1) Consider the following historic time series data:
Assume we decided to fit a linear Trend line to this time series. The following regression output
displays these results:
What is the back-fitted sales forecast for the first Monday (i.e., at time period 1)?
Select one:
a. 102
b. 82
c. 85
d. 92
e. 2.03%
2) The motion “Search” would be considered by the Gilbreth’s as an effective motion.
Select one:
True
False
3) Which aggregate production planning method will yield an optimal solution in terms of
minimizing total costs?
Select one:
a. a level capacity plan
b. a chase demand
c. a linear programming method
d. either A or B
4) In designing a web page, a meaningful home page title helps in
Select one:
a. making a privacy policy more visible
b. making domain name registration easier
c. making a web page easier to update
d. making a web page easier to download
e. making a web page easier to bookmark and find
5) Consider the following historic time series data
Assume we decided to fit a linear Trend line to this time series. The following regression output
displays these results:
What is next Monday’s forecast using a simple 3-day moving average?
Select one:
a. 110
b. 100.33
c. 99
d. 87
e. 2.03%
6) The quality improvement tool that is useful in examining the type of defects on a surface area
is
Select one:
a. a check sheet
b. a flowchart
c. a Pareto chart
d. histogram
e. cause-and-effect diagrams
7) A manufacturing firm is considering two locations for a plant to produce a new product. The
two locations have fixed and variable costs as follows:
At what annual output would the company be indifferent between the two locations?
Select one:
a. 60,000 units
b. 15,000 units
c. 10,000 units
d. 20,000 units
8) Assume that the “bias” (i.e., arithmetic average of errors) value for a given forecasting model
is positive. This implies that on average the forecasting model is:
Select one:
a. over-forecasting
b. under-forecasting
c. neither under-forecasting nor over-forecasting
d. can’t make judgment based on the given information
9) Assume that a product goes through three sequential processes A, B, and C. Moreover, assume
that each process takes 2 minutes per unit. Currently, there is an order for 6 units of this product
to be produced. If the manufacturer employs a batch processing system, what is the earliest time
for completing the first unit of this product?
Select one:
a. 12 minutes
b. 18 minutes
c. 13 minutes
d. 36 minutes
e. 26 minutes
10) A company uses 1200 boxes of typing paper each year. The company is trying to determine its
optimal order quantity that will minimize its total inventory costs. Each time an order is placed,
it costs the company approximately $5 in shipping, receiving and inspecting the goods upon
arrival. Since storage space is at premium, the company estimates that it incurs a cost of $1.20
per box per year. What is the total minimal inventory cost that will be incurred as a result of
using the optimal order quantity?
Select one:
a. $120
b. $28.8
c. $500
d. $100
e. none of the above
11) The correlation coefficient “r” ranges in value between 0 and +1.
Select one:
True
False
12) The quality improvement tool that is useful in examining the association between 2 variables
is a control chart
Select one:
True
False
13) Planners for a company that makes several models of skis are about to prepare an aggregate
plan that will cover 6 periods. They have assembled the following information:
Capacity
Regular: 300 units per period
Costs
Regular output: $2 per unit
Overtime output: $3 per unit
Subcontract: $6 per unit
Inventory carrying/holding : $1 per unit per period
Back order: $5 per unit per period
Beginning Inventory: 0
Use a matching demand plan supplemented with overtime as needed to answer the next question. You
may use the spreadsheet below to aid you in your computations.
The total cost of this plan is
Select one:
a. $3800
b. $3900
c. $3700
d. $3500
e. $3600
14) Consider the following historic time series data:
Assume we decided to fit a linear Trend line to this time series. The following regression output
displays these results:
What would be the forecast for next Monday using the Trend line approach?
Select one:
a. 80
b. 102
c. 82
d. 99
e. 2
15) Given forecast errors of 4, 8, and -3, what is the mean squared error (MSE)?
Select one:
a. 29.7
b. 3
c. 5
d. 44.5
16) Assume that a product goes through three sequential processes A, B, and C. Moreover,
assume that each process takes 2 minutes per unit. Currently, there is an order for 6 units of this
product to be produced. If the manufacturer employs a one-piece flow system, what is the earliest
time for completing the first unit of this product?
Select one:
a. 12 minutes
b. 18 minutes
c. 13 minutes
d. 36 minutes
e. 6 minutes
17) Labor productivity is an example of a multi-factor productivity measurement.
Select one:
True
False
18) In an assembly operation at a furniture factory, six employees assembled an average of 450
standard dining chairs per 5-day week. What is the labor productivity of this operation?
Select one:
a. 90 chairs/worker/day
b. 20 chairs/worker/day
c. 15 chairs/worker/day
d. 75 chairs/worker/day
e. none of the above
19) You have been hired as a consultant to determine whether a relationship exists between the
SAT scores and college performance as measured by GPA’s. You decide to use a simple linear
regression using the data below, and you obtain the following regression output using Excel:
The dependent variable in this regression model is:
Select one:
a. Semester
b. GPA
c. SAT score
d. none of the above
20) A pattern that exhibits repeated predictable spikes in the data at equally spaced intervals is
commonly referred to as a cyclical pattern.
Select one:
True
False
21) A campaign manager for a political candidate must arrange the shipment of 150 cartons of
campaign buttons from three button producers to three campaign headquarters. The supplies
and demands, and the per-carton transportation costs, are shown below:
Let Xij represent the number of units shipped from source i to destination j.
Which of the following is an objective function for this linear programming transportation problem?
Select one:
a. Min 2X11 + 5X12 + 6X13 + 9X21 + 3X22 + 7X23 + X31 + 8X32 + 4X33
b. Min 50X11 + 50X12 + 50X13 + 20X31 + 70X32 + 60X33
c. Max 2X11 + 5X12 + 6X13 + 9X21 + 3X22 + 7X23 + X31 + 8X32 + 4X33
d. Max 20X11 + 70X12 + 60X13 + 50X31 + 50X32 + 50X33
e. None of the above
22) A moving average forecast will always react quicker to recent changes in the data by
decreasing the averaging period (i.e., less data is included in the average).
Select one:
True
False
23) The Meta Tag “Keywords” help web designers in
Select one:
a. making their web page easier to update
b. making their web page easier to index and be found
c. making their title page more visible
d. making their web page easier to translate to other languages
e. registering their domain names
24) Seasonally adjusted data may exhibit, a trend, a seasonal component, and a random
component.
Select one:
True
False
25) Assume that a product goes through three sequential processes A, B, and C.
Moreover, assume that each process takes 2 minutes per unit. Currently, there is
an order for 6 units of this product to be produced. If the manufacturer employs a
batch processing system, what is the total completion time for this order (i.e.,
completing the entire 6 units)?
Select one:
a. 12 minutes
b. 18 minutes
c. 13 minutes
d. 36 minutes
e. none of the above
26) You have been hired as a consultant to determine whether a relationship exists between the
SAT scores and college performance as measured by GPA’s. You decide to use a simple linear
regression using the data below, and you obtain the following regression output using Excel:
What is the expected GPA if the SAT score is 1150? Base your answer on the estimated regression
model.
Select one:
a. 2.55
b. 2.80
c. 2.60
d. 2.78
e. none of the above
27) Consider the following historic time series data:
Assume we decided to fit a linear Trend line to this time series. The following regression
output displays these results:
What percentage of the total variation in actual sales has been explained by the Trend line?
Select one:
a. 96.14%
b. 98.95%
c. 19.6%
d. 86.62%
e. 2.03%
28) Drexel Valves produces cast bronze valves on an assembly line. It currently
produces 800 valves each 8-hour shift. If the production is increased to 1,200
valves each shift, the productivity increases by:
Select one:
a. 50%
b. 33%
c. 25%
d. 67%
e. none of the above
29) The Baldrige award and ISO 9000 are 2 different types of “certification” quality programs.
Select one:
True
False
30) A company uses 1200 boxes of typing paper each year. The company is trying to determine its
optimal order quantity that will minimize its total inventory costs. Each time an order is placed,
it costs the company approximately $5 in shipping, receiving and inspecting the goods upon
arrival. Since storage space is at premium, the company estimates that it incurs a cost of $1.20
per box per year. What is the length of an order cycle (in months)? In other words, how many
months will each optimal order last?
Select one:
a. 5 months
b. 4 months
c. 3 months
d. 2 months
e. 1 month
31) A company uses 1200 boxes of typing paper each year. The company is trying to determine its
optimal order quantity that will minimize its total inventory costs. Each time an order is placed,
it costs the company approximately $5 in shipping, receiving and inspecting the goods upon
arrival. Since storage space is at premium, the company estimates that it incurs a cost of $1.20
per box per year. How many orders per year will the company place using the optimal order
quantity?
Select one:
a. 24 orders
b. 20 orders
c. 12 orders
d. 25 orders
e. 15 orders
32) A company uses 1200 boxes of typing paper each year. The company is trying to determine its
optimal order quantity that will minimize its total inventory costs. Each time an order is placed,
it costs the company approximately $5 in shipping, receiving and inspecting the goods upon
arrival. Since storage space is at premium, the company estimates that it incurs a cost of $1.20
per box per year.
What is the optimal Economic Order Quantity?
Select one:
a. 10000
b. 24
c. 100
d. 576
e. none of the above
33) Planners for a company that makes several models of skis are about to prepare an aggregate
plan that will cover 6 periods. They have assembled the following information:
Capacity
Regular: 300 units per period
Costs
Regular output: $2 per unit
Overtime output: $3 per unit
Subcontract: $6 per unit
Inventory carrying/holding : $1 per unit per period
Back order: $5 per unit per period
Beginning Inventory: 0
Use a level capacity production plan to answer the next question. Assume that overtime and
subcontracting is not allowed. Backordering may be used when necessary.
You may use the spreadsheet below to aid you in your computations.
The total cost of this plan is
Select one:
a. $4900
b. $4650
c. $4700
d. $4600
e. $4500
34) Consider the following historic time series data:
Assume we decided to fit a linear Trend line to this time series. The following regression output
displays these results:
The slope of the Trend line is:
Select one:
a. 1
b. 4
c. 5
d. 80
e. 2
35) A campaign manager for a political candidate must arrange the shipment of 150 cartons of
campaign buttons from three button producers to three campaign headquarters. The supplies
and demands, and the per-carton transportation costs, are shown below:
Let Xij represent the number of units shipped from source i to destination j.
Which of the following is a possible constraint for one of the suppliers (i.e., button producers)?
Select one:
a. 2X11 + 5X12 + 6X13 = 50
b. 9X11 + 3X12 + 7X13 = 50
c. X11 + X21 + X31 = 50
d. X11 + X12 + X13 = 50
e. None of the above
36) If average demand for an item is 20 units per day, safety stock is 50 units, and lead time is
four days, the Re-Order Point (ROP) will be:
Select one:
a. 20
b. 50
c. 70
d. 80
e. 130
