MGT 302 assignments 1-3 True False/Multiple choice

Which of the following is not a characteristic that distinguishes services from goods? A. Service jobs are unskilled. B. A service is intangible. C. Services are perishable D. Services are heterogeneous E. None of the above

A Many service jobs are highly skilled such as physician, attorney, airline pilot, OSCM instructor, etc. The characteristics that distinguish goods from services are: 1.Tangibility, 2.Interaction with the customer, 3.Services are heterogeneous, 4.Services are perishable and time dependent, and, 5.Services are seen as a package of features that affect the five senses

Matching the production rate to the order rate by hiring and laying off employees as the order rate varies is which of the following pure production planning strategies? A. Stable workforce, variable work hours B. Chase C. Level D. Meeting demand E. Minimizing inventory

B The chase strategy matches the production rate to the order rate by hiring and laying off employees as the order rate varies.

In business forecasting, what is usually considered a long-term time period? A.Ten years or longer B. Two years or longer C. Six months or longer D. Three months or longer E. One year or longer

B In business forecasting long term (refers to) greater than two years.

Which of the following forecasting methods can be used for short-term forecasting? A. Serial regression B. Simple exponential smoothing C. Delphi technique D. Hoskins-Hamilton smoothing E. Market research

B Refer to exhibit 3.3

In time series data depicting demand which of the following is not considered a component of demand variation? A. Trend B. Cyclical C. Variance D. Seasonal E. Autocorrelation

C Variance is a measure of the degree of error, not a component of demand variation. E.g., several common terms used to describe the degree of error are standard error, mean squared error (or variance), and mean absolute deviation.

Which of the following is not a major strategic operational competitive dimension that forms a company's competitive position? A. Cost or price B. Delivery speed C. Delivery reliability D. Management acumen E. Coping with changes in demand

D the operational competitive dimensions that form a company's competitive position are listed in the text. Management acumen is not mentioned.

A continuous process indicates production of discrete parts moving from workstation to workstation at a controlled rate.

False

Work center layouts allocate dissimilar machines into cells to work on products that have dissimilar processing requirements.

False A work center layout, sometimes referred to as a job shop, is where similar equipment or functions are grouped together,

An order winner is a set of screening criteria that permits a firm's products to be considered as possible candidates for purchase.

False An order "qualifier" is a screening criterion that permits a firm's products to even be considered as possible candidates for purchase.

The closer the customer is to the customer order decoupling point the longer it takes the customer to receive the product.

False Selection of decoupling points is a strategic decision that determines customer lead times and can greatly impact inventory investment. The closer this point is to the customer, the quicker the customer can be served.

A project layout is characterized by a relatively low number of units produced in comparison with process and product layout formats.

True

Assembling-to-order means moving the customer order decoupling point from finished goods to components.

True Assembling-to-order derives significant advantages from moving the customer order decoupling point from finished goods to components.

An example of an assemble-to-order firm is Dell Computer.

True In the assemble-to-order environment, a primary task is to define a customer's order in terms of alternative components and options since it is these components that are carried in inventory. A good example is the way Dell Computer makes desktop computers

The essential issue in satisfying customers in the make-to-stock environment is to balance the cost of the finished item against the willingness of the consumer to pay for it.

false the essential issue in satisfying customers in the make-to-stock environment is to balance the level of finished inventory against the level of service to the customer.

Heavy sales of umbrellas during a rain storm is an example of which of the following? A. A trend B. A statistical correlation C. A coincidence D. A fad E. A causal relationship

E We can expect that an extended period of rain will increase sales of umbrellas and raincoats. The rain causes the sale of rain gear. This is a causal relationship, where one occurrence causes another.

The essential issue in satisfying customers in the make-to-stock environment is to balance the level of finished inventory against the level of service to the customer.

True The essential issue in satisfying customers in the make-to-stock environment is to balance the level of finished inventory against the level of service to the customer.

One difference between an assembly line process flow and a continuous process flow is that on the assembly line the flow is discrete rather than continuous.

True A continuous process is similar to an assembly line in that production follows a predetermined sequence of steps, but the flow is continuous such as with liquids, rather than discrete.

A major aspect of planning involves developing a set of metrics to monitor the supply chain.

True A major aspect of planning is developing a set of metrics to monitor the supply chain so that it is efficient and delivers high quality and value to customers.