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OPS 571 Final Exam Study Guide FULL 270 Question Database

OPS 571 Final Exam Study Guide FULL 270 Question Database


1) ________ is when the activities in the stage must stop because there is no place to deposit the item just completed.
A. None of these answers
B. Starving
C. Blocking
D. Buffering

2) Which of the following is true about make-to-stock processes?
A. Make-to-stock processes can be controlled based on the actual or anticipated amount of finished goods
B. Make-to-stock process is used when demand is seasonal and the firm does not have enough
C. Services by their very nature often use make-to-stock processes.
D. A and B

3) According to your text, the most common process metric is:
A. Throughput time
B. Utilization
C. Efficiency
D. Productivity

4) The type of processing structure that is used for producing discrete products at higher volume is:
A. Project
B. Assembly line
C. Batch
D. Job Shop

5) The best process flow structure to use for making automobiles is?
A. Assembly line
B. Group technology cell
C. Batch Shop
D. Job Shop

6) The major decision variables in equipment selection are:
A. Flexibility
B. Labor requirements
C. Manufacturer
D. Both A and B

7) In which phase of new-product design process are considerations to target market, desired level of performance, investment requirements and financial impact made:
A. pilot manufacturing phase
B. preliminary process design
C. detailed engineering
D. concept development and product planning

8) Which of the following statements is true about value analysis/value engineering (VA/VE)?
A. The purpose of VA/VE is to simplify products and processes.
B. The objective of VA/VE is to achieve equivalent or better performance at a lower cost.
C. VA is performed before the production stage, while VE deals with products already in production.
D. both A and B

9) Quality Function Deployment
A. is a tool for translating customer requirements into concrete operating and engineering goals.
B. facilitates inter-functional cooperation between marketing, engineering, and manufacturing.
C. provides a better understanding and focus on process characteristics that require improvements.
D. A and B

10) Which of the following is not a dimension of design quality?
A. Customization
B. Serviceability
C. Durability
D. Features

11) The category given the maximum point value in the Baldrige award is:
A. Process management
B. Business results
C. Customer and market focus
D. Strategic planning

12) Testing is an example of:
A. External failure costs
B. Internal failure costs
C. Prevention costs
D. Appraisal costs

13) Which of the following is not an assumption of the basic economic-order quantity model?
A. quantity discounts are available
B. ordering or setup costs are constant
C. lead time is constant
D. annual demand is constant and known

14) Counting items to ensure an order is correct, is an example of:
A. stockout cost
B. carrying cost
C. ordering cost
D. Setup cost

15) Independent demand is:
A. inventory that is independent of any known rules of demand and supply
B. demand that is related to the demand for another item
C. demand determined by the marketplace that requires forecasting
D. inventory whose demand comes from independent suppliers

16) A _________ approach actually schedules in detail each resource using the setup and runtime required for each order.
A. Finite loading
B. Forward scheduling
C. Backward scheduling
D. Infinite loading

17) The assignment method is appropriate in solving problems that have the following characteristics:
A. There are ‘n’ things to be distributed to ‘n’ destinations
B. Though each destination may handle all the things, the final assignment has each thing assigned to one and only one destination
C. Only one criterion should be used (minimum cost, maximum profit, for example)
D. A and C

18) Which of the following is not a principle of work-center scheduling?
A. Reschedule every day
B. Schedule jobs as strings, with process steps back to back
C. Obtain feedback each day on the jobs that are completed at each work center
D. Once started, a job should not be interrupted

19) Which of the following according to Goldratt is not a component of production cycle time?
A. Process time
B. Wait time
C. Maintenance time
D. Setup time

20) According to Goldratt and Fox, a useful performance measure to treat inventory is ______.
A. Current ratio
B. Quick ratio
C. Dollar days
D. Inventory turnover

21) Goldratt’s rule of production scheduling include all but:
A. Utilization and activation of a resource is not the same thing
B. An hour saved at a non-bottleneck is a mirage
C. A process batch should be fixed both along its route and in time
D. Do not balance the capacity – balance the flow

22) Which of the following would not be considered in deciding how far to minimum-cost schedule (crash) a project?
A. Incentives for early completion
B. Indirect project costs (e.g. interest on a construction loan)
C. The normal duration times of tasks not on a critical path
D. Project overrun penalties

23) The advantages of pure project include all but:
A. Team pride, motivation, and commitments are high.
B. Decisions are made quickly.
C. A team member can work on several projects.
D. The project manager has full authority over the project.

24) The advantage(s) of the network planning models over the Gantt chart is (are) that:
A. they are easy to use and quite widely understood
B. the precedence relationships in network scheduling are explicitly shown
C. they are less costly to use
D. both A and B

25) The idea of the Value Density calculation is:
A. Matching the weight of the product with an appropriate carrier
B. Determining how a product should be shipped considering its weight and value
C. Finding the minimum cost carrier
D. Finding a carrier that can handle the weight

26) According to Hau Lee, which of the following types of products need to be delivered with efficient supply-chains?
A. Innovative products
B. Grocery products
C. High technology products
D. Custom products

27) Supply-chain response relates to the following:
A. How quickly a customer order can be filled
B. How quickly a company can react to a new competing product
C. How inexpensive the product is
D. A and B

28) Which of the following statements is not true about capacity management in operations?
A. An operations management view also emphasizes the time dimension of capacity.
B. Capacity planning itself has different meaning to individuals at different levels within the operations management hierarchy.
C. The definition of capacity, in an operations management context, makes a clear distinction between efficient and inefficient use of capacity.
D. When looking at capacity, operations managers need to look at both resource input and product outputs.

29) The best operating level is:
A. the level of capacity for which average unit cost is minimized
B. maximum capacity
C. the level of capacity for which total cost is minimized
D. the maximum point of the cost curve

30) Capacity utilization rate can be computed as:
A. Capacity used x best operating level
B. Capacity used / best operating level
C. Capacity used + best operating level
D. Capacity used – best operating level

31) Which of the following is not an element of JIT?
A. quickly changing schedule
B. Multifunction worker
C. kanan pull system
D. small-lot production

32) With regards to working with suppliers, lean systems typically require:
A. buyer inspection of goods and materials
B. multiple sources from which to purchase
C. long-term relationships and commitments
D. delivery of large lots at frequent intervals

33) Which of the following is NOT one of the more successful applications of lean concepts in services?
A. Introduction of demand-push scheduling
B. Upgrade quality
C. Upgrade housekeeping
D. Organize problem-solving groups

34) Which of the following would not be classified as a component of demand?
A. Causal variation
B. Cycle
C. Seasonality
D. Trend

35) Which of the following statements are true about time-series forecasting?
A. Time series methods are useful for long-range forecasts when the demand pattern is erratic
B. Under time-series methods, demand is divided into the time-based components such as daily, weekly, etc.
C. Agent liability. Time series analysis tries to understand the system underlying and surrounding the item being forecast.
D. Time series analysis is based on the idea that the history of occurrences over time can be used to predict the future.

36) Which of the following would not be classified as a time-series technique?
A. Regression model
B. Box Jenkins technique
C. Exponential smoothing
D. Simple moving average

37) Which of the following accurately describes a chase strategy?
A. All of the above could describe the strategy, depending on the organization.
B. The firm produces exactly what is needed every month.
C. The firm produces at the same level for several months, and then adjusts production to another level and produces at that level for several more months.
D. The firm produces the same amount each day over the planning period and deals with the variations in demand through the use of inventory or overtime.

38) One option for altering the pattern of demand is:
A. pricing
B. carrying inventory
C. using overtime
D. hiring employees

39) Aggregate planners balance:
A. supply and inventories
B. demand and capacity
C. demand and inventories
D. demand and costs

40) Which of the following is not an advantage of MRP?
A. MRP is flexible – easy to veer away from the schedule if need arises
B. Reduced idle time
C. Reduced inventory
D. Reduced sales price

41) Which of the following most closely describes net material requirements?
A. gross requirements – planned order releases
B. gross requirements – on-hand – planned order receipts
C. gross requirements – on-hand + planned order receipts
D. gross requirements – planned order receipts

42) Which MRP system input element specifies how many and when the firm plans to build each end item?
A. Capacity planning
B. Master production schedule
C. Bills of material
D. Inventory records file

Version 2

1) According to your text, the most common process metric is:
A. Utilization
B. Productivity
C. Efficiency
D. Throughput time

2) ________ is when the activities in the stage must stop because there is no place to deposit the item just completed.
A. Starving
B. Buffering
C. Blocking
D. None of these answers

3) The average time between completion of units is commonly known as:
A. Cycle time
B. Throughput time
C. Operation time
D. Run time

4) According to Hayes and Wheelwright, which of the following is not a major process flow structure?
A. Assembly Line
B. Job Shop
C. Batch
D. Project

5) The best process flow structure to use for making automobiles is?
A. Group technology cell
B. Job Shop
C. Batch Shop
D. Assembly line

6) The type of processing structure that is used to produce gasoline, chemicals, and steel is:
A. Assembly Line
B. Job Shop
C. Batch
D. Continuous Flow

7) When evaluating a new product development project using net present value analysis, which of the following will make the project more attractive?
A. Delaying the start of the project
B. Making the project run over a longer period of time
C. Improving (bringing forward) the date when revenue will begin
D. A and B

8) The most important performance dimension for product development projects is:
A. Quality
B. Time-to-market
C. Productivity
D. Product flexibility

9) In which phase of new-product design process are considerations to target market, desired level of performance, investment requirements and financial impact made:
A. preliminary process design
B. concept development and product planning
C. detailed engineering
D. pilot manufacturing phase

10) An example of prevention quality cost is:
A. Train personnel
B. Inspection
C. Testing
D. Rework

11) Testing is an example of:
A. Internal failure costs
B. External failure costs
C. Prevention costs
D. Appraisal costs

12) Which of the following is not a dimension of design quality?
A. Serviceability
B. Customization
C. Durability
D. Features

13) The basic difference between P and Q systems is:
A. P models favor more expensive items
B. P model is more appropriate for important items such as critical repair parts
C. Q models are time triggered while P models are event triggered
D. Q models are event triggered while P models are time triggered

14) Independent demand is:
A. demand that is related to the demand for another item
B. demand determined by the marketplace that requires forecasting
C. inventory that is independent of any known rules of demand and supply
D. inventory whose demand comes from independent suppliers

15) Which of the following statements is true about the Q-system?
A. It does not have an EOQ, since the quantity varies according to demand.
B. The order interval is fixed not the order quantity.
C. The system is completely determined by the two parameters, Q and R.
D. It does not have a reorder point but rather a target inventory.

16) Which of the following is not a principle of work-center scheduling?
A. Schedule jobs as strings, with process steps back to back
B. Obtain feedback each day on the jobs that are completed at each work center
C. Reschedule every day
D. Once started, a job should not be interrupted

17) The assignment method is appropriate in solving problems that have the following characteristics:
A. There are ‘n’ things to be distributed to ‘n’ destinations
B. Though each destination may handle all the things, the final assignment has each thing assigned to one and only one destination
C. Only one criterion should be used (minimum cost, maximum profit, for example)
D. A and C

18) The objectives of work-center scheduling include(s):
A. To meet due dates
B. To minimize lead times
C. To minimize finish goods inventory
D. A and B

19) According to Goldratt and Fox, a useful performance measure to treat inventory is ______.
A. Quick ratio
B. Dollar days
C. Current ratio
D. Inventory turnover

20) Which of the following according to Goldratt is not a component of production cycle time?
A. Wait time
B. Maintenance time
C. Process time
D. Setup time

21) The measures of the firm’s ability to make money according to Goldratt include:
A. Net profit
B. Return on assets
C. Cash flow
D. A and C

22) The advantage(s) of the network planning models over the Gantt chart is (are) that:
A. they are easy to use and quite widely understood
B. the precedence relationships in network scheduling are explicitly shown
C. they are less costly to use
D. both A and B

23) “Slack” refers to the difference between:
A. observed and predicted times
B. optimistic and pessimistic times
C. finish and start times
D. latest and earliest times

24) Which of the following is not a typical project milestone?
A. Training of project members
B. Completed testing of the prototype
C. Production of a prototype
D. Completion of design

25) According to Hau Lee, which of the following types of products need to be delivered with efficient supply-chains?
A. Grocery products
B. High technology products
C. Innovative products
D. Custom products

26) Supply-chain response relates to the following:
A. How quickly a customer order can be filled
B. How quickly a company can react to a new competing product
C. How inexpensive the product is
D. A and B

27) Which of the following product promotional activities would probably help make the supply chain more efficient?
A. Special packaging for a specific event that occurs one time each year
B. A 2 for 1 price promotion
C. An “everyday” low price strategy where prices are not dependent on quantity delivered with a specific order
D. Price promotions that expire on a specific date

28) The steps to determining capacity requirements include:
A. Using decision trees to evaluate capacity alternatives
B. Calculating equipment and labor requirements to meet product line forecasts
C. Projecting labor and equipment availabilities over the planning horizon
D. B and C

29) Which of the following statements is not true about capacity management in operations?
A. Capacity planning itself has different meaning to individuals at different levels within the operations management hierarchy.
B. The definition of capacity, in an operations management context, makes a clear distinction between efficient and inefficient use of capacity.
C. An operations management view also emphasizes the time dimension of capacity.
D. When looking at capacity, operations managers need to look at both resource input and product outputs.

30) Capacity utilization rate can be computed as:
A. Capacity used / best operating level
B. Capacity used + best operating level
C. Capacity used x best operating level
D. Capacity used – best operating level

31) A kanban card is used to signal that:
A. a machine has broken down
B. work is authorized to replenish a downstream station
C. a worker has run out of parts
D. work is ready to be moved to the next station

32) Which of the following is not an element of JIT?
A. Multifunction worker
B. kanan pull system
C. quickly changing schedule
D. small-lot production

33) Which of the following is not true about JIT systems?
A. JIT is typically applied to repetitive manufacturing.
B. The goal of JIT is to drive all inventory queues to a moderate level thus minimizing inventory investment and shortening lead times.
C. Under JIT the ideal lot size is one.
D. The JIT system is based on the philosophy of eliminating waste and utilizing the full capability of the worker.

34) Which of the following would not be classified as a time-series technique?
A. Box Jenkins technique
B. Regression model
C. Exponential smoothing
D. Simple moving average

35) Which phrase most closely describes the Delphi forecasting technique?
A. group of expert’s opinions
B. test markets
C. random individual opinions
D. consumer survey

36) Given that the previous forecast of 65 turned out to be four units less than the actual demand. The next forecast is 66. What would be the value of alpha if the simple exponential smoothing forecast method is being used?
A. 0.04
B. 0.25
C. 0.4
D. 0.02

37) Aggregate planners balance:
A. demand and capacity
B. supply and inventories
C. demand and inventories
D. demand and costs

38) Which of the following is not a cost relevant to aggregate production planning?
A. Costs associated with changes in the production rate
B. Inventory holding costs
C. Quantity discounts
D. Basic production costs

39) Production planning strategies include:
A. Chase strategy
B. Level strategy
C. Stable workforce-variable work hours
D. A, B, and C

40) Which of the following is true about MRP Systems?
A. demand pattern is random
B. objective is to meet manufacturing needs
C. lot sizing is EOQ
D. based on independent demand

41) The gross requirements of a given component part in an MRP system are determined from:
A. gross requirements of the immediate part
B. planned order releases of the immediate parents
C. net requirements of end item
D. net requirements + on-hand

42) Which MRP system input element specifies how many and when the firm plans to build each end item?
A. Master production schedule
B. Capacity planning
C. Bills of material
D. Inventory records file

Version 3

1) Which of the following is true about make-to-stock processes?
A. Make-to-stock processes can be controlled based on the actual or anticipated amount of finished goods
B. Make-to-stock process is used when demand is seasonal and the firm does not have enough
C. Services by their very nature often use make-to-stock processes.
D. A and B

2) According to your text, the most common process metric is:
A. Productivity
B. Utilization
C. Throughput time
D. Efficiency

3) ________ is when the activities in the stage must stop because there is no place to deposit the item just completed.
A. Buffering
B. Starving
C. None of these answers
D. Blocking

4) According to Hayes and Wheelwright, which of the following is not a major process flow structure?
A. Job Shop
B. Assembly Line
C. Project
D. Batch

5) The best process flow structure to use for making automobiles is?
A. Job Shop
B. Group technology cell
C. Assembly line
D. Batch Shop

6) The most important performance dimension for product development projects is:
A. Quality
B. Product flexibility
C. Time-to-market
D. Productivity

7) When evaluating a new product development project using net present value analysis, which of the following will make the project more attractive?
A. Delaying the start of the project
B. Making the project run over a longer period of time
C. Improving (bringing forward) the date when revenue will begin
D. A and B

8) The steps to determining capacity requirements include:
A. Using decision trees to evaluate capacity alternatives
B. Calculating equipment and labor requirements to meet product line forecasts
C. Projecting labor and equipment availabilities over the planning horizon
D. B and C

9) Which of the following statements is true about value analysis/value engineering (VA/VE)?
A. The purpose of VA/VE is to simplify products and processes.
B. The objective of VA/VE is to achieve equivalent or better performance at a lower cost.
C. VA is performed before the production stage, while VE deals with products already in production.
D. both A and B

10) The category given the maximum point value in the Baldrige award is:
A. Business results
B. Process management
C. Strategic planning
D. Customer and market focus

11) Which of the following is not a dimension of design quality?
A. Serviceability
B. Customization
C. Features D. Durability

12) Which Quality Guru advocated that senior management is responsible for 94% of quality problems?
A. Ishikawa
B. Juran
C. Crosby
D. Deming

13) Which of the following is not an assumption of the basic economic-order quantity model?
A. ordering or setup costs are constant
B. quantity discounts are available
C. annual demand is constant and known
D. lead time is constant

14) The basic difference between P and Q systems is:
A. P models favor more expensive items
B. P model is more appropriate for important items such as critical repair parts
C. Q models are event triggered while P models are time triggered
D. Q models are time triggered while P models are event triggered

15) Which of the following statements is true about the Q-system?
A. It does not have an EOQ, since the quantity varies according to demand.
B. The order interval is fixed not the order quantity.
C. It does not have a reorder point but rather a target inventory.
D. The system is completely determined by the two parameters, Q and R.

16) The objectives of work-center scheduling include(s):
A. To meet due dates
B. To minimize lead times
C. To minimize finish goods inventory
D. A and B

17) A _________ approach actually schedules in detail each resource using the setup and runtime required for each order.
A. Forward scheduling
B. Backward scheduling
C. Infinite loading
D. Finite loading

18) The assignment method is appropriate in solving problems that have the following characteristics:
A. There are ‘n’ things to be distributed to ‘n’ destinations
B. Though each destination may handle all the things, the final assignment has each thing assigned to one and only one destination
C. Only one criterion should be used (minimum cost, maximum profit, for example)
D. A and C

19) Which of the following according to Goldratt is not a component of production cycle time?
A. Wait time
B. Maintenance time
C. Setup time
D. Process time

20) Goldratt’s rule of production scheduling include all but:
A. An hour saved at a non-bottleneck is a mirage
B. A process batch should be fixed both along its route and in time
C. Do not balance the capacity – balance the flow
D. Utilization and activation of a resource is not the same thing

21) According to Goldratt and Fox, a useful performance measure to treat inventory is ______.
A. Inventory turnover
B. Current ratio
C. Quick ratio
D. Dollar days

22) Which of the following would not be considered in deciding how far to minimum-cost schedule (crash) a project?
A. Project overrun penalties
B. Incentives for early completion
C. Indirect project costs (e.g. interest on a construction loan)
D. The normal duration times of tasks not on a critical path

23) The advantages of pure project include all but:
A. The project manager has full authority over the project.
B. Team pride, motivation, and commitments are high.
C. Decisions are made quickly.
D. A team member can work on several projects.

24) Which of the following is not a typical project milestone?
A. Completion of design
B. Production of a prototype
C. Training of project members
D. Completed testing of the prototype

25) Supply-chain response relates to the following:
A. How quickly a customer order can be filled
B. How quickly a company can react to a new competing product
C. How inexpensive the product is
D. A and B

26) According to Hau Lee, which of the following types of products need to be delivered with efficient supply-chains?
A. Custom products
B. Innovative products
C. Grocery products
D. High technology products

27) The idea of the Value Density calculation is:
A. Finding a carrier that can handle the weight
B. Matching the weight of the product with an appropriate carrier
C. Determining how a product should be shipped considering its weight and value
D. Finding the minimum cost carrier

28) Which of the following statements is not true about capacity management in operations?
A. When looking at capacity, operations managers need to look at both resource input and product outputs.
B. An operations management view also emphasizes the time dimension of capacity.
C. Capacity planning itself has different meaning to individuals at different levels within the operations management hierarchy.
D. The definition of capacity, in an operations management context, makes a clear distinction between efficient and inefficient use of capacity.

29) The steps to determining capacity requirements include:
A. Using decision trees to evaluate capacity alternatives
B. Calculating equipment and labor requirements to meet product line forecasts
C. Projecting labor and equipment availabilities over the planning horizon
D. B and C

30) Capacity utilization rate can be computed as:
A. Capacity used – best operating level
B. Capacity used x best operating level
C. Capacity used / best operating level
D. Capacity used + best operating level

31) Which of the following is NOT one of the more successful applications of lean concepts in services?
A. Organize problem-solving groups
B. Upgrade housekeeping
C. Upgrade quality
D. Introduction of demand-push scheduling

32) A kanban card is used to signal that:
A. work is ready to be moved to the next station
B. a worker has run out of parts
C. a machine has broken down
D. work is authorized to replenish a downstream station

33) Which of the following is not true about JIT systems?
A. The JIT system is based on the philosophy of eliminating waste and utilizing the full capability of the worker.
B. Under JIT the ideal lot size is one.
C. JIT is typically applied to repetitive manufacturing.
D. The goal of JIT is to drive all inventory queues to a moderate level thus minimizing inventory investment and shortening lead times.

34) Which phrase most closely describes the Delphi forecasting technique?
A. consumer survey
B. random individual opinions
C. group of expert’s opinions
D. test markets

35) Which of the following would not be classified as a component of demand?
A. Cycle
B. Seasonality
C. Trend
D. Causal variation

36) Under exponential smoothing, if we want our forecast to be very responsive to recent demand, the value of alpha should be:
A. moderate
B. zero
C. small
D. large
E. No, Acme is not a holder in due course because of some other reason.

37) One option for altering the pattern of demand is:
A. carrying inventory
B. using overtime
C. hiring employees
D. pricing

38) Which of the following is not a cost relevant to aggregate production planning?
A. Costs associated with changes in the production rate
B. Quantity discounts
C. Basic production costs
D. Inventory holding costs

39) Aggregate planners balance:
A. demand and capacity
B. demand and inventories
C. demand and costs
D. supply and inventories

40) Which MRP system input element specifies how many and when the firm plans to build each end item?
A. Master production schedule
B. Bills of material
C. Inventory records file
D. Capacity planning

41) Which of the following most closely describes net material requirements?
A. gross requirements – on-hand – planned order receipts
B. gross requirements – on-hand + planned order receipts
C. gross requirements – planned order receipts
D. gross requirements – planned order releases

42) Which of the following is true about MRP Systems?
A. demand pattern is random
B. lot sizing is EOQ
C. based on independent demand
D. objective is to meet manufacturing needs

43) Which of the following statements is not true about capacity management in operations?
A. Capacity planning itself has different meaning to individuals at different levels within the operations management hierarchy.
B. An operations management view also emphasizes the time dimension of capacity.
C. When looking at capacity, operations managers need to look at both resource input and product outputs.
D. The definition of capacity, in an operations management context, makes a clear distinction between efficient and inefficient use of capacity.

44) Service capacity:
A. is highly time and location dependent
B. is subject to less volatile demand fluctuations
C. utilization directly impacts service quality
D. A and C

Version 4
1) According to your text, the most common process metric is:
A. Productivity
B. Utilization
C. Throughput time
D. Efficiency

2) Which of the following is true about make-to-stock processes?
A. Make-to-stock processes can be controlled based on the actual or anticipated amount of finished goods
B. Make-to-stock process is used when demand is seasonal and the firm does not have enough
C. Services by their very nature often use make-to-stock processes.
D. A and B

3) ________ is when the activities in the stage must stop because there is no place to deposit the item just completed.
A. Buffering
B. Starving
C. None of these answers
D. Blocking

4) According to Hayes and Wheelwright, which of the following is not a major process flow structure?
A. Job Shop
B. Assembly Line
C. Project
D. Batch

5) The best process flow structure to use for making automobiles is?
A. Job Shop
B. Group technology cell
C. Assembly line
D. Batch Shop

6) The type of processing structure that is used to produce gasoline, chemicals, and steel is:
A. Job Shop
B. Assembly Line
C. Continuous Flow
D. Batch
7) The most important performance dimension for product development projects is:
A. Quality
B. Product flexibility
C. Time-to-market
D. Productivity

8) When evaluating a new product development project using net present value analysis, which of the following will make the project more attractive?
A. Delaying the start of the project
B. Making the project run over a longer period of time
C. Improving (bringing forward) the date when revenue will begin
D. A and B

9) Which of the following statements is true about value analysis/value engineering (VA/VE)?
A. The purpose of VA/VE is to simplify products and processes.
B. The objective of VA/VE is to achieve equivalent or better performance at a lower cost.
C. VA is performed before the production stage, while VE deals with products already in production.
D. both A and B

10) The category given the maximum point value in the Baldrige award is:
A. Business results
B. Process management
C. Strategic planning
D. Customer and market focus

11) Which of the following is not a dimension of design quality?
A. Serviceability
B. Customization
C. Features
D. Durability

12) Which Quality Guru advocated that senior management is responsible for 94% of quality problems?
A. Ishikawa
B. Juran
C. Crosby
D. Deming

13) Which of the following is not an assumption of the basic economic-order quantity model?
A. ordering or setup costs are constant
B. quantity discounts are available
C. annual demand is constant and known
D. lead time is constant

14) The basic difference between P and Q systems is:
A. P models favor more expensive items
B. P model is more appropriate for important items such as critical repair parts
C. Q models are event triggered while P models are time triggered
D. Q models are time triggered while P models are event triggered

15) Which of the following statements is true about the Q-system?
A. It does not have an EOQ, since the quantity varies according to demand.
B. The order interval is fixed not the order quantity.
C. It does not have a reorder point but rather a target inventory.
D. The system is completely determined by the two parameters, Q and R.

16) The objectives of work-center scheduling include(s):
A. To meet due dates
B. To minimize lead times
C. To minimize finish goods inventory
D. A and B

17) A _________ approach actually schedules in detail each resource using the setup and runtime required for each order.
A. Forward scheduling
B. Backward scheduling
C. Infinite loading
D. Finite loading

18) The assignment method is appropriate in solving problems that have the following characteristics:
A. There are ‘n’ things to be distributed to ‘n’ destinations
B. Though each destination may handle all the things, the final assignment has each thing assigned to one and only one destination
C. Only one criterion should be used (minimum cost, maximum profit, for example)
D. A and C

19) Which of the following according to Goldratt is not a component of production cycle time?
A. Wait time
B. Maintenance time
C. Setup time
D. Process time

20) Goldratt’s rule of production scheduling include all but:
A. An hour saved at a non-bottleneck is a mirage
B. A process batch should be fixed both along its route and in time
C. Do not balance the capacity – balance the flow
D. Utilization and activation of a resource is not the same thing

21) According to Goldratt and Fox, a useful performance measure to treat inventory is ______.
A. Inventory turnover
B. Current ratio
C. Quick ratio
D. Dollar days

22) Which of the following would not be considered in deciding how far to minimum-cost schedule (crash) a project?
A. Project overrun penalties
B. Incentives for early completion
C. Indirect project costs (e.g. interest on a construction loan)
D. The normal duration times of tasks not on a critical path

23) The advantages of pure project include all but:
A. The project manager has full authority over the project.
B. Team pride, motivation, and commitments are high.
C. Decisions are made quickly.
D. A team member can work on several projects.

24) Which of the following is not a typical project milestone?
A. Completion of design
B. Production of a prototype
C. Training of project members
D. Completed testing of the prototype

25) Supply-chain response relates to the following:
A. How quickly a customer order can be filled
B. How quickly a company can react to a new competing product
C. How inexpensive the product is
D. A and B

26) According to Hau Lee, which of the following types of products need to be delivered with efficient supply-chains?
A. Custom products
B. Innovative products
C. Grocery products
D. High technology products

27) The idea of the Value Density calculation is:
A. Finding a carrier that can handle the weight
B. Matching the weight of the product with an appropriate carrier
C. Determining how a product should be shipped considering its weight and value
D. Finding the minimum cost carrier

28) Which of the following statements is not true about capacity management in operations?
A. When looking at capacity, operations managers need to look at both resource input and product outputs.
B. An operations management view also emphasizes the time dimension of capacity.
C. Capacity planning itself has different meaning to individuals at different levels within the operations management hierarchy.
D. The definition of capacity, in an operations management context, makes a clear distinction between efficient and inefficient use of capacity.

29) The steps to determining capacity requirements include:
A. Using decision trees to evaluate capacity alternatives
B. Calculating equipment and labor requirements to meet product line forecasts
C. Projecting labor and equipment availabilities over the planning horizon
D. B and C

30) Capacity utilization rate can be computed as:
A. Capacity used – best operating level
B. Capacity used x best operating level
C. Capacity used / best operating level
D. Capacity used + best operating level

31) Which of the following is NOT one of the more successful applications of lean concepts in services?
A. Organize problem-solving groups
B. Upgrade housekeeping
C. Upgrade quality
D. Introduction of demand-push scheduling

32) A kanban card is used to signal that:
A. work is ready to be moved to the next station
B. a worker has run out of parts
C. a machine has broken down
D. work is authorized to replenish a downstream station

33) Which of the following is not true about JIT systems?
A. The JIT system is based on the philosophy of eliminating waste and utilizing the full capability of the worker.
B. Under JIT the ideal lot size is one.
C. JIT is typically applied to repetitive manufacturing.
D. The goal of JIT is to drive all inventory queues to a moderate level thus minimizing inventory investment and shortening lead times.

34) Which phrase most closely describes the Delphi forecasting technique?
A. consumer survey
B. random individual opinions
C. group of expert’s opinions
D. test markets

35) Which of the following would not be classified as a component of demand?
A. Cycle
B. Seasonality
C. Trend
D. Causal variation

36) Under exponential smoothing, if we want our forecast to be very responsive to recent demand, the value of alpha should be:
A. moderate
B. zero
C. small
D. large
E. No, Acme is not a holder in due course because of some other reason.

37) One option for altering the pattern of demand is:
A. carrying inventory
B. using overtime
C. hiring employees
D. pricing

38) Which of the following is not a cost relevant to aggregate production planning?
A. Costs associated with changes in the production rate
B. Quantity discounts
C. Basic production costs
D. Inventory holding costs

39) Aggregate planners balance:
A. demand and capacity
B. demand and inventories
C. demand and costs
D. supply and inventories

40) Which MRP system input element specifies how many and when the firm plans to build each end item?
A. Master production schedule
B. Bills of material
C. Inventory records file
D. Capacity planning

41) Which of the following most closely describes net material requirements?
A. gross requirements – on-hand – planned order receipts
B. gross requirements – on-hand + planned order receipts
C. gross requirements – planned order receipts
D. gross requirements – planned order releases

42) Which of the following is true about MRP Systems?
A. demand pattern is random
B. lot sizing is EOQ
C. based on independent demand
D. objective is to meet manufacturing needs

43) Which of the following statements is not true about capacity management in operations?
A. Capacity planning itself has different meaning to individuals at different levels within the operations management hierarchy.
B. An operations management view also emphasizes the time dimension of capacity.
C. When looking at capacity, operations managers need to look at both resource input and product outputs.
D. The definition of capacity, in an operations management context, makes a clear distinction between efficient and inefficient use of capacity.

44) Service capacity:
A. is highly time and location dependent
B. is subject to less volatile demand fluctuations
C. utilization directly impacts service quality
D. A and C

45) The steps to determining capacity requirements include:
A. Using decision trees to evaluate capacity alternatives
B. Calculating equipment and labor requirements to meet product line forecasts
C. Projecting labor and equipment availabilities over the planning horizon
D. B and C

Version 5

1) Which of the following is not a typical project milestone?
a. Completion of design
b. Production of a prototype
c. Training of project members
d. Completed testing of the prototype
e. Approval of a pilot run

2) Which of the following are organizational structures used to tie the project to the parent firm?
a. Pure project
b. Functional project
c. Matrix project
d. Only A and B
e. Only B and C
f. A, B, and C

3) The advantages of pure project include all but:
a. The project manager has full authority over the project.
b. Team pride, motivation, and commitments are high.
c. Decisions are made quickly.
d. A team member can work on several projects.
e. Team members report to one boss.

4) The advantage(s) of the network planning models over the Gantt chart is (are) that:
a. they are easy to use and quite widely understood
b. the precedence relationships in network scheduling are explicitly shown
c. they are less costly to use
d. both A and B
e. both B and C

5) “Slack” refers to the difference between:
a. latest and earliest times
b. finish and start times
c. observed and predicted times
d. optimistic and pessimistic times
e. none of the above

6) Which of the following would not be considered in deciding how far to minimum-cost schedule (crash) a project?
a. Project overrun penalties
b. Incentives for early completion
c. Indirect project costs (e.g. interest on a construction loan)
d. The normal duration times of tasks not on a critical path
e. How far individual tasks can be crashed

7) Which statement is true about Project Scheduling?
a. Slack is defined as the difference between the earliest start and the latest finish of a task.
b. The critical path seldom has a slack time of zero.
c. Project crashing is an effort to maximize project duration.
d. The earliest finish for a task is equal to the early start plus the task duration.
e. None of the above statements are true.

8) Refer To: 0301. What is the expected time needed to complete activity A?
a. 8 minutes
b. 10 minutes
c. 12 minutes
d. 11 minutes
e. None of the above

9) Refer To: 0301. Which of the following is the standard deviation of this activity A?
a. sqrt (4/36)
b. sqrt (16/36)
c. sqrt (10/36)
d. 4/36
e. 16/36

10) In which phase of new-product design process are considerations to target market, desired level of performance, investment requirements and financial impact made:
a. concept development and product planning
b. detailed engineering
c. preliminary process design
d. pilot manufacturing phase
e. ramp-up

11) When marketing, engineering, and operations simultaneously develop a process (cross-functional integration), this approach is known as __________ ________________.
a. sequential process
b. traditional approach
c. concurrent engineering
d. both A and B
e. none of the above

12) Quality Function Deployment
a. is a tool for translating customer requirements into concrete operating and engineering goals.
b. facilitates inter-functional cooperation between marketing, engineering, and manufacturing.
c. provides a better understanding and focus on process characteristics that require improvements.
d. A and B
e. A, B, and C

13) Which of the following statements is true about value analysis/value engineering (VA/VE)?
a. The purpose of VA/VE is to simplify products and processes.
b. The objective of VA/VE is to achieve equivalent or better performance at a lower cost.
c. VA is performed before the production stage, while VE deals with products already in production.
d. both A and B
e. A, B, and C

14) The most important performance dimension for product development projects is:
a. Time-to-market
b. Productivity
c. Quality
d. Product flexibility
e. Product reliability
f. A, B, and C

15) When evaluating a new product development project using net present value analysis, which of the following will make the project more attractive?
a. Delaying the start of the project
b. Making the project run over a longer period of time
c. Improving (bringing forward) the date when revenue will begin
d. A and B
e. None of the above are correct.

16) Which of the following are parts of IDEO’s product design process?
a. Rapid prototyping
b. Using project milestones
c. Brainstorming
d. Benchmarking
e. A and C

17) Which of the following are characteristics of a company’s core competence?
a. It is not easy to outsource
b. It provides potential access to a variety of markets
c. It increases perceived customer benefits
d. It is hard for competitors to imitate
e. B, C and D.

18) Manufacturing is involved in what phases of the product design process?
a. Concept Development
b. Production Ramp-up
c. Initial Planning
d. Concept Development
e. A, B, C and D

19) Which of the following would not be considered an input in the airline business?
a. Ground equipment
b. Flight crew
c. Reservation personnel
d. Energy in the form of fuel
e. All the above are inputs

20) ________ is when the activities in the stage must stop because there is no place to deposit the item just completed.
a. Buffering
b. Blocking
c. Starving
d. None of the above

21) The most common things that can happen when two stages are directly linked are:
a. Buffering
b. Blocking
c. Starving
d. A and B
e. B and C
f. A, B, and C

22) Processes can be characterized as:
a. Single stage or multi stage
b. Make-to-stock or make-to-order
c. Paced or non-paced
d. A and B
e. B and C
f. A, B, and C

23) Which of the following is true about make-to-stock processes?
a. Make-to-stock processes can be controlled based on the actual or anticipated amount of finished goods inventory.
b. Make-to-stock process is used when demand is seasonal and the firm does not have enough capacity to keep up during the peak season.
c. Services by their very nature often use make-to-stock processes.
d. A and B
e. A and C
f. A, B, and C

24) According to your text, the most common process metric is:
a. Productivity
b. Efficiency
c. Utilization
d. Throughput time
e. Cycle time

25) The average time between completion of units is commonly known as:
a. Throughput time
b. Operation time
c. Cycle time
d. Run time
e. None of the above

26) In practice, often _______ time is not included in the utilization of the process.
a. Run time
b. Machine time
c. Setup time
d. A and B
e. B and C

27) Throughput time cannot be reduced in a process by:
a. Reducing the utilization of bottleneck equipment
b. Performing activates using a serial approach
c. Changing the sequence of activities
d. Reducing interruptions
e. All of the above are ways by which throughput time can be reduced

28) According to Hayes and Wheelwright, which of the following is not a major process flow structure?
a. Job Shop
b. Batch
c. Assembly Line
d. Project
e. Continuous Flow

29) The type of processing structure that is used to produce gasoline, chemicals, and steel is:
a. Job Shop
b. Batch
c. Assembly Line
d. Project
e. Continuous Flow

30) The type of processing structure that is used for producing discrete products at higher volume is:
a. Job Shop
b. Batch
c. Assembly Line
d. Project
e. Continuous Flow

31) An example of a business/industry that uses batch flow process structure is:
a. Commercial printer
b. Heavy equipment
c. Automobile assembly
d. Sugar refinery
e. French restaurant

32) The major decision variables in equipment selection are:
a. Flexibility
b. Labor requirements
c. Manufacturer
d. Both A and B
e. Both B and C
f. Both A, B and C

33) A major process flow structure is the fabrication shop.
a. True
b. False

34) The best process flow structure to use for making automobiles is?
a. Job shop
b. Batch shop
c. Group technology cell
d. Assembly line
e. Continuous flow

35) A process flow diagram shows how parts are put together to make a product.
a. True
b. False

36) A break even point indicates which of the following:
a. The point where profit is maximized
b. The point where cost is minimized
c. The point where we are indifferent between two options
d. The point where we are most efficient
e. All of the above

37) Generalizations that can be made pertaining to the nature of services include:
a. Everyone is an expert on services
b. Quality of work is quality of service
c. High-contact services are experienced
d. A and B
e. A and C
f. A, B, and C
The correct answer is e

38) Home repair services are an example of:
a. Facilities-based services
b. Field-based services
c. Internal services
d. All of the above
e. None of the above

39) The service triangle includes:
a. The service strategy
b. Employees
c. Management
d. Support systems
e. A, B, and C
f. A, B, and D
g. All of the above

40) The ______ the percentage of contact time between the service system and the customer, the ________ the degree of interaction between the two during the production process.
a. Greater, lesser
b. Lesser, greater
c. Greater, greater
d. None of the above

41) The item “most” emphasized by the survey respondents of the 1997 survey conducted by Roth, Chase, and Voss was:
a. Accessibility
b. Openness to employees
c. Leadership
d. Listening to the customer
e. Service tangibles

42) Which of the following is not an alternative identified in the service-system design matrix?
a. Mail contact
b. Face-to-face loose specs
c. Face-to-face tight specs
d. Phone contact
e. All of the above are identified

Version 6
1) ______________ refers to service encounters whose specifications must be developed through some interaction between the customer and the server.
a. Mail contact
b. Face-to-face loose specs
c. Face-to-face tight specs
d. Phone contact
e. Face-to-Face total customization

2) Which of the following statements is not true about the strategic uses of the service-system design matrix?
a. Enables systematic integration of operations and marketing strategy
b. Permits comparison with how other firms deliver specific services
c. Indicates life cycle changes that might be in order as the firm grows
d. Both A and B
e. Both B and C
f. A, B, and C

3) The approach to delivering on-site service made famous by Nordstrom department stores is:
a. Production line approach
b. Self-service approach
c. Personal attention approach
d. None of the above

4) Which of the following is not an element of a good service guarantee?
a. Unconditional
b. Easy to understand and communicate
c. Painless to invoke
d. Ensures the firm makes a profit
e. Meaningful to the customer

5) The categories for the Baldrige Award include:
a. Manufacturing companies or subsidiaries
b. Small businesses
c. Educational institutions
d. Healthcare organizations
e. A and B
f. All of the above

6) The category given the maximum point value in the Baldrige award is:
a. Strategic planning
b. Customer and market focus
c. Business results
d. Process management
e. Human resource focus

7) Which Quality Guru advocated that senior management is responsible for 94% of quality problems?
a. Crosby
b. Deming
c. Ishikawa
d. Juran
e. None of the above

8) Which of the following is not a dimension of design quality?
a. Features
b. Durability
c. Serviceability
d. Customization
e. Reputation

9) Testing is an example of:
a. Appraisal costs
b. Prevention costs
c. Internal failure costs
d. External failure costs
e. None of the above

10) An example of prevention quality cost is:
a. Inspection
b. Testing
c. Train personnel
d. Rework
e. Warranty replacements

11) SPC tools commonly used for continuous improvement efforts include:
a. Process flow chart
b. Pareto analysis
c. Cause and effect diagrams
d. Histograms
e. All of the above

12) Which of the following statements is not true about the ISO 9000 series?
a. The ISO 9000 consists of 5 primary parts numbered as 9000 through 9004.
b. There are 20 elements in the ISO 9000 standards that relate to how the system operates and how well it is performing.
c. ISO 9000 is somewhat intentionally vague.
d. There are 3 forms of certification: first, second and third party.
e. ISO 9000 places more emphasis on customer satisfaction and business results.

13) According to Treacy and Wiersema, market leadership can be attained through:
a. Product leadership
b. Operational excellence
c. Customer intimacy
d. Reengineering
e. A, B, and C
f. A, B, C, and D

14) According to David Maister, the most complex projects requiring innovation and creativity are called _________.
a. “Procedures” projects
b. “Gray hair” projects
c. “Brain Surgery” projects
d. “Grinding” projects
e. None of the above

15) The last stage in the operations consulting process is:
a. Presenting final report
b. Implementing changes
c. Assuring client satisfaction
d. Assembling learning from the stage
e. None of the above

16) Operations stage toolkit for the Data Analysis and Solution Development phase include(s):<br></br><ol type=”I”><li>SPC tools</li><li>Bottleneck analysis</li><li>Computer simulation</li><li>Balanced scoreboard</li></ol>
a. I and II
b. II and III
c. I, II and III
d. II, III, and IV
e. I, II, III, and IV

17) Five forces model is an operation-consulting tool used in the ___________ phase.
a. Problem definition
b. Data gathering
c. Data analysis
d. Cost impact and payoff analysis
e. Implementation

18) Total quality management emphasizes continuous and incremental improvements of processes that are in control, reengineering is about radical discontinuous change through process innovation.
a. True
b. False

19) Which of the following is not a principle or rule for reengineering?
a. Organize around tasks, not outcomes
b. Merge information-processing work into the real work that produces the information
c. Treat geographically dispersed resources as though they were centralized
d. Link parallel activities instead of integrating their results
e. Capture information once-at the source

20) Supply-chain strategy concepts are applicable to what types of companies?
a. Manufacturing
b. Service
c. Restaurants
d. Airlines
e. All of the above of companies
Section : S_1
Reference: 0801
Consider the following data from a company annual report:

Sales 1,000,000
Cost of Goods Sold 800,000
Raw Materials Inventory 100,000
Finished Goods Inventory 75,000
Work-in-Process 25,000

21) Refer To: 0801The inventory turnover for this company is:
a. 4.0
b. 8.0
c. 10.67
d. 32
e. 2.0

22) Refer To: 0801<br></br>Lower values of inventory turn are considered better for a company.
a. True
b. False

23) Which of the following product promotional activities would probably help make the supply chain more efficient?
a. Price promotions that expire on a specific date
b. An “everyday” low price strategy where prices are not dependent on quantity delivered with a specific order
c. Special packaging for a specific event that occurs one time each year
d. A 2 for 1 price promotion
e. All of the above

24) The phenomenon of magnification of demand variability as we move from the customer to the producer in the supply-chain is referred to as the:
a. Postponement effect
b. Elasticity of demand
c. Bullwhip effect
d. Price deflator
e. Just-in-time approach

25) According to Hau Lee, which of the following types of products need to be delivered with efficient supply-chains?
a. Custom products
b. Innovative products
c. Grocery products
d. High technology products
e. Responsive products
f. All of the above

26) Supply-chain response relates to the following:
a. How quickly a customer order can be filled
b. How quickly a company can react to a new competing product
c. How inexpensive the product is
d. A and B
e. All of the above

27) The idea of the Value Density calculation is:
a. Finding a carrier that can handle the weight
b. Matching the weight of the product with an appropriate carrier
c. Determining how a product should be shipped considering its weight and value
d. Finding the minimum cost carrier
e. Finding the fastest carrier for a product

28) What factors do companies need to consider when sourcing product?
a. Material costs
b. Transportation cost
c. Production costs
d. Outsourcing costs
e. All of the above

29) An important strategy for localizing a product in the context of supply-chain design is the following:
a. Postponing the task of differentiating a product until the last point in the supply network
b. Minimizing reengineering cost
c. Very high volume sales
d. Minimizing inventory cost
e. Low direct labor cost

30) Which of the following statements is not true about capacity management in operations?
a. When looking at capacity, operations managers need to look at both resource input and product outputs.
b. An operations management view also emphasizes the time dimension of capacity.
c. Capacity planning itself has different meaning to individuals at different levels within the operations management hierarchy.
d. The definition of capacity, in an operations management context, makes a clear distinction between efficient and inefficient use of capacity.

31) Capacity utilization rate can be computed as:
a. Capacity used – best operating level
b. Capacity used x best operating level
c. Capacity used / best operating level
d. Capacity used + best operating level
e. None of the above

32) Capacity flexibility can be achieved through:
a. Flexible plants
b. Flexible processes
c. Flexible workers
d. Strategies that use the capacity of other organizations
e. All of the above

33) Considerations in adding capacity include:
a. Maintaining system balance
b. Frequency of capacity additions
c. External sources of capacity
d. A and B
e. A and C
f. A, B, and C

34) The types of costs to consider when adding capacity are the cost of upgrading frequently and the cost of upgrading too infrequently.
a. True
b. False

35) The steps to determining capacity requirements include:
a. Using decision trees to evaluate capacity alternatives
b. Calculating equipment and labor requirements to meet product line forecasts
c. Projecting labor and equipment availabilities over the planning horizon
d. A and B
e. B and C
f. A, B, and C

36) Service capacity:
a. is highly time and location dependent
b. is subject to less volatile demand fluctuations
c. utilization directly impacts service quality
d. A and B
e. A and C
f. A, B, and C

37) 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
e. the level of capacity for which average unit cost is maximized

38) The benefit of group technology include:
a. Elimination of movement and waiting time between operations
b. Reduction of inventory
c. Reduction of number of employees required
d. A and B
e. B and C
f. A, B, and C

39) Which of the following is not true about JIT systems?
a. The JIT system is based on the philosophy of eliminating waste and utilizing the full capability of the worker.
b. Under JIT the ideal lot size is one.
c. JIT is typically applied to repetitive manufacturing.
d. The goal of JIT is to drive all inventory queues to a moderate level thus minimizing inventory investment and shortening lead times.
e. All the above statements are true.

40) Which of the following is not an element of JIT?
a. small-lot production
b. quickly changing schedule
c. multifunction worker
d. kanban pull system
e. perfect or nearly perfect quality

41) A kanban card is used to signal that:
a. work is ready to be moved to the next station
b. a worker has run out of parts
c. a machine has broken down
d. work is authorized to replenish a downstream station
e. a machine is ready for preventive maintenance

42) With regards to working with suppliers, lean systems typically require:
a. delivery of large lots at frequent intervals
b. buyer inspection of goods and materials
c. multiple sources from which to purchase
d. long-term relationships and commitments
e. the lowest price possible

Version 7

1) Which of the following is NOT one of the more successful applications of lean concepts in services?
a. Organize problem-solving groups
b. Upgrade housekeeping
c. Upgrade quality
d. Clarification of process flows
e. Introduction of demand-push scheduling

2) Which of the following are lean implementation requirements?
a. Preventive maintenance
b. Excellent quality
c. Vertically integrated facilities
d. A and B
e. A, B, and C

3) Which phrase most closely describes the Delphi forecasting technique?
a. consumer survey
b. random individual opinions
c. group of expert’s opinions
d. test markets
e. historic data

4) Which of the following statements are true about time-series forecasting?
a. Time series analysis is based on the idea that the history of occurrences over time can be used to predict the future.
b. Time series analysis tries to understand the system underlying and surrounding the item being forecast.
c. Under time-series methods, demand is divided into the time-based components such as daily, weekly, etc.
d. Time series methods are useful for long-range forecasts when the demand pattern is erratic
e. A, B, and C

5) Under exponential smoothing, if we want our forecast to be very responsive to recent demand, the value of alpha should be:
a. large
b. small
c. moderate
d. zero
e. the value of alpha doesn’t matter

6) Which of the following would not be classified as a time-series technique?
a. Simple moving average
b. Exponential smoothing
c. Box Jenkins technique
d. Regression model
e. Trend projections

7) Given that the previous forecast of 65 turned out to be four units less than the actual demand. The next forecast is 66. What would be the value of alpha if the simple exponential smoothing forecast method is being used?
a. 0.02
b. 0.4
c. 0.04
d. 0.25
e. none of the above

8) Which of the following would not be classified as a component of demand?
a. Trend
b. Seasonality
c. Cycle
d. Autocorrelation
e. Causal variation

9) A _____ model is usually more accurate than a ______ model for medium-to-long-range forecasts.
a. Time-series decomposition, causal regression
b. Causal regression, time-series decomposition
c. Time-series decomposition, simple exponential smoothing
d. Simple exponential smoothing, time-series decomposition
e. Simple exponential smoothing, causal regression

10) An accuracy measure that may be used to indicate any positive or negative bias in the forecast is:
a. Tracking signal
b. Mean absolute deviation
c. Mean squared error
d. Standard error
e. None of the above

11) A forecasting method that uses several simple forecasting rules and computer simulation of these rules on past data is called:
a. Simulation
b. Input/output
c. Focus forecasting
d. Historical analog
e. None of the above

12) Which of the following accurately describes a chase strategy?
a. The firm produces the same amount each day over the planning period and deals with the variations in demand through the use of inventory or overtime.
b. The firm produces at the same level for several months, and then adjusts production to another level and produces at that level for several more months.
c. The firm produces exactly what is needed every month.
d. All of the above could describe the strategy, depending on the organization.
e. None of the above accurately describes it.

13) Production planning strategies include:
a. Chase strategy
b. Level strategy
c. Stable workforce-variable work hours
d. Transportation Method
e. A, B, and C
f. All of the above

14) Which of the following is not a cost relevant to aggregate production planning?
a. Basic production costs
b. Quantity discounts
c. Costs associated with changes in the production rate
d. Inventory holding costs
e. Backordering costs

15) Aggregate planners balance:
a. demand and costs
b. demand and inventories
c. demand and capacity
d. supply and inventories
e. supply and cost

16) One option for altering the pattern of demand is:
a. hiring employees
b. using overtime
c. carrying inventory
d. subcontracting
e. pricing

17) The commonly used simple aggregate planning techniques are:
a. Cut-and-try charting
b. Graphic method
c. Linear programming and the transportation model
d. A and B
e. A, B, and C

18) The transportation model is appropriate to aggregate planning if the cost and variable relationships are linear and demand can be treated as probabilistic.
a. True
b. False

19) Which of the following is not a reason for carrying inventory?
a. to maintain independence of operations
b. to take advantage of economic purchase-order size
c. to make the system less productive
d. to meet variation in product demand
e. to allow flexibility in production scheduling

20) Counting items to ensure an order is correct, is an example of:
a. Setup cost
b. ordering cost
c. carrying cost
d. stockout cost
e. holding cost

21) Independent demand is:
a. inventory whose demand comes from independent suppliers
b. inventory that is independent of any known rules of demand and supply
c. demand that is related to the demand for another item
d. demand determined by the marketplace that requires forecasting
e. none of the above

22) The basic difference between P and Q systems is:
a. Q models are event triggered while P models are time triggered
b. Q models are time triggered while P models are event triggered
c. P models favor more expensive items
d. P model is more appropriate for important items such as critical repair parts
e. None of the above

23) Which of the following is not an assumption of the basic economic-order quantity model?
a. annual demand is constant and known
b. lead time is constant
c. ordering or setup costs are constant
d. quantity discounts are available
e. no backorders are allowed

24) In the basic fixed-order quantity model, if annual demand doubles, the effect on the Optimal Order Quantity (EOQ) is:
a. it doubles
b. it is half its previous amount
c. it is about 70% of its previous amount
d. decreases by a factor of 2
e. it increases by about 40%

25) Which of the following statements is true about the Q-system?
a. It does not have a reorder point but rather a target inventory.
b. The system is completely determined by the two parameters, Q and R.
c. It does not have an EOQ, since the quantity varies according to demand.
d. The order interval is fixed not the order quantity.
e. None of the above is true.

26) ABC analysis typically requires that inventory be classified according to:
a. alphabetical order by item name
b. annual dollar volume
c. alphabetical order by supplier name
d. due date
e. none of the above

27) In the basic Q model, if the lead time doubles, the EOQ will:
a. decrease by half
b. double
c. remain the same
d. increase, but not double
e. none of the above

28) Three simple inventory systems often used in practice are:
a. Optional replenishment or min/max system
b. One-bin system
c. Two-bin system
d. ABC inventory classification system
e. A, B, and C
f. A, C and D

29) Which of the following is true about MRP Systems?
a. based on independent demand
b. lot sizing is EOQ
c. demand pattern is random
d. objective is to meet manufacturing needs
e. order philosophy is replenishment

30) Which MRP system input element specifies how many and when the firm plans to build each end item?
a. Inventory records file
b. Bills of material
c. Master production schedule
d. Capacity planning
e. none of the above

31) The purposes of a basic MRP system include:
a. To control inventory levels
b. To prioritize the need for an item
c. Plan capacity to load the production system
d. A and B
e. B and C
f. A, B, and C

32) Which of the following is not an advantage of MRP?
a. Reduced sales price
b. Reduced inventory
c. Reduced idle time
d. MRP is flexible – easy to veer away from the schedule if need arises
e. Better response to market demand

33) Which of the following most closely describes net material requirements?
a. gross requirements – planned order receipts
b. gross requirements – on-hand + planned order receipts
c. gross requirements – on-hand – planned order receipts
d. gross requirements – planned order releases
e. none of the above

34) The gross requirements of a given component part in an MRP system are determined from:
a. net requirements + on-hand
b. net requirements of end item
c. gross requirements of the immediate part
d. planned order releases of the end item
e. planned order releases of the immediate parents

35) An MRP system that has information feedback from its module output is termed as open-loop MRP system.
a. True
b. False

36) JIT is best suited to repetitive manufacturing, whereas MRP is used in everything from custom job shops to assembly-line production.
a. True
b. False

37) Lot-sizing techniques include:
a. Lot-for-lot
b. Economic order quantity
c. Least total cost
d. Least unit cost
e. A and B
f. A, B, and C
g. A, B, C, D

38) A _________ approach actually schedules in detail each resource using the setup and runtime required for each order.
a. Infinite loading
b. Finite loading
c. Forward scheduling
d. Backward scheduling
e. None of the above

39) The objectives of work-center scheduling include(s):
a. To meet due dates
b. To minimize lead times
c. To minimize finish goods inventory
d. A and B
e. B and C
f. A, B, and C

40) Which of the following is not a priority rule for job sequencing?
a. shortest processing time
b. minimum slack time remaining
c. last come, first served
d. critical ratio
e. earliest due date
f. all the above are priority rules

41) Johnson’s rule is a sequencing rule used for scheduling any number of jobs on two machines.
a. True
b. False

42) The assignment method is appropriate in solving problems that have the following characteristics:
a. There are ‘n’ things to be distributed to ‘n’ destinations
b. Though each destination may handle all the things, the final assignment has each thing assigned to one and only one destination
c. Only one criterion should be used (minimum cost, maximum profit, for example)
d. A and C
e. B and C
f. A, B, and C

43) The major functions of shop-floor control are:
a. Assign priority of each shop order
b. Provide actual output data for capacity control purposes
c. Maintain work-in-process quantity information
d. A and B
e. B and C
f. A, B, and C

44) The basic tools for shop-floor control include:
a. Dispatch list
b. Various status and exception reports
c. An input/output control report
d. A and B
e. B and C
f. A, B, and C

45) Which of the following is not a principle of work-center scheduling?
a. Once started, a job should not be interrupted
b. Reschedule every day
c. Schedule jobs as strings, with process steps back to back
d. There is direct equivalence between work flow and cash flow
e. Obtain feedback each day on jobs that are completed at each work center

46) Goldratt’s rule of production scheduling include all but:
a. Do not balance the capacity – balance the flow
b. Utilization and activation of a resource is not the same thing
c. An hour saved at a non-bottleneck is a mirage
d. A process batch should be fixed both along its route and in time
e. Priorities can be set only by examining the system’s constraints

47) The steps in Goldratt’s Theory of Constraints problem solving approach include:
a. Identify the system constraint
b. Decide how to remove the system constraints
c. Elevate the system constraint to highest priority
d. A and B
e. A and C
f. A, B, and C

48) The measures of the firm’s ability to make money according to Goldratt include:
a. Net profit
b. Return on assets
c. Cash flow
d. A and B
e. A and C
f. A, B, and C

49) Operational measures include:
a. Throughput
b. Inventory
c. Operating expenses
d. A and B
e. B and C
f. A, B, and C

50) From an operations standpoint, the goal of the firm is to simultaneously increase throughput and inventory and reduce operating expenses.
a. True
b. False

51) If there is no bottleneck, then excess capacity exists and the system should be changed to create a bottleneck.
a. True
b. False

52) Which of the following according to Goldratt is not a component of production cycle time?
a. Setup time
b. Process time
c. Wait time
d. Queue time
e. Maintenance time

53) If the system contains a bottleneck, the _______ is the best place for control. If there is no bottleneck, the __________ is the best place for control.
a. Capacity-constrained resource, bottleneck
b. Capacity-constrained resource, drum
c. Bottleneck, capacity-constrained resource
d. None of the above

54) According to Goldratt and Fox, a useful performance measure to treat inventory is ______.
a. Inventory turnover
b. Current ratio
c. Quick ratio
d. Dollar days
e. None of the above

55) The drawbacks of JIT in relation to synchronous manufacturing include all but:
a. JIT is limited to repetitive manufacturing
b. JIT requires a stable production level
c. JIT uses a schedule to assign work to each workstation
d. JIT does not allow very much flexibility in the products produced
e. All of the above are drawbacks of JIT