ISDS 3115 Test 1

A forecast based on the previous forecast plus a percentage of the forecast error is​ a(n): A. moving average forecast. B. exponential smoothing forecast. C. qualitative forecast. D. weighted moving average forecast. E. naive forecast.

B. exponential smoothing forecast

A fundamental distinction between trend projection and linear regression is​ that: A. only linear regression can have a negative slope. B. in trend projection the independent variable is​ time; in linear regression the independent variable need not be​ time, but can be any variable with explanatory power. C. trend projection uses least squares while linear regression does not. D. trend projection uses two smoothing​ constants, not just one. E. trend projection can be a function of several​ variables, while linear regression can only be a function of one variable.

B. in trend projection the independent variable is​ time; in linear regression the independent variable need not be​ time, but can be any variable with explanatory power.

Which operations function at a manufacturing facility strives for the efficient use of​ machines, space, and​ personnel? A. design B. industrial engineering C. process analysis D. production and inventory control

B. industrial engineering

Which of the following OM decisions determines how a good or service is produced and commits management to specific​ technology, quality, human​ resources, and capital​ investment? A. design of goods and services B. process and capacity design C. human resources and job design D. managing quality

B. process and capacity design

Which of the following is an example of a​ "hidden" production​ function? A. producing a computer B. manufacturing a television C. transplanting a liver D. assembling a motorcycle

C. transplanting a liver

Which of the following statements regarding CPM is​ true? A. All activities on the critical path have their LS equal to the maximum EF of all immediate predecessors. B. The critical path is that set of activities that has positive slack. C. The critical path is the shortest of all paths through the network. D. All activities on the critical path have their ES equal to their LF. E. Some networks have no critical path.

A. All activities on the critical path have their LS equal to the maximum EF of all immediate predecessors.

Which of the following is a concern as firms move toward​ globalization? A. Differences in social and cultural behavior B. Opportunities to reach new markets C. Simplification of operations management D. Decreases in exchange rate risk

A. Differences in social and cultural behavior

Which of the following is not a type of qualitative​ forecasting? A. moving average B. market survey C. Delphi method D. jury of executive opinion E. sales force composite

A. Moving average

Which of the following statements regarding critical paths is​ true? A. On a specific​ project, there can be multiple critical​ paths, all with exactly the same duration. B. Every network has only one critical path. C. The shortest of all paths through the network is the critical path. D. Some activities on the critical path may have slack. E. The duration of the critical path is the average duration of all paths in the project network.

A. On a specific​ project, there can be multiple critical​ paths, all with exactly the same duration.

Which of the following sectors has seen a consistent rise in the percentage of workers in the United States since​ 1950? A. Services B. Manufacturing C. Agriculture D. None of the above

A. Services

Slack is the amount of time an activity can be delayed without delaying the entire project. A.True B.False

A. True

The sales force composite forecasting method relies on​ salespersons' estimates of expected sales. A. True B. False

A. True

The production process at Hard Rock Cafe does NOT include which of the following​ activities? A. advertising B. cooking C. receiving D. placing raw materials in cold storage

A. advertising

In a PERT​ network, non-critical activities that have little slack need to be monitored​ closely: A. because​ near-critical paths could become critical paths with small delays in these activities. B. because they have a high risk of not being completed. C. because slack is undesirable and needs to be eliminated. D. because they are causing the entire project to be delayed. E. because PERT treats all activities as equally important.

A. because​ near-critical paths could become critical paths with small delays in these activities.

The degree or strength of a relationship between two variables is shown by​ the: A. coefficient of correlation. B. alpha. C. mean. D. mean absolute deviation. E. cumulative error.

A. coefficient of correlation.

Competing on differentiation is A. concerned with uniqueness. B. based upon​ low-cost leadership. C. concerned with reliability of scheduling. D. based upon flexibility.

A. concerned with uniqueness.

A method managers use to evaluate the resources at their disposal and manage or alter them to achieve competitive advantage is referred as A. resources view. B. competitive advantage. C. ​value-chain analysis. D. five forces analysis.

A. resources view.

Increasing the number of periods in a moving average will accomplish greater​ smoothing, but at the expense​ of: A. sensitivity to real changes in the data. B. accuracy. C. manager understanding. D. stability. E. All of the above are diminished when the number of periods increases.

A. sensitivity to real changes in the data.

A way to identify those elements in the​ product/service chain that uniquely add value is referred to as A. ​value-chain analysis. B. supply chain management. C. the five forces model. D. the resources view.

A. ​value-chain analysis.

A project organization works best for an organization when the project resides in only one of its functional areas. A. True B. False

B. False

In a regression equation where ​y-hat is demand and x is​ advertising, a coefficient of determination ​(R^2​) of .70 means that​ 70% of the variance in advertising is explained by demand. A. True B. False

B. False

In trend​ projection, a negative regression slope is mathematically impossible. A. True B. False

B. False

Mean squared error and exponential smoothing are two measures of the overall error of a forecasting model. A. True B. False

B. False

Shortening the​ project's duration by deleting unnecessary activities is called​ "project crashing." A. True B. False

B. False

The larger the number of periods in the simple moving average forecasting​ method, the greater the​ method's responsiveness to changes in demand. A. True B. False

B. False

The shortest of all paths through the network is the critical path. A. True B. False

B. False

Work breakdown structure is a useful tool in project management because it addresses the timing of individual work elements. A. True B. False

B. False

Which of the following organizations does NOT belong to the service​ sector? A. Costco B. Ford Motor Company C. San Diego Zoo D. Southwest Airlines

B. Ford Motor Company

Which one of the following statements is incorrect regarding globalization and globalization​ strategies? A. Globalization strategies could add value to products and services. B. Globalization strategies could simplify the operations​ manager's job C. Globalization strategies could contribute to efficiency. D. Globalization means​ customers, talent, and suppliers are worldwide.

B. Globalization strategies could simplify the operations​ manager's job

Which of the following statements regarding PERT analysis is​ true? A. Each activity has two estimates of its duration. B. Only critical activities contribute to the project variance. C. The most likely time is equivalent to the expected activity time. D. project standard deviation is the sum of all critical activity standard deviations. E. Project variance is the sum of all activity variances.

B. Only critical activities contribute to the project variance.

Competing on cost is A. concerned with reliability of scheduling. B. achieving maximum value as perceived by the customer. C. based upon flexibility. D. concerned with uniqueness.

B. achieving maximum value as perceived by the customer.

The service sector constitutes what percentage of employment in the United​ States? A. between​ 70% to​ 80% B. between​ 80% to​ 90% C. between​ 60% to​ 70% D. between​ 50% to​ 60%

B. between​ 80% to​ 90%

Which of the following is NOT a characteristic of​ services? A. intangible B. unique C. standardized product D. produced and consumed simultaneously

C. standardized product

How does Walmart gain a competitive​ advantage? A. Competing on differentiation B. Competing on response C. Competing on cost D. None of the above

C. Competing on cost

Which of the following uses three types of​ participants: decision​ makers, staff​ personnel, and​ respondents? A. time series B. associative models C. Delphi method. D. jury of executive opinion E. sales force composite

C. Delphi method

Disney differentiates itself by not simply having customers go on a​ ride, but instead immersing them in the experience. What is the name for this type of​ differentiation? A. Unique differentiation B. Active differentiation C. Experience differentiation D. Immersion differentiation

C. Experience differentiation

The phases of project management​ are: A. ​GANTT, CPM, and PERT. B. different for manufacturing projects than for service projects. C. ​planning, scheduling, and controlling. D. ​planning, programming, and budgeting. E. ​planning, organizing,​ staffing, leading, and controlling.

C. ​planning, scheduling, and controlling.

A local project being analyzed by PERT has 42​ activities, 13 of which are on the critical path. If the estimated time along the critical path is 105 days with a project variance of​ 25, what is the probability that the project will be completed in 95 days or​ less? A. -0.4 B. 4.2 C. 0.9772 D. 0.0228 E. .3444

D. 0.0228

Many operations management​ (OM) innovations have come from outside of the United States. Which of the following OM innovations is matched with the wrong​ country/region? A. Germany​ -> robotics B. Japan​ -> inventory management C. Scandinavia​ -> ergonomics D. All of the above are correct

D. All of the above are correct

Which of the following is NOT one of the phases of project​ management? A. controlling B. scheduling C. planning D. budgeting. E. All of the above are project management phases.

D. Budgeting

Activity R on a CPM network has predecessors M and​ N, and has successor S. R has duration 5.​ N's late finish is​ 18, while​ M's is 20.​ S's late start is 14. Which of the following is definitely​ true? A. R is critical and has zero slack. B. S is a critical activity. C. N is a critical activity. D. The set of times cannot all be possible. E. R has no slack but is not critical.

D. The set of times cannot all be possible.

Which of the following techniques uses variables such as price and promotional​ expenditures, which are related to product​ demand, to predict​ demand? A. trend projection B. weighted moving average C. exponential smoothing D. associative models E. moving average

D. associative models

Which of the following is NOT a reason why domestic business operations decide to change to some form of international​ operation? A. improve products B. improve the supply chain C. improve operations D. attract and retain local talent

D. attract and retain local talent

Which of these is a reason why outsourcing continues to​ expand? A. more expensive transportation B. less reliable transportation C. rapid development and deployment of advancements in automation D. increased technological expertise and specialization

D. increased technological expertise and specialization

Which of these is NOT one of the basic functions of the management​ process? A. staffing B. controlling C. leading D. inspecting

D. inspecting

The forecasting technique that pools the opinions of a group of experts or managers is known​ as: A. management coefficients. B. the expert judgment model. C. multiple regression. D. jury of executive opinion. E. market survey.

D. jury of executive opinion.

A theory which states that countries benefit from specializing in​ (and exporting) goods and services in which they have a relative​ advantage, and they benefit from importing goods and services in which they have a relative disadvantage is referred to as the A. theory of exportation. B. theory of planned behavior. C. theory of relative perception. D. theory of comparative advantage.

D. theory of comparative advantage.

The primary advantage of outsourcing is A. to decrease logistics and transportation costs. B. to decrease supply chain risk. C. to allow a company to focus on its​ non-core competencies. D. to allow a company to focus on its core competencies.

D. to allow a company to focus on its core competencies.

Roughly what percentage of ALL jobs are in operations​ management? A. ​10% B. ​25% C. ​55% D. ​40%

D. ​40%

The difference between AON and AOA networks is​ that: A. AOA networks sometimes require dummy activities. B. nodes consume no resources or time in AOA networks. C. both are acceptable in​ practice; however, Microsoft Project uses AON. D. nodes designate activities in​ AON, while arrows designate activities in AOA. E. All of the above are true.

E. All of the above are true.