Operations Management, Ninth Edition
Jay Heizer and Barry Render
Table of Contents
Chapter 1: Operations and Productivity 1
Chapter 2: Operations Strategy in a Global Environment 19
Chapter 3: Project Management 36
Chapter 4: Forecasting 61
Chapter 5: Design of Goods and Services 87
Chapter 6: Managing Quality 106
Supplement 6: Statistical Process Control 126
Chapter 7: Process Strategy 156
Supplement 7: Capacity Planning 173
Chapter 8: Location Strategies 189
Chapter 9: Layout Strategy 221
Chapter 10: Human Resources and Job Design 254
Supplement 10: Work Measurement 267
Chapter 11: Supply Chain Management 282
Supplement 11: Outsourcing as a Supply Chain Strategy 302
Chapter 12: Inventory Management 311
Chapter 13: Aggregate Planning 343
,Chapter 14: Material Requirements Planning (MRP) and ERP 375
Chapter 15: Short-Term Scheduling 407
Chapter 16: Just-in-Time and Lean Production Systems 441
Chapter 17: Maintenance and Reliability 458
Quantitative Module A: Decision-Making Tools 478
Quantitative Module B: Linear Programming 501
Quantitative Module C: Transportation Models 524
Quantitative Module D: Waiting-Line Models 544
Quantitative Module E: Learning Curves 565
Quantitative Module F: Simulation 581
, MODULE A: DECISION-MAKING TOOLS
TRUE/FALSE
1. Analytic decision making is based on logic and considers all available data and possible
alternatives.
True (The decision process in operations, easy) {AACSB: Analytic Skills}
2. The last step in the analytic decision process clearly defines the problem and the factors that
influence it.
False (The decision process in operations, easy) {AACSB: Analytic Skills}
3. A state of nature is an occurrence of a situation over which the decision maker has little or no
control.
True (Fundamentals of decision making, easy)
4. In a decision tree, a square symbol represents a state of nature node.
False (Fundamentals of decision making, moderate)
5. If a decision maker can assign probabilities of occurrence to the states of nature, then the decision
is being made under conditions of uncertainty.
False (Types of decision-making environments, moderate)
6. An example of a conditional value would be the payoff from selecting a particular alternative when
a particular state of nature occurs.
True (Types of decision-making environments, moderate)
7. The maximax criterion of decision making requires that all decision alternatives have an equal
probability of occurrence.
False (Types of decision-making environments, easy)
, 8. The maximin criterion is pessimistic, while the maximax criterion is optimistic.
True (Types of decision-making environments, easy)
9. If a decision maker knows for sure which state of nature will occur, he/she is making a decision
under certainty.
True (Types of decision-making environments, moderate)
10. The expected value with perfect information assumes that all states of nature are equally likely.
False (Types of decision-making environments, easy)
11. An example of expected monetary value would be the payoff from selecting a particular alternative
when a particular state of nature occurs.
False (Decision tables, moderate)
12. The expected monetary value of a decision alternative is the sum of all possible payoffs from the
alternative, each weighted by the probability of that payoff occurring.
True (Types of decision-making environments, easy)
13. If a decision maker has to make a certain decision only once, expected monetary value is a good
indication of the payoff associated with the decision.
False (Types of decision-making environments, moderate)
14. The expected value of perfect information is the same as the expected value with perfect
information.
False (Decision tables, moderate)
15. Decision trees and decision tables can both solve problems requiring a single decision, but decision
tables are the preferred method when a sequence of decisions is involved.
False (Decision trees, easy)
Jay Heizer and Barry Render
Table of Contents
Chapter 1: Operations and Productivity 1
Chapter 2: Operations Strategy in a Global Environment 19
Chapter 3: Project Management 36
Chapter 4: Forecasting 61
Chapter 5: Design of Goods and Services 87
Chapter 6: Managing Quality 106
Supplement 6: Statistical Process Control 126
Chapter 7: Process Strategy 156
Supplement 7: Capacity Planning 173
Chapter 8: Location Strategies 189
Chapter 9: Layout Strategy 221
Chapter 10: Human Resources and Job Design 254
Supplement 10: Work Measurement 267
Chapter 11: Supply Chain Management 282
Supplement 11: Outsourcing as a Supply Chain Strategy 302
Chapter 12: Inventory Management 311
Chapter 13: Aggregate Planning 343
,Chapter 14: Material Requirements Planning (MRP) and ERP 375
Chapter 15: Short-Term Scheduling 407
Chapter 16: Just-in-Time and Lean Production Systems 441
Chapter 17: Maintenance and Reliability 458
Quantitative Module A: Decision-Making Tools 478
Quantitative Module B: Linear Programming 501
Quantitative Module C: Transportation Models 524
Quantitative Module D: Waiting-Line Models 544
Quantitative Module E: Learning Curves 565
Quantitative Module F: Simulation 581
, MODULE A: DECISION-MAKING TOOLS
TRUE/FALSE
1. Analytic decision making is based on logic and considers all available data and possible
alternatives.
True (The decision process in operations, easy) {AACSB: Analytic Skills}
2. The last step in the analytic decision process clearly defines the problem and the factors that
influence it.
False (The decision process in operations, easy) {AACSB: Analytic Skills}
3. A state of nature is an occurrence of a situation over which the decision maker has little or no
control.
True (Fundamentals of decision making, easy)
4. In a decision tree, a square symbol represents a state of nature node.
False (Fundamentals of decision making, moderate)
5. If a decision maker can assign probabilities of occurrence to the states of nature, then the decision
is being made under conditions of uncertainty.
False (Types of decision-making environments, moderate)
6. An example of a conditional value would be the payoff from selecting a particular alternative when
a particular state of nature occurs.
True (Types of decision-making environments, moderate)
7. The maximax criterion of decision making requires that all decision alternatives have an equal
probability of occurrence.
False (Types of decision-making environments, easy)
, 8. The maximin criterion is pessimistic, while the maximax criterion is optimistic.
True (Types of decision-making environments, easy)
9. If a decision maker knows for sure which state of nature will occur, he/she is making a decision
under certainty.
True (Types of decision-making environments, moderate)
10. The expected value with perfect information assumes that all states of nature are equally likely.
False (Types of decision-making environments, easy)
11. An example of expected monetary value would be the payoff from selecting a particular alternative
when a particular state of nature occurs.
False (Decision tables, moderate)
12. The expected monetary value of a decision alternative is the sum of all possible payoffs from the
alternative, each weighted by the probability of that payoff occurring.
True (Types of decision-making environments, easy)
13. If a decision maker has to make a certain decision only once, expected monetary value is a good
indication of the payoff associated with the decision.
False (Types of decision-making environments, moderate)
14. The expected value of perfect information is the same as the expected value with perfect
information.
False (Decision tables, moderate)
15. Decision trees and decision tables can both solve problems requiring a single decision, but decision
tables are the preferred method when a sequence of decisions is involved.
False (Decision trees, easy)
