1. A major competitive dimension that forms a company’s strategic operational competitive position in their strategic planning is which of the following?

Cost or price

Focus

Straddling

Automation

2. In setting up a kanban control system you need to determine the number of kanban card sets needed. If the expected demand during lead time is 25 per hour, the safety stock is 20 percent of the demand during lead time, the container size is 5, and the lead time to replenish an order is 5 hours, what the number of kanban card sets is needed?

27

20

5

30

3. Which of the following is a multifactor measure of productivity?

Output/(Labor + Capital + Energy)

Output/All resources used

Output/(Materials)

Output/Inputs

4. Which of the following is an alternative possible service encounter included in the service-system design matrix?

Internet

Automated teller (ATM)

Face-to-face distance

Questionnaire response

5. In development of an operations and supply chain strategy, which of the following may be an important product-specific criteria to consider?

Learning curve

Supplier after-sale support

Production lot size

Focus

6. Which of the following is one of Dr. Eli Goldratt’s rules of production scheduling for optimized production technology?

An hour lost at a bottleneck saves an hour for the entire system

Do not allow bottlenecks to govern the flow of the line

Utilization and activation of a resource are not the same

Balance the capacities, not the flows

7. You have just been assigned to oversee a series of projects. Functional areas will loan you personnel for each project, and separate project managers will be responsible for separate projects. These project managers will report to you. Which project management structure is being used?

Matrix project

Pure project

Functional project

Task force

8. Which of the following is a reason that firms must develop more new products than ever?

Commitments to joint venture partners

Product life cycles are shorter

They are replacing old customers with new ones

To amortize heavy investments in development labs

9. We would expect to see which of the following in an MRP system’s inventory status file?

End items produced

Late/early delivery records

Labor efficiency

Scrap parts

10. The centroid method for plant location uses which of the following data?

Inbound transportation costs

Volume of goods to be shipped between existing points

Transport times between facilities

Correlation matrix of existing facilities

11. The Pareto principle is best applied to which of the following inventory systems?

EOQ

Fixed-time-period

Fixed-order quantity

ABC classification

12. A company can produce a small lot of products the first time at a cost of $2,000. If their 85 percent learning curve allows them to reduce their costs on each lot, what is the total cost of producing 5 lots?

$8,062.00

$4,031.00

$9,376.50

$10,000.00

13. You are a consultant called in to estimate the costs after the employees learn how to do a job more efficiently by repetition of new product. You find a company can produce a product the first time at a cost of $5,000. If their 90 percent learning curve allows them to reduce their costs on each unit, what is the total cost of producing 100 units of the new product?

$290,700

$500,000

$390,000

$250,687

14. A material requirements planning system is an example of which of the following scheduling systems?

Infinite loading, backward scheduling

Finite loading, backward scheduling

Infinite loading, forward scheduling

Finite loading, forward scheduling

15. Capacity planning that involves hiring, layoffs, some new tooling, minor equipment purchases, and subcontracting is considered as which one of the following planning horizons?

Long range

Current

Short range

Intermediate range

16. You want to determine the upper control line for a p-chart for quality control purposes. You take several samples of a size of 100 items in your production process. From the samples, you determine the fraction defective is 0.05 and the standard deviation is 0.01. If the desired confidence level is 99.7 percent, which of the following is the resulting UCL value for the line?

0.39

0.06

0.08

0.05

17. The objectives of work center scheduling include which of the following?

Providing variety to workforce

Following all the priority rules

Minimizing setup costs

Avoiding tradeoffs

18. For which of the following should we use an R-chart to monitor process quality?

Deciding whether an airliner has sufficient fuel for its trip

Determining whether vehicles from a motor pool will run

Weighing trucks at a highway inspection station to determine if they are overloaded

Student grades measured from 1 to 100

19. Which of the following is a major factor that distinguishes service design and development from manufacturing design and development?

The service package has the same legal protection available to manufactured goods.

The service process and service product can be developed independently.

Manufacturing is far more capital intensive than services.

The service package is the major output of the development process.

20. Which of the following is a time-to-market performance measure used in judging product development performance?

Customer loyalty

Product reliability

Yield

Frequency of new-product introductions

21. In business forecasting, what is usually considered a medium-term time period?

One to six months

Three months to two years

Six weeks to one year

One to five years

22. There are many applications of poka-yokes in service organizations. Which of the following is one of the three-T’s used to classify poka-yokes?

Task

Trust

Time

Teamwork

23. Assuming no safety stock, what is the reorder point (R) given an average daily demand of 78 units and a lead time of 3 days?

421

234

26

78

24. Which of the following is a measure of operations and supply management efficiency used by Wall Street?

Earnings per share growth

Current ratio

Dividend payout ratio

Receivable turnover

25. A project starts out as which of the following?

Critical path method (CPM)

A latest-start-time estimate

A series of milestones

A statement of work

26. The ability to rapidly and inexpensively switch production from one product to another enables what are sometimes referred to as:

Economies of shape

Economies of scope

Economies of size

Economies of scale

27. According to the theory of constraints, which of the following is a financial measurement that can be used to measure the firm’s ability to make money?

Inventory

Sales

Net profit

28. What is a work breakdown structure?

A depiction of the activities making up a project

A Gantt chart

A list of the activities making up the higher levels of the project

A definition of the hierarchy of project tasks, subtasks, and work packages

29. If a firm produced a standard item with relatively stable demand, the smoothing constant alpha (reaction rate to differences) used in an exponential smoothing forecasting model would tend to be in which of the following ranges?

5 to 10 percent

60 to 120 percent

20 to 80 percent

20 to 50 percent

30. What transportation mode has very high initial investment costs but gives a very low cost per mile for products that are highly specialized and require no packaging?

Water

Highway

Pipeline

Rail