SCMA Ch 1,2,4

Three commonly used productivity variables are: A) quality, efficiency, and low cost. B) quality, external elements, and precise units of measure. C) education, diet, and social overhead. D) technology, raw materials, and labor. E) labor, capital, and management.

E) labor, capital, and management.

Which of the following statements about time-series forecasting is true? A) It is based on the assumption that the analysis of past demand helps predict future demand. B) Because it accounts for trends, cycles, and seasonal patterns, it is always more powerful than associative forecasting. C) It is always based on the assumption that future demand will be the same as past demand. D) It makes extensive use of the data collected in the qualitative approach. E) All of the above are true.

A) It is based on the assumption that the analysis of past demand helps predict future demand.

Porter's Five Forces Model is used to evaluate competition based on which 5 aspects? A) immediate rivals, potential entrants, customers, suppliers, and substitute products B) cost, legal regulations, advertising effectiveness, potential entrants, and immediate rivals C) potential entrants, customers, suppliers, legal regulations, and cost D) immediate rivals, potential entrants, cost, substitute products, and legal regulations E) research and development, cost, legal regulations, suppliers, customers

A) immediate rivals, potential entrants, customers, suppliers, and substitute products

The purpose of NAFTA is to: A) phase out all trade and tariff barriers between the United States, Canada, and Mexico. B) provide fair and equitable tariff rates for trade between the United States, Canada, and Mexico. C) substitute cheap labor in Mexico for expensive labor in the United States. D) phase out all trade and tariff barriers between North America and South America. E) curb illegal immigration from Mexico to the United States.

A) phase out all trade and tariff barriers between the United States, Canada, and Mexico.

The service sector has lower productivity improvements than the manufacturing sector because: A) services usually are labor-intensive. B) the quality of output is lower in services than manufacturing. C) the service sector is often easy to mechanize and automate. D) the service sector uses less skilled labor than manufacturing. E) service sector productivity is hard to measure.

A) services usually are labor-intensive.

What is a global network of organizations and activities that supply a firm with goods and services? A) supply chain B) supply tree C) vendor network D) vendor tree E) provider network

A) supply chain

Which of the following statements is most correct? A) KSFs are often sufficient, but not necessary for competitive advantage. B) KSFs are often necessary, but not sufficient for competitive advantage. C) KSFs are neither necessary nor sufficient for competitive advantage. D) KSFs are both necessary and sufficient for competitive advantage. E) None of the above statements is correct.

B) KSFs are often necessary, but not sufficient for competitive advantage.

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

B) associative models

The forecasting technique that pools the opinions of a group of experts or managers is known as: A) management coefficients. B) jury of executive opinion. C) the expert judgment model. D) multiple regression. E) market survey.

B) jury of executive opinion.

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

C) W. Edwards Deming

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

C) differentiation, cost leadership, and response

The three major types of forecasts used by organizations in planning future operations are: A) causal, time-series, and seasonal. B) strategic, tactical, and operational. C) economic, technological, and demand. D) departmental, organizational, and territorial. E) exponential smoothing, Delphi, and regression.

C) economic, technological, and demand.

An SWOT analysis determines: A) external strengths and weaknesses and external opportunities and threats. B) internal strengths and opportunities and external weaknesses and threats. C) internal strengths and weaknesses and external opportunities and threats. D) internal strengths and weaknesses and internal opportunities and threats. E) external strengths and weaknesses and internal opportunities and threats.

C) internal strengths and weaknesses and external opportunities and threats.

Which of the following are the primary functions of all organizations? A) marketing, human resources, and finance/accounting B) production/operations, marketing, and human resources C) marketing, production/operations, and finance/accounting D) research and development, finance/accounting, and purchasing E) sales, quality control, and production/operations

C) marketing, production/operations, and finance/accounting

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

C) measure forecast accuracy.

Outsourcing is simply an extension of the long-standing practice of: A) postponement. B) exporting. C) subcontracting. D) importing. E) e-procurement.

C) subcontracting.

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

C) to all firms, whether manufacturing or service.

9) 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

10) Which of the following statements is most correct? A) KSFs are often sufficient, but not necessary for competitive advantage. B) KSFs are neither necessary nor sufficient for competitive advantage. C) KSFs are both necessary and sufficient for competitive advantage. D) KSFs are often necessary, but not sufficient for competitive advantage. E) None of the above statements is correct.

D) KSFs are often necessary, but not sufficient for competitive advantage.

Gradual upward or downward movement of data over time is called: A) random variation. B) exponential variation. C) a cycle. D) a trend. E) seasonality.

D) a trend.

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

D) associative models

10) 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) trend projection. C) slope. D) bias. E) adaptive smoothing

D) bias.

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) trend projection. C) slope. D) bias. E) adaptive smoothing.

D) bias.

The fundamental purpose of an organization's mission statement is to: A) create a good human relations climate in the organization. B) define the functional areas required by the organization. C) generate good public relations for the organization. D) define the organization's purpose in society. E) define the operational structure of the organization.

D) define the organization's purpose in society.

Which of the following is NOT a typical service attribute? A) intangible product B) simultaneous production and consumption C) difficult to resell D) easy to store E) customer interaction is high

D) easy to store

A fundamental distinction between trend projection and linear regression is that: A) trend projection uses least squares while linear regression does not. B) only linear regression can have a negative slope. C) trend projection uses two smoothing constants, not just one. D) 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. E) trend projection can be a function of several variables, while linear regression can only be a function of one variable.

D) 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.

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) worldwide strategy

D) multidomestic strategy

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

D) multifactor productivity.

Which time-series model below assumes that demand in the next period will be equal to the most recent period's demand? A) weighted moving average approach B) moving average approach C) trend projection D) naïve approach E) exponential smoothing approach

D) naïve approach

What are the five elements in the management process? A) accounting, finance, marketing, operations, and management B) plan, lead, organize, manage, and control C) plan, direct, update, lead, and supervise D) plan, organize, staff, lead, and control E) organize, plan, control, staff, and manage

D) plan, organize, staff, lead, and control

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

D) qualitative and quantitative.

The tracking signal is the: A) MAD. B) standard error of the estimate. C) MAPE. D) ratio of cumulative error / MAD. E) absolute deviation of the last period's forecast.

D) ratio of cumulative error / MAD.

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

E) All of the above are diminished when the number of periods increases.

Current challenges in operations management include all of the following EXCEPT: A) mass customization. B) just-in-time performance. C) rapid product development. D) empowered employees. E) None of the above are exceptions, i.e., all are current challenges.

E) None of the above are exceptions, i.e., all are current challenges.

A strategy is a(n): A) simulation used to test various product line options. B) broad statement of purpose. C) plan for cost reduction. D) set of opportunities in the marketplace. E) action plan to achieve the mission.

E) action plan to achieve the mission.

Cost cutting in international operations can take place because of: A) lower wage scales. B) lower taxes and tariffs. C) lower indirect costs. D) less stringent regulations. E) all of the above.

E) all of the above.

The 10 strategic operations management decisions include: A) managing quality. B) maintenance. C) layout strategy. D) process and capacity design. E) all of the above.

E) all of the above.

Short-range forecasts tends to ________ longer-range forecasts. A) have about the same level of accuracy as B) employ the same methodologies as C) deal with more comprehensive issues than D) be less accurate than E) be more accurate than

E) be more accurate than

What theory implies 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 outsourcing B) theory of competitive advantage C) theory of core competencies D) theory of offshoring E) theory of comparative advantage

E) theory of comparative advantage

Key success factors and core competencies are synonyms. True or False

False