Question 1

The economic-order quantity (EOQ)  suggests the

Accepted Answer

A)   right size orders to take.
B)   break-even point for storing inventory.
C)   break-even point for sales orders.
D)   right amount of inventory to store.

Question 2

If a manager recalls success stories from global expansion to Singapore, he might overestimate
the chances of succeeding in that country. This is an example of the recallability trap.

Accepted Answer

A) True 
 B)False

Question 3

Maintaining the right level of inventory is a major factor influencing the financial health of an organization.

Accepted Answer

A) True 
 B)False

Question 4

The overconfidence trap in making forecasts leads a person to overestimate the accuracy of his or her forecasts.

Accepted Answer

A) True 
 B)False

Question 5

A decision tree is considered particularly useful in

Accepted Answer

A)   evaluating costs over the life of a project.
B)   making a sequence of decisions.
C)   estimating the length of time required to achieve given return on investment.
D)   determining when to drop a product line.

Question 6

The results of a time-series analysis are best represented by a(n)

Accepted Answer

A)   equation with two variables.
B)   chart or graph showing past trends and predicted future trends.
C)   verbal summary of expert opinions.
D)   pie chart of the various components of the analysis.

Question 7

The just-in-time system emphasizes that customer demand is the most important factor in determining how much product to manufacture.

Accepted Answer

A) True 
 B)False

Question 8

To speed up the completion of a project, the manager should attempt to give top priority to all activities not on the critical path.

Accepted Answer

A) True 
 B)False

Question 9

Time-series analysis is an historical approach to making forecasts.

Accepted Answer

A) True 
 B)False

Question 10

The inventory management system called LIFO, refers to selling your oldest inventory first.

Accepted Answer

A) True 
 B)False

Question 11

Data-driven management is more of an attitude and approach than a specific technique,

Accepted Answer

A) True 
 B)False

Question 12

The prudence trap in making forecasts leads a person to make overly optimistic forecast so as not to appear too conservative.

Accepted Answer

A) True 
 B)False

Question 13

An expected value for a decision tree is the value you would expect if

Accepted Answer

A)   you calculated how much revenue is needed to break even.
B)   your business were sold within 30 days.
C)   a particular decision is made a large number of times.
D)   you took a poll of what people want.

Question 14

Juanita is a data-driven manager, so she

Accepted Answer

A)   minimizes interaction with people when working.
B)   bases her decisions on facts.
C)   finely tunes her intuition.
D)   emphasizes politics in her decision making.

Question 15

The two major variables considered by Gantt charts and milestone charts are

Accepted Answer

A)   planned and actual work.
B)   past and present.
C)   time and motion.
D)   price and cost.

Question 16

Explain the basics of a just-in-time (JIT) inventory system.

Accepted Answer

The just-in-time (JIT) system is an inve...

Question 17

The critical path is the path through the PERT network with the

Accepted Answer

A)   shortest completion time.
B)   longest completion time.
C)   most probable time.
D)   pessimistic time.

Question 18

A Pareto diagram is

Accepted Answer

A)   an inventory method
B)   a bar graph that ranks types of output variations by frequency of occurrence.
C)   a forecasting tool.
D)   a scenario for the future

Question 19

Much of the accuracy of a PERT chart depends upon estimates of the time necessary to complete each activity.

Accepted Answer

A) True 
 B)False

Question 20

The World Future Society predicts that 100 million people with telecommute by the year 2015, illustrating a(n)  ____ forecast.

Accepted Answer

A)   economic
B)   sales
C)   technological
D)   doomsday

Exam 6: Quantitative Techniques for Planning and Decision Making

The just-in-time system emphasizes that customer demand is the most important factor in determining how much product to manufacture.

Correct AnswerverifiedShow Answer

Much of the accuracy of a PERT chart depends upon estimates of the time necessary to complete each activity.

Correct AnswerverifiedShow Answer

The World Future Society predicts that 100 million people with telecommute by the year 2015, illustrating a(n) ____ forecast.

Correct AnswerverifiedShow Answer

The two major variables considered by Gantt charts and milestone charts are

Correct AnswerverifiedShow Answer

To speed up the completion of a project, the manager should attempt to give top priority to all activities not on the critical path.

Correct AnswerverifiedShow Answer

The prudence trap in making forecasts leads a person to make overly optimistic forecast so as not to appear too conservative.

Correct AnswerverifiedShow Answer

Time-series analysis is an historical approach to making forecasts.

Correct AnswerverifiedShow Answer

Explain the basics of a just-in-time (JIT) inventory system.

Correct AnswerverifiedThe just-in-time (JIT) system is an inve...View AnswerShow Answer

If a manager recalls success stories from global expansion to Singapore, he might overestimate the chances of succeeding in that country. This is an example of the recallability trap.

Correct AnswerverifiedShow Answer

The economic-order quantity (EOQ) suggests the

Correct AnswerverifiedShow Answer

The inventory management system called LIFO, refers to selling your oldest inventory first.

Correct AnswerverifiedShow Answer

Data-driven management is more of an attitude and approach than a specific technique,

Correct AnswerverifiedShow Answer

Maintaining the right level of inventory is a major factor influencing the financial health of an organization.

Correct AnswerverifiedShow Answer

Juanita is a data-driven manager, so she

Correct AnswerverifiedShow Answer

A Pareto diagram is

Correct AnswerverifiedShow Answer

The results of a time-series analysis are best represented by a(n)

Correct AnswerverifiedShow Answer

The overconfidence trap in making forecasts leads a person to overestimate the accuracy of his or her forecasts.

Correct AnswerverifiedShow Answer

A decision tree is considered particularly useful in

Correct AnswerverifiedShow Answer

The critical path is the path through the PERT network with the

Correct AnswerverifiedShow Answer

An expected value for a decision tree is the value you would expect if

Correct AnswerverifiedShow Answer

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The just-in-time (JIT) system is an inve...
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