OMPT 303: Test 1

Last quarter, a retailer sold 8,000 T-shirts, 7,000 of which were sold directly from on-hand inventory. This retailer's fill rate was ________ percent. A. 88 B. 80 C. 70 D. 56 E. 114

A. 88

Suppose a country's productivity last year was 84. If this country's productivity growth rate of 5 percent is to be maintained, this means that this year's productivity will have to be: A. 88.2. B. 79.8. C. 82.8. D. 78.9. E. 4.2.

A. 88.2.

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. outsourcing; supply chain

Which of the following refers to service and production processes that use resources in ways that do not harm ecological systems? A. sustainability B. supportability C. marketability D. perishability E. transportability

A. sustainability

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.

Doctor J. is considering purchasing a new blood analysis machine to test for HIV; it will cost $60,000. He estimates that he could charge $25.00 for an office visit to have a patient's blood analyzed, while the actual cost of a blood analysis would be $5.00. What would be his profit if he were to perform 5,000 HIV blood analyses? A. $0 B. $40,000 C. $60,000 D. $25,000 E. $100,000

B. $40,000

The weekly output of a production process is shown below, together with data for labor and material inputs. The standard inventory value of the output is $100 per unit. Overhead is charged weekly at the rate of $11,500 plus 0.5 times direct labor cost. Assume a 40-hour week and an hourly wage of $15. Material cost is $10 per running foot. What is the multifactor productivity for this process in week 1? (Note: the multifactor productivity in this question has no unit, and you only need to calculate for week 1.) Week Output #Workers Material(ft) 1 400 5 400 2 350 5 410 A. 1 B. 2 C. 3 D. 4 E. 5

B. 2

Doctor J. is considering purchasing a new blood analysis machine to test for HIV; it will cost $60,000. He estimates that he could charge $25.00 for an office visit to have a patient's blood analyzed, while the actual cost of a blood analysis would be $5.00. If this new blood analysis machine has design and effective capacities of 6,000 and 5,000 blood analyses per year, respectively, and Dr. J. expects to perform 4,500 HIV blood analyses each year, what will be the utilization of this machine? A. 0 percent B. 75 percent C. 83 percent D. 90 percent E. 100 percent

B. 75 percent

We have four shipping alternatives. The shipping cost of alternative 1 is $10, and the shipping time is 8 days. The shipping cost of alternative 2 is $11, and the shipping time is 6 days. The shipping cost of alternative 3 is $20, and the shipping time is 4 days. The shipping cost of alternative 4 is $22, and the shipping time is 2 days. The per-year holding cost is $365. Which shipping alternative should be used? A. Alternative 1. B. Alternative 2. C. Alternative 3. D. Alternative 4.

B. Alternative 2.

The fact that a few improvements in a few key areas of operations will have more impact than many improvements in many other areas is consistent with the: A. Irwin phenomenon. B. Pareto phenomenon. C. Stevenson phenomenon. D. Adam Smith phenomenon.

B. Pareto phenomenon.

Service design generally differs from product design in which of the following ways? A. Service design tends to focus on tangible factors. B. There is less latitude in detecting and correcting errors prior to delivery. C. There is a lesser requirement to be aware of competitors' offerings. D. There is less visibility to customers. E. There is no difference.

B. There is less latitude in detecting and correcting errors prior to delivery.

The website and order fulfillment are essential features of: A. delayed differentiation. B. e-commerce. C. Service providers. D. inventory balancing. E. market segmentation.

B. e-commerce.

Making plans for how products that have reached the end of their useful lives will be dealt with is the primary subject of: A. cradle-to-grave assessment. B. end-of-life programs. C. life-cycle analysis. D. three R's programs. E. process mapping.

B. end-of-life programs.

The purchasing perspective of the supplier as a partner is characterized by: A. an emphasis on low prices. B. one or a few suppliers. C. low flexibility. D. 100 percent inspection for quality. E. low volume.

B. one or a few suppliers.

In an assembly operation at a furniture factory, six employees assembled an average of 450 standard dining chairs per five-day week. What is the labor productivity of this operation? A. 90 chairs/worker/day B. 20 chairs/worker/day C. 15 chairs/worker/day D. 75 chairs/worker/day E. 60 chairs/worker/day

C. 15 chairs/worker/day

Doctor J. is considering purchasing a new blood analysis machine to test for HIV; it will cost $60,000. He estimates that he could charge $25.00 for an office visit to have a patient's blood analyzed, while the actual cost of a blood analysis would be $5.00. How many HIV blood analyses would he have to perform in order to break even? A. 12,000 B. 2,400 C. 3,000 D. 1,000 E. 5,000

C. 3,000

Doctor J. is considering purchasing a new blood analysis machine to test for HIV; it will cost $60,000. He estimates that he could charge $25.00 for an office visit to have a patient's blood analyzed, while the actual cost of a blood analysis would be $5.00. If this new blood analysis machine has design and effective capacities of 6,000 and 5,000 blood analyses per year, respectively, and Dr. J. expects to be 80 percent efficient in his use of this machine, how many HIV blood analyses does he plan to perform each year? A. 3,200 B. 4,800 C. 4,000 D. 1,000 E. 5,000

C. 4,000

Which of the following is true? A. Corporate strategy is shaped by functional strategies. B. Corporate mission is shaped by corporate strategy. C. Functional strategies are shaped by corporate strategy. D. External conditions are shaped by corporate mission. E. Corporate mission is shaped by functional strategies.

C. Functional strategies are shaped by corporate strategy.

Students at a major university must go through several registration steps. Officials have observed that it is typically the case that the waiting line at the fee-payment station is the longest. This would seem to suggest that the fee-payment station is the ___________ in the student registration process. A. capacity cushion B. first station C. bottleneck D. economy of scale

C. bottleneck

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. controlling.

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 scaleup.

C. diseconomies of scale.

The external elements of SWOT analysis are: A. strengths and weaknesses. B. strengths and threats. C. opportunities and threats. D. weaknesses and opportunities. E. strengths and opportunities.

C. opportunities and threats.

Years ago in the overnight delivery business, providing package tracking capability gave some firms a competitive advantage. Now, all firms must offer this capability simply to be in this line of business. This is an example of ______________ becoming ____________ over time. A. tactical implications; strategic B. strategic implications; tactical C. order winners; order qualifiers D. profitability factors; productivity factors E. order qualifiers; order winners

C. order winners; order qualifiers

Seasonal variations are often easier to deal with in capacity planning than random variations because seasonal variations tend to be: A. smaller. B. larger. C. predictable. D. controllable. E. less frequent.

C. predictable.

The structural approach for integrating customer requirements into every aspect of product development is known as: A. total quality management. B. customer satisfaction. C. quality function deployment. D. customer integration. E. a product development team.

C. quality function deployment.

The process of dismantling and inspecting a competitor's new or revised product for the purpose of gleaning design ideas is called: A. design by imitation. B. product analysis. C. reverse engineering. D. benchmarking. E. disassembly.

C. reverse engineering.

If one organization is better able than most to respond to changes in demands or opportunities, we say that organization exhibits higher: A. sustainability. B. efficiency. C. productivity. D. agility. E. marketability.

D. agility.

Unique attributes of firms that give them a competitive edge are called: A. functional strategies. B. Balanced Scorecards. C. supply chains. D. core competencies. E. sustainable initiatives.

D. core competencies.

The maximum possible output given a product mix, scheduling difficulties, quality factors, and so on is: A. utilization. B. design capacity. C. efficiency. D. effective capacity. E. available capacity.

D. effective capacity.

The fundamental purpose for the existence of any organization is described by its: A. policies. B. procedures. C. corporate charter. D. mission statement. E. bylaws.

D. mission statement.

Real-time information about product movement on store shelves could benefit from the use of: A. batch processing. B. economic order quantities. C. statistical process control. D. radio frequency identification tags. E. infrared remote scanners.

D. radio frequency identification tags.

Doctor J. is considering purchasing a new blood analysis machine to test for HIV; it will cost $60,000. He estimates that he could charge $25.00 for an office visit to have a patient's blood analyzed, while the actual cost of a blood analysis would be $5.00. How many HIV blood analyses would he have to perform in order to make a profit of $15,000? A. 3,000 B. 4,800 C. 5,000 D. 12,000 E. 3,750

E. 3,750

The assessment of the environmental impact of a product or service throughout its useful life is called: A. flow diagramming. B. service blueprinting. C. quality function deployment. D. process mapping. E. life cycle analysis.

E. life cycle analysis.