1. 7. A manager who is conducting a time study now needs an accuracy of
±0.1
minutes, rather than ±0.2 minutes as in the past. Because of this change
in accuracy, the adequate sample size becomes
A) one-fourth as large
B) one-half as large
C) twice as large
D) four times as large
E) none of the above
8. A work sampling study requires an acceptable error level of 10
percent and
z = 2 for 95.45 percent confi dence. The adequate sample size is ________
if the sample proportion is thought to be as large as 50 percent, but
________ if the sample proportion is thought to be about 20 percent.
A) 50; 20
B) 100; 64
C) 100; 16
D) 20; 50
E) cannot be determined from the information given
9. Sample observations of a claims processor made over a 160-hour
work
month reveal that the worker produced a total of 384 completed claims
forms. The performance rating was 80%. The worker was idle 20% of the
time. The allowance factor is 8%. What is the standard time per unit?
A) 0.42 minutes
B) 16.0 minutes
C) 17.4 minutes
D) 20.0 minutes
E) 21.7 minutes
21. If the standard duration of demand is six per week, demand is 50 per
week, and the desired service level is 95%, approximately what is the
statistical
safety stock?
A) 8 units
B) 10 units
C) 16 units
D) 64 units
E) cannot be determined without lead time data

2. 22. The proper quantity of safety stock is typically determined by
A) minimizing an expected stockout cost
B) carrying suffi cient safety stock so as to eliminate all stockouts
C) meeting 95% of all demands
D) setting the level of safety stock so that a given stockout risk is not
exceeded
E) minimizing total costs
40. A firm wants to develop a level material use schedule based on the
following
data. What should be the setup cost?
Desired lot size: 60
Annual demand: 40,000
Holding cost: $20 per unit per year
Daily production rate: 320
Work days per year: 250
A) $0.45
B) $4.50
C) $45
D) $450
E) $500
42. A product has three components, A, B, and C, with reliabilities of
0.95,
0.98, and 0.995. Engineers intend to put a redundant component A that
has reliability 0.70. With this change, system reliability will
A) fall by 20%
B) fall by 10% or less
C) rise
D) cannot determine from the information provided
E) none of the above