MKT 364 Exam 1 (Chapter 1-4)

A forecasting method has produced the following over the past five months. What is the mean absolute deviation? Actual Forecast Error |Error| 9 11 -2 2 8 10 -2 2 12 8 4 4 6 6 0 0 9 8 1 1

1.8

John's House of Pancakes uses a weighted moving average method to forecast pancake sales. It assigns a weight of 5 to the previous month's demand, 3 to demand two months ago, and 1 to demand three months ago. If sales amounted to 1000 pancakes in May, 2200 pancakes in June, and 3000 pancakes in July, what should be the forecast for August? A. 2400 B. 2511 C. 2067 D. 3767 E. 1622

B 1000 + (2200x3) + (3000x5)/9 = 2511

A project being analyzed by PERT has 60 activities, 13 of which are on the critical path. If the estimated time along the critical path is 214 days with a project variance of 100, the probability that the project will take 224 days or more to complete is A) near zero B) 0.0126 C) 0.1587 D) 0.8413 E) 2.14

C

Standardization is an appropriate strategy in which stage of the product life cycle? A.introduction B.growth C.maturity D.decline E.retirement

C

Standardization is an appropriate strategy in which stage of the product life cycle? A.introduction B.growth C.maturity D.decline E.retirement

C

Which of the international operations strategies involves high cost reductions and high local responsiveness? A.international strategy B.global strategy C.transnational strategy D.multi-domestic strategy E.none of the above

C

What is the approximate forecast for May using a four-month moving average? Nov. Dec. Jan. Feb. Mar. April 39 36 40 42 48 46 A.38 B.42 C.43 D.44 E.47

D

Which of the following are part of the Ten Critical Decisions of Operations Management? I.Design of goods and services II.Managing Quality III.Layout Strategy IV.Marketing V.Pricing of Goods and Services A.I,II,V B.I,II,IV C.II,III,V D.I,II,III E.All of the above

D

Examples of response to the global environment include A.Boeing's worldwide sales and production B.Benneton's flexibility in design, production, and distribution C.A Chinese manufacturer, Haier, opening plants in the United States D.Ford's partnerships with Volvo and Mazda E.all of the above

E

The main difference between PERT and CPM is that A) PERT is more accurate than CPM B) PERT assumes that activity durations are known C) PERT ignores activity costs D) CPM assumes activity durations can vary E) None of the above are true

E

Time-series data may exhibit which of the following behaviors? A. trend B. random variations C. seasonality D. cycles E. They may exhibit all of the above.

E

The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. Due to higher demand, they have decided to operate three 8-hour shifts instead. They are now able to produce 600 boxes per day. What has happened to productivity ?and production?

500/(2*10)=25 boxes/hr 600/(3*8)=25 boxes/hr It has increased by 20%.

A simple CPM network has three activities, A, B, and C. A is an immediate predecessor of B and of C. B is an immediate predecessor of C. The activity durations are A=4, B=3, C=8. A) The critical path is A-B-C, duration 15. B) The critical path is A-C, duration 12. C) The critical path is A-B-C, duration 13.5 D) The critical path cannot be determined without knowing PERT expected activity times. E) The network has no critical path.

A

Which of the international operations strategies involves low cost reductions and low local responsiveness? A.international strategy B.global strategy C.transnational strategy D.multi-domestic strategy E.none of the above

A

Which of the following tasks within an Airline Company are related to Operations? A) crew scheduling B) international monetary exchange C) sales D) advertising E) accounts payable

A) crew scheduling

Among the ethical and social challenges facing operations managers are A.honoring financial commitments B.maintaining a clean environment C.developing low-cost products D.providing an efficient workplace E.all of the above

B

Given the position of the iPod in the growth stage of its life cycle, which of the following OM Strategy/Issues should the makers of iPods be least concerned with at the current time? A.forecasting B.cost cutting C.increasing capacity D.product and process reliability E.enhancing distribution

B

Increase capacity is an appropriate strategy in which stage of product life cycle? A.introduction B. growth C.maturity D. decline E. retirement

B

The "Father of Scientific Management" is A.Henry Ford B.Frederick W. Taylor C.W. Edwards Deming D.Frank Gilbreth E.just a figure of speech, not a reference to a person

B

Which of the following is not an operations strategic decision? A.maintenance B.price C.layout design D.quality E.inventory

B

Starbucks uses which international operations strategy to make himself successful in China? A.international strategy B.global strategy C.transnational strategy D.multi-domestic strategy E.integrated transnational and multi-domestic strategy

C

Which is not a characteristic of exponential smoothing? A.smoothes random variations in the data B.easily altered weighting scheme C.weights each historical value equally D.has minimal data storage requirements E.None of the above; they are all characteristics of exponential smoothing.

C