1. Managers have obligations to a wide variety of stakeholders such as shareholders, employees and customers. When considering outsourcing production to offshore suppliers, managers have to weigh __.
I) Cost benefits that might make shareholders wealthier
II) Quality issues that might make firms less productive and/or products riskier
III) The investments already tied up in relationships with existing suppliers
A. I
B. II
C. III
D. I and II
E. . I, II and III

2. The typical difference between "quality circles" and "continuous improvement teams" is ___.
A. Quality circles work on product design only.
B. Continuous improvement teams work on product and process design.
C. Continuous improvement teams use only engineers while quality circles use just the workers doing the work.
D. the amount of employee empowerment
E. There is no difference-they are just the same.

3. A tool that depicts process variation graphically is a(n) _________.
A. Affinity diagram
B. Check list
C. Control Chart
D. Flow Chart
E. Relationship diagram

4. A chart showing the number of occurrences by category would be used in:
A. Pareto analysis
B. interviewing
C. cause-and-effect diagrams
D. benchmarking
E. none of the above

5. A process results in a few defects occurring in each unit of output. Long-run, these defects should be monitored with ___________.
A. p-charts
B. c-charts
C. x-bar charts
D. r-charts
E. o-charts

6. Studies on a bottle-filling machine indicates it fills bottles to a mean of 16 ounces with a standard deviation of 0.10 ounces. What is the process specification, assuming the Cpk index of 1?
A.0.10 ounces
B.0.20 ounces
C.0.30 ounces
D.16.0 ounces plus or minus 0.30 ounces
E.none of the above

7. Which of the following relationships must always be incorrect?
A. Tolerances > control limits > process variability
B. Process variability > control limits > tolerances
C. Process variability > tolerances > control limits
D. Tolerances < control limits < process variability
E. Tolerances > process variability > control limits

8. Which of the following are typically in play in a circumstance in which yield management is worthwhile?
(I) Perishable capacity
(II) Ample finished goods storage
(III) Demand variability
(IV) Low holding costs
A. I, II, and IV only
B. I and III only
C. III only
D. II and III only
E. II, III, and IV only

9. Aggregate planners attempt to balance:
A. demand and inventories.
B. demand and costs.
C. capacity and inventories.
D. capacity and costs.
E. capacity and demand.

10. Which of the following best describes aggregate planning?
A. the link between intermediate-term planning and short-term operating decisions
B. a collection of objective planning tools
C. make-or-buy decisions
D. an attempt to respond to predicted demand within the constraints set by product, process, and location decisions
E. manpower planning

11. In order to use the level capacity strategy, variations in demand are met by:
A. varying output during regular time without changing employment levels.
B. varying output during regular time by changing employment levels.
C. varying output by changing overtime levels.
D. using combination of inventories, overtime, part time, and back orders.
E. price adjustments.

12. The multiplication process used by MRP to determine lower-level requirements is called:
A. time-phasing.
B. pegging.
C. netting.
D. projecting.
E. exploding.

13.Capacity requirements planning helps managers reconcile __________ with __________.
A. what is needed; what has been done
B. what is needed; what is possible
C. what has been done; who will be doing it
D. what needs to be done; where it will be done
E. what has been done; how much what needs to be done will cost

14. An effort to expand the scope of production resource planning by involving other functional areas in the planning process has been:
A. material requirements planning.
B. capacity requirements planning.
C. manufacturing resources planning.
D. just-in-time planning.
E. multifunctional relationships planning.

15. Which of the following most closely describes net material requirements?
A) gross requirements - planned order receipts
B) gross requirements - on-hand + planned order receipts
C) gross requirements - on-hand - planned order receipts
D) gross requirements - planned order releases
E) none of the above

16. The _________ of ERP makes it valuable as a strategic planning tool.
A. Internet base
B. rapid batch capability
C. employee focus
D. real-time aspect
E. database structure

17. Because 'courtesy' is subjective, it can't be considered a factor in service quality
TRUE
FALSE

18. High-cost, low-volume items often require careful inspection since we make them so infrequently.
TRUE
FALSE

19. Linear programming models yield the optimal solution.
TRUE
FALSE

20. In MRP, EOQ models tend to be less useful for materials at the lowest levels than for upper level assemblies of the bill of materials since higher-level assemblies have larger dollar investments.
TRUE
FALSE

21. Load reports show capacity requirements for departments or work centers which may be more or less than the capacity available in that work center.
TRUE
FALSE.