Quiz reviews for operations management

In a supermarket, a vendor's restocking the shelves every Monday morning is an example of:

A. safety stock replenishment B. economic order quantities C. reorder points D. fixed order interval E. blanket ordering D. fixed order interval

Gradual, long-term movement in time series data is called:

A. seasonal variation B. cycles C. irregular variation D. trend E. random variation D. trend

Which is not a characteristic of exponential smoothing?

A. smoothes random variations in the data B. weights each historical value equally C. has an easily altered weighting scheme D. has minimal data storage requirements E. smoothes real variations in the data B. weights each historical value equally

A technique for estimating the proportion of time a worker spends on various activities is:

A. stopwatch time study B. standard elemental (historical) times C. simultaneous motion study D. predetermined (published) time standards E. work sampling E. work sampling

Product design and choice of location are examples of _______ decisions

A. strategic B. tactical C. operational D. customer focused E. design A. strategic

Which of the following is not a characteristic of layout decisions in system design?

A. substantial investment of both money and effort B. long-term commitment C. significant impact on short-term efficiency D. usually well-received by operative personnel E. all of the above D. usually well-received by operative personne

If no variations in demand or lead time exist, the ROP will equal:

A. the EOQ B. expected usage during lead time C. safety stock D. the service level E. the EOQ plus safety stock B. expected usage during lead time

In the lean philosophy, the ideal lot size is:

A. the economic order quantity B. the economic run size C. one unit D. the capacity of the standard container E. N= (DT(1+X))/C C. one unit

Aggregate planning is capacity planning for:

A. the long range B. the intermediate range C. the short range D. typically one to three months E. typically one or more years B. the intermediate range

Production units have an optimal rate of output where:

A. total costs are minimum B. average unit costs are minimum C. marginal costs are minimum D. rate of output is maximum E. total revenue is maximum B. average unit costs are minimum

In order to use the "level capacity strategy," variations in demand are met by:

A. varying output during regular time without changing employment levels B. varying output during regular time by changing employment levels C. (a) and (b) D. using combination of inventories, overtime, part time, and back orders E. price adjustments D. using combination of inventories, overtime, part time, and back orders

Examination of the sources of supply for purchased parts or materials in order to improve performance is called:

A. vendor analysis B. value analysis C. negotiated purchasing D. reverse engineering E. Disintegration A. vendor analysis

A basic question in capacity planning is:

A. what kind is needed B. how much is needed C. when is it needed D. all of the above E. none of the above D. all of the above

The design of work systems involves:

A. work measurement B. job design C. compensation D. all of the above E. use of outside human resource consultants D. all of the above

The quality control improvement tool that resembles a "fishbone" is ________.

A. brainstorming B. check sheets C. Pareto analysis D. cause-and-effect diagrams E. fail-safe methods D. cause-and-effect diagrams

In business, forecasts are the basis for:

A. capacity planning B. budgeting C. sales planning D. production planning E. all of the above E. all of the above

Which of the following is an element of TQM?

A. continuous improvement B. competitive benchmarking C. employee empowerment D. team approach E. all of the above E. all of the above

The two most important factors in choosing a forecasting technique are:

A. cost and time horizon B. accuracy and time horizon C. cost and accuracy D. quantity and quality E. objective and subjective components C. cost and accuracy

A potential obstacle to conversion to a lean system is:

A. lack of management commitment B. lack of worker cooperation C. supplier resistance D. all of the above E. insufficient space to store the increased inventories D. all of the above

The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. Skull's president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows: Location Annual Fixed Variable Alpha 5000 200/person Beta 8000 150/person If it is estimated that thirty persons will be living in this new chapter house, what would be the Skull's annual cost savings by selecting the less costly location, rather than the more costly?

A. $0 B. $1,500 C. $200 D. $150 E. $350 B. $1,500 (5000+200*30)-(8000+150*30)= 1500

The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. Skull's president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows: Location Annual Fixed Variable Alpha 5000 200/person Beta 8000 150/person What would be total annual costs for either location at the point of indifference?

A. $13,000 B. $13,350 C. $9,000 D. $17,000 E. $19,200 D. $17,000 5000+200X = 8000+150x and solve for X, then plug in

The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results: Instructor A B C D # of Failures 13 0 11 16 What is the sample proportion of failures (p) for Prof. D?

A. 0 B. .04 C. .11 D. .13 E. .16 E. .16

Which of the following contributes to the competitive advantage enjoyed by firms using lean production?

A. Backup employees to cover for absenteeism B. 100% inspection to remove defects C. Dedicated equipment to reduce unit costs D. Safety stocks to prevent stock-outs E. Greater flexibility to cope with change E. Greater flexibility to cope with change

A time-ordered plot of representative sample statistics is called a:

A. Gantt chart B. SIMO-chart C. Control Chart D. Up-Down Matrix E. Standard deviation table C. Control Chart

Which of the following is an advantage of E-business? (I) reduction of transaction costs (II) shortened supply chain response time (III) greater customer loyalty

A. I B. II C. I and II D. II and III E. I, II, and III C. I and II

The advantages of automation include: (I) Reduced output variability. (II) Reduced variable costs. (III) Machines don't strike or file grievances. (IV) Machines are always less expensive than human labor.

A. I and IV B. II and III C. I, II, and III D. I and III E. II and IV C. I, II, and III

Which of the following is a barrier to integration of separate organizations in the supply chain? (I) conflicting objectives of the companies in the chain. (II) different level of capacity of the companies in the chain. (III) reluctance of the organizations in the chain to allow other organizations access to their data.

A. I only B. I and II C. II and III D. I and III E. I, II and III D. I and III

Which of the following is not a benefit of small lot sizes in lean systems?

A. In-process inventory is considerably less. B. Each product is produced less frequently. C. Carrying costs are reduced. D. There is less clutter in the workplace. E. Inspection and rework costs are less. B. Each product is produced less

In which type of processing system would gasoline be produced from crude oil?

A. Job Shop B. Batch C. Assembly D. Continuous E. Project D. Continuous

When the opportunity cost of lost revenue is relatively high, _________ become(s) relatively more attractive.

A. Layoffs B. Backorders C. Excess capacity D. Disaggregation E. Both B and C C. Excess capacity

When a location evaluation includes both quantitative and qualitative inputs, a technique that can be used is ___________.

A. Linear programming B. Consumer surveys C. Factor rating D. Transportation models E. Center of gravity methods C. Factor rating

Accuracy in forecasting can be measured by:

A. MSE B. MRP C. MAPE D. MTM E. A & C E. A & C

A persistent tendency for forecasts to be greater than or less than the actual values is called:

A. bias B. tracking C. control charting D. positive correlation E. linear regression A. bias

The quality control improvement tool which distinguishes between the "important few" and the "trivial many" is __________.

A. brainstorming B. check sheets C. Pareto analysis D. cause-and-effect diagrams E. fail-safe methods C. Pareto analysis

The activity which begins with a request from within the organization is:

A. Outsourcing search B. Purchasing cycle C. Supplier selection D. Order receipt E. Supply chain management B. Purchasing cycle

One form of long term team that is increasingly being used, especially in lean production settings, is:

A. Quality circle B. Product Design C. Self-directed D. Self-improvement E. Mandatory C. Self-directed

Behavioral approaches to job design include:

A. Specialization B. Ergonomics C. Job Rotation D. Flow Process Charts E. SIMO Charts C. Job Rotation

_________ has helped business concentrate on their core business.

A. Supply Chains B. Scheduling C. Outsourcing D. ERP E. Lean Production C. Outsourcing

Small changes in consumer demand can result in large variations in orders placed because of the ...

A. Supply chain B. Safety stock requirement C. Lead time effect D. Bullwhip effect E. FCFS scheduling D. Bullwhip effect

The Balanced Scorecard is a useful tool for helping managers translate their strategy into action in the following areas:

A. Sustainability; Flexibility; Efficiency; Technology B. Customers; Financial; Internal Business Processes; Learning and Growth C. Customization; Standardization; Efficiency; Effectiveness D. The Environment; The Community; Suppliers; Other Stakeholders E. Strategy; Tactics; Productivity; Profitability B. Customers; Financial; Internal Business Processes; Learning and Growth

Which of the following is a factor that affects service capacity planning?

A. The need to be near customers B. The inability to store services C. The degree of volatility of demand D. The customer's willingness to wait E. All of the above E. All of the above

Which of the following is not a benefit of using models in decision making?

A. They provide a standardized format for analyzing a problem. B. They serve as a consistent tool for evaluation. C. They are easy to use and less expensive than dealing with the actual situation. D. All of the above are benefits. E. None of the above is a benefit. D. Models are useful tools for making decisions without confronting the actual situation with all of its complexity.

Which of the following is not an information requirement for the design of a process layout?

A. a list of departments or work centers B. a projection of work flows between the work centers C. the distance between locations D. the cost per unit of distance to move loads E. a list of product cycle times for every product manufactured E. a list of product cycle times for every product manufactured

In which type of operations are you likely to see, at most, only minor variations in the product or service being produced using the same process and the same equipment?

A. a project B. a job shop C. repetitive production D. batch processing E. continuous production C. repetitive production

Utilization is defined as the ratio of:

A. actual output to effective capacity B. actual output to design capacity C. design capacity to effective capacity D. effective capacity to actual output E. design capacity to actual output B. actual output to design capacity

Aggregate planners seek to match supply and demand:

A. at minimum overall cost B. by staying within company policy C. (a) and (b) D. keeping inventories at a minimum E. all of the above C. (a) and (b)

The substitution of machinery that has sensing and control devices for human labor is best described by the term:

A. automation B. feedback control C. computer-aided manufacturing D. computer-integrated manufacturing E. flexible manufacturing system A. automation

Value added can be calculated by:

A. average productivity gains over time B. inputs divided by the outputs C. outputs divided by the inputs D. input plus output divided by two E. outputs minus inputs E. outputs minus inputs

A location analysis has been narrowed down to two locations, Akron and Boston. The main factors in the decision will be the supply of raw materials, which has a weight of .50, transportation cost, which has a weight of .40, and labor cost, which has a weight of .10. The scores for raw materials, transportation, and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should:

A. be indifferent between these locations B. choose Akron C. choose Boston D. reject both locations E. build a plant in both cities D. reject both locations

Which one of the following is not considered an important factor in service layout design?

A. cost minimization and product flow B. frequency of orders C. customer attitude and image D. all are important E. none are important A. cost minimization and product flow

The optimum level of inspection is where the:

A. cost of inspection is minimum B. cost of passing defectives is minimum C. total cost of inspection and defectives is maximum D. total cost of inspection and defectives is minimum E. difference between inspection and defectives costs is minimum D. total cost of inspection and defectives is minimum

The method for evaluating location alternatives which uses their total cost curves is:

A. cost-volume analysis B. transportation model analysis C. factor rating analysis D. linear regression analysis E. MODI analysis A. cost-volume analysis

The purpose of "cycle counting" is to:

A. count all the items in inventory B. count bicycles and motorcycles in inventory C. reduce discrepancies between inventory records and actual D. reduce theft E. count 10% of the items each month C. reduce discrepancies between inventory records and actual

In a service setting, the aggregate plan results in a time-phased projection of __________ requirements.

A. customer B. staff C. inventory D. subcontracting E. outsourcing B. staff

Aggregate planners attempt to balance:

A. demand and inventories B. demand and costs C. capacity and inventories D. capacity and costs E. capacity and demand E. capacity and demand

Which of the following is the last step in the procedure for making location decisions?

A. determine the evaluation criteria B. identify important factors C. develop location alternatives D. evaluate alternatives and make a selection E. request input regarding alternatives D. evaluate alternatives and make a selection

Averaging techniques are useful for:

A. distinguishing between random and non-random variations B. smoothing out fluctuations in time series C. eliminating historical data D. providing accuracy in forecasts E. average people B. smoothing out fluctuations in time series

In the basic EOQ model, if lead time increases from five to 10 days, the EOQ will:

A. double B. increase, but not double C. decrease by a factor of two D. remain the same E. none of the above D. remain the same

Organizations should work to improve process capability so that quality control efforts can become more ________.

A. effective B. efficient C. necessary D. unnecessary E. Widespread D. unnecessary

The purpose of control charts is to:

A. estimate the proportion of output that is acceptable B. weed out defective items C. determine if the output is within tolerances/specifications D. distinguish between random variation and assignable variation in the process E. provide meaningful work for quality inspectors D. distinguish between random variation and assignable variation in the process

The mean absolute deviation (MAD) is used 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. measure forecast accuracy

Which of the following is not a location option that management can consider in location planning?

A. expand an existing facility B. add a new location C. relocate from one location to another D. do nothing E. All are possible options. E. All are possible options.

The process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements is called:

A. fair employment practices B. idle time analysis C. line balancing D. cycle time optimization E. none of the above C. line balancing

Which of the following is not generally considered an advantage of specialization?

A. high productivity B. low wage costs C. ease of training employees D. low equipment costs E. all are advantages D. low equipment costs

Which of the following is not a characteristic of service operations?

A. intangible output B. high customer contact C. high labor content D. easy measurement of productivity E. low uniformity of output D. The productivity of service operations is often hard to measure.

The management of supply chain inventories focuses on:

A. internal inventories B. external inventories C. both internal and external inventories D. safety stock elimination E. optimizing reorder points C. both internal and external inventories

10. One area to which aggregate planning decisions relate is:

A. job sequencing B. customer order quantities C. inventory levels D. location E. layout C. inventory levels

In doing "aggregate planning" for a firm producing paint, the aggregate planners would most likely deal with:

A. just gallons of paint, without concern for the different colors and sizes B. gallons of paint, but be concerned with the different colors to be produced C. gallons, quarts, pints, and all the different sizes to be produced D. all the different sizes and all the different colors by size E. none of the above A. just gallons of paint, without concern for the different colors and sizes

A reason for the importance of capacity decisions is that capacity:

A. limits the rate of output possible B. affects operating costs C. is a major determinant of initial costs D. is a long-term commitment of resources E. all of the above E. all of the above

Which of the following is a principle required for ethical behavior in purchasing?

A. loyalty to employer. B. justice to those you deal with. C. faith in your profession. D. all of the above. E. none of the above. D. all of the above.

If the output rate is increased but the average unit costs also increase we are experiencing:

A. market share erosion. B. economies of scale. C. diseconomies of scale. D. value added accounting. E. step-function scale up. C. diseconomies of scale.

The direct result of disaggregating the aggregate plan is the:

A. marketing plan B. production plan C. rough-cut capacity plan D. master schedule E. material requirements plan D. master schedule

The two general approaches to forecasting are:

A. mathematical and statistical B. qualitative and quantitative C. judgmental and qualitative D. historical and associative E. precise and approximation B. qualitative and quantitative

Two widely used metrics of variation are the __________ and the _________.

A. mean; standard deviation B. productivity ratio; correlation C. standardized mean; assignable deviation D. randomized mean; standardized deviation E. normal distribution; random variation A. The mean and standard deviation summarize important facets regarding the variation in a process.

A factor that makes it desirable for business organizations to actively manage their supply chains is:

A. more potential vendors B. increasing globalization C. downsizing D. the internet E. RFID's B. increasing globalization

The ultimate goal of lean operations is to have:

A. no in-process inventories B. cross-trained workers capable of handling every process C. a smooth, rapid flow of materials through the system D. no setup times E. all of the above C. a smooth, rapid flow of materials through the system

The EOQ model is most relevant for which one of the following?

A. ordering items with dependent demand B. determination of safety stock C. ordering perishable items D. determining fixed interval order quantities E. determining fixed order quantities E. determining fixed order quantities

At the break-even point:

A. output equals capacity B. total cost equals total revenue C. total cost equals profit D. variable cost equals fixed cost E. variable cost equals total revenue B. total cost equals total revenue

Productivity is expressed as:

A. output plus input B. output minus input C. output times input D. output divided by input E. input divided by output D. output divided by input

Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____________ is leading to increased emphasis on ____________ management.

A. outsourcing; supply chain B. offshoring; lean C. downsizing; total quality D. optimizing; inventory E. internationalization; intercultural A. Supply chain management takes a more systemic view of the firm, its operations, and its suppliers.

Which of the following is not a basic option for altering the availability of capacity in a service environment?

A. overtime B. hiring/layoff C. part time D. inventory E. All of these are basic capacity options. D. inventory

A control chart used to monitor the fraction of defectives generated by a process is the:

A. p-chart B. R-chart C. x-bar chart D. c-chart E. Gantt chart A. p-chart

A control chart used to monitor the process mean is the:

A. p-chart B. R-chart C. x-bar chart D. c-chart E. Gantt chart C. x-bar chart

A process results in a few defects occurring in each unit of output. Long-run, these defects should be monitored with ___________.

A. p-charts B. c-charts C. x-bar charts D. r-charts E. o-charts B. c-charts

The method of financial analysis which focuses on the length of time it takes to recover the initial cost of an investment is:

A. payback B. net present value C. internal rate of return D. queuing E. cost-volume A. payback

What is credited with gains in industrial productivity, increased standards of living and affordable products?

A. personal computers B. the internet C. mass transportation D. assembly lines E. multi-level marketing D. Mass production has played a prominent role in increasing standards of living.

The process of comparing outputs to previously established standards to determine if corrective action is needed is called:

A. planning B. directing C. controlling D. budgeting E. disciplining C. Controls are used to maintain performance

The responsibilities of the operations manager are:

A. planning, organizing, staffing, procuring, and reviewing B. planning, organizing, staffing, directing, and controlling C. forecasting, designing, planning, organizing, and controlling D. forecasting, designing, operating, procuring, and reviewing E. designing and operating B. The scope of operations management ranges across the organization.

Measurements taken at various points in the transformation process for control purposes are called:

A. plans B. directions C. controls D. feedback E. budgets D. Feedback is used to monitor and improve processes.

Standard times derived from a firm's historical data are known as:

A. predetermined times B. MTM C. work sampling times D. judgmental times E. standard elemental times E. standard elemental times

The range chart (R-chart) is most likely to detect a change in:

A. proportion B. mean C. number defective D. variability E. sample size D. variability

A quality circle is ________.

A. responsible for quality B. total quality control C. an inspection stamp found on meat D. a voluntary group of employees E. none of the above D. a voluntary group of employees