ops final

Frederick W. Taylor

Principles of Scientific Management - revolutionized manufacturing. Management should assume more responsibility. 1) Matching employees to the right job 2) Providing the proper training 3) Providing proper work methods and tools 4) Establishing legitimate incentives for work to be accomplished

Bottleneck

The limiting factor or constraints in a system

A supply chain ends with...

a satisfied customer

The text presents which two analytic tools to help with decision making? a. decision tables and decision networks b. decision tables and decision trees c. decision networks and decision trees d. decision networks and decision derivations

b. decision tables and decision trees

A response strategy requires suppliers be selected based primarily on

capacity, speed, and flexibility

The cost to produce the goods and services sold for a given period is referred to as :

cost of goods sold

inventory turnover=

cost of goods sold/ inventory investment

Eli Whitney (1800)

credited for the early popularization of interchangeable parts, which is achieve through standardization and quality control.

Which of the following tasks within an airline company are related to​ operations?

crew scheduling

JIT has an internal focus while lean production begins with an external focus on

customers

If A,B, and C are variables, which of the following functions is NOT linear? a. A b. 2A+3B+6C c. 14A-4B+C d. ABC

d. ABC

What is a tabular means of analyzing decision alternatives and states of nature? a. decision grid b. decision matrix c. decision tree d. decision table

d. decision table

Which of the following statements in NOT generally an implication stemming from an increase in the number of facilities? a. increased facility costs b. increased customer satisfaction c. quicker response d. decreased total logistics cost

d. decreased total logistics cost

Airfreight: a. is the oldest means of freight transportation b. represents about 10% of the tonnage shipped in the US c. is the best way to transport natural gas d. is a fast- growing mode of shipping

d. is a fast- growing mode of shipping

Which of the following is a quantitative forecasting​ method? A. market survey B. sales force composite C. exponential smoothing D .jury of executive opinion

exponential smoothing

What are 3 types of inventory?

finished goods raw materials Work in process

Which of the following statements is NOT true regarding​ forecasting? A. forecasting is exclusively an objective prediction. B. a forecast is usually classified by the future time horizon that it covers. C. forecasting may involve taking historical data and projecting them into the future with a mathematical model. D. forecasting is the art and science of predicting future events.

forecasting is exclusively an objective prediction.

Which of the 10 OM decisions applied at Hard Rock​ Café focuses on maximizing the customer experience and driving customers toward​ revenue-generating activities?

layout design

What decision criterion would be used by an optimistic decision maker solving a problem under conditions of​ uncertainty?

maximax

In a typical product-mix problem in linear programming, the objective is to:

maximize profit

The ratio of all resources to the goods and services produced is referred as: A. single-factor productivity. B. labor productivity. C. multifactor productivity. D. productivity growth.

multifactor productivity.

What mathematical technique is used when planning menu​ changes? A. exponential smoothing B. correlation analysis C. multiple-regression analysis D. standard error of the estimate

multiple-regression analysis

A single- period inventory model is applicable for

newspapers, seasonal goods, milk NOT- furniture

What is a mathematical expression in linear programming that maximizes or minimizes some quantity?

objective function

what pieces of information are contained in a bill of material

quantities of components, physical dimensions, raw materials to be used. NOT- lead times

Three criteria for designing distribution networks to meet customer expectations are:

rapid response, product choice, and service

Which type of inventory describes inventory that has been purchased but not processed

raw material inventory

Companies can improve the triple bottom line with sustainability by minimizing what four​ things?

raw​ material, energy,​ water, and waste

Which of the following is NOT an OM​ strategy/issue during the growth stage of the product life​ cycle? A. shift towards product focus B. reduce capacity C. enhance distribution D. forecasting critical

reduce capacity

Cost cutting in international operations can take place because​ of: A. lower indirect costs. B. less stringent regulations. C. lower taxes and tariffs. D. lower wage scales. E. All of the above.

All of the above.

Which of the following represents a reason for globalizing​ operations? A. to expand a​ product's life cycle B. to attract and retain global talent C. to improve operations D. to improve the supply chain E. All of the above.

All of the above.

Logistics management

An approach that seeks efficiency of operations through the integration of all material acquisition, movement, and storage activities

Enterprise resource planning (ERP)

An information system for identifying and planning the enterprise- wide resources needed to take, make, ship, and account for customer orders

Periodic order quantity (POQ)

An inventory ordering technique that issues orders on a predetermined time interval, with the order quantity covering the total of the interval's requirements

Economic order quantity (EOQ) model

An inventory- control technique that minimizes the total of ordering and holding costs

Fixed-quantity (Q) system

An ordering system with the same order amount each time

Variability

Any deviation from the optimum process that delivers perfect product on time, every time

All EXCEPT which of the following steps are taken to analyze problems with decision​ trees? A.Estimate payoffs for each possible​ alternative/state of nature combination. B.Assign probabilities to the alternatives. C.Solve the problem by computing expected monetary values for each​ state-of-nature node. D.Define the problem. E.Structure or draw the decision tree.

Assign probabilities to the alternatives.

Which of the following is an example of competing on quick​ response? A. A firm offers more reliable products than its competitors do. B. A firm advertises more than its competitors do. C. A firm utilizes its capacity more effectively than its competitors do. D. A firm produces its product with less raw material waste than its competitors do. E. A​ firm's products are introduced into the market faster than its​ competitors' products.

A​ firm's products are introduced into the market faster than its​ competitors' products

A global network of organizations and activities that supply a firm with goods and services is referred to as A. operations management.B. a supply chain.C. business functions.D. production.

B

A large percentage of the revenue of most firms is spent on which​ function? A. marketing B. operations C. research and development D. finance

B

The capital investment each year in the United States usually A. decreases.B. increases.C. remains constant.D. decreases unless favorably taxed.

B

The creation of goods and services is referred to as: A. transformation.B. production.C. formation.D. design.

B

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

B

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

Which of the following trends is NOT part of the exciting OM challenges currently facing operations managers? A. sustainabilityB. local focusC. supply chain partneringD. rapid product development

B

The service sector constitutes what percentage of employment in the United States?

Between 80% and 90%

Phantom bills of material

Bills of material for components, usually assemblies, that exist only temporarily; they are never inventoried.

Modular bills

Bills of material organized by major subassemblies or by product options

The creation of goods and services is referred to​ as: A. transformation. B. formation. C. production. D. design.

C

The economic activities that typically produce an intangible product are referred to as A. phantoms. B. goods. C. services. D. products.

C

Which appears to provide the best opportunity for increases in productivity? A. laborB. capitalC. management D. raw materials

C

Which of the following activities at an airline is NOT an operations activity? A. cateringB. flyingC. salesD. crew scheduling

C

Which of the following is NOT considered to be a stakeholder? A. distributorsB. community membersC. competitorsD. customers

C

Which of the following is NOT considered to be one of the three primary functions that all organizations​ perform? A. ​production/operations B. ​finance/accounting C. research and development D. marketing

C

Which of the following tasks would NOT typically represent an operations management activity at Hard Rock​ Cafe? A. receiving a shipment of incoming food ingredients B. designing an efficient layout C. filing a tax return D. preparing an employee schedule

C

Which of these is NOT one of the 10 strategic OM​ decisions? A. scheduling B. layout strategies C. marketing D. managing quality

C

Which of these is NOT one of the basic functions of the management process? A. staffingB. controllingC. inspectingD. leading

C

Contrary to assumptions of the EOQ​ model, most​ real-world inventory situations have what two elements as random​ variables? A. annual holding cost per unit and setup cost per order B. demand rate and production rate C. demand and lead time This is the correct answer. D. production rate and setup cost per order

C. demand and lead time

Which of the following is a characteristic of the maturity phase of the product life​ cycle? A. Competitors are well established. B. Products are considered for termination. C. Products are​ "fine-tuned." D. Product designs begin to stabilize.

Competitors are well established.

Which of the following is NOT true regarding corporate social​ responsibility? A.Corporate social responsibility only requires firms to focus on environmentally friendly product disposal. B.The operations function plays a profound role in meeting corporate social responsibility. C.Companies that practice corporate social responsibility introduce policies that consider​ environmental, societal, and financial impacts in their decision making. D.Corporate social responsibility means​ "doing what's​ right" and doing it​ properly, which can be beneficial to all stakeholders.

Corporate social responsibility only requires firms to focus on environmentally friendly product disposal.

Productivity increases when: A. outputs decrease while inputs remain the same. B. inputs increase while outputs remain the same. C. inputs and outputs increase proportionately. D. inputs decrease while outputs remain the same.

D

Which of the following activities at a commercial bank is NOT an operations activity? A. maintenanceB. check clearingC. securityD. auditing

D

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

D

Which of the following is NOT one of the four reasons that we study​ OM? A. It is one of the three major functions of any organization. B. We want to know how goods and services are produced. C. It is such a costly part of an organization. D. We want to understand what marketing managers do.

D

What is a time-phased stock-replenishment plan for all levels of the supply chain?

DRP

Which of the following is not cited in the Frito-Lay video as one of the reasons why the company's employee turnover is low?

Day care for children of employees

Which of the following is a qualitative forecasting​ method? A. Delphi method B. trend projection C. naive approach D. linear regression

Delphi method

Which of the following is the FIRST step in a forecasting​ system? A. Determine the use of the forecast. B. Determine the time horizon of the forecast. C. Select the items to be forecasted. D. Select the forecast​ model(s).

Determine the use of the forecast.

Which of the following comes EARLIEST in the​ decision-making process? A.Evaluate each alternative solution based on its merits and drawbacks. B.Implement and evaluate the decisions and then set a timetable for completion. C.Develop specific and measurable objectives. D.Develop a model.

Develop specific and measurable objectives.

What is an information system for identifying and planning the enterprise wide resources needed to take, make, ship and account for customer orders?

ERP

Lean operations

Eliminates waste through continuous improvement and focus on exactly what the consumer wants

What does EMV stand for?

Expected Monetary value

Safety stock

Extra stock to allow for uneven demand; a buffer

A work order is a list of the hierarchy of​ components, their​ description, and the quantity of each required to make one unit of the product.

False

An​ organization's strategy is the purpose or rationale for its existence.

False

Computer-aided design​ (CAD) refers to the use of specialized computer programs to direct and control manufacturing equipment.

False

If a decision maker can assign probabilities of occurrences to the states of​ nature, then the​ decision-making environment is Decision Making under Uncertainty.

False

If a decision maker has to make a particular decision only​ once, expected monetary value is a good indication of the payoff associated with the decision.

False

In the maturity stage of the product life​ cycle, operations managers will be particularly concerned with adding capacity or enhancing existing capacity to accommodate the increase in product demand.

False

Life cycle assessment determines which stage of the product life cycle that the product currently is in

False

Meeting the needs of the present without compromising the ability of future generations to meet their needs is known as corporate social responsibility.

False

Productivity is the total value of all inputs to the transformation process divided by the total value of the outputs produced.

False

SWOT analysis is a method of determining external strengths and weaknesses and internal opportunities and threats.

False

The maximax criterion of decision making requires that all decision alternatives have an equal probability of occurrence.

False

The theory of competitive advantage implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can.

False

UPS plans its truck routes with the fewest possible right turns.

False

Single-Stage control of replenishment

Fixing responsibility for monitoring and managing inventory for the retailer

Toyota Production System (TPS)

Focus on continuous improvement, respect for people, and standard work practices

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

Ford Motor Company

Which of the following organizations does not belong to the service sector

Ford Motor Company

The father of scientific management is

Frederick W. Taylor.

System nervousness

Frequent changes in an MRP system

Which of the following statements is​ true? A. Functional area missions are merged to become the organizational mission. B. Corporate mission is shaped by functional strategies. C. External conditions are shaped by corporate mission. D. Functional strategies are shaped by corporate strategy. E. Corporate strategy is shaped by functional strategies.

Functional strategies are shaped by corporate strategy

Robust

Giving satisfactory answers even with substantial variation in the parameters

Does Boeing practice a multinational operations​ strategy, a global operations​ strategy, or a transnational operations​ strategy? Support your choice with specific references to​ Boeing's operations and the characteristics of each type of organization.

Global. Its level of integration goes beyond multinational. The collection of parts and subassemblies coming from other countries is carefully orchestrated. It is not transnational because its​ "home" is clearly the​ U.S., and there is little sense of​ "local responsiveness.

The Frito-Lay plant applies a product focus strategy, which is appropriate for what type of producer?

High-volume, low-variety

Which of the following are among the 10 strategic operations management​ decisions? I. design of goods and services II. managing quality III. layout strategy IV. marketing V. pricing of goods and services

I, II, III

Smarter computers will lead to job losses

In jobs for telemarketers and accountants

Lead time

In purchasing systems, the time between placing an order and receiving it; in production systems, the wait, move, queue, setup, and run times for each component produced

Single-factor productivity

Indicates the ratio of one resource (input) to the goods and services produced (outputs)

Productivity increases when

Inputs decrease while outputs remain the same

The percentage of U.S. jobs in manufacturing

Is declining to about 10% of all jobs

Which of the following is an advantage of ERP?

It creates commonality of databases

How has McDonald's driven seconds out of the production process to be able to produce made-to-order hamburgers in 45 seconds?

It reconfigured its kitchen layout

Services throughout the world use

JIT, TPS, and Lean

The japanese call the practice of stopping production when a defeat occurs:

Jidoka

Technological unemployment means that

Jobs in several fields are at risk of being automated

Which of the following statements is most​ correct? A. KSFs are neither necessary nor sufficient for competitive advantage. B. KSFs are both necessary and sufficient for competitive advantage. C. KSFs are often​ sufficient, but not necessary for competitive advantage. D. KSFs are often​ necessary, but not sufficient for competitive advantage. E. None of the above statements is correct.

KSFs are often​ necessary, but not sufficient for competitive advantage.

What word means continuous improvement in Japanese?

Kaizen

Which forecast error measure provides an error​ percentage? A. MD B. MAPE C. MSE D. MAD

MAPE

MRP limitations

MRP is an excellent tool for product-focussed and repetitive facilities, but it has limitations in process... or make to order environments MRP is considered an infinite scheduling technique MRP does not do detailed scheduling

MRO

Maintenance, repair, and operating materials

Raw material inventory

Materials that are usually purchased but have yet to enter the manufacturing process

Efficient consumer response (ECR)

Supply chain management systems in the grocery industry that tie sales to buying, to inventory, to logistics, and to production

Competition in the 21st century is no longer between companies; it is between

Supply chains

Which of the following statements is NOT true about​ sustainability? A.Green manufacturing is part of sustainability. B.Sustainability refers to meeting the needs of the present without compromising the ability of future generations to meet their needs. C.Sustainability is often associated with corporate social responsibility. D.Sustainability focuses only on environmental resources.

Sustainability focuses only on environmental resources.

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 higher customer interaction than goods. D. Services tend to have a more inconsistent product definition than goods. E. None, i.e., all of the above are true.

Tangible goods are generally produced and consumed​ simultaneously; services are not

Service sector

That segment of the economy that includes trade, financial, lodging, education, legal, medical, and other professional occupations.

Capacity

The "throughput", or number of units a facility can hold, receive, store, or produce in a period of time

In a typical product-mix problem in linear programming, each general constraints states that:

The amount of a resource used is less than or equal to the amount of resources available

Management process

The application of planning, organizing, staffing, leading, and controlling to the achievement of objectives.

Prior to embarking on supply chain design, operations managers must first consider:

"make-or-buy" and outsourcing decisions

What percentage of the manufacturing process from​ Subaru's Lafayette,​ Indiana, plant goes to the​ landfill?

0%

Planning bill (or kit)

A material grouping created in order to assign an artificial parent to a bill of material; also called pseudo bills

Objective function

A mathematical expression in linear programming that maximizes or minimizes some quantity (often profit or cost, but any goal may be used)

Time fences

A means for allowing a segment of the master schedule to be designated as "not to be rescheduled"

ABC analysis

A method for dividing on-hand inventory into three classifications based on annual dollar volume

Production order quantity model

An economic order quantity technique applied to production orders

Finished-goods inventory

An end item ready to be sold, but still an asset on the company's books

JIT partnerships

Partnerships of suppliers and purchases that remove waste and drive down costs for mutual benefits

Which of the following comes EARLIEST in the decision- making process? a. develop specific and measurable objectives b. evaluate each alternative solution based on its merits and drawbacks. c. Implement and evaluate the decisions and then set a timetable for completion. d. Develop a model.

a. develop specific and measurable objectives

Which of the following is a decision-making criterion that is used for decision making under risk? a. expected monetary value criterion b. Hurwicz criterion (criterion of realism) c. optimistic (maximax) criterion d. equally likely criterion

a. expected monetary value criterion

Which of the following statements in NOT one of the response strategy decisions? a. gather and communicate market research data b. fast transportation c. low setup time d. use buffer stocks to ensure speedy supply

a. gather and communicate market research data

EOQ

can be used as a lot-sizing technique for MRP systems. Can be a reasonable lot fixing technique when demand is relatively constant and independent The EOQ is a statistical technique using averages, whereas the MRP procedure assumes known demand reflected in a master production schedule

what provides feedback to the capacity plan, master production schedule, and production plan so planning can be kept valid at all times?

closed-loop MRP system

Simultaneous performance of the various stages of product development is known as: A. manufacturability and value engineering. B. business engineering. C. advanced engineering. D. concurrent engineering.

concurrent engineering

What is the outcome of an​ alternative/state of nature combination​ called?

conditional value

Just-in-time (JIT)

continuous and forced problem solving via a focus on throughput and reduced inventory

A set of​ skills, talents, and capabilities in which a firm is particularly strong is referred to as

core competencies

Which negotiation strategy bases price on a published, auction, or index price? a. cost-based price model b. supply-based price model c. competitive bidding d. market-based price model

d. market-based price model

What is an alternative name for a decision table? a. decision grid b. outcome table c. decision matrix d. payoff table

d. payoff table

Bayes' theorem is used to revise probabilities. The new (revised) probabilities are called a. prior probabilities. b. sample probabilities. c. survey probabilities. d. posterior probabilities

d. posterior probabilities

What is a tabular means of analyzing decision alternatives and states of​ nature?

decision table

The fundamental purpose of an​ organization's mission statement is​ to:

define the​ organization's purpose in society.

The objective of layout strategy is to: A. develop an effective and efficient layout that will meet the​ firm's competitive requirements. B. improve customer interaction. C.improve the flow of information. D. improve employee morale.

develop an effective and efficient layout that will meet the​ firm's competitive requirements.

An engineering drawing shows​ the:

dimensions, tolerances,​ materials, and finishes of a component.

In manufacturing, excess capacity can be used to

do more setups, shorten production runs, and drive down inventory costs.

Value analysis takes​ place:

during the production process when it is clear that the new product is a success.

Which of the following would likely cause a change in market opportunities based upon levels of income and​ wealth? A.political change B.sociological and demographic change C.legal change D.technological change E.economic change

economic change

How companies remain in business is referred to as

economic sustainability.

Supply chain management systems in the grocery industry that tie sales to buying, to inventory, to logistics, and to production are called:

efficient consumer response

Inventory control models assume that demand for an item is

either independent of or dependent on the demand for other items

12. The EVSI a. is found by subtracting the EMV without sample information from the EMV with sample information. b. is always equal to the expected value of perfect information. c. equals the EMV with sample information assuming no cost for the information minus the EMV without sample information. d. is usually negative

equals the EMV with sample information assuming no cost for the information minus the EMV without sample information

What is the difference between the expected payoff under perfect information and the maximum expected payoff under​ risk?

expected value of perfect information

What is the average return under complete​ certainty?

expected value with perfect information

How does management describe the​ "strategy" of Hard Rock​ Café?

experience strategy

The advantage of having few suppliers is to..

form a long term relationship

a product focus​ strategy is appropriate for what type of​ producer? A. low-volume, high-variety B. high-volume, high-variety C. high-volume, low-variety D. low-volume, low-variety

high-volume, low-variety

Porter's Five Forces Model is used to evaluate competition based on which 5​ aspects?

immediate​ rivals, potential​ entrants, customers,​ suppliers, and substitute products

Benefits of MRP

improved utilization of facilities and labor, better response to customer orders as the result of improved adherence to schedules, faster response to market changes

Pegging

in material requirements planning systems, tracing upward in the bill of material from the component to the parent item

Which of the following OM​ strategy/issues should a firm with a product in the maturity stage of its life cycle be LEAST concerned with at the present​ time? A. fewer rapid product changes B. standardization C. cost cutting D. long production runs E. increase capacity

increase capacity

Multifactor productivity

indicates the ratio of many or all resources (inputs; labor, material, energy, capital) to the goods and services produced (outputs) Productivity= output divided by all resources

Productivity increases when A. inputs and outputs increase proportionately. B. inputs decrease while outputs remain the same. C. inputs increase while outputs remain the same. D. outputs decrease while inputs remain the same

inputs decrease while outputs remain the same

Productivity increases when: A. inputs and outputs increase proportionately. B. outputs decrease while inputs remain the same. C. inputs increase while outputs remain the same. D. inputs decrease while outputs remain the same.

inputs decrease while outputs remain the same.

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

inspecting

What organization has developed principles and standards to be used as guidelines for ethical behavior?

institute for supply management

weeks of supply=

inventory investment/ (annual cost of goods sold/52weeks)

What is a tabular presentation that shows the outcome for each decision alternative under the various possible states of nature​ called?

payoff table

What are the three Ps in the triple bottom line of the three P​s?

people, planet, and profit

Three common measures of supply chain performance are:

percentage invested in inventory, inventory turnover, and weeks of supply

What goes into holding costs:

pilferage, scrap, and obsolescence insurance on inventory, Storage costs NOT: order processing

Which of these is NOT an advantage of​ outsourcing? A. potential creation of future competition B. accessing outside technology C. gaining outside expertise D. cost savings

potential creation of future competition

​Low-volume, high-variety production is best suited for which of the following process​ strategies? A. product focus B. mass customization C. process focus D. repetitive focus

process focus

What is the most critical phase in product life cycle​ assessment?

product design

​High-volume, low-variety production is best suited for which of the following process​ strategies? A. mass customization B. process focus C. product focus D. repetitive focus

product focus

A bill of materials for a menu item in a restaurant is also called

product specification

Listing products in descending order of their individual dollar contribution to the firm is called:

product-by-value analysis.

The creation of goods and services is referred to​ as:

production

what is a concept that results in material being produced only when requested and moved to where it is needed just as it is needed?

pull system

The 3Rs for sustainability are

reduce, reuse, and recycle.

Linear programming is a mathematical technique designed to help operations managers plan and make decisions necessary to allocate:

resources

If probabilities are available to the decision maker, then the decision-making environment is called a. certainty. b. uncertainty. c. risk. d. none of the above

risk.

level schedules

scheduling products so that each day's production meets the demand for that day

What is a data pattern that repeats itself after a period of​ days, weeks,​ months, or​ quarters? A. seasonality B. trend C. random variation D. cycle

seasonality

Lean and sustainability both

seek to maximize resource and economic efficiency

The three major elements of the product decision​ are:

selection, definition, and design.

Reverse logistics involves the process of

sending returned products back up the supply chain for resale, repair, reuse, re manufacture, recycling, or disposal

The economic activities that typically produce an intangible product are referred to as: A. phantoms. B. services. C. products. D. goods.

services

The forecasting time horizon that would typically be easiest to predict for would be the: A. short range. B. intermediate range. C. medium range. D. long range.

short range

An assembly​ chart:

shows graphically how the product is assembled.

What is a system for ordering items that have little or no value at the end of a sales period?

single- period inventory model

The goal of a DRP system is

small and frequent replenishment within the bounds of economical ordering and shipping. When dependent techniques are used in the supply chain, they are called distribution resources planning DRP

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

standardized product

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

standardized product

in decision theory, probabilities are associated with a. payoffs. b. alternatives. c. states of nature. d. none of the above.

states of nature

Walter Shewhart is listed among the important people of operations management because of his contributions​ to:

statistical quality control.

With regard to the cost-based price model negotiation strategy, prices are based upon...

supplier costs

The most that a person should pay for perfect information is a. the EVPI. b. the maximum EMV minus the minimum EMV. c. the maximum EOL. d. the maximum EMV

the EVPI.

Ordering cost

the cost of the ordering process

Productivity measurement is complicated​ by:

the fact that precise units of measure are often unavailable.

Caterpillar and Texas Instruments are two firms that have benefited from the use​ of:

the global strategy option.

A graphic technique for defining the relationship between customer desires and product​ (or service)​ is:

the house of quality.

An operations manager is NOT likely to be involved​ in: A. the design of goods and services to satisfy​ customers' wants and needs. B. the identification of​ customers' wants and needs. C. the quality of goods and services to satisfy​ customers' wants and needs. D. maintenance schedules. E. work scheduling to meet the due dates promised to customers.

the identification of​ customers' wants and needs.

Packaging and logistics are important distribution decisions because

the manufacturer is usually held responsible for breakages and serviceability

​"Today's forecast equals​ yesterday's actual​ demand" is referred as: A. exponential smoothing. B. the naive approach. C. the Delphi method. D. a moving average.

the naive approach.

In a typical product-mix problem in linear programming, the variables are defined as:

the number of units of each product produced

A requirement to be able to compute expected monetary value is?

the probability of each state of nature is known

Service level

the probability that demand will not be greater than supply during lead time. It is he complement of the probability of a stockout

In​ general, the supply chain starts with

the provider of basic raw materials

In​ general, the supply chain starts with: A. a distributor. B. the provider of basic raw materials. C. final customers at the retail store. D. research and development.

the provider of basic raw materials.

Manufacturing cycle time

the time between the arrival of raw materials and the shipping of finished products

What theory implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you​ can?

theory of comparative advantage

What allows a segment of the master schedule to b designated as "not to be rescheduled?"

time fence

One use of inventory is:

to provide a hedge against inflation

Which of the international operations strategies involves high cost reductions and high local​ responsiveness?

transnational strategy

Expected monetary value is most appropriate for problem solving that takes​ place:

under conditions of risk.

If there is any distinction between JIT, TPS, and lean operations, it is that lean operations emphasize

understanding the customer

radio

unit of measure, is the same, but the quality has changed

MRP..

uses a bill-of-materials, inventory, expected receipts, and a master production schedule requirements, MRP provides a clean structure for dependent demand, MRP has evolved as the basis for Enterprise Resource Planning

A fixed period system is appropriate when

vendors make routine visits to customers to take fresh orders or when purchasers want to combine orders to save ordering and transportation costs

Manufacturability and value engineering has which of the following​ benefits? I. Reduced complexity of the product II. Reduction of environmental impact III. Additional standardization of components IV. Robust design V. Improved job design and safety

​I, II,​ III, IV, V

What is the most commonly used criterion for decision tree​ analysis?

EMV

Shrinkage

Retail inventory that is unaccounted for between receipt and sale

A strategy is

an action plan to achieve a mission.

Material requirements planning (MRP)

A dependent demand technique that uses a bill-of-materials, inventory, expected receipts, and a master production schedule to determine material requirements

For each 1% downtime due to a breakdown in equipment, how much of a loss is incurred at Frito-Lay's Orlando plant

$200,000

% invested in inventory =

(Total inventory investment/ total assets) * 100

Forecasting software can:

can automate the use of different methods as a product goes thorough its lifecycle.

3-2 Describe what is involved in the decision process

-2. The decision-making process includes the following steps: (1) define the problem, (2) list the alternatives, (3) identify the possible outcomes, (4) evaluate the consequences, (5) select an evaluation criterion, and (6) make the appropriate decision. The first four steps or procedures are common for all decision-making problems. Steps 5 and 6, however, depend on the decision-making model.

15. In assessing utility values, a. the worst outcome is given a utility of -1. b. the best outcome is given a utility of 0. c. the worst outcome is given a utility of 0. d. the best outcome is given a value of -1

. the worst outcome is given a utility of 0.

The advantage of having many potential suppliers is their willingness to..

.. offer lower prices in the short term

Which of the following refers to developing policies and practices that enhance the competiveness of an organization while advancing the economic and social conditions of the community in which it​ operates? A.carbon footprint B.a systems view C.the triple bottom line D.shared value E.the commons

.a systems view

10 OM Strategy decisions

1) Design of good and services 2) Managing Quality 3) Process strategy 4) Location strategy 5) Layout strategy 6) HR 7) supply-chain management 8) inventory management 9) scheduling 10) maintenance

To create goods and services, all organizations perform three functions :

1) Marketing: generates the demand, or at least takes the order for a product or service 2) Production/operation: creating the product 3) Finance/accounting, tracks how well the organization is doing, pays the bills, and collects the money

Improved labor productivity variables

1) basic education appropriate for an effective labor force 2) diet of the labor force 3) social overhead that makes labor available, such as transportation and sanitation

Why study operations management?

1) one of the three major functions of any organization: how people organize themselves for productive enterprise 2) how goods and services are produced 3) understand what operations managers do 4) because it is such a costly part of an organization

10 Critical decisions of OM

1) service and product design 2) quality management 3) process and capacity design 4) location 5) layout design 6) HR and Job design 7) supply-chain management 8) Inventory, material requirements planning and JIT (just-in-time) 9) Intermediate and short-term scheduling 10) Maintenance

Time series models include:

1. Holt and​ Holt-Winters. 2. weighted moving averages. 3. moving averages.

Which of the following is NOT one of Taiichi Ohno's seven wastes? 1. energy 2. queues 3. motion 4. transportation

1. energy

Which of the following approaches makes a new capacity a larger increase at the beginning of the period? 1. lagging demand with incremental expansion 2. leading demand with a one-step expansion 3. attempts to have an average capacity that straddles demand with incremental expansion 4. leading demand with incremental expansion

2. leading demand with a one-step expansion

How often is the annual inventory turnover for items like potatoes, corn, oil and seed, which are all perishable

200 times

-1 Give an example of a good decision that you made that resulted in a bad outcome. Also give an example of a bad decision that you made that had a good outcome. Why was each decision good or bad?

3-1. The purpose of this question is to make students use a personal experience to distinguish between good and bad decisions. A good decision is based on logic and all of the available information. A bad decision is one that is not based on logic and the available information. It is possible for an unfortunate or undesirable outcome to occur after a good decision has been made. It is also possible to have a favorable or desirable outcome occur after a bad decision.

3-3 What is an alternative? What is a state of nature?

3-3. An alternative is a course of action over which we have complete control . An example of an alternative is deciding whether or not to take an umbrella to school or work on a particular day . A state of nature is an event or occurrence in which we have no control.. An example of a state of nature is whether or not it will rain on a particular day.

Discuss the differences among decision making under certainty, decision making under risk, and decision making under uncertainty.

3-4. The basic differences between decision-making models under certainty, risk, and uncertainty depend on the amount of chance or risk that is involved in the decision. A decision-making model under certainty assumes that we know with complete confidence the future outcomes. Decision-making-under-risk models assume that we do not know the outcomes for a particular decision but that we do know the probability of occurrence of those outcomes. With decision making under uncertainty, it is assumed that we do not know the outcomes that will occur, and furthermore, we do not know the probabilities that these outcomes will occur

What techniques are used to solve decision-making problems under uncertainty? Which technique results in an optimistic decision? Which technique results in a pessimistic decision

3-5. The techniques discussed in this chapter used to solve decision problems under uncertainty include maximax, maximin, equally likely, criterion of realism, and minimax regret. The maximax decision-making criterion is an optimistic decision-making criterion, while the maximin is a pessimistic decision-making criterion

Define opportunity loss. What decision-making criteria are used with an opportunity loss table?

3-6. For a given state of nature, opportunity loss is the difference between the payoff for a decision and the best possible payoff for that state of nature. It indicates how much better the payoff could have been for that state of nature. The minimax regret and the minimum expected opportunity loss are the criteria used with this

3-7 What information should be placed on a decision tree?

3-7. Alternatives, states of nature, probabilities for all states of nature and all monetary outcomes (payoffs) are placed on the decision tree. In addition, intermediate results, such as EMVs for middle branches, can be placed on the decision tree

-8 Describe how you would determine the best decision using the EMV criterion with a decision tree

3-8. Using the EMV criterion with a decision tree involves starting at the terminal branches of the tree and working toward the origin, computing expected monetary values and selecting the best alternatives. The EMVs are found by multiplying the probabilities of the states of nature by the economic consequences and summing the results for each alternative. At each decision point, the best alternative is selected.

Which of the following attributes is NOT for lean operations? 1. Develop partnerships with suppliers 2. Build systems that help employees produce a perfect product every time 3. Increase space requirements 4. Use JIT techniques to eliminate virtually all inventory

3. Increase space requirements

Which of the following activities does not need to be virtually eliminated for a lean organization? 1. material handling 2. inspection 3. cross-training 4. inventory

3. cross-training

Which of the following statements about DRP is NOT true? 1. DRP stands for distribution resource planning 2. DRP procedures and logic are analogous to MRP 3. Lead times are considered in DRP 4. DRP pushes inventory through the system

4. DRP pushes inventory through the system

Which of the following is NOT true? 1. Demand for items is dependent when the relationship between items can be determined 2. Less inventory frees up capital and floor space for other uses 3. For any product for which a schedule can be established, dependent techniques should be used. 4. For any product, some components of that product are independent demand items

4. For any product, some components of that product are independent demand items

The 5Ss developed by the Japanese do NOT include : 1. sort./segregate 2. standardize 3. simplify/ straighten 4. Safety

4. Safety

What percentage of sales from new products is indicative of industry​ leaders?

50%

The ratio of all resources to the goods and services produced is referred as A. multifactor productivity.B. single-factor productivity.C. productivity growth.D. labor productivity.

A

Pull system

A concept that results in material being produced only when requested and moved to where it is needed just as it is needed

Cycle counting

A continuing reconciliation of inventory with inventory records

Which of the following is the best example of competing on​ low-cost leadership? A. A firm offers more reliable products than its competitors do. B. A​ firm's research and development department generates many ideas for new products. C. A firm produces its product with less raw material waste than its competitors do. D A firm advertises more than its competitors do. E. A​ firm's products are introduced into the market faster than its​ competitors' products are

A firm produces its product with less raw material waste than its competitors do.

Kaizen

A focus on continuous improvement

5Ss

A lean production checklist: sort, simplify, shine, standardize, sustain

Bill of material (BOM)

A list of the hierarchy of components, their description, and the quantity of each required to make one unit of a product

Lot-for-lot

A lot-sizing technique that generates exactly what is required to meet the plan

Within decision- making theory, what is a relationship between objectives and variables?

A model

Low- level coding

A number that identifies items at the lowest level at which they occur.

Quantity discount

A reduced for items purchased in large quantities

Load report

A report showing the resource requirements in a work center for all work currently assigned there as well as all planned and expected orders

A route sheet provides​ a(n):

A route sheet provides​ a(n):

Gross material requirements plan

A schedule that shows the total demand for an item (prior to subtraction of unhand inventory and scheduled receipts, and (1) when it must be ordered from suppliers, or (2) when production must be started to meet its demand by a particular date.

Pure service

A service that does not include a tangible product

Pilferage

A small amount of theft

Knowledge society

A society in which much of the labor force has migrated from manual work to work based on knowledge.

Probabilistic model

A statistical model applicable hen product demand or any other variable is not known but can be specified by means of a probability distribution

A global network of organizations and activities that supply a firm with goods and services is referred to as

A supply chain

Single- period inventory model

A system for ordering items that have little or no value at the end of a sales period (perishables)

Fixed- period (P) system

A system in which inventory orders are made at regular time intervals

Material requirements planning II (MRP II)

A system that allows, with MRP in place, inventory data to be augmented by other resource variables; in this case, MRP becomes material resource planning.

Perpetual inventory system

A system that keeps track of each withdrawal or addition to inventory continuously, so records are always current

Closed- loop MRP system

A system that provides feedback to the capacity plan, master production schedule, and production plan so planning can be kept valid at all times

Distribution resource planning (DRP)

A time- phased stock- replenishment plan for all levels of a distribution network.

Master production schedule (MPS)

A timetable that specifies what is to be made (usually finished goods) and when

Pull data

Accurate sales data that initiate transactions to "pull" product through the supply chain

Operations Management (OM)

Activities that relate to the creation of goods and services through the transformation of inputs to outputs.

Before establishing and implementing​ strategy, a resources view would ensure that which of the following resources are​ available? A. physical B. financial C. human D. technological E. All of the above

All of the above

Which of the following represents an opportunity for generating a new​ product? A.changes in professional standards B.demographic​ change, such as decreasing family size C.understanding the customer D.economic​ change, such as rising household incomes E.All of the above are such opportunities.

All of the above are such opportunities.

Which of these statements regarding Regal Marine is​ TRUE? A.Regal's use of CAD has resulted in a superior product. B.Regal still uses some wooden parts and​ hand-produces some components. C.Regal uses a​ three-dimensional CAD system to shorten product development time. D.Product design is a critical decision for the firm. E.All of the above are true.

All of the above are true.

Which of the following organizations does NOT require​ operations? A. American Red Cross B. Walmart C. Washington State University D. All of the above require operations

All of the above require operations

Which of the following is NOT considered a step in the​ decision-making process? A.Select the best alternative. B.Evaluate each alternative solution based on its merits and drawbacks. C.Develop specific and measurable objectives. D.Minimize costs whenever possible. E.Clearly define the problem and the factors that influence it.

Minimize costs whenever possible

What is the primary benefit of creating a product family or aggregated​ forecast? A. Minimizing forecast errors B. Minimizing the time horizon of the forecast C. Determining the best forecasting method D. Maximizing the number of forecasts needed

Minimizing forecast errors

Current challenges in operations management include all of the following​ EXCEPT: A. just-in-time performance. B. empowered employees. C. mass customization. D. rapid product development. E. None of the above are​ exceptions, i.e., all are current challenges.

None of the above are​ exceptions, i.e., all are current challenges.

Which of the following best represents the role of operations management​ (OM)? A. OM only plays an important role in manufacturing B. OM only plays an important role in services C. OM plays an equally important role in both manufacturing and services D. OM plays a vital role in​ manufacturing, and a minor role in services

OM plays an equally important role in both manufacturing and services

A large percentage of the revenue of most firms is spent on which function?

Operations

The set of activities that relate to the creation of goods and services through the transformation of inputs to outputs is referred to as: A. operations management. B. marketing. C. supply chain management. D. finance.

Operations Management

What sends a lot to two different machines for the same operation?

Operations splitting

Seven wastes

Overproduction queues transportation inventory motion over processing defective product

what is a lot-sizing technique that orders the quantity needed during a predetermined time between orders?

POQ

Principles for standard work practice at Toyota:

Product and service flows are to be simple and direct Internal and external customer- supplier connections are direct, specifying personnel, methods, timing and quantity Work is completely specified as to content, sequence, timing, and outcome

​________ is used to rank a​ company's products to determine which products represent the best use of the​ firm's resources,​ or, perhaps, to determine which products are to be eliminated.

Product-by-value analysis

The creation of goods and services is referred to as

Production

Work-in-process (WIP) inventory

Products or components that are no longer raw materials but have yet to become finished products

If computers are causing a period of disruptive growth

Progress in automation will be swift

What drives plant location decisions at Frito-Lay

Proximity to raw materials or markets

Which of the following statements is NOT true about the quality function deployment​ (QFD)? A. QFD is used to determine what will satisfy the customer B. QFD is used to translate customer desires into the target design C. QFD is used to determine why the customer requires specific product attributes D. QFD is used early in the design process

QFD is used to determine why the customer requires specific product attributes

Frito lay scores well above the passing grade in quality control and utilizes statistical process controls to assist in these efforts. Which of the 10 operation management decisions is involved?

Quality

Which of these statements accurately captures a current trend in operations?

Rapid product development

Which of the following is NOT considered to be one of the three primary functions that all organizations​ perform? A. research and development B. production/operations C. finance/accounting D. marketing

Research and Development

Which of the following is not considered to be one of the three primary functions that all organizations perform?

Research and Development

The economic activities that typically produce an intangible product are referred to as

Services

What is the cost to prepare a machine or process for production?

Setup cost

The objective of inventory management is to

Strike a balance between inventory investment and customer service

Features of Toyota's new Japanese plant?

The assembly line has cars side by side, rather than bumper to bumper Retooling permits faster changeovers, allowing for shorter product runs of components, supporting level scheduling. The assembly line uses quiet friction rollers with fewer moving parts, requiring less maintenance than conventional lines and reducing worker fatigue

Setup cost (time)

The cost (time) to prepare a machine or process for production

Holding cost

The cost to keep or carry inventory stock

Production

The creation of goods and services.

Expected value of perfect information (EVPI)

The difference between the payoff under perfect information and the payoff under risk

What is the goal for mass customization

The goal is to produce customized products, whenever and wherever needed

Reorder point (ROP)

The inventory level (point) at which action is taken to replenish the stocked item.

Kanban

The japanese word for card, which has come to mean "signal"; a kanban system moves parts through production via a "pull" from a signal

ERP:

The objective of ERP system is to coordinate a firms whole business. ERP allows companies share a common database and business practices throughout the enterprise ERP usually provides financial and human resource management information

Lot- sizing decision

The process of, or techniques used in, determining lot size

In general, the supply chain starts with

The provider of basic raw materials

Planned order receipt

The quantity planned to be received at a future date

Productivity

The ratio of outputs (goods and services) divided by one or more inputs (resources, such as labor, capital, or management productivity= Units produced divided by input used

Net requirements plan

The result of adjusting gross requirements for inventory on hand and scheduled receipts.

Planned order release

The scheduled date for an order to be released

Productivity variable

The three factors critical to productivity improvement - labor, capital and the arts and science of management. Labor - contributes 10% of annual increase Capital - contributes 38% of annual increase Management - contributes about 52% of annual increase.

Why are accurate forecasts so​ important?

They are the foundation for business growth.

How do pharmacies implement lean operations to ensure that customers will always receive heir medications upon demand?

They develop community networks as backup systems

A house of quality would depict the strength of the relationship between which of the following two​ items? A. The design​ team's choice of material for a wallet and the materials that were considered but rejected by the design team. B. The​ customer's need for a sealable change pocket and the​ customer's need for plastic inserts to display pictures. C. The​ customer's desire for a durable wallet and the​ company's choice of material for the wallet. D. The stitching used in your​ company's new product and the stitching used in a​ competitor's wallet.

The​ customer's desire for a durable wallet and the​ company's choice of material for the wallet.

Services

Those economic activities that typically produce an intangible product (such as education, entertainment, lodging, government, financial and health services). Often are: - intangible - produced and consumed simultaneously - unique - high customer interaction - inconsistent product definition - knowledge-based - dispersed * Most goods contain a service and most services contain a good.

The operations manager has two important tools available to deal with MRP system nervousness. Those tools are:

Time fences and pegging

Buckets

Time units in a material requirements planning system

What is the objective of the product​ decision? A. To develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage. B. To develop and implement a product strategy that positions the firm as an industry leader. C. To develop and implement a product strategy that minimizes the product life cycle. D. To develop and implement a product strategy that exceeds the demands of the supply chain with a competitive advantage.

To develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage.

Which of the following is NOT true regarding layout​ decisions? A. Layout designs need to be viewed as dynamic because of our increasingly​ short-life-cycle and​ mass-customized world. B. An effective layout can help an organization achieve a strategy that supports​ differentiation, low​ cost, or response. C. Layout is one of the key decisions that determines the​ long-run efficiency of operations. D. To obtain flexibility in​ layout, operations managers could keep investments high.

To obtain flexibility in​ layout, operations managers could keep investments high.

3M's goal is to produce​ 30% of its profit from products introduced in the last 4 years.

True

A state of nature is an occurrence or a situation over which the decision maker has little or no control.

True

Boeing's development of the 787 Dreamliner is an example of a company obtaining a competitive advantage through product​ differentiation/innovation.

True

NAFTA seeks to phase out all trade and tariff barriers among​ Canada, Mexico, and the United States.

True

Operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs.

True

Outsourcing is the practice of transferring a​ firm's activities that have traditionally been internal to external suppliers.

True

Productivity is generally more difficult to improve in the service sector than in the manufacturing sector.

True

The World Trade Organization helps provide governments and industries around the world with protection from firms that engage in unethical conduct.

True

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

The objective of the product decision is to develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage.

True

Which of the following is true regarding value​ engineering? A.Value engineering can save substantial amounts of product​ cost, but quality suffers. B.Value engineering is oriented toward improvement of design. C.Value engineering occurs during production when it is clear the product is a success. D.Value engineering creates fragile design. E.Value engineering occurs only after the product is selected and designed.

Value engineering is oriented toward improvement of design.

What is developing the ability to produce G&S previously purchased or actually buying a supplier or a distributor?

Vertical integration

The person who believed that management must do more to improve the work environment and processes so that quality can be improved was

W. Edwards Deming.

Which lot-sizing techniques is likely to prove the most complex to use?

Wagner-Whitin

Which of the following is not one of the four reasons that we study OM?

We want to understand what marketing managers do

What is the difference between a multinational corporation​ (MNC) and an international​ business?

What is the difference between a multinational corporation​ (MNC) and an international​ business?

Virtually every restaurant deals with its suppliers on

a JIT basis

A consistent tendency for forecasts to be greater or less than the actual values is called​ ________ error. A. an extreme B. a bias C. an unbalanced D. a trend

a bias

Which of the following typically shows the hierarchy of​ components, their​ description, and the quantity of each required to make one unit of a​ product? A.an assembly chart B.a bill of material C.an assembly drawing D.an engineering drawing E.a route sheet

a bill of material

A system that triggers ordering on a uniform time basis is called

a fixed- period system

A decision tree is preferable to a decision table when a. a number of sequential decisions are to be made. b. probabilities are available. c. the maximax criterion is used. d. the objective is to maximize regret

a number of sequential decisions are to be made

A system that keeps track of each withdrawal or addition to inventory continuously is

a perpetual inventory system

A global network of organizations and activities that supply a firm with goods and services is referred to as

a supply chain.

A global network of organizations and activities that supply a firm with goods and services is referred to as: A.business functions. B. a supply chain. C. operations management. D. production.

a supply chain.

14. On a decision tree, once the tree has been drawn and the payoffs and probabilities have been placed on the tree,the analysis (computing EMVs and selecting the best alternative) a. is done by working backward (starting on the right and moving to the left). b. is done by working forward (starting on the left and moving to the right). c. is done by starting at the top of the tree and moving down. d. is done by starting at the bottom of the tree and moving up

a. is done by working backward (starting on the right and

The advantage and disadvantage of the fixed- period system is

advantage is that there is no physical count of inventory items after an item is withdrawn disadvantage is that because there is no tally of inventory during the review period, there is the possibility of a stockout during this time

Which of the following is an example of an external product development​ strategy? A.enhancements to existing products B.migrations of existing products C.new internally developed products D.alliances E.All of the above are examples of internal product development strategy.

alliances

In decision theory terminology, a course of action or a strategy that may be chosen by a decision maker is called a. a payoff. b. an alternative. c. a state of nature. d. none of the above

an alternative.

Consignment inventory

an arrangement in which the supplier maintains title to the inventory until it is used.

Effective use of DRP requires:

an integrated information system to rapidly convey planned order releases from one level to the next

ABC analysis divides an organization's on-hand inventory into 3 classes based upon:

annual dollar volume

The best type of forecasting for introducing a new product is:

an​ attribute-based method.

The carbon footprint is defined as a measure of total greenhouse gas emissions caused directly or indirectly by what four​ things?

an​ organization, a​ product, an​ event, or a person

Decision​ trees: A.are rarely used because one needs specialized software to graph them. B.give more accurate solutions than decision tables. C.are too complex to be used by decision makers. D.are especially powerful when a sequence of decisions must be made. E.give less accurate solutions than decision tables.

are especially powerful when a sequence of decisions must be made.

When should product strategy focus on forecasting capacity​ requirements?

at the growth stage of the product life cycle

11. On a decision tree, at each state-of-nature node, a. the alternative with the greatest EMV is selected. b. an EMV is calculated. c. all probabilities are added together. d. the branch with the highest probability is selected.

b. an EMV is calculated.

In using the criterion of realism (Hurwicz criterion), the coefficient of realism (alpha ) a. is the probability of a good state of nature. b. describes the degree of optimism of the decision maker. c. describes the degree of pessimism of the decision maker. d. is usually less than zero

b. describes the degree of optimism of the decision maker

16. If a rational person selects an alternative that does not maximize the EMV, we would expect that this alternative a. minimizes the EMV. b. maximizes the expected utility. c. minimizes the expected utility. d. has zero utility associated with each possible payoff

b. maximizes the expected utility.

What decision tree symbol represents a decision node? a. triangle b. square c. circle d. trapezoid

b. square

The service sector constitutes what percentage of employment in the United​ States?

between​ 80% to​ 90%

What is a list of quantities of components, ingredients, and materials required to make a product?

bill of materials

Which of the following is LEAST likely to be a​ low-cost leadership competitive​ advantage? A. broad product line B. mass production C. low overhead D. effective capacity use E. inventory management

broad product line

The minimum EOL criterion will always result in the same decision as a. the maximax criterion. b. the minimax regret criterion. c. the maximum EMV criterion. d. the equally likely criterion

c. the maximum EMV criterion.

13. The efficiency of sample information a. is the EVSI/(maximum EMV without SI) expressed as a percentage. b. is the EVPI/EVSI expressed as a percentage. c. would be 100% if the sample information were perfect. d. is computed using only the EVPI and the maximum EMV

c. would be 100% if the sample information were perfect

The role of decision trees in product design is​ to:

calculate the expected value of each course of action.

A tracking signal: A. is computed as the mean absolute deviation​ (MAD) divided by the running sum of the forecast errors​ (RSFE). B. is a measurement of how well a forecast is predicting actual values. C. cannot be used with exponential smoothing. D. that is negative indicates that demand is greater than the forecast.

is a measurement of how well a forecast is predicting actual values.

The minimum expected opportunity loss a. is equal to the highest expected payoff. b. is greater than the expected value with perfect information. c. is equal to the expected value of perfect information. d. is computed when finding the minimax regret decision

is equal to the expected value of perfect information

Which of the following approaches may use subcontracting to accommodate excess demand? 1. leading demand with incremental expansion 2. subcontracting should never be used to accommodate excess demand 3. leading demand with a on-step expansion 4. lagging demand with incremental expansion

lagging demand with incremental expansion

assumptions of fixed- period systems

lead times are known, the only relevant costs are the ordering and holding costs, items are independent of one another Not- lead times are variable

The most aggressive and risky approach to capacity planning is

leading demand with one-step expansion

What is an analysis of environmental impacts of products from the design stage through​ end-of-life?

life cycle assessment

What is a report showing the resource requirements in a work center for all work currently assigned there as well as all planned and expected orders?

load report

What is the act of breaking up an order and running part of it ahead of schedule?

lot splitting

What is the lot-sizing technique that generates exactly what was required to meet the plan?

lot-for-lot

The likelihood that a decision maker will ever receive a payoff precisely equal to the EMV when making any one decision​ is:

low​ (near 0%).

The largest contributor to productivity increases is​ ________, estimated to be responsible for​ ________ of the annual increase

management; over​ one-half

Which of the following are the primary functions of all​ organizations? A. marketing, production/operations, and​ finance/accounting B. marketing, human​ resources, and​ finance/accounting C. sales, quality​ control, and​ production/operations D. production/operations, marketing, and human resources E. research and​ development, finance/accounting, and purchasing

marketing, production/operations, and​ finance/accounting

A large quantity and large variety of products are produced in: A. mass customization. B. product focus. C. repetitive focus. D. process focus.

mass customization.

Standardization is an appropriate strategy in which stage of the product life​ cycle?

maturity

When ordering a new​ zagflatz, customers must choose the style of three major​ components, each of which has about ten variations. This is an example of: A. environmentally friendly design. B. modular design. C. robust design. D. CAD.

modular design

Policies based on ABC analysis might include investing:

more in supplier development for A items

The total of all outputs produced by the transformation process divided by the total of the inputs​ is:

multifactor productivity

A large percentage of the revenue of most firms is spent on which​ function?

operations

what goes into ordering costs?

order processing cost of supplies clerical support Not: interest payments

What is a long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship?

blanket order

Cross- sourcing:

uses one supplier for a component and a second supplier for another component, where each supplier acts as a backup for the other

Design Capacity

The theoretical maximum output of a system in a given period under ideal conditions

Throughput time

The time it takes for a product to go through the production process with no waiting

Bottleneck time

The time of the longest (slowest) process; the bottleneck

Theory of constraints (TOC)

A body of knowledge that deals with anything that limits an organization's ability to achieve its goals

Maximax

A criterion that finds an alternative that maximizes the maximum outcome

Maximin

A criterion that finds an alternative that maximizes the minimum outcome

Linear programming (LP)

A mathematical technique designed to help operations managers plan and make decisions necessary to allocate resources

Net present value

A means of determining the discounted value of a series of future cash receipts

Capacity Analysis

A means of determining throughput capacity of workstations or an entire production system

Break-even analysis

A means of finding the point, in dollars and units, at which costs equal revenues.

Graphical solution approach

A means of plotting a solution to a two- variable problem on a graph

Collaborative planning, forecasting, and replenishment (CPFR)

A system in which members of a supply chain share information in a joint effort to reduce supply chain costs

Which of the following statements is NOT true regarding a bill of material​ (BOM)? A. A BOM cannot be referenced on other bills of material. This is the correct answer. B. In the​ food-service industry, BOMs manifest themselves in​ portion-control standards. C. A BOM lists the hierarchy of components and their description. D. A BOM lists the quantity of each coponent required to make one unit of a product.

A. A BOM cannot be referenced on other bills of material.

Utilization

Actual output as a percent of design capacity

Efficiency

Actual output as a percent of effective capacity

Iso-profit line method

An approach to solving a linear programming maximization problem graphically

Virtual companies

Companies that rely on a variety of supplier relationships to provide services on demand. Also known as hollow corporations or network companies

In linear programmin, what are restrictions that limit the degree to which a manager can pursue an objective?

Constraints

Via computer, the simplex method methodically examines____ to search for the optimal solution of an LP problem.

Corner points

Vertical Integration

Developing the ability to produce goods and services previously purchased or actually buying a supplier or a distributor

Two or more products are produced using limited resources. The firm would like to determine how many units of each product it should produce to maximize overall profit given its limited resources. This situation describes what type of problem in linear programming?

Product-Mix

E-procurement

Purchasing facilitated through time internet

Constraints

Restrictions that limit the degree to which a manager can pursue an objective

"closed- loop supply chain" is sometimes used as a synonym for:

Reverse logistics

What is the value of one additional unit of a scarce resource in LP?

Shadow Price

What is the name of the algorithm that solves linear programming problems of all sizes?

Simplex method

What is the first stage of supplier selection?

Supplier evaluation

Effective capacity

The capacity of a firm can expect to achieve, given its product mix, methods of scheduling, maintenance, and standards of quality

Supply Chain management

The coordination of all supply chain activities involved in enhancing customer value

Expected monetary value (EMV)

The expected payout or value of a variable that has different possible states of nature, each with an associated probability

Within decision-making theory, what is a relationship between objectives and variables? a. a model b. a path c. a link d. a match

a. a model

Which of the following could reduce distribution risk? a. careful selection, monitoring and effective contracts with penalties b. use multiple suppliers c. cross-country diversification d. secure IT systems

a. careful selection, monitoring and effective contracts with penalties

Bullwhip effect :

a. inaccurate information results in distortions and fluctuations b. Bullwhip fluctuations in the supply chain increase the costs associated with inventory, transportation, shipping and receiving c. Bullwhip fluctuations in the supply chain decrease customer service and profitability

Which of the following strategies is part collaboration, part purchasing from few suppliers, and part vertical integration? a. keiretsu networks b. joint ventures c. virtual companies d. horizontal integration

a. keiretsu networks

Benefits accrued from a centralized purchasing function:

a. leverage purchase volume for better pricing b. Devote more resources to the supplier selection and negotiation process c. maintain professional control over the purchasing process

In linear programmin, what is a numerical value that is given in a model? a. parameter b. conditional value c. objective d. variable

a. parameter

When determining the optimal number of facilities, logistics- related costs do NOT usually include which of the following costs? a. purchasing b. transportation c. facility d. inventory

a. purchasing

Channel assembly:

a. represents one way to implement postponement b. treats distributors more as manufacturing partners than as distributors. c. postpones final assembly of a product so the distribution channel can assemble it

Which of the following statements is NOT one of the differentiation strategy decisions? a. use buffer stocks to ensure speedy supply b. minimize inventory to avoid product obsolescence c. modular design to aid product differentiation d. gather and communicate market research data

a. use buffer stocks to ensure speedy supply

Sensitivity analysis

an analysis that projects how much a solution may change if there are changes in the variables or input data

What are the four requirements of a linear programming problem?

an objective, constraints, alternatives, and linearity

Which of the following is NOT considered to be a resource for a firm? a. labor b. accounts payable c. machinery d. time

b. accounts payable

What is a course of action or strategy that may be chosen by a decision maker? a. state of nature b. alternative c. mode d. mission

b. alternative

What are listed down the left side of a decision table? a. outcome probabilities b. alternatives c. states of nature d. conditional values

b. alternatives

Which of the following industries has the highest supply chain cost as a percentage of sales? a. metals b. petroleum c. restaurants d. automobile

b. petroleum

Which of the following mitigation tactics could reduce economic risk? a. subcontractors on retainer b. purchasing contracts that address price fluctuations c. franchising and licensing d. multiple transportation modes and warehouses

b. purchasing contracts that address price fluctuations

Which of the following is NOT true about reverse logistics as compared to forward logistics? a. forecasting is more uncertain b. speed is often very important c. pricing is dependent on many factors d. distribution costs are less directly visible

b. speed is often very important

What is an occurrence or a situation over which the decision maker has little or no control? a. alternative b. state of nature c. chance event d. unactionable event

b. state of nature

What are listed across the top of a decision table? a. alternatives b. states of nature c. outcome probabilities d. conditional values

b. states of nature

Which of the following statements in NOT true? a. Supply chain management describes the coordination of all supply chain activities, starting with raw materials, and ending with a satisfied customer. b. A supply chain includes suppliers; manufacturers and/or service providers; and distributors, wholesalers, and/or retailers who deliver the product/ service to the final customer c. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting d. The objective supply chain management is to coordinate activities w/in the supply chain to maximize the supply chain's competitive advantage and benefits to the ultimate consumer

c. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting

Which of the following is the 5th step in the decision-making process? a. Evaluate each alternative solution based on its merits and drawbacks b. Implement and evaluate the decisions and then set a timetable for completion c. Select the best alternative d. Develop specific and measurable objectives

c. Select the best alternative

Which of the following would likely NOT represent an application of linear programming in OM? a. scheduling tellers at banks so that needs are met during each hour of the day while minimizing the total cost of labor b. scheduling school buses to minimize the total distance traveled when carrying students c. allocating space for a tenant mix in a new shopping mall so as to minimize revenues to the leasing company d. allocating police patrol units to high crime areas to minimize response time to 911 calls

c. allocating space for a tenant mix in a new shopping mall so as to minimize revenues to the leasing company

Which of the following mitigation tactics is NOT designed to reduce the risk of information loss or distortion? a. training of supply chain partners on the proper interpretations and use of information b. secure IT systems c. alternate sourcing d. redundant databases

c. alternate sourcing

What decision tree symbol represents a state-of-nature node? a. triangle b. square c. circle d. trapezoid

c. circle

what is a supply chain designed to optimize both forward and reverse flows? a. open- loop supply chain b. reverse-loop supply chain c. closed-loop supply chain d. bullwhip-loop supply chain

c. closed-loop supply chain

Trucking: a.is the least used transportation mode for manufacturing goods b. is one of the least flexible transportation modes c. is increasingly using computers to manage its operations d. does not play a role in multi-modal shipping.

c. is increasingly using computers to manage its operations

What tool does American Airlines use to schedule flights? a. queuing analysis b. decision trees c. linear programming d. simulation

c. linear programming

In linear programming, what is another name for sensitivity analysis? a. regression analysis b. robustness analysis c. parametric analysis d. postoptimality analysis

d. postoptimality analysis

Top-notch chain performance requires good

downstream management, just as it does a good upstream management.

Supply chain managers outsource logistics to meet three goals:

drive down inventory investment, lower delivery costs, and improve delivery reliability and speed