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Multiple Choice: Read each question and their corresponding

answers carefully and completely. Choose the answer that
best fits the question.
1. Pick the statement about location decisions that is not true.
A. They are often long term.
B. Mistakes can be difficult to overcome.
C. Both fixed costs and variable costs are usually
affected.
D. It is important to identify the optimal location.
2. Efficiency, in capacity terms, is the ratio of.
A. actual output to effective capacity.
B. actual output to design capacity.
C. effective capacity to actual output.
D. design capacity to effective capacity.
E. design capacity to actual capacity.
3. Which of the following is the most difficult aspect of demand
for capacity planners to deal with?
A. Trend; that is, the long term tendency of demand
for the product to increase or decrease.
B. Seasonal fluctuations in demand.
C. Irregular variations in demand.
D. Cyclical fluctuations in demand.
E. Random fluctuations in demand.
4. The assumptions of cost-volume analysis include: I. The variable
cost per unit is the same regardless of volume. II. Fixed costs do
not change when the volume of production changes. III.
Revenue per unit is the same regardless of volume.
A. I only.
B. II and III only.
C. II only.
D. I and II only.
E. I, II and III.
5. Which one of the following statements is not correct relative to
decision making under risk?
A. The sum of the state-of-nature probabilities must
be 1.00.
B. All probabilities are assumed to be equal.
C. Every probability must be greater than or equal to
zero.
D. Probabilities are used to compute expected
values.
E. Perfect information assumes that the state of
nature that will actually occur is known.
6. Product variety in a job shop tends to be:
A. Low
B. Moderate
C. High
D. Very low
E. Very high
7. Which one of the following would not generally be regarded as
a reason for redesign of a layout?
A. Morale problems
B. Change in the volume of output or product mix
C. Accidents or safety hazards
D. Inefficient operations
E. All are potential reasons.
8. A precedence diagram:
A. contains all of the tasks.
B. shows the sequences in which tasks are
performed.
C. is in the shape of a network.
D. shows all of the paths from beginning to end of
completion of the product.
E. all of the above.
9. Which one of the following is not generally regarded as an
advantage of product layouts?
A. The system is fairly flexible to changes in the
design of the product.
B. Material handling costs per unit are low.
C. Labor costs are low per unit.
D. Accounting, purchasing, and inventory control are
fairly routine.
E. There is high utilization of labor and equipment.
10. The system that has the highest equipment flexibility is:
A. Projects.
B. Batch
C. Job Shop
D. Repetitive production.
E. Continuous processing.
11. Increasing the level of responsibility of an employee is known
as:
A. Specialization
B. Ergonomics
C. Job enlargement
D. Job enrichment
E. Job rotation
12. Task times derived from a firm's historical data are known as:
A. predetermined times.
B. standard elemental times.
C. judgmental times.
D. micromotion times.
E. MTM.
13. Which technique is useful for studying nonrepetitive jobs?
A. methods analysis.
B. time study.
C. motion study.
D. micromotion study.
E. work sampling.
14. Among the following, all are advantages of specialization
except:
A. simplifies training
B. difficult to motivate quality
C. high productivity
D. relatively low wages
E. all are advantages
15. The following are true about stopwatch time except:
A. Several repetitions are usually timed.
B. A performance rating is usually necessary.
C. There is no record of the method used by the
worker.
D. It is well suited for repetitive jobs.
E. Jobs that have varying task requirements can pose
some difficulty.
16. Pick the statement about location decisions that is not true.
A. They are often long term.
B. Mistakes can be difficult to overcome.
C. Both fixed costs and variable costs are usually
affected.
D. It is important to identify the optimal location.
17. Which of the following would not generally be classified as a
regional factor in location decisions?
A. Location of raw materials
B. Location of markets
C. Labor supply
D. Moving expenses
E. All are regional factors.
18. Which of the following would not usually be cited as a reason
for locating in foreign countries?
A. Increased quality of output
B. Cheaper labor
C. Availability of raw materials
D. Access to markets
E. All are reasons
19. Which one of the following steps is often the most crucial in the
decision-making process?
A. identifying the problem.
B. Specifying objectives
C. Developing alternatives
D. Analyzing alternatives
E. Selecting the best alternative
20. Which one of the following would not generally be given as a
reason for poor decisions?
A. Unforeseeable circumstances
B. Bounded rationality
C. Suboptimization
D. Mistakes in the decision process
E. All are reasons
21. Determining the average payoff for each alternative and
choosing the alternative with the highest average is the
approach called:
A. minimin
B. maximin
C. maximax
D. minimax regret
E. Laplace
22. If the minimum expected regret is computed, it indicates to a
decision-maker the:
A. expected value of perfect information
B. expected payoff under certainty
C. expected monetary value
D. expected payoff under risk
E. none of the above
23. An operations strategy for process selection should recognize
that:
A. process selection seldom requires technical
expertise
B. engineering "white elephants" are uncommon
C. there is little need to manage technology
D. flexibility may not the best choice
E. managers need not have technical skills
24. Heuristic rules are usually used when:
A. an optimum is necessary.
B. a computer program isn't available,
C. a program has a small number of possibilities.
D. no optimizing routine is available.
E. all other approaches have failed.
25. Which one of the following is not generally regarded as an
advantage of product layouts?
A. Material handling costs per unit are low.
B. Labor costs are low per unit.
C. The system is fairly flexible to changes in volume
of output.
D. Accounting, purchasing, and inventory control are
fairly routine.
E. There is high utilization of labor and equipment.
26. Graphical LP can only be used for:
A. Maximization problems.
B. Minimization problems.
C. Unbounded problems
D. One-variable problems
E. Two variable problems
27. A constraint that forms the optimal corner point of the feasible
solution space is called
A. redundant.
B. slack.
C. surplus.
D. binding.
E. optimal.
28. Which of these is not an assumption of linear programming
models?
A. Divisibility.
B. Certainty.
C. Negativity.
D. linearity.
29. Within the range of optimality, what remains the same?
A. The optimal value of the objective function.
B. The optimal values of decision variables.
C. The shadow prices.
D. a, b, c remain the same.
E. None of a, b, c remain the same.
30. If a constraint has non-zero surplus in the solution, then:
A. The constraint is a constraint
B. The constraint is a constraint.
C. The constraint is binding.
D. The constraint is non-linear.
E. The constraint is incorrect.