1. The service sector makes up approximately what percentage
of all jobs in the United States? a. 12% b. 40% c. 66% d. 79% e. 90%
2. Which is not true
regarding differences between goods and services? a. Tangible goods are
generally produced and consumed simultaneously; services are not. b. Most goods
are common to many customers; services are often unique to the final customer.
c. Services tend to have a more inconsistent product definition than goods. d.
Services tend to have higher customer interaction than goods. e. All of the
above are true.
3. Which is not true regarding differences between goods and
services? a. Services are generally produced and consumed simultaneously;
tangible goods are not. b. Services tend to be more knowledge-based than goods.
c. Services tend to have a more inconsistent product definition than goods. d.
Goods tend to have higher customer interaction than services. e. None of the
above is true.
4. Which of the following services is least likely to be
unique, i.e., customized to a particular individual’s needs? a. dental care b.
hairdressing c. legal services d. elementary education e. computer consulting
5. Which of the
following is not a typical service attribute? a. intangible product b. easy to
store c. customer interaction is high d. simultaneous production and
consumption e. difficult to resell 6 Final Examination BAM421 Operations
Management
6. Which of the
following attributes is most typical of a service? a. production and
consumption occur simultaneously b. tangible c. mass production d. consistency
e. easy to automate
7. Experience differentiation ________________. a. isolates
the consumer from the delivery of a service b. is an extension of product
differentiation in the service sector c. uses only the consumer’s senses of
vision and sound d. keeps consumers from becoming active participants in the
service e. is the same as product differentiation, but applied in the service
sector
8. Franz Colruyt has
achieved low-cost leadership through ________________. a. effective use of
voice mail b. plastic, not paper, shopping bags c. background music that subtly
encourages shoppers to buy more d. converting factories, garages and theaters
into retail outlets e. exclusive use of the Euro
9. A firm producing a good is more likely to have which set
of the following characteristics compared to a firm providing a service? a.
many subjective quality standards, tangible product and locate away from
customers b. many subjective quality standards, intangible product and locate
away from customers c. many objective quality standards, tangible product and
locate near customers d. many objective quality standards, tangible product and
locate away from customers e. many objective quality standards, intangible
product and locate away from customers
10. Which of the
following influences layout design? a. inventory requirements b. capacity needs
c. personnel levels d. technology decisions e. All of the above influence
layout decisions.
11. The largest contributor to productivity increases is
________________, estimated to be responsible for _______________ of the annual
increase. a. management; over one-half b. Mr. Deming; one-half c. labor;
two-thirds d. capital; 90% e. technology; over one-half
12. Which of the
following is not true when explaining why productivity tends to be lower in the
service sector than in the manufacturing sector? a. Services are typically labor-intensive.
b. Services are often difficult to evaluate for quality. c. Services are often
an intellectual task performed by professionals. d. Services are difficult to
automate. e. Service operations are typically capital intensive.
13. Three commonly
used productivity variables are ________________. a. quality, external elements
and precise units of measure b. labor, capital and management c. technology,
raw materials and labor d. education, diet and social overhead e. quality,
efficiency and low cost
14. Firm A operates 10 hours each day, producing 100
parts/hour. If productivity were increased 20%, how many hours would the plant
have to work to produce 1000 parts? a. less than 2 hours b. between 9 and 10
hours c. between 2 and 6 hours d. between 6 and 8 hours e. between 8 and 9
hours
15. A cleaning company uses 10 lbs each of chemicals A, B
and C for each house it cleans. After some quality complaints, the company has
decided to increase its use of chemical A by an additional 10 lbs for each
house. By what % has productivity (houses per pound of chemical) fallen? a. 0%
b. 10% c. 15% d. 25% e. 33%
16. Cost minimization is an appropriate strategy in which
stage of the product life cycle? a. introduction b. growth c. adolescence d.
decline e. retirement
17. Which of the
following OM strategies/issues should a firm with a product in the maturity
stage of its life cycle be least concerned with at the present time? a.
increase capacity b. long production runs c. standardization d. cost cutting e.
fewer rapid product changes
18. Which of the following is least likely to result in a
strategy change? a. change in the company’s financial situation b. a company’s
adoption of new technology c. change in the product life cycle d. change in the
competitive environment e. change in job scheduling techniques
19. Which of the following is not an operations strategic
decision? a. maintenance b. price c. layout design d. quality e. inventory
20. Which of the following statements regarding PERT times
is true? a. The optimistic time estimate is an estimate of the minimum time an
activity will require. b. The optimistic time estimate is an estimate of the
maximum time an activity will require. c. The probable time estimate is
calculated as t = (a + 4m + b). d. The pessimistic time estimate is an estimate
of the minimum time an activity will require. e. The most likely time estimate
is an estimate of the maximum time an activity will require.
21. Which of the following statements regarding PERT times
is true? a. The expected time is an estimate of the time an activity will
require if everything goes as planned. b. The optimistic time estimate is an
estimate of the maximum time an activity will require. c. The expected time
estimate is calculated as t = (a + 4m + b)/6. d. The pessimistic time estimate
is an estimate of the minimum time an activity will require. e. The most likely
time estimate is an estimate of the maximum time an activity will require.
22. In a PERT network, non-critical activities that have
little slack need to be monitored closely because ______________. a. PERT
treats all activities as equally important b. near-critical paths could become
critical paths with small delays in these activities c. slack is undesirable
and needs to be eliminated d. they are causing the entire project to be delayed
e. they have a high risk of not being completed
23. Given an actual demand of 61, a previous forecast of 58,
and an alpha of .3, what would the forecast for the next period be, using
simple exponential smoothing? a. 45.5 b. 57.1 c. 58.9 d. 61.0 e. 65.5
24. Which of the
following values of alpha would cause exponential smoothing to respond the most
slowly to forecast errors? a. 0.10 b. 0.20 c. 0.40 d. 0.80 e. cannot be
determined 10 Final Examination BAM421 Operations Management
25. A forecasting
method has produced the following over the past five months. What is the mean
absolute deviation? Actual Forecast Error |Error| 10 11 -1 1 8 10 -2 2 10 8 2 2
6 6 0 0 9 8 1 1 a. -0.2 b. -1.0 c. 0.0 d. 1.2 e. 8.6
26. Given forecast errors of -1, 4, 8 and -3, what is the
mean absolute deviation? a. 2 b. 3 c. 4 d. 8 e. 16
27. The last four months of sales were 8, 10, 15 and 9
units. The last four forecasts were 5, 6, 11 and 12 units. The Mean Absolute
Deviation (MAD) is ________________. a. 2 b. -10 c. 3.5 d. 9 e. 10.5
28. Value analysis takes place _________________. a. when
the product is selected and designed b. during the initial stages of production
when something needs to be done to assure product success c. when the product
is first conceived d. during the production process when it is clear the new
product is a success e. when the product cost is very low
29. Which of the
following makes products that are friendlier to the environment? a. using less
materials b. using more recycled materials c. using less energy d. using less
harmful ingredients e. All of the above.
30. One method used to determine a product’s total
environmental impact from conversion of inputs through production and to
disposal is ________________. a. QFD b. design for manufacturability c.
environmental scanning d. life cycle assessment e. CAD
31. Products are more “environmentally friendly” when they
are made _________________. a. using cheaper materials b. using less energy c.
according to OSHA standards d. where environmental regulations are lax e. more
difficult to disassemble
32. An operations manager’s ethical responsibilities
_________________. a. are limited to the production phase of product life cycle
b. are limited to following published laws and regulations c. extend from
design to production to final destruction/disposition of a product d. do not
include being efficient with the firm’s resources e. need not consider a
product design’s impact on the entire economy
33. Total quality management emphasizes _________________.
a. the responsibility of the quality control staff to identify and solve all
quality-related problems b. a commitment to quality that goes beyond internal
company issues to suppliers and customers c. a system where strong managers are
the only decision makers d. a process where mostly statisticians get involved
e. ISO 14000 certification 12
34. “Kaizen” is a
Japanese term meaning ________________. a. a foolproof mechanism b.
just-in-time (JIT) c. a fishbone diagram d. setting standards e. continuous
improvement
35. Which of the following statements regarding “Six Sigma”
is true? a. The term has two distinct meanings—one is statistical, the other is
a comprehensive quality system. b. Six Sigma means that about 94 percent of a
firm’s output is free of defects. c. The Six Sigma program was developed by
Toyota in the 1970s. d. The Six Sigma program is for manufacturing firms and is
not applicable to services. e. Six Sigma certification is granted by the
International Standards Organization (ISO).
36. Product focused processes ________________. a. allow
more customization, but are not very efficient b. are desirable because
resource needs increase slowly with the complexity of a process c. are
processes that are specialized for relatively few products or customer groups
d. apply only to service firms, not to manufacturers e. are profitable because
customers demand flexibility, not specialization
37. Value-stream mapping ________________. a. is a variation
on time function mapping b. examines the supply chain to determine where value
is added c. extends time function mapping back to the supplier d. starts with
the customer and works backwards e. All of the above are true.
38. One fundamental
difference between a process chart and a process map is that _________________.
a. the process chart uses a time dimension while a process map is not
time-oriented b. the process chart includes the supply chain while the process
map stays within an organization c. the process chart is more like a table
while the process map is more like a schematic diagram d. the process chart
focuses on the customer and on the provider’s interaction with the customer
while the process map does not deal directly with the customer e. None of these
is true because a process chart and a process map are the same thing. 13 Final
Examination BAM421 Operations Management
39. Service
blueprinting __________________. a. provides the basis to negotiate prices with
suppliers b. mimics the way people communicate c. determines the best time for
each step in the process d. focuses on the provider’s interaction with the
customer e. shows how Ishikawa techniques can be added to improve quality
40. A drawing of the movement of material, product or people
is a _________________. a. flow chart b. process chart c. service blueprint d.
process map e. None of the above.
41. Which of the
following statements regarding “proximity” in the location decision is false?
a. Service organizations find that proximity to market is the most critical
primary location factor. b. Manufacturers want to be near customers when their
product is bulky, heavy or fragile. c. Perishability of raw materials is a good
reason for manufacturers to locate near the supplier, not the customer. d.
Reduction in bulk is a good reason for a manufacturer to locate near the
supplier. e. Clustering among fast food chains occurs because they need to be
near their labor supply.
42. Which of the following is the best example of the
proximity rule that, for service firms, proximity to market is the most
important location factor? a. Soft drinks are bottled in many local plants
where carbonated water is added to proprietary syrups that may have been
shipped long distances. b. Few people will travel out-of-state for a haircut.
c. Patients will travel very long distances to have their hernia surgeries
performed at Shouldice Hospital. d. Furniture makers choose to locate near the
source of good hardwoods even though it means locating near other furniture
manufacturers. e. Metal refiners (smelters) locate near mines to accomplish
significant weight reduction near the metal’s source.
43. Which of the following worker characteristics would
likely be least important for U.S. firms looking to open up call centers in
different countries? a. willing to accept low wages b. have a high level of
education c. speak English d. possess an in-depth knowledge of American popular
culture e. are young
44. Community attitudes, zoning restrictions and quality of
labor force are likely to be considered in which of the following location
decision methods? a. transportation method b. locational break-even analysis c.
center-of-gravity method d. simulation e. factor-rating method
45. Which of the following methods best consider intangible
costs related to a location decision? a. crossover methods b. locational
break-even analysis c. factor-rating analysis d. the transportation method e.
the assignment method
46. Evaluating
location alternatives by comparing their composite (weighted-average) scores
involves _________________ analysis. a. factor-rating b. cost-volume c.
transportation model d. linear regression e. crossover
47. Which of the statements below best describes office
layout? a. groups workers, their equipment, and spaces/offices to provide for
movement of information b. addresses the layout requirements of large, bulky
projects such as ships and buildings c. seeks the best personnel and machine
utilization in repetitive or continuous production d. allocates shelf space and
responds to customer behavior e. deals with low-volume, high-variety production
48. Which of the following constitutes a major trend
influencing office layouts? a. downsizing b. globalization c. environmental
issues d. off-site employees e. health issues 15 Final Examination BAM421
Operations Management
49. Which of the following does not support the retail
layout objective of maximizing customer exposure to products? a. locate
high-draw items around the periphery of the store b. use prominent locations
for high-impulse and high-margin items c. maximize exposure to expensive items
d. use end-aisle locations e. convey the store’s mission with the careful
positioning of the lead-off department
50. Ambient conditions, spatial layout and functionality,
signs, symbols and artifacts are all ________________. a. indicators of
imbalance on an assembly line b. indicators that cross-docking has been
successful c. elements of customization in a warehouse layout d. elements of
servicescapes e. elements of successful office layouts
51. Balancing
low-cost storage with low-cost material handling is important in a(n)
_________________. a. fixed-position layout b. process-oriented layout c.
office layout d. repetitive and product-oriented layout e. warehouse layout
52. Which of the following requires an information system
that provides inbound product identification, its destination and routing of
the product to the designated outbound vehicle? a. phantom-docking b. random
stocking c. ASRS d. customizing e. cross-docking
53. Which of the
following best describes Vizio’s supply chain? a. few suppliers b. keiretsu c.
joint venture d. vertical integration e. virtual company 16 Final Examination
BAM421 Operations Management
54. Local
optimization is a supply-chain complication best described as
_________________. a. optimizing one’s local area without full knowledge of
organizational needs b. obtaining very high production efficiency in a
decentralized supply chain c. the prerequisite of global optimization d. the
result of supply chains built on suppliers with compatible corporate cultures
e. the opposite of the bullwhip effect
55. The “bullwhip”
effect _________________. a. occurs as orders are relayed from retailers to
wholesalers b. results in increasing fluctuations at each step of the sequence
c. increases the costs associated with inventory in the supply chain d. occurs
because of distortions in information in the supply chain e. All of the above.
56. A restaurant runs a special promotion on lobster and
plans to sell twice as many lobsters as usual. When this large order is sent to
the distributor, the distributor assumes the large size is a trend, not a
one-time event. The distributor therefore places an even larger order with the
lobsterman. This is the result of ________________. a. double marginalization
b. the bullwhip effect c. CPFR d. a pass-through facility e. vendor-managed
inventory 57. Giving quantity discounts based on annual volume instead of
single order size helps to control which supply-chain issue? a. control risk b.
environmental risk c. the bullwhip effect d. unethical supplier behavior e.
vendor-managed inventory 58. Which of the following is not an opportunity for
effective management in the supply chain? a. accurate “pull” data b.
vendor-managed inventory c. postponement d. local optimization e. channel
assembly 17 Final Examination
59. Which of the following statements regarding the
production order quantity model is true? a. It applies only to items produced
in the firm’s own production departments. b. It relaxes the assumption that all
the order quantity is received at one time. c. It relaxes the assumption that
the demand rate is constant. d. It minimizes the total production costs. e. It
minimizes inventory.
60. The assumptions of the production order quantity model
are met in a situation where annual demand is 3,650 units, setup cost is $50,
holding cost is $12 per unit per year, the daily demand rate is 10 and the
daily production rate is 100. The production order quantity for this problem is
approximately _______________. a. 139 b. 174 c. 184 d. 365 e. 548
61. A production order quantity problem has daily demand
rate = 10 and daily production rate = 50. The production order quantity for
this problem is approximately 612 units. The average inventory for this problem
is approximately _______________. a. 61 b. 245 c. 300 d. 306 e. 490
62. Which category of inventory holding costs is much higher
than average for rapid-change industries such as PCs and cell phones? a.
housing costs b. material handling costs c. labor costs d. parts costs e.
pilferage, scrap and obsolescence
63. When quantity discounts are allowed, the cost-minimizing
order quantity _______________. a. is always an EOQ quantity b. minimizes the
sum of holding and ordering costs c. minimizes the unit purchase price d. may
be a quantity below that at which one qualifies for that price e. minimizes the
sum of holding, ordering and product costs 18
64. In level scheduling, what is kept uniform from month to
month? a. product mix b. inventory levels c. production/workforce levels d.
demand levels e. sub-contracting levels
65. Which of the
following is not consistent with a pure level strategy? a. varying the use of
subcontracting b. finding alternative work for employees during low-demand
periods c. using built-up inventory to meet demand requirements d. varying
production levels and/or work force to meet demand requirements e. All of the
above are inconsistent with the pure level strategy.
66. Which of the
following is not an advantage of level scheduling? a. stable employment b.
lower absenteeism c. matching production exactly with sales d. lower turnover
e. more employee commitment
67. A firm uses the
pure chase strategy of aggregate planning. It produced 1,000 units in the last
period. Demand in the next period is estimated at 800 and demand over the next
six periods (its aggregate planning horizon) is estimated to average 900 units.
In following the chase strategy, the firm will ________________. a. add 100
units to inventory in the next period b. add 200 units to inventory in the next
period c. hire workers to match the 100 unit difference d. lay off workers to
match the 200 unit difference e. implement a lower price point to increase
demand
68. A firm’s demand
in the next four quarters (its aggregate planning horizon) is forecast to be
80, 50, 40 and 90 units. Last quarter, the firm produced 60 units. If it uses
level scheduling, the firm will ________________. a. hire workers to permit
production of 65 units per quarter for the next four quarters b. hire 20
workers c. have an increase in inventory of 20 units in the next quarter d.
have a decrease in inventory of 5 units in the next quarter e. change its
workforce each quarter so that inventory does not change 19
69. It is week 1 and
there are currently 20 A’s in stock. The MPS calls for 300 A’s at the start of
week 5. If there are scheduled receipts planned for week 3 and week 4 of 120
A’s each and A has a lead time of 1 week, when and how large of an order should
be placed to meet the requirement of 300 A’s? a. Week 1, 300 A’s b. Week 1, 40
A’s c. Week 5, 40 A’s d. Week 4, 40 A’s e. Week 4, 300 A’s
70. A material requirements plan contains information with
regard to all of the following EXCEPT ________________. a. quantities and
required delivery dates of all subassemblies b. quantities and required
delivery dates of final products c. the capacity needed to provide the
projected output rate d. inventory on hand for each final product e. inventory
on hand for each subassembly
71. Each R requires 2
of component S and 1 of part T. The lead time for assembly of R is 3 days. The
lead time for the manufacture of S is 5 days. The lead time for the manufacture
of T is 10 days. The cumulative lead time for R is ______________ days. a. 6 b.
9 c. 13 d. 17 e. cannot be determined
72. A method of input-output control that uses a system of
cards to limit the amount of work at a work center and also to control lead
time and monitor backlog is _______________. a. the assignment method b.
backward scheduling c. forward scheduling d. constant work-in-process or ConWIP
e. level material use
73. If an assignment problem consists of 6 workers and 7
projects, _______________. a. one worker will not get a project assignment b.
one worker will be assigned two projects c. each worker will contribute work
toward the seventh project d. one project will not get a worker assigned e. The
problem cannot be solved by assignment method.
74. In MRP, the number of units projected to be available at
the beginning of each time period refers to ________________. a. net
requirements b. scheduled receipts c. the projected usage of the item d. the
amount projected to be on hand e. the amount necessary to cover a shortage
75. Linking a part requirement with the parent component
that caused the requirement is referred to as _________________. a. net
requirements planning b. a time fence c. pegging d. kanban e. leveling
76. In MRP, system
nervousness is caused by _______________. a. management’s attempt to
continually respond to minor changes in production requirements b. the use of
the lot-for-lot approach c. management’s marking part of the master production
schedule as “not to be rescheduled” d. the use of phantom bills of material e.
management’s attempt to evaluate alternative plans before making a decision
77. One of the tools that is particularly useful in reducing
the system nervousness in the MRP system is/are _______________. a. modular
bills b. time phasing c. time fences d. lot sizing e. closed loop system
78. Which of the following is a step towards integrating JIT
and MRP according to the text? a. smaller buckets b. increase quality c. scrap
MRP, it does not work with JIT d. migrate from MRP to ERP e. All of the above
are acceptable steps.
79. Material requirements plans specify _________________.
a. the quantities of the product families that need to be produced b. the
quantity and timing of planned order releases c. the capacity needed to provide
the projected output rate d. the costs associated with alternative plans e.
whether one should use phantom bills of material or not
80. Which of the following best differentiates material
requirements planning (MRP) from finite capacity scheduling (FCS)? a. FCS
recognizes the finite nature of capacity while MRP does not. b. FCS works in
services while MRP does not. c. MRP requires time buckets while FCS does not.
d. FCS is an input into traditional MRP systems. e. FCS uses the Wagner-Whitin
algorithm while MRP uses lot-for-lot and EOQ.
81. If an assignment
problem consists of 5 workers and 4 projects, _______________. a. one worker
will not get a project assignment b. one project will be assigned two workers
c. the fifth worker will split time among the four projects d. one project will
not get a worker assigned e. The problem cannot be solved by assignment method.
82. Which of the
following dispatching rules tends to minimize job flow time? a. FCFS: first
come, first served b. SPT: shortest processing time c. EDD: earliest due date
d. LPT: longest processing time e. FCLS: first come, last served
83. Average
completion time for a schedule sequence at a work center is the ratio of
________________. a. total processing time to the number of jobs b. total flow
time to total processing time c. total flow time to the number of jobs d. total
processing time plus total late time to the number of jobs e. total flow time
plus total late time to the number of jobs
84. Factory X is trying to use level use scheduling. If
their first target were to cut the current lot size in half, by what proportion
must setup cost change? a. Setup cost must be cut to one fourth its current
value. b. Setup cost must also be cut in half from its current value. c. Setup
cost must double from its current value. d. cannot be determined e. None of the
above.
85. Which one of the following statements is true about the
kanban system? a. The quantities in the containers are usually large to reduce
setup costs. b. It is associated with a push system. c. It is useful to smooth
operations when numerous quality problems occur. d. The supplier workstation
signals the customer workstation as soon as a batch is completed. e. The
customer workstation signals to the supplier workstation when production is
needed.
86. Kanban is associated with all of the following EXCEPT
_______________. a. small lot sizes b. signals such as cards, lights or flags
c. moving inventory only as needed d. increased material handling e. reductions
in inventory
87. The priority rule
that sequences jobs using the smallest ratio of due date from today to
processing time is ______________. a. critical ratio b. earliest due date c. first
come, first served d. longest processing time e. shortest processing time
88. Which of the
following is an advantage of the FCFS dispatching rule when used in services?
a. FCFS is easy to update. b. FCFS minimizes the average number of jobs in the
system. c. FCFS minimizes the average lateness of all jobs. d. FCFS maximizes
the number of jobs completed on time. e. FCFS seems fair to customers.
89. The most appropriate sequencing rule to use if the goal
is to dynamically track the progress of jobs and establish relative priority on
a common basis is ______________. a. shortest processing time b. earliest due
date c. critical ratio d. longest processing time e. Johnson’s rule
90. A characteristic of JIT partnerships with respect to
quality is to _______________. a. help suppliers meet quality requirement b.
inspect all incoming parts c. maintain a steady output rate d. impose maximum
product specifications on the supplier e. draw up strict contracts ensuring
that all defectives will be immediately replaced
91. Which of the
following is not a goal of JIT partnerships? a. removal of unnecessary
activities b. removal of in-plant inventory c. removal of in-transit inventory
d. obtain improved quality and reliability e. All of the above are goals of JIT
partnerships.
92. Which one of the following is a concern expressed by
suppliers? a. having too many customers b. delivery to the point of use c.
having limited ability to respond to changes in product and quality d. large
lot sizes e. customers’ infrequent engineering changes
93. Reduction of
in-transit inventory can be encouraged through use of _______________. a.
supplier location near plants b. low setup costs c. low carrying costs d. use
of trains, not trucks e. low-cost, global suppliers
94. In JIT partnerships, suppliers have several concerns.
Which of the following is not such a concern? a. desire for diversification b.
poor customer scheduling c. small lot sizes d. producing high enough quality
levels e. customers’ infrequent engineering changes
95. The word “kanban”
means _________________. a. low inventory b. employee empowerment c. card d.
continuous improvement e. lot size of one
96. Infant mortality
in electronics follows which kind of distribution? a. normal b. negative
exponential c. exponential d. random e. one-sided normal distribution
97. Suppose that the
introduction of a preventive maintenance program is deemed cost effective.
Which of the following is most likely true if the cost to actually perform
preventive maintenance is very expensive? a. high standard deviation in MTBF b.
low standard deviation in MTBF c. low cost to repair d. repairs carry little
non-monetary consequences e. the system never fails
98. As far as
maintenance costs are concerned, ________________. a. for low levels of maintenance
commitment, breakdown maintenance costs exceed preventive maintenance costs b.
for low levels of maintenance commitment, preventive maintenance costs exceed
breakdown maintenance costs c. for high levels of maintenance commitment,
breakdown maintenance costs exceed preventive maintenance costs d. preventive
maintenance is always more economical than breakdown maintenance e. breakdown
maintenance is always more economical than preventive maintenance when the
“full cost of breakdowns” is taken into consideration
99. For a machine to be a good candidate for preventive
maintenance, _______________. a. the consequences of failure must exceed the
cost of preventive maintenance and the MTBF distribution must have a large
standard deviation b. the consequences of failure must exceed the cost of
preventive maintenance and the MTBF must be relatively low c. the consequences
of failure must exceed the cost of preventive maintenance and the MTBF
distribution must have a relatively low standard deviation d. the consequences
of failure must exceed the cost of preventive maintenance and the MTBF must be
relatively high e. the consequences of failure must be relatively unknown and,
therefore, risky
100. Which one of the
following is not necessary to identify the optimal maintenance policy? a.
historical data on maintenance costs b. cost of performing the analysis c.
breakdown probabilities d
