Professor Blake OPM 101 Name__________________________
Spring 2010
EXAMINATION 2, Version B
Use a Scantron Form No. 886-E to record your choice of the best answer to each of the following questions. You have the full period to answer the questions.
The following questions are worth three (3) points each.
1. Forecasts are more accurate for individual items than for groups or families of items. a) True b) False
2. Capacity planning is complicated by the fact that capacity is usually purchased in chunks, rather than smooth increments. a) True b) False
3. In product layouts, the material moves continuously and uniformly through a series of workstations until the product is completed. a) True b) False
4. A single-line service system eliminates jockeying behavior. a) True b) False
5. Problem-solving teams are small groups of employees who meet to identify, analyze, and solve operational problems. a) True b) False
6. Qualitative forecasting methods a) are made objectively by the forecaster b) are made subjectively by the forecaster c) are made using existing data sources d) are based on mathematical models e) are only used in parallel with quantitative models
7. Which of the following is not considered to be one of the four basic patterns of time series data? a) Horizontal b) Trend c) Vertical d) Seasonality e) Cycle
8. For what is a tracking signal used? a) To identify trends in actual data b) To identify seasonality in actual data c) To identify the effect of business cycles on actual data d) To compute the value of the smoothing constant,

, for exponential smoothing e) To identify forecast bias
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Professor Blake OPM 101 Name__________________________
Spring 2010
9. Consider the demand data listed below. What is the 4-month moving average forecast for
June?
Month
Jan.
Actual Demand
10,000
Feb.
Mar.
12,000
24,000 a) 14,000
Apr.
May
8,000
14,000 (12,000+24,000+8,000+14,000)/4 = 14,500 b) Not enough information is given to answer the question. c) 14,500 d) 13,500 e) 15,333
10. Effective capacity is a) the maximum input rate that can be sustained under normal conditions b) the maximum output rate that can be sustained under normal conditions c) the maximum input rate that can be sustained under ideal conditions d) the maximum output rate that can be sustained under ideal conditions e) the maximum percent measure of how well available capacity is being used
11. The ratio of actual output rate to capacity is ____________________________. a) effectiveness b) cycle time c) throughput d) utilization e) productivity
12. Long-term capacity requirements are identified on the basis of ___________________________. a) the current trend of the economy b) the expected lifetime of the facility c) demographic factors d) forecasts of future demand e) future political events
13. Locating close to customers is least important for __________________________. a) bakeries b) movie theaters c) flower shops d) diamond mines e) gas stations
14. Intermittent operations are seen in organizations that produce: a) a small variety of different products b) high volumes of a few standard products c) a large variety of different products d) a large volume of many standardized products e) assembly line manufacturing
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Professor Blake OPM 101 Name__________________________
Spring 2010
15. A car wash is an example of which layout type? a) inverted b) hybrid c) process d) fixed position e) product
16. Shipbuilding is an example of which layout type? a) inverted b) hybrid c) process d) fixed position e) product
17. Studies mentioned in the text have shown that workers that are in close proximity to each other are more likely to ________________________________________. a) catch a cold b) date each other c) get on each other’s nerves d) have greater understanding, tolerance, and trust for one another e) play practical jokes on each other
18. What occurs when a customer decides not to enter the waiting line? a) balking b) walking c) reneging d) vacillating e) jockeying
19. A single-line, multiple-server system has _____ ______ in terms of waiting times than the same system with a line for each server. a) poorer performance b) similar performance c) better performance d) comparable performance e) reduced performance
20. Which of the following is not considered to be a valid performance measure of a waiting line system? a) the average number of customers waiting in line b) the customer population source c) the average number of customers in the system d) the average amount of time customers spend waiting e) the system utilization rate
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Professor Blake OPM 101 Name__________________________
Spring 2010
21. Which of the following is not considered to be a valid performance measure of a waiting line system? a) the priority used for controlling the line b) the average number of customers waiting in line c) the average number of customers in the system d) the average amount of time customers spend waiting e) the system utilization rate
22. What is the approach to job design which involves an increase in responsibility for work planning and/or inspection? a) job enlargement b) job rotation c) job enrichment d) job involvement e) job enhancement
23. The approach that details the tasks of a job and how to do them is _______________________. a) work measurement b) job evaluation c) methods analysis d) job design e) work sampling
24. Standard times can be used to measure performance of individual workers. If a worker fails to match the standard time, the company should do what? a) put the worker on probation b) ignore the situation c) change the standard time d) provide training to improve the worker’s performance e) fire the worker
The following problems are worth ten (10) points each.
1. Hoops, Inc., produces videos on the art of shooting in basketball. The firm has experienced the following demand for the most recent four months. Prepare an exponential smoothing forecast for July, using an

value of .40. Initiate the process by assuming that the forecast for
March is 8,000 units.
Month
Mar.
Apr.
May
June
Demand Forecast
10,000 8,000
2,000 8,800
20,000 6,080
30,000 11,648
July 18,989
F t+1
=
α * A
1
+ (1-
α) * F
F
F
F
F
APR
MAY
JUN
JUL
1
= .4(10,000) = .6(8,000) = 8,800
= .4(2,000) + .6(8,800) = 6,080
= .4(20,000) + .6(6,080) = 11,648
= .4(30,000) + .6(11,648) = 18,989
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Professor Blake OPM 101 Name__________________________
Spring 2010
2. A clinic has been set up to give flu shots to the elderly in a large city. The design capacity is 50 seniors per hour, and the effective capacity is 44 seniors per hour. Yesterday the clinic was open for ten hours and gave flu shots to 330 seniors.
(a) What is the design utilization?
Utilization design
= 330/(10*50) = 330/500 = .66 or 66%
(b) What is the effective utilization?
Utilization effective
= 330/(10*44) = 330/440 = .75 or 75%
3. Consider a single-line, single-server waiting line system. Suppose that customers arrive according to a Poisson distribution at an average rate of 60 per hour, and the average (exponentially distributed) service time is 45 seconds per customer. What is the average number of customers in the system?
λ = 60 customers/hour
µ = 80 customers/hour
(3600sec/hour)/(45sec/customer) = 80 customers/hour
L = λ / (µ - λ) = 60/(80-60) = 3 customers
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