SCM Chapter 2

10. Which of the following describes the capabilities and skill sets possessed by a firm that distinguish the firm from its competition? a. Core competencies b. Business intelligence c. Analytical toolbox d. Managerial levers

a

17. Choose the incorrect matching of performance measure to performance category. a. Percent of waste recycled í Quality b. Order quantity accuracy í Customer service c. Inventory turnover í Financial d. Average time between product failures í Quality

a

23. London Limited estimated that its productivity in the year 2013 was 180 packages of cookies per labor hour. In 2014, London estimated its productivity as 145 packages of cookies per labor hour. What is London's productivity growth rate from 2013 to 2014? a. -19.4% b. 35% c. -35% d. 19.4%

a

3. A company that produces products in high volume would most likely be trying to compete on which competitive dimension? a. Cost b. Quality c. Customer Service d. Flexibility

a

34. Which of the following is not a balanced scorecard category? a. Quality b. Financial c. Internal business d. Customer

a

39. Which of the following companies is widely viewed an early user of big data and big data analytics? a. Amazon b. K-Mart c. Schneider National d. American Airlines

a

41. The use of big data and big data analytics is expected to ___________ in the next few years. a. Increase b. Decrease c. Stay approximately the same d. Come to an end

a

5. The use of economies of scale most closely aligns with which competitive dimension? a. Cost b. Quality c. Customer Service d. Time

a

50. A company initiating a recall for a dangerously defective product would most likely be adhering to which business ethics concept? a. Rights and duties b. Utilitarianism c. Rationalism d. Environmentalism

a

61. Sustainability initiatives should lead to ______________ customer service performance. a. Increased b. Decreased c. Unchanged d. Sustainability initiatives are incompatible with customer service performance

a

7. Service recovery is: a. The capability of a company to respond when a product or service fails b. Hiring additional employees in anticipation of seasonal demand c. Selling a product at discount to eliminate excess inventory d. Retaining excess labor capacity to buffer against uncertain demand

a

70. Which of the following would not be considered an element of quality? a. Product color b. Product design c. Product reliability d. Product safety

a

74. Which of the following is not an example of service recovery? a. A discount offered during a time of low demand b. A discount offered on a defective product c. A meal being provided at no cost due to poor quality d. An upgrade to first-class on a flight due to airline delays

a

81. Economies of scale are associated with which of the three competitive priorities? a. Cost b. Quality c. Customer service d. Economies of scale are not associated with any of the three competitive priorities

a

60. This chapter (Chapter 2) notes sustainability initiatives from all of the following companies except? a. Walmart b. Unilever c. Kroger d. Ford

b

63. A high-cost product is typically aligned with which of the following? a. Low levels of customer service b. High levels of quality c. Low levels of quality d. Neither high nor low levels of customer service

b

68. Economies of scale refers to which of the following? a. Seeking out customers that will purchase large quantities b. Purchasing and manufacturing product in high volume c. Mitigating risk by insurance d. Producing low volume product before higher volume product

b

73. Customer service may include all of the following aspects except? a. Flexibility b. Delivery cost c. Product support d. Empathy

b

80. Reliability is associated with which of the three competitive priorities? a. Cost b. Quality c. Customer service d. Reliability is not associated with any of the three competitive priorities

b

85. A customer service-oriented purchasing strategy is likely to do which of the following? a. Purchase from low-cost foreign suppliers b. Purchase from local suppliers c. Use centralized distribution centers d. Buy in bulk

b

87. The ratio of outputs over inputs defines which concept? a. Quality b. Productivity c. Efficiency d. Reliability

b

9. Core competencies are primarily used to: a. Identify appropriate suppliers b. Create competitive advantage c. Select skill sets for prospective employees d. Select appropriate material for students

b

95. Dub Wireless's marketing team spent $750,000 in 2014 to add 12,000 new subscribers. In 2015, Dub spent $865,000 to add 12,500 new subscribers. What was the marketing team's productivity in 2014? a. 0.004 subscribers/$ b. 0.016 subscribers/$ c. 0.014 subscribers/$ d. Cannot be determined from the information given

b

11. High-volume and automated processes most closely align with which combination of operations and firm strategies? a. Facility Location, Customer Service b. Purchasing, Quality c. Process Design, Cost d. Product Design, Quality

c

14. Operations aligned with a high-quality strategy may lead to all of the following except: a. Selection of high-quality suppliers b. Use of certifications such as ISO 9000 c. Increase in customer product returns d. Use of process control and continuous improvement techniques

c

18. Choose the incorrect matching of performance measure to performance category. a. Current ratio í Financial b. Net profit margin í Financial c. Complaint resolution time í Ethics/sustainability d. Percent of suppliers ISO 14000 certified í Ethics/sustainability

c

2. "We will be the easiest pharmacy retailer for customers to use" is an example of an organization's __________. a. Strategy b. Competitive priority c. Mission statement d. Statement of belief

c

20. A company estimates that it spends $1,000 in labor and material costs to produce 2,700 units of product. Calculate the company's productivity ratio (with appropriate units). a. 2.7 $/unit b. 0.37 $/unit c. 2.7 units/$ d. 0.37 units/$

c

25. Brigid Boats is a manufacturer of customized sailboats. In 2013, the company produced 74 boats, in 2014 it built 81 boats, and in 2015 it built 79 boats. The company's cost of labor was $575,000 in 2013, $600,000 in 2014, and $610,000 in 2015. What direction did Brigid's productivity growth rate change from 2013 to 2014 and then from 2014 to 2015? a. Increase and then continue to increase b. Decrease and then increase c. Increase and then decrease d. Decrease and then continue to decrease

c

28. Which of the following is not likely to be a performance measure related to quality? a. Number of warranty claims per unit sold b. Average number of defects per unit c. Units sold d. Average time between product failures

c

30. Which performance measure might be best suited for a services company? a. Earnings per share b. Number of units sold per quarter c. Average number of complaints per customer d. Total amount of greenhouse gas emissions

c

33. The balanced scorecard suggests the use of approximately how many performance measures? a. 5 to 10 b. 10 to 20 c. 20 to 30 d. More than 30

c

38. The collection of large volumes of data in real time or near real time defines: a. Business analytics b. MOOCs c. Big data d. Spreadsheet analytics

c

4. A company that produces products with a wide variety of customization options would most likely be trying to compete on which competitive dimension? a. Cost b. Quality c. Customer Service d. Time

c

42. A key aspect of big data that must be considered is which of the following? a. Access to appropriate algorithms and methods b. Limited availability of data c. Time sensitivity of the data d. Availability of qualified analysts

c

43. Which of the following is not a benefit of the use of big data? a. Ability to more effectively use resources b. Ability to more accurately market to customers c. Ability to rely less on quantitative methods d. Ability to identify recommendations for customers

c

48. Utilitarianism refers to which of the following concepts? a. Ethics are of little importance as long as the action taken is useful to some b. Some actions are simply right, without any regard to the consequences c. An ethical act creates the greatest good for the greatest number of people d. The utility of an action is unimportant

c

53. A chain of coffee shops has recently initiated a purchasing initiative aimed at being more ethical. Which concept would the coffee shop chain likely consider? a. Offshoring b. Cost minimization c. Fair trade d. Use of a maquiladora

c

54. The fair trade concept typically refers to all of the products below except? a. Coffee b. Tea c. Manufactured goods d. Cotton

c

55. Sustainability is broadly defined as: a. Sustaining business efforts by cost cutting and profit seeking b. Seeking out exclusively foreign suppliers c. Doing the right social and environmental things in ways that make economic sense d. Pursuing high quality at the expense of increasing waste

c

59. Traditional operations management strategies have focused on all of the following except? a. Cost b. Customer service c. Sustainability d. Quality

c

64. Which of the following is most likely to be a mismatch? a. High cost and high quality b. High customer service and high cost c. Low cost and high quality d. Low cost and low customer service

c

65. Competing on the basis of cost likely requires all of the following except? a. Use of automation b. Purchasing in high volume c. Providing many customization options to customers d. Producing in large quantities

c

67. Purchasing and manufacturing in high volume to reduce cost per unit is referred to as? a. Economies of size b. Economies of scope c. Economies of scale d. Economies of setup

c

72. Higher quality tends to lead to which of the following? a. Dissatisfied customers b. Higher warranty-associated costs c. Better profit margins d. More defects per unit

c

75. The combination of a firm's long-term goals, plans, and policies is referred to as? a. Strategic outcomes b. Strategic outsourcing c. Strategic planning d. Strategic knowledge

c

77. A mission statement can be? a. Short/simple b. Long/detailed c. Either short/simple or long/detailed d. Neither short/simple nor long/detailed

c

78. How many competitive dimensions are typically considered? a. 1 b. 2 c. 3 d. 4

c

79. Empathy is associated with which of the three competitive priorities? a. Cost b. Quality c. Customer service d. Empathy is not associated with any of the three competitive priorities

c

8. Which of the following is least likely to be a core competency of a fast-food restaurant chain? a. Cost reduction leading to low-cost product b. Inventory control to ensure adequate product availability c. Flexibility to allow customers many customized product offerings d. Quick preparation of product

c

82. Flexibility is associated with which of the three competitive priorities? a. Cost b. Quality c. Customer service d. Flexibility is not associated with any of the three competitive priorities

c

83. The set of decisions made within the operations function to support the overall mission and strategy of the firm are referred to as? a. Strategic plans b. Vision statements c. Operations strategies d. Operations initiatives

c

86. Which is the correct formula for productivity growth rate? Assume that P1 is the productivity in the period before period P2. a. (P1 - P2)/P2 b. (P1 + P2)/P1 c. (P2 - P1)/P1 d. (P1 + P2)/P2

c

89. RTR Incorporated estimated its labor productivity as 120 units per labor $ in 2013. In 2014, its estimated labor productivity was 125 units per labor $. What was RTR's labor productivity growth rate from 2013 to 2014? a. 5% b. -5% c. 4.2% d. -4.2%

c

71. A company can be viewed by different customers as _______________. a. Only of high quality b. Only of low quality c. Only as being of neither high nor low quality d. Either high or low quality (depending on the customer)

d

76. A company answering the questions "Who are we now?" and "What do we want to be?" is likely formulating a? a. Plan b. Project c. Statement d. Strategy

d

84. Which of the following is least likely to be a core competency of a bank? a. Ability to store and secure customers' money b. Ability to provide loans and other financial products c. Ability to provide access to customers' money in a convenient manner d. Ability to provide low-cost access to marketing services

d

88. Productivity is defined as which of the following? a. Profit/Revenue b. Inputs/Outputs c. Assets/Inputs d. Outputs/Inputs

d

91. HSH is a manufacturer of components for a major automotive producer. In 2012, HSH produced 12,000 units. In 2013, the company produced 14,000 units. What was HSH's productivity growth rate from 2012 to 2013? a. Positive b. Negative c. Zero d. Cannot be determined from the information given

d

94. HSH is a manufacturer of components for a major automotive producer. In 2012, HSH produced 12,000 units. In 2013, the company produced 14,000 units. HSH estimated that it spent $1.5 million to produce the units in 2012 and $1.7 million to produce the units in 2013. What was HSH's labor productivity growth rate from 2012 to 2013? a. 2% b. -2% c. -2.9% d. 2.9%

d

98. Dub Wireless's marketing team spent $865,000 in 2015 to add 12,500 new subscribers. If Dub has a marketing budget of $850,000 in 2016, how many subscribers will it need to add to experience a productivity growth rate of 10% from 2015 to 2016? a. 15,312 b. 15,000 c. 13,750 d. 13,511

d

58. People, Profit, and Planet are associated with which concept? a. Three P's of Marketing b. Triple bottom line c. 3PL d. Balanced Scorecard

b

90. RTR Incorporated estimated its labor productivity as 125 units per labor $ in 2013. In 2014, its estimated labor productivity was 145 units per labor $. WDE Incorporated estimated its labor productivity as 125 units per labor $ in 2013 and 120 units per labor $ in 2014. Which company experienced the best labor productivity growth rate? a. RTR b. WDE c. Both have equivalent labor productivity growth d. Cannot calculate from the information given

a

93. HSH is a manufacturer of components for a major automotive producer. In 2012, HSH produced 12,000 units. In 2013, the company produced 14,000 units. HSH estimated that it spent $1.5 million to produce the units in 2012 and $1.7 million to produce the units in 2013. What was HSH's productivity in 2013? a. 8,235 units/million $ b. 2,000 units/million $ c. 8,000 units/million $ d. 0.00013 units/million $

a

97. Dub Wireless's marketing team spent $750,000 in 2014 to add 12,000 new subscribers. In 2015, Dub spent $865,000 to add 12,500 new subscribers. What was the marketing team's productivity growth rate from 2014 to 2015? a. -10.7% b. 10.7% c. 4.2% d. Cannot be determined from the information given

a

1. An organization's strategy is not primarily designed to consider which of the following? a. How the organization intends to provide value to its customers in the future b. How the organization makes decisions on a day-to-day basis c. How the organization intends to compete in the future d. How the organization provides value and competes at present

b

13. Adoption of a low-cost strategy may lead to a decrease in which of the following? a. Volume b. Flexibility c. Customer complaints d. Warranty claims

b

16. A "budget," "no-frills" airline may employ all of the following except: a. Limited aircraft models used b. First-class seating c. Online-only ticket reservations d. No meal offerings

b

19. Productivity is defined as a ratio of __________ over __________. a. Inputs, outputs b. Outputs, inputs c. Inputs, quality d. Quality, inputs

b

22. Riley Inc. estimates that its productivity in the year 2014 was 8 t-shirts per labor hour. In 2015, Riley estimated its productivity as 9 t-shirts per labor hour. What is Riley's productivity growth rate from 2014 to 2015? a. 1% b. 12.5% c. -12.5% d. -1%

b

26. Brigid Boats is a manufacturer of customized sailboats. In 2013, the company produced 74 boats, in 2014 it built 77 boats, and in 2015 it built 79 boats. The company's cost of labor was $575,000 in 2013, $600,000 in 2014, and $610,000 in 2015. What direction did Brigid's productivity growth rate change from 2013 to 2014 and then from 2014 to 2015? a. Increase and then continue to increase b. Decrease and then increase c. Increase and then decrease d. Decrease and then continue to decrease

b

31. Which ISO standard concerns environmental management? a. 9000 b. 14000 c. 15000 d. 16000

b

36. Web-based scorecards are referred to as: a. Snippets b. Dashboards c. Sparklines d. Visual controls

b

40. As of 2014, approximately what percentage of marketing firms indicated that they use big data? a. 10% b. 45% c. 75% d. 90%

b

45. Customer demand for ethical and environmental performance has been and continues to ________. a. Decrease b. Increase c. Stay roughly the same d. Be nonexistent

b

46. Examples of ethical and environmental operations management drivers might include all of the following except? a. The use of ethical and sustainable purchasing policies b. Pursuit of the lowest cost supplier c. Ethical hiring practices d. Recycling and other green manufacturing initiatives

b

49. The rights and duties concept refers to which of the following? a. Ethics are of little importance as long as the action taken is useful to some b. Some actions are simply right, without any regard to the consequences c. An ethical act creates the greatest good for the greatest number of people d. The utility of an action is unimportant

b

52. The fair trade concept is most closely related to which operations management process? a. Inventory management b. Purchasing c. Marketing d. Logistics

b

56. Which of the following is not part of the triple bottom line concept? a. Economic b. Educational c. Social d. Environmental

b

92. HSH is a manufacturer of components for a major automotive producer. In 2012, HSH produced 12,000 units. In 2013, the company produced 14,000 units. HSH estimated that it spent $1.5 million to produce the units in 2012 and $1.7 million to produce the units in 2013. What was HSH's productivity in 2012? a. 8,235 units/million $ b. 2,000 units/million $ c. 8,000 units/million $ d. 0.00013 units/million $

c

96. Dub Wireless's marketing team spent $750,000 in 2014 to add 12,000 new subscribers. In 2015, Dub spent $865,000 to add 12,500 new subscribers. What was the marketing team's productivity in 2015? a. 0.004 subscribers/$ b. 0.016 subscribers/$ c. 0.014 subscribers/$ d. Cannot be determined from the information given

c

99. Companies typically attempt to compete on how many of the three competitive dimensions? a. None b. One c. One or two d. Three

c

12. Innovation and use of new technology most closely align with which combination of operations and firm strategies? a. Process Design, Customer Service b. Purchasing, Cost c. Logistics, Customer Service d. Product Design, Quality

d

15. A strategy with a focus on high levels of customer service may lead to all of the following except: a. Strong warranties and after-sale product support b. Responsive distribution from decentralized facilities c. On-time deliveries d. Lower levels of product customization

d

21. A company estimates that it spends $2,000 in labor costs to produce 450 units of product. Calculate the company's labor productivity ratio (with appropriate units). a. 0.23 labor $/units b. 4.44 labor $/units c. 4.44 units/labor $ d. 0.23 units/labor $

d

24. Initiatives to increase productivity may have which of the following effects? a. Reduced forecasting accuracy b. Increased spending on materials c. Reduced output d. Increased inventory carrying cost

d

27. An increase in output will result in what type of change to productivity? a. Increase b. Decrease c. Productivity will be unchanged d. Depends on changes in input

d

29. Average number of defects per unit would be considered what type of performance measure? a. Supply chain b. Financial c. Customer service d. Quality

d

32. The balanced scorecard uses how many categories? a. 1 b. 2 c. 3 d. 4

d

35. Approximately what percentage of U.S. companies use or have used the balanced scorecard approach? a. 10% b. 25% c. 50% d. 80%

d

37. A company wishing to unify and consolidate its performance measures might consider the use of which approach? a. Total Performance Management b. Statistical Quality Control c. Performance Monitoring d. Balanced Scorecard

d

44. Big data and big data analytics are likely being used in all of the following industries except: a. Agriculture b. Retail c. Cloud-based services d. There are very few industries (if any) that are not using big data and big data analytics in some way

d

47. Which of the following is an approach to deciding whether or not an action is ethical? a. Existentialism b. Rationalism c. Parochialism d. Utilitarianism

d

51. An alternative term for business ethics is? a. EDLP b. Corporate utility theory c. Consumerism d. Corporate social responsibility

d

57. The triple bottom line concept refers to three P's. Which of the following is not one of the P's? a. People b. Profit c. Planet d. Product

d

6. Attempting to compete on the basis of quality will most likely result in which of the following? a. Lower costs b. Lower levels of customer service c. Higher amounts of product returns/warranty claims d. Higher costs

d

62. Which of the following is not one of the three competitive dimensions? a. Cost b. Customer service c. Quality d. Productivity

d

66. The Redbox video rental company employs a competitive model that relies on which combination of competitive priorities? a. Low cost and high customer service b. High cost and low customer service c. Low cost and low quality d. High quality and low customer service

d

69. Which of the following types of companies would most likely rely on economies of scale to reduce cost per unit? a. A neighborhood coffee shop b. A manufacturer of handmade furniture c. A beauty parlor d. A large "big-box" retailer

d

1. An organization's strategic plan addresses how the organization intends to achieve its mission.

t