Q1: Using the tasks, task times in minutes and required predecessors shown in the table, what is the cycle time necessary to achieve maximum output?
Answer
Answer: 2.0 minutes.
This is the sum of the task times.
Q2: Using the tasks, task times in minutes and required predecessors shown in the table, what activities are assigned to the third station if the desired output is 150 units per 8 hour day?
| Task | Time | Predecessor |
| A | 2.0 | — |
| B | 1.0 | A |
| C | 3.0 | A |
| D | 1.5 | B, C |
| E | 1.5 | D |
| F | 1.5 | D |
| G | 3.0 | E, F |
Answer
Answer: D and E
Q3: The custard colored table shown immediately below displays the number of trips between each pairing of the five departments of CrowFlies Inc., in their office building.
| A | B | C | D | E | |
| A | — | 80 | 60 | 30 | 100 |
| B | — | 50 | 20 | 80 | |
| C | — | 40 | 10 | ||
| D | — | 120 | |||
| E | — |
The light blue table immediately below shows the distance (in feet) between each of the five departments as they are currently located in the office building.
| A | B | C | D | E | |
| A | — | 10 | 20 | 14 | 25 |
| B | — | 14 | 10 | 14 | |
| C | — | 14 | 10 | ||
| D | — | 10 | |||
| E | — |
An overhead view of the departments in their current locations is shown below.
| A | B | C |
| D | E |
Which statement concerning this scenario is best
Answer
Answer: CrowFlies would reduce their total cost by switching the positions of departments B and E.
Q4: Unbeknownst to Jerry Allison, the seasoned industrial engineer, his boss is surreptitiously watching him work at random intervals and records the following.
| Task | # Observations |
| Performing time study | 23 |
| Chatting with colleagues | 3 |
| Surfing the web | 4 |
What percentage of time is Jerry performing his time study
Answer
Answer: 76.7 per cent.
Q5: An MTM study is being performed on an unloading operation involving a wheelbarrow. The last task element is missing, but the analyst knows that the time standard should be 18 seconds. If all of the times in the table are in TMUs, what is the value of the missing element?
| Element Description | Element | Time |
| Fill wheelbarrow | AL3 | 115 |
| Deliver contents of wheelbarrow | AN3 | 160 |
| Return to pile |
Answer
Answer: 225 TMUs
Q6: A company considers four locations to outsource critical services and decides to evaluate each location on six factors. Each of these six factors is assigned an importance weight and the results appear in the colorful table. Which site is the best candidate for outsourcing?
| Factor | Cost | Quality | Service | Long Term | Stability | Flexibility |
| Importance Weight | 0.3 | 0.2 | 0.2 | 0.1 | 0.1 | 0.1 |
| United States | 4 | 6 | 8 | 2 | 5 | 6 |
| Singapore | 0 | 3 | 6 | 5 | 0 | 7 |
| Brazil | 2 | 9 | 5 | 3 | 9 | 6 |
| India | 1 | 9 | 9 | 5 | 5 | 8 |
Answer
Answer: India
Q7: A producer holding 200 units of inventory faces expected demand as shown in the table. What should the planned production be each month in order to finish the planning period with an ending inventory of 0 if the company uses a level strategy?
| Month | Expected Demand | Production Days |
| January | 1000 | 22 |
| February | 800 | 18 |
| March | 800 | 21 |
| April | 1200 | 21 |
| May | 1500 | 22 |
| June | 1100 | 20 |
Answer
Answer: 1100
Q8: Use the product structure tree and the inventory records to determine how many item Cs should be ordered in order to produce 20 phones.
Answer
Answer: 97
Q9: Use the product structure tree and the lead time information (in weeks) to determine when an order for Fs should be placed to deliver phones in week 10 if the phones require 2 weeks to assemble. Assume there is no starting inventory for any component or end item.
Answer
Answer: week 2
Q10: Use the EDD dispatching rule to sequence the following jobs.
| Job | Work time (days) | Due date (days) |
| A | 19 | 20 |
| B | 10 | 25 |
| C | 12 | 30 |
| D | 7 | 8 |
| E | 6 | 12 |
Answer
Answer: D, E, A, B, C
Q11: Use the SPT dispatching rule to sequence the following jobs.
| Job | Work time (days) | Due date (days) |
| A | 19 | 20 |
| B | 10 | 25 |
| C | 12 | 30 |
| D | 7 | 8 |
| E | 6 | 12 |
Answer
Answer: E, D, B, C, A
Q12: Use the LPT dispatching rule to sequence the following jobs.
| Job | Work time (days) | Due date (days) |
| A | 19 | 20 |
| B | 10 | 25 |
| C | 12 | 30 |
| D | 7 | 8 |
| E | 6 | 12 |
Answer
Answer: A, C, B, D, E
Q13: Jobs are processed on a FCFS basis in the order shown in the table. What is the average number of jobs in the system?
|
Job |
Processing Time |
Due Date |
| A | 5 | 12 |
| B | 7 | 15 |
| C | 8 | 25 |
| D | 3 | 6 |
| E | 4 | 30 |
| F | 6 | 20 |
Answer
Answer: 3.64
Q14: Six jobs must be processed first on Machine 1 and then on Machine 2. Which sequence will result in the fastest average processing time for all jobs?
| Job | Machine 1 | Machine 2 |
| A | 6 | 11 |
| B | 6 | 5 |
| C | 12 | 8 |
| D | 12 | 14 |
| E | 11 | 7 |
| F | 9 | 10 |
Answer
Answer: A, F, D, C, E, B
Q15: When using the critical ratio (CR) to develop a sequence
Answer
Answer: a CR of greater than 1.0 means that the job has some slack.
Q16: A product made of two components, each with a component in parallel, and each component with a reliability of .9 yields a system with a reliability of:
Answer
Answer: 98
Q17: A landlord has ten rental properties that he maintains. Over the past two years it seems that he spends all his time repairing major systems in each property and he is considering purchasing a home warranty at a cost of $40 per month per house. His average breakdown maintenance cost is $150 per occurrence and the number of breakdowns is as follows:
| # Breakdowns | # Months |
| 1 | 3 |
| 2 | 6 |
| 3 | 8 |
| 4 | 7 |
|
Total |
24 |
Should he purchase the home warranty and why?
Answer
Answer: Yes, he should purchase the home warranty because he saves almost $20 per month
Q18: Consider the following payoff table:
| State of Nature | ||
| A | B | |
| Alternative 1 | 100 | 150 |
| Alternative 2 | 200 | 100 |
| Probability | 0.4 | 0.6 |
Calculate the EMV for each alternative. What is the highest EMV?
Answer
Answer: 140
Q19: An optimistic decision maker must choose among the four alternative investments shown in the table. Depending on future economic conditions, the investments have different rates of return. Which investment should he select if he has no idea what economic conditions will be like in the coming years?
| Economic Conditions | |||
| Investment | Inflation | Recession | Depression |
| Global Equities Fund | 40% | 40% | 40% |
| Pork Bellies | 20% | 40% | 50% |
| Gold | 40% | 30% | 60% |
| S&P 500 Index Fund | 70% | 20% | 10% |
Answer
Answer: S and P 500 Index Fund
Q20: A pessimistic decision maker must choose among the four alternative investments shown in the table. Depending on future economic conditions, the investments have different rates of return. Which investment should he select if he has no idea what economic conditions will be like in the coming years?
| Economic Conditions | |||
| Investment | Inflation | Recession | Depression |
| Global Equities Fund | 40% | 40% | 40% |
| Pork Bellies | 20% | 40% | 50% |
| Gold | 40% | 30% | 60% |
| S&P 500 Index Fund | 70% | 20% | 10% |
Answer
Answer: Global Equities Fund
Q21: A decision maker must choose among the four alternative investments shown in the table. Depending on future economic conditions, the investments have different rates of return. Which investment should he select if he believes that each of these economic conditions is equally likely to occur in the coming years?
| Economic Conditions | |||
| Investment | Inflation | Recession | Depression |
| Global Equities Fund | 40% | 40% | 40% |
| Pork Bellies | 20% | 40% | 50% |
| Gold | 40% | 30% | 60% |
| S&P 500 Index Fund | 70% | 20% | 10% |
Answer
Answer: Gold
Q22: A fast food franchise is deciding between three locations for its new store. The locations and expected revenues are shown in the table along with the likelihoods that the store will be popular or unpopular. A market research firm has offered to do a study that will guarantee the franchiser that they can select the best location. What is the most that the franchiser should be willing to pay for such a research report?
| Location | Popular | Unpopular |
| Capital City | $50,000 | $20,000 |
| Springfield | $40,000 | $40,000 |
| Shelbyville | $25,000 | $65,000 |
|
Probability |
.7 | .3 |
Answer
Answer: USD 13,500
Q23: Consider the following linear programming problem:
Maximize 12X + 10Y
Subject to: 4X + 3Y = 480
2X + 3Y = 360
all variables ³ 0
The maximum possible profit for the objective function is
Answer
Answer: 1520
Q24: Consider the following linear programming problem:
Maximize 12X + 10Y
Subject to: 4X + 3Y = 480
2X + 3Y = 360
all variables ³ 0
Which of the following points (X,Y) is not feasible?
Answer
Answer: (70,70)
Q25: Consider the following linear programming problem:
Maximize 4X + 10Y
Subject to: 3X + 4Y = 480
4X + 2Y = 360
all variables ³ 0
The feasible corner points are (48,84), (0,120), (0,0), and (90,0). What is the maximum possible value for the objective function?
Answer
Answer: 1200
Q26: A seamstress has 30 yards of cloth and 20 yards of thread to make small, medium, or large shirts. Each small shirt takes 0.75 yards of cloth and 0.5 yards of thread; each medium shirt takes 1 yard of cloth and 0.7 yards of thread, and each large shirt takes 1.2 yards of cloth and 0.9 yards of thread. Each type of shirt takes 30 minutes to sew and the seamstress has 16 hours of time she can devote to sewing. A large shirt sells for $15, a medium for $12, and a small for $10. Using S for small, M for medium, L for large, C for cloth, T for thread, and H for hours, what is an appropriate objective function for this problem
Answer
Answer: Max Profit=15L+12M+10S
Q27: A seamstress has 30 yards of cloth and 20 yards of thread to make small, medium, or large shirts. Each small shirt takes 0.75 yards of cloth and 0.5 yards of thread; each medium shirt takes 1 yard of cloth and 0.7 yards of thread, and each large shirt takes 1.2 yards of cloth and 0.9 yards of thread. Each type of shirt takes 30 minutes to sew and the seamstress has 16 hours of time she can devote to sewing. A large shirt sells for $15, a medium for $12, and a small for $10. Using S for small, M for medium, L for large, C for cloth, T for thread, and H for hours, what is an appropriate constraint for this problem?
Answer
Answer: 0.75S + 1M + 1.2L < 30
Q28: An LP modeler examines her sensitivity report and notes that the final value for item X is 200, and the shadow price is $2 with an allowable increase of 10 and an allowable decrease of 25. Which of the following statements is best?
Answer
Answer: $2 is the most the LP modeler should be willing to pay for an additional unit of item X.
Q29: Which line would be least enjoyable for a customer
Answer
Answer: a line where λ > μ
Q30: An initial transportation solution appears in the table.
| C | D | Factory Capacity | |
| A | 10 | 0 | 10 |
| B | 15 | 25 | 40 |
|
25 | 25 | 50 |
Can this solution be improved if it costs $5 per unit to ship from A to C; $7 per unit to ship from A to D; $8 to ship from B to C; and $9 to ship from B to D?
Answer
Answer: No, this solution is optimal.
+7-9+8-5=+1
Q31: What is the cost of the transportation solution shown in the table?
| W | X | Y | Supply | |
| A |
$3 20 |
$5 50 |
$9 0 |
70 |
| B |
$5 0 |
$4 30 |
$7 0 |
30 |
| C |
$10 40 |
$8 0 |
$3 80 |
120 |
| Demand | 60 | 80 | 80 | 220 |
Answer
Answer: $1070
Q32: Which statement regarding this transportation table is best?
| W | X | Y | Supply | |
| A |
$3 20 |
$5 50 |
$9 0 |
70 |
| B |
$5 0 |
$4 30 |
$7 0 |
30 |
| C |
$10 40 |
$8 0 |
$3 80 |
120 |
| Demand | 60 | 80 | 80 | 220 |
Answer
Answer: This solution can be improved by shipping from C to X.
Q33: A customer service counter records the number of customers that show up each hour and has collected the data in the table. What is the probability of occurrence for 3 customers to arrive in one hour?
| Arrivals per hour | Frequency |
| 0 | 4 |
| 1 | 7 |
| 2 | 11 |
| 3 | 16 |
| 4 | 19 |
| 5 | 13 |
| 6 or more | 10 |
Answer
Answer: 0.20
Q34: A Monte Carlo expert has analyzed customer orders and developed Table A for the assignment of random numbers. Using Table B as a source for random numbers and starting at the top of the left column and working down, what is the average number of orders for the first four weeks?
| Table A | |
| Weekly Orders | Random Numbers |
| 2 | 01-10 |
| 3 | 11-35 |
| 4 | 36-65 |
| 5 | 66-85 |
| 6 | 86-00 |
| Table B | |
| 42 | 71 |
| 35 | 46 |
| 08 | 82 |
| 69 | 03 |
| 98 | 30 |
Answer
Answer: 3.5
Q35: What is wrong with this table of random number intervals for a call center simulation
| Number of Calls Per Hour | Random Numbers |
| 1 | 01 through 04 |
| 2 | 05 through 11 |
| 3 | 12 through 30 |
| 4 | 31 through 66 |
| 5 | 67 through 87 |
| 6 or more | 88 through 00 |
Answer
Answer: There is nothing wrong with this table.
Q36: A set of numbers to represent each possible value or outcome in a computer simulation is called
Answer
Answer: random-number intervals.
Q37: The marketing department of the King Marine Co. has been allocated funds to increase their budget for an upcoming boat show. The department manager has asked the staff to determine which class of their products should benefit from additional advertising. The staff has determined that the pertinent states of nature are low, moderate, and high unemployment and have established the following payoff matrix. Assuming an optimistic slant to the staff report, which product category should be recommended?
Answer
Answer: Speed boat
Q38: It was determined by the expected-value decision rule that the maximum expected value would be obtained from speedboats at a value of $3,400,000. (Payoff values are tabulated in $100,000 units.) Considering the event probabilities given, what is the value of perfect information?
Answer
Answer: 1.5
Q39: Data on the weekly sales of room air conditioning units were matched with the average temperature and calculations produced sample correlation coefficients, r, in the range of -0.75 and -0.83. Which of the following statements best expresses a conclusion that can be drawn from the values of r?
Answer
Answer: As the temperature increases, the number of room air conditioners sold decreases.
