BA360 Exam 1

Suppose that a firm has made the following computations for its design for disassemble: processing cost per unit = $12.00, disposal cost per unit = $6.00, resale revenue per unit = $20.00, and recycling revenue per unit = $7.00. What is the revenue retrieval for this product?

$9.00

Given an actual demand this period of 103, a forecast value for this period of 99, and an alpha of .4, what is the exponential smoothing forecast for next period?

100.6

The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. What is the productivity of the plant?

25 boxes/hr

Suppose that the last 4 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?

3.5

Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of $500 and variable costs of $15 per unit. What is the crossover point between process A and process B?

50 units

A strategy is a(n):

Action plan to achieve the mission

What is the forecast for May using a four-month moving average? Nov = 39, Dec = 36, Jan = 40, Feb = 42, Mar = 48, April = 46

Answer: 44

Short range forecasts tend to ____________ long range forecasts?

Be more accurate than

Which of the following most requires long-range forecasting (as opposed to short-range or medium range forecasting) for its planning purposes?

Capital Expenditure

Which of the following uses three types of participants: decision makers, staff personnel, and respondents?

Delphi Method

Which of the following has progressed the FURTHEST along its product life cycle?

Drive-through restaurants

The three major types of forecasts used by organizations in planning future operations are:

Economic, technological and demand

A naive forecast for September sales of a product would be equal to the forecast of August. T/F

False

An organization's strategy is the purpose or rationale for its existence. T/F

False

Customer interaction is often high for manufacturing processes, but low for services. T/F

False

Forecasts of individual products tend to be more accurate than forecasts of product families. T/F

False

Henry Ford is known as the Father of Scientific Management. T/F

False

Managerial decision-making that considers environment, societal, and financial impacts is known as sustainability. T/F

False

Meeting the needs of the present without compromising the ability of future generations to meet their needs is known as corporate social responsibility. T/F

False

SWOT analysis is a method of determining external strengths and weaknesses and internal opportunities and threats. T/F

False

UPS plans its truck routes with the fewest possible right turns. T/F

False

Which of the following companies use a mass customization approach?

Frito-Lay and Invisalign

Which of the following statements is true?

Functional strategies are shaped by corporate strategy

a product-focused process is commonly used to produce:

High volume, low variety products

Porter's Five Forces Model is used to evaluate competition based on which 5 aspects?

Immediate rivals, potential entrants, customers, suppliers, and substitute products

Which of the following influences layout design?

Inventory requirements, capacity needs, personnel levels, technology

What refers to analysis of environmental impacts of products from the design stage through end-of-life?

Life cycle assessment

Which productivity variable has the greatest potential to increase productivity?

Management

Which of the following are the primary functions of all organizations?

Marketing, production/operations, and finance/accounting

Which of the following is not a type of qualitative forecasting?

Moving average

An operations manager is performing a factor-rating analysis to help him choose an outsourcing provider. Based on the scores provided in the table below, which provider should be chosen?

Phi (Phil? answer was cutoff)

Which of the following is one of the 10 strategic operations management decisions?

Process and capacity design

Value chain analysis can be used to determine if a business is adding unique value in which of the following areas?

Product research, human resources, process innovation, quality management

What are the 3 R's for sustainability?

Reduce, reuse and recycle

Resources held by the public are also said to be held in what?

The Common

Which of the following statements about organized missions is FALSE?

They are formulated after strategies are known

A design for disassembly cost-benefit analysis compares the amount of revenue that might be reclaimed against the cost of disposing of the product at its end-of-life. T/F

True

A time-series model uses a series of past data points to make the forecast. T/F

True

All organizations, including service firms such as banks and hospitals, have a production function. T/F

True

Demand forecasts serve as inputs to financial, marketing, and personnel planning. T/F

True

Forecasts may be influenced by a product's position in its life cycle. T/F

True

Operations management is the set of activities that creates value in the form of goods and services by transforming inputs and outputs. T/F

True

Service blueprinting is a process analysis technique that focuses on the customer and the provider's interaction with the customer. T/F

True

Social and environmental sustainability do not exist without economic sustainability. T/F

True

The assembly line is a classic example of a repetitive process. T/F

True

The theory of comparative advantage 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. T/F

True

Time-function mapping is a flowchart with time added to the horizontal axis. T/F

True

Gradual upward or downward movement of data over time is called:

a trend

The 10 strategic operations management decisions include:

layout strategy, maintenance, process and capacity design, managing quality

Reasons to study operations management include:

studying how people organize themselves for productive enterprise AND learning about a costly part of the enterprise