Logistics Management Test Bank - 2890 Verified Questions

Page 1


Logistics Management Test Bank

Course Introduction

Logistics Management is a comprehensive course that explores the principles, strategies, and technologies involved in the efficient movement and storage of goods within a supply chain. Students will learn about transportation modes, inventory control, warehousing, procurement, and distribution systems, as well as the critical role that logistics plays in global supply chain optimization. The course emphasizes practical applications, problem-solving, and the use of information technology in logistics, preparing students to effectively manage resources and streamline operations in various industries.

Recommended Textbook

Operations Management Managing Global Supply Chains 1st Edition by Ray R. Venkataraman

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Page 2

Chapter 1: Introduction to Managing Global Operations and Supply Chains

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Sample Questions

Q1) Which of the following is NOT a response to managing challenges in the supply chain?

A)Supply chains are being broken up into smaller fragments to make them more flexible.

B)Manufacturing facilities are reconfigured to focus on a narrower scope of production.

C)There is a reduction of outsourcing.

D)There is a reduction of offshoring.

Answer: A

Q2) Companies that take a creative and proactive approach to incorporating sustainability into their operations and supply chains ______.

A)can reduce reliance on external resources

B)craft legal contracts that will penalize suppliers in case of failure to meet the company's supply requirements

C)can reduce costs and mitigate risks

D)can charge high prices for products of poor quality

Answer: C

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Chapter 2: Operations and Supply Chain Strategies

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Sample Questions

Q1) Which of the following terms is incorrectly paired with its description?

A)plan: recognize an opportunity for a financial investment

B)do: test the change by implementing a small-scale pilot study.

C)check: review/analyze test results and identify lessons learned

D)act: take action based on what was learned from the previous step.

Answer: A

Q2) Which of the following terms is correctly paired with its description?

A)Critical success factors (CSFs): strategic factors that a company requires to compete in a given industry

B)Core competencies: factors that identify the firm as belonging to an industry

C)Business strategy: strategy that governs mergers and acquisitions

D)Corporate strategy: strategy that governs day-to-day operations

Answer: A

Q3) The performance of an operations strategy is judged by how well ______.

A)it supports the firm's corporate and business strategies

B)it supports the firm's corporate tactics

C)it influences business strategy

D)it influences corporate strategy

Answer: A

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Page 4

Chapter 3: Project Management

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Sample Questions

Q1) Which of the following is NOT a popular approach to risk mitigation?

A)simply accept the risk

B)minimize the risk

C)share the risk

D)avoid doing risky projects

Answer: D

Q2) Which of the following statements about the work package is true?

A)The work breakdown structure is part of the work package.

B)The work package is determined in the conceptualization stage of the project.

C)The work package is part of the process following the completion of the project.

D)The work package is part of the work breakdown structure.

Answer: D

Q3) One way to determine the duration of each activity in a project with a reasonable degree of accuracy is ______.

A)deterministic estimation

B)qualitative estimation

C)optimistic estimation

D)pessimistic estimation

Answer: A

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Page 5

Chapter 4: Supplement: Project Management

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Sample Questions

Q1) The time-phased budget ______.

A)identifies the correct sequencing of tasks

B)enables the project team to determine when budgeted money is likely to be spent on completion of tasks

C)both A and B

D)neither A nor B

Q2) Find the area under the normal curve between the Z values 0.37 and 0.51.

A)5.07%

B)4.10%

C)17.23%

D)19.99%

Q3) In considering whether we should crash a project,we should ______.

A)assess the costs associated with each of the project's activities

B)accelerate those tasks that will have the most impact on the schedule for the least cost

C)both A and B

D)neither A nor B

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6

Chapter 5: Product and Service Innovations

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Q1) DFMA ______.

A)cannot be implemented using software

B)refers to designed for maximum aggravation

C)refers to products definitely for mature application

D)refers to design for manufacturing and assembly

Q2) Modular design is an approach in which independently created units called modules ______.

A)can be combined with other modules

B)can be recycled

C)can be sold at a price below cost of production

D)do not need to comply with government regulations

Q3) When poorly designed goods or services affect consumers adversely,consumers have legal recourse ______.

A)by going on strike

B)by filing a lawsuit

C)by writing to the World Trade Organization

D)by writing to the United Nations

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Chapter 6: Supplement: Reliability

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Sample Questions

Q1) Given the failure rate of a component,we can calculate MTBF as ______.

A)the range of the failure rate across many tested components

B)the standard deviation of the failure rate across many tested components

C)the square of the failure rate

D)the reciprocal of the failure rate

Q2) The overall reliability of the system is the ______.

A)sum of the reliabilities of the individual components

B)minimum reliability of the individual components

C)product of the reliabilities of the individual components

D)maximum reliability of the individual components

Q3) A product consists of three components with reliability of 0.95,0.95,and 0.95,respectively.The second component has a backup with reliability of 0.95.Calculate and indicate product reliability.

A)0.90%

B)0.87%

C)0.76%

D)0.83%

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Chapter 7: Managing for Quality

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Sample Questions

Q1) The Coca-Cola Company uses the same formula and basic bottle shape for Coke worldwide,but the labels on the bottles and their sizes vary depending upon the market.This illustrates ______.

A)thinking globally but acting locally

B)manufacturing locally but designing globally

C)thinking locally but acting globally

D)manufacturing globally but designing locally

Q2) During the measure phase of Six Sigma,the project team ______.

A)gathers data

B)makes improvements to the process

C)ensures the problem is well defined

D)ensures the improvements are sustained

Q3) Prevention costs include ______.

A)costs incurred to prevent defects and errors from occurring before manufacturing the product or delivering the service

B)costs of inspecting employees after they have manufactured a product

C)costs of managing product returns

D)liability resulting from product defects

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9

Chapter 8: Quality Improvement and Control Tools

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Sample Questions

Q1) The Six Sigma quality program was introduced by ______.

A)Toyota

B)General Electric

C)Motorola

D)Allied Signal

Q2) If the standard deviation of the population is not known,______ as a measure of dispersion.

A)we can take an educated guess

B)we can use the range value (the difference between the maximum and minimum values)

C)we can use the variance

D)we can use the mean plus or minus three standard deviations

Q3) Which of the following is associated with a control chart?

A)center line

B)upper specification limit

C)lower specification limit

D)cumulative defect line

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Chapter 9: Capacity Planning

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Sample Questions

Q1) Changes in demand for a company that sells its products to several foreign countries forces the company to ______.

A)alter not only its own capacity but also the capacity of its suppliers

B)exit the market

C)stop offering its products in certain markets

D)change the product design

Q2) Which of the following is NOT one of the things a firm might do if available capacity is insufficient in the medium term?

A)hire more workers

B)ask employees to work overtime

C)use a subcontractor

D)reduce the quality of its output

Q3) During the growth stage of the product life cycle,companies will need to ______.

A)increase capacity

B)keep capacity constant

C)reduce capacity

D)adjust product pricing

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11

Chapter 10: Supply Chain Design and Location Planning

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Sample Questions

Q1) Which of the following is NOT a critical success factor associated with the decision to locate in a particular country?

A)markets and customer proximity

B)proximity to suppliers and resources

C)competitors' locations

D)customer safety

Q2) The dumping of goods by foreign producers is intended to ______.

A)capture market share quickly

B)drive domestic producers out of the market

C)quickly increase product price

D)influence the elasticity of demand

Q3) Trade agreements such as ______ have made it attractive to companies to locate abroad.

A)FICO

B)GATT

C)PATT

D)WTA

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Chapter 11: Process Design and Layout Planning

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Sample Questions

Q1) In which process is a product tailored to the customer's specifications?

A)job-shop process

B)continuous process

C)project process

D)batch process

Q2) Which of the following tools is not correctly paired with its description?

A)assembly drawing: an enlarged view of the product that has detailed listing of all parts and subassemblies

B)assembly chart: a step-by-step pictorial representation of the assembly process.

C)process route sheet: a document that describes the sequence of different operations,places or people involved in a process.

D)process mapping: a graphic that shows different causes contributing to an effect

Q3) The engineer-to-order method ______.

A)offers the highest degree of product customization

B)is exemplified by services offered by lawyers

C)is similar to make-to-stock

D)is usually for high-volume production

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13

Chapter 12: Supplement: Tools for Analyzing, Designing, and Selecting Processes and Layouts

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Sample Questions

Q1) To calculate the theoretical minimum number of workstations (N)required,______.

A)we need to first calculate the cycle time

B)we need to first calculate the difference between task times

C)we need to first calculate the balance efficiency

D)we need to first calculate the flow time

Q2) Which of the following is NOT a rule in balancing an assembly line?

A)the most-following-tasks rule

B)the ranked-positional-weight rule

C)the longest-operating-time rule

D)the most-frequent-following-tasks rule

Q3) Which of the following is true of ASYBL?

A)It stands for Asymmetric Balancing of Production Lines.

B)It is used to solve problems related to line balancing.

C)It leads to efficiencies in cost management.

D)It is used to identify indifference points.

Q4) If the sum of all task times is 20 and the cycle time is 20,then ______.

A)the number of workstations is one

B)the number of workstations is 400

C)the balance efficiency is .88

D)the idle time is 3

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Chapter 13: Supplier Management

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Sample Questions

Q1) The supplier management process consists of ______ tasks.

A)five

B)eight

C)seven

D)nine

Q2) Which of the following is FALSE about fixed-price contracts?

A)The contract subjects the supplier to a large degree of financial risk in the event of cost escalations.

B)The contract includes a fair and reasonable incentive that requires the contractor to assume an appropriate share of the risk.

C)The administrative burden of signing the contract is very high.

D)The contract subjects the buyer to financial loss if the market price drops.

Q3) Which of the following is an appropriate performance measure for a company whose corporate goal is to deliver quality products to its customers?

A)on-time delivery

B)ability to respond to last-minute order changes

C)proximity to the buyer's premises

D)delivery of defect-free products to buyer

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Chapter 14: Logistics Management

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Sample Questions

Q1) Cross-docking is a logistics practice in which ______.

A)inbound shipments from a carrier are transferred to outbound carriers with little or no intermediate storage in between

B)returned goods from customers are transferred directly to the manufacturer without storage in an intermediate warehouse

C)intermodal transportation is completely avoided

D)transportation is accomplished using a single carrier

Q2) A failure in the order fulfillment process can ______.

A)lead to loss of market share

B)reduce the elasticity of demand

C)invoke government regulation

D)lead to noncompliance with ISO standards

Q3) With LTL,______.

A)we are talking about less-than-tariff load

B)shippers may combine orders from several shippers

C)shipping is not regulated

D)shipping may not meet ISO requirements

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Page 16

Chapter 15: Demand Management and Customer Service

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Sample Questions

Q1) _______ in customer service refers to making the product or service available when and where the customer wants it.

A)Comfort

B)Delivery

C)Convenience

D)Time

Q2) Which of the following is a customer service measure of time?

A)order fulfillment

B)customer complaints

C)on-time deliveries

D)response times to emergency situations

Q3) The four supply chain dimensions of customer service include ______.

A)reliability,communication,time,and convenience

B)time,comfort,convenience,and effort

C)reliability,affordability,time,and delivery

D)time,service,effort,and delivery

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17

Chapter 16: Demand Forecasting Methods

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Sample Questions

Q1) ______ is the average of the sum of the absolute differences between the actual and forecasted demand values.

A)Mean squared error (MSE)

B)Mean absolute deviation (MAD)

C)Mean absolute percentage error (MAPE)

D)Cumulative sum error (CSE)

Q2) <i>Past behavior of demand is indicative of its future behavior,therefore past demand data can be used to construct demand forecasts.</i>This statement is the underlying principle of the ______ method.

A)causal

B)market research

C)time series analysis

D)Delphi

Q3) Which of the following is a model of combining the trend and seasonal components?

A)subtractive

B)multiplicative

C)trend-adjusted exponential smoothing

D)linear trend analysis

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Page 18

Chapter 17: Lean Operations and Supply Chains

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Sample Questions

Q1) During the backflush process,______.

A)parts that go into each unit of the product are removed from inventory

B)parts that go into each unit of the product are scrapped or refurbished

C)workers make sure of part interchangeability

D)workers confirm that parts are within tolerances specified

Q2) Which of the following statements is true with regard to workflow?

A)Workflow is the sequence of connected steps or operations necessary to complete a task.

B)Dependence is the idea that adjustments to one element in the workflow have no implications for other elements.

C)Independence with regard to workflow is the idea that an element in the workflow is not subject to government regulation.

D)Throughput is a measure of speed applied to processes in the service industry.

Q3) A supplier park ______,

A)is a solution to the physical separation of suppliers from the manufacturer

B)is particularly appropriate for areas with sparse populations

C)is one way to improve the quality of manufactured products

D)can lead to price increases

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19

Chapter 18: Inventory Management

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Sample Questions

Q1) The objective of inventory management in the airline industry is ______.

A)to maximize the total revenues generated by the mix of fare classes sold for a flight

B)to ensure seats are cleaned

C)to provide the highest quality of service

D)nonexistent,as there is no inventory relevant to air transportation

Q2) Examples of environmentally friendly products include ______.

A)products that are biodegradable

B)products that contain materials from fossil fuels

C)products with large carbon footprints

D)products that require large amounts of inventory

Q3) Active tags are ______.

A)useful for tracking high-value goods that need to be scanned over long ranges

B)less expensive than passive tags

C)those that can be monitored from a long distance (e.g.,company headquarters)

D)those for which government subsidies are available

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Chapter 19: Inventory Control Models

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Sample Questions

Q1) In the economic order quantity model,ordering at the economic order quantity level implies that ______.

A)the total ordering and holding costs are equal

B)the total ordering costs are higher than the total holding costs

C)the total ordering costs are lower than the total holding costs

D)the total ordering costs are not equal to the total holding costs

Q2) The setup cost to make a carpet is $20 per setup.The holding cost is $2.00 per yard per year,and the annual demand is 12,000 yards.The manufacturing facility operates 300 days,and 120 yards of the carpet are produced per day.Given this information,which of the following statements is true?

A)With an optimum order quantity of 600,the length of the production run in days is 5.

B)With an optimum order quantity of 500,the length of the production run in days is 6.

C)With an optimum order quantity of 400,the length of the production run in days is 7.

D)With an optimum order quantity of 300,the length of the production run in days is 8.

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21

Chapter 20: Sales and Operations Planning

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Sample Questions

Q1) The first step in sales and operations planning is ______.

A)data gathering

B)supply planning

C)demand planning

D)financial planning

Q2) Which of the following methods does not guarantee an optimum sales and operations plan?

A)linear decision rule

B)management coefficient model

C)trial-and-error method

D)optimization model

Q3) Which of the following is a special case of linear programming that can be used to obtain optimum aggregate plans that can enable planners to balance capacity and demand at the lowest possible cost?

A)linear decision rule

B)transportation model

C)simulations

D)management coefficient model

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Chapter 21: Master Scheduling and Material Requirements Planning

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Q1) To meet short-run demand and to facilitate production,aggregate units established by sales and operations planning are ______.

A)disaggregated

B)redesigned

C)retooled

D)discarded

Q2) When a company has a reputation of being environmentally unfriendly,______.

A)investors will favor it as the operating costs will generally be lower

B)investors will not favor it as the operating costs will be high

C)customers will prefer to buy its products

D)customers will prefer not to buy its products

Q3) The process of making raw materials,components,parts,or subassemblies available only when they're actually required is called ______.

A)netting

B)pegging

C)time phasing

D)safety lead time logic

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Page 23

Chapter 22: Supplement: Capacity Requirements Planning,

MRP II, ERP, and DRP

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Q1) When loading limits are set on the amount of load assigned to each work center per period,this is referred to as ______.

A)finite loading

B)limited loading

C)controlled loading

D)managed loading

Q2) ______ refers to the production capability of a facility per unit of time.

A)Capacity

B)Inventory buffer

C)Demand

D)Production volume

Q3) ______ systems typically include modules that provide back-office support,customer relationship management,time management,expense management,resource management,and project management.

A)Service ERP

B)MRP

C)MRP II

D)DRP

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Chapter 23: Detailed Scheduling

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Q1) Which of the following statements is FALSE about bottleneck operation?

A)The bottleneck resource should never be kept idle.

B)The bottleneck resource should always be fully staffed.

C)The bottleneck resources should be used to support the nonproductive resources.

D)Production should be synchronized based on the requirement of the bottleneck operation.

Q2) Computerized short-term scheduling is often referred to as ______.

A)finite capacity scheduling (FCS)

B)infinite capacity scheduling (ICS)

C)regular capacity scheduling (RCS)

D)variable capacity scheduling (VCS)

Q3) Jobs are ranked according to their processing times,and the job with the longest processing time will be processed first and completed in the ______.

A)shortest processing time

B)earliest due date

C)longest processing time

D)critical ratio (CR)

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25

Chapter 24: Linear Programming

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Q1) In order to fertilize his vegetable farm,John,a farmer,needs to choose from two fertilizers: Nitro Plus and Phosphate Max.Each bag of Nitro Plus costs $7 and contains 8 pounds of nitrogen and 6 pounds of phosphate.Each bag of Phosphate Max costs $9 and contains 4 pounds of nitrogen and 8 pounds of phosphate.John's vegetable farm requires at least 32 pounds of nitrogen and 48 pounds of phosphate.(Assume fractions of a bag are allowed).At the optimal solution,how many bags of Nitro Plus does John use?

A)3.2 bags

B)1.6 bags

C)2.1 bags

D)4.8 bags

Q2) A sensitivity analysis report generated by Excel Solver includes the ______ and the ______.

A)fixed cells table,variable cells table

B)constraint table,variable cells table

C)constraint table,objective table

D)variable cells table,decision variables table

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Chapter 25: The Transportation Models

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Q1) Refer to the Shipping Costs for The Allied Motors Company.Solve the transportation problem using Excel Solver.(Remember that in balanced transportation problems all constraints-except the non-negativity constraints of the decision variables-should be set as an equal-to (=)sign in the Excel Solver dialogue.)At the optimum solution,the cost of shipping from Lowell to Norfolk is ______.

A)$893

B)$434

C)$672

D)$576

Q2) With the ______ method,an initial feasible solution to the transportation problem is obtained by allocating shipments beginning with the route that has the lowest cost of transportation.

A)matrix least cost method

B)matrix maximum profit method

C)northwest corner rule

D)stepping stone method

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Chapter 26: Waiting Line Models

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Q1) In queuing models,we make several assumptions about the arrival pattern of customers.Which of the following is NOT one of those assumptions?

A)Customers will patiently wait in line for their turn to receive service.

B)Customers will switch lines to whichever line is moving fastest.

C)Customers will not leave the waiting line.

D)Customers will not refuse to join the line (balk).

Q2) If the average number of customers served per hour is two,then the probability that the service exceeds 45 minutes for any customer is ______.

A)22.3%

B)10.5%

C)36.8%

D)17.4%

Q3) Which of the following is NOT one of the commonly used measures of the queuing model?

A)average number of customers waiting in line

B)average time a customer spends waiting in line for service

C)average value of transaction by the customer

D)capacity utilization factor for the system

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Chapter 27: Simulation

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Q1) Consider the data on Inventory of Widgets Over a 10-Day Period.Any time that ending inventory falls to 15 or below,an order is placed for 20 units of the product.The lead time for delivery varies and is shown in the column under Lead Time.If the backorder costs amount to $9 for each widget that is on backorder,then what are the total backorder costs?

A)$0

B)$115

C)$9

D)$90

Q2) Consider the Demand for Microwave Ovens dataset.What is the total demand corresponding to random numbers 59,8,60,10,80,and 31?

A)8

B)9

C)10

D)11

Q3) ______ is typically achieved through statistical analysis.

A)Model verification

B)Validation

C)Model formulation

D)Experimentation

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Chapter 28: Learning Curves

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Q1) Which of the following metrics is used to calculate the time required for a particular repetition of a task or to produce a particular unit of an item?

A)unit time coefficient value

B)flow time coefficient value

C)production time coefficient value

D)total time coefficient value

Q2) Acme,Inc.,produces widgets.To manufacture a new type of widget,it took 60 hours for the first widget.Acme estimates it has a 60% learning rate.Using the logarithmic approach,calculate the time it will take to manufacture the 60th widget.

A)1.85 hours

B)3.70 hours

C)4.55 hours

D)2.94 hours

Q3) Learning curves are of little use for ______.

A)nonroutine jobs

B)repetitive jobs of short duration

C)complex jobs

D)jobs that require long time to complete

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Chapter 29: Decision-Making Tools

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Q1) Refer to the data on Expected Demand for Acme Widgets.If the company has information that demand is going to be low,what is the option that the company should choose?

A)Build capacity

B)Do nothing

C)Outsource

D)either Do nothing or Outsource

Q2) The actions decision-makers can take to address or solve the problem are referred to as ______.

A)consequences

B)states of nature

C)payoffs

D)decision alternatives

Q3) Decisions are made when the state of nature is known under which of the following scenarios?

A)decisions under certainty

B)decisions under uncertainty

C)decisions under state of nature

D)decisions under risk

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