OM Study questions
17. Which of these is NOT an advantage of outsourcing? a. Cost saving b. Potential creation of future competition c. Gaining outside expertise d. Accessing outside technology
b
7. The economic activities that typically produce an intangible product are referred to as: a. Products b. Services c. Phantoms d. Goods
b
100. Which of the following statements is NOT true regarding the importance of the role that an operations manager plays in addressing service quality? a. The manager may be able to influence the quality of the service but has little control over the customers' expectation. b. Managers must expect exceptions. c. The operations manager should realize that the customer' expectations are the standard against which the service is judged. d. The tangible component of many services is important.
A
95. Which of the following is NOT one of the techniques for building employee empowerment? a. Eliminate formal organization structures such as teams and quality circles b. Develop open, supportive supervisors c. Build communication networks that include employees d. Build high-morale organizations
A
96. Cause and effect diagrams are also known as a. Fish-bone charts b. Target specification graphs c. Pareto charts d. Flowcharts
A
97. A device or technique that ensures production of a good unit every time is a a. Poka-yoke b. Control chart c. Fail-safe d. Zero defect
A
99. Which of the following determinants of service quality means the firm performs the service right the first time and that the firm honors its promises? a. reliability b. responsiveness c. competence d. credibility
A
91. Which of the following DOES NOT increase profit by improving quality? a. Flexible pricing b. Higher warranty costs c. Increased productivity d. Improved reputation
B
92. The American Society for Quality defines quality as a. The degree of excellence at an acceptable price and the control of variability at an acceptable cost. b. The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs. c. even though it cannot be defined, you know what it is. d. how well a product fits patterns of consumer preferences.
B
94. Which of the following is the Japanese term used to determine continuous improvement efforts? a. Poka-yoke b. Kaizen c. Six sigma d. Kanban
B
87. With a probabilistic model, increasing the service level a. Will have no impact on the cost of the inventory policy b. Will decrease the level of safety stock c. Will increase the cost of the inventory policy d. Will reduce the cost of the inventory policy
C
88. A single-period inventory model is NOT applicable for a. Seasonal goods b. Milk c. Furniture d. Newspapers
C
89. In the single-period inventory model, the overage cost is a. Cost per unit - sales price per unit b. Sales price per unit - cost per unit c. Cost per unit - salvage value per unit d. Salvage per unit
C
90. Managing quality helps build successful strategies of a. Differentiation, low cost and service b. Differentiation, time and response c. Differentiation, low cost and response d. Differentiation, time and service
C
93. Which of the following is NOT a cost of quality? a. Lost goodwill b. Scrap c. Research and development d. Rework
C
98. Inspections should NOT take place a. At your suppliers plant while the supplier is producing b. At your facility upon receipt of goods from your supplier c. After costly or irreversible processes d. During the step-by-step production process
C
12. Which of the following is NOT a reason why domestic business operations decide to change to some form of international operation? a. Attract and retain local talent b. Improve operations c. Improve products d. Improve the supply chain
a
2. Which of the following at an airline is NOT an operations activity? a. Sales b. Catering c. Crew scheduling d. Flying
a
25. How is EF computed? a. ES + activity time b. MAX{EF of all immediate predecessors} c. LF-activity time d. MIN{LS of all immediate following activities}
a
30. What is the most popular example of specialized software for managing projects? a. Microsoft project b. Project apple c. PERT/CPM+ d. Microsoft management tool
a
33. CPFR is a. Collaborative, planning, forecasting, and replenishment b. Complete, partner, forecasting, and replenishment c. Complete, planning, forecasting, and replenishment d. Collaborative, partner, forecasting, and replenishment
a
34. Which of the following is the FIRST step in a forecasting system? a. Determine the use of the forecast b. Select the forecast model(s) c. Select the items to be forecasted d. Determine the time horizon of the forecast
a
37. What is a data pattern that repeats itself after a period of days, weeks, months, or quarters? a. Seasonality b. Random variation c. Trend d. Cycle
a
40. 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
a
44. What is analysis that focuses on the ways in which processes can be designed to optimize interaction between firms and their customers? a. Process-chain-network analysis b. Value engineering c. Value analysis d. Product-by-value analysis
a
46. Self-checkout at a grocery store is an example of a. Customer participation in service delivery b. Customer participation in service design c. Delayed customization d. Complete automation
a
47. Which of the following is NOT true regarding social responsibility? a. Corporate social responsibility only requires firms to focus on environmentally friendly product disposal. b. Companies that practice corporate social responsibility introduce policies that consider environmental, societal, and financial impacts in their decision making. c. The operations function plays a profound role in meeting corporate social responsibility. d. Corporate social responsibility means "doing what's right" and doing it properly, which can be beneficial to all stakeholders.
a
5. A large percentage of the revenue of most firms is spent on which function? a. Operations b. Finance c. Research and development d. Marketing
a
53. What is the ability to respond with the little penalty in time, cost, or customer value? a. Flexibility b. Mass customization c. Repetitive process d. Postponement
a
62. What is transferring firm's activities that have traditionally been internal to external suppliers? a. Outsourcing b. Vertical integration c. Make-or-buy d. Keiretsu network
a
66. Which negotiation strategy bases price on a published, auction, or index price? a. Market-based price model b. Competitive bidding c. Cost-based price model d. Supply-based price model
a
72. Which of the following is NOT true about the bullwhip effect? a. The bullwhip effect can occur only when orders increase b. The bullwhip effect describes the tendency for larger order size fluctuations as orders are relayed to the supply chain from retailers. c. "Bullwhip" fluctuations create unstable production schedules, resulting in expensive capacity change adjustments. d. Channel coordination means determining lot sizes as though the full supply chain was one company.
a
78. Which of the following is NOT a valid principle of bottleneck management? a. Increasing the capacity of a non-bottleneck station increases the capacity for the whole system b. Lost time at the bottleneck represents lost capacity for the whole system c. Increasing the capacity of a non-bottleneck station is a mirage d. Release work orders to the system at the pace set by the bottleneck's capacity
a
80. Which of the following is NOT a type of inventory? a. MRP b. Finished goods c. Work-in-process d. Raw material
a
85. For seasonal products, the service level should be set to equal a. Shortage cost/ (overage cost + shortage cost) b. Overage cost/ (overage cost + shortage cost) c. Overage cost/ (overage cost - shortage cost) d. Shortage cost/ (overage cost - shortage cost)
a
1. Which of the following tasks would not typically represent an operations management activity at Hard Rock Café? a. preparing an employee schedule b. filing a tax return c. receiving a shipment of incoming food ingredients d. designing an efficient layout
b
10. What is the goal for mass customization? a. The goal is to seek creative designs, efficient production, and high-quality goods via international collaboration. b. The goal is to enrich jobs and move more decision making to the individual contributor c. The goal is to let operations managers work with their supply chain to viciously cut inventories at every level d. The goal is to produce customized products, whenever and wherever needed
b
11. The stated purposed of nafta is to: a. Gain membership in the WTO b. Phase out all trade and tariff barriers among Canada, mexico, and the U.S. c. Increase product innovation in the wireless communication sector d. Reduce the outsourcing of jobs to foreign countries
b
18. An international business is a firm that a. Hires non-US citizens b. Engages in international trade or investment c. Produces a wide range of products d. Is not from the united states
b
22. Gantt charts are a. Widely used network techniques b. Planning charts used to schedule resources and allocate time c. Not widely used d. Not easy to understand
b
28. Which of the following is a limitation of PERT and CPM? a. The graphical nature of a network delays comprehension of the activity list's interrelationships b. There is the inherent danger of placing too much emphasis on the critical path c. They can be used only to monitor schedules d. They are applicable to only a narrow variety of projects and industries
b
29. Among the following, critical path and slack time analysis most help a. Highlight relationships among project activities b. Pinpoint activities that need to be closely watched c. Point out who is responsible for various activities d. Managers define the project activities
b
31. The forecasting time horizon that would typically be easiest to predict for would be the a. Intermediate range b. Short range c. Medium range d. Long range
b
32. A forecast that projects a company's sales is a. An economic forecast b. A demand forecast c. A technological forecast d. An environmental forecast
b
35. Which of the following is a quantitative forecast method? a. Market survey b. Exponential smoothing c. Sales force composite d. Jury of executive opinion
b
39. When using exponential smoothing, the smoothing constant a. Is typically between .75 and .95 for most business applications b. Can determined using MAD c. Should be chosen to maximize positive basis d. Indicates the accuracy of the previous forecast
b
41. 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. CAD d. Robust design
b
43. Which of the following is an external product development strategy? a. New internally developed products b. Joint ventures c. Enhancements to existing products d. Migrations of existing products
b
48. What are the three Ps in the triple bottom line of the three Ps? a. Product, planet, and profit b. People, planet, and profit c. People, planet, and product d. People, product, and profit
b
50. What is the most critical phase in the product life cycle assessment? a. Product disposal b. Product design c. Production process d. Logistics
b
51. Which of the following is NOT one of the advantages of ISO 14000? a. Compliance with regulatory requirements and opportunities for competitive advantage b. Positive public image and increased exposure to liability c. good systematic approach to pollution prevention through minimization of ecological impact of products and activities d. reduction in the need for multiple audits
b
52. Low-volume, high-variety production is best suited for which of the following process strategies? a. Product focus b. Process focus c. Mass customization d. Repetitive focus
b
54. What is a drawing of the movement of material, product or people? a. AIS b. Flowchart c. RFID d. Process chart
b
56. A fast food restaurant is an example of a. Low customization and high degree of labor b. Low customization and low degree of labor c. High customization and high degree of labor d. High customization and low degree of labor
b
57. Break-even analysis for the single-product case required an estimation of fixed costs, variable costs and a. Price b. The percent of total dollar sales for each product c. Revenue d. Price, along with the percent of total dollar sales for each product
b
58. Which of the following is a possible option to employ when demand exceeds capacity? a. Increase advertising expenditures b. Schedule long lead times c. Temporarily lay-off workers d. Lower prices
b
63. The advantage of having few suppliers is to a. Take advantage of diseconomies of scale b. Form a long-term relationship c. Pursue low cost d. Look for short-term attributes
b
65. what is a long term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship? a. Drop shipping b. Blanket order c. Postponement d. Advanced shipping notice
b
68. Three common measures of supply chain performance are: a. Debt/equity ratio, inventory turnover, and weeks of supply b. Percentage invested in inventory, inventory turnover, and weeks of supply c. Percentage invested in inventory, inventory turnover, and debt/equity ratio d. Percentage invested in inventory, debt/equity ratio, and weeks of supply
b
71. Which of the following is NOT one of the major causes of the bullwhip effect? a. Demand forecast errors b. Shared demand information c. Price fluctuations d. Order batching
b
75. Which of the following statements is NOT generally an implication stemming from an increase in the number of facilities? a. Quicker response b. Decreased total logistics cost c. Increased customer satisfaction d. Increased facility costs
b
76. Which of the following is NOT true about reverse logistics as compared to forward logistics? a. Pricing is dependent on many factors b. Speed is often very important c. Forecasting is more uncertain d. Distribution costs are less directly visible
b
82. Which of the following does NOT belong to ordering costs? a. Ordering processing b. Interest payments c. Cost of supplies d. Clerical support
b
9. Productivity increases when a. Inputs increase while outputs remain the same b. Inputs decrease while outputs remain the same c. Inputs and outputs increase proportionately d. Outputs decrease while inputs remain the same
b
14. Which of the following is the purpose or rationale for an organization's existence? a. Charter b. Articles of incorporation c. Mission d. Strategy
c
15. Which of the following is NOT an OM strategy/issue during the growth stage of the product life cycle? a. Forecasting critical b. Shift towards product focus c. Reduce capacity d. Enhance distribution
c
16. SWOT analysis is refers to a. Support, opportunities, weaknesses, and threats b. Strengths, opponents, weaknesses, and threats c. Strengths, opportunities, weaknesses, and threats d. Support, opponents, weaknesses, and threats
c
19. Which of the following international operations strategies uses decentralized authority with substantial autonomy at each business? a. International b. Transnational c. Multidomestic d. Global
c
20. The three phases involved in the management of large projects are a. Planning, scheduling, and evaluating b. Scheduling, operating, and evaluating c. Planning, scheduling, and controlling d. Scheduling, designing, and operating
c
23. Which of the following is NOT part of project controlling? a. Using feedback loop to revise the project plan b. Close monitoring of resources, costs, quality, and budgets c. Sequencing and allotting time to all project activities d. Shifting resources to where they are needed most
c
26. Which of these time estimates is NOT used in PERT? a. Optimistic time b. Pessimistic time c. Standard time d. Most likely time
c
27. What is the shortest duration required to complete an activity? a. Most likely time b. Optimistic time c. Crash time d. Pessimistic time
c
36. Which forecasting model is based upon salespersons' estimates of expected sales? a. Delphi method b. Jury of executive opinion c. Sales force composite d. Market survey
c
38. Which one of the following statements is NOT true about the forecasting in the service sector? a. Forecasting in the service sector presents some unusual challenges b. Demand patterns are often different from those in non-service sectors c. Detailed forecasts of demand are not needed d. Hourly demand forecasts may be necessary
c
4. Competition in the 21st century is no longer between companies; its between: a. Technologies b. Individuals c. Supply chains d. Countries
c
42. Which of the following technologies is particularly useful for prototype development and small lot production? a. STEP b. CAM c. 3-D printing d. CAD
c
45. What is an umbrella of software programs that may include CAD/CAM, product routing, maintenance, and other product concerns? a. DFMA b. Material requirements planning c. Product-life-cycle management d. Configuration management
c
49. The 3Rs for sustainability are a. Reduce, reuse, and reputation b. Reputation, reuse, and recycle c. Reduce, reuse, and recycle d. Reduce, reputation, and recycle
c
55. Which of the quadrants in the service process matrix has low labor intensity and low customization? a. Service shop b. Mass service c. Service factory d. Professional service
c
60. Which of the following products is most likely made in a job shop environment? a. Cigarettes b. Rolls of newsprint c. Custom furniture d. Canned vegetables e. Television sets
c
61. Supply chain ends with a. Suppliers b. Distributors c. A satisfied customer d. Manufacturers
c
64. What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor? a. horizontal integration b. outsourcing c. vertical integration d. virtual companies
c
67. Trucking a. Is the least used transportation mode for manufacturing goods b. Does not play a role in multimodal shipping c. Is increasingly using computers to manage its operations d. Is one of the least flexible transportation modes
c
69. Which of the following is NOT a remedy for the bullwhip effect? a. Channel coordination b. Information sharing c. Allocate orders based on forecasts d. Price stabilization
c
70. Which of the following is TRUE regarding the bullwhip effect measure? a. A smoothing or dampening scenario exists as orders move up the supply chain towards suppliers if the bullwhip measure is greater than one. b. No amplification is present if the bullwhip measure is equal to zero. c. Variance amplification is present if the bullwhip measure is greater than one. d. Variance amplification is present if the bullwhip measure is greater than zero.
c
74. Supply chain managers outsource logistics to meet three goals: a. lower delivery costs, improve delivery reliability and speed, and provide better market response. b. drive down inventory investment, improve delivery reliability and speed, and provide better market response. c. drive down inventory investment, lower delivery costs, and improve delivery reliability and speed. d. drive down inventory investment, lower delivery costs, and provide better market response.
c
77. What is the time of the slowest workstation in a product system? a. Throughput time b. Effective capacity c. Bottleneck time d. Utilization
c
79. One use of inventory is a. To tightly synchronize a firm's production with its customer's demand b. To tightly synchronize production and distribution processes c. To provide a hedge against inflation d. To ensure that item cost is maximized
c
81. ABC analysis divides an organizations on hand inventory into three classes based upon a. The number of units on hand b. Unit price c. Annual dollar volume d. Annual demand
c
84. What is the system for ordering items that have little or no value at the end of a sales period? a. ROP b. EOQ c. Single-period inventory model d. Production order quantity model
c
86. Extra units that are held in inventory to reduce stockouts are called a. Just-in-time inventory b. Reorder point c. Safety stock d. Demand variance
c
13. A strategy is a. The purpose for which an organization is established b. Established prior to establishing a mission c. A functional area of the firm d. An action plan to achieve a mission
d
21. Which of the following does NOT belong to the planning phase of project management? a. Defining the project b. Goal setting c. Team organization d. Monitoring resources
d
24. The critical path of a network is the a. Shortest time path through the network b. Path with the most activities c. Path with the fewest activities d. Longest time path through the network
d
3. A global network of organizations and activities that supply a firm with goods and services is referred to as: a. Production b. Business functions c. Operations management d. A supply chain
d
59. A product-focused process is commonly used to produce: a. High-volume products of either high-or low-variety b. Low-volume, high-variety products c. High-volume, high-variety products d. High-volume, low variety products e. Low-variety products at either high- or low-volume
d
6. 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. Human resources and job design b. Design of goods and services c. Managing quality d. Process and capacity design
d
73. The advantage of having many potential suppliers is their willingness to a. Participate in JIT b. Provide technical expertise c. Provide innovations d. Offer lower prices in the short term
d
8. Which of the following organizations does NOT belong to the service sector? a. Southwest airlines b. Costco c. San diego zoo d. Ford Motor company
d
83. A statistical model applicable when product demand or any other variable is not known but can be specified by means of a probability distribution is referred as a. A quantity discount model b. The EOQ c. A robust model d. A probabilistic model
d
