Ops Exam 1

Which of the following is not a forecast horizon used in forecasting? Current Short Medium Long

Current

Which of the following is the first step in a typical strategic planning process? Define vision, mission, and objectives Plan operations and supply chain strategy Evaluate initiatives Develop the strategy

Define vision, mission, and objectives

True or false: All firms compete on the same dimensions. TrueFalse

False

True or false: An operations and supply chain strategy is independent of the corporate strategy. TrueFalse

False

Which of the following should be considered when choosing a forecasting model? Check all that apply. How many departments will be using the model The magnitude of the data Firm's degree of flexibility Consequence of a bad forecast

Firm's degree of flexibility Consequence of a bad forecast

Which of the following is not a reason why exponential smoothing has been well accepted? Little computation is required to use the model Models are surprisingly accurate User can understand how the model works Formulating the model is relatively difficult

Formulating the model is relatively difficult

Which of the following is the formula for a single exponential smoothing?

Ft=Ft-1+α(At−1−Ft−1)

Services generally vary from day to day and even hour to hour as a function of the attitudes of the customers and the servers. Which of the following are exceptions to this? Hard technologies New technologies Soft technologies Information technologies

Hard technologies Information technologies

Engineer-to-order

Here the firm works with the customer to design the product, which is then made from purchased material, parts and components.

In regards to the service package, the operations data that is provided to the customer, to enable efficient and customized services. Implicit services Explicit services Supporting facility Facilitating goods Information

Information

Which of the following is not a feature of a service package? Information Location Implicit services Explicit services

Location

When can a service innovation be patented? Never Always Only when the company holds a trademark. Only when a physical product is provided with the service.

Never

What type of forecast should be used for strategy, sourcing and location decisions? Independent Tactical Operational Strategic

Strategic

Qualitative

Techniques that use managerial judgment.

The weighted moving average requires what of the weights? The more current data be weighted higher. None of the weights exceed 0.50. That they sum to one. No more than 30 data points be included.

That they sum to one.

The time needed to respond to a customer order is called the turnaround time throughput time lead time cycle time

lead time

___________-____________ forecasts are useful for capturing seasonal effects.

medium-term

In a service organization, how management treats the _______ is how they will treat the public.

workers

When calculating a multiplicative seasonal index, what mathematical operator is used to relate the trend and seasonal factor? ÷ Σ + ×

×

Linear regression

10 to 20 observations

Total Quality Management (TQM) became popular during what time frame 2000s 1980s 1890s 1790s

1980s

Trend and seasonal models

2 to 3 observations per season

In the exponential smoothing method, how many pieces of information are needed to forecast the future? 1 2 3 4 In depends on the smoothing constant

3

If a firm produced a standard item with relatively stable demand, what alpha value would you expect them to use? 0 5 or 10 15 to 20 15 to 30 Over 30

5 or 10

Weighted moving average and simple exponential smoothing + exponential smoothing with trend

5 to 10 observations needed to start

Which of the following is an example of a service business? A computer manufacturer An automobile manufacturer A home builder A call center

A call center

Make-to-stock

A production environment where the customer is served "on-demand" from finished goods inventory.

Which type of seasonal variation assumes that the season amount is a constant? Additive Seasonal index Seasonal factor Multiplicative

Additive

A network can be added for which of the following? Any manufacturing Only services with a physical component Only manufacturing with high labor content Any service

Any manufacturing Any service

Causal forecasting

Assumes that demand is related to some underlying factor or factors in the environment.

Time series analysis

Based on the idea that data relating to past demand can be used to predict future demand

Where does an automobile manufacturer fall on the goods-service continuum? Pure service Core goods Core services Pure goods

Core goods

In regards to the service package, the material purchased or consumed by the buyer or the items provided to the customer. Implicit services Supporting facility Information Explicit services Facilitating goods

Facilitating goods

Which measure of error calculates the average absolute value of the actual forecast error? TS MAD RSFE MAPE

MAD

Which measurement of error is calculated by dividing the sum of the absolute forecast errors by the number of periods? RSFE TS MAPE MAD

MAD

Which of the following is not a component of demand? Trend Random Planned Seasonal

Planned

_____ consists of the processes needed to operate an existing supply chain strategically. Marking Sourcing Planning Returning Delivering

Planning

A moving average can be useful in removing what for forecasting. Sudden changes to demand Random fluctuations Cyclical variations Seasonal variations

Random fluctuations

In statistics, the difference between what actually occurred and what was forecast is referred to as what? Residuals A chance for improvement Mistakes Errors

Residuals

Break-even analysis is most suitable when all of the following conditions are met except for which one? Processes and equipment entail a large initial investment and fixed cost The choice obviously depends on anticipated demand Revenue is much larger than variable cost Variable costs are reasonably proportional to the number of units produced

Revenue is much larger than variable cost

Which forecasting model is base upon merely average past demand? Linear regression Simple moving average Exponential smoothing Weighted moving average

Simple moving average

random

These are caused by chance events.

cyclical elements

These are more difficult to determine because the time span may be unknown or the cause of the cycle may not be considered.

Simulation

These models allow the forecaster to run through a range of assumptions about the condition of the forecast.

autocorrelation

This denotes the persistence of occurrence. More specifically, the value expected at any point is highly related with its own past values.

Trend

This is a straight line fitted to the data.

Seasonal element

This is period-by-period variations in demand.

Average demand

This is the sum of the demand values divided by the sample size.

With weighted moving averages, how are the weights selected? Check all that apply. Trial and error Guessing Fitting to a regression line Experience

Trial and error Experience

Which of the following is one of the dimensions depicted on a product-process matrix? Cost Volume Time Service

Volume

Adjusting the value of alpha to more closely track actual demand is called ___________ forecasting.

adaptive

With exponential smoothing, which smoothing constant controls the speed of reaction to differences between forecasts and actual demand? Beta Delta Gamma Alpha

alpha

With ___________, the value expected at any point is highly correlated with its own past values.

autocorrelation

Within every industry, there is usually a segment of the market that buys solely on the basis of low ______________.

cost

The _________ is the focal point of all decisions and actions of the service organization.

customer

____________ factors are more difficult to determine because the time span may be unknown or the cause of the cycle may not be considered.

cyclical

Doing the things that will create the most value for the company is known as efficiency value effectiveness quality

effectiveness

All forecasts certainly contain some __________.

error

The difference between the actual demand and the forecast is referred to as inevitable. deviation. forecast error. trend.

forecast error.

The higher the variable cost, _______ the break-even volume.

higher

Single exponential smoothing has the shortcoming of __________ changes in demand

lagging

With single exponential smoothing forecasting, the forecast __________ when a change in direction occurs.

overshoots

The _____ are individuals or organizations that legally own one or more shares of stock in the company. shareholders employees stakeholders consumers

shareholders

In general, the _________ __________ models compensate for random variation and adjust for changes over a brief period of time.

short-term

___________-___________ models are especially good for measuring the current variability in demand.

short-term

Tactical forecasts are _________ term, while strategic forecasts are _____________ term. medium; long short; long short; medium and long short and medium; long

short; medium and long

In general, the longer the averaging period... the quicker it responds to change. the less data that must be stored. the smoother the plot.

the smoother the plot.

___________ lines are the usual starting point in developing a forecast.

trend

Long-term forecasting models detect general trends and are especially useful in identifying major ____________ ____________.

turning points

When deciding which forecasting model to use, a firm should consider all of the following except: time horizon forecasting budget weather accuracy required

weather

Simple moving average

6 to 12 months; weekly data are often used

If a car has four engine choices, three transmission choices, and five entertainment choices, there are _________ total number of combinations.

60 -- multiply all

Assemble-to-order

A production environment where preassembled components, subassemblies, and modules are put together in response to a specific customer order.

Make-to-order

A production environment where the product is built directly from raw materials and components in response to a specific customer order.

What is the relationship between response to customer demand and inventory investment? Having more inventory makes it harder, and therefore slower, to respond to customers. The quicker you respond, the less inventory you have. A quicker response comes at the expense of greater inventory investment. There is minimal relationship between inventory investment and customer response.

A quicker response comes at the expense of greater inventory investment.

Operational effectiveness relates to processes that span which of the following parts of the business? Taking customer orders Handling returns Manufacturing Shipping products All business functions

All business functions

Which of the following type of work flow is appropriate when production volume is high? Assembly line Workcenter Manufacturing cell Project layout

Assembly line

What involves the analysis of data to better solve business problems? Business analytics Supply chain management Information technology Operations management

Business analytics

An approach to improving business processes that seeks to make revolutionary changes as opposed to evolutionary (small) changes. Business process reengineering Overall change management Electronic commerce Six Sigma Mass customization

Business process reengineering

It takes a fresh look at what the organization is trying to do in all its business processes, and then eliminating non-value-added steps and computerizing the remaining ones to achieve the desired outcome. Six Sigma Business process reengineering Overall change management Electronic commerce Mass customization

Business process reengineering

Which of the following is not a production management tool used in planning and designing manufacturing process flow? Assembly charts Process flow charts Control charts Route sheets

Control charts

Which of the following are NOT outputs of the initiatives phase of formulating an operations and supply chain strategy? Check all that apply. Operation/supply chain changes Customer preferences Product/platform changes Specific project plan

Customer preferences Specific project plan

A time series can be defined as chronologically ordered data that may contain one or more components of demand. What are these components? Cyclical Trend Seasonal Autocorrelation Regression line slope Average Random

Cyclical Trend Seasonal Autocorrelation Random

Identifying and separating the time series data into its components. Regression Multiplicative Decomposition Additive

Decomposition

Which of the following is not a step required to make a good? Decoupling Making Delivering Sourcing

Decoupling

In regards to the service package, the benefits that are readily observable by the senses and that consist of the essential or intrinsic features of the service. Supporting facility Explicit services Implicit services Facilitating goods Information

Explicit services

When the most recent occurrences are more indicative of the future than those in the distant past, one should use which time series model? Weighted moving average Exponential Linear regression Simple moving average

Exponential

Operationally, which of the following distinguishes one service system from another? Service delivery options Degree of vertical integration Extent of customer contact Location of service facility

Extent of customer contact

The role of operations in The Service Triangle is a major one. Which of the following are part of operations responsibility?

Facilities Service systems Procedures Equipment Managing the workforce

True or false: Service systems with a high degree of customer contact are easier to manage and control True False

False

True or false: Each activity in the strategic planning process is conducted only once a year. True false

False (at least once a year)

Which of the following is not a strategy associated with operational effectiveness? Process redesign Technology investments Hiring more employees Quality assurance

Hiring more employees

Which of the following is not a major activity of a typical strategic planning process? Implement the Strategy Translate the Strategy Plan Operations and Supply Develop the Strategy

Implement the Strategy

In regards to the service package, the psychological benefits that the customer may sense only vaguely, or the extrinsic features of the service. Information Facilitating goods Explicit services Supporting facility Implicit services

Implicit services

Which measurement of error represent the average error measured as a percentage of average demand? TS MAPE RSFE MAD

MAPE

Which of the following is not an element of the service triangle? Employees Customer Maintenance Service Strategy

Maintenance

The issue of balancing the level of finished inventory against the level of service to the customer occurs in which type of firm? Make-to-stock Engineer-to-order Make-to-order Assemble-to-order

Make-to-stock

Which type of firm invests in lean manufacturing programs in order to improve customer service levels for a given inventory investment? Engineer-to-order Assemble-to-order Make-to-order Make-to-stock

Make-to-stock

With exponential smoothing, the value for the constant is determined both by what? Check all that apply. The magnitude of the demand data Manager's sense of what constitutes a good response rate If demand is increasing or decreasing The nature of the product

Manager's sense of what constitutes a good response rate The nature of the product

Order winners and qualifiers represent a link between Operations and what other business function? Marketing Engineering Finance Accounting

Marketing

A company known for delivering high-volume standardized goods and services is... Walmart Great Clips Northside Hospital McDonald's

McDonald's

When calculating productivity, if you compare the output to a group of inputs (but not all inputs), you are conducting which type of productivity measure? Semi measure Partial measure Total measure Multifactor measure

Multifactor measure

What is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services. Master production scheduling Aggregate planning Supply chain management Inventory management Operations and supply chain management

Operations and supply chain management

Product-service bundling refers to a company building service activities into it product offerings for its customers. Which of these service activities would not be included in the product-service bundle? Spare part provisioning Training Product design Maintenance

Product design

A framework depicting when the different production process types are typically used depending on volume and standardization is known as what?

Product-process matrix

When formulating an operations and supply chain strategy, which of the following is NOT an output of the strategic analysis phase? Population demographics New technologies Customer preferences Competitive analysis Product/platform changes

Product/platform changes

Where do food products fall on the goods-service continuum? Pure goods Core goods Core services Pure services

Pure goods

Where does medical care fall on the goods-service continuum? Core goods Core services Pure services Pure goods

Pure services

There are five essential differences between services and goods. Which of the following is not one of those differences? Services are perishable. Services are inherently homogeneous. A service is an intangible process. Services require interaction with the customer. Services are defined and evaluated as a package of features that affect the five senses.

Services are inherently homogeneous.

Which of the following describes the step where parts are procured from one of more suppliers? Decoupling Making Sourcing Delivering

Sourcing

Which of the following is an major corporate function that a firm should not outsource? Distribution Product development Engineering services Strategic planning Design Information systems

Strategic planning

True or false: A service organization exists to serve the customer True False

True

True or false: Carrying finished goods inventory is more expensive than carrying raw material inventory.

True

True or false: Electronic commerce is defined as the use of the Internet as an essential element of business activity. True False

True

True or false: Many product offerings are a combination of goods and services. True False

True

True or false: Operations and supply chain management is focused on the systems that create and deliver an organization's products and services.

True

True or false: Productivity is a relative measure. True False

True

An __________ _________ is where work processes are arranged according to the progressive steps by which the product is made.

assembly line

A standard approach to choosing among alternative processes or equipment that uses fixed cost, variable costs, and revenue is known as net present value break-even analysis revenue analysis economic analysis

break-even analysis

The term that refers to the physical presence of the customer in the system is known as customer contact customer variability customer service customer satisfaction

customer contact

The customer order ______ point determines where inventory is positioned to allow processes or entities in the supply chain to operate independently.

decoupling

___________ ____________ is the most used of all forecasting techniques.

exponential smoothing

The number of finished products is usually substantially ________ than the number of components combined to produce the finished product.

larger

Many make-to-stock firms invest in _____________ manufacturing programs in order to achieve higher service levels for a given inventory investment.

lean

Place the following production methods in order starting with the one having inventory closest to the customer and then moving back to the one with inventory closest to the source.

make-to-stock assemble-to-order make-to-order engineer-to-order

Place the following production methods in order starting with the one having the highest level of inventory investment and moving down to the one with the lowest inventory investment.

make-to-stock assemble-to-order make-to-order engineer-to-order

Place the following production methods in order starting with the shortest lead time and moving to the longest lead time.

make-to-stock assemble-to-order make-to-order engineer-to-order

A ________ _________ layout is a dedicated area where products that are similar in processing requirements are produced.

manufacturing cell

In time series analysis, ____________ demand is used to predict __________ demand. current; future historical; current past; future future; past

past; future

In the make-to-order and engineer-to-order environments, the customer order decoupling point could be in either raw materials at the manufacturing site or possibly even with the ___________ inventory.

supplier

When you want to express the ratio of all outputs to all inputs, you should use a ________ productivity measure. multifactor partial total complete

total

The attractiveness of a product relative to its cost is known as... effectiveness quality efficiency value

value