sup chain 1

Break-even analysis for the​ single-product case requires an estimation of fixed​ costs, variable​ costs, and: A. revenue. B. the percent of total dollar sales for each product. C. price. D. price, along with the percent of total dollar sales for each product.

A revenue

The person who introduced​ standardized, interchangeable parts was A. Eli Whitney. B. W. Edwards Deming. C. Frederick W. Taylor. D. Henry Ford.

A. Eli Whitney

The person who believed that management must do more to improve the work environment and processes so that quality can be improved was A. W. Edwards Deming. B. Walter Shewhart. C. Henry Ford. D. Eli Whitney.

A. W. Edwards Deming

Which of the following statements is NOT​ true? A. Adding flexibility to the production process can be a major competitive advantage. Building flexibility into a production process is usually​ inexpensive, but difficult. B. Selection of a particular process strategy requires decisions about equipment and technology. C. Selecting the best equipment requires understanding the specific industry and available processes and technology. D. The selection of equipment requires considering​ cost, cash​ flow, market​ stability, quality,​ capacity, and flexibility.

A. adding flexibility to the production process can be a major competitive advantage. building flexibility into a production process is usually inexpensive but difficult

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

A. between 80-90%

The difference between selling price and variable cost is called: A. contribution. B. the bottleneck. C. fixed cost. D. the​ break-even point.

A. contribution

In​ manufacturing, excess capacity can be used to: A. do more​ setups, shorten production​ runs, and drive down inventory costs. B. do fewer​ setups, lengthen production​ runs, and drive down inventory costs. C. do fewer​ setups, shorten production​ runs, and drive down inventory costs. D. do more​ setups, lengthen production​ runs, and drive down inventory costs.

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

When making investment decisions using the net present value​ method, managers need to choose the investments with: A. higher net present values. B. higher revenues. C. lower costs. D. lower net present values.

A. higher net present values

Which of the following DOES NOT increase profit by improving​ quality? A. higher warranty costs B. improved reputation C. flexible pricing D. increased productivity

A. higher warranty costs

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

A. increases

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

A. inputs decrease while outputs remain the same

Which of the following approaches may use subcontracting to accommodate excess​ demand? A. lagging demand with incremental expansion B. Subcontracting should never be used to accommodate excess demand. C. leading demand with a​ one-step expansion D. leading demand with incremental expansion

A. lagging demand with incremental expansion

Which of the following approaches may use subcontracting to accommodate excess​ demand? Part 2 A. lagging demand with incremental expansion B. Subcontracting should never be used to accommodate excess demand. C. leading demand with a​ one-step expansion D. leading demand with incremental expansion

A. lagging demand with incremental expansion

Taguchi's quality loss function is based on a: A. quadratic equation. B. negative exponential distribution. C. binomial distribution. D. linear equation.

A. quadratic equation

Which of these statements accurately captures a current trend in​ operations? A. Rapid product development. B. Jobs are increasingly specialized as workers focus on basic assembly tasks. C. There is increased focus on local market and local competition. D. Mass production at the expense of product variety.

A. rapid product development

Which of the following costs is NOT a cost of​ quality? A. research and development B. lost goodwill C. scrap D. rework

A. research and development

Which of the following activities at an airline is NOT an operations​ activity? A. sales B. flying C. crew scheduling D. catering

A. sales

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

A. the provider of basic raw materials

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

A. we want to understand what marketing managers do

What is an electronically guided and controlled cart used to move​ materials? A. AIS B. AGV C. RFID D. CNC

B. AGV

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

B. Ford Motor Company

The father of scientific management is A. Eli Whitney. B. Frederick W. Taylor. C. Henry L. Gantt. D. Henry Ford.

B. Fredrick W. Taylor

A process focus is: A. organized around products. B. a production facility organized around specific activities. C. a​ rapid, low-cost production system that caters to constantly changing unique customer desires. D. based on the classical assembly line.

B. a production facility organized around specific activities

Efficiency is given by: A. actual output divided by design capacity. B. actual output divided by effective capacity. C. design capacity divided by utilization. D. effective capacity divided by actual output.

B. actual output dividend by effective capacity

An investment that generates a series of uniform and equal cash amounts is referred as: A. future value. B. an annuity. C. net present value. D. cash flow.

B. an annuity

A successful quality strategy begins with: A. engaging employees in the necessary activities to implement quality. B. an organizational culture that fosters quality. C. an understanding of the principles of quality. D. satisfying customers and obtaining a competitive advantage.

B. an organizational culture that fosters quality

What is the time of the slowest workstation in a production​ system? A. effective capacity B. bottleneck time C. utilization D. throughput time

B. bottleneck time

What is a means of determining throughput capacity of workstations or an entire production​ system? A. throughput analysis B. capacity analysis C. theory of constraints D. effective capacity

B. capacity analysis

What is a drawing of the movement of​ material, product or​ people? A. RFID B. flowchart C. AIS D. process chart

B. flowchart

Which of the following is NOT a valid principle of bottleneck​ management? A. Release work orders to the system at the pace set by the​ bottleneck's capacity. B. Increasing the capacity of a​ non-bottleneck station increases the capacity for the whole system. C. Lost time at the bottleneck represents lost capacity for the whole system. D. Increasing the capacity of a​ non-bottleneck station is a mirage.

B. increasing the capacity of a non-bottleneck station increases the capacity of the whole system

Which of the following is NOT one of the factors that fosters specialization and worldwide supply​ chains? A. specialized expert knowledge B. marketing. C. instant communication D. cheaper transportation

B. marketing

What is a means of determining the discounted value of a series of future cash​ receipts? A. future value B. net present value C. cash flow D. variable cost

B. net present value

Which of the following is NOT a limitation of the net present value​ approach? A. Investments with the same net present value may have significantly different projected lives and different salvage values. B. Payments are assumed to be made at the beginning of the​ period, which is not always the case. C. The assumption is that we know future interest​ rates, which we do not. D. Investments with the same net present value may have different cash flows.

B. payments are assumed to be made at the beginning of the period, which is not always the case

What is a flowchart with time added on the horizontal​ axis? A. process chart B. process mapping C. CNC D. service blueprinting

B. process mapping

Which of the following is NOT an external failure​ cost? A. returned goods B. scrap C. lost goodwill D. costs to society

B. scrap

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

B. services

The multiproduct case of determining the​ break-even point in dollars weights what by each​ product's proportion of​ sales? A. the fixed cost attributable to each product B. the contribution of each product C. the selling price of each product D. the variable cost of each product

B. the contribution of each product

The American Society for Quality defines quality as: A. how well a product fits patterns of consumer preferences. B. the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs. C. the degree of excellence at an acceptable price and the control of variability at an acceptable cost. D. even though it cannot be​ defined, you know what it is.

B. the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs

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

B. transplanting a liver

In many​ applications, human quality inspectors can be replaced effectively by: A. RFID tags. B. vision systems. C. automated storage and retrieval systems. D. FMS.

B. vision systems

What is the theoretical maximum output of a system in a given period under ideal​ conditions? A. effective capacity B. utilization C. design capacity D. efficiency

C design capacity

Stacked Restaurants lets customers choose ingredients for their sandwhiches using: A. playing cards. B. a moving conveyor belt. C. an iPad menu. D. a telephone at the table.

C. an iPad menu

Which of the following activities at a commercial bank is NOT an operations​ activity? A. check clearing B. maintenance C. auditing D. security

C. auditing

Which of the following is NOT considered to be a​ stakeholder? A. distributors B. community members C. competitors D. customers

C. competitors

Managing quality helps build successful strategies of: A. differentiation, time and response. B. differentiation, low cost and service. C. differentiation, low cost and response. D. differentiation, time and service.

C. differentiation, low cost and response

What does EMV stand​ for? A. expected machine valuation B. expected maintenance volume C. expected monetary value D. enterprise management valuation

C. expected monetary value

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

C. filing a tax return

What is the ability to respond with little penalty in​ time, cost, or customer​ value? A. repetitive process B. mass customization C. flexibility D. postponement

C. flexibility

Which of the following statements is NOT true regarding production​ technologies? A. Robots are mechanical devices that use electronic impulses to activate motors and switches. B. Vision systems combine video cameras and computer technology and are often used in inspection roles. C. Flexible manufacturing systems and​ computer-integrated manufacturing are increasing the distinction between​ low-volume/high-variety and ​high-volume/low-variety production. D. CNC is machinery with its own computer and memory

C. flexible manufacturing systems and computer-integrated manufacturing are increasing the distinction between low-volume/high-variety and high-volume/low-variety production

When using EMV for capacity planning​ situations, the state of nature usually is: A. level of inflation or interest rates. B. average temperature or average rainfall. C. future demand or market favorability. D. wage rates or equipment costs.

C. future demand or market favorability

Which of the following could reduce costs and increase​ profit? A. improved response B. flexible pricing C. increased productivity D. improved reputation

C. increased productivity

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

C. industrial design

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

C. inspecting

Which of the following is NOT one of the reasons operations managers want to work with their supply chains to viciously cut inventories at every​ level? A. Inventory constrains response to​ ever-shorter product life cycles. B. Inventory hides quality issues. C. Inventory provides safety against​ higher-than expected demand. D. Inventory requires financial resources.

C. inventory provides safety against higher-than expected demand

Which of the following is the Japanese term used to describe continuous improvement​ efforts? A. kanban B. six sigma C. kaizen D. poka-yoke

C. kaizen

Which of the following approaches makes new capacity a larger increase at the beginning of the​ period? A. lagging demand with incremental expansion B. leading demand with incremental expansion C. leading demand with a​ one-step expansion D. attempts to have an average capacity that straddles demand with incremental expansion

C. leading demand with incremental expansion

The most aggressive and risky approach to capacity planning is: A. attempts to have an average capacity that straddles demand with incremental expansion. B. lagging demand with incremental expansion. C. leading demand with​ one-step expansion. D. leading demand with incremental expansion.

C. leading demand with one-step expansion

Which of the following trends is NOT part of the exciting OM challenges currently facing operations​ managers? A. sustainability B. rapid product development C. local focus D. supply chain partnering

C. local focus

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

C. process and capacity design

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

C. process focus

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

C. product focus

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

C. production

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. research and development

Which of the following is a possible option to employ when demand exceeds capacity? A. temporarily lay-off workers B. increase advertising expenditures C. schedule long lead times D. lower prices

C. schedule long lead times

Which of the following does NOT contribute to​ OM? A. other disciplines including industrial​ engineering, statistics,​ management, and economics B. innovations from physical sciences C. unsystematic processing of data D. information technology

C. unsystematic processing of data

Which of the following is an award for quality achievement in​ Japan? A. Tokyo Medal for Excellence in Quality B. Malcolm Baldrige National Quality Award C. ISO 9000 D. Deming Prize

D. Deming Prize

Which of the following is NOT a tool for process analysis and​ design? A. process mapping B. process chart C. flowchart D. Pareto chart

D. Pareto chart

Which of the following is NOT an example of​ technology's impact on the financial services industry? A. Internet stock trading B. debit cards C. electronic funds transfer D. RFID

D. RFID

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

D. a supply chain

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

D. advertising

Which of the following is true regarding the concept of​ flexibility? A. It is the ability to respond with little penalty in​ time, cost, or customer value. B. It may be accomplished with digitally controlled equipment. C. It may involve modular or movable equipment. D. All of the above are true. E. None of the above is true.

D. all the above are true

Which of the following is an example of​ technology's impact on​ wholesale/retail trade​ industry? A. automatic toll booths B. interactive TV C. automatic teller machines D. bar-coded data

D. bar-coded data

What is a means of finding the​ point, in dollars and​ units, at which costs equal​ revenues? A. zero-sum analysis B. bottleneck analysis C. capacity analysis D. break-even analysis

D. break-even analysis

Which of the following best defines​ scheduling? A. Determines and implements​ long- and​ short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands. B. Determines and implements​ intermediate- and​ short-term schedules that effectively and efficiently utilize personnel while meeting customer demands. C. Determines and implements​ long- and​ short-term schedules that effectively and efficiently utilize personnel while meeting customer demands. D. Determines and implements​ intermediate- and​ short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands.

D. determines and implements intermediate- and short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands

To develop a standard or​ benchmark, firms need to start with: A. forming a benchmark team. B. collecting benchmarking information. C. identifying benchmarking partners. D. determining what to benchmark.

D. determining what to benchmark

Which of the following is NOT one of the techniques for building employee​ empowerment? A. Build​ high-morale organizations. B. Develop​ open, supportive supervisors. C. Build communication networks that include employees. D. Eliminate formal organization structures such as teams and quality circles.

D. eliminate formal organization structures such as teams and quality circles

Which of the following is NOT among the ethical and social challenges facing operations​ managers? A. training, retaining, and motivating employees B. providing a safe workplace C. efficiently developing and producing safe​ high-quality green products D. increasing executive pay E. honoring stakeholder commitments

D. increasing executive pay

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

D. marketing

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

D. mass customization

What is the typical goal of applying EMV to capacity​ decisions? A. Identify the most likely state of nature. B. Identify the least risky alternative. C. Identify the alternative with the highest potential payoff. D. Maximize the expected value of the alternatives.

D. maximize the expected value of the alternatives

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

D. operations

What is the fundamental rethinking of business processes to bring about dramatic improvements in​ performance? A. process strategy B. process analysis C. process design D. process redesign

D. process redesign

Which of the following statements is NOT true regarding process​ redesign? A. Effective process redesign works only if the basic process and its objectives are reexamined. B. Process redesign is also called process reengineering. C. Process redesign also focuses on those activities that cross functional lines. D. Process redesign is also called process reinvention.

D. process redesign is also called process reinvention

Which of the following is the fourth step in the theory of​ constraints? A. Develop a plan for overcoming the identified constraints. B. Focus resources on accomplishing the plan. C. When one set of constraints is​ overcome, go back and identify new constraints. D. Reduce the effects of the constraints by offloading work or by expanding capability.

D. reduce the effects of the constraints by offloading work or by expanding capability

Which of the following is NOT a production technology that enhances production and​ productivity? A. automatic identification systems B. process control C. vision systems D. service blueprinting

D. service blueprinting

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

D. standardized product

Which of the following capacity adjustment options applies to​ intermediate-range planning? A. add long lead time equipment B. schedule personnel C. allocate machinery D. subcontract

D. subcontract

Competition in the 21st century is no longer between​ companies; it is between: A. countries. B. individuals. C. technologies. D. supply chains.

D. supply chains

What is the goal for mass​ customization? A. The goal is to let operations managers work with their supply chain to viciously cut inventories at every level. B. The goal is to seek creative​ designs, efficient​ production, and​ high-quality goods via international collaboration. C. The goal is to enrich jobs and move more decision making to the individual contributor. D. The goal is to produce customized​ products, whenever and wherever needed.

D. the goal is to produce customized products, whenever and wherever needed

Which of the following is a requirement to be able to compute expected monetary​ value? A. each decision alternative needs at least two states of nature B. each state of nature is equally likely to occur C. the probability of each decision alternative is known D. the probability of each state of nature is known

D. the probability of each state of nature is known

Which of the following statements is NOT true regarding the process analysis​ tools? A. Service blueprinting is designed to help focus on the customer interaction part of the process. B. Process mapping is another name for​ time-function mapping. C. A process chart is different than a flowchart. D. Time-function mapping extends​ value-stream mapping to include suppliers.

D. time-function mapping extends value-stream mapping to include suppliers

A​ business's stakeholders, whose conflicting perspectives cause ethical and social​ dilemmas, include: A. employees. B. suppliers. C. owners. D. lenders. E. All of the above.

E. all the above

Process​ redesign: A. is the fundamental rethinking of business processes. B. is sometimes called process reengineering. C. often focuses on activities that cross functional lines. D. tries to bring about dramatic improvements in performance. E. All of the above.

E. all the above

Advances in​ technology: A. have failed to change the level of customer interaction with an organization. B. have had only a limited impact on services. C. have impacted the manufacturing sector only. D. have dramatically changed health​ care, but have not changed retailing. E. have had a dramatic impact on customer interaction with services and with products.

E. have had a dramatic impact on customer interaction with services and with products

Successful process redesign focuses on departmental areas where​ small, continuous improvements can be made. True/False

False

Ethical and social dilemmas arise because stakeholders of a business have conflicting perspectives. True/False

T

Optical checkout scanners and ATMs are examples of​ technology's impact on services. True/False

T

What term is given to those individuals with a vested interest in an​ organization, including​ customers, distributors,​ suppliers, owners,​ lenders, employees, and community​ members? A. investors B. stakeholders C. alumni D. stockholders E. vestors

b. stakeholders

Production technology has had a major impact on​ services, but as yet there has been little reduction in service labor requirements. true/false

false

When selecting new equipment and​ technology, decision makers look for flexibility—the ability to respond with little penalty in​ time, cost, or customer value. True/False

t