OPS 301 Test 1
The critical path can be determined by use of either the "forward pass" or the "backward pass."
False
The larger the number of periods in the simple moving average forecasting method, the greater the method's responsiveness to changes in demand.
False
The shortest of all paths through the network is the critical path.
False
What does a state of nature node look like?
A circle
Which of the following values of alpha would cause exponential smoothing to respond the SLOWEST to forecast errors? A. 0.10 B. 0.90 C. 0.50 D. 0.2246 E. cannot be determined
A. 0.10
Given an actual demand this period of 103, a forecast value for this period of 99, and an alpha of 0.4, what is the exponential smoothing forecast for next period? A. 100.6 B. 94.6 C. 97.4 D. 101.6 E. 103.0
A. 100.6
Which of the following is NOT considered a step in the decision-making process? A. Minimize costs whenever possible. B. Clearly define the problem and the factors that influence it. C. Select the best alternative. D. Evaluate each alternative solution based on its merits and drawbacks. E. Develop specific and measurable objectives.
A. Minimize costs whenever possible.
Which is NOT true regarding differences between goods and services? A. Tangible goods are generally produced and consumed simultaneously; services are not. B. Services tend to have a more inconsistent product definition than goods. C. Services tend to have higher customer interaction than goods. D. Most goods are common to many customers; services are often unique to the final customer. E. None, i.e., all of the above are true.
A. Tangible goods are generally produced and consumed simultaneously; services are not.
A simple CPM network has three activities, A, B, and C. A is an immediate predecessor of B and of C. B is an immediate predecessor of C. The activity durations are Aequals=4, Bequals=3, Cequals=8 A. The critical path is A-B-C, duration 15. B. The critical path cannot be determined without knowing PERT expected activity times. C. The critical path is A-C, duration 12. D. The critical path is A-B-C, duration 13.5 E. The network has no critical path.
A. The critical path is A-B-C, duration 15.
Which of the following activities takes place most immediately once the mission has been developed? A. The functional areas develop their supporting missions. B. Operational tactics are developed. C. The firm develops alternative or back-up missions in case the original mission fails. D. The ten OM decision areas are prioritized. E. The functional areas develop their functional area strategies
A. The functional areas develop their supporting missions.
Which of the following statements regarding PERT times is true? A. The optimistic time estimate is an estimate of the minimum time an activity will require. B. The most likely time estimate is an estimate of the maximum time an activity will require. C. The optimistic time estimate is an estimate of the maximum time an activity will require. D. The expected time estimate is calculated as t = (a + 4m + b). E. The pessimistic time estimate is an estimate of the minimum time an activity will require.
A. The optimistic time estimate is an estimate of the minimum time an activity will require.
In a PERT network, non-critical activities that have little slack need to be monitored closely: A. because near-critical paths could become critical paths with small delays in these activities. B. because they have a high risk of not being completed. C. because they are causing the entire project to be delayed. D. because slack is undesirable and needs to be eliminated. E. because PERT treats all activities as equally important
A. because near-critical paths could become critical paths with small delays in these activities.
The first step, and a key element, in the decision-making process is to: A. clearly define the problem. B. select the best alternative. C. consult a specialist. D. monitor the results. E. develop objectives
A. clearly define the problem.
Which time-series model uses BOTH past forecasts and past demand data to generate a new forecast? A. exponential smoothing B. weighted moving average C. moving average D. trend projection E. naïve
A. exponential smoothing
A decision tree is a(n): A. graphical representation of alternatives and states of nature. B. behavioral representation of alternatives and states of nature. C. matrix representation of alternatives and states of nature. D. tabular representation of alternatives and states of nature. E. algebraic representation of alternatives and states of nature.
A. graphical representation of alternatives and states of nature
What decision criterion would be used by an optimistic decision maker solving a problem under conditions of uncertainty? A. maximax B. equally likely C. monetary value D. maximin E. minimin
A. maximax
According to the authors, which of the following strategic concepts allow firms to achieve their missions? A. differentiation, cost leadership, and response B. distinctive competency, cost leadership, and experience C. productivity, efficiency, and quality leadership D. differentiation, distinctive competency, quality leadership, and capacity E. differentiation, quality leadership, and response
A. differentiation, cost leadership, and response
A time-series trend equation is 25.3 + 2.1x. What is your forecast for period 7? A. 25.3 B. 40.0 C. 179.2 D. 27.4 E. 23.2
B. 40.0
Given an actual demand this period of 61, a forecast for this period of 58, and an alpha of 0.3, what would the forecast for the next period be using exponential smoothing? A. 57.1 B. 58.9 C. 65.5 D. 45.5 E. 61.0
B. 58.9
Which of the following statements regarding critical paths is true? A. Every network has only one critical path. B. On a specific project, there can be multiple critical paths, all with exactly the same duration. C. The shortest of all paths through the network is the critical path. D. Some activities on the critical path may have slack. E. The duration of the critical path is the average duration of all paths in the project network
B. On a specific project, there can be multiple critical paths, all with exactly the same duration.
The degree or strength of a relationship between two variables is shown by the: A. alpha. B. coefficient of correlation. C. cumulative error. D. mean absolute deviation. E. mean.
B. coefficient of correlation.
Which of the following tasks would NOT typically represent an operations management activity at Hard Rock Cafe? A. receiving a shipment of incoming food ingredients B. filing a tax return C. preparing an employee schedule D. designing an efficient layout
B. filing a tax return
The primary purpose of the mean absolute deviation (MAD) in forecasting is to: A. seasonally adjust the forecast. B. measure forecast accuracy. C. eliminate forecast errors. D. estimate the trend line. E. remove random variations.
B. measure forecast accuracy.
The total of all outputs produced by the transformation process divided by the total of the inputs is: A. utilization. B. multifactor productivity. C. single-factor productivity. D. defined only for manufacturing firms. E. greater in manufacturing than in services
B. multifactor productivity.
Which of the international operations strategies involves high cost reductions and high local responsiveness? A. worldwide strategy B. transnational strategy C. global strategy D. multidomestic strategy E. international strategy
B. transnational strategy
Expected monetary value is most appropriate for problem solving that takes place: A. when all states of nature are equally likely. B. under conditions of risk. C. when all alternatives are equally likely. D. when conditions are average. E. under conditions of uncertainty
B. under conditions of risk.
A seasonal index for a monthly series is about to be calculated on the basis of three years' accumulation of data. The three previous July values were 110, 150, and 130. The average demand over all months during the three-year time period was 190. What is the approximate seasonal index for July? A. 1.462 B. 0.487 C. 0.684 D. 2.053 E. cannot be calculated with the information given
C. 0.684
Which of these statements regarding time-cost tradeoffs in CPM networks is true? A. Crashing is not possible unless there are multiple critical paths. B. The crash time always exceeds the normal time. C. Crashing shortens the project duration by assigning more resources to one or more of the critical tasks. D. Activities not on the critical path can never be on the critical path, even after crashing. E. Crashing a project often reduces the length of long-duration, but noncritical, activities.
C. Crashing shortens the project duration by assigning more resources to one or more of the critical tasks.
Henry Ford is noted for his contributions to: A. scientific management. B. time and motion studies. C. assembly line operations. D. material requirements planning. E. statistical quality control
C. assembly line operations.
A problem that involves a sequence of decisions: A. cannot be analyzed with decision tree software. B. must be analyzed in the same order that the decisions are made. C. can be better analyzed with a decision tree than by a decision table. D. cannot be analyzed with expected monetary value. E. can only be analyzed using decision making under certainty.
C. can be better analyzed with a decision tree than by a decision table.
As compared to long-range forecasts, short-range forecasts: A. employ similar methodologies. B. are less accurate. C. deal with less comprehensive issues supporting management decisions. D. All of the above. E.None of the above.
C. deal with less comprehensive issues supporting management decisions.
For a given product demand, the time-series trend equation is 53 − 4x. The negative sign on the slope of the equation: A. implies that the cumulative error will be negative. B. implies that the coefficient of determination will also be negative. C. is an indication that product demand is declining. D. is a mathematical impossibility. E. is an indication that the forecast is biased, with forecast values lower than actual values.
C. is an indication that product demand is declining.
The expected activity time in PERT analysis is calculated as: A. the sum of the activity variances, divided by six. B. the sum of the optimistic, pessimistic, and most likely times. C. the weighted average of a, m, and b, with m weighted 4 times as heavily as a and b. D. the sum of the optimistic, pessimistic, and most likely times, divided by six. E. the simple average of the optimistic, pessimistic, and most likely times.
C. the weighted average of a, m, and b, with m weighted 4 times as heavily as a and b.
Suppose that the last four 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? A. −10 B. 9 C. 10.5 D. 3.5 E. 2
D. 3.5
An activity on a PERT network has these time estimates: optimistic = 2, most likely = 5, and pessimistic = 10. What is its expected activity time? A. 5.00 B. 10.67 C. 5.67 D. 5.33 E. 32.00
D. 5.33
Response-based competitive advantage can be: A. flexible response. B. reliable response. C. quick response. D. All of the above. E. None of the above
D. All of the above.
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
The "Father of Scientific Management" is: A. W. Edwards Deming. B. Henry Ford. C. Frank Gilbreth. D. Frederick W. Taylor. E. just a figure of speech, not a reference to a person.
D. Frederick W. Taylor.
Which of the following statements is true? A. Corporate strategy is shaped by functional strategies. B. External conditions are shaped by corporate mission. C. Functional area missions are merged to become the organizational mission. D. Functional strategies are shaped by corporate strategy. E. Corporate mission is shaped by functional strategies.
D. Functional strategies are shaped by corporate strategy.
Which of the following statements regarding PERT analysis is true? A. Project variance is the sum of all activity variances. B. Each activity has two estimates of its duration. C. Project standard deviation is the sum of all critical activity standard deviations. D. Only critical activities contribute to the project variance. E. The most likely time is equivalent to the expected activity time.
D. Only critical activities contribute to the project variance.
A decision maker who uses the maximin criterion when solving a problem under conditions of uncertainty is: A. an optometrist. B. an optimist. C. an economist. D. a pessimist. E. making a serious mistake; maximin is not appropriate for conditions of uncertainty.
D. a pessimist
The beta distribution is used in project management to: A. calculate slack for activities on the critical path. B. calculate the probability that a project will be completed within its budget. C. determine which activity should be crashed. D. calculate expected activity times. E. None of the above.
D. calculate expected activity times.
Productivity can be improved by: A. increasing inputs while holding outputs steady. B. decreasing outputs while holding inputs steady. C. increasing inputs and outputs in the same proportion. D. decreasing inputs while holding outputs steady. E. None of the above.
D. decreasing inputs while holding outputs steady.
What is the difference between the expected payoff under perfect information and the maximum expected payoff under risk? A. expected monetary value B. economic order quantity C. PERT D. expected value of perfect information E. expected monetary payoff
D. expected value of perfect information
The likelihood that a decision maker will ever receive a payoff precisely equal to the EMV when making any one decision is: A. dependent upon the number of alternatives. B. high (near 100%). C. dependent upon the number of states of nature. D. low (near 0%). E. None of the above.
D. low (near 0%).
Which productivity variable has the greatest potential to increase productivity? A. energy B. globalization C. capital D. management E. labor
D. management
What is a tabular presentation that shows the outcome for each decision alternative under the various possible states of nature called? A. isoquant table B. payback period matrix C. decision tree D. payoff table E. feasible region
D. payoff table
The two general approaches to forecasting are: A. judgmental and qualitative. B. historical and associative. C. judgmental and associative. D. qualitative and quantitative. E. mathematical and statistical.
D. qualitative and quantitative.
Increasing the number of periods in a moving average will accomplish greater smoothing, but at the expense of: A. manager understanding. B. accuracy. C. stability. D. sensitivity to real changes in the data. E. All of the above are diminished when the number of periods increases.
D. sensitivity to real changes in the data.
The time an activity will take assuming very unfavorable conditions is: A. the optimistic time. B. the minimum time. C. the activity variance. D. the pessimistic time. E. exactly twice as long as the expected time
D. the pessimistic time.
An activity on a PERT network has these time estimates: optimistic = 2, most likely = 3, and pessimistic = 8. What is its expected activity time and variance? A. 4.33; 6 B. 4.33; 1 C. 3.67; 6 D. 3.67; 1 E. None of the above.
D. 3.67; 1
If an activity whose normal duration is 13 days can be shortened to 10 days for an added cost of $1,500, what is the crash cost per period? A. $15,000 B. $1,500 C. $750 D. $13,000 E. $500
E. $500
The service sector makes up approximately what percentage of all jobs in the United States? A. 12% B. 94% C. 66% D. 40% E. 85%
E. 85%
NAFTA seeks to phase out all trade and tariff barriers between the United States and Asia.
False
Which of the following best describes experience differentiation? A. uses people's five senses to enhance the service B. immerses consumers in the delivery of a service C. complements physical elements with visual and sound elements D. consumers may become active participants in the product or service E. All of the above are elements of experience differentiation.
E. All of the above are elements of experience differentiation.
Multinational organizations can shop from country to country and cut costs through: A. lower indirect costs. B. lower taxes and tariffs. C. less stringent regulations. D. lower wage scales. E. All of the above.
E. All of the above.
The ________ distribution is used by PERT analysis to calculate expected activity times and variances. A. Gaussian B. Normal C. Binomial D. Alpha E. Beta
E. Beta
Who among the following is associated with contributions to quality control in operations management? A. Henry Ford B. Henri Fayol C. Charles Babbage D. Frank Gilbreth E. W. Edwards Deming
E. W. Edwards Deming
Which of the following techniques uses variables such as price and promotional expenditures, which are related to product demand, to predict demand? A. moving average B. weighted moving average C. exponential smoothing D. trend projection E. associative models
E. associative models
Cost minimization is an appropriate strategy in which stage of the product life cycle? A. introduction B. growth C. adolescence D. retirement E. decline
E. decline
A forecast based on the previous forecast plus a percentage of the forecast error is a(n): A. moving average forecast. B. qualitative forecast. C. naive forecast. D. weighted moving average forecast. E. exponential smoothing forecast
E. exponential smoothing forecast
Which of the international operations strategies involves low cost reductions and low local responsiveness? A. multidomestic strategy B. transnational strategy C. global strategy D. worldwide strategy E. international strategy
E. international strategy
In terms of decision theory, an occurrence or situation over which the decision maker has no control is called a(n): A. EMV. B. decision tree. C. decision under uncertainty. D. alternative. E. state of nature.
E. state of nature
Operations management is applicable: A. mostly to the manufacturing sector. B. mostly to the service sector. C. to services exclusively. D. to the manufacturing sector exclusively. E. to all firms, whether manufacturing or service.
E. to all firms, whether manufacturing or service.
The phases of project management are: A. planning, organizing, staffing, leading, and controlling. B. different for manufacturing projects than for service projects. C. GANTT, CPM, and PERT. D. planning, programming, and budgeting. E. planning, scheduling, and controlling.
E. planning, scheduling, and controlling.
If a decision maker can assign probabilities of occurrences to the states of nature, then the decision-making environment is Decision Making under Uncertainty.
False
In a regression equation where y-hat is demand and x is advertising, a coefficient of determination (R2) of .70 means that 70% of the variance in advertising is explained by demand.
False
A state of nature is an occurrence or a situation over which the decision maker has little or no control.
True
Analytic decision making is based on logic and considers all available data and possible alternatives.
True
Forecasts may be influenced by a product's position in its life cycle
True
Gantt charts give a timeline for each of a project's activities, but they do not adequately illustrate the interrelationships between the activities and the resources.
True
In PERT analysis, the identification of the critical path can be incorrect if a noncritical activity takes substantially more than its expected time.
True
In a decision tree, the expected monetary values are computed by working from right to left.
True
The expected monetary value of a decision alternative is the sum of all possible payoffs from the alternative, each weighted by the probability of that payoff occurring.
True
