7) The most important performance dimension for product development projects is: A. Quality B.

Product flexibility C. Time-to-market D. Productivity

8) When evaluating a new product development project using net present value analysis, which of the
following will make the project more attractive? A. Delaying the start of the project B. Making the
project run over a longer period of time C. Improving (bringing forward) the date when revenue
will begin D. A and B
9) Which of the following statements is true about value analysis/value engineering (VA/VE)? A. The
purpose of VA/VE is to simplify products and processes. B. The objective of VA/VE is to achieve
equivalent or better performance at a lower cost. C. VA is performed before the production stage, while
VE deals with products already in production. D. both A and B
10) The category given the maximum point value in the Baldrige award is: A. Business results B.
Process management C. Strategic planning D. Customer and market focus
11) Which of the following is not a dimension of design quality? A. Serviceability B. Customization
C. Features D. Durability
12) Which Quality Guru advocated that senior management is responsible for 94% of quality
problems? A. Ishikawa B. Juran C. Crosby D. Deming
13) Which of the following is not an assumption of the basic economic-order quantity model? A.
ordering or setup costs are constant B. quantity discounts are available C. annual demand is constant
and known D. lead time is constant
14) The basic difference between P and Q systems is: A. P models favor more expensive items B. P
model is more appropriate for important items such as critical repair parts C. Q models are event
triggered while P models are time triggered D. Q models are time triggered while P models are event
triggered
15) Which of the following statements is true about the Q-system? A. It does not have an EOQ, since
the quantity varies according to demand. B. The order interval is fixed not the order quantity. C. It does
not have a reorder point but rather a target inventory. D. The system is completely determined by the
two parameters, Q and R.
16) The objectives of work-center scheduling include(s): A. To meet due dates B. To minimize lead
times C. To minimize finish goods inventory D. A and B
17) A _________ approach actually schedules in detail each resource using the setup and runtime
required for each order. A. Forward scheduling B. Backward scheduling C. Infinite loading D. Finite
loading
18) The assignment method is appropriate in solving problems that have the following characteristics:
A. There are 'n' things to be distributed to 'n' destinations B. Though each destination may handle all
the things, the final assignment has each thing assigned to one and only one destination C. Only one
criterion should be used (minimum cost, maximum profit, for example) D. A and C
19) Which of the following according to Goldratt is not a component of production cycle time? A. Wait

time B. Maintenance time C. Setup time D. Process time

20) Goldratt's rule of production scheduling include all but: A. An hour saved at a non-bottleneck is a
mirage B. A process batch should be fixed both along its route and in time C. Do not balance the
capacity - balance the flow D. Utilization and activation of a resource is not the same thing
21) According to Goldratt and Fox, a useful performance measure to treat inventory is ______. A.
Inventory turnover B. Current ratio C. Quick ratio D. Dollar days
22) Which of the following would not be considered in deciding how far to minimum-cost schedule
(crash) a project? A. Project overrun penalties B. Incentives for early completion C. Indirect project
costs (e.g. interest on a construction loan) D. The normal duration times of tasks not on a critical
path
23) The advantages of pure project include all but: A. The project manager has full authority over the
project. B. Team pride, motivation, and commitments are high. C. Decisions are made quickly. D. A
team member can work on several projects.
24) Which of the following is not a typical project milestone? A. Completion of design B. Production
of a prototype C. Training of project members D. Completed testing of the prototype Supply-chain
response relates to the following: A. How quickly a customer order can be filled B. How quickly a
company can react to a new competing product C. How inexpensive the product is D. A and B
26) According to Hau Lee, which of the following types of products need to be delivered with efficient
supply-chains? A. Custom products B. Innovative products C. Grocery products D. High technology
products
27) The idea of the Value Density calculation is: A. Finding a carrier that can handle the weight B.
Matching the weight of the product with an appropriate carrier C. Determining how a product should
be shipped considering its weight and value D. Finding the minimum cost carrier
28) Which of the following statements is not true about capacity management in operations? A. When
looking at capacity, operations managers need to look at both resource input and product outputs. B. An
operations management view also emphasizes the time dimension of capacity. C. Capacity planning
itself has different meaning to individuals at different levels within the operations management
hierarchy. D. The definition of capacity, in an operations management context, makes a clear
distinction between efficient and inefficient use of capacity.
29) The steps to determining capacity requirements include: A. Using decision trees to evaluate
capacity alternatives B. Calculating equipment and labor requirements to meet product line forecasts C.
Projecting labor and equipment availabilities over the planning horizon D. B and C
30) Capacity utilization rate can be computed as: A. Capacity used - best operating level B. Capacity
used x best operating level C. Capacity used / best operating level D. Capacity used + best operating
level
31) Which of the following is NOT one of the more successful applications of lean concepts in
services? A. Organize problem-solving groups B. Upgrade housekeeping C. Upgrade quality D.
Introduction of demand-push scheduling

32) A kanban card is used to signal that: A. work is ready to be moved to the next station B. a worker
has run out of parts C. a machine has broken down D. work is authorized to replenish a downstream
station
33) Which of the following is not true about JIT systems? A. The JIT system is based on the philosophy
of eliminating waste and utilizing the full capability of the worker. B. Under JIT the ideal lot size is
one. C. JIT is typically applied to repetitive manufacturing. D. The goal of JIT is to drive all
inventory queues to a moderate level thus minimizing inventory investment and shortening lead
times.
34) Which phrase most closely describes the Delphi forecasting technique? A. consumer survey B.
random individual opinions C. group of expert's opinions D. test markets
35) Which of the following would not be classified as a component of demand? A. Cycle B.
Seasonality C. Trend D. Causal variation
36) Under exponential smoothing, if we want our forecast to be very responsive to recent demand, the
value of alpha should be: A. moderate B. zero C. small D. large E. No, Acme is not a holder in due
course because of some other reason.
37) One option for altering the pattern of demand is: A. carrying inventory B. using overtime C. hiring
employees D. pricing
38) Which of the following is not a cost relevant to aggregate production planning? A. Costs associated
with changes in the production rate B. Quantity discounts C. Basic production costs D. Inventory
holding costs
39) Aggregate planners balance: A. demand and capacity B. demand and inventories C. demand and
costs D. supply and inventories
40) Which MRP system input element specifies how many and when the firm plans to build each end
item? A. Master production schedule B. Bills of material C. Inventory records file D. Capacity
planning
41) Which of the following most closely describes net material requirements? A. gross requirements on-hand - planned order receipts B. gross requirements - on-hand + planned order receipts C. gross
requirements - planned order receipts D. gross requirements - planned order releases
42) Which of the following is true about MRP Systems? A. demand pattern is random B. lot sizing is
EOQ C. based on independent demand D. objective is to meet manufacturing needs
43) Which of the following statements is not true about capacity management in operations? A.
Capacity planning itself has different meaning to individuals at different levels within the operations
management hierarchy. B. An operations management view also emphasizes the time dimension of
capacity. C. When looking at capacity, operations managers need to look at both resource input and
product outputs. D. The definition of capacity, in an operations management context, makes a
clear distinction between efficient and inefficient use of capacity.

44) Service capacity: A. is highly time and location dependent B. is subject to less volatile demand
fluctuations C. utilization directly impacts service quality D. A and C
45) The steps to determining capacity requirements include: A. Using decision trees to evaluate
capacity alternatives B. Calculating equipment and labor requirements to meet product line forecasts C.
Projecting labor and equipment availabilities over the planning horizon D. B and C