QM 358 Final Exam
Module D Prep Question
1. The Body of knowledge about waiting lines is called
Queuing theory
2. Customer who ………refuse to join the waiting line because it is too long to suit their needs or interests. Balk
3. When the assumptions of the M/M/1, M/M/S, M/D/1, and limited-population queuing models do not hold true, there are no other approaches available to us. False
4. Which of the following is not one of the techniques that Disney uses to try to keep visitors happy while waiting in line? Serves Drinks
5. Which distribution most frequently describes the arrival rate in queuing theory? Poisson
6. Most bank teller services are operated with what kind of system? Multiple-server, single-phase
7. As the level of service increases, the cost of providing service…..decreases
8. What is another name for a waiting line? Queue
9. As the level of service increases, the cost of waiting line…….decreases
10. Most queueing models assume what type of service discipline? FIFO
11. Which of the following is NOT a type of “waiting cost?” Adding an additional server
12. Which type of queuing model would be best for analyzing an automated car wash? Constant Service (M/M/S)
13. What are the two most important cost considerations in queuing problems? Cost of providing service and cost of waiting time.
14. Which distribution most frequently describes the service time in queuing theory? Negative exponential

Module D Quiz
1. Which of the following is a requirement for application of Little’s Law to be valid? Steady state conditions
2. Four of the most widely used waiting line models – M/M/1 or A, M/M/S or B, M/D/1 or C, and Limited populations or D-all share which of the following characteristics? Poisson arrivals, FIFO discipline, and exponential service times.
3. A waiting line, or queuing system has three parts, which are: arrivals or inputs, queue discipline or the waiting line itself, and the service facility.
4. Service times in an automobile repair shop tend to follow which probability distribution? Normal
5. Which one of the following is not a characteristic of a Model C or M/D/1 system? Exponential service time pattern
6. In queuing problems, which of the following probability distributions is typically used to describe the time to perform the service? Negative exponential
7. Which of the following is a measure of queue performance? All the above
8. An airline ticket counter, with several agents for one line of customers, is an example of which of the following? Multiple-server, single-phase system
9. In the basic queuing model (M/M/1), what probability distribution describes arrival rates? Poisson
10. In queuing problems, the term “renege” refers to the fact that some customers leave the queue before service is completed. True
11. In the analysis of queueing models, the Poisson distribution often describes arrival rates, while service times are often described by the negative exponential distribution. True
12. Study of waiting line models helps operations managers better understand: All the above

Exam 2
13. Which of the following is not one of the reasons that globalization has taken place? Low differences in labor costs
14. A technique for making an economic comparison of location alternatives is referred to as: locational cost volume analysis
15. What term refers to the location of competing companies near each other? Clustering
16. Which of the following tasks would not typically represent an operations management activity at Hard Rock Café? Filing a tax return
17. How much money should a firm be willing to spend to obtain a perfect market focus? EVwPI – Maximum EMV
18. Which of the following OM decisions determines how a good or service is produced and commits management to specific technology, quality, human resources, and capital investment? Process and capacity design.
19. Which of the following is used for computations in CPM? Normal time
20. Which of the following is a basic assumption of PERT? No activities in the network must be repeated
21. Which of the following sets is determined during a backward pass? LS and LF
22. The latest finish of an activity is : MIN (LS of all immediate following activities)
23. What is the most commonly used criterion for decision tree analysis? EMV
24. Which of the following belongs to the third level in the work breakdown structure for Microsoft’s Window’s 8? Defect tracking
25. Loading is the process of assigning jobs to work or processing centers.
26. When a set of jobs must pass through two workstations whos sequence is fixed, (Johnson’s Rule) is the sequencing rule most commonly applied.
27. What is a graphical means of analyzing decision alternatives and states of nature? Decision Tree
28. Which of the following is not one of the criteria used to evluate scheduling performance? Maximize WIP
29. An investment that generates a series of uniform and equal cash amounts is referred to as: an annuity
30. What is the major difference in focus between a location decision in the service sector vs the manufacturing sector? The focus in service is on revenue maximization, while the focus in manufacturing is on cost minimization.
31. Which of the following is not a process focused facility? Motorcycle assembly
32. Which of the following organizations does not belong to the service sector? Ford motor company
33. Which of the following methods is a mathematical technique used for finding the best location for a single distribution point that services several stores of the areas? Centre of gravity method
34. Dummy activities: are used when two activities have identical starting and ending events.
35. Flow time represents the time: to complete an order, including time spent in processing and in waiting.
36. Of the following sequencing rules, which is considered to be dynamic? Critical ratio
37. A goods-producing location decision would likely emphasize the importance of whichof the following? Utility and labor costs
38. When making investment decisions using the net present value method, managers need to choose the investments with: higher net present values
39. Which of the following is not one of the factors that fosters specialization and worldwide supply chains? Marketing
40. Average completion time for a schedule sequence at a work center is the ratio of : total flow time to the number of jobs
41. Which of the following approaches may use subcontracting to accommodate excess demand? Lagging demand with incremental expansion.
42. Cycling scheduling is usually used for scheduling ; employees
43. Using LPT priority would result in what sequence for Jobs A, B, C, and D if their process times are 4,6,5, and 2? BCAD
44. What is the priority rule that sequences jobs using the smallest ratio of due date from today to processing time? Critical ratio
45. Which of the following comes earliest in the decision making process? Develop specific and measurable objectives.
46. Which one of these is not one of the ten strategic OM decisions? Marketing
47. What is the objective of scheduling? Prioritize and allocate demand to available facilities
48. Which of the following considers process capacity when scheduling? Finite Loading
49. What is a system that stores and displays information that can be linked to a geographic location? GIS
50. When using the critical ratio to develop a sequence, a CR greater than 1.0 means that the job has some slack.
51. Whci of the following is an advantage of the FCFS dispatching rule when used in services? FCFS seems fair to customers
52. Which of the following is not a valid principle of bottleneck management? Increasing the capacity of a non bottleneck station increases the capacity for the whole system.
53. Which of the following dispatching rules tends to minimize job flow time? SPT (shortest processing time)
54. What is the means of determining the discounted value of a series of future cash receipts? Net present value
55. Which of the following statements is an assumption PERT makes regarding the probability of finishing the project on time? Total project completion times follow a normal probability distribution.
56. A large percentage of the revenue of most firms is spent on which function? Operations
57. Which of the following is a requirement to be able to compute expected monetary value? The probability of each state of nature is known
58. What is a scheduling technique used to achieve an optimum, one to one matching of tasks and resources? The assignment method
59. What is an alternative name for a decision table? Payoff Table
60. Which of the following activities does not belong to the controlling phase of project management? Define the project
61. The capital investment each year in the United States usually increases
62. What decision tree symbol represents a decision node? Square
63. The three phases involved in the management of large projects are: planning , scheduling, and controlling
64. Which of the following does not contribute to OM? Unsystematic processing of data
65. Scheduling matches resources to what? Customer demands
66. Break even analysis for the single product case requires an estimation of fixed costs, variable costs, and (revenue)
67. Which of the following is a possible option to employ when demand excees capacity? Schedule long lead times
68. What is an occurrence or a situation over whih the decision maker has little or no control? State of nature
69. Productivity increases when: inputs decrease while outputs remain the same.
70. The multiproduct case of determining the break even point in dollars weights what by each products proportion of sales? The contribution of each product
71. Which of the following trends is not part of the exciting OM challenges currently facing operations managers? Local focus
72. Which of the following is not part of project controlling? Sequencing and allotting time to all projects activities.
73. Forward scheduling is the scheduling of: jobs as soon as the requirements are known.
74. What is the average return under complete certainty? Expected value with perfect information
75. What is the theoretical maximum output of a system in a given period under ideal conditions? Design capacity
76. Which of the following is an example of a “hidden” production function? Transplanting liver
77. Which of the following is not true regarding PERT and CPM? Managers only need to closely monitor the critical path
78. A decision tree should be used in lieu of a decision table when there are sequential decisions and states of nature.
79. Which of the following priority rules minimizes maximum tardiness? EDD
80. Within decision theory, which of the following is not one of the three decision making environments? Decision making under pressure.
Module F Quiz
81. Most real world inventory systems have ( probabilistic) events and thus benefit from a simulation approach.
82. What is the attempt to duplicate the features, appearance, and characteristic of a real system, usually via a computerized model? Simulation
83. Which of the following is not a step in running a Monte Carlo simulation? All of the above are steps in running a monte carlo simulation.
84. The person who believed that management must do more to improve the work environment and processes so that quality can be improved was: W. Edwards Deming
85. Contrary to assumptions of the EOQ model, most real work inventory situations have what two elements as random variable? Demand and Lead time
86. Simulation is used for several reasons, including which of the following? It can handle large and complex real work problems
87. The basis of Monte Carlo simulation is experimentation on probabilistic elements by means of (random sampling)
88. Which of the following is not a disadvantage of simulation? Simulations often interfere with real world systems.
89. In a typical inventory analysis using simulation, inventory costs would be comprised of what three costs? Ordering, holding, and stockout
90. The seven steps in the use of simulation include all except which of the following? Find the optimal solution

Exam 1
91. What is a means of determining throughout capacity of workstations or an entire production system? Capacity Analysis
92. Which appears to provide the best opportunity for increases in productivity? Management
93. The creation of goods and services is referred to as production.
94. Efficiency is given by: actual output divided by effective capacity.
95. When using EMV for capacity planning situations, the state of nature usually is: future demand or market favorability.
96. What is the typical goal of applying EMV to capacity decisions? Maximize the expected value of the alternatives.
97. The ratio of all resources to the goods and services produced is referred as: multifactor productivity.
98. A global network of organizations and activities that supply a firm with goods and services is referred to as: a supply chain
99. A goods producing location decision would likely emphasize the importance of which of the following? Utility and Labor cost
100. The economic activities that typically product an intangible product are referred to as: services

101. The difference between selling price and variable cost is called: contribution

102. Productivity increases when: inputs decrease while outputs remain the same.

103. Which one of these is not one of the basic functions of the management process? Inspecting

104. Which operation function at a manufacturing facility strives for the efficient use of machines, space , and personnel? Industrial engineering

105. In general, the supply chain starts with: the provider of basic raw materials

106. Which of the following activities at a commercial bank is not an operations activity? Auditing

107. What is the goal for mass customization? The goal is to produce customized products, whenever and wherever needed.

108. The person who introduced standardized, interchangeable parts was: Eli Whitney

109. Which of the following techniques might a service or retail organization use to make a location decision? Traffic Counts

110. The transportation model: determines the best pattern of shipments from several points of supply to several points of demand.

111. Geographic information systems can assist the location decision by: combining geography with demographic analysis

112. Which of the following is not one of the five elements for each city that geographic information systems use to analyze location decision factors? Rivers, Mountains, Lakes, and forests

113. Which of the following factor rating method steps comes earliest? Assign a weight to each factor to reflect its relative importance in the company’s objectives.