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2. 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)
3. 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)
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
d. a dummy destination must be created
e. the closed path has a triangular shape
b (Special issues in modeling, moderate)
14. ABC analysis divides on-hand inventory into three classes, generally based upon
a. unit price
b. the number of units on hand
c. annual demand
d. annual dollar volume
e. item quality
d (Inventory management, moderate)
16. The two most basic inventory questions answered by the typical inventory model are
a. timing and cost of orders
b. quantity and cost of orders
c. timing and quantity of orders
d. order quantity and service level
e. ordering cost and carrying cost
c (Inventory models for independent demand, moderate)
17. Which of the following statements about the basic EOQ model is true?
a. If the ordering cost were to double, the EOQ would rise.
b. If annual demand were to double, the EOQ would increase.
c. If the carrying cost were to increase, the EOQ would fall.
d. If annual demand were to double, the number of orders per year would decrease.
e. All of the above statements are true.
e (Inventory models for independent demand, moderate)
18. An inventory decision rule states that "when the inventory level goes down to 14
gearboxes, 100 gearboxes will be ordered." Which of the following statements is true?
a. 100 is the reorder point, and 14 is the order quantity.
b. The number 100 is a function of demand during lead time.
c. 14 is the safety stock, and 100 is the reorder point.
d. 14 is the reorder point, and 100 is the order quantity.
e. None of the above.
d (Inventory models for independent demand, moderate)
20. Which of the following statements regarding the Production Order Quantity model is true?
a. It applies only to items produced in the firm's own production departments.
b. It relaxes the assumption that the demand rate is constant.
c. It minimizes the total production costs.
d. It relaxes the assumption that all the order quantity is received at one time.
e. It minimizes inventory.
d (Inventory models for independent demand, moderate)
22. The layout strategy that deals with low-volume, high-variety production is
a. fixed-position layout
b. retail/service layout
c. warehouse layout
d. all of the above
e. none of the above
e (Types of layout, moderate)
24. For which of the following operations would a fixed-position layout be most appropriate?
a. assembly of an automobile
b. production of cameras and TV sets
c. construction of a ship
d. refining of crude oil
e. grocery store
c (Fixed-position layout, difficult)
25. The type of layout which features departments or other functional groupings in which
similar activities are performed is
a. process
b. product
c. fixed-position
d. mass
e. unit
a (Process-oriented layout, moderate)
29. Which type of layout is used to achieve a smooth and rapid flow of large volumes of
output?
a. process
b. batch
c. product
d. unit
e. fixed-position
b (Repetitive and product-oriented layout, moderate)
aggregat
31. Planning tasks associated with job scheduling, machine loading, and dispatching typically
fall under
a. long-range plans
b. intermediate-range plans
c. short-range plans
d. mission-related planning
e. strategic planning
c (The planning process, moderate)
32. Dependence on an external source of supply is found in which of the following aggregate
planning strategies?
a. varying production rates through overtime or idle time
b. using part-time workers
c. backordering during high demand periods
d. subcontracting
e. hiring and laying off
d (Aggregate planning strategies, moderate)
33. Which of the following aggregate planning strategies might direct your client to a
competitor?
a. using part-time workers
b. subcontracting
c. changing inventory level
d. varying production rates through overtime or idle time
e. varying workforce size by hiring or layoffs
b (Aggregate planning strategies, moderate)
36. Which of the following is not consistent with a pure level strategy?
a. variable work force levels
b. little or no use of inventory to meet demand requirements
c. varying production levels and/or work force to meet demand requirements
d. varying the use of subcontracting
e. all of the above are inconsistent with the pure level strategy
e (Aggregate planning strategies, moderate)
39. Which of the following aggregate planning methods does not work if hiring and layoffs are
possible?
a. linear decision rule
b. management coefficients model
c. transportation method
d. simulation
e. charting method
c (Methods for aggregate planning, moderate)
40. Aggregate planning for service firms with high-volume tangible output is directed toward
a. yield management
b. centralized purchasing
c. decreasing the demand rate during peak periods
d. planning for human resource requirements and managing demand
e. smoothing the production rate
e (Aggregate planning in services, moderate)
44. 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. shortest processing time
b. earliest due date
c. longest processing time
d. critical ratio
e. Johnson's rule
d (Scheduling jobs in work centers, moderate)
45. A recent advance in short term scheduling that makes use of expert systems and simulation
in solving dynamic scheduling problems is
a. forward scheduling
b. finite scheduling
c. backward scheduling
d. infinite scheduling
e. progressive scheduling
b (Finite scheudling, moderate)
46. Which of the following techniques does not contribute to increasing throughput at a
bottleneck?
a. increase capacity of constraint
b. have cross-trained employees available to operate the constraint
c. develop alternate routings
d. move inspections and tests to a position immediately after the bottleneck
e. schedule throughput to match capacity of the bottleneck
d (Theory of constraints, moderate)
47. Factory X is trying to use level use scheduling. If their first target were to cut the current
lot size in half, by what proportion must setup cost change?
a. setup cost must also be cut in half from its current value
b. setup cost must double from its current value
c. setup cost must be cut to one fourth its current value
d. cannot be determined
e. none of the above
c (Repetitive manufacturing, moderate)
55. Which of these statements regarding time-cost tradeoffs in CPM networks is true?
a. Crashing is not possible unless there are multiple critical paths.
b. Crashing a project often reduces the length of long-duration, but non-critical, activities.
c. Activities not on the critical path can never be on the critical path, even after crashing.
d. Crashing shortens the project duration by assigning more resources to one or more of
the critical tasks.
e. None of the above.
d (Cost-time trade-offs and project crashing, moderate)