Question 1
Question
In the A-B-C system, the typical percentage of the number of items in inventory for A items is about:
Question 2
Question
In the A-B-C classification system, which account for 15% of the total dollar-volume for a majority of the inventory items would be classified as:
Answer
-
A items
-
B items
-
C items
-
A items plus B items
-
B items plus C items
Question 3
Question
In the A-B-C classification system, items which account for 60% of the total dollar-volume for few inventory items would be classified as:
Answer
-
A items
-
B items
-
C items
-
A items plus B items
-
B items plus C items
Question 4
Question
The EOQ model is most relevant for which one of the following?
Answer
-
ordering items with dependent demand
-
determination of safety stock
-
ordering perishable items
-
determining fixed interval order quantities
-
determining fixed order quantities
Question 5
Question
Which is not a true assumption in the EOQ model?
Question 6
Question
A cycle count program will usually require that 'A' items be counted:
Question 7
Question
In the basic EOQ model, if annual demand doubles, the effect on the EOQ is:
Answer
-
it doubles
-
it is four times the previous amount
-
it is half its previous amount
-
it is about 70% of its previous amount
-
it increases by about 40%
Question 8
Question
In the basic EOQ model, if lead time increases from 5 to 10 days, the EOQ will:
Question 9
Question
In the basic EOQ model, an annual demand of 40 units, an ordering cost of $5, and a holding cost of $1 per unit per year will result in an EOQ of:
Answer
-
20
-
square root of 200
-
200
-
400
-
none of these
Question 10
Question
In the basic EOQ model, if D=60 per month, S=$12, and H=$10 per unit per month, EOQ is:
Question 11
Question
In the basic EOQ model, if annual demand is 50, carrying cost is $2, and ordering cost is $15, EOQ is approximately:
Question 12
Question
If average demand for an inventory item is 200 units per day, lead time is 3 days, and safety stock is 100 units, the reorder point is:
Answer
-
100 units
-
200 units
-
300 units
-
600 units
-
700 units
Question 13
Question
If no variations in demand or lead time exist, the ROP will equal:
Question 14
Question
Which one of the following isa implied by a "lead time" service level of 95%?
Answer
-
Approximately 95% of the demand during lead time will be satisfied
-
Approximately 95% of inventory will be used during lead time
-
The probability is 95% that demand during the lead time will exactly equal the amount on hand at the beginning of lea time
-
The probability is 95% that demand during lead time will not exceed the amount on hand at the beginning of lead time.
-
none of the above
Question 15
Question
Which one of the following is implied by an "annual" service level of 95%?
Answer
-
Approximately 95% of demand during lead time will be satisfied
-
The probability is 95% that demand will exceed supply during lead time
-
The probability is 95% that demand will equal supply during lead time
-
The probability is 95% that demand will not exceed supply during lead time
-
None of the above
Question 16
Question
Daily usage is exactly 60 gallons per day. Lead time is normally distributed with a mean of 10 days and a standard deviation of 2 days. What is the standard deviation of demand during lead time?
Question 17
Question
Lead time is exactly 20 days long. Daily demand is normally distributed with a mean of 10 gallons per day and a standard deviation of 2 gallons. What is the standard deviation of demand during lead time?
Question 18
Question
Which of these products would be most apt to involve the use of a single-period model?
Answer
-
gold coins
-
hammars
-
fresh fish
-
calculators
-
frozen corn
Question 19
Question
In a single-period model, if shortage and excess costs are equal, then the optimum service level is:
Answer
-
0
-
.33
-
.50
-
.67
-
none of these
Question 20
Question
In a single-period model, if shortage cost is four times excess cost, then the optimum service level is percent.
Question 21
Question
In the single-period model, if excess cost is double shortage cost, the approximate stockout risk, assuming an optimum service level, is percent.
Question 22
Question
If, in a single-period inventory situation, the probabilities of demand being 1, 2, 3, or 4 units are .3, .3, .2, and .2, respectively. If two units are stocked, what is the probability of selling both of them?
Answer
-
.5
-
.6
-
.7
-
.8
-
none of these
Question 23
Question
If average demand for an item is 20 units per day, safety stock is 50 units, and lead time is four days, the ROP will be:
Question 24
Question
Suppose that usage of cooking oil at Harry's Fish Fry is normally distributed with an average of 15 gallons/day and a standard deviation of two gallons/day. Harry has just fired the manager and taken over operating the restaurant himself. Harry has asked you to help him decide how to reorder cooking oil in order to achieve a service level which is seven times the risk of stockout (7/8). Lead time is eight days. Assume that cooking oil can be ordered as needed.
Answer
-
185.30
-
126.50
-
150
-
122.50
-
167.85
Question 25
Question
A bakery's use of corn sweetener is normally distributed with a mean of 80 gallons per day and a standard deviation of four gallons per day. Lead time for delivery of the corn sweetener is normal with a mean of six days and a standard deviation of two days. If the manager wants a service level of 99 percent, what reorder point should be used?
Question 26
Question
A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would be the same as ordering cost. The production rate would be about double the usage rate.
Compared to the EOQ, the economic production quantity would be approximately:
Answer
-
the same
-
20% larger
-
40% larger
-
20% smaller
-
40% smaller
Question 27
Question
A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would be the same as ordering cost. The production rate would be about double the usage rate.
Compared to the EOQ, the maximum inventory would be approximately:
Answer
-
70% higher
-
30% higher
-
the same
-
30% lower
-
70% lower
Question 28
Question
The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to five percent of the cost of the beer.
At what point should he reorder Stein beer?
Answer
-
0 cases remaining
-
4 cases remaining
-
12 cases remaining
-
16 cases remaining
-
20 cases remaining
Question 29
Question
The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to five percent of the cost of the beer.
If he were to order 16 cases of Stein beer at a time, what would be the length of an order cycle?
Answer
-
0.25 days
-
3 days
-
1 day
-
4 days
-
20 days
Question 30
Question
The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to five percent of the cost of the beer.
If he were to order 16 cases of Stein beer at a time, what would be the average inventory level?
Answer
-
4 cases
-
12 cases
-
8 cases
-
20 cases
-
16 cases
Question 31
Question
The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to five percent of the cost of the beer.
If he were to order 16 cases of Stein beer at a time, what would be the daily total inventory costs, EXCLUDING the cost of the beer?
Answer
-
$2.00
-
$4.00
-
$1.28
-
$3.28
-
$2.56
Question 32
Question
The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to five percent of the cost of the beer.
What is the economic order quantity for Stein beer?
Answer
-
8 cases
-
11 cases
-
14 cases
-
20 cases
-
32 cases
Question 33
Question
A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results:
Sample Service Life (hours)
1 195 500 505 500
2 525 515 505 515
3 470 480 460 470
90. What is the sample mean service life for sample 2?
Answer
-
460 hours
-
495 hours
-
500 hours
-
515 hours
-
525 hours
Question 34
Question
A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results:
Sample Service Life (hours)
1 195 500 505 500
2 525 515 505 515
3 470 480 460 470
What is the mean of the sampling distribution of sample means when service life is in control?
Answer
-
250 hours
-
470 hours
-
495 hours
-
500 hours
-
515 hours
Question 35
Question
A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results:
Sample Service Life (hours)
1 195 500 505 500
2 525 515 505 515
3 470 480 460 470
What is the standard deviation of the sampling distribution of sample means for whenever service life is in control?
Answer
-
5 hours
-
6.67 hours
-
10 hours
-
11.55 hours
-
20 hours
Question 36
Question
A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results:
Sample Service Life (hours)
1 195 500 505 500
2 525 515 505 515
3 470 480 460 470
If he uses upper and lower control limits of 520 and 480 hours, what is his risk (alpha) of concluding service life is out of control when it is actually under control (Type I error)?
Answer
-
0.0026
-
0.0456
-
0.3174
-
0.6826
-
0.9544
Question 37
Question
A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results:
Sample Service Life (hours)
1 195 500 505 500
2 525 515 505 515
3 470 480 460 470
If he uses upper and lower control limits of 520 and 480 hours, on what sample(s) (if any) does service life appear to be out of control?
Question 38
Question
The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results:
Instructor Number of Failures
Prof. A 13
Prof. B 0
Prof. C 11
Prof. D 16
What is the sample proportion of failures (p) for Prof. D?
Question 39
Question
The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results:
Instructor Number of Failures
Prof. A 13
Prof. B 0
Prof. C 11
Prof. D 16
What is the estimate of the mean proportion of failures for these instructors?
Question 40
Question
The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results:
Instructor Number of Failures
Prof. A 13
Prof. B 0
Prof. C 11
Prof. D 16
What is the estimate of the standard deviation of the sampling distribution for an instructor's sample proportion of failures?
Question 41
Question
The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results:
Instructor Number of Failures
Prof. A 13
Prof. B 0
Prof. C 11
Prof. D 16
What are the .95 (5% risk of Type I error) upper and lower control limits for the p-chart?
Answer
-
.95 and .05
-
.13 and .07
-
.1588 and .0412
-
.16 and .04
-
.1774 and .0226
Question 42
Question
The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results:
Instructor Number of Failures
Prof. A 13
Prof. B 0
Prof. C 11
Prof. D 16
Using .95 control limits, (5% risk of Type I error), which instructor(s), if any, should he conclude is (are) out of control?
Answer
-
none
-
Prof. B
-
Prof. D
-
both Prof. B and Prof. D
-
all
Question 43
Question
A Quality Analyst wants to construct a control chart for determining whether four machines, all producing the same product, are under control with regard to a particular quality attribute. Accordingly, she inspected 1,000 units of output from each machine in random samples, with the following results:
Machine Total Defectives
#1 23
#2 15
#3 29
#4 13
What is the sample proportion of defectives for machine #1?
Answer
-
.023
-
.02
-
.0115
-
.0058
-
.005
Question 44
Question
A stint for use is coronary surgery requires a special coating. Specifications for this coating call for it to be at least 0.05 millimeters but no more than 0.15 millimeters.
Suppose the criterion for evaluating this process is that the appropriate capability index must be at least 1.3.
With a long-run process mean of 0.09 and a standard deviation of 0.015, is this process capable?
Question 45
Question
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?
Question 46
Question
Studies on a machine that molds plastic water pipe indicate that when it is injecting 1-inch diameter pipe, the process standard deviation is 0.05 inches. The one-inch pipe has a specification of 1-inch plus or minus 0.10 inch. What is the process capability index (Cpk) if the long-run process mean is 1 inch?
Answer
-
0.50
-
0.67
-
1.00
-
2.00
-
none of the above
Question 47
Question
The specification limit for a product is 8 cm and 10 cm. A process that produces the product has a mean of
9.5 cm and a standard deviation of 0.2 cm. What is the process capability, Cpk?
Answer
-
3.33
-
1.67
-
0.83
-
2.50
-
none of the above
Question 48
Question
The specifications for a product are 6 mm ± 0.1 mm. The process is known to operate at a mean of 6.05 with a standard deviation of 0.01 mm. What is the Cpk for this process?
Answer
-
3.33
-
1.67
-
5.00
-
2.50
-
none of the above
Question 49
Question
138. A process results in a few defects occurring in each unit of output. Long-run, these defects should be monitored with___________________.
Answer
-
p-charts
-
c-charts
-
x-bar charts
-
r-charts
-
o-charts
Question 50
Question
When a process is in control, it results in there being, on average, 16 defects per unit of output. C-chart limits of 8 and 24 would lead to a ________________ chance of a Type I error.
Question 51
Question
When a process is in control, it results in there being, on average, 16 defects per unit of output. C-chart limits of 4 and 28 would lead to a chance of a Type I error.
Question 52
Question
A tool that is not used for quality management is ________________.
Answer
-
Flowchart
-
Histogram
-
Perato Analysis
-
Redesign
-
Check sheets
Question 53
Question
The four dimensions of quality that are sometimes used to determine fitness for use of a product are
Answer
-
performance, special features, durability, and service after sale
-
performance, special features, conformance, and reliability
-
special features, conformance, reliability, and durability
-
performance, conformance, reliability, and durability
-
special features, conformance, durability, and service after sale
Question 54
Question
A tool that depicts process variation graphically is a(n) .
Answer
-
Affinity diagram
-
Check list
-
Control Chart
-
Flow Chart
-
Relationship diagram
Question 55
Question
Which isn't a cost of quality?
Question 56
Question
Lost production time, scrap, and rework are examples of
Answer
-
internal failure costs
-
external failure costs
-
appraisal costs
-
prevention costs
-
replacement costs
Question 57
Question
Warranty service, processing of complaints, and costs of litigation are examples of
Answer
-
internal failure costs
-
external failure costs
-
appraisal costs
-
prevention costs
-
replacement costs
Question 58
Question
Costs of inspectors, testing, test equipment, and labs are examples of
Answer
-
internal failure costs
-
external failure costs
-
appraisal costs
-
prevention costs
-
replacement costs
Question 59
Question
Loss of business, liability, productivity and costs are consequences of
Answer
-
Labor Unions
-
Globalization
-
Poor Quality
-
Robotics
-
Micro-factories
Question 60
Question
Quality planning and administration, quality training, and quality control procedures are examples of
Answer
-
internal failure costs
-
external failure costs
-
appraisal costs
-
prevention costs
-
replacement costs
Question 61
Question
ISO 9000 standards do not have a requirement for
Answer
-
resource
-
remedial
-
systems
-
training
-
management
Question 62
Question
A quality circle is
Question 63
Question
ISO 9000 currently requires of a certified organization
Question 64
Question
The quality control improvement tool which distinguishes between the "important few" and the "trivial many" is
Question 65
Question 66
Question
Which of the following is an element of TQM?
Answer
-
continuous improvement
-
competitive benchmarking
-
employee empowerment
-
team approach
-
all of the above
Question 67
Question
85. Management behaviors supporting an organizational culture that encourages continuous improvement include which of the following?
(I) develop a vision statement for the organization
(II) develop a reward system that promotes the philosophy
(III) institute continuous training programs
(IV) make decisions that adhere to the philosophy
Answer
-
I, II, and IV
-
I, II, III, and IV
-
I and III
-
II, III, and IV
-
II and IV
Question 68
Question
The tool that is useful in the collection and organization of data is:
Answer
-
a control chart
-
a Pareto chart
-
a check sheet
-
a flow chart
-
none of the above
Question 69
Question
A quality improvement technique that involves the sharing of thoughts and ideas in a way that encourages unrestrained collective thinking is:
Answer
-
Pareto analysis
-
benchmarking
-
brainstorming
-
a control chart
-
a check sheet
Question 70
Question
In order for TQM to be successful, it is essential that most of the organization be
Answer
-
members of quality circles
-
under contract
-
ISO certified
-
trained in error detection techniques
-
in agreement with the philosophy and its goals
Question 71
Question
The typical difference between "quality circles" and "continuous improvement teams" is
Answer
-
Quality circles work on product design only
-
Continuous improvement teams work on product and process design
-
Continuous improvement teams use only engineers while quality circles use just the workers doing the work
-
the amount of employee empowerment
-
There is no difference-they are just the same
Question 72
Question
Which of the following is not a goal of process improvement?