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


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