Questions from quizzes
Which of the following is not a type of qualitative forecasting? Part 2 A. market survey B. jury of executive opinion C. sales force composite D. moving average . E. Delphi method
Moving average
In PERT analysis, the identification of the critical path can be incorrect if a noncritical activity takes substantially more than its expected time. Part 2 True False
true
Mean squared error and exponential smoothing are two measures of the overall error of a forecasting model. Part 2 True False
true
The sales force composite forecasting method relies on salespersons' estimates of expected sales. Part 2 True False
true
One advantage of exponential smoothing is the limited amount of record keeping involved. Part 2 True False
truw
Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only thing to be changed. (Productivity remains the same.) (Hint: Each worker works 160 hours per month.) Part 2 If the bakery currently makes 1,500 loaves per month with a labor productivity of 2.344 loaves per labor hour, then Lackey will need to add 11 worker(s) to meet the increased demand (recall that each worker works 160 hours per month and round your response up to the next whole number).
1
A c-chart is based on the Part 2 A. Erlang distribution. B. Poisson distribution. C. normal distribution. D. binomial distribution.
b
A fundamental distinction between trend projection and linear regression is that: Part 2 A. trend projection uses two smoothing constants, not just one. B. in trend projection the independent variable is time; in linear regression the independent variable need not be time, but can be any variable with explanatory power. C. trend projection uses least squares while linear regression does not. D. only linear regression can have a negative slope. E. trend projection can be a function of several variables, while linear regression can only be a function of one variable.
b
An activity on a PERT network has these time estimates: optimistic = 2, most likely = 3, and pessimistic = 8. What is its expected activity time and variance? Part 2 A. 4.33; 1 B. 3.67; 1 C. 3.67; 6 D. 4.33; 6 E. None of the above
b
The shortest of all paths through the network is the critical path. Part 2 True False
false
Work breakdown structure is a useful tool in project management because it addresses the timing of individual work elements. Part 2 True False
false
n a regression equation where y-hat is demand and x is advertising, a coefficient of determination (R2) of .70 means that 70% of the variance in advertising is explained by demand. Part 2 True False
false
In location planning, environmental regulations, cost and availability of utilities, and taxes are
regional/community factors
A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y per period. Part 2
true
A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y per period. Part 2 True False
true
A trend projection equation with a slope of 0.78 means that there is a 0.78 unit rise in Y per period. Part 2 True. False
true
1. Industrial location analysis typically attempts to
reduce costs
Competing on differentiation is Part 2 A. concerned with uniqueness. B. based upon low-cost leadership. C. concerned with reliability of scheduling. D. based upon flexibility.
A
Retail layouts are based on the notion that: Part 2 A. sales and profitability vary directly with customer exposure to products. B. storage costs should be minimized. C. handling costs should be minimized. D. average customer visit duration should be maximized. E. space used should be minimized.
A
Which of these factors would be considered when making a location decision at the site level? Part 2 A. zoning regulations B. cost and availability of utilities C. proximity to raw materials and customers D. cultural and economic issues E. government rules, attitudes, stability, incentives
A
Which of these is NOT one of the basic functions of the management process? Part 2 A. inspecting B. staffing C. leading D. controlling
A
Geographic information systems can assist the location decision by: Part 2 A. updating transportation method solutions. B. combining geography with demographic analysis. C. automating center-of-gravity problems. D. providing good Internet placement for virtual storefronts. E. computerizing factor-rating analysis.
B
The set of activities that relate to the creation of goods and services through the transformation of inputs to outputs is referred to as Part 2 A. marketing. B. operations management. C. supply chain management. D. finance.
B
Which of these is NOT one of the 10 strategic OM decisions? Part 2 A. layout strategies B. marketing C. managing quality D. scheduling
B
Currency risk is based on what assumption? Part 2 A. The value of one dollar today is greater than the value of one dollar to be received one year from now. B. The U.S. stock market fluctuates daily. C. Values of foreign currencies continually rise and fall in most countries. D. Changing product lines by reacting to every current trend may alienate the customer base. E. Firms that do not continuously innovate will lose market share.
C
The disadvantages of process-oriented layout come from: Part 2 A. the use of special purpose equipment. B. the use of specialized material handling equipment. C. the general-purpose use of the equipment. D. the need for stable demand. E. machine maintenance, which tends to seriously degrade the capacity of the entire system.
C
The main difference between PERT and CPM is that: Part 2 A. CPM assumes activity durations can vary. B. PERT ignores activity costs. C. PERT employs three time estimates for each activity. D. PERT assumes that activity durations are known. E. PERT is more accurate than CPM.
C
Which one of the following is NOT common to repetitive and product-oriented layouts? Part 2 A. standardized products B. a high rate of output C. ability to adjust to changes in demand D. specialized equipment E. low unit costs
C
A successful quality strategy begins with Part 2 A. engaging employees in the necessary activities to implement quality. B. satisfying customers and obtaining a competitive advantage. C. an understanding of the principles of quality. D. an organizational culture that fosters quality.
D
If two variables were perfectly correlated, what would the coefficient of correlation r equal? Part 2 A. 0 B. −1 C. 1 D. B or C E. None of the above
D
The two popular measures for quantitatively determining if a process is capable are Part 2 A. process mean and range. B. process mean and standard deviation of the process population. C. upper specification and lower specification. D. process capability ratio and process capability index.
D
The center-of-gravity method is used primarily to determine what type of locations? Part 2 A. call center locations B. service locations C. manufacturing locations D. distribution center locations E. supplier locations
D
The fixed-position layout would be MOST appropriate in which of the following settings? Part 2 A. a casual dining restaurant B. a fast-food restaurant C. a doctor's office D. a cruise ship assembly facility E. a washing machine assembly line
D
Which of the following is NOT a common TQM tool? Part 2 A. scatter diagrams B. histograms C. check sheets D. queuing models
D
Which of the following organizations does NOT require operations? Part 2 A. Walmart B. American Red Cross C. Washington State University D. All of the above require operations
D.
Which of the following uses three types of participants: decision makers, staff personnel, and respondents? Part 2 A. Delphi method B. sales force composite C. time series D. jury of executive opinion E. associative models
Delphi method
The objective of layout strategy is to: Part 2 A. maximize worker satisfaction. B. minimize space used. C. maximize flexibility. D. minimize cost. E. develop an effective and efficient layout that will meet the firm's competitive requirements.
E
A location decision for an appliance manufacturer would tend to have a(n) : a. cost focus b labor focus c. revenue focus d. environmental focus e. education focus
a
Balancing low-cost storage with low-cost material handling is important in which of the following? Part 2 A. repetitive and product-oriented layout B. warehouse layout C. office layout D. process-oriented layout E. fixed-position layout
b
A successful quality strategy begins with Part 2 A. an organizational culture that fosters quality. B. engaging employees in the necessary activities to implement quality. C. satisfying customers and obtaining a competitive advantage. D. an understanding of the principles of quality.
a
Competing on differentiation is Part 2 A. concerned with uniqueness. B. based upon flexibility. C. concerned with reliability of scheduling. D. based upon low-cost leadership.
a
For which of the following operations would a fixed-position layout be MOST appropriate? Part 2 A. constructing a highway tunnel B. assembling automobiles C. producing TV sets D. running an insurance agency E. refining of crude oil
a
One use of short-range forecasts is to determine: Part 2 A. job assignments. B. capital expenditures. C. research and development plans. D. facility location. E. planning for new products.
a
Process capability Part 2 A. means that the natural variation of the process must be small enough to produce products that meet the standard. B. is assured when the process is statistically in control. C. exists only in theory; it cannot be measured. D. exists when CPK is less than 1.0.
a
The objective of a statistical process control (SPC) system is to Part 2 A. provide a statistical signal when assignable causes of variation are present. B. assess customer expectations. C. provide a statistical signal when natural causes of variation are present. D. eliminate natural variations.
a
The objective of layout strategy is to: Part 2 A. develop an effective and efficient layout that will meet the firm's competitive requirements. B. maximize worker satisfaction. C. minimize cost. D. minimize space used. E. maximize flexibility.
a
The reason fast food restaurants often are found in close proximity to each other is: Part 2 A. location clustering near high traffic flows. B. they enjoy competition. C. availability of skilled labor. D. low cost. E. All of the above.
a
What layout strategy deals with low-volume, high-variety production? Part 2 A. process-oriented layout B. retail layout C. warehouse layout D. fixed-position layout E. office layout
a
Which of the following is NOT among the eight determinants of revenue and volume for a service firm? Part 2 A. shipment cost of finished goods B. uniqueness of the firm's and the competitors' locations C. purchasing power of the customer-drawing area D. competition in the area E. quality of management
a
Which of these is a reason why outsourcing continues to expand? Part 2 A. increased technological expertise and specialization B. less reliable transportation C. rapid development and deployment of advancements in automation D. more expensive transportation
a
In a PERT network, non-critical activities that have little slack need to be monitored closely: Part 2 A. because slack is undesirable and needs to be eliminated. B. because near-critical paths could become critical paths with small delays in these activities. C. because they have a high risk of not being completed. D. because PERT treats all activities as equally important. E. because they are causing the entire project to be delayed.
b
In acceptance sampling, the producer's risk is the risk of having a Part 2 A. bad lot rejected. B. good lot rejected. C. bad lot accepted. D. good lot accepted.
b
Increasing the number of periods in a moving average will accomplish greater smoothing, but at the expense of: Part 2 A. accuracy. B. sensitivity to real changes in the data. C. stability. D. manager understanding. E. All of the above are diminished when the number of periods increases
b
Increasing the number of periods in a moving average will accomplish greater smoothing, but at the expense of: Part 2 A. manager understanding. B. sensitivity to real changes in the data. C. accuracy. D. stability. E. All of the above are diminished when the number of periods increases.
b
The assumptions necessary for a successful product-oriented layout include all EXCEPT which of the following? Part 2 A. adequate volume for high equipment utilization B. volatile product demand C. standardized product D. adequately standardized supplies of raw materials and components E. All of the above are appropriate assumptions.
b
The central problem in product-oriented layout planning is: Part 2 A. maximizing equipment utilization. B. minimizing the imbalance in the workloads among workstations. C. equalizing the space allocated to the different workstations. D. minimizing labor movement between workstations. E. minimizing material handling within workstations.
b
The central problem in product-oriented layout planning is: Part 2 A. minimizing labor movement between workstations. B. minimizing the imbalance in the workloads among workstations. C. minimizing material handling within workstations. D. maximizing equipment utilization. E. equalizing the space allocated to the different workstations.
b
The forecasting technique that pools the opinions of a group of experts or managers is known as: Part 2 A. market survey. B. jury of executive opinion. C. the expert judgment model. D. multiple regression. E. management coefficients.
b
The major problem addressed by the warehouse layout strategy is: Part 2 A. balancing product flow from one work station to the next. B. addressing trade-offs between space and material handling. This is the correct answer. C. requiring frequent close contact between forklift drivers and item pickers. D. locating the docks near a convenient access point to the closest highway. E. minimizing difficulties caused by material flow varying with each product.
b
The most common tactic followed in process-layout planning is to arrange departments or work centers so they: Part 2 A. are equally allocated within the available space. B. minimize the costs of material handling. C. maximize the machine utilization. D. produce a perfectly balanced assembly line. E. minimize the cost of skilled labor.
b
The phases of project management are: Part 2 A. different for manufacturing projects than for service projects. B. planning, scheduling, and controlling. C. planning, organizing, staffing, leading, and controlling. D. GANTT, CPM, and PERT. E. planning, programming, and budgeting.
b
The reason fast food restaurants often are found in close proximity to each other is: Part 2 A. availability of skilled labor. B. location clustering near high traffic flows. C. low cost. D. they enjoy competition. E. All of the above.
b
When making a location decision at the country level, which of these would be considered? Part 2 A. land/construction costs B. location of markets C. air, rail, highway, waterway systems D. zoning restrictions E. corporate desires
b
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? Part 2 A. design of goods and services B. process and capacity design C. human resources and job design D. managing quality
b
A project organization works best for an organization when the project resides in only one of its functional areas. Part 2 True False
false
Which of the following is NOT a characteristic of services? Part 2 A. unique B. standardized product C. intangible D. produced and consumed simultaneously
b
Which of the following is most likely to affect the location strategy of a manufacturing firm? Part 2 A. parking availability B. utility costs C. competition in the area D. appearance/image of the area E. purchasing power of drawing area
b
A jewelry store is more likely than a jewelry manufacturer to consider ________ in making a location decision. Part 2 A. transportation costs B. quality of life C. appearance/image of the location D. cost of raw materials E. taxes
c
A location decision for a traditional department store (Macy's) would tend to have a(n): a. cost focus b. labor focus c. revenue focus d. environmental focus e. education focus
c
A regional bookstore chain wants to build a distribution center that is centrally located for its eight retail outlets. It will most likely employ which of the following tools of analysis? Part 2 A. assembly line balancing B. linear programming C. center-of-gravity method D. locational cost-volume analysis E. load-distance analysis
c
A way to identify those elements in the product/service chain that uniquely add value is referred to as Part 2 A. supply chain management. B. the resources view. C. value-chain analysis. D. the five forces model
c
Cause-and-effect diagrams are also known as Part 2 A. flowcharts. B. Pareto charts. C. fish-bone charts. D. target specification graphs.
c
Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. What is the term associated with this phenomenon? Part 2 A. legislative risk B. judicial risk C. political risk D. democratic risk E. bureaucratic risk
c
The creation of a unique advantage over competitors is referred as Part 2 A. response. B. differentiation. C. competitive advantage. D. experience differentiation.
c
The economic activities that typically produce an intangible product are referred to as Part 2 A. products. B. goods. C. services. D. phantoms.
c
The fundamental difference between cycles and seasonality is the: Part 2 A. magnitude of the variation. B. ability to attribute the pattern to a cause. C. duration of the repeating patterns. D. All of the above. E. None of the above.
c
The service sector constitutes what percentage of employment in the United States? Part 2 A. between 70% to 80% B. between 50% to 60% C. between 80% to 90% D. between 60% to 70%
c
What is the percentage defective in an average lot of goods inspected through acceptance sampling? Part 2 A. LTPD B. OC curve C. AOQ D. AQL
c
Which of the following best defines scheduling? Part 2 A. Determines and implements intermediate- and short-term schedules that effectively and efficiently utilize personnel while meeting customer demands. B. Determines and implements long- and short-term schedules that effectively and efficiently utilize personnel while meeting customer demands. C. 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 long- and short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands.
c
Which of the following does not represent competing on response? Part 2 A. based on quickness B. concerned with reliability of scheduling C. based on providing uniqueness D. based on flexibility
c
Which of the following is the Japanese term used to describe continuous improvement efforts? Part 2 A. six sigma B. poka-yoke C. kaizen D. kanban
c
Which of the following methods best considers intangible costs related to a location decision? Part 2 A. crossover methods B. center-of-gravity method C. factor-rating method D. the transportation method E. locational cost-volume analysis
c
Traffic counts and demographic analysis of drawing area are associated with: Part 2 A. the center-of-gravity method. B. manufacturing location decisions. C. the transportation model. D. service location decisions. E. locational cost-volume analysis.
d
Which of the following statements regarding CPM is true? Part 2 A. All activities on the critical path have their LS equal to the maximum EF of all immediate predecessors. B. The critical path is that set of activities that has positive slack. C. The critical path is the shortest of all paths through the network. D. All activities on the critical path have their ES equal to their LF. E. Some networks have no critical path.
c
Which of the following statements regarding critical paths is true? Part 2 A. Every network has only one critical path. B. The shortest of all paths through the network is the critical path. C. On a specific project, there can be multiple critical paths, all with exactly the same duration. D. Some activities on the critical path may have slack. E. The duration of the critical path is the average duration of all paths in the project network.
c
Which of the following techniques uses variables such as price and promotional expenditures, which are related to product demand, to predict demand? Part 2 A. moving average B. exponential smoothing C. associative models D. weighted moving average E. trend projection
c
he R-chart Part 2 A. control limits are computed using sample standard deviations. B. is used to measure changes in the central tendency. C. is used to indicate gains or losses in dispersion. D. generally uses control limits set at plus or minus 2 standard deviations of the distribution, rather than plus or minus 3, which is commonly used on the x-bar chart.
c
The R-chart Part 2 A. control limits are computed using sample standard deviations. B. is used to measure changes in the central tendency. C. is used to indicate gains or losses in dispersion. D. generally uses control limits set at plus or minus 2 standard deviations of the distribution, rather than plus or minus 3, which is commonly used on the x-bar chart.
c]C
A method managers use to evaluate the resources at their disposal and manage or alter them to achieve competitive advantage is referred as Part 2 A. value-chain analysis. B. five forces analysis. C. competitive advantage. D. resources view.
d
A successful quality strategy begins with Part 2 A. satisfying customers and obtaining a competitive advantage. B. an understanding of the principles of quality. C. engaging employees in the necessary activities to implement quality. D. an organizational culture that fosters quality.
d
Activity R on a CPM network has predecessors M and N, and has successor S. R has duration 5. N's late finish is 18, while M's is 20. S's late start is 14. Which of the following is definitely true? Part 2 A. N is a critical activity. B. S is a critical activity. C. R is critical and has zero slack. D. The set of times cannot all be possible. E. R has no slack but is not critical.
d
Disney differentiates itself by not simply having customers go on a ride, but instead immersing them in the experience. What is the name for this type of differentiation? Part 2 A. Unique differentiation B. Immersion differentiation C. Active differentiation D. Experience differentiation
d
If two variables were perfectly correlated, what would the coefficient of correlation r equal? Part 2 A. 0 B. −1 C. 1 D. B or C E. None of the above.
d
The degree or strength of a relationship between two variables is shown by the: Part 2 A. alpha. B. cumulative error. C. mean. D. coefficient of correlation. E. mean absolute deviation.
d
The main goal of retail layout is: Part 2 A. minimizing customer confusion regarding location of items. B. minimizing space required. C. minimizing storage costs. D. maximizing profitability per square foot of floor space. E. minimizing material handling cost.
d
The production process at Hard Rock Cafe does NOT include which of the following activities? Part 2 A. cooking B. placing raw materials in cold storage C. receiving D. advertising
d
The project organization works best when which of the following conditions are satisfied? I. Work tasks can be defined with a specific goal and deadline. II. The job is typical and familiar to the existing organization. III. The work contains interrelated tasks requiring specialized skills. IV. The project is temporary but unimportant to long-term organizational success. V. The project cuts across organizational lines. Part 2 A. I, II, III, IV, V B. None of the above conditions need to be satisfied. C. I, II, III, V D. I, III, V E. I, III, IV, V
d
The fixed-position layout would be MOST appropriate in which of the following settings? Part 2 A. a casual dining restaurant B. a doctor's office C. a washing machine assembly line D. a cruise ship assembly facility E. a fast-food restaurant
d
Which of the following is NOT a common TQM tool? Part 2 A. scatter diagrams B. histograms C. check sheets D. queuing models
d
Which of the following is one of the main advantages of a product−oriented layout? Part 2 A. low capital cost B. employability of highly skilled labor C. high customer exposure rates D. low variable cost per unit E. high flexibility
d
Which of the following statements regarding "proximity" in the location decision is FALSE? Part 2 A. Manufacturers want to be near customers when their product is bulky, heavy, or fragile. B. Reduction in bulk is a good reason for a manufacturer to locate near the supplier. C. Clustering among fast-food chains occurs because they need to be near high traffic flows. D. Service organizations find that proximity to suppliers is the most critical primary location factor. E. Perishability of raw materials is a good reason for manufacturers to locate near the supplier, not the customer.
d
Which operations function at a manufacturing facility strives for the efficient use of machines, space, and personnel? Part 2 A. production and inventory control B. design C. process analysis D. industrial engineering
d
Exponential smoothing may not be an appropriate method to use for the check-processing center because: A. the check-processing center's forecast is very hard to make as its processing requirements should have a very high variability. B. the check-processing center should observe a cyclical trend in its processing requirements. C. the check-processing center should observe an increasing trend in its processing requirements. D. the check-processing center should observe seasonality in its processing requirements.
d
Taguchi's quality loss function is based on a Part 2 A. linear equation. B. binomial distribution. C. negative exponential distribution. D. quadratic equation.
d
2. Service location decisions typically attempt to a. minimize costs b. consider global implications c. decrease labor costs d. be environmentally friendly e none of the above
e
A good layout requires determining: Part 2 A. capacity and space requirements. B. material handling equipment. C. environment and aesthetics. D. cost of moving between various work areas. E. All of the above.
e
Cross-docking refers to which of the following? Part 2 A. Docks are placed in the warehouse according to the direction (north, south, east, or west) from which the truck is arriving. B. Warehouse docks are designed in the shape of a cross. C. The same docks can be used either incoming or outbound shipments. D. The same dock is used to unload and then reload the same truck. E. Avoid placing materials or supplies in storage by processing them as they are received.
e
The transportation model, when applied to location analysis: Part 2 A. maximizes revenues. B. minimizes total fixed costs. C. minimizes the movement of goods. D. minimizes total transportation costs. E. minimizes total production and transportation costs.
e
The typical goal used when developing a process-oriented layout strategy is to: Part 2 A. minimize the level of operator skill necessary. B. maximize the number of different tasks that can be performed by an individual machine. C. minimize the distance between adjacent departments. D. maximize job specialization. E. minimize the material handling costs.
e
What is the primary reason why retailers tend to locate high-draw items around the periphery of the store? Part 2 A. There will be less congestion of customers than there would be in the middle. B. This arrangement allows customers to travel through the store as quickly as possible. C. More shelf space for those popular items is available around the periphery. D. It is easier to put large advertisement signs on the outside walls right next to the items. E. This arrangement will help to maximize customer exposure to other items in the store.
e
Which of the following is among the eight determinants of revenue and volume for a service firm? Part 2 A. uniqueness of the firm's and the competitors' locations B. purchasing power of the customer-drawing area C. quality of the competition D. quality of management E. All of the above.
e
Which of the following seeks the best personnel and machine utilization in repetitive or continuous production? Part 2 A. fixed position layout B. process-oriented layout C. work cell layout D. retail layout E. product-oriented layout
e
Which of these factors would be considered when making a location decision at the site level? Part 2 A. proximity to raw materials and customers B. cultural and economic issues C. cost and availability of utilities D. government rules, attitudes, stability, incentives E. zoning regulations
e