Chapter 6

Multiple Choice Question 19

What measures the central tendency of a set of data?

Coefficient of variation


Standard deviation



Multiple Choice Question 39

Consider a p-chart measuring the percentage of defective light bulbs. If the LCL is .04 and a sample has 1% defects, what is the implication?

The process is in a state of control.

The process is out of control even though the variation is “good.”

The value of sigma must be increased.

The process has too many errors.

  A calculation error must have occurred

Multiple Choice Question 16

An OC curve is an example of what?

Traditional statistical tools

Fishbone diagramming

Acceptance sampling

Experimental design

Statistical process control

Multiple Choice Question 25

On a control chart, what separates common from assignable causes of variation?

x-bar lines

Control limits

Specification limits

Production limits

Mean divided by standard deviation

Multiple Choice Question 41

What are preset ranges of acceptable quality characteristics?

Control limits

Product specifications

Six-sigma limits

AQC limits

R-chart limits

Chapter 7

Multiple Choice Question 26

According to JIT, __________ is carried to cover up a wide variety of problems, such as poor quality, demand uncertainty, and slow delivery.


Excess capacity

A group of back-up workers

Spare equipment


Multiple Choice Question 65

Which of the following is not a role of JIT management?

creating a JIT culture

cost and information sharing

serving as coaches and facilitators

developing an incentive system

ensuring multifunctional training occurs

Multiple Choice Question 36

JIT uses a pull system where communication starts with either the customer or with the _________ work station in the production line.




Most expensive


 Multiple Choice Question 61

JIT production workers are expected to

Cover up quality problems

Ignore data

Take responsibility in getting to the root cause of quality problems

Blame problems on someone else

Have a poor attitude about quality

Multiple Choice Question 70

The benefits of long-term relationships with a small number of suppliers include all of the following except

Always getting the lowest price

Focus on improving process controls

Greater accountability

Develop stable delivery schedules

Eliminate paperwork

Chapter 8

Multiple Choice Question 1

Forecasting is not a function which contributes to:

deciding which business market to pursue

deciding which product to produce

 deciding how bonuses should be allocated

deciding how much inventory to carry

deciding how many people to hire

Multiple Choice Question 10

Which forecasting method is particularly good for predicting technological changes and scientific advances?

Market research

Executive opinion

Delphi method

Naïve method

Gamma method

Multiple Choice Question 30

What are the most frequently used forecasting techniques?

Linear regression

Simple mean

Exponential smoothing

Weighted moving average

Econometric models

Multiple Choice Question 17

Which of the following is a causal forecasting method?


Moving average

Weighted moving average

Trend adjusted exponential smoothing

Linear regression

Multiple Choice Question 74

“Inside information” is most likely garnered through which of the following forecasting methods?

exponential smoothing

seasonal indexes



multiple regression

 Chapter 9

Multiple Choice Question 56

The least likely reason for a U.S. firm to choose to locate a factory in a foreign country is _____________.


Natural resources


cheaper suppliers

low labor costs

Multiple Choice Question 55

Issues that need to be considered in location globally include all of the following except______________.

different cultures

FEC accounting requirements

language barriers

different laws

different business practices

Multiple Choice Question 6

Capacity planning is complicated by the fact that ___________________.

capital markets are complex

existing facilities may become obsolete

capacity is difficult to define

capacity is usually purchased in chunks, rather than smooth increments

depreciation must be calculated

Multiple Choice Question 44

Service organizations such as restaurants, movie theaters, and banks focus on locating near ____________.




their customers

potential workers

Multiple Choice Question 25

Management has decided to add capacity incrementally in smaller chunks as needed, rather than purchasing one large facility. This decision ____________________.

is very risky

will result in low initial costs

will ultimately result in lower costs per unit if demand increases rapidly

positions the company to be well prepared for high demand in the future

can lead to a large amount of excess capacity

Chapter 10

Multiple Choice Question 34

The first step in designing a layout is

identifying the facility

gathering information

selecting the correct layout software package

developing a REL chart

developing a from-to matrix

Multiple Choice Question 65

What is the term for a system in which the product being worked on is physically attached to the line and automatically moved to the next station when the cycle time has elapsed?

cyclical line

paced line


continuous line

constrained line

Multiple Choice Question 4

Which of the following is not one of the four basic layout types?




fixed position


Multiple Choice Question 27

Which company is widely considered to be the leader of just-in-time production?






Multiple Choice Question 24

A high-volume paper mill is an example of which layout type? 




fixed position



Multiple Choice Question 43

For each work element in the time study, multiplying the mean observed time by the performance rating factor by the frequency of occurrence results in what?

the normal time for the element

the average observed time for the element

the standard time for the element

the average delay for the element

the standard time for the job

Multiple Choice Question 21

The approach that details the tasks of a job and how to do them is ____________________.

work measurement

job evaluation

methods analysis

job design

work sampling

Multiple Choice Question 64

Disadvantages of individual incentive systems include all except which of the following?

They undermine teamwork.

A study has shown they had no effect on worker performance

They avoid the “free-rider” problem

They need a significant amount of data collection

They give employees a short-term focus.

Multiple Choice Question 3

Job design ensures that each employee’s _________ and ________ are geared towards achieving the company’s mission.

compensation, teams 

duties, teams

satisfaction, compensation

duties, responsibility

compensation, responsibility

Chapter 12

Multiple Choice Question 17

Companies can achieve cost-efficient operations by using which of the following inventory approaches?

work-in-process to buffer operations

inventory building to leverage reduced setup costs

JIT inventory to reduce overall cost

level work force maintenance through

speculative selling

Multiple Choice Question 27

Which of the following is an assumption of the basic EOQ model?

Lead time is known and constant.

Demand may be seasonal.

Orders can arrive in partial shipments.

Quantity discounts are considered

Lost sales are allowed, but not back orders.

Multiple Choice Question 5

Which inventory function specifically is designed to allow the company to maintain a level production strategy?

anticipation inventory

fluctuation inventory

lot-size inventory

transportation inventory

speculative inventory

Multiple Choice Question 20

Which of the following is not affected by decisions about how much inventory to hold?

item costs

holding costs


ordering costs

stockout costs

Chapter 13

Multiple Choice Question 16

What type of aggregate plan sets labor and equipment capacity to satisfy demand each period?






Multiple Choice Question 32

The comparison of aggregate plans is difficult when they produce different quantities and thus _________.

have different ending inventories

have different staffing levels

have different amounts of overtime

have different amounts of subcontracting

have different revenues

Multiple Choice Question 38

Once you implement a new aggregate plan you must then:

begin the planning process again

evaluate the plan’s performance in terms of cost.

evaluate the plan’s performance in terms of customer service

evaluate the plan’s performance in terms of human resources.

evaluate the plan’s performance in terms of cost and human resources

Multiple Choice Question 53

The master production schedule is shared:

only internally

only with management

only to marketing and engineering.

to all members of the executive team, exclusively

to all members of the supply chain

Chapter 14

Multiple Choice Question 34

Information in the inventory records file that can change with inventory transactions includes the ________.

part number

lot size rule

projected inventory level

lead time

safety stock requirement

Multiple Choice Question 31

The quantity of the replenishment order is based on the __________________________.

capacity available

size of the item

number of workers available

inventory space available

lot sizing rule used

Multiple Choice Question 58

An action notice is generated ________________________________________.

for planned orders in any period

only for orders that are to be released to the shop floor

only for movements to and from the warehouse

only when marketing needs to be notified

when a planned order needs to be released

Multiple Choice Question 12

ERP systems provide _____ and _____ benefits.

tangible, HR

intangible, marketing

marketing, operation

tangible, intangible


 Chapter 15

Multiple Choice Question 3

Scheduling in the high-volume environment is typically done through what?

priority rules

line design and balancing

Thompson’s rule

Simpson’s rule

Johnson’s rule

Multiple Choice Question 65

The process batch should:

match the transfer batch

exceed the transfer batch

be smaller than the transfer batch.

be fixed

be variable

Multiple Choice Question 16

If the schedule shows a 5 day slack between the end of Task A and start of Task B, this means:

You must start Task B as soon as Task A ends

Task B start is late

Task A is taking longer to complete

Task A and Task B should be performed concurrently

Task B start can be delayed up to 5 days after Task A’s scheduled completion

Multiple Choice Question 12

Which of the following scheduling techniques determines the earliest possible completion time for a job?

finite loading

infinite loading

forward scheduling

backward scheduling

input/output control

Chapter 16

Multiple Choice Question 27

In making a forward pass through a network, three activities are immediate predecessors for activity T. What is the early start time for activity T?

the smallest ES for the three activities that are immediate predecessors for activity T

the largest ES for the three activities that are immediate predecessors for activity T

the smallest EF for the three activities that are immediate predecessors for activity T

the largest EF for the three activities that are immediate predecessors for activity T

the activity time for activity T

Multiple Choice Question 67

One way of wasting safety time in the critical chain approach is multitasking, which involves ___________.

waiting until the last minute to start a project

interaction among project activities

having the computer operating system do everything

using a person or resource for more than one project

reversing the order of the activities

Multiple Choice Question 8

Which phase in the project life cycle involves analyzing the project risk?


feasibility analysis or study




Multiple Choice Question 18

The critical path is the sequential path of interrelated activities which has the ____________________.

most activities

longest time

most nodes

most events

most arrows

Multiple Choice Question 71

PERT is credited with reducing the duration of the Polaris missile project by _________________.

one year

two years

three years

four years

five years

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