Operations Management Exam 6

Traditional performance measures tend to link current operating characteristics to long-term strategies and objectives. a. True b. False

False

Security activities such as; Use of security badges and guards, conducting background check on applicants and using antivirus software and passwords, would be classified as: a. Basic Initiatives b. Reactive Initiatives c. Proactive Initiatives d. Advanced Initiatives

A. Basic initiatives

Nowadays, successful supply chains are those that in the face of ever changing customer needs can continue to: a. Deliver the right combination of cost, quality, and customer service b. Increase the number of suppliers used c. Eliminate the need for performance metrics d. All of the above

A. Deliver the right combination of cost, quality, and customer service

First-come-first-served is an example of a(n): a. queue discipline b. unfair waiting policy c. channel queuing arrangement d. single-phase queue design

A. Queue discipline

According to the text, all of the following are considered key supply chain business processes EXCEPT: a. Manufacturing flow management process b. Knowledge management process c. Supplier relationship management process d. Product development and commercialization

B. Knowledge management process

According to the SCOR model, which of the following is NOT one of the five supply chain operation process categories? a. Plan b. Market c. Return d. Source

B. Market

Information technology advances, for example, have made cyber-attacks: a. Less common b. More common c. Nearly impossible d. Limited to franchises

B. More common

A customer who enters the waiting line but leaves the system prior to receiving service is said to have: a. Balked b. Reneged c. Stalled d. Disposed

B. Reneged

Which of the following is a difference between goods and services? a. Goods are often unique b. Services cannot be inventoried c. Goods have high customer-service interaction d. All of the above

B. Services cannot be inventoried

Which of the following supply chain performance metrics measures the average percentage of orders that arrive on time, complete and damage-free? a. Total supply chain management costs b. Supply chain perfect order fulfillment performance c. Supply chain cash-to-cash cycle time d. Supply chain delivery performance

B. Supply chain perfect order fulfillment performance

In well-managed supply chains, performance measurement systems become much larger and are complicated by: a. Push supply chains b. Varied relationships, trust and interactions c. Demand-driven supply networks d. SCOR supply chains

B. Varied relationships, trust and interactions

A customer approaches a firm with a question regarding her order status and shipping date; the information the firm provides is an example of which of the eight key supply chain business processes: a. Supply management process b. Demand management process c. Customer service management process d. Order fulfillment process

C. Customer service management process

According to the text, which of the following is a service strategy characterized by the idea that a service can serve a narrow target market better than a broad market? a. Differentiation strategy b. Demand strategy c. Focus strategy d. Transitional strategy

C. Focus Strategy

Which of the following is focused on promoting the sharing of environmental responsibility along the supply chain? a. SCOR b. Balanced Scorecard c. GSCM d. Single-factor productivity measures

C. GSCM

Which of the following is an obstacle to successful process integration? a. Passive integration b. Stockpiling c. Lack of trust d. Transaction costs

C. Lack of Trust

Service provided by multiple servers acting in parallel is referred to as: a. Multi-platform servicescape b. Multiple-phase queuing system c. Multiple-channel queuing system d. Multi-delivery servicescape

C. Multiple-channel queuing system

David Maister's First Rule of Service is: a. It always takes longer than you think to perform the service b. You can't please all the customers all the time c. Satisfaction = perception − expectation d. Under-promise and over-deliver

C. Satisfaction=perception-expectation

Supply relationship management personnel routinely communicate with: a. Production personnel to obtain feedback on supplier and purchased item performance b. Marketing personnel for customer feedback c. Suppliers for new product development and performance feedback d. All of the above

D. All of the above

Which of the following is a problem with a company establishing standards for performance? For example: production rates of 10 units per hour. a. Employees are driven to work so fast they may make defects b. Employees and managers may falsify production records c. Once performance goals are reached, incentives to improve may disappear d. All of the above

D. All of the above

The dimension of service quality concerned with using knowledgeable, competent, courteous employees who convey trust and confidence to customers is referred to as: a. Reliability b. Responsiveness c. Reasonability d. Assurance

D. Assurance

Price fluctuations that are the result of special product promotions, quantity discounts, and other special pricing discounts by suppliers' result in: a. Shortage Gaming b. Quantity Batching c. Buy-Back Gaming d. Forward Buying

D. Forward Buying

Which of the following is NOT one of the Eight Key Supply Chain Business Processes? a. Order Fulfillment b. Customer Relationship Management c. Returns Management d. Warehouse Management

D. Warehouse Management

A firm is comparing two potential service layouts using the Closeness Desirability Rating. Option 1's closeness desirability score is 18. Option 2's closeness desirability score is 22. It can be concluded that Option 1 layout is better. a. True b. False

False

According to the text, IBM had made sizeable investments in India growth markets and created a new procurement center in New Delhi. a. True b. False

False

Cloud systems provide less visibility for global supply chains. a. True b. False

False

Currently there is no software that will aid in analyzing the present carbon footprint of firms. a. True b. False

False

Holding on to old-fashioned company practices and purchasing habits will help to make the firm run efficient and smooth. a. True b. False

False

In most services, customers are not involved in the production of the service itself. a. True b. False

False

Managers use a balking technique to manage customers' perceived waiting times. a. True b. False

False

Manufacturing flow management is the key process that helps balance customer demand and the firm's output capabilities. a. True b. False

False

One of the primary steps in developing world-class performance measures is to define a product's functions and attributes. a. True b. False

False

Passive RFID Tags are more expensive than active RFID tags, which have been used for healthcare and military applications. a. True b. False

False

Service response logistics is the management and coordination of the organization's activities that occur after the service has been performed. a. True b. False

False

Supply chain perfect order fulfillment performance measures the average percentage of orders that are filled on or before the requested delivery date. a. True b. False

False

If the average service rate is 12 minutes per customer, and assuming the negative exponential distribution is used to describe the randomness of the service time distribution, then determine the probability that the service time will be less than or equal to 10 minutes. a. 0.000 b. 0.565 c. 0.283 d. 0.624

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A company produces 750 bicycles in one week. The labor used to make the bicycles was 400 hours. The next week, output was 710 bicycles using 360 hours. What was the change in labor productivity? a. Increased by 1.9% b. Increased by 5.2% c. Decreased by 2.4% d. Decreased by 3.3%

Not on exam

A weakness of the labor productivity measure is that managers might be tempted to lay off workers to improve labor productivity. a. True b. False

True

Amazon.com is an example of a firm which uses the Pure Internet Distribution Strategy. a. True b. False

True

At a service facility it has been calculated that they can handle the demand per hour approximately 76 percent of the time at a rate of 4 per hour. This means that approximately 24 percent of the time, demand per hour will be greater than four customers, causing queues to develop. a. True b. False

True

Customer satisfaction with the service depends not only on the ability of the firm to deliver what customers want, but on the customers' perceptions of the quality of service received. a. True b. False

True

Establishing output or productivity standards creates a goal that can drive employees and managers to do whatever it takes to reach these goals, even if it means damaging the company. a. True b. False

True

Pure services, offer few, if any tangible products to customers. a. True b. False

True

Service capacity is the number of customers per day the firm's service delivery systems are designed to serve. a. True b. False

True

Some researchers have indicated that the Balanced Scorecard approach can problematic and costly to implement, and even after implementation may be unsuccessful in achieving the overall objectives. a. True b. False

True

The most basic security system should include procedures and policies for securing offices, manufacturing plants, warehouses and other physical facilities. a. True b. False

True

To control and enhance the capabilities of companies within a supply chain, well-designed performance measurement systems must be implemented. a. True b. False

True

When firms acknowledge receipt of an order via telephone, mail or e-mail, this is an example of starting the service. a. True b. False

True

iBOTs, are robotic delivery vehicles which can access every storage location within their aisle-both horizontally and vertically. a. True b. False

True

Traditional performance measures include: a. Cost and Revenue b. SCOR and DCOR c. Profit and Perfect Order Fulfillment d. All of the above

a. Cost and Revenue

____________________ tends to reduce safety stocks among supply chain members, generating even less variability in supply chain orders? a. Information visibility b. Internal quality standards c. Forward Integration d. All of the above

a. Information visibility

Dominant companies within a supply chain can use their buying power to: a. Leverage demands for supplier conformance to its supply chain requirements b. Eliminate the need for performance metrics c. Increase organizational productivity d. Motivate customers to change their buying preferences

a. Leverage demands for supplier conformance to its supply chain requirements

According to the textbook, which of the following zoos audited their waste recycling performance? a. San Diego Zoo b. Lincoln Park Zoo c. Phoenix Zoo d. Bronx Zoo

a. San Diego Zoo

Failing to see the big picture and acting only in regard to single firm in the supply chain can be referred to as: a. Silo mentality b. Balking c. Shortage gaming d. Cross-selling

a. Silo mentality

The average transaction at an automatic teller can be completed in six minutes and customers arrive at the average rate of one every ten minutes. On average, how many customers are there in the queue? a. 4.000 Customer b. 0.900 Customers c. 1.160 Customers d. 0.375 Customers

b. 0.900 Customers

Which of the following identifies the key customers, determines their needs, and then develops products and/or services to meet those needs? a. Collaborative Management b. Customer Relationship Management c. Product Development and Commercialization d. Demand Management

b. Customer Relationship Management

Building, maintaining and strengthening beneficial relationships with suppliers and customers is accomplished through the use of: a. Data warehouses b. External process integration c. Expediting d. All of the above

b. External process integration

Which of the key supply chain business processes refers to meeting customer requirements by synchronizing the firm's marketing, production and distribution plans: a. Customer relationship management process b. Order fulfillment process c. Customer demand organization process d. Supply chain synchronization process

b. Order fulfillment process

Which of the following is a traditional performance measure? a. Average safety stock levels b. Overall total productivity c. Number of suppliers who are quality certified d. Number of product return per units sold

b. Overall total productivity

Substance disposal and recycling are part of which supply chain business process: a. Customer relationship management process b. Returns management c. Customer service management process d. Product development and commercialization process

b. Returns management

The four primary activities of concern in service response logistics are the management of: a. Distribution channels, service quality, reputation and waiting times b. Service capacity, waiting times, distribution channels and service quality c. Labor standards, distribution channels, waiting times and service quality d. Service capacity, visual workplace, waiting time and distribution channels

b. Service capacity, waiting times, distribution channels and service quality

The phase of the supply chain integration model concerned with identifying the important processes linking each of the supply chain partners is: a. Review and establish supply chain strategies b. Identify critical supply chain trading partners c. Align supply chain strategies with key supply chain process objectives d. Assess and improve internal integration of key supply chain processes

c. Align supply chain strategies with key supply chain process objectives

Having connectivity and visibility to all partners in a firm's supply chain can be accomplished through the use of: a. Legacy MRP systems b. Score-carding systems c. Cloud-based communication systems d. Mobile Marketing

c. Cloud-based communication systems

Which of the following is a contributor to the bullwhip effect? a. Smaller order sizes b. Using actual demand data c. Forward buying d. Vendor managed inventory

c. Forward buying

Mapping the network of primary trading partners is something that should be done to: a. Review and establish supply chain strategies b. Obtain point-of-sale information from customers c. Help the firm decide which businesses to include in its supply chain management efforts d. Assess and improve internal integration of key supply chain processes

c. Help the firm decide which businesses to include in its supply chain management efforts

A basic strategy for managing capacity is: a. Differentiation strategy b. Focus strategy c. Level demand strategy d. Queue management strategy

c. Level Demand Strategy

Influencing and increasing the capabilities of a firms own employees, as well as those of their trading partners, will help to eliminate which of the following obstacles to process integration? a. Risk Pooling b. Lack of trust c. Shortage Gaming d. Lack of Knowledge

c. Shortage Gaming

Which of the following would be considered a Supply Chain Risk Management activity? a. Increasing safety stock b. Diversify the supply base c. Develop a formal risk management program d. All of the above

d. All of the above

When salespeople need to fill end-of-quarter or end-of-year sales quotas they might use ___________, which creates greater use of safety stock causing the bullwhip effect. a. Stockpiling b. Bullwhip ordering c. Order fulfillment d. Order batching

d. Order batching

Which of the following supply chain performance metrics measures the average percentage of orders that are filled on or before the requested delivery date? a. Total supply chain management costs b. Supply chain perfect order fulfillment performance c. Supply chain cash-to-cash cycle time d. Supply chain delivery performance

d. Supply chain delivery performance

Calculate the score for the layout below. Do not count the departments with just corners touching. The desirability ratings are based on a (-1 to 3) scale, where -1=undesirable, 0=unimportant, 1=slightly important, 2=moderately important and 3=very important. Reception Area (A) Copy Room (B) Conference Room (C) Managers Offices (D) President Office (E) Accounting Office (F) Desirability Ratings B C D E F A 3 0 1 -1 2 B 2 1 0 3 C 3 2 1 D 2 2 E 2 a. 8 b. 11 c. 15 d. 18

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