OM

A high value for which of the following signals that an operations manager is excelling? a. efficiency b. utilization c. effective capacity d. net present value e. design capacity

a

A simple CPM network has three activities, A, B, and C. A is an immediate predecessor of B and of C. B is an immediate predecessor of C. The activity durations are A = 4, B = 3, C = 8. a. The critical path is A-B-C, duration 15. b. The critical path is A-C, duration 12. c. The critical path is A-B-C, duration 13.5. d. The critical path cannot be determined without knowing PERT expected activity times. e. The network has no critical path.

a

Industrial location analysis typically attempts to a. minimize costs. b. maximize sales. c. focus more on human resources. d. avoid countries with strict environmental regulations. e. ignore exchange rates and currency risks.

a

The ________ is (are) the MRP input detailing which end items are to be produced, when they are needed, and in what quantities. a. master production schedule b. load report c. inventory records d. assembly time chart e. bill of material

a

The ________ is the input to material requirements planning which lists the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product. a. bill of material b. master production schedule c. inventory records d.assembly time chart e. net requirements chart

a

The phases of project management are a. planning, scheduling, and controlling. b. planning, programming, and budgeting. c. planning, organizing, staffing, leading, and controlling. d. different for manufacturing projects than for service projects. e. GANTT, CPM, and PERT.

a

Which of the following is not a key benefit of MRP? a. quality increases b. better response times to customer orders c. faster response to market changes d. improved utilization of facilities e. reduced inventory levels

a

Which of the following represents an aggressive approach to demand management in the service sector when demand and capacity are not particularly well matched? a. inexpensive rates for weekend phone calls b. appointments c. reservations d. first-come, first-served e. self-serve

a

Which of the following statements regarding the centre-of-gravity method is false? a. It is designed to minimize the maximum possible travel distance to any location. b. The optimal x- and y-coordinates are calculated separately. c. The optimal solution is unconstrained, so it could suggest a location in the middle of a body of water. d. The weights used are the quantity of goods moved to or from each location. e. The origin of the coordinate system and the scale used are arbitrary, just as long as the relative distances are correctly represented.

a

A cleaning company uses $10 of chemicals, $40 of labour, and $5 of misc. expenses for each house it cleans. After some quality complaints, the company has decided to increase its use of chemicals by 50%. By what % has multifactor productivity fallen? a. 0% b. 8.3% c. 25% d. 50% e. 0.83%

b

A furniture maker has delivered a dining set directly to the end consumer rather than to the furniture store. The furniture maker is practicing a. postponement. b. drop shipping. c. channel assembly. d. passing the buck. e. float reduction.

b

A job shop is an example of a(n) a. repetitive process. b. intermittent process. c. continuous process. d. line process. e. specialized process.

b

Currency risk is based on what assumption? a. Firms that do not continuously innovate will lose market share. b. Values of foreign currencies continually rise and fall in most countries. c. Changing product lines by reacting to every current trend may alienate the customer base. d. The value of one dollar today is greater than the value of one dollar to be received one year from now. e. The U.S. stock market fluctuates daily.

b

Effective capacity is the a. maximum output of a system in a given period. b. capacity a firm expects to achieve given the current operating constraints. c. average output that can be achieved under ideal conditions. d. minimum usable capacity of a particular facility. e. sum of all of the organization's inputs.

b

Frito-Lay is to ________ focus as Harley Davidson is to ________ focus. a. process; repetitive b. product; repetitive c. repetitive; product d. process; product e. product; mass customization

b

Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. The term associated with this phenomenon is a. bureaucratic risk. b. political risk. c. legislative risk. d. judicial risk. e. democratic risk.

b

The phrase "demand related to the demand for other products" describes a. a dependent variable. b. dependent demand. c. recursive demand. d. regression analysis. e. independent demand.

b

Utilization will always be lower than efficiency because a. effective capacity is greater than design capacity. b. effective capacity is less than design capacity. c. effective capacity equals design capacity. d. utilization and efficiency are equal in value. e. utilization is normally greater than efficiency.

b

Which of the following is one of the three phases of project management? a. forward-passing b. scheduling c. organising d. constructing e. crashing

b

Which of the following statements regarding a pull system is a. Large lots are pulled from upstream stations. b. Problems become more obvious. c. Work is pulled to the downstream stations before it is actually needed. d. Manufacturing cycle time is increased. e. None of the above are true of a pull system.

b

A grocery store is trying to find a new vendor for carrots. Its three criteria are 1. Freshness, 2. Lot Size, and 3. Cost with factor weights of .6, .1, and .3 respectively. What would a vendor with ratings of 6, 8, and 10 in the three respective categories score as a weighted total? a. 24 b. 1 c. 7.4 d. 9.8 e. none of the above

c

A hospital's layout most closely resembles which of the following? a. product oriented b. work cell c. job shop d. project e. none of the above

c

A master production schedule specifies a. the raw materials required to complete the product. b. what component is to be made, and when. c. what product is to be made, and when. d. the labour hours required for production. e. the financial resources required for production.

c

A product has demand of 4000 units per year. Ordering cost is $20 and holding cost is $4 per unit per year. The cost-minimizing solution for this product is to order a. all 4000 units at one time. b. every 20 days. c. 200 units per order. d. 10 times per year. e. none of the above.

c

Among the following choices, an operations manager might best evaluate political risk of a country by looking at which type of country ranking? a. based on competitiveness b. based on cost of doing business c. based on corruption d. based on magnitude of government social programs e. based on average duration between presidential/prime minister elections

c

Three types of processes are a. goods, services, and hybrids. b. manual, automated, and service. c. process focus, repetitive focus, and product focus. d. modular, continuous, and technological. e. input, transformation, and output.

c

What is the primary reason why retailers tend to locate high-draw items around the periphery of the store? a. More shelf space for those popular items is available around the periphery. b. There will be less congestion of customers than there would be in the middle. c. This arrangement will help to maximize customer exposure to other items in the store. d. It is easier to put large advertisement signs on the outside walls right next to the items. e. This arrangement allows customers to travel through the store as quickly as possible.

c

Which of the following is an example of competing on quick response? a. A firm produces its product with less raw material waste than its competitors. b. A firm offers more reliable products than its competitors. c. A firm's products are introduced into the market faster than its competitors' products. d. A firm utilizes is capacity more effectively than its competitors. e. A firm advertises more than its competitors.

c

Which of the following is not a reason a. Employees, machines, and suppliers produce units late. b. Customer demand is unknown. c. Employees, machines, and suppliers produce units that conform to standards. d. Engineering drawings are inaccurate. e. Drawings or specifications are incomplete.

c

Which of the following is not one of the a. overproduction b. transportation c. assignment d. defective product e. motion

c

Which of the following is specifically characterized by the elimination of waste through a focus on exactly what the customer wants? a. Just-in-time (JIT) b. Toyota Production System (TPS) c. Lean operations d. Material requirements planning (MRP) e.kanban

c

Which of the following represents a common way to manage capacity in the service sector? a. appointments b. reservations c. changes in staffing levels d. first-come, first served service rule e. "early bird" specials in restaurants

c

Which of the following statements regarding Wheeled Coach is a. Wheeled Coach has found competitive advantage through MRP. b. Wheeled Coach builds ambulances in a repetitive process. c. Wheeled Coach's MRP system allowed the company to meet tight schedules, but caused inventory to rise. d. Wheeled Coach's MRP system maintains excellent record integrity. e. Low inventory and high quality are two positive outcomes of Wheeled Coach's use of MRP.

c

Which of the following statements regarding project management is false? a. Gantt charts give a timeline for each of a project's activities, but they do not adequately illustrate the interrelationships between the activities and the resources. b. A project organization works best for a project that is temporary but critical to the organization. c. A project organization works well when the work contains simple, independent tasks. d. Gantt charts and PERT/CPM are never used together. e. All of the above are false.

c

"A special arrangement of machinery and equipment to focus on production of a single product or group of related products" describes what layout type? a. fixed-position layout b. intermittent production c. job shop d. work cell e. warehouse layout

d

A document calls for the production of 50 small garden tractors in week 1; 50 small garden tractors and 100 riding mowers in week 2; 100 riding mowers and 200 garden utility carts in week 3; and 100 riding mowers in week 4. This document is most likely a(n) a. net requirements document. b. resource requirements profile. c. aggregate plan. d. master production schedule. e. Wagner-Whitin finite capacity document.

d

Demand for a given item is said to be dependent if a. it originates from the external customer. b. there is a deep bill of material. c. the finished products are mostly services (rather than goods). d. there is a clearly identifiable parent. e. the item has several children.

d

Dependent demand and independent demand items differ in that a. for any product, all components are dependent-demand items. b. the need for independent-demand items is forecast. c. the need for dependent-demand items is calculated. d. All of the above are true. e. None of the above are true.

d

One of the similarities between process focus and mass-customization is a. the volume of outputs. b. the process layout. c. the standard cost. d. the variety of outputs. e. location of facilities.

d

Throughput measures the time a. that it takes to process one unit at a station. b. between the arrival of raw materials and the shipping of finished products. c. to produce one whole product through an empty system (i.e., with no waiting). d. required to move orders through the production process, from receipt to delivery. e. required to place an order with a supplier.

d

What is sometimes referred to as rated capacity? a. efficiency b. utilization c. effective capacity d. expected output e. design capacity

d

Which of the following statements regarding critical paths is true? a. The shortest of all paths through the network is the critical path. b. Some activities on the critical path may have slack. c. Every network has only one critical path. d. On a specific project, there can be multiple critical paths, all with exactly the same duration. e. The duration of the critical path is the average duration of all paths in the project network.

d

Which of the following workers is the most productive? a. $50 wages, 10 parts produced b. $10 wages, 1 part produced c. $30 wages, 5 parts produced d. $100 wages, 21 parts produced e. $500 wages, 100 parts produced

d

FedEx chose Memphis, Tennessee, as its U.S. hub because a. the city is in the centre of the U.S., geographically. b. the airport has relatively few hours of bad weather closures. c. it needed a means to reach cities to which it did not have direct flights. d. the firm believed that a hub system was superior to traditional city-to-city flight scheduling. e. All of the above are true.

e

Manufacturing cycle time is best defined as the a. length of the work shift, expressed in minutes per day. b. time it takes a unit to move from one workstation to the next. c. time between the start of one unit and the start of the next unit. d. sum of all the task times to make one unit of a product. e. time from raw materials receipt to finished product exit.

e

The 5Ss a. have the "flavour" of a housekeeping list. b. are a checklist for lean operations. c. have become a list of seven items in American practice. d. can be used to assist with necessary changes in organizational culture. e. All of these are true.

e

The layout strategy that deals with low-volume, a. fixed-position layout. b. retail layout. c. warehouse layout. d. office layout. e. process-oriented layout.

e

The main goal of retail layout is a. minimizing material handling cost. b. maximizing high-margin sales. c. minimizing storage costs. d. minimizing space required. e. maximizing profitability per square foot of floor space.

e

Wheeled Coach insists all of the following tasks are key to successful MRP use except a. materials plan must meet both schedule requirements and facility capabilities. b. plan must be executed as designed. c. inventory investment must be minimized. d. excellent record integrity must be maintained. e. stringent quality control.

e

Which layout's main objective is to equalize the task time for each station? a. work cell b. fixed position c. process oriented d. job shop e. product oriented

e

Which of the following industries is most likely to have low equipment utilization? a. auto manufacturing b. commercial baking c. television manufacturing d. chemical processing e. restaurants

e

Which of the following is generally found in most JIT environments? a. a push or pull system, depending upon the rate of demand b. a push system for high margin items and a pull system for low margin items c. a push system for purchased parts and a pull system for manufactured parts d. push systems e. pull systems

e

Which of the following was not a factor in determining the location of Intel's a. skilled labour availability b. U.S. laws to protect intellectual property c. tax breaks from local and regional government d. proximity to Intel's California headquarters e. lax labour laws

e

________ and ________ are to key country success factors as ________ and ________ are to key region success factors. a. Cultural issues; location of markets; site size and cost; zoning restrictions b. Exchange rates; labour availability; site size and cost; environmental impact c. Land costs; proximity to customers; labour cost; air and rail systems d. Cultural issues; proximity to customers; environmental impact; zoning restrictions. e. Labour cost; currency risk; land costs; proximity to customers

e

A dependent demand item is so called because its demand is dependent on customer preferences. True False

f

A project organization works best for an organization when the project resides in only one of its functional areas. True False

f

Generally, the objective of the location decision is to maximize the firm's profit. True False

f

In a JIT system, product inspection adds value by identifying defective items. True False

f

Utilization is the number of units a facility can hold, receive, store, or produce in a period of time. True False

f

By their very nature, projects have a limited lifetime, and that sets project management apart from the management of more traditional activities. True False

t

Design capacity is the theoretical maximum output of a system in a given period under ideal conditions. True False

t

MRP is generally practiced on items with dependent demand. True False

t

McDonald's "Made for You" kitchen system represents a strategic layout decision even though an obvious benefit of the system is a dramatic reduction in the inventory of food prepared in advance. True False

t

Operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. True False

t

Outsourcing is a form of specialization that allows the outsourcing firm to focus on its key success factors. True False

t

Political/legal change and economic change are both factors influencing market opportunities for new products. True False

t

Product storage is an example of waste, in the sense that no value is added. True False

t

The objective of layout strategy is to develop an effective and efficient layout that will meet the firm's competitive requirements. True False

t

When innovation replaces cost as a firm's focus for location decisions, the presence of other state-of-the-art firms is a plus, not a negative, for the firm's competitiveness. True False

t

The primary purpose of the mean absolute deviation (MAD) in forecasting is to a. estimate the trend line. b. eliminate forecast errors. c. measure forecast accuracy. d. seasonally adjust the forecast. e. all of the above.

c

A company that had previously sent its call centre business to India has now brought that business back to small towns in the U.S. such as Dubuque, Iowa. This is an example of a. return outsourcing b. inshoring c. outsourcing d. offshoring e. backsourcing

e

Advantages of outsourcing do not include a. cost savings. b. outside expertise. c. renewed focus on core competencies. d. gaining outside technologies. e. creating future competition.

e

Which of the international operations strategies uses import/export or licensing of existing products? a. international strategy b. global strategy c. transnational strategy d. multidomestic strategy e. transdomestic strategy

a

If a sample of items is taken and the mean of the sample is outside the control limits the process is a. out of control and the cause should be established. b. in control, but not capable of producing within the established control limits. c. within the established control limits with only natural causes of variation. d. monitored closely to see if the next sample mean will also fall outside the control limits. e. producing high quality products.

a

If the actual order quantity is the economic order quantity in a problem that meets the assumptions of the economic order quantity model, the average amount of inventory on hand a. is one-half of the economic order quantity. b. is smaller than the holding cost per unit. c. is zero. d. is affected by the amount of product cost. e. goes down if the holding cost per unit goes down.

a

Nearsourcing helps compromise a company's desire for ________ while still providing some ________. a. control; cost savings b. quality; control c. control; quality d. quality; cost savings e. political stability; quality

a

One result of concurrent engineering in product design is a. speedier product development. b. lower quality. c. less customer demand. d. higher costs. e. more defects.

a

The components, their description, and the quantity of each required to make one unit of a product are documented on a. a bill of material. b. a group technology listing. c. a route sheet. d. an engineering drawing. e. a product menu.

a

The fixed-period inventory model requires more safety stock than the fixed-quantity models because a. a stockout can occur during the review period as well as during the lead time. b. this model is used for products that have large standard deviations of demand. c. this model is used for products that require very high service levels. d. replenishment is not instantaneous. e. setup costs and holding costs are large.

a

The three stages of vendor selection, in order, are a. vendor evaluation, vendor development, and negotiations. b. vendor development, vendor evaluation, and vendor acquisition. c. introduction, growth, and maturity. d. vendor evaluation, negotiations, and vendor development. e. EDI, ERP, and ASN.

a

Which of the following is an example of a response to the global environment? a. Boeing's local sales and production b. Benneton's strict limits on design, production, and distribution c. a Chinese manufacturer, Haier, producing in China d. Ford's partnerships with GM e. Ford's partnerships with Volvo and Mazda

a

Which of the following items is mostly likely managed using a single-period order model? a. Christmas trees b. canned food at the grocery store c. automobiles at a dealership d. metal for a manufacturing process e. gas sold to a gas station

a

Which of the following statements is most correct? a. Key success factors (KSFs) are often necessary, but not sufficient for competitive advantage. b. Key success factors (KSFs) are often sufficient, but not necessary for competitive advantage. c. Key success factors (KSFs) are neither necessary nor sufficient for competitive advantage. d. Key success factors (KSFs) are both necessary and sufficient for competitive advantage. e. None of the above statements are correct.

a

Which of the following values of alpha would cause exponential smoothing to respond the most slowly to forecast errors? a. 0.10 b. 0.20 c. 0.40 d. 0.80 e. cannot be determined

a

The purpose of process control is to detect when natural causes of variation are present. True False

f

A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters as usual. When this large order is sent to the distributer, the distributer assumes the large size is a trend, not a one-time event. The distributer therefore places an even larger order with the lobsterman. This is the result of a. double marginalization. b. the bullwhip effect. c. CPFR. d. a pass-through facility. e. vendor-managed inventory.

b

Among the ethical and social challenges facing operations managers are: a. honoring financial commitments. b. maintaining a sustainable environment. c. developing low-cost products. d. providing an efficient workplace. e. all of the above.

b

An advantage of the fixed-period inventory system is that a. safety stock will be lower than it would be under a fixed-quantity inventory system. b. there is no physical count of inventory items when an item is withdrawn. c. no inventory records are required. d. orders usually are for smaller order quantities. e. the average inventory level is reduced.

b

Computer monitoring of tracking signals and self-adjustment if a signal passes a preset limit is characteristic of a. exponential smoothing including trend. b. adaptive smoothing. c. trend projection. d. focus forecasting. e. multiple regression analysis.

b

For a full-time college student, which of the following moments of truth exemplifies the customer's standard expectations? a. Your advisor made you wait, even though you had an appointment. b. Your advisor was competent, helpful, and understanding. c. You had to visit more than once to reach your academic advisor. d. Your advisor offered to work with you after regular work hours. e. Your advisor failed to keep her appointment with you.

b

Porter's Five Forces Model is used to evaluate competition based on which 5 aspects? a. research and development, cost, legal regulations, suppliers, customers b. immediate rivals, potential entrants, customers, suppliers, and substitute products c. potential entrants, customers, suppliers, legal regulations, and cost d. immediate rivals, potential entrants, cost, substitute products, and legal regulations e. none of the above

b

Quality "lies in the eyes of the beholder" is a. an unrealistic definition of quality. b. a user-based definition of quality. c. a manufacturing-based definition of quality. d. a product-based definition of quality. e. the definition proposed by the American Society for Quality.

b

The p-chart tells us whether there has been a a. gain or loss in dispersion. b. change in the percent defective in a sample. c. change in the central tendency of the process output. d. change in the number of defects in a sample. e. none of the above.

b

The proper quantity of safety stock is typically determined by a. using a single-period model. b. setting the level of safety stock so that a given stockout risk is not exceeded. c. carrying sufficient safety stock so as to eliminate all stockouts. d. multiplying the EOQ by the desired service level. e. minimizing total costs.

b

The reason behind most outsourcing failures is a. decision was rushed. b. lack of understanding and analysis before decision. c. costs were higher than predicted. d. labour was less productive than predicted. e. unable to handle increased logistic complexity.

b

The type of inspection that classifies items as being either good or defective is a. variable inspection. b. attribute inspection. c. fixed inspection. d. all of the above. e. none of the above.

b

Three broad categories of definitions of quality are a. product quality, service quality, and organizational quality. b. user-based, manufacturing-based, and product- based. c. internal, external, and prevention. d. low-cost, response, and differentiation. e. Pareto, Shewhart, and Deming.

b

Visibility throughout the supply chain is a requirement among supply-chain members for a. mutual agreement on goals. b. mutual trust. c. compatible organizational cultures. d. local optimization. e. the bullwhip effect.

b

Which of the following is not an operations strategic decision? a. maintenance b. price c. layout design d. quality e. inventory

b

Control charts for variables are based on data that come from a. acceptance sampling. b. individual items. c. averages of small samples. d. averages of large samples. e. the entire lot.

c

The last four months of sales were 8, 10, 15, and 9 units. The last four forecasts were 5, 6, 11, and 12 units. The Mean Absolute Deviation (MAD) is a. 2 b. -10 c. 3.5 d. 9 e. 10.5

c

The practice of choosing an external provider in the home country or in a nearby country is referred to as a. homeshoring. b. homesourcing. c. nearshoring. d. nearsourcing. e. backsourcing.

c

What theory states that you should allow another firm to perform work activities for your company if that company can do it more productively than you can? a. theory of competitive advantage b. theory of core competencies c. theory of comparative advantage d. theory of outsourcing e. theory of offshoring

c

Which of the following OM strategic decisions pertains to sensible location of processes and materials in relation to each other? a. supply-chain management b. goods and service design c. layout design d. inventory e. scheduling

c

Which of the following devices represents an opportunity for technology to improve security of container shipments? a. devices that identify truck and container location b. devices that sense motion c. devices that measure radiation or temperature d. devices that can communicate the breaking of a container lock or seal e. all of the above

c

Which of the following examples involves customer participation in the design of the service? a. investing in a mutual fund b. getting a chest x-ray at the hospital c. providing the stockbroker with the desired distribution of the portfolio d. seeing a movie at the theater e. eating at a fast-food restaurant

c

Which of the following statements regarding control of service inventories is true? a. Service inventory is a fictional concept, because services are intangible. b. Service inventory needs no safety stock, because there's no such thing as a service stockout. c. Effective control of all goods leaving the facility is one applicable technique. d. Service inventory has carrying costs but no setup costs. e. Good personnel selection, training, and discipline are easy.

c

Which one of the following performance measures is not true of a world class firm? a. short time placing an order b. high percentage of accepted material c. large lead time d. high percentage of on-time deliveries e. low number of shortages per year

c

Which service design technique(s) would ordinarily not be appropriate for full-service restaurant meals? a. modularizing the product b. customization as late in the process as possible c. reducing customer interaction d. the moment of truth e. All of the above are appropriate.

c

A successful quality strategy features all of the following steps a. an organization environment that fosters quality. b. understanding the principles of quality. c. engaging employees in the necessary activities for quality implementation. d. finding the lowest cost supplier. e. empowering employees.

d

According to the manufacturing-based definition of quality, a. quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost. b. quality depends on how well the product fits patterns of consumer preferences. c. even though quality cannot be defined, you know what it is. d. quality is the degree to which a specific product conforms to standards. e. quality lies in the eyes of the beholder.

d

Cost minimization is an appropriate strategy in which stage of the product life cycle? a. introduction b. growth c. adolescence d. decline e. retirement

d

If demand is not uniform and constant, then stockout risks can be controlled by a. increasing the EOQ. b. placing an extra order. c. raising the selling price to reduce demand. d. adding safety stock. e. reducing the reorder point.

d

Operations management is applicable a. mostly to the service sector. b. to services exclusively. c. mostly to the manufacturing sector. d. to all firms, whether manufacturing or service. e. to the manufacturing sector exclusively.

d

Service level is a. the chance of stocking out. b. the chance of stockpiling. c. something that should be minimized in retail. d. calculated as the cost of a shortage divided by (the cost of overage + the cost of shortage) for single- period models. e. not related to the concept of stocking out.

d

The theory of competitive advantage states that you should allow another firm to perform work activities for your company if that company can do it more productively than you can. True False

f

Suppose that demand in period 1 was 7 units and the demand in period 2 was 9 units. Assume that the forecast for period 1 was for 5 units. If the firm uses exponential smoothing with an alpha value of .20, what should be the forecast for period 3? (Round answers to two decimal places.) a. 9.00 b. 3.72 c. 9.48 d. 6.12 e. 5.00

d

The causes of variation in statistical process control are a. cycles, trends, seasonality, and random variations. b. producer's causes and consumer's causes. c. mean and range. d. natural causes and assignable causes. e. Type I and Type II.

d

The last four weekly values of sales were 80, 100, 105, and 90 units. The last four forecasts were 60, 80, 95, and 75 units. These forecasts illustrate a. qualitative methods. b. adaptive smoothing. c. slope. d. bias. e. trend projection.

d

The three classic types of negotiation strategies are a. vendor evaluation, vendor development, and vendor selection. b. Theory X, Theory Y, and Theory Z. c. many suppliers, few suppliers, and keiretsu. d. cost-based price model, market-based price model, and competitive bidding. e. vendor-managed inventory, channel assembly, blanket orders.

d

Which is not true regarding differences between goods and services? a. Services are generally produced and consumed simultaneously; tangible goods are not. b. Services tend to be more knowledge-based than goods. c. Services tend to have a more inconsistent product definition than goods. d. Goods tend to have higher customer interaction than services. e. None of the above are true.

d

Which of the following are the primary functions of all organizations? a. production/operations, marketing, and human resources b. marketing, human resources, and finance/accounting c. sales, quality control, and production/operations, d. marketing, production/operations, and finance/accounting e. research and development, finance/accounting, and purchasing

d

Which of the following is not an advantage of outsourcing? a. cost savings b. gaining outside expertise c. improving operations and service d. outsourcing core competencies e. gaining outside technology

d

Which of the following is true regarding value engineering? a. Value engineering occurs only after the product is selected and designed. b. Value engineering is the same as value analysis. c. Value engineering occurs during production when it is clear the product is a success. d. Value engineering is oriented toward improvement of design. e. Value engineering can save substantial amounts of product cost, but quality suffers.

d

Which of the following most requires long-range forecasting (as opposed to short-range or medium-range forecasting) for its planning purposes? a. job scheduling b. production levels c. cash budgeting d. capital expenditures e. purchasing

d

Which of the following scenarios illustrates a moment that exceeds the customer's expectations? a. an express mail service that guarantees overnight delivery b. a flight attendant that responds shortly after being called c. a hairdresser that cuts your hair at the right length d. a professor that contacts people in several companies to find you a job e. a bank that sends you monthly account statements

d

Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast? a. 0 (zero) b. 1 divided by the number of periods c. 0.5 d. 1.0 e. cannot be determined

d

Which of the following statements best describes the relationship between quality management and product strategy? a. Product strategy is set by top management; quality management is an independent activity. b. Quality management is important to the low-cost product strategy, but not to the response or differentiation strategies. c. High quality is important to all three strategies, but it is not a critical success factor. d. Managing quality helps build successful product strategies. e. Companies with the highest measures of quality are no more productive than other firms.

d

Which of the following statements is most accurate? a. outsourcing is shrinking; international trade is shrinking b. outsourcing is shrinking; international trade is growing c. outsourcing is growing; international trade is shrinking d. outsourcing is growing; international trade is growing e. outsourcing is holding steady, but international trade always shrinks when outsourcing grows

d

Which of the international operations strategies uses the existing domestic model globally? a. international strategy b. global strategy c. transnational strategy d. multidomestic strategy e. transdomestic strategy

d

All of the following are ethical and social challenges facing operations managers except a. honoring stakeholder commitments. b. maintaining a sustainable environment. c. efficiently developing and producing safe, quality products. d. providing a safe workplace. e. introducing new products to market.

e

New trends in operations management include a. global focus. b. mass customization. c. empowered employees. d. rapid product development. e. All of the above are new trends in operations management.

e

One use of short-range forecasts is to determine a. planning for new products. b. capital expenditures. c. research and development plans. d. facility location. e. job assignments.

e

Operations managers must be able to anticipate changes in which of the following? a. product mix b. product opportunities c. the products themselves d. product volume e. all of the above

e

Outsourcing manufacturing is also known as a. licence manufacturing. b. sublease manufacturing. c. concurrent manufacturing. d. hollow manufacturing. e. contract manufacturing.

e

Plots of sample ranges indicate that the most recent value is below the lower control limit. What course of action would you recommend? a. Since there is no obvious pattern in the measurements, variability is in control. b. One value outside the control limits is insufficient to warrant any action. c. Lower than expected dispersion is a desirable condition; there is no reason to investigate. d. The process is out of control; reject the last units produced. e. Variation is not in control; investigate what created this condition.

e

The "bullwhip" effect a. occurs as orders are relayed from retailers to wholesalers. b. results in increasing fluctuations at each step of the sequence. c. increases the costs associated with inventory in the supply chain. d. occurs because of distortions in information in the supply chain. e. all of the above.

e

The field of operations management is shaped by advances in which of the following fields? a. chemistry and physics b. industrial engineering and management science c. biology and anatomy d. information technology e. all of the above

e

Which of the following is not true about an organization's a. It will have long-run impact on efficiency and flexibility of production. b. It is the same as its transformation strategy. c. It must meet various constraints, including cost. d. It is concerned with how resources are transformed into goods and services. e. It is not concerned with volume of output.

e

Which of the following shows in schematic form how a product is assembled? a. an engineering drawing b. an assembly routing c. a route sheet d. a process sheet e. an assembly chart

e

"How much inventory of this item should we have?" is within the critical decision area of managing quality. True False

f

A normal distribution is generally described by its two parameters: the mean and the range. True False

f

A product will always be in the same stage of its product life cycle regardless of the country. True False

f

According to the global company profile, Amazon.com's advantage in inventory management comes from its almost fanatical use of economic order quantity and safety stock calculations. True False

f

Computer-aided design (CAD) refers to the use of specialized computer programs to direct and control manufacturing equipment. True False

f

Customer interaction is often high for manufacturing processes, but low for services. True False

f

Managers at Arnold Palmer Hospital take quality so seriously that the hospital is a national leader in several quality areas; therefore, continuous improvement is no longer necessary. True False

f

Modular design exists only in tangible products; it makes no sense in services. True False

f

Some business activities, such as human resources and legal processes, cannot be outsourced. True False

f

The four phases of the product life cycle are incubation, introduction, growth, and decline. True False

f

The larger the number of periods in the simple moving average forecasting method, the greater the method's responsiveness to changes in demand. True False

f

A firm's process strategy is its approach to transforming resources into goods and services. True False

t

A major challenge in inventory management is to maintain a balance between inventory investment and customer service. True False

t

All organizations, including service firms such as banks and hospitals, have a production function. True False

t

Demand (sales) forecasts serve as inputs to financial, marketing, and personnel planning. True False

t

Intermittent processes are organized around processes. True False

t

Production processes are being dispersed to take advantage of national differences in labour costs. True False

t

Security is the determinant of service quality that means freedom from danger, risk, or doubt. True False

t

Supply-chain decisions are not generally strategic in nature, because purchasing is an ordinary expense to most firms. True False

t