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
Throughput

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
If a firm produced a standard item with relatively stable demand, the actual reaction rate to difference between actual demand and forecast demand = 50% to 10%

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