41. A transportation route along which shipments cannot be transported.

a. Limited Route b. Prohibited Route

c. Circle Route d. Unbalanced Route

42. A method for classifying inventory items according to their dollar value to the firm based on the
principle that only a few items account for the greatest dollar value of total inventory.

a. Fixed-Time-Period System b. Continuous Inventory System

c. Fixed-Order-Quantity System d. ABC System

43. A computerized system that plans all the resources necessary for manufacturing, including financial
and marketing analysis, feedback loops, and overall business plan.

a. Enterprise Resource Planning b. Manufacturing Resource Planning

c. Capacity Requirements Planning d. Material Requirements Planning

44. The process of determining the quantity and timing of production over an intermediate time frame is
called --

a. Capacity Planning b. Aggregate Production Planning

c. Management Coefficients Model d. Level Production

45. A computerized system with relational data base management, client/ server architecture, and
expanded scope to cover enterprise-wide activities.

a. Enterprise Resource Planning b. Manufacturing Resource Planning

c. Capacity Requirements Planning d. Material Requirements Planning

46. A computerized inventory control and production planning system for generating purchase orders and
work orders of materials, components, and assemblies.

a. Enterprise Resource Planning b. Manufacturing Resource Planning

c. Capacity Requirements Planning d. Material Requirements Planning

47. The limiting of suppliers or transportation carriers for a company to a relative few is called –

a. Group-Sourcing b. Double-Sourcing
c. Single-Sourcing d. Demand-Sourcing

48. The process of breaking down the aggregate plan into more detailed plans.

a. Diseconomies of Scale b. Disaggregation

c. Economies of Scale d. Lag Capacity

49. A list of all the materials, parts, and assemblies that make up a product, including quantities, parent-
component relationships, and order of assemblies.

a. Bill of Materials b. Inventory Master File

c. Parts List d. Product Structure File

50. A file that contains computerized bills of material for all products.

a. Master Production Schedule b. Inventory Master File

c. Parts List d. Product Structure File
 51. Furthermore in this study, the IE must now look on the system effectiveness of the line thru its
individual machines. The first machine in the SMT Line is Screen Print, followed by Chip Mounter, IC
Placer and Reflow. The capacity of the machines is gathered for the past months and is shown below:

Machine
Metrics Chip Mounter IC Placer Reflow
Design Capacity 110 120 325
Effective Capactiy 105 115 320
Actual Output 100 113 300

What is the efficiency of the Chip Mounter?

a. 90.11% b. 94.42%
c. 95.24% d. 98.69%

52. What is the utilization of the Chip Mounter?

a. 90.91% b. 94.12%
c. 96.39% d. 98.43%

53. What is the efficiency of the IC Placer?

a. 90.50% b. 93.32%
c. 96.47% d. 98.26%

54. What is the utilization of the IC Placer?

a. 90.43% b. 94.17%
c. 96.39% d. 98.43%

55. What is the efficiency of the Reflow?

a. 93.75% b. 94.22%
c. 95.89% d. 96.13%

56. What is the utilization of the Reflow?

a. 90.01% b. 91.12%
c. 92.31% d. 93.49%

57. The Baler W ater Ski Company is the Philippines’ largest producer of water skis. Water skis observe a
highly seasonal demand pattern, with peaks during the summer months only. Given the following
costs and quarterly sales forecasts, use the transportation method to design a production plan that
will economically meet demand. W hat is the cost of the plan?

Sales Forecast

Inventory carrying cost $ 3.00 per pair of skis per quarter

Production per employee 1,000 pairs of skis per quarter
Regular workforce 50 workers
Overtime capacity 50,000 pairs of skis
Subcontracting capacity 40,000 pairs of skis
Cost of regular production $ 50 per pair of skis
Cost of overtime production $ 75 per pair of skis
Cost of subcontracting $ 85 per pair of skis

a. $23,570,000 b. $27,870,000
c. $26,480,000 d. $30,290,000
58. The CEO of Baler W ater Ski Company from Problem No. 57 has decided to forgo the company’s policy
of guaranteed employment. Assume the cost of hiring and firing workers is $100 per worker hired and
$400 per worker fired. He asks an IE what would be the cost of the plan of they are to try level
production strategy. If necessary, allow backordering at $10 per pair of skis per quarter.

a. $22,427,000 b. $23,483,300
c. $26,296,000 d. $27,185,000

59. In reference to Problem No. 58, use the chase demand production strategy and determine the cost of
plan.

a. $21,938,000 b. $22,674,200
c. $23,592,000 d. $24,728,000

60. The Glimpses Publishing Inc prints textbooks for the college market. The demand for college
textbooks is high during the beginning of each semester and then slacks off after the semester
stars. Given the cost and demand forecast, the firm consults an IE to design an aggregate
production plan that will economically meet demand. What is the cost of the production plan?

MONTH DEMAND FORECAST

February – April 5,000
May – June 10,000
August – October 30,000
November - January 25,000

Regular capacity per quarter 10,000 books

Overtime capacity per quarter 5,000 books
Subcontracting capacity per quarter 10,000 books
Regular production rate $ 20 per book
Overtime production rate $ 30 per book
Subcontracting production rate $ 35 per book
Holding cost $ 2.00 per book
No beginning inventory

a. $1,600,000 b. $1,800,000
c. $1,700,000 d. $1,900,000

61. Accelerado, a leading manufacturer of swimwear line, needs help planning production for the next
year. The demands for swim wears are shown below. Given the following costs and demand forecasts,
use as a strategy the level production with overtime and subcontracting and determine the cost of the
plan.

MONTH DEMAND FORECAST

January 1,000
February 500
March 500
April 2,000
May 3,000
June 4,000
July 5,000
August 3,000
September 1,000
October 500
November 500
December 3,000
 Beginning workforce 8 workers
Subcontracting capacity unlimited
Overtime capacity 2,000 units/month
Production rate per worker 250 units/month
Regular wage rate $ 15 per unit
Overtime wage rate $ 25 per unit
Subcontracting wage rate $ 30 per unit
Hiring cost $ 100 per worker
Firing cost $ 200 per worker
Holding cost $ 0.50 per unit/month
Backordering cost $ 10 per unit/month
No beginning inventory

a. $675,000 b. $413,000
c. $559,000 d. $448,000

62. In reference Problem No. 61, use as a strategy the level production with backorders as needed
and determine the cost of this plan.

a. $443,250 b. $574,692
c. $561,460 d. $693,730

63. In reference to Problem No. 61, use as a strategy that chases demand and determine the cost of plan.
a. $544,700 b. 4527,800
c. $367,600 d. $266,300

64. Purple Ribbon’s Empanada is a popular food item during the cold months. Use the following demand
forecasts to determine the cost of plan if production planning strategy on level production is used.

MONTH DEMAND FORECAST

March 2,000
April 1,000
May 1,000
June 1,000
July 1,000
August 1,500
September 2,500
October 3,000
November 9,000
December 7,000
January 4,000
February 3,000
 No backordering
Overtime capacity per month regular production
Subcontracting capacity per month unlimited
Regular production cost $ 30 per pallet
Overtime production cost $ 40 per pallet
Subcontracting production cost $ 50 per pallet
Holding cost $ 2 per pallet
No beginning inventory
Beginning workforce 10 workers
Production rate 200 pallet per worker per month
Hiring cost $ 5,000 per worker
Firing cost $ 8,000 per worker

a. $1,487,000 b. $1,232,000
c. $1,345,000 d. $1,785,000

65. In reference to Problem No. 64, use a strategy to meet the demand by changing the size of the
workforce and determine its corresponding cost.

a. $1,560,000 b. $1,562,000
c. $1,722,000 d. $1,750,000

66. In reference to Problem No. 64, use a strategy to keep the workforce at its current level
and compensate it with overtime and subcontracting as necessary and determine the
cost of this plan.

a. $1,571,000 b.
$1,453,000 c. $1,391,000
d. $1,293,000

67. Refer to below product structure diagram, how mane E’s are needed for 10 X?
a. 140 b. 260
c. 280 d. 320

B(2) C

D(3) E E(2) F(2)

E(4)

68. Refer to same product structure diagram in problem 67, how mane F’s are needed for 10 X?
a. 10 b. 20
c. 30 d. 40
69. Refer to same product structure diagram in problem 67, and considering below starting on -hand
quantity of components, how mane E’s are needed for 10X?
a. 112 b. 116
c. 120 d. 140

On
Component
Hand
B 4
C 10
D 8
E 60

70. Refer to same product structure diagram in problem 67, and same starting on-hand quantity of
components on problem 74, how mane F’s are needed for 10 X?
a. 0 b. 10
c. 20 d. 30

71. The W ashed and Rinse Clothing company produces two products, A and B that are made from
components C and D. Given the following product structures, master scheduling requirements, and
inventory information, determine when and how much to order for product A.

Product On Hand Scheduled Lot Size Gross

Receipts Requirements
A 10 0 1 100, period 8
B 5 0 1 200, period 6
C 140 0 150 -
D 200 250, period 2 250 -

Product Structure Diagram:

Level
A (LT = 3) B(LT=2)
0

Level
C[3](LT=4) D[2](LT=2) D[3](LT=2)
1

a. 90, period 6 b. 100, period 7

c. 90, period 5 d. 100, period 6

72. In reference to Problem No. 71, determine when order should be released for product B and the size
of the order.

a. 220, period 4 b. 195, period 4

c. 220, period 5 d. 195, period 6

73. In reference to Problem No. 71, determine when order should be released for product C and the size
of the order.

a. 120, period 2 b. 90, period 2

c. 200, period 3 d. 150, period 1
74. In reference to Problem No. 71, determine when order should be released for product D and the size
of the order.

a. 250, period 2 & 250, period 3 b. 500, period 3 & 250, period 4
c. 250, period 3 & 500, period 4 d. 500, period 4 & 250, period 5
75. Given the following MRP matrix, what is the entry value for X?

Item: E Period
LCC: 1
Lot Size: 50 PD 1 2 3 4 5 6 7 8
LT:2
Gross 20 30 50 50 60 90 40 60
Requirements
Scheduled 50
Receipts
Projected On 40 X
Hand
Net
Requirements
Planned
Order
Receipts
Planned
Order
Releases

a. 20 b. 40
c. 50 d. 70

76. In reference to Problem No. 75, what is the entry value for Y?

a. 20 b. 40
c. 50 d. 70

77. In reference to Problem No. 75, what is the entry value for Z?

a. 50 b. 70
c. 100 d. 150

78. The Ultra-Mega Cans packages processed food into cans. The factory has four multipurpose
cookers and canning lines that can pressure-cook, vacuum-pack, and applies labels to just about
any type of food or size of can. Ultra-Mega Cans has four orders that need to be run today for a
particular customer: canned beans, canned peaches, canned tomatoes, and canned corn. Ultra-
Mega Cans has estimated the number of hours required to pressure-cook, process, and can each
type of food by type of cooker is as follows:

Machine 1 2 3 4
Food
Beans 10 5 6 10
Peaches 6 2 4 6
Tomatoes 7 6 5 6
Corn 9 5 4 10

Due to time constraints imposed by lengthy changeover procedures, only one job can be assigned to
each cooker. How should the jobs be assigned to the cookers in order to process the food most
efficiently?

a. Beans-1, Peaches-2, Tomatoes-3, Corn-4 b. Beans-4, Peaches-3, Tomatoes-2, Corn-1

c. Beans-2, Peaches-1, Tomatoes-4, Corn-3 d. Beans-1, Peaches-3, Tomatoes-4, Corn-2

79. In reference to Problem No. 78, when can they complete the customer’s order?

a. 4 b. 5
c. 6 d. 7
80. Megabowl Pro Shop has four bowling balls to polish this morning. The Pro Shop has four machines
that could polish bowling balls in different speeds. The estimated times (in minutes) required to
polish a bowling ball on each machine is given below.

Polishing Machine
Bowling Ball 1 2 3 4
First Blood 15 40 25 30
Red Blood 30 35 25 20
True Blood 25 40 30 20
Cold Blood 35 30 45 35

How should the machines be assigned to the bowling balls in order to polish the balls most
efficiently?

a. 1-FB, 2-RB, 3-TB, 4-CB b. 1-RB, 2-FB, 3-CB, 4-TB

c. 1-FB, 2-CB, 3-RB, 4-TB d. 1-CB, 2-TB, 3-RB, 4-FB

81. In reference to Problem No. 80, when can the Pro Shop finish polishing the bowling balls?

a. 15 min b. 20 min
c. 25 min d. 30 min

82. One lane man in Megabowl Lanes has sixteen lanes to put oil every Monday to Friday on a weekly
basis. Oil in bowling lanes varies up to the length of lane where oil had been laid. The bowlin g
lanes have four oil dispensing machines that could put oil in different speeds. The estimated times
(in minutes) required to put oil is given below.

Oil Dispensing Machine

Oil Pattern 1 2 3 4
Lane 1-4: Viper, 36 ft 20 24 26 24
Lane 5-8: Bear, 40 ft 30 32 28 30
Lane 9-12: Shark, 43 ft 32 38 34 34
Lane 13-16: Scorpion, 47 ft 42 42 40 44

How should the machines be assigned to the lanes in order to put oil most efficiently?

a. 1-Viper, 2-Bear, 3-Shark, 4-Scorpion b. 1-Bear, 2-Viper, 3-Scorpion, 4-Shark

c. 1-Viper, 2-Shark, 3-Bear, 4-Scorpion d. 1-Viper, 2-Scorpion, 3-Bear, 4-Shark

83. In reference to Problem No. 82, how long would it take to put oil on all bowling lanes?

a. 20 min b. 42 min
c. 28 min d. 34 min

84. Today is the morning of September 1. As holiday season approaches, September’s work for Mr.
Belmonte consists of five jobs, A, B, C, D, E. Job A takes 5 days to complete and is due September
10, job B takes 10 days to complete and is due September 15, job C takes 2 days to process and is
due September 5, job D takes 8 days to process and is due September 12, and job E, which takes 6
days to process, is due September 8.

What is the average completion time if you sequence the jobs by First-Come, First-Serve (FCFS)?

a. 15.00 b. 16.40
c. 17.80 d. 18.60
85. In reference to Problem No. 84, what is the average tardiness if you sequence the jobs by earliest
due date (DDATE)?

a. 5.6 b. 6.0
c. 6.8 d. 9.6

86. In reference to Problem No. 84, what is the number of jobs tardy if you sequence the jobs by
minimum slack (SLACK)?

a. 2 b. 3
c. 4 d. 5

87. In reference to Problem No. 84, what is the maximum tardiness if you sequence the jobs by shortest
processing time (SPT)?

a. 26 b. 23
c. 17 d. 16

88. In reference to Problem No. 84, what is the sequence of jobs if you use the smallest critical ratio (CR)
rule?

a. A-B-C-D-E b. C-E-A-D-B
c. E-C-D-A-B d. E-D-B-A-C

89. Mr. Rivera is an office employee who had just filed his resignation from his company. It is
now the 3rd day after his filing, and as per company policy, an employee must serve 30
days before finally leaving the company. Mr. Rivera still has 5 jobs to fini sh and 5 deadlines
to meet before enjoying his freedom. The processing times (days) and due dates of the jobs
are detailed below.

Jobs Processing Time Due Date

A 2 05-Dec
B 9 19-Dec
C 3 07-Dec
D 7 14-Dec
E 6 12-Dec

What is the average completion time if you sequence the jobs by First-Come, First-Serve (FCFS)?

a. 15.00 b. 16.40
c. 17.80 d. 18.00

90. In reference to Problem No. 89, what is the average tardiness if you sequence the jobs by earliest
due date (DDATE)?

a. 4.2 b. 6.0
c. 5.8 d. 5.6
91. In reference to Problem No. 89, what is the number of jobs tardy if you sequence the jobs by
minimum slack (SLACK)?

a. 2 b. 3
c. 4 d. 5

92. In reference to Problem No. 89, what is the maximum tardiness if you sequence the jobs by shortest
processing time (SPT)?

a. 11 b. 22
c. 17 d. 18

93. In reference to Problem No. 89, what is the sequence of jobs if you use the smallest critical ratio
(CR) rule?
a. A-B-C-D-E b. C-E-A-D-B
c. E-C-D-A-B d. A-C-E-D-B

94. At the end of each month, a research and development team writes status reports for the projects at
work. The team leaders, Vilma and Jocelyn, submit them to the R&D manager on the first Monday of
each month. Due to heavy work load for the last week of the month, they had forgotten that their
report will be due on the next Monday not until Friday night. They decided to go to office early
Saturday to rush reports for their projects. Tasks allocations are as follows: Vilma writes and edits
the reports while Jocelyn collates data and draws all the necessary graphs. Assume that Jocelyn
starts her work on a report as soon as Vilma is finished with it and that Vilma works continuously.
Given the following processing times (in hours), determine the order in which the jobs should be
processed so that the rush report can be completed as soon as possible.

Projects Vilma Jocelyn

A 4 2
B 3 5
C 5 1
D 7 3
E 8 6

a. B-E-D-A-C b. D-E-A-C-B
c. E-A-D-B-C d. A-D-E-B-C

95. In reference to Problem No. 94, how many hours will it take them to finish all the reports?
a. 26 hours b. 27 hours
c. 28 hours d. 29 hours

96. In reference to Problem No. 94, how many hours is Vilma idle? How many hours is Jocelyn idle?
a. 1 hour, 11 hours b. 1 hour, 10 hours
c. 2 hours, 10 hours d. 2 h hours, 11 hours

97 Osku Car Service has five cars waiting to be washed and waxed. The time required (in minutes) for
each activity is given below. In what order should the cars be processed through the facility using
the Johnson’s rule?

Car Wash Wax

1 5 10
2 7 2
3 10 5
4 8 6
5 3 5

a. 2-1-5-4-3 b. 5-1-4-3-2
c. 3-2-4-5-1 d. 4-3-1-2-5
REFERENCES

[1] Russel, R.S. and Taylor, B.W ., III “Operations Management, Third Edition”, Prentice Hall,
Inc.,
2000

[2] Stevenson, W.J., “Production/ Operations Management, Fifth Edition”. McGraw Hill
Companies, Inc., 1996