1. The responsibility for continuous improvement is A) the responsibility of top management only B) should be delegated to a specific department C) can only be achieved using outside consultants D) requires the participation of every employee in the company 2. Material requirements planning (MRP) is a useful inventory control and production planning system for all of the following except A) dependent demand items B) discrete demand items C) independent demand items D) job-shop production 3. A forecasting model has produced the following forecasts: Period Demand Forecast Error January 120 110 February 110 115 March 115 120 April 125 115 May 130 125 The forecast error for February would be A) 10 B) -10 C) -15 D) -5 4. The probability that the inventory available during lead time will meet demand is referred to as the A) expected lead time demand B) safety stock C) stockout risk D) service level Page 3 5. A company that produces printer cartridges had cost of goods sold last year of $629,462,423. The average value of inventory for raw materials, work-in-process, and finished goods are shown in the table below: Raw Materials $7,367,528 Work-In-Process $22,893,232 Finished Goods $16,523,451 If the company operates 50 weeks per year then the number of inventory turns would be A) 3.720 B) 2.493 C) 13.4546 D) 28.33 Use the following to answer question 6: The following table of probabilistic time estimates (in weeks) and activity predecessors are provided for a project. Time Estimates (weeks) Activity a m b Activity Predecessor A 3 5 7 -- B 4 8 10 A C 2 3 5 A D 6 9 12 B, C E 5 9 15 D Table 9.2 6. Using Table 9.2, the expected time to complete the project is A) 34.17 weeks B) 33.23 weeks C) 31.00 weeks D) 21.67 weeks 7. Material storage space for in-process inventory is most likely to be the highest in A) a cellular manufacturing layout B) a product layout C) a fixed-position layout D) a process layout Page 4 8. The most cost-effective means for transporting low-value, high density, bulk products is by A) trucks B) air C) railroads D) package delivery 9. A Web site where goods and services from suppliers are consolidated at one site like a catalogue and where companies and suppliers conduct business-to-business activities is known as A) an E-marketplace B) a reverse auction site C) a single-sourcing site D) an electronic data interchange (EDI) site 10. Most service organizations use A) product layouts B) fixed-position layouts C) process layouts D) cellular layouts 11. Motion study, the study of the individual human motions used in a task, was developed by A) Henry Ford B) F. W. Taylor C) Frank and Lillian Gilbreth D) Frederick Herzberg Page 5 12. The following information relates to a company's aggregate production planning activities: Quarter Demand Forecast 1 25,000 2 50,000 3 35,000 4 60,000 Beginning Workforce = 50 workers Production per Employee = 250 units per quarter Hiring Cost = $1000 per worker Firing Cost = $1,500 per worker Inventory Carrying Cost = $15 per unit per quarter If a level production strategy is used then the total cost of the plan (hiring cost, firing cost and inventory carrying cost) would be A) $120,000 B) $377,500 C) $675,000 D) $795,000 13. An assembly line consists of three workstations (WS) with each station's activity time as shown. The flow time for items on this line would be A) 5 minutes B) 3 minutes C) 4 minutes D) 12 minutes 14. The estimated variance for an activity with a most likely time (m) of 12 weeks, an optimistic time (a) of 9 weeks, and a pessimistic time (b) of 18 weeks would be A) 3.75 B) 1.50 C) 5.25 D) 2.25 Page 6 15. Which of the following is not an advantage of cellular layouts A) reduced material handling and transit times B) reduced setup times C) increased capital investment D) easier to automate 16. The variance of an activity's completion time is to be estimated using the beta distribution. If the most likely time (m), the optimistic time (a), and the pessimistic time (b) for the activity are 11 days, 6 days, and 18 days, respectively, then the activity's variance is estimated to be A) 2 B) 4 C) 6 D) 11 17. A recent trend in distribution that moves some final manufacturing steps like assembly or individual product customization in the warehouse of distributions center is referred to as A) integrated warehouse management B) cross-docking C) vendor managed inventory D) postponement 18. Coordinated workflow, production and procurement can lead to all of the following except A) production efficiencies B) slower response times C) improved service D) faster time to market 19. Which of the following would most likely be used to redesign or improve existing jobs? A) methods analysis or work methods B) technology analysis C) environmental analysis D) task analysis 20. The mean absolute percentage deviation (MAPD) A) measures the absolute error as a percentage of all errors B) measures the absolute error as a percentage of per period demand C) measures the absolute error as a percentage of total demand D) measures the absolute error as a percentage of the average error