a)
b)
c)
d)
1. Establishing personnel policies in an organization falls more appropriately under which of
the following activities? Directing
2. Which of the following statement is false with respect to the maturity stage of a Product Life
Cycle? Emphasis is on customized product design and production in the small batches
3. The initial investment is higher in which of the following Production Systems? (Product
Focused, Discrete Unit Manufacturing, Process Manufacturing, Product Focused, All of the
above)
4. Which of the following statement is not true with respect to the Project Crashing? We select
the critical activity that has the minimum completion time
5. The difficulties involved in transporting products and accessing established distribution
channels impede the process of globalization. This is an example of:- Economic Impediment
6. Variable sequence robots are most useful for which of the following Production Systems? Process Focused
7. Which of the following statement is false about the strategic decisions? - They do not affect
short term and mid term organizational decisions
8. Which among the following belongs to the function of controlling? Encourage pride in
performing as expected
9. Which of the following does not constitute the elements of an Operations Strategy?
Marketing
10. The sequence of operations and processes to be followed in order to produce a particular
product is known as: - Routing
11. The minimum amount of time in which an activity can be completed is known as:- Optimistic
time
12. For an activity, optimistic time, pessimistic time and most likely time are 6 days, 12 days and
9 days respectively. Then the expected time for the activity is 9 days
13. Intel has established itself as a technology leader, coming out with new microprocessors at a
breakneck speed. Which of the following competitive weapons is most likely being made use
of by Intel effectively? Short product cycle
14. The formal business planning process addresses which of the following plan(s)? (Long range
plan, Intermediate range plan, Operations plan, All of the above)
15. Fixed sequence robots are most useful for which of the following production systems?
Product Focused
16. Which of the following statement is false regarding Program Evaluation and Review
Technique (PERT)? - It is an ideal technique for strategic level planning
17. Global organizations can obtain the economies of scale by the virtue of:- Bargaining power,
Large production,
Skills and expertise of salespersons
Heterogeneity of products
Ans – a, b and c
18. Which of the following types of layout is commonly used for JIT Manufacturing? U-shape
19. Indian Space Research Organization (ISRO), which is involved in space research,
manufacturing of rockets and other related works, may involve which of the following types
of Facility Layout? - Fixed Position Layout
20. Which of the following systems represents the highest level of automation in
manufacturing? Computer Integrated Manufacturing
21. When an emergency occurs, Appointment Systems use which of the following for the
purpose of scheduling? - Slack time
22. Maintenance of a computerized parts classification and Coding System is usually required in
which of the following Production Systems? Cellular Manufacturing
23. Which of the following is a function of Directing? Issue job assignments and instructions
24. Which of the following constitute the development of new products?
a) Idea generation
b) Economic evaluation
c) Market testing
- Only a
- Both a and b
- Both a and c
- Both b and c
- All of the above
25. The appropriate type of Layout for the purpose of Automobile Manufacturing is - Product
Layout
26. Companies prefer to choose Asian countries for low labour cost services such as electronics
assembly, textile making and Information Technology Enabled Services (ITES). Which of the
following strategic advantages are they trying to derive by adopting this policy? Comparative advantage
27. Which of the following is not a feature of Flexible Manufacturing System (FMS)? It is usually
suitable for manufacturing products in high volumes
28. Comparing inventory levels to targets, it falls more appropriately under which of the
following activities? Controlling
29. A renowned Automobile Manufacturing company wants to automate its production process
inorder to bring efficiency in the process. With regard to this, it has sought the help of an
external consultant. However, the consultant has warned that the company should clearly
understand the advantages and disadvantages of automation before going for it. Which of
the following is not an advantage that would be offered by automation? Greater flexibility
30. If selling price of a product 'x' is Rs.45/-, variable cost per unit is Rs.40/-. If fixed cost is
Rs.1,00,000/- . What will be the profit, if sales are Rs.11,25,000/-? Rs.25,000/31. Which of the following statement is not true regarding Product Life Cycle?
The activities in the operations department that are related to the product development and
de sign are more intense in the later stages of the Product Life Cycle
32. Achieving the production targets to meet the market demand is important for any
organization. Productivity can be improved by dividing the job into sub tasks and assigning
them to workers based on their skills and capabilities. This concept was adopted by
F.W.Taylor in his book "Principles of scientific management". This concept is known as:Division of labour
33. An Operation Strategy is a high level integrated plan for business effectiveness or
competitiveness. Which of the following does not constitute the key components of
Operations Strategy? Marketing
34. Which of the following statements are true concerning 'Product Flexibility'?
a) It refers to the ability of the Production System to quickly shift from producing one
product to another
b) It is useful for production of custom designed products in small lots
c) Equipment should be designed to meet the production requirements that are close to the
peak level of demand
d) Employees with multiple skills are usually required for this type of setup
(a) a, b and c
(b) a, b and d
(c) b, c and d
(d) Both a and b
(e) Both b and c
35. Due to increase in cost of components and unsatisfactory quality of the components, Adlabs
Ltd. is planning to expand the ownership of the production and distribution chain towards
the source of supplies. Which of the following is being implemented by Adlabs Ltd.?
Backward integration
36. Which of the following Layout is also known as Functional Layout or Job-Shop Layout,
involving grouping of all similar equipment or functions? Process Layout
37. Which of the following statement is not true about vertical integration? Always preferable,
as there are no risks associated with it
38. Which of the following is/are advantage(s) of Cellular Manufacturing?
(a) a) It is economical only for those parts that possess a degree of standardization and are
prod uced in moderate size batches
(b) b) Production planning and control is simplified
(c) c) Machine changeover times between batches of parts are considerably reduced
(d) d) Cell workers have to be paid more than Assembly Line workers
(e) Both b and c
39. One of the major factors affecting process design decisions is the flexibility of the
organization. In this context, the product/service flexibility of an organization refers to the
ability:- To shift production from one product to another very quickly
40. Warehouse rental is associated with which of the following costs? Carrying cost
MCQ set 2 – LMS
1. Which one of these is not a determinant of effective capacity, or are they all determinants?
A)
Facilities
B)
Quality capabilities
C)
Job Design
D)
Supply chain
E)
All are factors
2. Which one of these does not enhance developing capacity alternatives?
A)
Designing flexibility into the system.
B)
Taking a "big picture" approach.
C)
Staying focused on quantitative factors.
D)
Smoothing capacity requirements.
3. Which one of these is the primary input in capacity planning?
A)
Overall cost estimates.
B)
Supply chain capabilities.
C)
Competitors' strengths.
D)
Past successes or failures.
E)
Demand forecasts.
4. Which one of these is not necessarily an important factor in planning service capacity?
A)
The inability to store services.
B)
The need to be near customers.
C)
Demand forecasts.
D)
Demand volatility.
5. Which one of these is not a reason for diseconomies of scale?
A)
Fixed costs are spread over more units.
B)
Distribution costs increase.
C)
Complexity increases costs.
D)
Inflexibility may be an issue.
6. Which approach would be used by an optimistic (or desperate) decision maker?
A)
maximin
B)
maximax
C)
minimax regret
D)
EMV
7. Which approach would be used by a pessimistic decision maker?
A)
maximin
B)
maximax
C)
minimax regret
D)
EMV
8. Which approach requires having probabilities for the states of nature?
A)
maximin
B)
maximax
C)
minimax regret
D)
EMV
9.
The maximax choice would be:
A)
Buy
B)
Rent
C)
Lease
10.
The maximin choice would be:
A)
Buy
B)
Rent
C)
Lease
11.
The minimax regret choice would be:
A)
Buy
B)
Rent
C)
Lease
12.
If the probability of Business Grows is 0.40, which alternative would be chosen using EMV?
A)
Buy
B)
Rent
C)
Lease
13.
If the probability of Business Grows is 0.40, what is the EVPI?
A)
57
B)
44
C)
42
D)
36
14. A DVD player would most likely be repaired in this type of layout:
A)
fixed position
B)
hybrid
C)
product
D)
process
15. Which system has the least flexibility?
A)
job shop
B)
batch
C)
assembly
D)
continuous
16. Which type of operation would be most closely associated with division of labor?
A)
job shop
B)
batch
C)
assembly
D)
continuous
17. The type of layout that would be used to build a submarine is:
A)
fixed-position
B)
product
C)
process
D)
aquatic
18. Which processing system would be the least likely choice for producing a pair of shoes?
A)
assembly
B)
batch
C)
continuous
D)
job shop
19. Which two types of processing systems would most likely be used to produce iPods?
A)
continuous or assembly
B)
assembly or batch
C)
batch or job shop
20. Product or service profiling links key product or service requirements to
A)
market conditions
B)
pricing strategies
C)
process capabilities
D)
schedule changes
E)
order sizes
21. Which one does not relate to designing process layouts?
A)
Minimizing transportation costs.
B)
Minimizing distance traveled.
C)
Focusing on closeness ratings.
D)
Equalizing times of work stations.
22. Which one of the following involves a group of machines that involve supervisory computer control
and automatic material handling?
A)
N/C machines
B)
Computer-aided manufacturing
C)
Cellular manufacturing
D)
Group technology
E)
Flexible manufacturing system
23. Group technology is often related to which one of the following?
A)
cellular manufacturing
B)
product layout
C)
combination layouts
D)
none of these
24. OSHA is concerned with
A)
worker compensation
B)
worker safety
C)
union issues
D)
treating workers fairly
25. Job rotation and job enlargement are most likely to occur as a part of
A)
process selection
B)
methods analysis
C)
job design
D)
motion study
26. The technique most known for its use of a stop watch is:
A)
work sampling
B)
time study
C)
methods analysis
D)
motion study
27. The term "therblig" refers to
A)
stopwatch reading
B)
process delay
C)
basic elemental motion
D)
fraction (.06) of a minute
28. Therbligs are most closely related to:
A)
time study
B)
motion study
C)
methods analysis
D)
worker safety
29. An analyst who wanted to estimate the percentage of time a machine is idle would use probably use
this method:
A)
work sampling
B)
time study
C)
predetermined time standards
D)
methods analysis
30. An analyst who wanted to estimate the proportion of time a worker is involved in a certain activity
would use probably use this method:
A)
work sampling
B)
time study
C)
predetermined time standards
D)
methods analysis
31. A standard time is equal to the normal time adjusted for the:
A)
performance rating
B)
allowance factor
C)
the learning effect
D)
the cost of living index
E)
time in rank
32. Which one is generally not true of work sampling?
A)
There is little or no disruption of work.
B)
Workers tend to be resentful because it is less accurate than time study.
C)
It is not well suited for short tasks.
D)
There is less detail about the job than with time study.
33. Which one is generally not true of time study?
A)
A stopwatch is required.
B)
Only one or a few observations are needed.
C)
There is more detail about a job than with work sampling.
D)
It is more costly than work sampling.
34. A job has a 80% learning curve. If the first unit took 100 hours to complete, the time for the fourth
unit should be closest to which time?
A)
80
B)
70
C)
65
D)
55
35. The first unit of a job with a learning rate of 80% took 5 hours. The time for the third unit should be:
A)
less than 3.2 hours
B)
about 3.2 hours
C)
more than 3.2 hours
36. A manager wants to estimate the learning percentage for a case where the time for the first
repetition was 10 hours and the time for the fourth was 5 hours. The learning percentage should be
about:
A)
85%
B)
80%
C)
75%
D)
70%
37. If work has a 70% learning curve, and the first unit took 10 hours, the third unit should take about
this many hours (no calculators):
A)
7.0
B)
6.2
C)
5.8
D)
4.9
38. For which activity would learning curves be the least useful?
A)
budgeting
B)
negotiated purchased
C)
scheduling
D)
location planning
E)
new product pricing
39. The first unit of an eight-unit job took 64 minutes. If the work have a 75% learning curve, which is
your estimate of the minutes that will be needed for the last unit?
A)
27
B)
36
C)
48
D)
None of these.
40. The third unit of a job that has a 90% learning curve took 20 hours. The sixth unit should take about
how many hours?
A)
18
B)
17
C)
16
D)
15
E)
None of these.
41. Given these unit completion times, what learning would be appropriate?
A)
A
B)
B
C)
C
D)
D
E)
E
42. If he time for the fourth units of a job was about half the time of the first unit, the learning percent is
A)
90%
B)
80%
C)
70%
D)
60%
*************************************************************************************
MCQ – set 1
1. A key reason that companies resort to outsourcing is to:
A)
reduce taxes
B)
reduce costs
C)
take advantage of supply chain management
D)
improve space utilization
E)
reduce dependence on foreign oil
2. The Pareto phenomenon is best represented by which of these phrases?
A)
Waste not, want not.
B)
A stitch in time saves nine.
C)
The few and the many.
D)
Do it right the first time.
E)
Optimize, optimize.
3. Which of the following is not true about the systems approach, or are all true?
A)
Is almost always beneficial in decision making.
B)
Emphasizes interrelationships among subsystems.
C)
Helps to achieve efficiency within subsystems.
D)
Is essential whenever something is being redesigned or improved.
E)
All of the above are true.
4. Which one of these is not one of the ethical principles, or are they all principles?
A)
rights
B)
fairness
C)
utilitarian
D)
virtue
E)
All are principles
5. The key to mass production was
A)
automation
B)
interchangeable parts
C)
low-skilled workers
D)
high demand for products
6. The "father of scientific management" was:
A)
Gilbreth
B)
Hawthorne
C)
Taylor
D)
Ford
E)
Pareto
7. The fact that improvements in a few key factors will have a major impact on operations is associated
with this name:
A)
Ford
B)
Smith
C)
Taylor
D)
Pareto
8. Which type of variation is the result of a deliberate choice of a business?
A)
seasonal
B)
trend
C)
assignable
D)
variety
9. Operations Management includes all of these activities except:
A)
Scheduling work.
B)
Maintaining quality.
C)
Assessing consumer wants and needs.
D)
Managing the supply chain.
E)
Managing inventories.
10. A key difference between the production of goods and the performance of services is:
A)
Services generally can't be stored.
B)
Manufacturing can be more labor intensive.
C)
Service is less profitable than manufacturing.
D)
Service work is more interesting than manufacturing work.
E)
Service workers require less training than manufacturing workers.
11. Measurements taken at various points in the transformation process for control purposes are called:
A)
feedback
B)
tracking signals
C)
control charts
D)
productivity measurement
E)
cost control
12. Viewing decisions in the context of the "big picture" is a key element of this approach.
A)
visual/graphic
B)
tactical
C)
ideal
D)
systems
E)
focused
13. Which exponential smoothing factor would produce the most smoothing?
A)
1.0
B)
0.3
C)
0.1
D)
0.0
14. Averaging techniques are useful for:
A)
distinguishing between random and non-random variations
B)
smoothing out fluctuations in time series
C)
both (a) and (b)
D)
providing technically accurate forecasts
E)
all of the above
15. Which one of the following is a qualitative forecasting technique?
A)
Associative
B)
Naïve
C)
Moving average
D)
Exponential smoothing
E)
Delphi
16. Which approach to forecasting uses a series of questionnaires?
A)
Associative
B)
Naïve
C)
Moving average
D)
Exponential smoothing
E)
Delphi
17. Which term is most closely associated with simple exponential smoothing?
A)
seasonal relative
B)
moving average
C)
trend
D)
predictor variable
18. Which is not a typical approach for improving forecasts?
A)
search for a better technique
B)
shorten product development time
C)
shorten lead times
D)
build flexibility into the system
19. Which would not generally be considered as a feature common to all forecasts?
items.
A)
Assumption of a stable underlying causal system
B)
Actual results will differ somewhat from predicted values.
C)
Historical data are available on which to base the forecast.
D)
Forecasts for groups of items tend to be more accurate than forecasts for individual
E)
Accuracy decreases as the time horizon increases.
20. If an analyst wants to make a moving average more responsive to change, the analyst should
A)
increase the number of data points in the average
B)
decrease the number of data points in the average
C)
increase the value of the smoothing constant
D)
decrease the value of the smoothing constant
E)
None of these
21. Which phrase or term does not relate to the Delphi method of forecasting?
A)
moving average
B)
consensus
C)
long range
D)
questionnaire
22. What is the MAD for this set of data? –1 +3 0 –2 +3
A)
1.0
B)
1.8
C)
2.5
D)
3.0
E)
9.0
23. What is the MSE for this set of data? –1 +3 0 –2 +3
A)
1.8
B)
3.0
C)
9.0
D)
23
E)
None of these
24. Which term is most closely associated with a tracking signal?
A)
MBA
B)
MSE
C)
MAD
D)
MAPE
25. Which one would be considered a reason for using a salesforce composite forecast?
A)
Sales people often communicate with each other.
B)
They are not likely to be affected by recent events
C)
They are very aware of the importance of forecast accuracy.
D)
They are often aware of customers' future plans.
E)
Better forecasts mean more money for them.
26. Which name is most closely associated with robust design?
A)
Taguchi
B)
Ford
C)
Smith
D)
McCaskey
E)
McGinnis
27. Which technique is associated with mass customization?
A)
a moving assembly line
B)
delayed differentiation
C)
use of a product-process matrix
D)
concurrent engineering
E)
component commonality
28. Which one of these specifies that a product must be suitable for its intended use?
A)
Federal product guidelines
B)
NAFTA
C)
The Uniform Commercial Code
D)
The International Bureau of Standards
29. The term "voice of the customer" is associated with:
A)
Nokia cell phones
B)
The Taguchi approach
C)
Concurrent engineering
D)
Quality function deployment
E)
Service blueprinting
30. Delayed differentiation can be useful for
A)
mass customization
B)
outsourcing
C)
postponing calculus solutions
D)
production lines
31. The term associated with incorporating customer ideas in product design is:
A)
the Taguchi approach
B)
quality function deployment
C)
mass customization
D)
value analysis
32. Which one of these statements about modular design is false?
A)
It decreases the amount of inventory items.
B)
It simplifies product repairs.
C)
It decreases product variety.
D)
It reduces production complexity.
33. Which term most closely relates to remanufacturing?
A)
redesigning
B)
recycling
C)
resorting
D)
reselling
34. The process of dismantling and examining a competitor's product to get design ideas would be
regarded as
A)
unethical
B)
benchmarking
C)
illegal
D)
reverse engineering
35. Service design often differs from product design for which one of these considerations?
A)
Its life cycle.
B)
Customer interface.
C)
Cost and value.
D)
Legal environment.
36. A machine operates for an average of 9 hours between the need for service, which takes an average
of 1 hour. The machine's availability is:
A)
9 hours
B)
8 hours
C)
.90
D)
1/9
37. A system is made up of two components, each with probability of operating correctly of .60. The
probability that the system will operate correctly is:
A)
.60
B)
.36
C)
.24
D)
.16
38. Adding a component to a system will affect reliability in this way:
A)
It will increase.
B)
It will decrease.
C)
It will not change.
D)
All are possible.
39. A system is composed of one part and a backup, each with a probability of correctly functioning of
0.60. The backup automatically kicks in (100% chance) if the component fails. The probability of the
system correctly functioning is:
A)
.84
B)
.60
C)
.36
D)
.24
40. Mean repair time (MRT) is directly relevant to which one of the following?
A)
MTBF
B)
Availability
C)
System reliability
D)
Redundancy
MCQ – set 3
1. The first step in location planning and analysis is:
A)
Develop a reasonable set of alternatives.
B)
Determine the criteria upon which the decision will be made.
C)
Identify factors that are important.
2. Which statement about location decisions is not true?
A)
Mistakes can be difficult to overcome.
B)
The goal is to find the optimal location.
C)
Both fixed and variable costs can be affected.
D)
Decisions are often long term.
3. Multiple plant manufacturing strategies include all of these except:
A)
product plant
B)
process plant
C)
market area plant.
D)
core plant
4. Which reason would not generally be cited for locating in a third world country?
A)
nearness to raw materials.
B)
lower labor costs.
C)
increased output quality.
D)
nearness to markets.
5. Which one is not usually listed as a regional factor in location decisions?
A)
taxes
B)
nearness to raw materials.
C)
labor costs.
D)
nearness to markets.
6. The tool that is provides demographic information for location analysis is:
A)
factor rating method
B)
geographic information system
C)
center of gravity method
D)
transportation model
7. Location planning for secondary schools would most likely focus on factors of a
A)
region
B)
community
C)
site
8. In which case would the transportation model not be used?
A)
unit shipping costs are all equal within a row.
B)
there is only a single source of supply, and supply and demand are equal.
C)
total supply does not equal total demand.
D)
the number of rows and columns is not equal.
9. Manual techniques for identifying an optimal solution involve but
A)
evaluating empty cells.
B)
an iterative process.
C)
progressive improvements in solutions.
D)
elimination of unimportant variables.
10. Unless a solution is degenerate, the number of occupied cells in a transportation table must equal:
A)
the number of rows plus the number of columns.
B)
the number of rows times the number of columns.
C)
the number of rows plus the number of columns minus one.
D)
none of these.
11. Which one is not a solution technique for a transportation problem?
A)
northwest corner method
B)
VAM
C)
computer solution
D)
transportation table
12. A dummy origin is used when
A)
unit shipping cost is zero.
B)
an alternate optimal solution occurs.
C)
total supply is less than total demand.
D)
the quantity of supply of an origin is unknown.
13. Which one is not an assumption of the transportation model?
A)
All items are the same, regardless of their source.
B)
Unit shipping costs are the same regardless of the quantity shipped.
C)
There is only one mode of transportation between a given origin and destination.
D)
demand.
Both a dummy origin and a dummy destination may be needed to equate supply and
14. Manual solution of transportation problems involves evaluating
A)
completed cells.
B)
empty cells.
C)
all cells.
D)
all cells except dummy cells if there are any.
15. In a manual solution, an alternate optimal solution exists when a cell evaluation is
A)
zero.
B)
positive.
C)
negative.
D)
cannot be determined.
16. Changing a unit cost of a cell will change the total cost of a solution
A)
not necessarily.
B)
always.
C)
never.
17. Other things beings equal, an increase in lead time for inventory orders will result in an increase in
the:
A)
order size
B)
order frequency
C)
reorder point
18. If average demand for an item is 21 units per day, safety stock is 4 units, and lead time is 2 days, the
ROP will be:
A)
84
B)
46
C)
42
D)
none of these
19. In an A-B-C system, B items typically represent about this percentage of items:
A)
90%
B)
75%
C)
50%
D)
30%
E)
15%
20. Which model does not take into account the amount of inventory on hand?
A)
FOI
B)
ROP
C)
EOQ
21. Which product is usually bought on an ROP basis?
A)
textbooks
B)
wedding gifts
C)
sugar
D)
newspaper
22. Which product is usually bought on a fixed interval basis?
A)
textbooks
B)
wedding gifts
C)
sugar
D)
brownies
23. In the two-bin system, the quantity in the second bin is equal to the:
A)
EOQ
B)
ROP
C)
FOI
D)
None of these.
24. Using the basic EOQ model, if the ordering cost doubles, the order quantity will be
A)
double its former value
B)
about 50% of its former value
C)
about 71% of its former value
D)
unaffected
25. If a decrease in unit price causes the average demand rate to increase, which one of these would not
increase?
A)
the EOQ
B)
lead time
C)
annual holding cost
D)
the ROP
E)
safety stock
26. Setup costs are analogous to which one of these costs?
A)
shortage
B)
holding
C)
excess
D)
ordering
27. Which one is not a building block of JIT?
A)
kanban and small lot sizes
B)
personnel/organizational issues
C)
product design
D)
process design
28. The term that relates to matching the output rate with customer demand in a JIT system is:
A)
fill rate
B)
takt time
C)
closed-loop JIT
D)
single-minute exchange of die
29. The ultimate objective in a JIT system is:
A)
maintain low inventory
B)
produce high quality
C)
minimize waste
D)
match demand with a balanced flow
30. Which term connotes waste and inefficiency?
A)
muda
B)
kaizen
C)
poka-yoke
D)
kanban
31. Which term refers to a signaling device?
A)
muda
B)
kaizen
C)
poka-yoke
D)
kanban
32. Which term connotes fail-safe design?
A)
muda
B)
kaizen
C)
poka-yoke
D)
kanban
33. Which one is not included in the list of seven wastes?
A)
overproduction
B)
inefficient work methods
C)
product defects
D)
poor product design
E)
processing wastes.
34. Which one of these is a system for reducing changeover time?
A)
VMI
B)
JIT II
C)
takt time
D)
SMED
E)
JIT
35. A kanban card is used to signal that:
A)
a machine has broken down
B)
a worker is falling behind and needs help.
C)
a defect has occurred
D)
parts are needed
36. Which one of these is a system of lights used to signal problems in a lean production system?
A)
SMED
B)
andon
C)
kanban
D)
jidoka
E)
muda
37. Process design supporting lean production would include:
A)
Backup equipment to guard against equipment failure.
B)
Multiple suppliers to assure parts availability.
C)
Maintain backlogs to assure workers have enough work to keep them busy.
D)
Production flexibility.
38. Which of the following would you not expect to see in a lean production system?
A)
a flexible system
B)
frequent schedule changes
C)
little waste
D)
low setup times
E)
low inventory
39. Lean systems typically use layouts that:
A)
are based on a job shop in order to handle variety
B)
enable moving parts in large lot sizes
C)
facilitate handling somewhat dissimilar products
D)
all of the above
E)
none of the above
40. Which one of these involves managing work flow and queues at work centers?
A)
assignment models
B)
Hungarian method
C)
load charts
D)
I/O control
41. Which approach takes into account job processing times and work center capacities?
A)
load chart
B)
infinite loading
C)
finite loading
42. Which one of these is an optimizing technique?
A)
shortest processing time
B)
first-come, first-served
C)
critical ratio method
D)
assignment method
E)
fixed interval scheduling
43. Which rule minimizes lateness?
A)
FCFS
B)
SPT.
C)
CR
D)
EDD
44. The drum-buffer-rope technique is associated with
A)
bottleneck operations
B)
reservation systems
C)
yield management
D)
appointment systems
45. A possible disadvantage of the SPT priority rule is that it
A)
it ignores processing times.
B)
it tends to make jobs with long processing times wait
C)
it upsets first-come-first served processing
D)
None of these.
46. Which approach is not used for job shop sequencing?
A)
shortest processing time
B)
assignment method
C)
critical ratio
D)
earliest due date
47. MRP is primarily used in this setting:
A)
job shop
B)
continuous
C)
batch
48. Which of these describes lot sizing? Determining
A)
planned order releases
B)
net requirements
C)
when to order
D)
how much to order
E)
None of these.
49. In MRP, planned order receipts must always equal
A)
scheduled receipts
B)
planned order releases
C)
net requirements
D)
gross requirements
50. Which is true about scheduled receipts?
A)
They are orders previously placed, and not yet completed or received.
B)
They must be less than the Net Requirements in any period.
C)
They are included in Planned Order Receipts.
D)
They are added to Gross Requirements to get Net Requirements.
51. In MRP, the listing of all the subassemblies and components needed to produce a unit of an end item
is called the:
A)
material requirements plan
B)
master schedule
C)
bill of materials
D)
master production schedule
52. Which one is not a primary report for MRP?
A)
Planned orders
B)
Order releases.
C)
Changes.
D)
Exceptions.
53. Low level coding refers to
A)
Having low level employees input product codes into computer data banks.
B)
Structuring a bill of materials so that multiple occurrences of an item coincide with the
lowest level that the item occurs.
C)
Using low levels of coding to simplify identification of components in an MRP setup.
D)
None of these.
54. In MRP, which one of these could not generally be a factor in determining the net requirements of a
component?
A)
Planned Order Releases
B)
Scheduled Receipts
C)
Projected on-hand
D)
Gross Requirements
55. Closed loop MRP relates most closely to:
A)
Capacity planning
B)
ERP
C)
Scheduled Receipts
D)
Planned Order Receipts.
56. A key goal of MRP is to:
A)
Avoid cost overruns.
B)
Use Scheduled Receipts only when necessary.
C)
Match supply and demand.
D)
Order early to avoid late-order penalties.
E)
All are key goals.
57. Which one is not included in a list of ERP hidden costs?
A)
Waiting for ROI.
B)
Consultants ad infinitum.
C)
Data analysis and conversion.
D)
High purchase costs.
E)
Integration and testing.
58. Which one would not be a reason for using ERP, or would all be reasons?
A)
Integration of financial data.
B)
Standardize production processes.
C)
Standardize HR information.
D)
Interconnect production, sales, and distribution on a single server.
E)
all are reasons
59. Predictive maintenance involves
A)
B)
expect it.
Performing maintenance activities in a consistent, predictable manner.
Performing maintenance on a regular, predictable schedule so workers know when to
C)
Determining the best time to perform preventive maintenance on equipment.
D)
None of these.
60. Which type of maintenance is not directly included in the total maintenance cost, but might be a
component of total cost?
A)
Preventive
B)
Breakdown
C)
Predictive
D)
None of these
61. Which one is not an assumption of linear programming models?
A)
normality
B)
certainty
C)
divisibility
D)
linearity
E)
nonnegativity
62. In a two-variable problem, a solution occurs at
A)
the intersection of a binding and a nonbinding constraint.
B)
the intersection of two binding constraints.
C)
the point where the objective function becomes parallel to a binding constraint.
63. In a typical maximization problem, at least one constraint is this type:
A)
≤
B)
≥
C)
=
64. Which objective function is parallel to the constraint 4x + 2y ‹ 10?
A)
2x + 4y
B)
1x + 2y
C)
2x + 1y
D)
None of these.
65. The range of feasibility relates to:
A)
a decision variable
B)
constraint coefficients
C)
objective function coefficients
D)
the righthand-side value of a constraint
E)
none of these
66. The range of optimality relates to:
A)
a decision variable
B)
constraint coefficients
C)
objective function coefficients
D)
the righthand-side value of a constraint
E)
none of these
67. Which one of these could have a non-zero surplus?
A)
An objective function.
B)
A binding constraint.
C)
An equality constraint.
D)
A greater than or equal to constraint.
68. Which type of change does not fall into the category of sensitivity analysis?
A)
an objective function coefficient
B)
the objective
C)
a coefficient of a constraint
D)
the RHS of a constraint
69. If a change is within the range of feasibility, which of these will change?
A)
value of the shadow price
B)
value of the objective function
C)
list of basic variables
70. If a change is within the range of optimality for a variable that is in solution, which of these will not
change?
A)
values of the decision variables
B)
value of the objective function
C)
RHS values of constraints
Question 1:
While servicing a car, the mechanics change the lubricant, rotate the tires, tune up the engine, replace
the key components or overhaul certain systems (if necessary), clean the windows, and apply a sticker
on the front windscreen that indicates the date of next service. All these activities are aimed at
avoiding failure or unsafe operation of the automobile and hence come under the scope of:
a) decentralized maintenance
b) preventive maintenance
c) centralized maintenance
d) remedial maintenance
e) contract maintenance
Question 2:
Father of scientific management is:
a) Taylor
b) Gantt
c) Emerson
d) Gilbreth
e) None of the above
Question 3:
Which of the following is true?
a) ERP to MRP1 to MRP2
b) ERP to MRP2 to MPR1
c) MRP1 to MRP2 to ERP
d) All of the above are true
e) All of the above are false
Question 4:
Which of the following is not a reason for holding finished goods as inventory?
a) Production of products as and when the customers demand them can be uneconomical
b) Larger shipments can result in reduced incoming freight costs and material handling costs
c) Backlogs in customer orders may not always be allowed
d) Quantity discounts can result from larger purchase quantities
e) Maintaining stocks result in higher levels of production and lower production costs
Question 5:
Question 6:
Warehouse rental is associated with which of the following costs?
a) Carrying cost
b) Ordering cost
c) Stock-out cost
d) Both a and b
e) Both b and c
Question 7:
When the batch size of production is large and product diversity is few, we use the following type of
process design:
a) cellular manufacturing
b) process focused, job shop
c) product focused dedicated system
d) none of the above
Question 8:
Which of the following is not an advantage of Job Specialization?
a) Improvement in work environment for the workers
b) Ease in recruiting new workers because fewer skills are required
c) Scope for higher degree of mechanization or automation
d) Ease of supervision and training of workers
e) Simpler work instructions and easy productions control being consistence in work assignment
Question 9:
The following are the things forecasted in long range planning:
a) workforce
b) machine capacities
c) new product lines
d) factory capacities
e) both c and d above
Question 10:
The interests of inventory control and production control conflict in some ways. Which of the
following is/are the area(s) in which the focus of the two functions conflict?
A: Cost minimalization
B: Materials availability
C: Materials allocation
a) Only a
b) Only b
c) Only c
d) Both a and b
e) Both a and c
Question 11:
Main objective of cross training of workers is:
a) Can break workers monotony
b) Can be moved from job to job
c) Can perform several jobs
d) Job enrichment
e) All of the above
f) None of the above
Question 12:
The formal business planning process addresses which of the following plan(s)?
a) Long range plan
b) Intermediate range plan
c) Operations plan
d) Both a and b
e) All of the above
Question 13:
Which of the following systems represents the highest level of automation in manufacturing
a) Flexible Manufacturing System
b) Computer Aided System
c) Computer Integrated Manufacturing
d) Automatic Identification System
e) Computer Aided Manufacturing
Question 14:
Which of the following statements are true concerning ‘Product Flexibility’
a) It refers to the ability of the Production System to quickly shift from producing one product to another
b) It is useful for production of custom designed products in small lots
c) Equipment should be designed to meet the production requirements that are close to the peak level of
demand
d) Employees with multiple skills are usually required for this type of setup
a) a, b, and c
b) a, b, and d
c) b, c, and d
d) Both a and b
e) Both b and c
15) In the two-bin system, the quantity in the second bin is equal to the
a) EOQ
b) ROP
c) FOI
d) None of these
16) Which of the following would you not expect to see in a lean production system?
a) a flexible system
b) frequent schedule changes
c) little waste d) low setup times
e) low inventory
17) Identify from the following, the type of Facility Layout in which all the similar equipment or
functions are grouped together and the workers are highly skilled.
a) Process Layout
b) Product Layout
c) Fixed Position Layout
d) Hybrid Layout
e) Grouping Technology Layout
18) Hybrid Layout is commonly used to manufacture which of the following products?
a) Car
b) Television
c) Paper
d) Aircraft
e) Beer
19) If the current operating capacity cannot match the required capacity, Managers can adjust the
requirements by using which of the following strategies?
A) Missing some customer orders and thereby losing sales
B) Adding a shift or making the operators work overtime
C) Hiring some personnel and thereby increasing manpower
a) Only a
b) Only b
c) Only c
d) All of the above
e) Both b and c
20) Achieving the production targets to meet the market demand is important for any organization.
Productivity can be improved by dividing the job into sub tasks and assigning them to workers based
on their skills and capabilities. This concept was adopted by F.W. Taylor in his book “Principles of
scientific management”. This concept is known as: a) Scheduling techniques of employees
b) Scientific motion study of jobs
c) Hawthorne studies
d) Moving assembly line
e) Division of labour
21) Cost of failure is one of the categories of cost of quality which relates to non-conforming and nonperforming products. Which of the following costs is not an internal failure cost?
a) Scrap
b) Losses due to process variability
c) Costs of concessions made to customers
d) Retesting of repaired products
e) Downtime
22) Out of the following materials handling equipment used by a cement manufacturing company,
which one can be classified as a fixed path equipment?
a) Tractors
b) Mobile cranes
c) Trucks
d) Forklifts
e) Conveyors
23) A Kanban card is used to signal that:
a) a machine has broken down
b) a worker is falling behind and needs help
c) a defect has occurred
d) parts are needs
24) A popular tractor manufacturing company uses an MRP (materials Requirement Planning) system
to manage its complex production process that involves many components and sub-assemblies. An
MRP system is used because of the many advantages offered by it. However, it might not be
advantageous in some respects. Which of the following is not an advantage of an MRP system?
a) Low inventory levels, especially for in-process materials
b) Optimized production scheduling
c) Lesser time required for planning and implementing
d) Reduced set-up and tear-down costs
e) Reduced per unit cost of production
25) Service design dimension include: a) The degree of standard of service
b) Degree of customer contact
c) Mix of physical goods and Intangible services
d) All of the above
e) None of the above
26) Which of the following is/are example(s) of ordering cost with respect to the inventories?
a) Warehouse rental
b) Setup cost if produced in-house
c) Postage
d) Both a and b
e) Both b and c
27) The ways for changing long range capacity are: a) Reduction
b) Sell off
c) Expansion
d) Both a and c
e) None of the above
28) Which of the following is a function of Directing?
a) Guide by informing correct work methods
b) Encourage employees to seek perfection in their task
c) Support employees in training programs
d) Issue job assignment and instructions
e) Give more challenging job assignments
29) The length of time required to replenish the inventory for a material, from the time that needs for
additional material is sensed until the new order for the material is in inventory and ready for use is
called:
a) Demand during lead time
b) Inventory level
c) Demand rate
d) Lead time
e) Inventory cycle
30) Which one of these is a system of lights used to signal problems in a lean production system?
a) SMED
b) andon
c) kanban
d) jidoka
e) muda
31) Bright Star Ltd., a bulb manufacturing company has earned reputation in the market because of
long life of its bulb filaments. This is an appropriate example of which of the following quality
dimensions?
a) Conformance
b) Serviceability
c) Features
d) Aesthetics
e) Durability
32) In relation to Service Blue Printing which of the following statement is true?
a) Used in Product Design
b) Used in Design Modeling
c) Used in Design for Maintenance
d) Used to map service processes to identify customer
e) Used in creating blue prints for manufacturing shop
33) The quality inspection team of the client company has been told by the Quality Control Manager
to be more vigilant in checking whether the products manufactured by the contract firm were as per
the agreed upon specifications. This aspect refers to which of the following quality dimensions?
a) Serviceability
b) Performance
c) Conformance
d) Durability
e) Reliability
34. Who among the following is not a Quality Guru?
a) Joseph Juran
b) Edward Deming
c) Phil B. Crosby
d) Henry Ford
e) Kaoru Ishkawa
35. If the current operating capacity cannot match the required capacity. Managers can adjust the
requirements by using which of the following strategies?
a) Missing some customer orders and thereby losing sales
b) Adding a shift or making the operators work overtime
c) Hiring some personnel and thereby increasing manpower
a) Only a
b) Only b
c) Only c
d) All of the above
e) Both b and c
*36. In MRP, planned order receipts must always equal
a) scheduled receipts
b) planned order releases
c) net requirements
d) gross requirements
37. Stationery, cleaning materials and lubricants which are used in operation of an organization, form
part of the: a) Consumables
b) Strategic stocks
c) Work-in-progress
d) Raw materials
e) Finished products
*38. Which reason would not generally be cited for locating in a third world country?
a) nearness to raw materials
b) lower labor costs
c) increased output quality
d) nearness to markets
*39. Which one of these is an optimizing technique?
a) shortest processing time
b) first-come, first-served
c) critical ratio method
d) assignment method
e) fixed interval scheduling
40. Which of the following Techniques of Work Measurement analyzes the work by taking a number of
random observations to see the relative frequency with which various elemental activities take place?
a) Work sampling
b) Historical Analysis
c) Pre-determined motion times
d) Time study
e) Standard data
*41. Which one is not included in the list of seven wastes?
a) overproduction
b) inefficient work methods
c) product defects
d) poor product design
e) processing wastes
42. Due to increase in cost of components and unsatisfactory quality of the components, Adlabs Ltd. Is
planning to expand the ownership of the production and distribution chain towards the source of
supplies. Which of the following is being implemented by Adlabs Ltd.?
a) Modernization and expansion
b) Cellular Manufacturing
c) Horizontal integration
d) Backward integration
e) Forward integration
43. Locating planning for secondary schools would most likely focus on factors of a
a) region
b) community
c) site
44. Manufacturing operation layout main objective is
a) To promote more inventory keeping
b) Provide privacy in work areas
c) Provide enough production capacity
d) Reduce material handling costs
e) Both c and d above
f) None of the above
45. Which of the following Layout is also known as Functional Layout or Job-Shop Layout, involving
grouping of all similar equipment or functions?
a) Product Layout
b) Hybrid Layout
c) Fixed Position Layout
d) Grouping Technology Layout
e) Process Layout
46. The first step in locating planning and analysis is
a) Develop a reasonable alternative
b) Determine the criteria upon which the decision will be made
c) Identify factors that are important
*47. Other things beings equal, an increase in lead time for inventory orders will result in an increase
in the
a) order size
b) order frequency
c) reorder point
48. Using the basis EOQ model, if the ordering cost doubles, the order quantity will be
a) double its former value
b) about 50% of its former value
c) about 71% of its former value
d) unaffected
49. In what way Reliability of a product can be improved?
a) Improve Component Design
b) Improve Assembly Techniques
c) Use Backups
d) Testing
e) All of above
50. Which of the following is/are example(s) of ordering cost with respect to the inventories?
a) Warehouse rental
b) Setup cost if produced in-house
c) Postage
d) Both a and b
e) Both b and c
51. If a decrease in unit price the average demand rate to increase, which one of these would not
increase?
a) the EOQ
b) lead time
c) annual holding cost
d) the ROP
e) safety stock
52. Hybrid Layout is commonly used to manufacture which of the following products?
a) Car
b) Television
c) Paper
d) Aircraft
e) Beer
53. Which of the following is not a characteristic of JIT manufacturing system?
a) Quick and economic setups
b) Continuous improvement
c) Small lot sizes
d) Consistent production rate
e) Maintenance of high volumes of work-in progress inventory
54. Which of the following statement is false regarding Program Evaluation and Review Technique
(PERT)?
a) it provides a graphical display of a project that the users understand the relation
b) it cannot handle situation in which two or more projects have to be planned together
c) it is an ideal technique for strategic level planning
d) it is applicable to any type of single project planning activity in any type of industry
e) it is ideal for planning projects in which activity times are known
55. For a product ‘Xena’, selling price, variable cost and fixed cost are Rs.45/-, Rs.40/- and
Rs.1,00,000/- respectively. At the sales of Rs. 11,25,000/- the profit is
a) Rs. 25,000/b) Rs. 40,000/c) Rs. 50,000/d) Rs. 30,000/e) Rs. 45,000/56. Decisions in operations management consists of: (??)
a) Strategic decisions
b) Operating decisions
c) Control decisions
d) All of the above
e) None of the above
*57. A key goal of MRP is to:
a) avoid cost overruns
b) use scheduled receipts only when necessary
c) match supply and demand
d) order early to avoid late-order penalties
e) all are key goals
58. The objective for warehouse operation layout is:
a) order filling
b) provide for effective stock picking
c) promote efficient loading and unloading of shipment vehicles
d) unit loading
e) All of the above
f) None of the above
59. The objective for a service operation layout is:
a) allow attractive display of merchandise
b) provide for privacy in work areas
c) provide for customer comfort and convenience
d) all of the above
e) none of the above
60. A planning method used to evaluate the feasibility of a master production schedule and to plan for
providing the necessary capacity before the time the execution is scheduled to begin is known as:
a) rough-cut capacity planning
b) materials requirements planning
c) operations planning
d) top-down aggregate planning
e) business planning
61. Which of the following is not a feature of Flexible Manufacturing System (FMS)?
a) It is generally used to produce a variety of parts that have similar processing requirements
b) It offers many advantages such as reduced direct labor, shorter response time, and consistent
quality of products and manufacturing process
c) It is usually suitable for manufacturing products in high volumes
d) It however requires huge capital investments in equipment and planning and control systems
e) It is a form of flexible automation in which several machine tools are linked together by a
Material Handling System with controlling all aspects of the system
62. Which of the following statements are true concerning ‘Product Flexibility’?
a) It refers to the ability of the Production System to quickly shift from producing one product to another
b) It is useful for production of custom designed products in small lots
c) Equipment should be designed to meet the production requirements that are close to the peak level of
demand
d) Employees with multiple skills are usually required for this type of setup
a) a, b, and c
b) a, b, and d
c) b, c, and d
d) both a and b
e) both b and c
63. Which of the following is not an operations management decision?
a) Production layout
b) materials requirement plan
c) outsourcing
d) distribution channels
e) manufacturing location
64. The purchase department wants to procure a specific quantity of inventory items required for use
of in a specific period. For this purpose, the Shop-Floor Manager has to prepare which of the following
documents?
a) planning report
b) authorized order releases
c) schedule of planned order releases
d) change report
e) control report
65. Which of the following statements is not true about vertical integration?
a) always preferable, as there are no risks associated with it
b) results in an increase in profits due to centralized overheads
c) it determines the extent to which the production and distribution chain can be brought under
the ownership of the organization
d) any organization can vertically integrate its activities in two ways forward and backward
e) relieves an organization from a part of its purchasing or marketing functions
66. Hindustan Aeronautics Limited takes order to manufacture spares of aircraft engine. It takes order
from Indian Commercial Airlines and Air force. What kind of finished good inventory policy they should
adopt?
a) Fixed order period
b) produce to stock
c) fixed order quantity
d) economic order quantity
e) produce to order
67. Which term refers to a signaling device?
a) muda
b) kaizen
c) poka-yoke
d) kanban
68. which one is not usually listed as a regional factor in location decisions?
a) taxes
b) nearness to raw materials
c) labor costs
d) nearness to markets
69. which of the following quality functions is most important in the manufacture of aero planes?
a) reliability
b) aesthetic
c) durability
d) serviceability
e) conformance
70. which of the following does not constitute a monetary benefit motivation of worker?
a) gain sharing system
b) piece rate system
c) bonus system
d) title
e) standard hour wage system
71. comparing inventory levels to targets, it falls more appropriately under which of the following
activities?
a) organizing
b) controlling
c) motivating
d) planning
e) coordinating
1. The operations function is that part of every business organization that produces products and/or
delivers services.
A) True
B) False
"The operations function is responsible for converting inputs into products or services."
2. A key goal of business organizations is to achieve a matching of supply and demand.
A) True
B) False
3. Business processes are composed of a series of supplier/customer relationships.
A) True
B) False
"All processes have inputs (from suppliers) and outputs (to customers)."
4. Although there are some basic differences between services and products that must be taken into
account from a managerial standpoint, there are also many similarities between the two.
A) True B) False
5. A systems approach refers to the systems in an organization, such as its accounting system,
transportation system, and the like.
A) True
B) False
"It refers to a "big picture" perspective on decision making that seeks to assess the broad impact of a
decision."
6. The operations and sales functions are line functions, and all other functions are support functions.
A) True
B) False
"Operations is responsibility for producing goods and services, and sales is responsible for selling them."
7. All processes exhibit variation that must be managed.
A) True
B) False
8. Sustainability refers to the ability of a firm to "keep its head above water."
A) True
B) False
"It refers to service and production processes that use resources in ways that do not harm ecological
systems that support both current and future human existence."
9. In the future, operations management will be less important because the economy is becoming
more service oriented, and less manufacturing oriented.
A) True
B) False
"Service operations also require management."
10. A supply chain consists of the trucks, ships, or trains that deliver supplies to companies.
A) True
B) False
“A supply chain is made up of a sequence of organizations and functions that provide goods or services
to customers."
11. Managers rely on metrics to help them manage and control operations.
A) True
B) False
"Without measurements, managers would have no information on how well or poorly things are
going."
12. Viewing decisions in the context of the "big picture" is a key element of this approach.
A) visual/graphic
B) tactical
C) ideal
D) systems
E) focused
13. Measurements taken at various points in the transformation process for control purposes are
called:
A) feedback
B) tracking signals
C) control charts
D) productivity measurement
E) cost control
14. A key difference between the production of goods and the performance of services is:
A) Services generally can't be stored.
B) Manufacturing can be more labor intensive.
C) Service is less profitable than manufacturing.
D) Service work is more interesting than manufacturing work.
E) Service workers require less training than manufacturing workers.
"Performance and delivery of services are often simultaneous."
15. Operations Management includes all of these activities except:
A) Scheduling work.
B) Maintaining quality.
C) Assessing consumer wants and needs.
D) Managing the supply chain.
E) Managing inventories.
"Assessing consumer wants and needs is the responsibility of Marketing."
16. Which type of variation is the result of a deliberate choice of a business?
A) seasonal
B) trend
C) assignable
D) variety
"Organizations decide on how much variety in goods or services to offer its customers."
17. The fact that improvements in a few key factors will have a major impact on operations is
associated with this name:
A) Ford
B) Smith
C) Taylor
D) Pareto
18. The "father of scientific management" was:
A) Gilbreth
B) Hawthorne
C) Taylor
D) Ford
E) Pareto
19. The key to mass production was
A) automation
B) interchangeable parts
C) low-skilled workers
D) high demand for products
"Interchangeable parts enabled division of labor, and a high rate of output."
20. Which one of these is not one of the ethical principles, or are they all principles?
A) rights
B) fairness
C) utilitarian
D) virtue
E) All are principles
21. Which of the following is not true about the systems approach, or are all true?
A) Is almost always beneficial in decision making.
B) Emphasizes interrelationships among subsystems.
C) Helps to achieve efficiency within subsystems.
D) Is essential whenever something is being redesigned or improved.
E) All of the above are true.
"The goal is to optimize the overall system, not subsystems."
22. The Pareto phenomenon is best represented by which of these phrases?
A) Waste not, want not.
B) A stitch in time saves nine.
C) The few and the many.
D) Do it right the first time.
E) Optimize, optimize.
A few factors will be very important for improvement, while many others will be much less important.
23. The need for supply chain management is increasing for all of the following reasons except:
A) labor laws
B) transportation costs
C) competitive pressures
D) increased outsourcing
E) inventory management
"Labor laws do not specifically target supply chains."
24. A key reason that companies resort to outsourcing is to:
A) reduce taxes
B) reduce costs
C) take advantage of supply chain management
D) improve space utilization
E) reduce dependence on foreign oil
"Cost reduction, usually due to lower labor costs."
25. Which one of the following is not an element of supply chain management, or are they all
elements?
A) Customers
B) Inventory
C) Location
D) Design
E) All are elements
MCQ’s
1. There are three basic business strategies: low cost, responsiveness, and differentiation.
A) True
B) False
2. A low price strategy often requires a high volume of standardized goods.
A) True
B) False
3. The supply chain strategy of a company should be aligned with its business strategy.
A) True
B) False
4. A mission statement should answer the question: What business are we in?
A) True
B) False
5. A mission should support the goals of an organization.
A) True
B) False
6. Increased emphasis on pollution control and the environment has caused companies to adopt
environmental scanning.
A) True
B) False
7. Productivity is computed as the ratio of input to output.
A) True
B) False
8. Productivity is not the same as efficiency.
A) True
B) False
9. Productivity gains curb inflation.
A) True
B) False
10. Productivity is particularly important for organizations that use a strategy of low cost, because the
higher the productivity, the lower the cost of the output.
A) True
B) False
11. When measuring productivity, it is important to only include the output that is acceptable.
A) True
B) False
12. A strategy to offer a wide variety of products or services makes matching supply to demand more
difficult.
A) True
B) False
13. Effective management of a supply chain can be a competitive advantage.
A) True
B) False
14. The balanced scorecard approach is helpful for transforming goals into strategies for success.
A) True
B) False
15. A Balanced Scorecard helps focus manager attention on strategic issues and strategy
implementation.
A) True
B) False
16. Which one of these is not one of the four perspectives of the balanced scorecard approach?
A) customers
B) internal processes
C) learning and growth
D) financial
E) competitors
17. An order winner is
A) An employee who got the order.
B) The opposite of an order loser.
C) A superior factor
D) The biggest order.
18. Order qualifiers refers to
A) core competencies.
B) high quality.
C) minimal standards.
D) low prices.
19. What are an organization's goals based on?
A) Its strategies.
B) Its competitors' strategies.
C) Its mission.
D) Product or service requirements.
20. A mission is designed to support:
A) strategies
B) tactics
C) operations
D) all of these
E) none of these
21. Which one of the following will always lead to an increase in productivity?
A) Increase inputs and increase outputs.
B) Increase outputs and hold inputs constant.
C) Decrease both inputs and outputs.
22. The external elements of an SWOT analysis are
(A) S and W (B) S and O (C) W and O (D) T and O (E) W and T
1. It is necessary to monitor forecast errors to check for nonrandom patterns in forecast errors.
A) True
B) False
Feedback: The presence of patterns suggests the potential for reducing forecast errors.
2. Forecasts for groups of items tend to be more accurate than forecasts for individual items.
A) True
B) False
Feedback: High and low values offset each other.
3. Quantitative forecasting techniques are generally superior to qualitative forecasting techniques.
A) True
B) False
Depending on the situation, one might be the better choice, or both might be used in combination.
4. Due to randomness, forecasts cannot be expected to be completely accurate.
A) True
B) False
Feedback: Randomness is always present.
5. Error measures such as MAD and MSE should not be used with a naïve forecast.
A) True
B) False
The measures are applicable for any series of errors.
6. It is reasonable to expect that about half of the errors of a good forecast will be positive, and half
negative.
A) True
B) False
Feedback: Otherwise would imply a biased forecast.
7. A tracking signal can be useful in detecting bias in forecast errors.
A) True
B) False
Feedback: That is the main purpose of a tracking signal.
8. Forecast accuracy generally increases as the forecast horizon increases because shorter time
horizons tend to be more influenced by random variations.
A) True
B) False
Feedback: Accuracy tends to decrease as the time horizon increases.
9. Naïve forecasts can be classified as subjective forecasts.
A) True
B) False
Feedback: They are based on quantitative time series data.
10. Forecasts based on consumer surveys are classified as quantitative because they use numerical
data.
A) True
B) False
Feedback: They are based on consumer opinions, so they are qualitative forecasts.
11. If the sum of forecast errors for a series of forecasts is zero, that implies excellent forecasting.
A) True
B) False
Feedback: The forecast errors may be large, but positives and negatives offset each other.
12. MAD is used in computing values of a tracking signal.
A) True
B) False
Feedback: The tracking signal in any period is the ratio of the cumulative error to the MAD.
13. When sales in a particular time period are above average for the year, a seasonal relative that is
less than 1.00 is used to bring that period's sales into line.
A) True
B) False
The relative would be greater than 1.00 to reflect above-average sales.
14. The SA method for computing seasonal relatives should not be used if seasonal variations are
large relative the slope of the data.
A) True
B) False
Generally, the SA method should not be used if there is a slope unless seasonal variations are large
relative to the slope.
15. Which exponential smoothing factor would produce the most smoothing?
A) 1.0
B) 0.3
C) 0.1
D) 0.0
Feedback: The value closest to zero, but not zero, which would keep the forecasts unchanging.
16. Averaging techniques are useful for:
A) distinguishing between random and non-random variations
B) smoothing out fluctuations in time series
C) both (a) and (b)
D) providing technically accurate forecasts
E) all of the above
17. Which one of the following is a qualitative forecasting technique?
A) Associative
B) Naïve
C) Moving average
D) Exponential smoothing
E) Delphi
Feedback: The others are all quantitative techniques
18. Which approach to forecasting uses a series of questionnaires?
A) Associative
B) Naïve
C) Moving average
D) Exponential smoothing
E) Delphi
19. Which term is most closely associated with simple exponential smoothing?
A) seasonal relative
B) moving average
C) trend
D) predictor variable
20. Which is not a typical approach for improving forecasts?
A) search for a better technique
B) shorten product development time
C) shorten lead times
D) build flexibility into the system
Flexibility won't improve a forecast, but may help to overcome a poor forecast.
21. Which would not generally be considered as a feature common to all forecasts?
A) Assumption of a stable underlying causal system
B) Actual results will differ somewhat from predicted values.
C) Historical data are available on which to base the forecast.
D) Forecasts for groups of items tend to be more accurate than forecasts for individual items.
E) Accuracy decreases as the time horizon increases.
Feedback: Historical data is not always available (e.g., new products or new services).
22. If an analyst wants to make a moving average more responsive to change, the analyst should
A) increase the number of data points in the average
B) decrease the number of data points in the average
C) increase the value of the smoothing constant
D) decrease the value of the smoothing constant
E) None of these
The fewer the data points, the more responsive the moving average will be to new data.
23. Which phrase or term does not relate to the Delphi method of forecasting?
A) moving average
B) consensus
C) long range
D) questionnaire
Feedback: Moving average requires a sequence of numerical data, something that is not present.
24. What is the MAD for this set of data? –1 +3 0 –2 +3
A) 1.0
B) 1.8 (9/5 = 1.8)
C) 2.5
D) 3.0
E) 9.0
25. What is the MSE for this set of data? –1 +3 0 –2 +3
A) 1.8
B) 3.0
C) 9.0
D) 23
E) None of these
MSE = 23/4 = 5.75.
26. Which term is most closely associated with a tracking signal?
A) MBA
B) MSE
C) MAD
D) MAPE
Feedback: A tracking signal is the cumulative error divided by the MAD.
27. Which one would be considered a reason for using a salesforce composite forecast?
A) Sales people often communicate with each other.
B) They are not likely to be affected by recent events
C) They are very aware of the importance of forecast accuracy.
D) They are often aware of customers' future plans.
E) Better forecasts mean more money for them.
Feedback: They have direct contact with customers.
1. Manufacturability is not a key consideration in product design.
A) True
B) False
2. Modular design can be useful for mass customization.
A) True
B) False
3. One cause of delayed differentiation is equipment breakdown.
A) True
B) False
4. Some products do not seem to go through life cycles.
A) True
B) False
5. Recycling and remanufacturing are basically the same.
A) True
B) False
6. Service blueprints are very useful when constructing a service facility.
A) True
B) False
7. Early freezing of a product design can be an advantage of standardization.
A) True
B) False
8. Standardization and modular design are at the opposite ends of the product design spectrum.
A) True
B) False
9. End-of-life (EOL) programs provide a caring alternative for patients who are near the end of their
lives.
A) True
B) False
10. Products usually have life cycles, but services usually do not.
A) True
B) False
11. "Creeping featurism" can be both a source of competitive advantage and a source of production
difficulty.
A) True
B) False
12. The Kano model illustrates that "wow" features can become "expected" features over time.
A) True
B) False
13. Serviceability is the capability of an organization to provide a service at an acceptable cost or
profit.
A) True
B) False
14. The goal of life cycle assessment is to choose products and services that have the least
environmental impact while still taking into account economic considerations.
A) True
B) False
15. Which name is most closely associated with robust design?
A) Taguchi
B) Ford
C) Smith
D) McCaskey
E) McGinnis
16. Which technique is associated with mass customization?
A) a moving assembly line
B) delayed differentiation
C) use of a product-process matrix
D) concurrent engineering
E) component commonality
17. Which one of these specifies that a product must be suitable for its intended use?
A) Federal product guidelines
B) NAFTA
C) The Uniform Commercial Code
D) The International Bureau of Standards
18. The term "voice of the customer" is associated with:
A) Nokia cell phones
B) The Taguchi approach
C) Concurrent engineering
D) Quality function deployment
E) Service blueprinting
19. Delayed differentiation can be useful for
A) mass customization
B) outsourcing
C) postponing calculus solutions
D) production lines
20. The term associated with incorporating customer ideas in product design is:
A) the Taguchi approach
B) quality function deployment
C) mass customization
D) value analysis
21. Which one of these statements about modular design is false?
A) It decreases the amount of inventory items.
B) It simplifies product repairs.
C) It decreases product variety.
D) It reduces production complexity.
22. Which term most closely relates to remanufacturing?
A) redesigning
B) recycling
C) resorting
D) reselling
23. The process of dismantling and examining a competitor's product to get design ideas would be
regarded as
A) unethical
B) benchmarking
C) illegal
D) reverse engineering
24. Service design often differs from product design for which one of these considerations?
A) Its life cycles.
B) Customer interface.
C) Cost and value. (D) Legal environment.
1. If a system is composed a single component, system reliability might still be less than the
component's.
A) True
B) False
2. The probability that a system will function is equal to the sum of the probabilities of its components.
A) True
B) False
3. Reliability is typically related to a specified set of operating conditions.
A) True
B) False
4. Redundancy is product design is not often used because it tends to decrease reliability.
A) True
B) False
5. If a system is composed of a series of independent components, the reliability of the system cannot
be greater than the reliability of the least reliable component.
A) True
B) False
6. If a system is composed of a series of independent components, each with a reliability of 95%, the
reliability of the system will be 95%.
A) True
B) False
7. The term available refers to the availability of repair workers in the event of equipment failure.
A) True
B) False
8. A machine operates for an average of 9 hours between the need for service, which takes an average
of 1 hour. The machine's availability is:
A) 9 hours
B) 8 hours
C) .90
D) 1/9
9. A system is made up of two components, each with probability of operating correctly of .60. The
probability that the system will operate correctly is:
A) .60
B) .36
C) .24 (D) .16
10. Adding a component to a system will affect reliability in this way:
A) It will increase.
B) It will decrease.
C) It will not change.
D) All are possible.
11. A system is composed of one part and a backup, each with a probability of correctly functioning
of .60. The backup automatically kicks in (100%) chance) if the component fails. The probability of the
system correctly functioning is:
A) .84
B) .60
C) .36
D) .24
12. Mean repair time (MRT) is directly relevant to which one of the following?
A) MTBF
B) Availability
C) System reliability
D) Redundancy
1. It is usually a good idea to keep capacity planning separate from product and service design so that
the issues in each area don't become intertwined.
A) True
B) False
2. Effective capacity is always less than design capacity.
A) True
B) False
3. Design capacity is the maximum output rate or service rate an operation is designed for.
A) True
B) False
4. Increasing the capacity of a bottleneck operation by 10% will always increase the capacity of the
system by 10%.
A) True
B) False
5. Increasing quality will cause an increase in productivity, and hence, and increase in capacity.
A) True
B) False
6. Increasing the capacity of operations that follow a bottleneck operation will improve productivity
because it will help those operation to overcome the bottleneck effect.
A) True
B) False
7. If capacity increases require a long time, a following strategy may be the best option.
A) True
B) False
8. Efficiency can be defined as the ratio of actual output to effective capacity.
A) True
B) False
9. Utilization can be defined as the ratio of design capacity to actual output.
A) True
B) False
10. A capacity cushion is the difference between capacity and expected demand.
A) True
B) False
11. The term economies of scale is used to describe the phenomenon whereby increases in the output
rate result in a decrease in unit costs.
A) True
B) False
12. Concepts such as cash flow and present value are important financial measures for analyzing
capacity alternatives.
A) True
B) False
13. The breakeven point occurs at an output where total cost and total profit are equal.
A) True
B) False
14. The point at which a decision maker is indifferent between two alternatives means both
alternatives are optimal.
A) True
B) False
15. Capacity planners must keep a narrow focus in order to stay on track.
A) True
B) False
16. Which one of these is not a determinant of effective capacity, or are they all determinants?
A) Facilities
B) Quality capabilities
C) Job Design
D) Supply chain
E) All are factors
17. Which one of these does not enhance developing capacity alternatives?
A) Designing flexibility into the system.
B) Taking a "big picture" approach.
C) Staying focused on quantitative factors.
D) Smoothing capacity requirements.
18. Which one of these is the primary input in capacity planning?
A) Overall cost estimates.
B) Supply chain capabilities. (C) Competitors' strengths.
D) Past successes or failures. (E) Demand forecasts.
19. Which one of these is not necessarily an important factor in planning service capacity?
A) The inability to store services.
B) The need to be near customers.
C) Demand forecasts.
D) Demand volatility.
20. Which one of these is not a reason for diseconomies of scale?
A) Fixed costs are spread over more units.
B) Distribution costs increase.
C) Complexity increases costs.
D) Inflexibility may be an issue.
1. A key reason for poor decisions is failure to identify the problem.
A) True
B) False
2. Optimization for an organization may mean suboptimization for some departments.
A) True
B) False
3. A decision environment of uncertainty has probabilities assigned to each state of nature.
A) True
B) False There are no probabilities
4. If a decision maker is using a maximax approach, the decision maker would choose the alternative
that has the best possible payoff.
A) True
B) False
5. If a decision maker is using a maximin approach, the decision maker would choose the alternative
that has the best of the worst possible payoffs.
A) True
B) False
6. A decision maker who uses the minimax regret approach is focusing on avoiding the "If only I had
chosen…" effect. (A) True (B) False
7. Expected monetary value is the criterion that is useful for decision making under uncertainty.
A) True
B) False It requires probabilities, and it is used for decision making under risk.
8. The expected monetary value can be computed using a decision tree diagram
A) True
B) False
9. Sensitivity analysis is sometimes used to determine the expected value of perfect information.
A) True
B) False
The EVPI is the difference between the expected payoff under certainty and the expected payoff under
risk.
10. The range of probability for which an alternative has the best expected value can be determined
using a decision tree.
A) True
B) False The range can be determined using sensitivity analysis.
11. The EVPI is equal to the expected financial value of the regrets for the optimal decision under risk.
A) True
B) False
12. Which approach would be used by an optimistic (or desperate) decision maker?
A) maximin
B) maximax Choose the alternative with the best possible outcome.
C) minimax regret
D) EMV
13. Which approach would be used by a pessimistic decision maker?
A) maximin Choose the alternative that has the best "worst" outcome.
B) maximax
C) minimax regret
D) EMV
14. Which approach requires having probabilities for the states of nature?
A) maximin
B) maximax
C) minimax regret
D) EMV The expected monetary value approach requires probabilities.
15. The maximax choice would be:
A) Buy Buy has the highest possible payoff.
B) Rent (C) Lease
16. The maximin choice would be:
A) Buy
B) Rent
C) Lease
Lease has the best of the worst possible payoffs (55).
17. The minimax regret choice would be:
A) Buy
B) Rent
C) Lease
The minimum regret would be 55 - 60 = -5.
18. If the probability of Business Grows is 0.40, which alternative would be chosen using EMV?
A) Buy
B) Rent
C) Lease
Note; P (not grow) = 0.60. The EMV's are: Buy = 30, Rent = 44, and Lease = 57.
19. If the probability of Business Grows is 0.40, what is the EVPI?
A) 57
B) 44
C) 42
D) 36
0.60 x 90 + 0.40 x 55 - 57 = 42.
1. The goal in process selection is to match processing capability with expected demand.
A) True
B) False
2. Two benefits of cellular manufacturing are low cost and flexibility.
A) True
B) False
Feedback: Cellular provides fast processing, reduced setup time, and less work in process which result in
low cost. It also allows for production is small batches, which provides a degree of flexibility.
3. Process layouts are common in non-manufacturing environments.
A) True
B) False
Feedback: Departments are commonly found in service and retail environments.
4. Departments are typical in product layouts.
A) True
B) False
Feedback: Departments are typical in process (intermittent) layouts.
5. Intermittent processing systems generally tend to have special purpose equipment.
A) True
B) False
Feedback: Continuous systems tend to have special-purpose equipment.
6. For repetitive processing, machines of the same type are grouped into departments.
A) True
B) False
Feedback: For repetitive processing, machines are typically arranged in work stations along a production
or assembly line.
7. A service process matrix is a tool that can be useful for organizations contemplating strategic
changes in service operations.
A) True
B) False
8. Service systems do not lend themselves to automation. That is why you do not encounter
automated services.
A) True
B) False
Feedback: Examples include ATM machines, electronic ticket sales, electronic fund transfer, electronic
travel reservations, etc.
9. The degree of customer contact and the degree of customization are two key factors in service
layout design
A) True
B) False
10. Product layouts usually require less-skilled workers than process layouts.
A) True
B) False
Feedback: Product layouts benefit from division of labor, so workers have very narrow tasks.
11. Process layouts tend to have lower equipment utilization than product layouts.
A) True
B) False
Feedback: Greater variety results in lower utilization rates for some equipment.
12. The term balance delay refers to the percentage of idle time for a line.
A) True
B) False
13. The minimum cycle time of a line is equal to the time of the shortest task.
A) True
B) False
Feedback: It is equal to the time of the longest task.
14. Cycle time is the time allowed at each work station to complete a set of tasks.
A) True
B) False
15. A DVD player would most likely be repaired in this type of layout:
A) fixed position
B) hybrid
C) product
D) process
16. Which system has the least flexibility?
A) job shop
B) batch
C) assembly
D) continuous
Feedback: There is little need for flexibility in a continuous system.
17. Which type of operation would be most closely associated with division of labor?
A) job shop
B) batch
C) assembly
D) continuous
Feedback: Division of labor is the basis for an assembly line operation.
18. The type of layout that would be used to build a submarine is:
A) fixed-position
B) product
C) process
D) aquatic
Feedback: Workers, materials, and equipment come to the location of the product.
19. Which processing system would be the least likely choice for producing a pair of shoes?
A) assembly
B) batch
C) continuous
D) job shop
Feedback: Continuous involves a flow (e.g., refining, water treatment). Shoes would typically be
produced on an assembly line or in batches. However, a specialty shoe would be crafted in a job shop.
20. Which two types of processing systems would most likely be used to produce iPods?
A) continuous or assembly
B) assembly or batch
C) batch or job shop
21. Product or service profiling links key product or service requirements to
A) market conditions
B) pricing strategies
C) process capabilities
D) schedule changes
E) order sizes
22. Which one does not relate to designing process layouts?
A) Minimizing transportation costs.
B) Minimizing distance traveled.
C) Focusing on closeness ratings.
D) Equalizing times of work stations.
Feedback: Equalizing times relates to product layouts and line balancing.
23. In a Muther closeness grid, which symbol is used for a location if closeness isn't important?
A) A
B) E
C) I
D) O
E) U
Feedback: Unimportant
24. In a Muther closeness grid, which symbol reflects the greatest important for closeness?
A) A
B) E
C) I
D) O
E) U
Feedback: Absolutely necessary.
25. Which one of the following involves a group of machines that involve supervisory computer control
and automatic material handling?
A) N/C machines
B) Computer-aided manufacturing
C) Cellular manufacturing
D) Group technology
E) Flexible manufacturing system
26. Group technology is often related to which one of the following?
A) cellular manufacturing
B) product layout
C) combination layouts
D) none of these
Feedback: Cellular manufacturing often involves processing of part families (grouping).
MCQ’s
1. The term specialization refers to work that has a narrow focus.
A) True
B) False
2. Job design is mainly concerned with worker efficiency.
A) True
B) False
Feedback: It also places emphasis on human factors.
3. Ergonomics is closely related to time study.
A) True
B) False
Feedback: Ergonomics (or human factors) is the scientific discipline concerned with the understanding of
interactions among humans and other elements of a system. It is closely related to job design.
4. Job enrichment involves giving workers responsibilities for planning and coordinating tasks.
A) True
B) False
5. Gilbreth was a pioneer in time study.
A) True
B) False
Feedback: He is known as "The father of motion study."
6. Micromotion is used in a lab to break down the elements of a methods analysis into very fine details
for further study.
A) True
B) False
Feedback: It involves the use of video to capture and study fine details of motions.
7. Job rotation and job enrichment both involve horizontal loading.
A) True
B) False
Feedback: Horizontal loading means increasing a worker's share of a total task; it is job enrichment. Job
rotation is simple having workers periodically changing jobs.
8. Self-directed teams are allowed to make some changes in their work processes.
A) True
B) False
9. Methods analyses involves analyzing how a job is done.
A) True
B) False
10. One disadvantage of a profit-sharing plan is that it is based on a single objective.
A) True
B) False
Feedback: The single objective is annual profit. Other objectives that may be important such as quality,
productivity, cost reduction, etc., aren't included.
11. A flow process chart is often used in conjunction with a motion study.
A) True
B) False
Feedback: It is used as part of methods analysis to examine the overall sequence of worker movements
or the flow of materials.
12. A standard time pertains to a specified set of working conditions, tools and materials, raw
materials, and workplace arrangement.
A) True
B) False
13. In time study, the observed time (OT) is the average of recorded times.
A) True
B) False
14. In time study, a normal time (NT) can be more than the observed time (OT).
A) True
B) False
Feedback: NT = OT x Performance Rating. If the performance rating is greater than 1.00, the NT will be
greater than the OT.
15. Knowledge-based pay systems are used to reward workers who increase their skills through
training.
A) True
B) False
16. OSHA is concerned with
A) worker compensation
B) worker safety
C) union issues
D) treating workers fairly
Feedback: OSHA stands for Occupational Safety and Health Administration.
17. Job rotation and job enlargement are most likely to occur as a part of
A) process selection
B) methods analysis
C) job design
D) motion study
18. The technique most known for its use of a stop watch is:
A) work sampling
B) time study
C) methods analysis
D) motion study
19. The term "therblig" refers to
A) stopwatch reading
B) process delay
C) basic elemental motion
D) fraction (.06) of a minute
20. Therbligs are most closely related to:
A) time study
B) motion study
C) methods analysis
D) worker safety
Feedback: A therblig is a basic elemental motion.
21. An analyst who wanted to estimate the percentage of time a machine is idle would use probably
use this method:
A) work sampling
B) time study
C) predetermined time standards
D) methods analysis
22. An analyst who wanted to estimate the proportion of time a worker is involved in a certain activity
would use probably use this method:
A) work sampling
B) time study
C) predetermined time standards
D) methods analysis
23. A standard time is equal to the normal time adjusted for the:
A) performance rating
B) allowance factor
C) the learning effects
D) the cost of living index
E) time in rank
Feedback: St = NT x AF.
24. Which one is generally not true of work sampling?
A) There is little or no disruption of work.
B) Workers tend to be resentful because it is less accurate than time study.
C) It is not well suited for short tasks.
D) There is less detail about the job than with time study.
Feedback: Workers are often more resentful about time study.
25. Which one is generally not true of time study?
A) A stopwatch is required.
B) Only one or a few observations are needed.
C) There is more detail about a job than with work sampling.
D) It is more costly than work sampling.
Feedback: More than a few observations are generally needed to obtain an accurate time estimate.
1. The reduction in time per repetition is a function of cumulative number of repetitions.
A) True
B) False
Every doubling of cumulative repetitions results in a constant percentage decrease in repetition time.
2. If the learning curve applies, there will be a constant time decrease with every doubling in the
number of repetitions.
A) True
B) False
Feedback: Instead, there should be a constant percentage decrease in time.
3. A learning rate of 70% implies an exceptionally rapid rate of learning.
A) True
B) False
Feedback: This would result in a 30% time decrease with each doubling of output.
4. If a job has a 90% learning curve, and the time for the second unit was 10 minutes, the estimated
time for the third unit would be 9 minutes.
A) True
B) False
Feedback: Nine minutes is the estimated time for the fourth unit.
5. Learning time reductions are due to a combination of worker learning and management
contributions.
A) True
B) False
Feedback: Management contributions can include preproduction planning, motivation, etc.
6. A learning percentage of 100% implies no learning at all.
A) True
B) False
7. The smaller the learning percentage, the greater the time reduction that can be expected.
A) True
B) False
Feedback: The reduction is equal to 100% minus the learning percentage.
8. The learning curve can be seen in any repetitive work environment.
A) True
B) False
Feedback: Assembly lines are often machine paced, and division of labor results in tasks with little
complexity, so learning effects wouldn't be evident.
9. A job has a 80% learning curve. If the first unit took 100 hours to complete, the time for the fourth
unit should be closest to which time?
A) 80
B) 70
C) 65
D) 55
Feedback: The estimated time for the fourth unit is: 100 x .80 x .80 = 64 hours
10. The first unit of a job with a learning rate of 80% took 5 hours. The time for the third unit should
be:
A) less than 3.2 hours
B) about 3.2 hours
C) more than 3.2 hours
Feedback: T4 should be 5 x .80 x .80 = 3.2. So T3 should be greater than 3.2.
11. A manager wants to estimate the learning percentage for a case where the time for the first
repetition was 10 hours and the time for the fourth was 5 hours. The learning percentage should be
about:
A) 85%
B) 80%
C) 75%
D) 70%
Feedback: The closest is 70%: 10 hours x .70 x .70 = 4.9 hours, or about 5 hours.
12. If work has a 70% learning curve, and the first unit took 10 hours, the third unit should take about
this many hours (no calculators):
A) 7.0
B) 6.2
C) 5.8
D) 4.9
Feedback: We know the time is between 7.0 and 4.9, and that the time reduction from 7.0 should be
greater than the next reduction to 4.9, so 5.8 would be the better approximation than 6.2.
13. For which activity would learning curves be the least useful?
A) budgeting
B) negotiated purchased
C) scheduling
D) location planning
E) new product pricing
Feedback: Each of the other choices has a degree of cost or time reduction over time.
14. The first unit of an eight-unit job took 64 minutes. If the work have a 75% learning curve, which is
your estimate of the minutes that will be needed for the last unit?
A) 27
B) 36
C) 48
D) None of these.
Feedback: T2 = 64 x .75 = 48; T4 = 48 x ,75 = 36; and T8 = 36 x .75 = 27.
15. The third unit of a job that has a 90% learning curve took 20 hours. The sixth unit should take
about how many hours?
A) 18
B) 17
C) 16
D) 15
E) None of these.
Feedback: T6 = T3 x .90 = 20 x .90 = 18
16. Given these unit completion times, what learning would be appropriate?
A) A
B) B
C) C
D) D
E) E
Feedback: The correct rate is 78%: T4 = 12 x .LR x LR = 7.30; solve for LR.
17. If he time for the fourth units of a job was about half the time of the first unit, the learning percent
is
A) 90%
B) 80%
C) 70%
D) 60%
Feedback: T4 = T1 x .70 x .70 = T1 x .49, or about 50% of T1.
1. The location of many businesses is often a function of where the originator was located at the time
the business was started.
A) True
B) False
2. Zoning and land costs can be key regional considerations in location analysis.
A) True
B) False
Feedback: They are site factors.
3. Regional factors can include location of markets or location of raw materials.
A) True
B) False
4. Factors used in location analysis for services and manufacturing are often quite similar.
A) True
B) False Feedback: The factors are usually quite different.
5. The benefits of having global locations generally outweigh the disadvantages:
A) True
B) False Feedback: Each case is different and must be analyzed.
6. Companies may seek global locations to overcome miscommunication and cultural differences.
A) True
B) False
Feedback: These are two risks that can be associated with global locations
7. Factor rating includes both qualitative and quantitative inputs.
A) True
B) False
8. In the factor rating system, the most important factor is given a rating of 10, and less important
factors are given lower ratings.
A) True
B) False
Feedback: The sum of all weights is 1.00.
9. The center of gravity method is used to minimize travel distances.
A) True
B) False
10. A breakeven point in location analysis is where location alternatives have the same total cost.
A) True
B) False
Feedback: It is the output at which total costs are met.
11. The transportation model is used to decide which form of transportation will minimize costs.
A) True
B) False
Feedback: It is used to determine optimal shipping/receiving routes.
12. The center of gravity method treats shipping cost as a linear function of the shipping distance.
A) True
B) False
13. A microfactory is a small factory that has a narrow product focus and is located near major
markets.
A) True
B) False
14. Climate and taxes are often key site considerations in location planning.
A) True
B) False
Feedback: They are typically regional factors.
15. When businesses of the same type locate near similar businesses, that is referred to as clustering.
A) True
B) False
16. In location analysis, service organizations tend to be revenue focused, whereas manufacturers
tend to be cost focused.
A) True
B) False
17. The first step in location planning and analysis is:
A) Develop a reasonable set of alternatives.
B) Determine the criteria upon which the decision will be made.
C) Identify factors that are important.
Feedback: Every step in the process must relate to the decision criteria.
18. Which statement about location decisions is not true?
A) Mistakes can be difficult to overcome.
B) The goal is to find the optimal location.
C) Both fixed and variable costs can be affected.
D) Decisions are often long term.
Feedback: The goal is to identify a good location; with so many variables, unknowns, and choices, the
ability to identify an optimal location is minimal.
19. Multiple plant manufacturing strategies include all of these except:
A) product plant
B) process plant
C) market area plant.
D) core plant
20. Which reason would not generally be cited for locating in a third world country?
A) nearness to raw materials.
B) lower labor costs.
C) increased output quality.
D) nearness to markets.
Feedback: Third world countries tend to be less sophisticated in the area of quality.
21. Which one is not usually listed as a regional factor in location decisions?
A) taxes
B) nearness to raw materials.
C) labor costs.
D) nearness to markets.
Feedback: Taxes are often state/community factors.
22. The tool that is provides demographic information for location analysis is:
A) factor rating method
B) geographic information system
C) center of gravity method
D) transportation model
23. Location planning for secondary schools would most likely focus on factors of a
A) region
B) community
C) site
Feedback: Region and community are predetermined.
1. The transportation problem involves identifying a minimum-cost distribution plan.
A) True
B) False
2. Supply and demand are constraints in the transportation model.
A) True
B) False
3. The number of origins and the number of destinations in a transportation problem must be equal.
A) True
B) False
4. Unit shipping costs are the coefficients of the objective function.
A) True
B) False
5. Total supply and total demand are equal in a transportation model.
A) True
B) False
6. There is one constraint for each supply location and one constraint for each demand location.
A) True
B) False
7. In a transportation table, the rows represent demand and the columns represent supply.
A) True
B) False
Feedback: Just the opposite.
8. The transportation model assumes that items to be shipped are homogeneous.
A) True
B) False
9. If a quantity is assigned to a dummy destination if can be shipped at zero cost per unit.
A) True
B) False
Feedback: The quantity is not shipped.
10. Unit shipping costs may be nonlinear, but all other values are assumed to be linear.
A) True
B) False
Feedback: Costs are assumed to be linear as well.
11. The transportation model has applications besides location problems.
A) True
B) False
12. A dummy origin is used when
A) unit shipping cost is zero.
B) an alternate optimal solution occurs.
C) total supply is less than total demand.
D) the quantity of supply of an origin is unknown.
13. Which one is not an assumption of the transportation model?
A) All items are the same, regardless of their source.
B) Unit shipping costs are the same regardless of the quantity shipped.
C) There is only one mode of transportation between a given origin and destination.
D) Both a dummy origin and a dummy destination may be needed to equate supply and
demand.
Feedback: One dummy is the most that can be used
14. Manual solution of a transportation problems involves evaluating
A) completed cells.
B) empty cells.
C) all cells.
D) all cells except dummy cells if there are any.
15. In a manual solution, an alternate optimal solution exists when a cell evaluation is
A) zero.
B) positive.
C) negative.
D) cannot be determined.
16. Changing a unit cost of a cell will change the total cost of a solution
A) not necessarily.
B) always.
C) never.
Feedback: It depends on whether any units are assigned to that cell.
17. In which case would the transportation model not be used?
A) unit shipping costs are all equal within a row.
B) there is only a single source of supply, and supply and demand are equal.
C) total supply does not equal total demand.
D) the number of rows and columns is not equal.
18. Manual techniques for identifying an optimal solution involve but
A) evaluating empty cells.
B) an iterative process.
C) progressive improvements in solutions.
D) elimination of unimportant variables.
19. Unless a solution is degenerate, the number of occupied cells in a transportation table must equal:
A) the number of rows plus the number of columns.
B) the number of rows times the number of columns.
C) the number of rows plus the number of columns minus one.
D) none of these.
20. Which one is not a solution technique for a transportation problem?
A) northwest corner method
B) VAM
C) computer solution
D) transportation table
Feedback: A transportation table may be used to find a solution, but it is not a solution technique.
1. MRP is used for independent demand items.
A) True
B) False
Feedback: It is used for dependent demand items (i.e., assembled goods).
2. MRP applications are limited to manufacturing; services do not use it.
A) True
B) False
3. Pegging can be used to identify the supplier that provided a specific component of an item.
A) True
B) False
Feedback: It is used to show what parent items have generated the demand for a component.
4. With lot-for-lot ordering, planned order releases equal net requirements.
A) True
B) False
5. Planned order releases and planned order receipts must be equal.
A) True
B) False
6. Planned order releases differ from planned order receipts in terms of timing, but not in terms of
quantity.
A) True
B) False
7. A bill of materials contains a listing of all the materials needed to produce an item.
A) True
B) False
8. Capacity requirements planning involves determining short-range capacity requirements.
A) True
B) False
9. A regenerative system updates MRP records continuously.
A) True
B) False
Feedback: Records are updated periodically.
10. MRP II is an expanded approach to production resource planning.
A) True
B) False
11. Backflushing refers to cleaning out the system in preparation for the next job.
A) True
B) False
Feedback: It refers to exploding an end items bill of materials to determine the quantities of
components that were used to assemble it.
12. The planned order releases at each level of MRP are one determinant of the gross requirements at
the next lower level.
A) True (B) False
13. MRP is typically part of an ERP system.
A) True
B) False
14. MRP is primarily used in this setting:
A) job shop
B) continuous
C) batch
15. Which of these describes lot sizing? Determining
A) planned order releases
B) net requirements
C) when to order
D) how much to order
E) None of these.
16. In MRP, planned order receipts must always equal
A) scheduled receipts
B) planned order releases
C) net requirements
D) gross requirements
17. Which is true about scheduled receipts?
A) They are orders previously placed, and not yet completed or received.
B) They must be less than the Net Requirements in any period.
C) They are included in Planned Order Receipts.
D) They are added to Gross Requirements to get Net Requirements.
18. In MRP, the listing of all the subassemblies and components needed to produce a unit of an end
item is called the:
A) material requirements plan
B) master schedule
C) bill of materials
D) master production schedule
19. Which one is not a primary report for MRP?
A) Planned orders
B) Order releases.
C) Changes.
D) Exceptions.
Feedback: Exception reports are secondary reports.
20. Low level coding refers to
A) Having low level employees input product codes into computer data banks.
B) Structuring a bill of materials so that multiple occurrences of an item coincide with the lowest
level that the item occurs.
C) Using low levels of coding to simplify identification of components in an MRP setup.
D) None of these.
21. In MRP, which one of these could not generally be a factor in determining the net requirements of
a component?
A) Planned Order Releases
B) Scheduled Receipts
C) Projected on-hand
D) Gross Requirements
Feedback: Net requirements are determined by the other three choices.
22. Closed loop MRP relates most closely to:
A) Capacity planning
B) ERP
C) Scheduled Receipts
D) Planned Order Receipts.
23. A key goal of MRP is to:
A) Avoid cost overruns.
B) Use Scheduled Receipts only when necessary.
C) Match supply and demand.
D) Order early to avoid late-order penalties.
E) All are key goals.
24. Which one is not included in a list of ERP hidden costs?
A) Waiting for ROI.
B) Consultants ad infinitum.
C) Data analysis and conversion.
D) High purchase costs.
E) Integration and testing.
Feedback: Purchase costs are not "hidden."
25. Which one would not be a reason for using ERP, or would all be reasons?
A) Integration of financial data.
B) Standardize production processes.
C) Standardize HR information.
D) Interconnect production, sales, and distribution on a single server.
E) all are reasons.
1. The two basic questions in inventory management are how much to order and when to order.
A) True
B) False
2. Using the EOQ model, if an item's holding cost increases, its order quantity will decrease.
A) True
B) False
Feedback: It will decrease because holding cost is in the denominator of the EOQ formula.
3. Use of the fixed-interval model requires having a perpetual inventory system.
A) True
B) False Feedback: A periodic system would be used.
4. With the A-B-C approach, items which have high unit costs are classified as A items.
A) True
B) False Feedback: A-B-C is based on the product of unit cost and annual volume.
5. When using EOQ ordering, the order quantity must be computed in every order cycle.
A) True
B) False
Feedback: Unless demand, holding cost, or ordering cost changing, the order quantity will not change.
6. Inventory might be held to take advantage of order cycles.
A) True
B) False
Feedback: Using an economic order quantity is an example of this.
7. The economic order quantity cannot be used when holding costs are a percentage of purchase cost.
A) True
B) False
8. Companies that can successfully use the A-B-C approach can avoid using EOQ models.
A) True
B) False Feedback: They still need to determine how much to order.
9. The objective of inventory management is to minimize holding costs.
A) True
B) False
Feedback: The objective of inventory management is to minimize total cost, which includes ordering
costs and sometimes purchase costs (e.g., quantity discount models).
10. Holding and ordering costs are inversely related to each other.
A) True
B) False
Feedback: Changes in order quantity will cause one to increase and the other to decrease.
11. A two-bin system is essentially a simple reorder point system.
A) True
B) False Feedback: Reorder when the first bin is empty.
12. In the basic EOQ model, annual ordering cost and annual ordering cost are equal for the optimal
order quantity.
A) True
B) False
13. Increasing the order quantity so that it is slightly above the EOQ would not increase the total cost
by very much.
A) True
B) False
Feedback: The total cost curve is flat to the right of the EOQ.
14. A fixed-interval ordering system would be used for items that have independent demand.
A) True
B) False
15. A store that sells daily newspapers could use the single-period model for reordering.
A) True
B) False
Feedback: The period is one day, and the news in "perishable" beyond one day.
16. Other things beings equal, an increase in lead time for inventory orders will result in an increase in
the:
A) order size
B) order frequency
C) reorder point Feedback: Quantity models do not involve lead time.
17. If average demand for an item is 21 units per day, safety stock is 4 units, and lead time is 2 days,
the ROP will be:
A) 84
B) 46
C) 42
D) none of these
Feedback: ROP = d x LT + SS = 21 x 2 + 4 = 46.
18. In an A-B-C system, B items typically represent about this percentage of items:
A) 90%
B) 75%
C) 50%
D) 30%
E) 15%
19. Which model does not take into account the amount of inventory on hand?
A) FOI
B) ROP
C) EOQ
Feedback: The EOQ factors are demand, ordering costs, and carrying costs.
20. Which product is usually bought on an ROP basis?
A) textbooks
B) wedding gifts
C) sugar
D) newspaper
Feedback: Buy more went the quantity on hand gets low.
21. Which product is usually bought on a fixed interval basis?
A) textbooks
B) wedding gifts
C) sugar
D) brownies
Feedback: Usually bought once a semester.
22. In the two-bin system, the quantity in the second bin is equal to the:
A) EOQ
B) ROP
C) FOI
D) None of these. Feedback: The second bin holds the reorder point quantity,
23. Using the basic EOQ model, if the ordering cost doubles, the order quantity will be
A) double its former value
B) about 50% of its former value
C) about 71% of its former value
D) unaffected
Feedback: Because S in under the square root sign, multiplying its value be 2 will increase the EOQ
by the square root of 2, which is .707.
24. If a decrease in unit price causes the average demand rate to increase, which one of these would
not increase?
A) the EOQ
B) lead time
C) annual holding cost
D) the ROP
E) safety stock
Feedback: Every other choice is a function of demand.
25. Setup costs are analogous to which one of these costs?
A) shortage
B) holding
C) excess
D) ordering
Feedback: Both setup and ordering costs are in the numerator of the quantity formula; and both are
independent of order size.
1. A lean system operates with fewer resources than traditional systems do.
A) True
B) False
2. Lean systems use a "push" approach to operations to quickly get output to their customers.
A) True
B) False
Feedback: A demand "pull" system is used.
3. Kanban is a visual system for controlling production.
A) True
B) False
4. Modular design and standard parts are two elements of product design in lean systems.
A) True
B) False
5. The ultimate objective in JIT objective is to minimize the amount of inventory on hand.
A) True
B) False
Feedback: The objective is to achieve a smooth, balanced (supply equals demand) flow.
6. Using small lot sizes reduces the flexibility of a system.
A) True
B) False
Feedback: It increases flexibility to respond to changes in demand.
7. Kaizen relates to continuous improvement.
A) True
B) False
8. Lowering inventory levels is a tactic to expose quality problems in a lean system.
A) True
B) False
9. Lean purchasing requires frequent bidding by multiple sources to ensure competitive prices.
A) True
B) False
Feedback: Long term relationships with fewer suppliers are the ideal.
10. JIT II is associated with vendor-managed inventory.
A) True
B) False
11. Inventory is considered a waste in a lean system.
A) True
B) False
Feedback: Inventory is one of the seven wastes.
12. Lean systems rely on worker specialization to achieve high productivity.
A) True
B) False
Feedback: Lean systems use cross-trained workers who can handle multiple jobs.
13. Which one is not a building block of JIT?
A) kanban and small lot sizes
B) personnel/organizational issues
C) product design
D) process design
14. The term that relates to matching the output rate with customer demand in a JIT system is:
A) fill rate
B) takt time
C) closed-loop JIT
D) single-minute exchange of die
15. The ultimate objective in a JIT system is:
A) maintain low inventory
B) produce high quality
C) minimize waste
D) match demand with a balanced flow
Feedback: The others are supporting goals.
16. Which term connotes waste and inefficiency?
A) muda
B) kaizen
C) poka-yoke
D) kanban
17. Which term refers to a signaling device?
(A) muda (B) kaizen
(C) poka-yoke (D) kanban
Feedback: Kanbans are used to signal the need for parts.
18. Which term connotes fail-safe design?
A) muda
B) kaizen
C) poka-yoke
D) kanban
19. Which one is not included in the list of seven wastes?
A) overproduction
B) inefficient work methods
C) product defects
D) poor product design
E) processing wastes.
20. Which one of these is a system for reducing changeover time?
A) VMI
B) JIT II
C) takt time
D) SMED
E) JIT
Feedback: SMED stands for single-minute exchange of dies.
21. A kanban card is used to signal that:
A) a machine has broken down
B) a worker is falling behind and needs help.
C) a defect has occurred
D) parts are needed
22. Which one of these is a system of lights used to signal problems in a lean production system?
A) SMED
B) andon
C) kanban
D) jidoka
E) muda
23. Process design supporting lean production would include:
A) Backup equipment to guard against equipment failure.
B) Multiple suppliers to assure parts availability.
C) Maintain backlogs to assure workers have enough work to keep them busy.
D) Production flexibility.
24. Which of the following would you not expect to see in a lean production system?
A) a flexible system
B) frequent schedule changes
C) little waste
D) low setup times
E) low inventory
Feedback: Near-term schedules are typically "frozen" to avoid disruptions.
25. Lean systems typically use layouts that:
A) are based on a job shop in order to handle variety
B) enable moving parts in large lot sizes
C) facilitate handling somewhat dissimilar products
D) all of the above
E) none of the above
1. Preventive maintenance is intended to avoid equipment breakdowns.
A) True
B) False
Feedback: It is intended to reduce to risk of a breakdown.
2. Preventive maintenance schedules should be based on the age and condition of equipment.
A) True
B) False
3. Breakdown maintenance is a proactive approach that accepts breakdowns as normal.
A) True
B) False
Feedback: It is a reactive approach.
4. Companies might decide to use a combination of preventive and breakdown maintenance to
minimize the total cost of maintenance.
A) True
B) False
5. Predictive maintenance is useful in estimating the length of time since maintenance was last
performed on a piece of equipment.
A) True
B) False
Feedback: It is used to determine when best to perform preventive maintenance.
6. Total productive maintenance involves workers performing preventive maintenance on the
equipment they operate.
A) True
B) False
7. Both preventive maintenance and breakdown maintenance involve having inventories of spare
parts.
A) True
B) False
Feedback: Preventive maintenance replaces parts that are becoming worn, while breakdown
maintenance replaces parts that have failed.
8. Breakdown maintenance can be a reasonable alternative in certain instances.
A) True
B) False
Feedback: That would make sense when the probability of a breakdown is low.
9. Breakdown cost and preventive maintenance costs are inversely related.
A) True
B) False
Feedback: Increasing preventive maintenance activities tends to reduce equipment breakdowns.
10. Beyond a certain point, the cost related to preventive maintenance exceeds the benefit.
A) True
B) False
Feedback: Example: Changing the oil in your vehicle every week instead of at the recommended
intervals.
11. Predictive maintenance involves
A) Performing maintenance activities in a consistent, predictable manner.
B) Performing maintenance on a regular, predictable schedule so workers know when to expect
it.
C) Determining the best time to perform preventive maintenance on equipment.
D) None of these.
12. Which type of maintenance is not directly included in the total maintenance cost, but might be a
component of total cost?
A) Preventive
B) Breakdown
C) Predictive
D) None of these.
Feedback: Developing a preventive maintenance schedule might involve predictive maintenance.
MCQ’s
1. Scheduling decisions occur just prior to the conversion of inputs into outputs.
A) True
B) False
2. Priority scheduling models assume processing times are known and constant.
A) True
B) False
3. The FCFS rule is used to minimize job waiting time because the first to arrive is the first to be served.
A) True
B) False
Feedback: Serving on the basis of shortest processing time will avoid having jobs pile up behind a job
that has a long processing time.
4. Supermarkets use a form of the SPT rule by processing small orders through dedicated checkout
lines.
A) True
B) False
Feedback: They use "short-order" lines (e.g., "7 or less items").
5. The dynamics of job shops makes identifying an optimal processing sequence unlikely.
A) True (B) False
6. Low-volume systems are better able to take advantage of flow-shop scheduling than high-volume
systems.
A) True
B) False
Feedback: Flow-shop scheduling is intended for high-volume systems.
7. The term loading in the context of scheduling refers to assigning jobs to processing centers.
A) True
B) False
8. Gantt charts are visual aids that are widely used in scheduling.
A) True
B) False
9. Makespan is the total time required for a job to move through a system.
A) True
B) False
Feedback: It is the total time to complete a group of jobs.
10. Priority rules involve simple heuristics to select the order in which jobs will be processed.
A) True
B) False
11. A confounding factor in job shop scheduling is that not all jobs require the same processing
sequence.
A) True
B) False
12. Job flow time is the rate at which a work center can process jobs.
A) True
B) False
Feedback: It is the length of time a job spends at a work center.
13. Priority rules generally assume that setup times are independent of processing order.
A) True
B) False
14. FCFS is one of the simplest processing rules, but also one of the least effective in job shops.
A) True
B) False
15. Johnson's Rule is a technique for minimizing makespan for a job that is processed on two
machines.
A) True
B) False
Feedback: It does this for a group of jobs rather than for a single job.
16. Yield management is a pricing technique used by service organizations that have fixed capacity.
A) True
B) False Feedback: Examples include motels, airlines, and restaurants.
17. Which one of these involves managing work flow and queues at work centers?
A) assignment models
B) Hungarian method
C) load charts
D) I/O control (Input/output control.)
18. Which approach takes into account job processing times and work center capacities?
A) load chart
B) infinite loading
C) finite loading
19. Which one of these is an optimizing technique?
A) shortest processing time
B) first-come, first-served
C) critical ratio method
D) assignment method
E) fixed interval scheduling
20. Which rule minimizes lateness?
A) FCFS
B) SPT.
C) CR
D) EDD
Feedback: The earliest due date rule focuses on lateness.
21. The drum-buffer-rope technique is associated with
A) bottleneck operations
B) reservation systems
C) yield management
D) appointment systems
Feedback: It is a part of the Theory of Constraints approach.
22. A possible disadvantage of the SPT priority rule is that it
A) it ignores processing times.
B) it tends to make jobs with long processing times wait
C) it upsets first-come-first served processing
D) None of these.
23. Which approach is not used for job shop sequencing?
A) shortest processing time
B) assignment method
C) critical ratio
D) earliest due date.
Feedback: The assignment method is used to assign workers to jobs.
1. Linear programming is a procedure for constrained optimization.
A) True
B) False
2. Linear programming requires an environment of certainty.
A) True
B) False
3. Linear programming will generate a solution to a problem if a solution exists.
A) True
B) False
4. The solution to a linear programming problem might not lie on the border of the feasible solution
space.
A) True
B) False
5. Except for the objective function, all other functions in linear programming are straight lines.
A) True
B) False
Feedback: The objective function is also a linear function.
6. Graphical solutions are limited to problems that have two constraints.
A) True
B) False
Feedback: They are limited to problems that have two-variables.
7. A linear programming problem can have more than one optimal solution.
A) True
B) False
Feedback: This occurs when the objective function is parallel to a binding constraint.
8. The solution to a graphical problem can be determined by sliding the objective function and by
enumeration.
A) True
B) False
9. As the objective function is moved away from the origin, its value decreases
A) True
B) False
10. A shadow price indicates how much decision variable's value can change without affecting the
optimal value of the objective function.
A) True
B) False
Feedback: A shadow price indicates how much the value of the objective function would change for a
one-unit change in the RHS value of a constraint.
11. The range of optimality indicates how much decision variable's value can change without affecting
the optimal value of the objective function.
A) True
B) False
12. An optimal solution to an LP problem can always be found at a corner point of the feasible solution
space if a problem has a solution.
A) True
B) False
13. A redundant constraint is one that forms a unique border of the feasible solution space.
A) True
B) False
Feedback: It does not form a unique border.
14. Slack relates to a › constraint
A) True
B) False
Feedback: Only a ‹ constraint can have slack.
15. If a constraint has a slack equal to zero, it is referred to as a binding constraint.
A) True
B) False
16. Which one is not an assumption of linear programming models?
A) normality
B) certainty
C) divisibility
D) linearity
E) nonnegativity
17. In a two-variable problem, a solution occurs at
A) the intersection of a binding and a nonbinding constraint.
B) the intersection of two binding constraints.
C) the point where the objective function becomes parallel to a binding constraint.
18. In a typical maximization problem, at least one constraint is this type:
A) ‹ or =
B) ›
C) =
Feedback: Otherwise, the solution would be unbounded.
19. Which objective function is parallel to the constraint 4x + 2y ‹ 10?
A) 2x + 4y
B) 1x + 2y
C) 2x + 1y
D) None of these.
Feedback: The constraint coefficients have the x/y ratio of 4/2 which is the same as 2/1.
20. The range of feasibility relates to:
A) a decision variable
B) constraint coefficients
C) objective function coefficients
D) the righthand-side value of a constraint
E) none of these
Feedback: The range of feasibility is the range of RHS values for which the shadow price remains
constant.
21. The range of optimality relates to:
A) a decision variable
B) constraint coefficients
C) objective function coefficients
D) the righthand-side value of a constraint
E) none of these
Feedback: The range of optimality is the range over which an objective function coefficient can change
without changing the optimal values of the decision variables.
22. Which one of these could have a non-zero surplus?
A) An objective function.
B) A binding constraint.
C) An equality constraint.
D) A greater than or equal to constraint.
23. Which type of change does not fall into the category of sensitivity analysis?
A) an objective function coefficient
B) the objective
C) a coefficient of a constraint
D) the RHS of a constraint
Feedback: Changing from Max to Min or vice versa isn't something that would be done.
24. If a change is within the range of feasibility, which of these will change?
A) value of the shadow price
B) value of the objective function
C) list of basic variables
Feedback: The value of the objective function will change when the RHS of a binding constraint is
changed.
25. If a change is within the range of optimality for a variable that is in solution, which of these will
not change?
A) values of the decision variables
B) value of the objective function
C) RHS values of constraints
Feedback: The range of optimality involves a change in the coefficient of a decision variable, hence, the
value of the objective function will change.