# Exam a

1. The purpose of the transportation approach for locational analysis is to minimize a. total costs b. total shipping costs c. total variable costs d. total fixed costs e. the number of shipments b (Transportation modeling, moderate) The initial solution to a transportation problem can be generated in any manner, so long as a. it minimizes cost b. it ignores cost c. all supply and demand are satisfied d. degeneracy does not exist e. all cells are filled c (Developing an initial solution, moderate) Which of the following statements about the northwest corner rule is false? a. One must exhaust the supply for each row before moving down to the next row. b.One must exhaust the demand requirements of each column before moving to the next column. c. When moving to a new row or column, one must select the cell with the lowest cost. d. One must check that all supply and demand constraints are met. e. All of the above are false. c (Developing an initial solution, moderate) In transportation model analysis the stepping-stone method is used to a. obtain an initial optimum solution b. obtain an initial feasible solution c. evaluate empty cells for potential solution improvements d. evaluate empty cells for possible degeneracy e. balance supply and demand c (The stepping-stone method, easy)

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A transportation problem has a feasible solution when a. all of the improvement indexes are positive b. the number of filled cells is one less than the number of rows plus the number of columns c. all the squares are used d. the solution yields the lowest possible cost e. all demand and supply constraints are satisfied e (The stepping-stone method, moderate) 6. When the number of shipments in a feasible solution is less than the number of rows plus the number of columns minus one a. the solution is optimal b. there is degeneracy, and an artificial allocation must be created c. a dummy source must be created

how much total cost would increase or decrease if the largest possible quantity were reallocated to that cell 9. a dummy destination must be created e. a positive improvement index in a cell indicates that a. total cost will decrease if units are reallocated to that cell d. is used to evaluate the cost effectiveness of shipping goods via transportation routes not currently in the solution d.d. the closed path has a triangular shape b (Special issues in modeling. often involves tracing closed paths with a triangular shape c. helps determine whether a solution is feasible or not c (The stepping-stone method. The stepping-stone method a. a negative improvement index in a cell indicates that the a. moderate) In a minimization problem. moderate) 8. cannot be calculated from the information given c. can be calculated from the original non-optimal cost. whether the transportation cost in the upper left-hand corner of a cell is optimal d. the solution is optimal b. moderate) 7. is an alternative to using the northwest corner rule b. problem has no feasible solution c (The stepping-stone method. the problem has no feasible solution b (The stepping-stone method. the total cost will decrease if units are reallocated to that cell d. is used to identify the relevant costs in a transportation problem e. is calculated by multiplying the total supply (including any dummy values) by the average cost of the cells b. current iteration is worse than the previous one e. can be calculated based only on the entries in the filled cells of the solution e (The stepping-stone method. solution is optimal b. whether a method other that the northwest corner rule should be used c. . 10. there is degeneracy e. moderate) An improvement index indicates a. by adding the savings made at each improvement d. 11. The total cost of the optimal solution to a transportation problem a. total cost will increase if units are reallocated to that cell c. the total cost will increase if units are reallocated to that cell c. whether a method other than the stepping stone should be used b. is found by multiplying the amounts in each cell by the cost for that cell for each row and then subtract the products of the amounts in each cell times the cost of each cell for the columns e. moderate) In a minimization problem.

moderate) . how much total cost would increase or decrease if a single unit was reallocated to that cell e (The stepping-stone method.e.

does not require the detailed inventory records necessary when annual physical inventory is used d. "C" Items have minimal records. 15. moderate) Which of the following statements about the basic EOQ model is true? a. moderate) The two most basic inventory questions answered by the typical inventory model are a. does not need to be performed for less expensive items b (Inventory management. annual demand d. moderate) Which of the following statements about ABC analysis is false? a. 14. None of the above statements are true. c. reduce stockout risks d.12 inv 12. meet anticipated demand b (Introduction. timing and cost of orders b. does not require highly trained people e. the EOQ would rise. makes the annual physical inventory more acceptable to management b. generally based upon a. the number of units on hand c. In ABC analysis. annual dollar volume e. c (Inventory management. have accurate records. unit price b. periodic review. quantity and cost of orders c. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings. . "A" Items are tightly controlled. allows more rapid identification of errors and consequent remedial action than is possible with annual physical inventory c. In ABC analysis. 13. If the ordering cost were to double. take advantage of quantity discounts b. ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings. minimize holding costs c. d. 17. 16. ordering cost and carrying cost c (Inventory models for independent demand. Which of the following would not generally be a motive for a firm to hold inventories? To a. b. decouple production from distribution e. and simple controls e. order quantity and service level e. and receive regular review by major decision makers. moderate) ABC analysis divides on-hand inventory into three classes. moderate) Among the advantages of cycle counting is that it a. timing and quantity of orders d. item quality d (Inventory management.

item cost becomes relevant to inventory decisions only when a quantity discount is available. e. b. d. The larger annual demand. e. c. c (Inventory models for independent demand. the less attractive a discount schedule will be. 14 is the reorder point. moderate) 18. c. d (Inventory models for independent demand. The cost-minimizing solution may. the number of orders per year would decrease. the EOQ would fall. b. All of the above statements are true. be where annual holding costs equal annual ordering costs. the less attractive a discount schedule will be. e (Inventory models for independent demand. None of the above. and 100 is the reorder point. uses Ordering Cost. EOQ is larger at each lower price in the discount schedule. If the carrying cost were to increase. e. moderate) 21.b. moderate) 19. In inventory management. It minimizes the total production costs. Which of the following statements about quantity discounts is false? a. 100 gearboxes will be ordered. moderate) . c. is appropriate when units are sold/used as they are produced e (Inventory models for independent demand. the EOQ would increase. results in larger average inventory than an equivalent EOQ model e. relaxes the assumption of known and constant demand b. and 100 is the order quantity. It applies only to items produced in the firm's own production departments. 100 is the reorder point. If annual demand were to double. or may not. d. in its formula c. e. 20. 14 is the safety stock. d (Inventory models for independent demand. It relaxes the assumption that the demand rate is constant. and 14 is the order quantity. assumes instantaneous delivery d. b. If carrying costs are expressed as a percentage of value. The number 100 is a function of demand during lead time. It relaxes the assumption that all the order quantity is received at one time. The smaller the ordering cost. An inventory decision rule states that "when the inventory level goes down to 14 gearboxes. moderate) The Production Order Quantity model a. It minimizes inventory. If annual demand were to double." Which of the following statements is true? a. d. Which of the following statements regarding the Production Order Quantity model is true? a. d. c. not Setup Cost.

. refining of crude oil e. bulky projects such as ships and buildings c. deals with low-volume. mass e. moderate) A good layout requires determining a. The layout strategy that deals with low-volume. a retail/service layout a. fixed-position d. moderate) According to Heizer and Render. retail/service layout c. grocery store c (Fixed-position layout. moderate) According to Heizer and Render. unit a (Process-oriented layout. assembly of an automobile b. bulky projects such as ships and buildings 23. material handling requirements c. capacity and space requirements b. process b. none of the above e (Types of layout. 24. production of cameras and TV sets c. construction of a ship d. moderate) For which of the following operations would a fixed-position layout be most appropriate? a. addresses the layout requirements of large. and spaces/offices to provide for movement of information b. high-variety production a (Office layout. an office layout a. seeks the best personnel and machine utilization in repetitive or continuous production d. difficult) The type of layout which features departments or other functional groupings in which similar activities are performed is a. high-variety production is a. their equipment. allocates shelf space and responds to customer behavior e. and spaces/offices to provide for movement of information b.9 layout 22. addresses the layout requirements of large. their equipment. fixed-position layout b. all of the above e (The strategic importance of layout decision. warehouse layout d. groups workers. 25. environment and aesthetics d. 26. product c. groups workers. flows of information e. 27. all of the above e.

a warehouse layout e (Warehousing and storage layouts. 30. use of manual product identification systems e. moderate) 28. short-range plans d. and dispatching typically fall under a. all of the above c (Warehousing and storage layouts. unit e. process b. moderate) Dependence on an external source of supply is found in which of the following aggregate planning strategies? a. a fixed-position layout b. allocates space and responds to customer behavior e. non-value-adding activities such as receiving and storing b. seeks the best personnel and machine utilization in repetitive or continuous production d. hiring and laying off 32. Planning tasks associated with job scheduling. mission-related planning e. moderate) 29. machine loading. a process-oriented layout c. fixed-position b (Repetitive and product-oriented layout. processing items as soon as they are received into a distribution center d. aggregat 31. intermediate-range plans c. using part-time workers c. a product-oriented layout e. product d. subcontracting e.c. high-variety production d (Retail layout. moderate) Which type of layout is used to achieve a smooth and rapid flow of large volumes of output? a. moderate) Which of the following are strongly associated with "crossdocking"? a. batch c. an office layout d. . multi-modal transportation facilities at seaports c. strategic planning c (The planning process. long-range plans b. backordering during high demand periods d. varying production rates through overtime or idle time b. Balancing low-cost storage with low-cost material handling is important in a. deals with low-volume.

varying workforce size by hiring or layoffs b (Aggregate planning strategies. All of the above are true. moderate) Which of the following is not consistent with a pure level strategy? a. variable work force levels b. 37. Advertising/promotion is a way of manipulating product or service supply. product mix b. moderate) Which of the following statements about aggregate planning is true? a. varying production levels and/or work force to meet demand requirements d. b. . d. production/workforce levels e. changing inventory level d. all of the above are inconsistent with the pure level strategy e (Aggregate planning strategies. d (The planning process. aggregate production planners continue to use trial and error methods when developing their plans. demand levels d. 36. using part-time workers b. 35. varying the use of subcontracting e. moderate) Which of the following is consistent with a pure chase strategy? 34. backorders are a means of manipulating demand while part-time workers are a way of manipulating product or service supply. moderate) In level scheduling. c. d (Aggregate planning strategies. Overtime/idle time is a way of manipulating product or service demand. In spite of the research into mathematical models. b. inventory levels c. Work station loading and job assignments are examples of aggregate production planning. None of the above are true. e.d (Aggregate planning strategies. little or no use of inventory to meet demand requirements c. Which of the following aggregate planning strategies might direct your client to a competitor? a. e. moderate) Which of the following statements about aggregate planning is true? a. All of the above are true. d. varying production rates through overtime or idle time e. Aggregate planning uses the adjustable part of capacity to meet production requirements. In aggregate planning. subcontracting c. c. what is kept uniform from month to month? a. moderate) 33. A pure chase strategy allows lower inventories when compared to pure level and hybrid strategies. 38. sub-contracting levels d (Aggregate planning strategies.

transportation method d. moderate) 40. centralized purchasing c. vary work force to meet demand requirements c. moderate) Aggregate planning for service firms with high-volume tangible output is directed toward a. moderate) "Yield management" is best described as a. vary production levels to meet demand requirements b. vary production levels and work force to meet demand requirements d. a situation where the labor union yields to management demands d. decreasing the demand rate during peak periods d. capacity allocation to different classes of customers in order to maximize profits c. charting method c (Methods for aggregate planning. e (Aggregate planning strategies.a. simulation e. Which of the following aggregate planning methods does not work if hiring and layoffs are possible? a. planning for human resource requirements and managing demand e. little or no use of inventory to meet demand requirements e. 41. yield management b. . management's selection of a product mix yielding maximum profits b (Aggregate planning in services. moderate) 39. process designed to increase the rate of output e. all of the above. management coefficients model c. a situation where management yields to labor demands b. smoothing the production rate e (Aggregate planning in services. linear decision rule b.

moderate) 43. 47. moderate) Which of the following techniques does not contribute to increasing throughput at a bottleneck? a. infinite scheduling e. forward scheduling b. longest processing time d. the same thing as the Gantt schedule chart d. by what proportion must setup cost change? a. moderate) A recent advance in short term scheduling that makes use of expert systems and simulation in solving dynamic scheduling problems is a. jobs according to their profit contributions d (Scheduling issues. schedule throughput to match capacity of the bottleneck d (Theory of constraints.15 schedu 42. the end items or finished products b. a method to highlight overloads in a given work center b (Loading jobs in work centers. a method for achieving a balance between forward and backward scheduling e. have cross-trained employees available to operate the constraint c. 45. finite scheduling c. . The assignment method is a. the final operation first beginning with the due date d. moderate) Factory X is trying to use level use scheduling. move inspections and tests to a position immediately after the bottleneck e. the start items or component parts c. critical ratio e. a form of linear programming for optimally assigning tasks or jobs to resources c. setup cost must double from its current value 44. shortest processing time b. progressive scheduling b (Finite scheudling. moderate) The most appropriate sequencing rule to use if the goal is to dynamically track the progress of jobs and establish relative priority on a common basis is a. 46. setup cost must also be cut in half from its current value b. jobs as soon as the requirements are known e. backward scheduling d. increase capacity of constraint b. Johnson's rule d (Scheduling jobs in work centers. earliest due date c. a computerized method of determining appropriate tasks for an operation b. If their first target were to cut the current lot size in half. Which of the following is true regarding forward scheduling? Forward scheduling is the scheduling of a. develop alternate routings d.

the emphasis is on staffing levels. moderate) . cannot be determined e. none of the above c (Repetitive manufacturing. setup cost must be cut to one fourth its current value d. moderate) 48. and labor demand is usually stable d. reservation systems are often used a means of manipulating the supply of services c. not materials b.c. the Critical Ratio sequencing rule is widely used for fairness to customers e. all of the above are true a (Scheduling in services. Which of the following is true regarding services scheduling? a. labor use can be intensive.

c." 52. c. b. A project does not have to have a critical path. The probable time estimate is calculated as t = (a + 4m + b)/6. moderate) 51. d. Project organization works well when the work contains simple. e. c. 53. Shortening the project by assigning more resources to one or more of the critical tasks is called "project crashing.16 project 49. moderate) Which of the following statements regarding project management is true? a. moderate) Which of the following statements concerning CPM activities is false? a. 54. d. On a specific project. The late finish of an activity is the earliest late start of all preceding activities. difficult) Which of the following statements regarding CPM networks is true? a. All of the above are true. there can be multiple critical paths. c. a (Project management techniques: PERT and CPM. a (Project management techniques: PERT and CPM. b. The late finish is the earliest of the late start times of all successor activities. Gantt charts give a timeline for each of a project's activities. Most likely time estimate is an estimate of the maximum time an activity will require. b. Both PERT and CPM require that network tasks have unchanging durations. Which of the following statements regarding critical paths is true? a. d (Project management techniques: PERT and CPM. e. d. moderate) 50. The late finish of an activity is the earliest late start of all preceding activities. b. b. Project organization is most suitable for projects that are temporary but critical to the organization. Every network has exactly one critical path. c (Project management techniques: PERT and CPM. Which of the following statements regarding PERT times is true? a. On a specific project. The early finish of an activity is the early start of that activity plus its duration. d. b. The shortest of all paths through the network is the critical path. The early start of an activity is the latest early finish of all preceding activities. The early finish of an activity is the latest early start of all preceding activities. c. all of which will have exactly the same duration. e. The duration of the critical path is the average duration of all paths in the project network. but do not adequately show the interrelationships of activities. Optimistic time estimate is an estimate of the maximum time an activity will require. None of the above are true. Some activities on the critical path may have slack. The late start of an activity is its late finish less its duration. Optimistic time estimate is an estimate of the minimum time an activity will require. Pessimistic time estimate is an estimate of the minimum time an activity will require. a (Project planning. . there can be multiple critical paths. e. e. all with exactly the same duration. independent tasks. d. All of the above are true. Which of the following statements regarding project management is false? a.

c. d. even after crashing. e. Crashing is not possible unless there are multiple critical paths. Crash cost depends upon the variance of the activity to be crashed. Project crashing is an optimizing technique.c. d. e. Crashing shortens the project duration by assigning more resources to one or more of the critical tasks. Crashing need not consider the impact of crashing an activity on other paths in the network. moderate) . b. Crashing a project often reduces the length of long-duration. None of the above. activities. d (Cost-time trade-offs and project crashing. moderate) 55. Which of these statements regarding time-cost tradeoffs in CPM networks is true? a. but non-critical. b (Project management techniques: PERT and CPM. Activities not on the critical path can never be on the critical path.