OPS 301 Test 1

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The critical path can be determined by use of either the​ "forward pass" or the​ "backward pass."

False

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

False

The shortest of all paths through the network is the critical path.

False

What does a state of nature node look like?

A circle

Which of the following values of alpha would cause exponential smoothing to respond the SLOWEST to forecast​ errors? A. 0.10 B. 0.90 C. 0.50 D. 0.2246 E. cannot be determined

A. 0.10

Given an actual demand this period of​ 103, a forecast value for this period of​ 99, and an alpha of​ 0.4, what is the exponential smoothing forecast for next​ period? A. 100.6 B. 94.6 C. 97.4 D. 101.6 E. 103.0

A. 100.6

Which of the following is NOT considered a step in the​ decision-making process? A. Minimize costs whenever possible. B. Clearly define the problem and the factors that influence it. C. Select the best alternative. D. Evaluate each alternative solution based on its merits and drawbacks. E. Develop specific and measurable objectives.

A. Minimize costs whenever possible.

Which is NOT true regarding differences between goods and​ services? A. Tangible goods are generally produced and consumed​ simultaneously; services are not. B. Services tend to have a more inconsistent product definition than goods. C. Services tend to have higher customer interaction than goods. D. Most goods are common to many​ customers; services are often unique to the final customer. E. None, i.e., all of the above are true.

A. Tangible goods are generally produced and consumed​ simultaneously; services are not.

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 Aequals=​4, Bequals=​3, Cequals=8 A. The critical path is​ A-B-C, duration 15. B. The critical path cannot be determined without knowing PERT expected activity times. C. The critical path is​ A-C, duration 12. D. The critical path is​ A-B-C, duration 13.5 E. The network has no critical path.

A. The critical path is​ A-B-C, duration 15.

Which of the following activities takes place most immediately once the mission has been​ developed? A. The functional areas develop their supporting missions. B. Operational tactics are developed. C. The firm develops alternative or​ back-up missions in case the original mission fails. D. The ten OM decision areas are prioritized. E. The functional areas develop their functional area strategies

A. The functional areas develop their supporting missions.

Which of the following statements regarding PERT times is​ true? A. The optimistic time estimate is an estimate of the minimum time an activity will require. B. The most likely time estimate is an estimate of the maximum time an activity will require. C. The optimistic time estimate is an estimate of the maximum time an activity will require. D. The expected time estimate is calculated as t​ = ​(a​ + 4m​ + b​). E. The pessimistic time estimate is an estimate of the minimum time an activity will require.

A. The optimistic time estimate is an estimate of the minimum time an activity will require.

In a PERT​ network, non-critical activities that have little slack need to be monitored​ closely: A. because​ near-critical paths could become critical paths with small delays in these activities. B. because they have a high risk of not being completed. C. because they are causing the entire project to be delayed. D. because slack is undesirable and needs to be eliminated. E. because PERT treats all activities as equally important

A. because​ near-critical paths could become critical paths with small delays in these activities.

The first​ step, and a key​ element, in the​ decision-making process is​ to: A. clearly define the problem. B. select the best alternative. C. consult a specialist. D. monitor the results. E. develop objectives

A. clearly define the problem.

Which​ time-series model uses BOTH past forecasts and past demand data to generate a new​ forecast? A. exponential smoothing B. weighted moving average C. moving average D. trend projection E. ​naïve

A. exponential smoothing

A decision tree is a(n): A. graphical representation of alternatives and states of nature. B. behavioral representation of alternatives and states of nature. C. matrix representation of alternatives and states of nature. D. tabular representation of alternatives and states of nature. E. algebraic representation of alternatives and states of nature.

A. graphical representation of alternatives and states of nature

What decision criterion would be used by an optimistic decision maker solving a problem under conditions of​ uncertainty? A. maximax B. equally likely C. monetary value D. maximin E. minimin

A. maximax

According to the​ authors, which of the following strategic concepts allow firms to achieve their​ missions? A. ​differentiation, cost​ leadership, and response B. distinctive​ competency, cost​ leadership, and experience C. ​productivity, efficiency, and quality leadership D. differentiation, distinctive​ competency, quality​ leadership, and capacity E. ​differentiation, quality​ leadership, and response

A. ​differentiation, cost​ leadership, and response

A​ time-series trend equation is 25.3​ + 2.1x. What is your forecast for period​ 7? A. 25.3 B. 40.0 C. 179.2 D. 27.4 E. 23.2

B. 40.0

Given an actual demand this period of​ 61, a forecast for this period of​ 58, and an alpha of​ 0.3, what would the forecast for the next period be using exponential​ smoothing? A. 57.1 B. 58.9 C. 65.5 D. 45.5 E. 61.0

B. 58.9

Which of the following statements regarding critical paths is​ true? A. Every network has only one critical path. B. On a specific​ project, there can be multiple critical​ paths, all with exactly the same duration. C. The shortest of all paths through the network is the critical path. 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

B. On a specific​ project, there can be multiple critical​ paths, all with exactly the same duration.

The degree or strength of a relationship between two variables is shown by​ the: A. alpha. B. coefficient of correlation. C. cumulative error. D. mean absolute deviation. E. mean.

B. coefficient of correlation.

Which of the following tasks would NOT typically represent an operations management activity at Hard Rock​ Cafe? A. receiving a shipment of incoming food ingredients B. filing a tax return C. preparing an employee schedule D. designing an efficient layout

B. filing a tax return

The primary purpose of the mean absolute deviation​ (MAD) in forecasting is​ to: A. seasonally adjust the forecast. B. measure forecast accuracy. C. eliminate forecast errors. D. estimate the trend line. E. remove random variations.

B. measure forecast accuracy.

The total of all outputs produced by the transformation process divided by the total of the inputs​ is: A. utilization. B. multifactor productivity. C. ​single-factor productivity. D. defined only for manufacturing firms. E. greater in manufacturing than in services

B. multifactor productivity.

Which of the international operations strategies involves high cost reductions and high local​ responsiveness? A. worldwide strategy B. transnational strategy C. global strategy D. multidomestic strategy E. international strategy

B. transnational strategy

Expected monetary value is most appropriate for problem solving that takes​ place: A. when all states of nature are equally likely. B. under conditions of risk. C. when all alternatives are equally likely. D. when conditions are average. E. under conditions of uncertainty

B. under conditions of risk.

A seasonal index for a monthly series is about to be calculated on the basis of three​ years' accumulation of data. The three previous July values were​ 110, 150, and 130. The average demand over all months during the​ three-year time period was 190. What is the approximate seasonal index for​ July? A. 1.462 B. 0.487 C. 0.684 D. 2.053 E. cannot be calculated with the information given

C. 0.684

Which of these statements regarding​ time-cost tradeoffs in CPM networks is​ true? A. Crashing is not possible unless there are multiple critical paths. B. The crash time always exceeds the normal time. C. Crashing shortens the project duration by assigning more resources to one or more of the critical tasks. D. Activities not on the critical path can never be on the critical​ path, even after crashing. E. Crashing a project often reduces the length of​ long-duration, but​ noncritical, activities.

C. Crashing shortens the project duration by assigning more resources to one or more of the critical tasks.

Henry Ford is noted for his contributions​ to: A. scientific management. B. time and motion studies. C. assembly line operations. D. material requirements planning. E. statistical quality control

C. assembly line operations.

A problem that involves a sequence of​ decisions: A. cannot be analyzed with decision tree software. B. must be analyzed in the same order that the decisions are made. C. can be better analyzed with a decision tree than by a decision table. D. cannot be analyzed with expected monetary value. E. can only be analyzed using decision making under certainty.

C. can be better analyzed with a decision tree than by a decision table.

As compared to​ long-range forecasts,​ short-range forecasts: A. employ similar methodologies. B. are less accurate. C. deal with less comprehensive issues supporting management decisions. D. All of the above. E.None of the above.

C. deal with less comprehensive issues supporting management decisions.

For a given product​ demand, the​ time-series trend equation is 53 − 4x. The negative sign on the slope of the​ equation: A. implies that the cumulative error will be negative. B. implies that the coefficient of determination will also be negative. C. is an indication that product demand is declining. D. is a mathematical impossibility. E. is an indication that the forecast is​ biased, with forecast values lower than actual values.

C. is an indication that product demand is declining.

The expected activity time in PERT analysis is calculated​ as: A. the sum of the activity​ variances, divided by six. B. the sum of the​ optimistic, pessimistic, and most likely times. C. the weighted average of​ a, m, and​ b, with m weighted 4 times as heavily as a and b. D. the sum of the​ optimistic, pessimistic, and most likely​ times, divided by six. E. the simple average of the​ optimistic, pessimistic, and most likely times.

C. the weighted average of​ a, m, and​ b, with m weighted 4 times as heavily as a and b.

Suppose that the last four months of sales were​ 8, 10,​ 15, and 9​ units, respectively. Suppose further that the last four forecasts were​ 5, 6,​ 11, and 12​ units, respectively. What is the Mean Absolute Deviation​ (MAD) of these​ forecasts? A. −10 B. 9 C. 10.5 D. 3.5 E. 2

D. 3.5

An activity on a PERT network has these time​ estimates: optimistic​ = 2, most likely​ = 5, and pessimistic​ = 10. What is its expected activity​ time? A. 5.00 B. 10.67 C. 5.67 D. 5.33 E. 32.00

D. 5.33

​Response-based competitive advantage can​ be: A. flexible response. B. reliable response. C. quick response. D. All of the above. E. None of the above

D. All of the above.

If two variables were perfectly​ correlated, what would the coefficient of correlation r​ equal? A. 0 B. −1 C. 1 D. B or C E. None of the above.

D. B or C

The​ "Father of Scientific​ Management" is: A. W. Edwards Deming. B. Henry Ford. C. Frank Gilbreth. D. Frederick W. Taylor. E. just a figure of​ speech, not a reference to a person.

D. Frederick W. Taylor.

Which of the following statements is​ true? A. Corporate strategy is shaped by functional strategies. B. External conditions are shaped by corporate mission. C. Functional area missions are merged to become the organizational mission. D. Functional strategies are shaped by corporate strategy. E. Corporate mission is shaped by functional strategies.

D. Functional strategies are shaped by corporate strategy.

Which of the following statements regarding PERT analysis is​ true? A. Project variance is the sum of all activity variances. B. Each activity has two estimates of its duration. C. Project standard deviation is the sum of all critical activity standard deviations. D. Only critical activities contribute to the project variance. E. The most likely time is equivalent to the expected activity time.

D. Only critical activities contribute to the project variance.

A decision maker who uses the maximin criterion when solving a problem under conditions of uncertainty​ is: A. an optometrist. B. an optimist. C. an economist. D. a pessimist. E. making a serious​ mistake; maximin is not appropriate for conditions of uncertainty.

D. a pessimist

The beta distribution is used in project management​ to: A. calculate slack for activities on the critical path. B. calculate the probability that a project will be completed within its budget. C. determine which activity should be crashed. D. calculate expected activity times. E. None of the above.

D. calculate expected activity times.

Productivity can be improved​ by: A. increasing inputs while holding outputs steady. B. decreasing outputs while holding inputs steady. C. increasing inputs and outputs in the same proportion. D. decreasing inputs while holding outputs steady. E. None of the above.

D. decreasing inputs while holding outputs steady.

What is the difference between the expected payoff under perfect information and the maximum expected payoff under​ risk? A. expected monetary value B. economic order quantity C. PERT D. expected value of perfect information E. expected monetary payoff

D. expected value of perfect information

The likelihood that a decision maker will ever receive a payoff precisely equal to the EMV when making any one decision​ is: A. dependent upon the number of alternatives. B. high​ (near 100%). C. dependent upon the number of states of nature. D. low​ (near 0%). E. None of the above.

D. low​ (near 0%).

Which productivity variable has the greatest potential to increase​ productivity? A. energy B. globalization C. capital D. management E. labor

D. management

What is a tabular presentation that shows the outcome for each decision alternative under the various possible states of nature​ called? A. isoquant table B. payback period matrix C. decision tree D. payoff table E. feasible region

D. payoff table

The two general approaches to forecasting​ are: A. judgmental and qualitative. B. historical and associative. C. judgmental and associative. D. qualitative and quantitative. E. mathematical and statistical.

D. qualitative and quantitative.

Increasing the number of periods in a moving average will accomplish greater​ smoothing, but at the expense​ of: A. manager understanding. B. accuracy. C. stability. D. sensitivity to real changes in the data. E. All of the above are diminished when the number of periods increases.

D. sensitivity to real changes in the data.

The time an activity will take assuming very unfavorable conditions​ is: A. the optimistic time. B. the minimum time. C. the activity variance. D. the pessimistic time. E. exactly twice as long as the expected time

D. the pessimistic time.

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​? A. 4.33; 6 B. ​4.33; 1 C. ​3.67; 6 D. ​3.67; 1 E. None of the above.

D. ​3.67; 1

If an activity whose normal duration is 13 days can be shortened to 10 days for an added cost of​ $1,500, what is the crash cost per​ period? A. ​$15,000 B. ​$1,500 C. ​$750 D. ​$13,000 E. $500

E. $500

The service sector makes up approximately what percentage of all jobs in the United​ States? A. ​12% B. ​94% C. ​66% D. 40% E. 85%

E. 85%

NAFTA seeks to phase out all trade and tariff barriers between the United States and Asia.

False

Which of the following best describes experience differentiation? A. uses​ people's five senses to enhance the service B. immerses consumers in the delivery of a service C. complements physical elements with visual and sound elements D. consumers may become active participants in the product or service E. All of the above are elements of experience differentiation.

E. All of the above are elements of experience differentiation.

Multinational organizations can shop from country to country and cut costs​ through: A. lower indirect costs. B. lower taxes and tariffs. C. less stringent regulations. D. lower wage scales. E. All of the above.

E. All of the above.

The​ ________ distribution is used by PERT analysis to calculate expected activity times and variances. A. Gaussian B. Normal C. Binomial D. Alpha E. Beta

E. Beta

Who among the following is associated with contributions to quality control in operations​ management? A. Henry Ford B. Henri Fayol C. Charles Babbage D. Frank Gilbreth E. W. Edwards Deming

E. W. Edwards Deming

Which of the following techniques uses variables such as price and promotional​ expenditures, which are related to product​ demand, to predict​ demand? A. moving average B. weighted moving average C. exponential smoothing D. trend projection E. associative models

E. associative models

Cost minimization is an appropriate strategy in which stage of the product life​ cycle? A. introduction B. growth C. adolescence D. retirement E. decline

E. decline

A forecast based on the previous forecast plus a percentage of the forecast error is​ a(n): A. moving average forecast. B. qualitative forecast. C. naive forecast. D. weighted moving average forecast. E. exponential smoothing forecast

E. exponential smoothing forecast

Which of the international operations strategies involves low cost reductions and low local​ responsiveness? A. multidomestic strategy B. transnational strategy C. global strategy D. worldwide strategy E. international strategy

E. international strategy

In terms of decision​ theory, an occurrence or situation over which the decision maker has no control is called​ a(n): A. EMV. B. decision tree. C. decision under uncertainty. D. alternative. E. state of nature.

E. state of nature

Operations management is​ applicable: A. mostly to the manufacturing sector. B. mostly to the service sector. C. to services exclusively. D. to the manufacturing sector exclusively. E. to all​ firms, whether manufacturing or service.

E. to all​ firms, whether manufacturing or service.

The phases of project management​ are: A. ​planning, organizing,​ staffing, leading, and controlling. B. different for manufacturing projects than for service projects. C. ​GANTT, CPM, and PERT. D. ​planning, programming, and budgeting. E. ​planning, scheduling, and controlling.

E. ​planning, scheduling, and controlling.

If a decision maker can assign probabilities of occurrences to the states of​ nature, then the​ decision-making environment is Decision Making under Uncertainty.

False

In 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.

False

A state of nature is an occurrence or a situation over which the decision maker has little or no control.

True

Analytic decision making is based on logic and considers all available data and possible alternatives.

True

Forecasts may be influenced by a​ product's position in its life cycle

True

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.

True

In PERT​ analysis, the identification of the critical path can be incorrect if a noncritical activity takes substantially more than its expected time.

True

In a decision​ tree, the expected monetary values are computed by working from right to left.

True

The expected monetary value of a decision alternative is the sum of all possible payoffs from the​ alternative, each weighted by the probability of that payoff occurring.

True


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