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  Essay Questions  115.Consider the following decision scenario:  If somehow you find out for certain that state of nature 4 is going to occur, which alternative will you select?            116.Consider the following decision scenario:  If you are uncertain which state of nature will occur, and use the maximin criterion, which alternative will you select?            117.Consider the.

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    61.In which type of processing system would gasoline be produced from crude oil?    A.job shop   B.batch   C.assembly   D.continuous   E.project     62.Which of the following is not a characteristic of layout decisions in system design?    A.substantial investment of both money and effort   B.long-term commitment   C.significant impact on short-term efficiency   D.usually well received by operative personnel   E.can affect supplier or customer processes     63.An example of.

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  True / False Questions  1.Ergonomics is the use of computers and robots in the workplace.      2.Specialization is one of the sources of disagreement between the efficiency and behavioral approaches to job design.      3.One disadvantage of specialization is worker dissatisfaction.      4.The quickest, most effective way to improve an employee's job satisfaction is to increase his.

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    51.One way to increase reliability is to:  A.eliminate backup components.   B.improve preventive maintenance procedures.   C.increase mean repair time.   D.increase the number of independent components.   E.use a global supply chain.     52.Which of the following is not a reason for redesigning a product or service?  A.to reduce labor or material cost   B.to increase the level of employee satisfaction   C.to increase the.

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    11.The maximin approach involves choosing the alternative that has the "best worst" payoff.      12.The Laplace criterion treats states of nature as being equally likely.      13.The maximax approach is a pessimistic strategy.      14.A weakness of the maximin approach is that it loses some information.        Multiple Choice Questions  15.In a decision-making setting, if the manager has to.

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  True / False Questions  1.Decision trees, with their predetermined analysis of a situation, are really not useful in making health care decisions since every person is unique.      2.Bounded rationality refers to the limits imposed on decision making because of costs, human abilities, time, technology, and/or availability of information.      3.In reaching a decision, the.

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    21.The term "suboptimization" is best described as the:    A.result of individual departments making the best decisions for their own areas but hurting other areas.   B.limitations on decision making caused by costs and time.   C.result of failure to adhere to the steps in the decision process.   D.result of ignoring symptoms of the problem.   E.optimization on a.

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    11.Repetitive processing systems usually produce goods specifically for customer orders rather than for inventory.      12.Morale problems can be a reason for redesign of a facility layout.      13.There are three basic process types: input, processing, and output.      14.A cafeteria line would be an example of a process-focused layout.      15.A possible disadvantage of a product layout.

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    11.Capacity increases are usually acquired in fairly large "chunks" rather than in smooth increments.      12.In cost-volume analysis, costs that vary directly with volume of output are referred to as fixed costs because they are a fixed percentage of output levels.      13.The break-even quantity can be determined by dividing the fixed costs by.

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    31.Utilization is defined as the ratio of:    A.actual output to effective capacity.   B.actual output to design capacity.   C.design capacity to effective capacity.   D.effective capacity to actual output.   E.design capacity to actual output.     32.Which of the following would tend to reduce effective capacity?    A.suppliers that provide more reliable delivery performance   B.reduced changeover times   C.more employee cross-training   D.improved production quality   E.greater variety in.

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    51.An alternative will have fixed costs of $10,000 per month, variable costs of $50 per unit, and revenue of $70 per unit. The break-even point volume is:    A.100.   B.2,000.   C.500.   D.1,000.   E.800.     52.For fixed costs of $2,000, revenue per unit of $2, and variable cost per unit of $1.60, the break-even quantity is:    A.1,000.   B.1,250.   C.2,250.   D.5,000.   E.3,000.     53.Which of the following.

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  96.Given the following data for a make-or-buy decision:  Which alternative would you select for a quantity of 24,000 units per year?            97.Given the following data for a make-or-buy decision:  What would be your total costs for the preferred alternative, for 32,000 units per year?            98.Given the following data for a make-or-buy decision:  What would be.

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    41.Reliability can be improved by the use of backup components.      42.Delayed differentiation and modular design are tactics for mass customization.      Multiple Choice Questions 43.Which of the following is least likely to result in product innovations that have near-term commercial application?  A.process blueprinting   B.development   C.applied research   D.quality function deployment   E.basic research     44.Which of the following is not one of the.

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  True / False Questions  1.Continuous processing is the best way to produce customized output.      2.As a general rule, continuous processing systems produce products for inventory rather than for customer order.      3.A job-shop processing system generally requires less-skilled workers than a continuous processing system.      4.Avoiding bottlenecks is the primary goal of product design.      5.In general, job-shop.

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    31.Which one of these is not used in decision making under risk?    A.EVPI   B.EMV   C.decision trees   D.minimax regret   E.All are used for risk situations.     32.The term "opportunity loss or regret" is most closely associated with:    A.minimax regret.   B.maximax.   C.maximin.   D.expected monetary value.   E.Laplace.     33.The expected monetary value criterion (EMV) is the decision-making approach used with the decision environment of:    A.certainty.   B.risk.   C.uncertainty.   D.aversion.   E.neutrality.     34.A decision tree is:    A.an.

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    21.Outsourcing some production is a means of _________ a capacity constraint.    A.identifying   B.modifying   C.supporting   D.overcoming   E.repeating     22.Which of the following is not a basic question in capacity planning?    A.what kind is needed   B.how much is needed   C.when is it needed   D.who will pay for it   E.what it will be used for     23.Which of these factors would not be subtracted from design capacity.

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    71.Making plans for how products that have reached the end of their useful lives will be dealt with is the primary subject of:  A.cradle-to-grave assessment.   B.end-of-life programs.   C.life-cycle analysis.   D.three R's programs.   E.process mapping.     72.One of these is not a characteristic of a well-designed service system:  A.user friendly   B.robust   C.distributed computer networks   D.cost effective   E.easy to sustain     73.A formal way to document.

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    71.Laser technology used in surgical procedures is an example of technological advances in:    A.product.   B.facility layout.   C.process.   D.information.   E.reverse engineering.     72.Product profiling links key product or service requirements to:    A.market conditions.   B.order sizes.   C.pricing strategies.   D.schedule changes.   E.process capabilities.     73.Layout design has many objectives, one of which is:    A.reduce bottlenecks.   B.move materials and workers simultaneously.   C.use workers and space efficiently.   D.hold material handling costs to 27.

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    31.Taguchi design methods involve identifying the optimal operating or environmental conditions for a given product.      32.Quality function deployment (QFD) is based on a set of standards which relate customer requirements to company capabilities.      33.The quality function deployment matrices are often referred to as the "house of quality" because, when completed, they "house".

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  91.Given the following data for a make-or-buy decision:  What are total costs to buy a quantity of 15,000 units per year?            92.Given the following data for a make-or-buy decision:  What are total costs to make a quantity of 15,000 units per year?            93.Given the following data for a make-or-buy decision:  For what quantity would you.

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  136.Determine the minimum number of workstations needed for this situation:Operating time is 450 minutes per day.Desired output is 80 units per day.The sum of task times is 56 minutes.            137.Given the following data:  Determine the percentage idle time.            138.Given the following process layout data for locating six departments in the six areas shown:  What.

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    21.Concurrent engineering means that at least two engineers are involved in product design at the same time.      22.One approach to extending a product's life cycle is to promote alternate uses of the product.      23.Quality function deployment is a structured approach that guarantees that the highest-quality product or service will be designed.      24.Product liability.

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    51.The substitution of machinery that has sensing and control devices for human labor is best described by the term:    A.automation.   B.feedback control.   C.computer-aided manufacturing.   D.computer-integrated manufacturing.   E.flexible manufacturing system.     52.Computer-aided manufacturing refers to the use of computers in:    A.product design.   B.decision making.   C.data analysis.   D.quality control.   E.process control.     53.A group of machines including supervisory computer control, automatic material handling, and possibly robots.

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    41.Everything else being equal, a firm considering outsourcing can be reasonably certain that:    A.total costs will be lower.   B.its supplier probably has more expertise in whatever is being outsourced.   C.it can maintain tight control over knowledge.   D.proprietary information will not be disclosed.   E.control over operations will be maintained.     42.Capacity in excess of expected demand that is.

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    41.When new products or services are being planned, process selection occurs as a matter of course. Process selection also comes into play as a result of:(I) technological changes.(II) competitive pressures.(III) fundamental changes in demand patterns.    A.I only   B.II only   C.III only   D.I and II but not III   E.I, II, and III     42.Process choice is _________ driven.    A.demand   B.operations   C.marketing   D.process   E.capacity     43.The.

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    71.The construction manager for Acme Construction, Inc., must decide whether to build single-family homes, apartments, or condominiums. He estimates annual profits (in $000) will vary with the population trend as follows:  If he uses the Laplace criterion, which kind of dwellings will he decide to build?    A.single family   B.apartments   C.condos   D.either single family or apartments   E.either.

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    91.Heuristic rules are used primarily in which of these types of layouts?(I) Product(II) Process(III) Fixed-position    A.I   B.II   C.I and III   D.I and II   E.II and III     92.Heuristic rules are usually applied when:    A.an optimum is necessary.   B.a computer program is unavailable.   C.a problem has a small number of alternatives.   D.a problem has a large number of alternatives.   E.other approaches have failed.     93.An.

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  101.Consider the following information:  What are total costs for the break-even quantity?            102.Consider the following information:  What quantity would be required for a profit of $2,000?            103.Consider the following information:  What profit (loss) would there be for a quantity of 27,000?            104.Consider the following information:  What profit (loss) would there be for a quantity of 10,000?            105.Consider the.

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    41.Consider the following decision scenario:  *PV for profits ($000)If P(high) is .60, the choice for maximum expected value would be:    A.buy.   B.lease.   C.rent.   D.high.   E.low.     42.Consider the following decision scenario:  *PV for profits ($000)The maximax strategy would be:    A.small.   B.medium.   C.med.-large.   D.large.   E.ex-large.     43.Consider the following decision scenario:  *PV for profits ($000)The maximin strategy would be:    A.small.   B.medium.   C.med.-large.   D.large.   E.ex-large.     44.Consider the following decision scenario:  *PV for profits ($000)The minimax regret.

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    True / False Questions  1.Reliability is the probability that a product or system will function when activated.      2.If a system depends on two subsystems functioning when activated, the reliability of that system is equal to that of the less reliable subsystem.      3.Redundancy is often more cost-effective than increasing individual component reliability.      4.Availability cannot be.

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    21.A process layout is more susceptible to shutdowns caused by equipment breakdowns than a product layout.      22.Accounting, purchasing, and inventory control are fairly routine with process layouts.      23.A disadvantage of a product layout can be high in-process inventory costs.      24.In cellular manufacturing, machines and equipment are grouped by type (e.g., all grinders are.

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    61.In the area of product and service design, the acronym CAD refers to:  A.conceptually appropriate design.   B.computer-aided design.   C.commercial applications design.   D.competitive advantage design.   E.completely automated design.     62.Which of the following statements about CAD is not true?  A.It increases the productivity of designers.   B.It uses computer graphics.   C.It requires a good database.   D.Some systems permit engineering or cost analysis of.

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