacturers tend to:

A. be large firms.
B. be picked for short-term contracts.
C. make parts for a single customer.
D. be part of multiple-source networks.
7. In a JIT system, preventive maintenance is:
A. the sole responsibility of a maintenance department.
B. scheduled on a plant-wide basis.
C. the responsibility of machine operators.
D. treated as an overhead expense.
8. Some excess capacity in a JIT system:

A. means a poorly designed system.
B. is not considered to be a serious problem.
C. can always be eliminated.
D. means that high-cost machines are idle.
E. is not common.
9. In a JIT system, quality is:

A. reduced because of high productivity.
B. lowered by frequent inspection.
C. built in, not inspected in.
D. lowered by inspecting every item.
E. based on acceptance sampling.
10. The initial pull in a Kanban system is exerted by the:

A. first fabrication station.
B. production foreman.
C. final assembly schedule.
D. first assembly station.
E. scheduled due date.
11. In a Kanban system, parts are accounted for by:

A. frequent floor counting.
B. a backflush system.
C. usage records.
D. supplier invoices.
E. zero defect computer files.
12. Which of the following is a group problem-solving technique?

A. barnstorming
B. individual dynamics
C. root-cause analysis
D. cause-effect analysis
E. parental analysis
13. Which of the following are NOT associated with Just-In-Time
production?
I. Group Technology
II. Reduced Lot Sizes
III. Increased Holding Costs
IV. Large Set-Up Times
V. Uniform Plant Loads
A. I and II only
B. II and III only
C. III and IV only
D. III, IV, and V only
E. I, II, and V only
14. Which of the following are JIT implementation requirements?

I. preventive maintenance
II. total quality control
III. increasing capacity utilization
IV. vertically integrated facilities
A. I only
B. I and II only
C. I and III only
15. By driving queues to zero, JIT achieves the following advantages:

I. minimal inventory investment
II. shorter lead times
III. faster response to demand changes
IV. quality problems exposed
A. I only
B. II only
C. II and III only
ANSWER
1B, 2B, 3C, 4C, 5D, 6C, 7C, 8B, 9C, 10C, 11B, 12C, 13C, 14B, 15E
CHAPTER 9 FACILITY LOCATION
1. Which of the following is not a method which is used in location

analysis?
A. linear programming-transportation model
B. best location method
C. factor rating systems
D. analytic delphi model
E. center of gravity method
2. Regional costs include:

I. land acquisition costs
II. distribution costs
III. construction costs
IV. taxes
A. I only
B. I and III only
3. Which of the following techniques, when combined with a detailed cost

analysis, can be used to conduct macro analyses for plant location
decisions?
I. linear programming
II. center of gravity
III. factor-rating systems
A. I only
B. III only
C. I and II only
D. I and III only
E. I, II and III
4. Which of the major marketing considerations have been shown to be

most important for multi-site firms?
I. price
II. product
III. promotion
IV. location
A. I only
B. I and IV only
C. II and IV only
5. In practice, the question of location is very much linked to the:
I. need to produce close to the customer
II. need to locate near the appropriate labor pool
III. need to have a plant in a foreign country
IV. need to keep a company's separate business segments in one
location
A. I only
B. I and II only
C. II and III only
6. Which of the following are criteria that influence manufacturing plant

and warehouse location decisions?
I. proximity to customers
II. business climate
III. infrastructure
IV. supplier base
A. I only
B. I and II only
7. Which of the following are criteria that influence manufacturing plant

and warehouse locations?
I. total costs
II. quality of labor
III. suppliers
IV. political risk
A. I only
B. II only
8. Power Fuels, is seeking to locate a holding facility between its Baton
Rouge refinery and its distributors in Lake Charles, New Orleans,
Jackson and Shreveport. If the following shipping volumes and
coordinates are used, the center of gravity method would provide an
initial starting point for a new site at which X,Y coordinates?
Shipping Volume
Gallons of Gas/Month X Y
Location (000,000) Coordinate Coordinate
Baton Rouge 2750 200 50
Lake Charles 600 125 45
New Orleans 1000 235 40
Jackson 500 225 100
Shreveport 650 110 105
A. 125.3, 45.7
B. 130.5, 48.6
C. 189.8, 58.7
D. 200.4, 60.3
E. 210.2, 95.8
9. Clothes-4-U has a manufacturing facility in Little Rock with distribution

centers in Kansas City, St. Louis, Fort Smith and Memphis. They are
seeking to locate a warehouse to service these 4 distribution centers.
Using the center of gravity method and the following shipping weights
and coordinates, an initial starting point for a new site would have
which X, Y, coordinates?
Shipping Weight X Y
Location (lb./week) Coordinate
Coordinate
Little Rock 3500 300 100
Kansas City 500 195 400
St. Louis 800 375 375
Fort Smith 1050 200 125
Memphis 1150 400 110
A. 300.0, 115.0
B. 302.5, 158.3
C. 305.6, 200.5
D. 352.8, 300.6
E. 395.2, 376.2
10. Which of the following costs is not a "class of costs" that is considered
in locating a facility?
A. distribution costs
B. raw material or supply costs
C. regional costs
D. labor costs
ANSWERS
1B, 2C, 3E, 4C, 5B, 6E, 7E, 8C, 9B, 10D
CHAPTER 10 FACILITY LAYOUT
1. Which of the following is not a mark of a good layout in

manufacturing?
A. straight line flow pattern (or adaptation)
B. predictable production time
C. bottleneck operations
D. work stations close together
E. open plant floors (high visibility)
2. Which of the following is also referred to as a layout by function?

A. Process layout
B. Product layout
C. Group technology layout
D. Fixed-position layout
E. Assembly line
3. A flow shop layout is often referred to as a:

A. Process layout
B. Product layout
C. Group technology layout
D. Fixed-position layout
E. Batch process
4. According to the authors, when balancing an assembly line, it is best

to start by:
A. determining the required cycle time.
B. computing the minimum number of work stations.
C. drawing a precedence diagram.
D. establishing rules by which tasks are to be assigned to work
stations.
E. assigning tasks to individual work stations.
Use the following information for the next 3 questions.
An assembly line operated 7.5 hours per day and produces 400 units
per day. Following are the tasks that are performed with their
performance time (SEC) and preceding tasks.
TASK PERFORMANCE TIME PRECEDING TASKS

A 10 NONE
B 12 A
C 32 A
D 15 B
E 42 B
F 6 D
G 30 E
H 12 E
I 10 C
J 9 F,G
K 15 J,H
L 11 K,I
Compute the required cycle time.

A. 1.125 seconds
B. 53.3 seconds
C. 67.5 seconds
D. 7.5 hours
E. 62 seconds
6. What is the theoretical minimum number of work stations if the

required cycle time is 62 seconds?
A. 2.29
B. 69.75
C. 2.08
D. 3.29
E. 3.02
7. If the required cycle time is 62 seconds, which of the following

assignment rules will result in the lowest number of work stations?
A. Primary Rule: Most followers with secondary rule: longest
operating time.
B. Primary Rule: Longest operating time with secondary rule: most
followers.
C. Both rules result in an equal number of work stations.
D. Not enough information is available to make a determination
E. Neither rule results in a cycle time of 62 seconds.
8. If the required cycle time is 62 seconds, what is the efficiency of this
balance using the most followers as the primary rule and the longest
operating time as the secondary rule?
A. .80
B. .83
C. .82
D. .75
E. .77
9. According to the authors, possible answers to unequal work station

times may be:
I. flexible line layouts
II. U shaped assembly line
III. L shaped assembly lines
IV. fixed location layouts
A. I and II only
B. I and III only
10. Compute the required cycle time for a company which operates two
identical production lines for 7.5 hours a day with a demand of 16,225
items per week (assume a five day work week.)
A. .1387 minutes
B. .0277 minutes
C. .0046 minutes
D. .2800 minutes
E. .5600 minutes
11. All of the following are inputs to the facility layout decision EXCEPT:
A. specifying system output and flexibility objectives.
B. identifying bottleneck work stations.
C. estimating system demand.
D. determine the number of operations and flows between
departments.
E. determining space availability.
12. When similar equipment or functions are grouped together the type of
layout is referred to as a:
A. product layout.
B. fixed-position layout.
C. process layout.
D. cellular layout.
13. A shipyard is an example of a:

A. process layout.
B. product layout.
C. group technology layout.
D. fixed-position layout.
14. CRAFT is a computerized layout program meaning:

A. Computerized Relative Allocation of Facilities Technique.
B. Computerized Research Assessment of Facility Technology.
C. Computerized Relationships Among Factory Technology.
D. Computerized Relative Attributes of Facility Training.
E. Computer Research About Facility Techniques.
15. Which of the following are CRAFT inputs?

I. a load matrix
II. a distance matrix
III. cost-per-unit distance traveled
A. I only
B. II only
C. III only
D. I and II only
E. I, II and III
16. The time between successive units coming off the end of the line is
known as the:
A. makespan time.
B. throughput time.
C. value added time.
D. cycle time.
E. assembly time.
17. An assembly line consisting of five work stations has a cycle time of
120 seconds. The total time required to complete all tasks is 480
seconds. The efficiency of this line as it is currently balanced is
A. 20%
B. 25%
C. 80%
D. 100%
E. 125%
18. The total time required to assemble an electric shaver is 12 minutes. If
the company would like to p
above.
ANSWERS
1C, 2A, 3B, 4C, 5C, 6D, 7C, 8C, 9A, 10D, 11B, 12C, 13D, 14A, 15E,
16D, 17C, 18E, 19C, 20D
CHAPTER 11 JOB DESIGN AND WORK MEASUREMENT
1. A job is said to be enlarged horizontally if:

A. a worker is involved in a greater variety of tasks.
B. a worker is involved in planning.
C. a worker is involved in organizing work.
D. a worker inspects his or her own work.
2. Which of the following philosophies underlie socio-technical systems?

I. task variety
II. skill autonomy
III. feedback
IV. task autonomy
A. I only
B. II only
C. I, III, & IV only
D. I, II, III, IV
E. II, and III
3. The socio-technical approach to job design recognizes the need for

management:
A. to provide fast feedback on job performance.
B. to break up autonomous groups.
C. to minimize skill requirements for the job.
D. to minimize task variety.
4. An observer records various time values, averages them, and

multiplies this average by a performance rating. The work
measurement value that he obtains is called the:
A. observed time.
B. standard time.
C. direct time.
D. incentive time.
E. normal time.
5. Repetitive short-cycle tasks of high production volume are best

analyzed by using:
A. stopwatch time study.
B. activity charts.
C. activity classification.
D. schedule charts.
E. operation charts.
6. The function of specifying individual and group work activities in an
organizational setting is referred to as:
A. job design.
B. soft side workforce management.
C. hard side workforce management.
D. learning curve analysis.
E. none of the answers are correct
7. Job design decisions are being affected by which of the following

trends?
I. quality at the source
II. cross-training employees
III. increasing use of temporary workers
IV. organizational commitment to provide meaningful work
A. I only
B. I and II only
C. I and III only
8. Advantages to management from the specialization of labor include all

of the following EXCEPT:
A. rapid workforce training.
B. high output.
C. lower wages.
D. greater likelihood of process improvement.
E. greater work flow control.
9. For workers, disadvantages of increased labor specialization include:

I. ease in learning a job
II. little control over the pace of work
III. reduced opportunity for advancement
IV. boredom due to repetitive nature of work
A. I only
B. I and II only
10. Which of the following types of charts might be used in a study of
work methods?
I. operations charts
II. worker-machine charts
III. simo charts
IV. activity charts
A. I only
B. II only
C. I and II only
11. Establishing time standards for a job are necessary:

I. to schedule work and allocate capacity
II. to motivate workers and measure performance
III. to bid on contracts
IV. to provide benchmarks for improvement
A. I only
B. III only
C. I and II only
12. Basic techniques for work measurement include all of the following
EXCEPT:
A. time study.
B. predetermined motion time data.
C. elemental standard time data.
D. process re-engineering.
E. work sampling.
13. If the normal time to perform a task is 2 minutes and allowances for
delays, fatigue, and personal needs total 20%, then the number of
units produced in an 8-hour day should be:
A. 24.
B. 192.
C. 216.
D. 240.
E. 288.
14. Predetermined motion-time data systems differ from elemental
standard data systems in which of the following ways:
I. they provide times for basic motions, rather than job-specific
work
elements
II. they are generic instead of company or industry specific III.
III. they require more analyst time for developing a standard
A. I only
B. II only
C. III only
D. I and II only
E. I, II and III
15. The primary applications for work sampling include:

I. determining the activity percentage for workers and equipment
II. developing a performance index for workers
III. obtaining the standard time for a task
IV. calculating the rate of material waste
A. I only
B. I and II only
C. II, III and IV only
ANSWER
1A, 2C, 3A, 4E, 5A, 6A, 7E, 8D, 9D, 10E, 11E, 12D, 13B, 14E, 15D
CHAPTER 11 SUPPLEMENT LEARNING CURVES
1. Pedal Push manufactures golf carts according to customer

specifications. An order for six carts has just been received from the
Indio Golf Club. If Pedal Push estimates that the 1st golf cart will
require 80 hours of direct labor, then the total direct labor hours
needed to complete all six carts with an 80% learning curve would be
approximately:
A. 125 hours.
B. 270 hours.
C. 344 hours.
D. 384 hours.
E. 480 hours.
Use the following information for the next 2 questions:

Let-Us-Do-It Furniture Company has an order for 30 dressers for a Bed
& Breakfast. It is estimated that the first dresser will take 20 hours
and a 75% learning curve is expected.
2. If the labor rate is $20.00 per hour and the pricing policy is to charge 2
times the labor cost, what is the approximately cost of
the entire order?
A. $195
B. $4,580
C. $9,160
D. $10,594
E. $13,253
3. What is the average price per unit?

A. $6.50
B. $152.67
C. $305.33
D. $353.13
E. $441.77
4. A company must bid on a contract to build a new chemical processing

plant. Plant number 1 costs $4 million in labor and $8 million in
materials. If the firm has a learning curve of 80% for the labor and
material costs in such situations, then which of the following is the
total cost of producing the 8th plant?
A. $11.2
B. $10.56
C. $9.64
D. $4.91
E. $6.14
5. If a firm experiences a learning rate of 80% and unit number 1 took 10
hours, then how many hours will unit number 8 take?
A. 8
B. 6.4
C. 5.12
D. 4.096
E. 3.21
6. A firm has to bid on a contract to produce 16 machine tools. These

tools are produced one at a time using relatively skilled labor. To
better estimate the cost of the total contract, the firm produces 2 units
with which to estimate project costs. The costs that they experienced
are given below.
Unit No. Labor Cost Material Cost

1 $10,000 $2,000
2 8,000 2,000
Assuming that the firm has found the learning curve useful in past cost
estimating, what would you predict as the expected cost of the 16th
unit?
A. $4,915
B. $6,096
C. $7,120
D. $8,000
E. $8,400
7. A student is working similar homework problems and notes a decrease

in the amount of time it takes to complete each problem because of a
learning effect. For similar problems, she notes that problem number
one takes 20 minutes to complete, while two takes only 70% of
problem number one to complete. If she works four examples of each
problem, then how long will it take her to complete the fourth
problem?
A. 6.86
B. 8.70
C. 9.8
D. 10.2
8. The learning curve is based on which of the following assumptions?
A. The time required to produce each additional unit will decrease
at an
increasing rate.
B. The time required to produce each additional unit will decrease
at a
decreasing rate.
C. As the number of units produced doubles, the number of units
produced
decreases by a constant factor.
D. As the number of units produced doubles, the labor hours per
unit increases
by a constant factor.
E. Productivity improvement in the case of a 80% learning curve is
greater
than that of a 70% learning curve.
9. Which of the following concepts is(are) true for learning curve analysis?
A. As the number of units produced is doubled, the number of labor hours per unit
decreases by a factor equal to the Improvement Ratio.
B. Learning curve analysis cannot be applied in determining the number of machine
hours required in production.
C. The drop in required labor hours between the 100th and 101st units is more than
the drop in required labor hours between the 1000th and 1001st units.
D. None of the answers are correct.
E. A 90% learning curve results in faster productivity improvement than an 80%
learning curve.
10. Which of the following is an accurate statement for an 80% learning process?
A. The time for the second unit should be approximately 80% of the time required for
the first unit.
B. The time for the 8th unit should be approximately 64% of the time required for the
second unit.
C. The time for the 3rd unit is 80% of the time for the 2nd unit
D. Both (a) and (b) are accurate.
11. Which of the following is not a source of organizational learning or a means to improve
organizational learning?
A. Changes in the administration, equipment and product design.
B. Employees gaining experience by repeating a process.
C. Work specialization.
D. Employee training/education programs.
E. Redesigning products frequently.
ANSWERS
1C, 2C, 3C, 4E, 5C, 6B, 7C, 8B, 9C, 10A, 11E
CHAPTER 12 SUPPLY-CHAIN MANAGEMENT
1. Supply-Chain management refers to:

A. Forecasting customer requirements.
B. Managing inventory systems
C. Managing the flow of information, material, and services from
supplier to the end customer
D. Using the sales forecast to implement an aggregate plan
E. All of the above answers are true
2. The goals of supply-chain management include attempting to reduce

uncertainty and risk impacting which of the following:
A. Inventory levels
B. Customer service levels
C. Processes
D. Cycle times
E. All of the above answers are correct
3. Outsourcing is a term used to define:

A. When a firm purchases goods and services that were initially
done
within the company
B. How a company designs its products
C. The effort to use “work at home” employees who would not
otherwise be able to find employment
D. Using finished goods warehousing at the customer location to
reduce delivery time
E. Another term for companies that like to make most of their
products.
4. Purchasing Managers are involved in several common activities, which

of the following is not one of these common areas.
A. Price and delivery negotiation
B. Forecasting and strategy
C. Material flow
D. Product design and testing
E. Personnel issues
5. Companies today frequently emphasize just-in-time delivery from a

single supplier. This effort has resulted in:
A. Inconsistent quality
B. Higher cost
C. Breakdown in customer/supplier relationship
D. Savings in company resources
E. All of the above are true
ANSWERS
1E, 2E, 3A, 4D. 5D
CHAPTER 13 FORECASTING
1. Which of the following is not a component of demand in a typical time

series model?
A. Average demand for period
B. Trend
C. Seasonal influence
D. Cyclical elements
E. Alpha
2. If the importance of random data diminishes as the past becomes

more distant, the method to use for forecasting should be:
A. correlation analysis.
B. weighted moving average.
C. linear regressions.
D. simple moving average.
E. exponential smoothing.
3. A forecast including trend and seasonal effects can be obtained by

using:
A. the mean absolute deviation.
B. adaptive smoothing.
C. weighted moving average.
D. simple moving average.
E. percent of trend method.
4. A company is using single exponential smoothing. Last month they

predicted sales of 1,000 cases of a certain chemical. The alpha value
they have been using is .1. Because they sold 800 cases, they are
predicting a sale this month of:
A. 800
B. 990
C. 980
D. 1,080
5. A firm uses exponential smoothing to forecast demand. In period 10

the forecast was 100 and the actual was 90. If alpha is equal to .10,
then what is the forecast for period 11?
A. 89
B. 91
C. 90
D. 99
E. 101
6. A forecasting model yields the following forecasts as compared to the
actual.
FORECAST ACTUAL
10 7
10 11
20 23
30 35
40 42
50 56
60 66
Which of the following is the RSFE (running sum of the forecast

errors)? (Be careful of the numeric sign of your answer.)
A. -26
B. -20
C. -2.86
D. 2.86
E. 20
7. A company has computed a seasonal index for its monthly sales.

Which of the following statements about the index is NOT correct?
A. The sum of the twelve indexes numbers should be 12.
B. An index of .80 for July indicates that July sales are 20% lower
than the average monthly sales.
C. An index of 1.25 for January indicates that January sales are 25%
above the average monthly sales.
D. The index for any month must be between zero and 2.
E. The average index for the year must be equal to 1.
8. Which describes the random component of a time series?

A. The long-run general movement in a time series (e.g. sales)
B. Man-made conventions causing short-run upward and downward
patterns in activities such as sales
C. Climatic condition
D. Recurring and periodic (i.e.), possessing a regular period or
variation in a time series
E. Wars, strikes, and other highly unpredictable events
9. Which describes the cyclical component of a time series?

A. The long-run general movement in a time series (e.g. sales)
B. Man-made conventions causing short-run upward and downward
patterns in activities such as sales
C. Variations in a time series which recur and are periodic
D. Wars, floods, and other causes
E. Often caused by economic expansions and contractions
10. The most common mathematical trend equation for a time series is
called the least squares trend because it is the line which minimizes:
A. the sum of the squares of the vertical deviations from the line.
B. the sum of the deviations from the mean.
C. the sum of the squares of the deviations from the mean.
D. the sum of the vertical deviations from the trend line.
E. the sum of the deviations from the mean of the X variable.
11. A firm uses simple exponential smoothing to forecast demand for one
of its products. Last period the forecast was 90 and the actual
demand was 100. If a smoothing parameter of 0.20 is used, then their
forecast for this period would be
A. 92
B. 98
C. 100
D. 109
E. 118
12. A company forecasts the demand for its product using a trend
adjusted exponential smoothing model. The initial forecast is 300
units with a trend of 50 units. If actual demand was 325 and if alpha
= 0.30 and delta = 0.20, then the trend-adjusted forecast for the next
period would be
A. 342.5
B. 350.0
C. 287.5
D. 391.0
E. 400.0
13. Last period a firm forecasted demand of 400. Actual demand was 380.
If the MAD at the end of the last period was 25 and alpha = 0.05, then
the exponentially smoothed MAD for the next period would be
A. 24.75
B. 22.75
C. 20.00
D. 15.85
E. 1.00
14. Last period a firm forecasted demand of 750. Actual demand was 775.
If the MAD at the end of last period was 35 and alpha equals 0.15,
then the exponentially smoothed MAD for the next period would be
A. 26.00
B. 33.50
C. 38.75
D. 45.50
E. 56.25
15. A company uses a trend enhanced exponential smoothing model to

predict demand. In period 5 the forecast and trend values were 500
and 50, respectively. If alpha equals 0.20 and delta equal 0.10, then
the forecast including trend for period 6, given actual demand in
period 5 of 490, would be
A. 538.0
B. 582.0
C. 586.8
D. 589.7
E. 596.2
ANSWERS
1E, 2E, 3E, 4C, 5D, 6E, 7D, 8E, 9E, 10A, 11A, 12D, 13A, 14B, 15C
CHAPTER 14 AGGREGATE PLANNING
1. On an aggregate basis, the objectives of production planning are to

determine:
A. inventory sizes
B. total work force
C. total production
D. total cost
Use the following information for the next 3 questions:

Inventory Holding Cost is $10/unit/month on ending inventory levels.
Beginning inventory of Month 1 is 100 units. Hiring (Firing) Cost is
$100 ($200) per worker. Each worker produces 10 units per month.
There are 20 work persons on the payroll at the end of month 0.
Month 1 2 3 4 5 6
Demand 300 300 400 300 300 400
2. Which of the following is the minimum level production rate which will
meet demand for the next six months without stockouts (backorders)?
A. 300
B. 317
C. 333
D. 400
E. 500
3. If a level production rate of 600 is used, then which of the following is

the maximum ending inventory level experienced during any month of
the six months?
A. 1,500
B. 1,600
C. 1,700
D. 1,800
E. 1,900
4. Which of the following is the total cost of a chase (i.e. a hire and fire
only) production plan?
A. 1,000
B. 2,000
C. 3,000
D. 4,000
E. 5,000
Use the following information to solve the next 3 problems:
Inventory Holding Cost is $10/unit/month based on ending inventory
levels. Beginning inventory of Month 1 is 100 units. Hiring (Firing)
Cost is $100 (200) per worker. Each worker produces 10 units per
month. There are 20 work persons on the payroll at the end of month
0.
Month 1 2 3 4 5 6
Demand 300 300 300 300 400 500
A firm must plan production for the next six months.
5. From the information given above, which of the following is the

minimum level production rate which will meet demand for the next
six months without having any stockouts (backorders)?
A. 300
B. 316
C. 333
D. 400
E. 500
6. From the information given above, if a level production rate of 600 is

used, then which of the following is the maximum ending inventory
level experienced during the six months?
A. 1,500
B. 1,600
C. 1,700
D. 1,800
E. 1,900
7. From the information given above, what is the total cost of a chase
(Hire and Fire only) Production Plan?
A. 1,000
B. 2,
. resource planning.
10. Hierarchical production planning (HPP) tailors the planning structure to

the organization so that:
A. lower levels of the organization deal with long-range planning
B. higher levels of management use aggregate data for long-range
planning and
lower levels of the organization use detailed data for short-range
planning.
C. higher levels of management use detailed data to make
shop-floor and
short-range planning decisions while lower levels of the organization
make
long-range plans using aggregate data.
D. higher levels of the organization would make decisions regarding
lot sizes
and machine center scheduling.
11. Which of the following are primary means for accomplishing demand
management?
I. overtime
II. pricing and promotion
III. subcontracting
IV. complementary products
A. I only
B. II only
C. I and II only
D. IV only
12. The production planning strategy which varies output by changing the
number of hours worked using flexible schedules or overtime is known
as a:
A. chase strategy.
B. stable workforce - variable work hours strategy.
C. level strategy.
D. accurate response strategy.
13. Which of the following are advantages of a level production schedule?

A. the system can be planned to minimize inventory and work in
process
B. low amounts of work in process means product modifications are
up-to-date
C. flows throughout the production system are smooth
D. items purchased from vendors can be delivered as needed, often
directly to the production line
E. all of the above
Use the following information to solve the next 3 questions:
The Jacava Factory is developing a production plan for the next four
quarters. The demand forecast is as follows:
Quarter 1 2 3 4
Demand 8000 12000 14000 11000
14. If the Jacava Factory employs a chase demand strategy, varying the
number of workers per quarter on regular time, then the number of
employees required in the 2nd quarter would be:
A. 90
B. 96
C. 98
D. 358
E. 360
15. If the company would like to maintain a stable workforce working at a

constant output rate, using regular time production only, then the
number of units needed to be produced each quarter would be:
A. 346
B. 360
C. 11,187.5
D. 11,437.5
E. 15,187.5
ANSWERS
1E, 2B, 3C, 4E, 5C, 6B, 7C, 8A, 9C, 10B, 11D, 12B, 13E, 14B, 15C
CHAPTER 15 INVENTORY SYSTEMS FOR INDEPENDENT
DEMAND
1. Costs that refer to the managerial and clerical costs entailed in

preparing the purchase or production order are known as:
A. ordering costs.
B. header costs.
C. line costs.
D. all of the above.
2. What question must be considered in any inventory system?

A. What is to be ordered?
B. How much should be ordered?
C. When should the order be placed?
D. All of the above.
E. Only b and c of the above.
3. Most inventory decisions are made on the basis of:

A. cost minimization.
B. profit maximization.
C. optimum influence on demand.
D. minimizing setup times.
E. minimizing lead time.
Use the following information to solve the next 2 questions:

A retailer assembles and sells compact video disc players. It desires to
meet customer demand for the product. These players will be
assembled and sold only once because technology is moving so fast.
Below find a frequency distribution of forecasted demand. Each disc
player sells for $200 and costs $100 to produce. If too many disc
players are produced, then they will have to be deeply discounted and
sold for $50.
Quantity P(Demand-Quantity)
2500 .25
3000 .20
3500 .20
4000 .15
4500 .10
5000 .10
4. What is the profit maximizing number of disc players to produce?

A. 3,000
B. 3,500
C. 4,000
D. 4,500
E. 5,000
5. What is the probability of selling the 4000th disc player?
A. .10
B. .20
C. .30
D. .35
E. .40
Use the following information to answer the next 2 questions.

The mean weekly demand rate for a product is forecasted to be 50.
The standard deviation per week of demand (actually the standard
deviation of the forecast errors) is 4. The leadtime for the item is 4
weeks. The firm places an order for 100 each time the reorder point is
reached.
6. The expected demand during lead time is which of the following?

A. 16
B. 64
C. 128
D. 160
E. 200
7. What should the reorder point be set at so that 99% of the units
demanded are in stock. (Only 1% of demand is not met directly from
stock)? (This problem requires an E(z) table and formula).
A. 148.64
B. 168.64
C. 212.80
D. 218.64
E. 206.40
8. A firm can participate in the quantity discount illustrated below when

purchasing a product. It costs $20 to place an order each time. The
holding cost rate is .20. The annual demand for the product is 10,000
units. Leadtime for the product is 1 month.
Quantity Cost
<300 $12
300-520 $10
>520 $9
What is the minimum total cost that this firm can purchase and
inventory this item while facing a quantity discount?
A. 90,468
B. 90,853
C. 90,894
D. 100,000
E. 100,894
Use the following information the work the next 4 questions.

A firm desires to control inventory levels so as to minimize the sum of
holding and order costs. It costs the firm $20 to place an order. The
firm estimates its inventory carrying costs at $2/unit/year. Weekly
demand is 100 units and there are 50 weeks in the work year. The
item costs $10 per unit. Leadtime for the product is 5 weeks.
9. What quantity of items should the firm order each time so as to

minimize total inventory costs?
A. 32
B. 45
C. 145
D. 224
E. 316
10. If 200 are ordered each time, then what will be the total annual
holding cost?
A. 50
B. 100
C. 200
D. 250
E. 500
11. If 1000 are ordered each time, then what will be the total annual order
cost?
A. 50
B. 100
C. 200
D. 250
E. 500
12. In order to not run out of stock before the receipt of a new order, at
what inventory level should the firm place an order? That is, what is
the reorder point equal to?
A. 40
B. 100
C. 200
D. 400
E. 500
13. Printers are stocked by a wholesaler in anticipation of demand. An

accurate forecasting model exists for predicting the demand of
printers. The daily demand for printers is estimated to be 50 with a
standard deviation of 5 units per day. There are 250 working days in
the wholesaler's year. It cost the wholesaler $200 to order printers
and each printer cost $40 to hold for a year. The lead time for printers
is 6 working days from a New York distributor. How many orders per
year will the firm place if the EOQ is 250?
A. 10
B. 12
C. 20
D. 36
E. 50
14. Printers are stocked by a wholesaler in anticipation of demand. An
accurate forecasting model exists for predicting the demand of
printers. What is the reorder point for printers if a 99% service level
(i.e. 99% of units in stock when demanded) is desired and the order
quantity of printers is 400 units, the annual demand 3,000 units, and
the mean and standard deviation of demand during lead time are 400
and 30 respectively? (This problem requires a formula and E(z) table).
A. 424
B. 436
C. 460
D. 462
E. 477
Use the following information to solve the next 4 question.

A firm distributed items through a centralized warehouse. Clock Radio
inventory levels have been excessive lately. It has been suggested
that statistical inventory control using a simple reorder point system
would be useful to better control its inventory. Annual demand for the
radio is 10,400 units, holding cost is $3 million, and ordering cost is
$50. Demand for the product is nonseasonal with a mean of 200 units
per week with a standard deviation of 40 units. The lead time for the
item is a constant of 3 weeks.
15. What is the economic order quantity using the simple EOQ model?
A. 35
B. 82
C. 416
D. 589
E. 1,248
16. If the safety stock of radios was set to zero, then what would the
reorder point equal?
A. 200
B. 300
C. 400
D. 500
E. 600
17. What would the average inventory equal if the safety stock equaled 50
and the order quantity was 1,000 units?
A. 500
B. 525
C. 550
D. 1,000
E. 1,025
18. What is the standard deviation of demand during lead time?

A. 19.0
B. 40.8
C. 69.3
D. 120.0
E. 240.0
19. Given that the standard deviation of demand during leadtime is 40

and the EOQ is 1,000 for a product, what level of safety stock will
achieve a 99% fill rate (i.e. 99% of the products will be in stock when
demanded)? (This problem needs a formula table and E(z) table).
A. 12
B. 16
C. 40
D. 93
E. 103
20. Companies hold a supply of inventory for all of the following reasons
EXCEPT to
A. meet variation in product demand
B. increase production change costs
C. allow production scheduling flexibility
D. experience purchase-order economies of scale
E. maintain independence of operations
21. Which of the following costs must be considered in inventory decisions

A. carrying costs
B. setup costs
C. shortage costs
D. ordering costs
E. all of the above
22. Which of the following statements about differences between

fixed-order quantity and fixed-time period inventory systems is NOT
true?
A. fixed-order quantity systems favor more expensive items
B. fixed-time period systems require perpetual record keeping
C. fixed-time period systems have larger average inventory
D. fixed-order quantity systems require more time to maintain
E. fixed-time period systems have variable order quantities
23. Daily demand for a product is 25 units with a standard deviation of 6

units. The review period is 20 days and lead time is 10 days.
Management has set a policy of satisfying 97 percent of demand from
items in stock. At the beginning of this review period there are 50
units in inventory. The number of units the company should order
would most nearly be: (This problem requires an E(z) table.)
A. 1,000
B. 800
C. 745
D. 696
E. 500
ANSWERS
1D, 2E, 3A, 4C, 5D, 6E, 7E, 8B, 9E, 10B, 11B, 12E, 13E, 14A, 15D,
16E, 17C, 18C, 19B, 20B, 21E, 22B, 23D
CHAPTER 16 INVENTORY SYSTEMS FOR DEPENDENT DEMAND
MRP-TYPE SYSTEMS
1. Product explosion refers to:

A. calculation of the required materials based on final assembly
needs.
B. system nervousness.
C. dynamic characteristics of MRP.
D. system sensitivity.
E. creating a time-phased schedule.
2. "Systems nervousness" in an MRP system refers to the oscillations

caused by:
A. irritable operators.
B. too frequent revision.
C. suboptimal inventory levels.
D. user evaluation committees.
E. the high cost of computer processing time.
Use the following information the solve the next 3 questions.

A #2 pencil (P) is made from a wood subassembly (WS), a band (B) to
hold the eraser on and an eraser (E). The wood subassembly is made
from 2 wood halves (WH) and a piece of lead (L), the wood halves are
made from wood blanks (WB). (For this question we will ignore the
need for glue and paint.) The lead times for each of these are given
below.
Lead Time (Weeks)
P 2
WS 4
B 6
E 2
WH 2
L 2
WB 1
3. If nothing is in inventory (that is, all on hand quantities are equal to

zero), and it is now the beginning of period 20, then when is the
earliest that we can promise to ship No. 2 pencils?
A. 26
B. 27
C. 29
D. 31
E. 32
4. Which of the above items is purchased?
I. WS, B, E
II. WH, L
III. B, E
IV. WB, L
A. I only
B. II only
C. III only
D. II and II only
E. III and IV only
5. The Master Production Schedule for pencils should have at minimum

how many time periods in it?
A. 7
B. 8
C. 10
D. 12
E. 13
6. All of the following are essential computational procedures of MRP

except:
A. Planned order release of component equals gross requirement of
parent
B. Netting out on hand quantities
C. Time phasing requirements
D. Offsetting for lead times
E. Level-by-level explosion
7. Which one of the following is not true about the Materials

Requirements Plan?
A. It plans production and purchase orders for materials.
B. Its main input is the Master Production Schedule.
C. It is an output of the Capacity Requirements Plan.
D. It plans the priority of materials.
E. It receives input from the Bill of Materials.
8. MRP systems are:

A. appropriate for all end items in the product line.
B. intended to be used for independent demand items.
C. intended to reduce inventory requirements, production lead
times,
and delivery times to customers.
D. intended to determine an appropriate master production
schedule.
E. substitutes for fixed order point/order quantity systems.
9. Product A is made from two B parts and one C part. Part B is made
using one D part and Part C is made using 2 D parts. If 50 units of
Product A are needed, then the number of units of D required would
be:
A. 50
B. 100
C. 200
D. 250
E. 300
10. The time-phased plan specifying when and how many end items are to
be built is known as the:
A. aggregate production plan.
B. master production schedule.
C. bill of materials file.
D. item master file.
E. planned order releases.
11. The main purposes of a basic MRP system include:

I. controlling inventory
II. assigning operating priorities
III. planning capacity loads
A. I only
B. II only
C. I and II only
D. I and III only
E. I, II and III
12. The two main sources of end item product demand which become
inputs to the MPS are:
A. forecast demand and planned order releases.
B. planned order releases and known customers.
C. forecast demand and replacement parts.
D. known customers and forecast demand.
E. known customers and safety stock.
13. The main inputs to an MRP program include the:

I. Bill of Materials file
II. Master Production Schedule
III. Planned Order Releases
IV. Inventory Records file
A. I and II only
B. I, II and III only
C. I, II and IV only
14. Retracing a material requirement upward in the product structure,

identifying the parent item that created the demand is referred to as:
A. pegging.
B. low-level coding.
C. exploding.
D. regeneration.
E. lot sizing.
15. Which of the following are lot sizing techniques?

I. lot-for-lot
II. economic order quantity
III. least total cost
IV. least unit cost
A. I only
B. I and II only
C. II and III only
ANSWERS
1A, 2B, 3C, 4D, 5C, 6A, 7C, 8C, 9C, 10B, 11E, 12D, 13C, 14A, 15E
CHAPTER 17 OPERATIONS SCHEDULING
1. A Gantt chart:
A. represents an important event in the completion of a project.
B. relates interdependent activities to their completion time.
C. uses footstones and inchstones to represent events of lesser
importance.
D. is used to schedule independent activities.
2. Four patients arrive at a non-emergency health care clinic at the same

time. None has an appointment, also, first-come, first-serve is not the
priority rule used by the clinic. All patients are of equal importance,
therefore, which of the following is the order which will minimized the
number and wait times of patients in the clinic?
Patient Process Time by Doctor

1 14
2 13
3 18
4 10
5 15
A. 4 2 3 1 5
B. 2 5 1 4 3
C. 2 4 1 5 3
D. 2 5 1 3 4
E. 4 2 1 5 3
3. Johnson's Method is associated with which of the following?

A. Balances the utilization of capacity to achieve equal time supply.
B. Effective in job shop scheduling with valid and updated due
dates
and process times.
C. Effective in scheduling jobs of equal importance.
D. Minimizes the total times for all jobs through two machines.
E. Two jobs through n machines.
4. The Shortest Processing Time Rule is associated with which of the

following?
A. Balances the utilization of capacity to achieve equal time supply.
B. Effective in job shop scheduling with valid and updated due
dates
and process times.
C. Effective in scheduling jobs of equal importance.
D. Minimizes the total times for all jobs through two machines.
E. Two jobs through n machines.
Use the following information to solve the next 2 questions.
The MTA of K.C. is scheduling the repair of buses for next month.
Currently, there are five buses needing repair (all are similar buses).
Bus V W X Y Z
Repair time in Days 5 8 3 6 7
5. The optimum sequence of buses to repair is which of the following?

A. VWXYZ
B. XVYZW
C. WZYVX
D. XZVWY
E. None of the above answers is correct
6. The minimum mean flow time of the buses in the repair shop is which
of the following?
A. 5.8 days
B. 15 days
C. 29 days
D. 75 days

Jobs A, B, C, D, and E must go through processes I and II in that
sequence (i.e., process I first, then process II). Determine the optimal
sequence to schedule the jobs to minimize the total required time.
Required Processing Required Processing

Job Time on I Time on II
A 4 5
B 16 14
C 8 7
D 12 11
E 3 9
7. The optimum sequence of jobs is which of the following?

A. E-A-C-D-B
B. B-D-C-A-E
C. E-A-B-D-C
D. A-C-E-D-B
E. E-A-C-B-D
8. Job A will be completed at what time?

A. 17
B. 12
C. 9
D. 8
E. 6
TWA is scheduling the repair of five identical 767 aircraft next month.
The time to repair each of the aircraft is given below:
Aircraft Repair Time (Days)

1 6
2 7
3 2
4 5
5 8
9. The optimum sequence in repairing these aircraft is which of the

following?
A. 1-2-3-4-5
B. 5-2-3-1-4
C. 3-4-1-2-5
D. 3-5-4-1-2
10. If the sequence of repair were 1-2-3-4-5, what would the mean job flow
time be for the aircraft?
A. 14.5
B. 16.4
C. 28.6
D. 82.8
11. If the sequence of repair were 1-2-3-4-5, what would the mean number
of aircrafts in the system equal?
A. 9.2
B. 5.8
C. 3.0
D. 2.9
E. 2.5
12. When two or more jobs must be processed on two machines in a

common sequence, flow time will be minimized if jobs are scheduled
using:
A. Johnson's Rule.
B. the shortest operating time rule.
C. the first-come, first-served rule.
D. the slack time remaining rule.
E. the critical ratio.
13. The basic tools of shop-floor control include:
I. the daily dispatch list
II. optimized production technology
III. status and exception reports
IV. the input/output control report
A. I only
B. I and II only
14. Tex Dodge, an independent tax preparer, currently has five tax returns
waiting to be prepared. Tex first prepares a working copy of the tax
return which is then given to his secretary to be typed and proofed.
Based on past experience with his clients, Tex estimates that the time
(in hours) required to prepare the working copy and type and proof the
final forms are as follows:
Client Tax Preparation Time Typing & Proofing Time

A 5 6
B 4 1
C 2 0.5
D 3 2
E 8 7
How quickly can Tex and his secretary have all five clients tax returns
prepared and typed and proofed?
A. 7 hours
B. 16.5 hours
C. 22 hours
D. 23.5 hours
E. 38.5 hours
15. For the assignment method to be an appropriate solution procedure,

problems must have which of the following characteristics?
I. n "things" to be distributed to n "destinations."
II. each "thing" must be assigned to only one "destination." III.
III. only one objective criterion is used.
A. I only
B. II only
C. I and II only
D. III only
E. I, II and III
ANSWERS
1B, 2E, 3D, 4C, 5B, 6B, 7C, 8A, 9C, 10B, 11D, 12A, 13C, 14D, 15E
CHAPTER 17 SUPPLEMENT SIMULATION
1. The key factor in the problem definition phase of a simulation study is:
A. specification of variables and parameters.
B. to study the objectives of the system.
C. considering variables which affect achievement of the
objectives.
D. both a and c.
E. both b and c.
2. In a simulation model, the method of time advance which ignores time

intervals when nothing occurs is a:
A. fixed time increment.
B. continuous time increment.
C. variable time increment.
D. uniform clock time interval.
E. None of the above.
3. The first step in constructing a simulation model is:

A. determining time incrementing procedure.
B. specifying values of variables and parameters.
C. specifying probability distributions.
D. determining starting conditions.
4. Which of the following random number intervals is most appropriate

for simulating the occurrence of a 1 on the toss of a 5-sided die
numbered from 1 to 5?
A. 01 - 19
B. 00 - 20
C. 80 - 00
D. 01 - 20
E. 00 - 19
5. Which of the following are disadvantages of simulation?

I. Models are relatively costly to use.
II. Models are relatively time consuming to construct.
III. Requires knowledge of sophisticated statistics.
IV. Requires significant programming skills.
A. I and II only
B. I and IV only
C. II and III only
D. II and IV only
E. III and IV only
6. When using a random number table to simulate a probabilistic

process, which of the following should be done?
I. Randomly select all numbers from the table.
II. Systematically select numbers from the table.
III. Randomly select a starting point in the selection process.
IV. Use no judgment in selecting numbers from the table.
A. I and II only
B. II and III only
C. II and IV only
7. Advantages of simulation include all of the following except:

A. Model development leads to a better understanding of the real
system.
B. Even though an optimal answer will not result, simulation
models
guarantee that a good answer will.
C. While models are powerful, they often can be used in
experimentation by executives.
D. Simulation can be used to analyze the dynamics or transients of
a
system.
E. Simulation provides a more realistic replication of a system than
a mathematical analysis.
8. Disadvantages of simulation include all of the following except:

A. the output may not be provable.
B. the answer may be numerically less accurate than other
mathematical analysis.
C. there is no standardized approach to simulation.
D. simulation models are difficult to understand.
E. significant amounts of computer time may be necessary to
complete
a simulation.
9. All of the following are true concerning simulation except:

A. It lacks a standard mathematical formulation.
B. It facilitates "what if" analysis.
C. It can model mathematically and logically complex systems
better
than other techniques.
D. It is not a relatively new concept of the computer age.
E. Simulation models are not as good as other methods in
modeling the
dynamics of system.
10. Simulation:
A. should always be used before a mathematical model.
B. has a substantial theoretical background and should not be
considered
an art.
C. cannot be used in studying waiting line simulation.
D. is a special case of the simplex method.
E. can model very complex systems better than other methods.
11. The first step in constructing a simulation model is the:

A. determination of parameters and variables.
B. specification of decision rules.
C. specification of probability distributions.
D. specification of time incrementing procedures.
E. determination of starting values and run length.
12. The sets of conditions under which the behavior of the simulation
model is observed are known as:
A. probability distributions.
B. decision rules.
C. run lengths.
D. system parameters.
E. variable time increments.
13. Probability distributions derived from observing the relative

frequencies of an event are referred to as:
A. mathematical distributions.
B. skewed distributions.
C. standard normal distributions.
D. empirical distributions.
E. random distributions.
14. Which of the following approaches can be used to overcome the bias
due to initial starting values?
I. discarding data from the early part of the simulation
II. selecting initial values that eliminate bias
III. selecting initial values that reduce the length of the warm-up
period
A. I only
B. II only
C. III only
D. I and II only
E. I, II and III
15. All of the following are advantages of simulation EXCEPT:

A. time compression
B. analysis of transient conditions
C. lack of a standardized approach
D. better understanding of the system being modeled
E. does not disrupt the real system
ANSWERS
1E, 2C, 3E, 4E, 5A, 6D, 7B, 8D, 9E, 10E, 11A, 12B, 13D, 14E, 15C
CHAPTER 19 BUSINESS PROCESS RE-ENGINEERING
1. Concurrent engineering exemplifies which of the following business re-

engineering principles?
A. linking and coordinating parallel activities
B. compressing vertical processes
C. compressing linear processes
D. avoiding repetition
2. Organizations are now addressing the need to remain or become

competitive through dramatic improvements in which of the following?
I. quality
II. costs
III. time-to-market
IV. customer service
A. I only
B. II only
C. II and III only
3. Re-engineering can most appropriately be viewed as:

A. automating processes.
B. rethinking and redesign of business processes.
C. reorganizing or flattening organizations.
D. total quality management.
4. According to the authors, the first step in a disciplined approach for

process re-engineering is:
A. identify the process for re-engineering.
B. understand the current process.
C. state a case for action.
D. create a new process design.
5. Which of the following process redesign techniques is required in the

creative application of information technology to re-engineering
processes?
A. inductive thinking
B. creative process redesign
C. process benchmarking
D. simulation
6. Which of the following techniques for redesigning processes is most
useful for visualizing and evaluating redesigned processes?
A. inductive thinking
B. process benchmarking
C. creative process redesign
D. simulation
7. Which of the following approaches seeks to combine the participative

nature of continuous improvement activities with the top-down
approach of process re-engineering?
A. improvement through innovation
B. limiting the scope of work design
C. creating a portfolio of process change programs
D. sequencing change initiatives
8. Which of the following are process redesign techniques and tools?

I. inductive thinking
II. creative process redesign
III. process benchmarking
IV. simulation
A. I only
B. II only
C. III only
9. Which of the following are approaches to integrating process

improvement and re-engineering activities?
I. process benchmarking
II. sequencing change initiatives
III. creating a portfolio of process change programs
IV. limiting the scope of work design
A. I only
B. II only
10. Which integrating process improvement and re-engineering approach
combines short-term improvement methods and long-term re-
engineering in the same effort?
A. sequencing change initiative
B. undertaking improvement through innovation
C. creating a portfolio of process change programs
D. limiting the scope of work design
E. none of the above answers is correct
ANSWERS
1A, 2E, 3B, 4C, 5A, 6D, 7B, 8E, 9D, 10B
CHAPTER 20 SYNCHRONOUS MANUFACTURING AND THEORY
OF
CONSTRAINTS
1. Which of the following statements is true concerning JIT?

A. JIT implementation involves a process of trial and error.
B. JIT is effective if its goal in implementation is to surpass the
Japanese in the manufacturing arenas.
C. JIT is implemented through a consistent smooth process.
D. JIT implementation is a relatively short process.
E. All of the above answers is correct
2. Goldratt argues that productivity should be measured in terms of:

A. labor output per hours.
B. operational goals.
C. material costs.
D. reduced fixed costs.
E. quality improvement.
3. Which of the following is not a component of production cycle time?

A. Set up time
B. Process time
C. Queue time
D. Wait time
E. External time
4. For a part going through a bottleneck, which of the following is usually

the greatest?
A. Set up time
B. Process time
C. Queue time
D. Wait time
E. External time
5. Which of the following are acceptable ways of finding bottlenecks?

I. Capacity resource profile
II. Observe system operation
III. Interview supervisors
IV. Interview workers
A. I only
B. I and II only
C. II, III, and IV only
D. I, II, III, IV
E. II, III, and IV
6. In a "V" plant, management will most likely focus problem solving skills
on:
A. control.
B. cost.
C. quality.
D. due date performance.
E. personnel issues.
7. In an "A" plant, management will most likely focus problem solving

skills on:
A. control.
B. cost.
C. quality.
8. In a "T" plant, management will most likely focus problem solving skills
on:
A. control.
B. cost.
C. quality.
9. Rushing to meet end of period quotas is often referred to as:

A. synchronous production.
B. the hockey-stick phenomenon.
C. level production.
D. the bell curve syndrome.
E. optimized production technology.
10. A resource whose utilization is close to capacity and could therefore be

a bottleneck if not scheduled carefully is known as a:
A. bottleneck resource.
B. non-bottleneck resource.
C. capacity-constrained resource.
D. financial resource.
E. dependent event resource.
11. The time that a part waits for a resource while the resource is busy
with something else is called the:
A. setup time.
B. process time.
C. queue time.
D. wait time.
E. idle time.
12. Which of the following are relevant to determining the transfer batch
size?
A. production lead times
B. benefits of reducing inventory
C. costs of material movement
D. both a and c
E. a, b and c
13. Which of the following describe differences between material

requirements planning (MRP) and synchronous manufacturing?
A. MRP uses backward scheduling while synchronous
manufacturing uses
forward scheduling.
B. unlike MRP, synchronous manufacturing can vary process batch
and
transfer batch sizes in an attempt to reduce lead times
C. unlike synchronous manufacturing, MRP can vary process batch
and
transfer batch sizes in an attempt to reduce work in process
inventories
D. both a and b
E. both a and c
14. A plant that transforms a few raw materials through a relatively

standard process into a larger number of end products is an example
of a:
A. V plant.
B. B plant.
C. A plant.
D. T plant.
E. U plant.
15. Areas of management concern in an A plant include:

A. low equipment utilization.
B. high unplanned overtime.
C. parts shortages.
D. lack of control of the production process.
ANSWERS
1A, 2B, 3E, 4C, 5D, 6B, 7A, 8D, 9B, 10C, 11C, 12E, 13D, 14A, 15E

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CHAPTER 1.

INTRODUCTION TO THE FIELD

1. F.W. Taylor believed that:

2. The operations management transformation process in a hospital is

3. He (she) developed the use of standardization in large scale mass

4. This individual documented the economic benefits from work

5. This individual was greatly responsible for the scientific management

7. Operations research management has its roots in which of the

8. Which of the following individuals made contributions to the field of

9. Management decisions within the operations function can be divided

12. According to the book's authors, operations resources consist of the

1. As identified by C. Wickham Skinner and other researchers,

A. I are basic operations strategies

2. According to the decision making framework presented in the Chase,

3. An Operations Strategy can include many issues and choices. Which

4. According to the decision making framework presented in the Chase,

6. Productivity increases when:

7. Which of the following factories is the most productive?

A. Factory V1, which uses 43 units of input to produce 38 units of

8. Which of the following divisions of a firm is the most productive?

9. According to the MIT commission on productivity, all of the following

10. Which of the following measures is a total productivity measure?

11. Speed of delivery as a major factor in determining the success of a

JAN FEB MAR APR

Units Produced 2300 1800 2800 3000

Find the average monthly productivity (units per hour).

A. Between 2.5 and 6.9

1. All of the following are advantages of the pure project organizational

2. Which of the following is NOT an advantage of the matrix project

3. Which of the following factors are of concern in project management?

4. For critical path scheduling techniques to be most applicable, the jobs

5. The early finish time equals:

8. Which of the following is a major disadvantage of the Matrix method of

9. The early finish time for an activity equals:

USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT 2

1. An assembly drawing does which of the following?

2.. An assembly chart does which of the following?

3. An operations or routing sheet does which of the following?

4. A flow process chart does which of the following?

A. II and III only

6. Which of the following are important issues in linking product design

7. The production of small batches of a large quantities of different

8. The type of equipment, tooling, and operations required to complete a

10. Which of the following types of processes will be used to produce

11. Which of the following types of processes will be used to produce

1. According to the authors, which of the following terms refer to fully

A. I, II, and IV only

4. Automated MP&C Systems are:

5. Which of the following is NOT a task performed by robots?

6. Which of the following is NOT identified by the authors as a benefit of

7. XYZ Techno Systems produces a computer chip utilizing a process with

8. CIM improves which of the following strategic dimensions of

10. Which of the following are benefits of automated materials handling

11. New technologies can be used to achieve which of the following:

12. Technologies such as electronic mail, teleconferencing, voice mail and

14. Which of the following new information technologies have been

1. Service systems with high customer contact:

2. Which of the following most closely relates to a permeable service

3. Which of the following most closely relates to a reactive system?

5. The customer contact approach holds that:

7. High contact services are which of the following?

8. Which of the following individual(s) is(are) associated with the

9. Which of the following individual(s) is(are) associated with the