OPIM 3104
What is the term for a company that relies on a variety of supplier relationships to provide services on demand? A. Virtual company Your answer is correct. B. Kanban company C. Keiretsu network D. Integrated network
A. Virtual company
A supply chain ends with A. a satisfied customer. Your answer is correct. B. suppliers. C. distributors. D. manufacturers.
A. a satisfied customer.
Competing on cost is A. achieving maximum value as perceived by the customer. Your answer is correct. B. based upon flexibility. C. concerned with reliability of scheduling. D. concerned with uniqueness.
A. achieving maximum value as perceived by the customer.
Which of the following does not represent competing on response? A. concerned with reliability of scheduling B. based on providing uniqueness Your answer is correct. C. based on flexibility D. based on quickness
B. based on providing uniqueness
The service sector constitutes what percentage of employment in the United States? Part 2 A. between 60% to 70% B. between 80% to 90% Your answer is correct. C. between 50% to 60% D. between 70% to 80%
B. between 80% to 90%
What decision tree symbol represents a state-of-nature node? A. square B. circle Your answer is correct. C. triangle D. trapezoid
B. circle
What term refers to the location of competing companies near each other? A. neighboring B. clustering Your answer is correct. C. battling D. centralizing
B. clustering
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 Your answer is correct. B. improve the supply chain C. improve products D. improve operations
A. attract and retain local talent
What is a long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship? A. blanket order Your answer is correct. B. drop shipping C. advanced shipping notice D. postponement
A. blanket order
What is the average return under complete certainty? A. expected value with perfect information Your answer is correct. B. expected monetary value C. expected value of perfect information D. maximum expected monetary value
A. expected value with perfect information
Which of these is NOT a disadvantage of outsourcing? A. risks may not manifest themselves for years B. loss of control C. decreased logistics and inventory costs Your answer is correct. D. negative impact on employees
C. decreased logistics and inventory costs
A global network of organizations and activities that supply a firm with goods and services is referred to as A. business functions. B. operations management. C. production. D. a supply chain.
D. a supply chain.
The creation of a unique advantage over competitors is referred as A. experience differentiation. B. differentiation. C. response. D. competitive advantage.
D. competitive advantage.
Within decision theory, which of the following is NOT one of the three decision-making environments? A. decision making under risk B. decision making under certainty C. decision making under uncertainty D. decision making under pressure
D. decision making under pressure
The advantage of having few suppliers is to A. pursue low cost. B. take advantage of diseconomies of scale. C. look for short-term attributes. D. form a long-term relationship.
D. form a long-term relationship.
The text presents which two analytic tools to help with decision making? A. decision networks and decision trees B. decision networks and decision derivations C. decision tables and decision trees Your answer is correct. D. decision tables and decision networks
C. decision tables and decision trees
Which of the following statements is NOT true? A. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting. Your answer is correct. B. Supply chain management describes the coordination of all supply chain activities, starting with raw materials, and ending with a satisfied customer. C. The objective of supply chain management is to coordinate activities within the supply chain to maximize the supply chain's competitive advantage and benefits to the ultimate consumer. D. A supply chain includes suppliers; manufacturers and/or service providers; and distributors, wholesalers, and/or retailers who deliver the product and/or service to the final customer.
A. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.
Select all of the correct impacts the changes in laptop computer design that builds in wireless technology might have on OM strategy below. (Check all that apply.) A. Capital investment is added for new equipment or processes. Your answer is correct. B. Inventory needs to be revised. Your answer is correct. C. The manufacturing process stabilizes. D. Quality standards need to be revised. Your answer is correct. E. The OM function focuses on more standardization. F. Design compromises are instituted.
A. Capital investment is added for new equipment or processes. B. Inventory needs to be revised. D. Quality standards need to be revised.
Which of the following comes EARLIEST in the decision-making process? A. Develop specific and measurable objectives. Your answer is correct. B. Develop a model. C. Implement and evaluate the decisions and then set a timetable for completion. D. Evaluate each alternative solution based on its merits and drawbacks.
A. Develop specific and measurable objectives.
Which of the following is a concern as firms move toward globalization? A. Differences in social and cultural behavior Your answer is correct. B. Opportunities to reach new markets C. Decreases in exchange rate risk D. Simplification of operations managemen
A. Differences in social and cultural behavior
Which of the following statement is incorrect about the mission? A. Each functional area within the firm may develop its own strategy, but not its own supporting mission. Your answer is correct. B. The mission statement provides boundaries and focus for organizations. C. The mission statement provides the concept around which the firm can rally. D. The mission states the rationale for the organization's existence.
A. Each functional area within the firm may develop its own strategy, but not its own supporting mission
The text provides three primary strategic approaches (differentiation, cost, and response) for achieving competitive advantage. Provide an example of each. Support your choices. Choose the correct example of differentiation and its explanation below. A. Hunter Fan, as it's a premier maker of quality ceiling fans that lower heating and cooling costs for its customers. Your answer is correct. B. Johnson Electric, as it competes on speed dash speed in design comma production comma and delivery. C. Hunter Fan, as it guarantees delivery in 3 days. D. Johnson Electric, as it specializes in industrial and commercial electrical construction projects.
A. Hunter Fan, as it's a premier maker of quality ceiling fans that lower heating and cooling costs for its customers.
Choose the correct example of response and its explanation below. A. Johnson Electric, as it competes on speed dash speed in design comma production comma and delivery. Your answer is correct. B. Johnson Electric, as it specializes in industrial and commercial electrical construction projects. C. Disney Magic Kingdom, as it provides the best free and low dash cost attractions and places to visit. D. Disney Magic Kingdom, as here people are surrounded by a dynamic visual and sound experience.
A. Johnson Electric, as it competes on speed dash speed in design comma production comma and delivery.
Identify how changes within an organization affect the OM strategy for a company. For instance, discuss what impact the following internal factors might have on OM strategy: a) Maturing of a product. b) Technology innovation in the manufacturing process. c) Changes in laptop computer design that builds in wireless technology. a) Select all of the correct impacts the maturing of a product might have on OM strategy below. (Check all that apply.) A. Product changes decrease. Your answer is correct. B. Layout needs to be revised. C. Product design needs to be revised. D. Optimum capacity may be achieved. Your answer is correct. E. The OM function focuses on more standardization. Your answer is correct. F. New human resources skills.
A. Product changes decrease. D. Optimum capacity may be achieved. E. The OM function focuses on more standardization.
Select all of the correct impacts the technology innovation in the manufacturing process might have on OM strategy below. (Check all that apply.) A. Purchasing needs to be revised. Your answer is correct. B. Cost cutting is instituted. C. Maintenance procedures need to be revised. Your answer is correct. D. The manufacturing process stabilizes. E. Optimum capacity may be achieved. F. Capital investment is added for new equipment or processes.
A. Purchasing needs to be revised. C. Maintenance procedures need to be revised. F. Capital investment is added for new equipment or processes.
Which of the following statements is NOT one of the differentiation strategy decisions? A. Use buffer stocks to ensure speedy supply. Your answer is correct. B. Modular design to aid product differentiation. C. Gather and communicate market research data. D. Minimize inventory to avoid product obsolescence.
A. Use buffer stocks to ensure speedy supply.
Which of these is a reason why outsourcing continues to expand? A. increased technological expertise and specialization Your answer is correct. B. more expensive transportation C. rapid development and deployment of advancements in automation D. less reliable transportation
A. increased technological expertise and specialization
The advantage of having many potential suppliers is their willingness to A. offer lower prices in the short term. Your answer is correct. B. participate in JIT. C. provide innovations. D. provide technical expertise.
A. offer lower prices in the short term.
A large percentage of the revenue of most firms is spent on which function? A. operations Your answer is correct. B. research and development C. finance D. marketing
A. operations
What decision tree symbol represents a decision node? A. square Your answer is correct. B. circle C. triangle D. star
A. square
In general, the supply chain starts with A. the provider of basic raw materials. Your answer is correct. B. a distributor. C. final customers at the retail store. D. research and development.
A. the provider of basic raw materials.
Which of the following statements is true regarding cross-sourcing? A. 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. Your answer is correct. B. Cross-sourcing develops the ability to produce goods or services previously purchased or actually buying a supplier or distributor. C. Cross-sourcing enhances technological skills. D. Cross-sourcing describes suppliers who become part of a company coalition.
A. 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.
Which of the following is NOT one of the 10 strategic OM decisions listed in the text? A. finance/accounting Your answer is correct. B. location C. layout D. quality
A. finance/accounting
SWOT analysis refers to A. strengths, opportunities, weaknesses, and threats. Your answer is correct. B. support, opponents, weaknesses, and threats. C. strengths, opponents, weaknesses, and threats. D. support, opportunities, weaknesses, and threats.
A. strengths, opportunities, weaknesses, and threats.
A process focused facility is A. based on the classical assembly line. B. a production facility organized around specific activities. Your answer is correct. C. a rapid, low-cost production facility that caters to constantly changing unique customer desires. D. a production facility organized around products.
B. a production facility organized around specific activities.
A strategy is A. a functional area of the firm. B. an action plan to achieve a mission. Your answer is correct. C. the purpose for which an organization is established. D. established prior to establishing a mission.
B. an action plan to achieve a mission.
Which of the following activities at a commercial bank is NOT an operations activity? A. security B. auditing Your answer is correct. C. check clearing D. maintenance
B. auditing
Which of the following is NOT one of the five forces in the five forces model used when analyzing the competitive environment? A. Customers B. Economic conditions Your answer is correct. C. Suppliers D. Immediate rivals
B. Economic conditions
The transportation model is a form of what operations management quantitative method? A. Simulation B. Linear programming Your answer is correct. C. Decision tree D. Economic order quantity
B. Linear programming
What is the primary objective for a service or retail organization when making a location decision? A. Minimize customer-drawing area B. Maximize revenue Your answer is correct. C. Minimize cost D. Maximize size of the labor pool
B. Maximize revenue
Which of the following statements is NOT true regarding location decisions? A. Location decisions to support a low-cost strategy require particularly careful consideration. B. Once management is committed to a specific location, many costs become relatively easy to reduce. Your answer is correct. C. Location often has the power to make or break a company's business strategy. D. Location decisions are important because location has a major impact on the overall risk and profit of the company.
B. Once management is committed to a specific location, many costs become relatively easy to reduce.
Question content area Part 1 Which of the following is NOT one of the four reasons that we study OM? A. It is such a costly part of an organization. B. We want to understand what marketing managers do. Your answer is correct. C. It is one of the three major functions of any organization. D. We want to know how goods and services are produced.
B. We want to understand what marketing managers do.
To reduce the risks from vertical integration, firms may choose to develop some form of formal collaboration known as A. vendor managed inventory. B. a joint venture. Your answer is correct. C. cross sourcing. D. channel assembly.
B. a joint venture.
Within decision-making theory, what is a relationship between objectives and variables? Part 2 A. a match B. a model Your answer is correct. C. a path D. a link
B. a model
In transportation modeling, what do we do if total supply is greater than total demand? A. reduce the available capacity from the largest source until total supply equals total demand B. create a dummy destination Your answer is correct. C. artificially create an occupied cell by placing a zero in it D. create a dummy source
B. create a dummy destination
The transportation model A. finds the location of a single distribution center that minimizes distribution costs. B. determines the best pattern of shipments from several points of supply to several points of demand. Your answer is correct. C. determines the crossover point between two different locations. D. uses both qualitative and quantitative factors.
B. determines the best pattern of shipments from several points of supply to several points of demand.
Which of the following is NOT one of the three strategic approaches to competitive advantage? A. cost leadership B. innovation Your answer is correct. C. response D. differentiation
B. innovation
The do-it-yourselfer plucked a gallon can of base paint from the shelf of the local hardware store and handed it to Keith, the cheerful clerk at the paint counter. Their eyes met briefly and the do-it-yourselfer silently handed over sample 150C-1, Musical Mist, to the clerk. It was impractical to keep several gallons of every possible color on the shelves at the hardware store, so the paint manufacturer had created clever workaround. The workaround was a computer-based system that added predetermined quantities of pigments to a gallon can of base paint depending on the desired shade, in this case, Musical Mist. The hardware store now needed to stock only the base paint, this machine, and a small supply of paint pigments in order to create the thousands of colors in its catalog. This scenario is a prime example of A. vendor-managed inventory. B. postponement. Your answer is correct. C. the bullwhip effect. D. drop shipping.
B. postponement.
Low-volume, high-variety production is best suited for which of the following process strategies? A. product focus B. process focus Your answer is correct. C. mass customization D. repetitive focus
B. process focus
Which of the following techniques might a service or retail organization use to make a location decision? A. crossover charts B. traffic counts Your answer is correct. C. locational cost-volume analysis D. transportation method
B. traffic counts
What is a conditional value? A. The expected shortfall of an operational decision B. The value of the alternative with the highest average outcome C. An outcome (usually monetary) associated with an alternative and a particular state of nature Your answer is correct. D. An outcome probability
C. An outcome (usually monetary) associated with an alternative and a particular state of nature
What is the term of shipping directly from the supplier to the end consumer rather than from the seller, saving both time and reshipping costs? A. Postponement B. Direct shipping C. Drop shipping Your answer is correct. D. Vendor-managed inventory
C. Drop shipping
What is the expected payout or value of a variable that has different possible states of nature, each with an associated probability? A. EVwPI B. EVPI C. EMV Your answer is correct. D. EMPI
C. EMV
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. A. Transnational. Its material, people, and ideas transgress national boundaries. It combines the benefits of global-scale efficiencies with the benefits of local responsiveness. It is not global because the core competence does not reside in just the "home" country but can exist anywhere in the organization. B. Multinational. Its level of integration is not enough to be global. Also it buys resources, creates goods and services, and sell goods and services in a variety of countries. C. 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."
C. 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."
What is the term for an approach that seeks efficiency of operations through the integration of all material acquisition, movement, and storage activities? A. E-procurement B. Distribution management C. Logistics management Your answer is correct. D. Third-party logistics
C. Logistics management
What is the usual objective of the transportation model? A. Minimize production costs B. Maximize revenue C. Minimize shipping costs Your answer is correct. D. Maximizing miles traveled
C. Minimize shipping costs
Toyota attempts to have at least two suppliers, each in a different geographical region, for each component to mitigate which type of supply chain risk? A. Economic B. Political C. Natural catastrophes Your answer is correct. D. Distribution
C. Natural catastrophes
With regard to the cost-based price model negotiation strategy, which of the following is true? A. Potential suppliers each submit quotations as to price, delivery, and so on. B. Prices float based on what the customer is willing to pay. C. Prices are based upon supplier costs. Your answer is correct. D. Prices are based in some way upon market standards agreed to by both supplier and purchaser.
C. Prices are based upon supplier costs.
Choose the correct example of cost leadership and its explanation below. A. Disney Magic Kingdom, as here people are surrounded by a dynamic visual and sound experience. B. Disney Magic Kingdom, as it provides the best free and low dash cost attractions and places to visit. C. Southwest Airlines, as it fulfills a need for low dash cost and short dash hop flights. Your answer is correct. D. Southwest Airlines, as it specializes in providing private jets including luxury jetliners.
C. Southwest Airlines, as it fulfills a need for low dash cost and short dash hop flights.
Which of the following statements is NOT true regarding the bullwhip effect? A. Bullwhip fluctuations in the supply chain increase the costs associated with inventory, transportation, shipping and receiving. B. Bullwhip fluctuations in the supply chain decrease customer service and profitability. C. The bullwhip effect occurs as order are relayed from retails, to distributors, to wholesalers, to manufacturers, with fluctuations decreasing at each step in the sequence. Your answer is correct. D. Inaccurate information results in distortions and fluctuations, causing what is known as the bullwhip effect.
C. The bullwhip effect occurs as order are relayed from retails, to distributors, to wholesalers, to manufacturers, with fluctuations decreasing at each step in the sequence.
The production process at Hard Rock Cafe does NOT include which of the following activities? A. cooking B. receiving C. advertising Your answer is correct. D. placing raw materials in cold storage
C. advertising
A set of skills, talents, and capabilities in which a firm is particularly strong is referred to as A. experience differentiation. B. differentiation. C. core competencies. Your answer is correct. D. key success factors (KSFs).
C. core competencies.
In transportation modeling, what do we do if total demand is greater than total supply? A. reduce the demand from the largest destination until total supply equals total demand B. create a dummy destination C. create a dummy source Your answer is correct. D. artificially create an occupied cell by placing a zero in it
C. create a dummy source
Which of the following statements is NOT generally an implication stemming from an increase in the number of facilities? A. increased facility costs B. increased customer satisfaction C. decreased total logistics cost Your answer is correct. D. quicker response
C. decreased total logistics cost
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 Your answer is correct. D. preparing an employee schedule
C. filing a tax return
Which of the following strategies is part collaboration, part purchasing from few suppliers, and part vertical integration? A. horizontal integration B. joint ventures C. keiretsu networks Your answer is correct. D. virtual companies
C. keiretsu networks
Which of the following is the purpose or rationale for an organization's existence? A. articles of incorporation B. charter C. mission Your answer is correct. D. strategy
C. mission
When determining the optimal number of facilities, logistics-related costs do NOT usually include which of the following costs? A. transportation B. facility C. purchasing Your answer is correct. D. inventory
C. purchasing
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 Your answer is correct. D. marketing
C. research and development
What is an alternative name for origin points within transportation modeling? A. destinations B. capacities C. sources Your answer is correct. D. cost matrices
C. sources
What is an occurrence or a situation over which the decision maker has little or no control? A. unactionable event B. alternative C. state of nature Your answer is correct. D. chance event
C. state of nature
Question content area Part 1 What should appear in the last row of a transportation matrix? A. the source capacities B. the origin points C. the destination demands Your answer is correct. D. the destinations
C. the destination demands
Which of the following is an example of a "hidden" production function? A. producing a computer B. manufacturing a television C. transplanting a liver D. assembling a motorcycle
C. transplanting a liver
What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor? A. virtual companies B. outsourcing C. vertical integration Your answer is correct. D. horizontal integration
C. vertical integration
A lawnmower assembly plant uses a variety of nuts, bolts, screws, and other fasteners in its operation. Its supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule. This is an example of A. e-procurement. B. single stage control of replenishment. C. vendor-managed inventory. Your answer is correct. D. postponement.
C. vendor-managed inventory.
Contracts within the supply chain are designed to A. share benefits. B. share risks. C. create policies that benefit the entire supply chain. D. All of the above
D. All of the above
Which of the following is part of the supplier development process? A. Setting delivery schedules B. Setting quality standards C. Setting procurement policies D. All of the above
D. All of the above
Which of the following is the purpose of a warehouse? A. Storage point B. Break-bulk point C. Consolidation point D. All of the above
D. All of the above
Many operations management (OM) innovations have come from outside of the United States. Which of the following OM innovations is matched with the wrong country/region? A. Scandinavia -> ergonomics B. Japan -> inventory management C. Germany -> robotics D. All of the above are correct
D. All of the above are correct
Which of the following organizations does NOT require operations? Part 2 A. Washington State University B. Walmart C. American Red Cross D. All of the above require operations
D. All of the above require operations
Which of the following statements is NOT true? A. Reverse logistics involves the processes of sending returned products back up the supply chain for resale, repair, reuse, remanufacture, recycling, or disposal. B. A closed-loop supply chain prepares for returns prior to product introduction. C. "Closed-loop supply chain" is sometimes used as a synonym for "reverse logistics." D. A closed-loop supply chain is a designed to optimize only reverse flows. Your answer is correct.
D. A closed-loop supply chain is a designed to optimize only reverse flows.
Which of the following statements is NOT true? A. Top-notch supply chain performance requires good downstream management, just as it does good upstream management. B. An effective supplier management program and an effective distribution management program may make the difference between supply chain success and failure. C. Packaging and logistics are important distribution decisions, because the manufacturer is usually held responsible for breakages and serviceability. D. Finding the optimal number of facilities represents a critical and static decision. Your answer is correct.
D. Finding the optimal number of facilities represents a critical and static decision.
Which automotive company was the first to successfully introduce a moving assembly line? A. Nissan B. Chevrolet C. Toyota D. Ford
D. Ford
Which of the following is a key success factor for Southwest Airlines? A. Utilization of major airports B. Aircraft designed for specific routes C. No unions D. High aircraft utilization
D. High aircraft utilization
Which organization has developed principles and standards to be used as guidelines for ethical behavior? A. Institute for Vendor Management B. Institute for Procurement Management C. Institute for Purchasing Management D. Institute for Supply Management Your answer is correct.
D. Institute for Supply Management
Which decision-making rule is known as the "optimistic" decision criterion? A. Maximin B. Minimin C. Minimax D. Maximax
D. Maximax
The operations manager's job within an organization structure is to A. implement an OM strategy, perform internal audits, and increase productivity. B. ensure high quality, provide competitive advantage, and increase sales. C. ensure high quality, perform internal audits, and increase sales. D. implement an OM strategy, provide competitive advantage, and increase productivity.
D. implement an OM strategy, provide competitive advantage, and increase productivity.
A large quantity and large variety of products are produced in A. product focus. B. process focus. C. repetitive focus. D. mass customization.
D. mass customization.
Which decision-making rule is known as a "pessimistic" decision criterion? A. minimin B. minimax C. maximax D. maximin
D. maximin
What is transferring a firm's activities that have traditionally been internal to external suppliers? A. make-or-buy B. keiretsu network C. vertical integration D. outsourcing
D. outsourcing
Which of the following industries has the highest supply chain cost as a percentage of sales? A. metals B. automobile C. restaurants D. petroleum
D. petroleum
High-volume, low-variety production is best suited for which of the following process strategies? A. repetitive focus B. mass customization C. process focus D. product focus
D. product focus
Which of the following is NOT an OM strategy/issue during the growth stage of the product life cycle? A. enhance distribution B. forecasting critical C. shift towards product focus D. reduce capacity
D. reduce capacity
Companies often make location decisions based on the economics of transportation. Firms first used this strategy with which of the following? A. rail hubs B. interstate highways C. airports D. rivers and ports
D. rivers and ports
Which of the following activities at an airline is NOT an operations activity? A. crew scheduling B. catering C. flying D. sales
D. sales
The economic activities that typically produce an intangible product are referred to as A. phantoms. B. goods. C. products. D. services.
D. services.
In transportation modeling, what has as its purpose to summarize all relevant data and to keep track of algorithm computations? A. from-to table B. simplex tableau C. network diagram D. transportation matrix
D. transportation matrix
A goods-producing location decision would likely emphasize the importance of which of the following? A. security and lighting B. appearance and image C. parking and access D. utility and labor costs
D. utility and labor costs
Prior to embarking on supply chain design, operations managers must first consider A. how to manage supply chain inventory. B. what kind of distribution network to have. C. how to select suppliers. D. "make-or-buy" and outsourcing decisions.
D. "make-or-buy" and outsourcing decisions.
A response strategy requires suppliers be selected based primarily on A. cost. B. product development skills. C. being willing to share information. D. capacity, speed, and flexibility
D. capacity, speed, and flexibility
