A waiting line meeting the assumptions of M/M/1 has an average time between arrivals of 20 minutes, and it services items in an average of 10 minutes each. What is the utilization factor?

Select one:

a. 3.00

b. 0.25

c. 0.33

d. 0.67

e. 0.50

Demand for dishwasher water pumps is 8 per day. The standard deviation of demand is 3 per day, and the order lead time is four days. The service level is 95%. What should the reorder point be?

Select one:

a. about 24

b. about 38

c. about 32

d. more than 40

e. about 18

A Type II error occurs when:

Select one:

a.a good lot is rejected

b.the population is worse than the LTPD

c.the proportion of defectives is very small.

d. a bad lot is accepted

e. no answers apply.

A queuing model that follows the M/M/1 assumptions has = 2 and = 8. The average number in the system Ls is ________ and the utilization of the system is ________.

Select one:

a.4; 33 percent

b. 4; 25 percent

c. 3; 100 percent

d. 0.33; 25 percent

e. 6; 25 percent

The Central Limit Theorem:

Select one:

a.controls the steepness of an operating characteristic curve.

b.states that the average of assignable variations is zero.

c.states that the average range can be used as a proxy for the standard deviation

d.is the theoretical foundation of thec-chart.

e.allows managers to use the normal distribution as the basis for building some control charts.

Which of the following is NOT one of the 10 strategic operations management decisions?

Select one:

a. process and capacity design

b. layout strategy

c. mass customization

d. maintenance

e. supply chain management

The project organization works best when which of the following conditions are satisfied?

I.Work tasks can be defined with a specific goal and deadline.

II.The job is typical and familiar to the existing organization.

III.The work contains interrelated tasks requiring specialized skills.

IV.The project is temporary but unimportant to long-term organizational success.

V.The project cuts across organizational lines.

Select one:

a. none of these above conditions need to be satisfied

b. I, III, V

c. I, II, III, V

d. I, II, III, IV, V

e. I, III, IV, V

Which of the following is the best example of competing on low-cost leadership?

Select one:

a. A firm's products are introduced into the market faster than its competitors' products are.

b. A firm produces its product with less raw material waste than its competitors do.

c.A firm's research and development department generates many ideas for new products.

d. A firm offers more reliable products than its competitors do.

e.A firm advertises more than its competitors do.

A capacity alternative has an initial cost of $50,000 and cash flow of $20,000 for each of the next four years. If the cost of capital is 5 percent, what is the approximate net present value of this investment?

Select one:

a. $20,920

b. $49,840

c. $70,920

d. $26,160

e. $106,990

A certain type of computer costs $1,000, and the annual holding cost is 25% of the value of the item. Annual demand is 10,000 units, and the order cost is $150 per order. What is the approximate economic order quantity?

Select one:

a. 183

b. 70

c. 110

d. 600

e. 16

A work system has five stations that have process times of 5, 9, 4, 9, and 8. What is the throughput time of the system?

Select one:

a. 18

b. 4

c. 35

d. 9

e. 7

The phases of project management are:

Select one:

a. GANTT, CPM, and PERT

b. planning, programing, and budgeting

c. planning, scheduling, and controlling

d. different for manufacturing projects than for services projects

e. planning, organizing, staffing, leading and controlling

A Three Sigma program has how many defects per million?

Select one:

a. 3 times the standard deviation

b. 1500

c. 34

d. 3

e. 2700

Which category of inventory holding costs has a much higher percentage than average for rapid-change industries such as PCs and cell phones?

Select one:

a. pilferage, scrap, and obsolescence

b. labor cost

c. material handling costs

d. investment costs

e. housing costs

Basic break-even analysis typically assumes that:

Select one:

a.

variable costs and revenues increase in direct proportion to the volume of production.

b.both costs and revenues are made up of fixed and variable portions.

c.

revenues increase in direct proportion to the volume of production, while costs increase at a decreasing rate as production volume increases.

d.costs increase in direct proportion to the volume of production, while revenues increase at a decreasing rate as production volume increases because of the need to give quantity discounts.

e. all are assumptions in the basic break-even model