_________________

1.

Which of the following is a basic type of production layout format?

A.
B.

2.

Workcell center

C.

Systematic plan

D.

Manufacturing cell

Which of the following basic types of production layout formats is one in which equipment or work
processes are arranged according to the progressive steps by which the product is made?
A.

Functional layout

B.

Assembly line layout

C.

Group technology layout

D.
3.

Process flow diagram

Process layout

Which of the following basic types of production layout formats is one that has similar equipment or
functions are grouped together?
A.

Production line layout

B.

Assembly line layout

C.

Workcenter layout

D.

Group technology layout

4.

Using the assembly-line balancing procedure, which of the following is the required cycle time in minutes
per unit if the daily production time is 480 minutes and the required daily output is 50 units?
A.

0.104

B.
C.
D.
5.

6.

9.6
Cannot be determined from the information given

Using the assembly-line balancing procedure, which of the following is the theoretical minimum number of
workstations if the task times for the eight tasks that make up the job are 7, 4, 7, 8, 9, 4, 3, and 6 minutes,
and the cycle time is 8 minutes?
A.

B.

C.

D.

When balancing an assembly line, which of the following is not a way to reduce the longest task time
below the required workstation cycle time?
A.
B.
C.
D.

7.

50

Upgrade the equipment

Assign a roaming helper to support the line
Split the task between two workstations
Speed up the assembly line transfer mechanism

Which of the following is not a benefit of a manufacturing cell layout?

A.

Better human relations

B.

Improved operator expertise

C.

Faster production setup

D.

Reduced cost
2

8.

We would expect to see in a manufacturing cell layout which of the following?

A. Large teams who collectively do a small part of a finished product
B.

9.

A small team of workers who turn out complete units of work

C.

More in-process inventory

D.

Long production setup times

Which of the following is not a step in developing a manufacturing cell layout?

A. Grouping parts into families that follow a common sequence of steps
B. Identifying dominant flow patterns of parts families as a basis for location of processes
C.

Physically grouping machines and processes into cells

D. Disposing of leftover machinery and outsourcing ungrouped processes

10. In the design of retail service layouts, the term "ambient conditions" does not refer to which of the
following?
A.
B.
C.
D.

Music
Lighting
Scent
Staffing

11. In the design of retail service layouts, the term "ambient conditions" could refer to which of the following?
A.
B.

Signs
Symbols

C.

Artifacts

D.

Lighting

12. Some of the suggestions for a good layout for manufacturing and back-office operations include which of
the following?
A.

Backtracking kept to a minimum

B. Plenty of interstage materials storage to avoid starving downstream workstations

C.
D.

Workstations separated so operators don't spend time socializing

Adequate waiting facilities

13. Which of the following is not among the suggestions for a good layout for manufacturing and back-office
operations?
A.

Production time predictable

B.

Straight-line flow pattern

C.
D.

Open plant floors so everyone can see what is happing

Brightly colored walls and good lighting

14. Some of the suggestions for a good layout for face-to-face services include which of the following?
A.
B.

Workstations close together

Lack of clutter

C.

Orderly handling and storage of materials

D.

No unnecessary rehandling of materials

15. The term "servicescape" refers to which of the following?

A. The schematic diagram of the service flows of material, information, and customers
B.

The emergency exit plan from a service facility

C. The physical surroundings in which the service takes place

D. The broadest concept of the service business
16. What is the common name for a computer system that integrates application programs in accounting,
sales, manufacturing, and other functions in a firm by way of a shared database?
A.

Entrepreneurial resource programming (ERP)

B.

Enterprise resource planning (ERP)

C.

Endeavor reconstruction planning (ERP)

D.

Enterprise retention programming (ERP)

17. What is transaction processing?

A. The decision support system used to efficiently handle multiple transactions
B.

The posting and tracking of the detailed activities of a business

C. The movement of paperwork through a system using a decision tree

D.

The scheduling of machinery to minimize time and scrap

18. What are two of the main objectives of ERP?

A.

Transaction processing and decision support

B.

Product tracking and customer invoicing

C.

Transaction processing and logistic optimizing

D.

Resource tracking and master schedule planning

19. What is the primary goal of an ERP system?

A.

The integration of data processes and data storage

B.

Creating consistent definitions across all functional areas

C. The efficient handling of the transactions as goods move through each step of the process
D. The scheduling of machinery to minimize downtime and reduce scrap
20. On which four major areas do ERP modules typically focus?
A. Finance, manufacturing and logistics, sales and marketing, human resources
B.

Accounting, finance, human resources, manufacturing

C.

Accounting, finance, information technology, manufacturing

D.

Information technology, manufacturing, logistics, accounting

21. Within ERP, which set of applications is the largest and most complicated?
A.

Finance

B.

Manufacturing and logistics

C.

Sales and marketing

D.

Human resources

22. Which of the following is a main benefit of processing transactions in real time?
A.

There is no delay in the processing of the transaction.

B.

The amount of detail available in the system is extremely rich.

C. It allows for immediate analysis, which can be valuable in making improvements.

D.

All of these

23. What is an example of an issue that might be addressed by supply chain event management?
A.

A customer complains that a product arrived damaged.

B. A customer complains that he is unhappy with the product's new packaging design.
C. A customer decides to change her order in the next ordering cycle.
D. A customer would like to discuss getting a quantity discount in the next billing cycle.
24. What three functional areas make up the manufacturing operating cycle?
A.

Manufacturing, sales, and distribution

B.

Purchasing, manufacturing, and logistics

C.
D.

Procurement, engineering, and sales

Purchasing, manufacturing, and sales and distribution

25. Which of the following is not a benefit of running large batches in a manufacturing setting?
A.
B.
C.
D.

Create larger inventories.

Minimize equipment downtime.
Increase equipment and labor utilization.
Improve quality performance.

26. "A measure that is used to determine how many times the same asset can be used to generate revenue
and profit" is the definition of which of the following?
A.

Asset turns

B.

Cash-to cash cycle

C.

Production cycle

D.

Inventory turns

27. What information is necessary to calculate the cash-to-cash cycle time?

A.

Inventory, lead time, accounts receivable, sales

B.

Accounts payable, lead time, accounts receivable, inventory

C.

Accounts payable, cost of sales, accounts receivable, inventory

D.

Accounts payable, lead time, accounts receivable, assets

28. If a small company has average daily sales of $5,000 and accounts receivable of $150,000, what is the
average days of accounts receivable?
A.

30 days

B.
C.

3.3 days
$5,000/month

D.

33.3 days

29. A BOM file is also called which of the following?

A.

Product tree

B.

Inventory usage record

C.

Production parts plan

D.

Time bucket schedule

30. Which of the following industry types will not benefit greatly from the application of MRP?
A.

Fabricate-to-order

B.

Assemble-to-stock

C.

Manufacture-to-order

D.

None of these

31. A product tree can do which of the following?

A.

Help to compute component usage.

B.

Reduce product scrap.

C.

Reduce regular time labor.

D.

Locate raw material supplies.

32. Which of the following is an input to the master production schedule (MPS)?
A.

Inventory records file

B.

The aggregate plan

C.

The bill of materials

D.

Planned order schedules

33. Which of the following is one of the main purposes of an MRP system?
A. Determine the amount of materials needed to produce each end item.
B.

Stimulate the work force.

C.

Decrease labor requirements.

D.

Increase inventory accuracy.

34. One of the main purposes of an MRP system is which of the following?
A.

Track inventory levels.

B. Create productive capacity.

C. Develop schedules specifying when each component should be ordered or produced.
D.

Upgrade manufacturing's professionalism.

35. Which of the following is most closely related to the reason a firm might implement MRP?
A.
B.

So it can order the right parts

So it can order parts sufficient for immediate use

C. So it can ensure that parts to arrive prior to when they are needed
D.

To ensure appropriate quality levels

36. MRP systems seek to achieve which of the following?

A.

Minimize lot sizes.

B.

Determine the number of dependent demand items needed.

C.

Provide a yardstick for future improvements.

D.

Improve on JIT methods.

37. Which of the following is an input to the master production schedule?

A.

Aggregate component schedule

B.

Peg reports

C.

Exception reports

D.

Forecasts of random demand from customers

10

38. Which of the following is an input to the master production schedule?

A.

Inventory records file

B.

Exception reports

C.

Planned-order schedules

D.

None of these

39. Which of the following is an input file necessary to run an MRP system?
A.

Bill of materials (BOM) file

B.

Exception reports

C.

Planned-order schedules

D.

Purchasing contracts

40. Which of the following is an input file necessary to run an MRP system?
A.

Exception report

B.

Computer-aided-design files

C.

Inventory records file

D.

Planned order schedule

41. Which of the following is not a production activity report generated by MRP?
A.

Planning report

B.

Performance control report

C.

Planned-order schedules

D.

Bill of materials report

11

42. In an MRP program, the program accesses the status segment of an inventory record according to specific
periods called which of the following?
A.

Cubed time units

B.

Time buckets

C.
D.

BOM units
Time modules

43. Which of the following files allows us to retrace a material requirement upward in the product structure
through each level, identifying each parent item that created the demand?
A.

Planning bill of materials file

B.

Modular bill of materials file

C.

Super bill of materials file

D.

Peg record file

44. We would expect to see which of the following in an MRP system's inventory status file?
A.

End items produced

B.

Late/early delivery records

C.

Scrap parts

D.

Labor efficiency

45. In a typical inventory status record, which of the following would you not expect to see?
A.

Scrap allowance

B.

Gross requirements

C.

Planned-order releases

D.

Lost items

12

46. Which of the following is considered a primary report in an MRP system?

A.

Performance reports

B.

Exception reports

C.

Planned order schedules

D.

Cycle counting reports

47. Which of the following is considered a secondary report in an MRP system?

A.

Planned order schedule

B.

Exceptions reports

C.

Inventory record

D.

Firm orders from known customers

48. Which of the following is considered a primary report in an MRP system?

A.

Planned order schedule

B.

Peg report

C.

Planning report

D.

Inventory accuracy report

49. Which of the following is the planned-order release using an MRP program if the gross requirement is
5,000, inventory on hand is 1,200, and planned receipts are 800?
A.

4,200

B.

3,000

C.

2,000

D.

1,200

13

50. Under the lot-for-lot (L4L) lot sizing technique as used in MRP, we would expect which of the following?
A.

A consistent lag of supply behind demand

B.

Minimized carrying costs

C.

Minimized setup costs

D.

A just-in-time management philosophy

51. Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the
carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot in which these
are most nearly equal?
A.
B.

Economic order quantity

Lot-for-lot

C.

Least total cost

D.

Least unit cost

52. One reason for studying operations and supply chain management (OSCM) is which of the following?
A. OSCM is essential for understanding organizational behavior.
B. Most business graduates do OSCM work regardless of their job title.
C. All managers should understand the basic principles that guide the design of transformation
processes.
D. OSCM is a required course in all business degree programs.
53. Which of the following is not a way in which a work center can be organized?
A.
B.

According to function in a work center configuration

According to function in an assembly line

C.

By product in assembly line

D.

By product in a flow operation

14

54. When work is assigned to a work center based on what is needed over time it is called which of the
following?
A.

Infinite loading

B.

Finite loading

C.

Machine-limited

D.

Labor-limited

55. When work is scheduled in detail using the setup and run time required for each order, it is called which of
the following?
A.

Infinite loading

B.

Finite loading

C.

Machine-limited

D.

Labor-limited

56. When work has been scheduled in a shop that does not have sufficient resources to complete the
schedule on time, the system that generated the schedule is called which of the following?
A.

Infinite loading

B.

Machine-limited

C.

Finite loading

D.

Labor-limited

57. A material requirements planning system is an example of which of the following scheduling systems?
A.

Infinite loading, backward scheduling

B.

Finite loading, backward scheduling

C.

Infinite loading, forward scheduling

D.

Finite loading, forward scheduling

15

58. For a continuous-process type of manufacturing, which of the following is the typical production scheduling
approach?
A.

Finite forward scheduling

B.

Finite backward scheduling

C.

Infinite forward scheduling

D.

Infinite backward scheduling

59. Which of the following is not a function performed in scheduling and controlling an operation?
A.

Allocating orders and equipment

B.

Setting priorities and sequencing jobs

C.

Allocating personnel to work centers

D.

Reporting bottleneck operations

60. Which of the following is not an objective of work center scheduling?

A.
B.
C.
D.

Meeting due dates

Providing time for quality at the source
Minimizing setup time or cost
Minimizing work-in-process inventory

61. The objectives of work center scheduling include which of the following?
A.

Minimizing worker alienation

B.

Providing variety to workforce

C.

Following all the priority rules

D.

Minimizing setup costs

16

62. Which of the following is not a standard measure of schedule performance that can be used to evaluate
priority rules?
A.
B.
C.
D.

The schedule quality index

Minimizing the time a job spends in the process
Minimizing work-in-process inventory
Minimizing idle time of machines or workers

63. Which of the following is not a priority rule used to schedule the sequence of jobs in a production
operation?
A.

First-come, first-served

B.

Shortest operating time

C.

Last-in, first-out

D.

Critical ratio

64. Which of the following is a priority rule used to schedule the sequence of jobs in a production operation?
A.

Last-come, first-served

B.

Last complaint first

C.

First on hand first

D.

Longest slack time first

65. A job has 5 days of processing time left to do before completion, and today is the 10th day of the month. If
the job is due on the 14th day of the month, what is its critical ratio?
A.

B.

C.

0.8

D.

0.5

17

66. Assume there are five jobs (i.e., A, B, C, D, and E) that need to be sequenced in a production schedule.
The remaining operating time necessary for completion of job A is 4 days (i.e., job A will take 4 more days
to complete), B will take 7 days, C will take 8 days, D will take 2 days, and E will take 5 days. Which job
should be scheduled first if you use the SOT priority rule for job sequencing?
A.

B.

C.

D.

67. Assume you are sequencing jobs using Johnson's rule. A particular job requires 3 hours to assemble and
then is followed by 2 hours in the painting department. Which of the following is where you would schedule
this job?
A.

As early as possible in the unfilled job sequence.

B.

As late as possible in the unfilled job sequence.

C.

The schedule would depend on the due date.

D.

Does not matter.

68. The assignment method is useful in solving scheduling problems that have which of the following
characteristics?
A.

There are n jobs to be distributed to n machines or workers.

B.

Each job can only be done on one particular machine.

C.
D.

Speed and efficiency are important.

The objective is to minimize cost and lateness of delivery.

18

69. Which of the following might be a status and exception report used in shop-floor control?
A.
B.

Absentee report
Quality failure report

C.

Shortage lists

D.

Expediting report

70. Which of the following is a principle of work center scheduling?

A. Once started, a job can and should be finished even if unavoidably interrupted.
B.
C.
D.

Reschedule every day.

Achieve certainty in standards and routings.
Give work centers less to do then their maximum.

71. The goods-services continuum consists of which set of the following categories?
A.

No goods, some goods, even mix, some service, no service

B.

Pure goods, core goods, core services, pure services

C.

No service, some service, good service, excellent service

D.

None of these

72. Which of the following is not a characteristic that distinguishes services from goods?
A.

Service jobs are unskilled.

B.

A service is intangible.

C.

Services are perishable.

D.

Services are heterogeneous.

19

73. Which of the following is not a measure of operations and supply chain management efficiency used by
Wall Street?
A.

Inventory turnover

B.

Revenue per employee

C.

Receivable turnover

D.

Earnings per share

74. Efficiency means doing the right things to create the most value for the company.
A.
B.
C.
D.

True
False
Cannot be Determined
Data insufficient

75. The term "value" refers to the relationship between quality and the price paid by the consumer.
A.
B.
C.
D.

True
False
Cannot be Determined
Data insufficient

76. The central idea of supply chain management is to apply a total system approach to managing the flow of
information, materials, and services from raw material suppliers through factories and warehouses to the
end customer.
A.
B.
C.
D.

True
False
Cannot be Determined
Data insufficient

20

77. Which of the following is not a major strategic operational competitive dimension that forms a company's
competitive position?
A.

Cost or price

B.

Delivery speed

C.

Delivery reliability

D.

Management acumen

78. In development of an operations and supply chain strategy, which of the following may be an important
product-specific criterion to consider?
A.

Production lot size

B.

Supplier after-sale support

C.
D.

Learning curve
Total quality management

79. Which of the following is a multifactor measure of productivity?

A.
B.
C.
D.

Output/(Labor + Capital + Energy)

Output/All resources used
Output/Inputs
All of these

80. The total output from a production system in one day is 500 units and the total labor necessary to produce
the 500 units is 350 hours. Using the appropriate productivity measure, which of the following numbers
represents the resulting productivity ratio?
A.

1.428

B.

0.700

C.
D.

0.411
None of these

21

81. The ability to rapidly and inexpensively switch production from one product to another enables what are
sometimes referred to as:
A.

Economies of scale

B.

Economies of size

C.

Economies of shape

D.

Economies of scope

85.
of the
following
models
uses a schematic
model
of the
sequence
of buildings,
steps in a equipment
problem and
82. Which
Capacity
planning
involving
acquisition
or disposal
of fixed
assets
such as
or the
facilities
conditions
and
consequences
of
each
step?
is considered as which one of the following planning horizons?
A.
A.

Probability
indexing
Intermediate
range

B.
B.

Decision
trees
Long
range

C.
C.

Activity system
maps
Short range

D.
D.

Decision mapping
Current

83. If the actual output of a piece of equipment during an hour is 500 units and its best operating level is at a
rate of 400 units per hour, which of the following is the capacity utilization rate?
A.

0.75

B.

1.00

C.

1.25

D.

1.33

84. The way to build in greater flexibility in your workers is to do which of the following?
A. Pay higher wages to motivate a willingness to do a variety to tasks.
B.

Provide a broader range of training.

C.

Provide a wide variety of technology to augment workers skills.

D.

Use part-time employees with specialized skills as needed.

22

86. Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10,
and the selling price for the finished product is $25. Which of the following is the number of units that has
to be produced and sold to break even?
A.

500 units

B.

667 units

C.

900 units

D.

1,000 units

87. Which of the following is not a basic type of process structure?

A.
B.

Product-process matrix
Work center

C.

Manufacturing cell

D.

Assembly line

88. Which of the following basic types of process structures is one in which equipment or work processes are
arranged according to the progressive steps by which the product is made?
A.

Work center

B.

Manufacturing cell

C.

Assembly line

D.

Continuous process

23

89. Which of the following basic types of process structures is one in which similar equipment or functions are
grouped together?
A.
B.

Project
Work center

C.

Manufacturing cell

D.

Assembly line

90. The placement of which of the following is not determined by production process organization decisions?
A.

Departments

B.

Work groups

C.

Machines

D.

Emergency exits

91. Which of the following is a suggestion for managing queues that is mentioned in the textbook?
A.
B.

Use humor to defuse a potentially irritating situation.

Segment the customers.

C. Assure customers that the wait is fair, and inform them of the queue discipline.
D. Tell people in the queue that each will be served as soon as possible.
92. Which of the following is not a suggestion for managing queues presented in the textbook?
A.
B.

Try to divert your customer's attention when waiting.

Segment the customers.

C. Encourage customers to come during the slack periods.

D. Periodically close the service channel to temporarily disperse the line.

24

93. Which of the following is a suggestion for managing queues presented in the textbook?
A.

Train your servers to be friendly.

B. Tell customers that the line should encourage them to come during slack periods.
C.

Give each customer a number.

D. Periodically close the service channel to temporarily disperse the line.

94. Which of the following are the three major components of a queuing system?
A. The source population, how customers exit the system, and the queuing discipline
B.

The number of servers, the service speed, and the waiting line

C. The source population, how the customer exits the system, and the servicing system
D. The source population and the way customers arrive at the system, the serving systems, and how
customers exit the system

95. Which of the following is not a queue discipline discussed in the textbook?
A.

Last in, first out

B.

Limited needs

C.

Shortest processing time

D.

Best customer first

96. Which of the following queue disciplines is discussed in the textbook?

A.

Emergencies first

B.

Garner-Whitten formula

C.

Newest customer first

D.

Patient customers last

25

97. Machine breakdown and repair in a 12-machine factory having three repair mechanics would develop
which type of queuing system line structure concerning machine breakdowns?
A.

Single channel, multiphase

B.

Multichannel, single phase

C.

Multichannel, multiphase

D.

None of these

98. For an infinite queuing situation, if the arrival rate for loading trucks is 5 trucks per hour, what is the mean
time between arrivals?
A. 2.5 hours
B. 0.2 hour
C. 0.1 hour
D. None of these
99. A company is concerned about the number of customers who have to wait for service in its customer
service department. Assume the rate at which customers are serviced is 12 per hour. Using the infinite
queuing notion for the models presented in the textbook, which of the following is the mean time between
arrivals?
A.
B.

12 minutes
6 minutes

C.

2 minutes

D.

None of these

100.Which of the following is not considered an input to the layout decision in facility layout analysis?
A. Cost per square foot of alternative facilities
B. Specification of objectives and corresponding criteria to be used to evaluate the design
C.

Estimates of product or service demand on the system

D. Processing requirements in terms of the number of operations and the flow between elements in the
layout

26