Practice Test #2
29. Select the best answer. The type of goods for which a responsive supply chain is appropriate are: A) fashion goods. B) products with a long shelf life. C) expensive products. D) those with infrequent design changes.
A
A company's ability to support varying rates of production is best described as: A) volume flexibility. B) variety. C) consistent quality. D) development speed.
A
A firm that uses large batch, line, or continuous-flow process most likely have: A) low-cost operations as a competitive priority. B) top quality as a competitive priority. C) flexibility as a competitive priority. D) on-time delivery as a competitive priority.
A
A manufacturer that produces standard products in large volumes is likely to be using a(n): A) make-to-stock strategy. B) make-to-order strategy. C) assemble-to-order strategy. D) engineer-to-order strategy.
A
A manufacturer that produces standard products in large volumes is likely to be using a(n): A. make-to-stock strategy. B. make-to-order strategy. C. assemble-to-order strategy. D. engineer-to-order strategy.
A
According to our lecture, Scholastic, J K Rowling and printers around the world work around the clock to release and distribute millions of books of the eagerly awaited seventh book of Harry Potter. Select the best answer. Which one of the following were not part of their actions: A) Warehouses were utilized at almost full capacity. B) Thousands of trucks and pallets of the same size were used. C) GPS transponders were used to deliver millions of individual orders simultaneously . D) Months of planning lead to big profits.
A
According to the article, "Strategy and Society", the following is NOT an example of Looking Outside In to understand the effect of external social and environmental issues to the business. A) Green procurement practices B) Local Demand Conditions C) Related and Supported Industries D) Context for Firms Strategy and Rivalry
A
As per our lecture notes, which approach to inventory may be most suited for a product that involves designing and building one residence for a unique client? A) Make-to-Order B) Make-to-Stock C) Assemble-to-Order D) Make-to-Sell
A
BBC is deciding whether to weld bicycle frames manually or to purchase a welding robot. If welded manually, investment costs for equipment are only $100. The per-unit cost of manually welding a bicycle frame is $5 per frame. On the other hand, a robot capable of performing the same work costs $400. Robot operating costs including support labor are $3 per frame. At what volume would BBC be indifferent to these alternative methods? A) 100-400/(3-5)=150 B) 400-100/(3-5)=-150 C) 400(3)-100(5)=700 D) 400(5)-100(3)=1700
A
Back offices typically emphasize: A) low cost operations and on-time delivery. B) top quality and customization. C) on-time delivery and customization. D) top quality and low cost operations.
A
Competitive priorities define the dimensions on which companies should excel in producing their products or services. Which one of the following statements is TRUE? A) A firm that competes on the dimension of volume flexibility is more likely to manufacture products that experience a seasonal demand variation. B) It is impossible for a firm to improve cost and quality simultaneously. C) A firm offering little customization cannot compete simultaneously on the dimension of consistent quality. D) A firm that competes on the dimension of customization tends to have operating systems that are inflexible.
A
Competitive priorities: A) may change over time. B) are the cost, quality, time and flexibility dimensions that a process or supply chain actually possesses and is able to deliver. C) are used to distinguish between a service that is considered and one that is actually purchased. D) are developed by a review of internal operations capabilities.
A
In response to social and political moves to discourage cigarette smoking, major cigarette manufacturers have had to diversify into other products. Identifying the pressures against smoking is an example of: A) environmental scanning. B) market segmentation. C) CSR D) mission statement development.
A
In response to social and political moves to discourage cigarette smoking, major cigarette manufacturers have had to diversify into other products. Identifying those pressures against smoking is an example of: A) environmental scanning. B) market segmentation. C) flow strategy. D) mission statement development.
A
Manufacturing processes usually have: A) physical, durable output. B) high levels of customer contact. C) output that cannot be inventoried. D) low levels of capital intensity.
A
Mass customization is adopted as a response to all of the following challenges except which one? A) Continuous processes need to operate at higher speeds to satisfy increases in customer demand. B) Customers want a personalized product or service and they want it fast. C) Firm's can't hold large inventories for all the type of products they may offer. D) Having a very large inventory is too costly and it increases the risks to end the season with excess and obsolete inventory.
A
Refer to the figure below. Which is the best statement if a company simultaneously moves from point A to point B and from point D to point C? A) The new supply chain efficiency curve is superior to the old one. B) A new business model was adopted C) The new supply chain is still inferior to the supply chain efficiency curve. D) The new performance is worse, but the costs are lower.
A
Select the best answer. The type of goods for which a responsive supply chain is appropriate are: A) fashion goods. B) products with a long shelf life. C) everyday products. D) those with infrequent design changes.
A
The first three cars I bought all fell apart around 50,000 miles. It was called planned obsolescence and no one seemed to care until companies entered the market that promised 70,000, then 80,000, and finally 100,000 warranties. What sets a great car apart from a good one now is not the quality, which is assumed, but performance, safety and fuel economy. A car that can achieve all three is highly sought after. In the automotive market, performance, safety and fuel economy are sterling examples of: A) order winners. B) the voice of the engineer. C) order qualifiers. D) the voice of the customer.
A
The process structure that best describes a waiter's position at a restaurant would be classified as: A) front office. B) back office. C) hybrid office. D) inner office.
A
Weeks of inventory and inventory turns are reflected in: A) working capital. B) operating expenses. C) cost of goods sold. D) cash flow.
A
Which location shift would qualify as centralized placement? A) from the wholesaler to the manufacturer B) from the wholesaler to the retailer C) from the manufacturer to retailer D) from the distribution center to the retailer
A
Which location shift would qualify as forward placement? A) from the manufacturer to a distribution center B) from the retailer to the wholesaler C) from the wholesaler to the manufacturer D) from the retailer to the manufacturer
A
Which of the following is NOT identified in the text as a competitive advantage of a mass customization strategy? A) improvement of the quality of parts produced B) management of customer relationships C) elimination of finished goods inventory D) an increase in perceived value of services or products
A
Which of the following is NOT one of the possible advantages of Customer Involvement presented in Lecture: A) Decreased net value to the customer B) Can mean better quality, faster delivery, greater flexibility, and lower cost C) May reduce product, shipping, and inventory costs D) May help coordinate across the supply chain
A
Which of the following is not identified in the text as a competitive advantage of a mass customization strategy? A) improvement of the quality of parts produced B) management of customer relationships C) elimination of finished goods inventory D) an increase in perceived value of services or products
A
Which of the following types of processes best describes the designing and building of a new residence: A) Make-to-Order process B) Assemble-to-Order process C) Make-to-Stock process D) Make-to-delivery process
A
Which one of the following is TRUE for supply chain management? A) Supply chain applies to both manufacturing and service organizations. B) Supply chain applies only to manufacturing because it deals with flow of materials. C) Supply chain is about suppliers and does not include distributors or customers. D) Supply chain includes any operation that deals with materials.
A
Which one of the following is true for supply chain management? A) Supply chain applies to both manufacturing and service organizations. B) Supply chain applies only to manufacturing because it deals with flow of materials. C) Supply chain is about suppliers and does not include distributors or customers. D) Supply chain includes any operation that deals with materials.
A
Which one of the following statements about process management is best? A) When customization must be high, equipment should be general purpose, and employees need to perform a broader range of duties. B) The traditional relationship between capital intensity and resource flexibility is that if one is high, so is the other. C) Creating a more capital-intensive process tends to reduce the fixed cost and raise the variable unit cost. D) Economies of scope mean that a process should be devoted to a single product or service to achieve high volumes.
A
Which one of the following statements about the relation between financial and supply-chain performance measures is TRUE? A) Longer delivery times require higher levels of working capital. B) Shorter new product development time decreases revenue. C) Higher inventory turns call for higher working capital requirements. D) Lower aggregate inventory value means higher current assets.
A
Which one of the following statements on inventory placement of finished goods is best? A) Forward placement might help reduce transportation cost. B) Forward placement is consistent with a competitive priority that calls for customization. C) Inventory pooling should be avoided when demand in various regions fluctuates month to month. D) Backward placement is consistent with a competitive priority that calls for fast delivery times.
A
A group of four staff members process 160 applications per week. They work 8 hours per day, 5 days per week. Calculate the labor productivity. A) 4 applications per hour B) 1 application per hour C) 256 policies per hour D) 100 policies per hour
B
According to our Lecture notes, Amazon defined four competitive priorities in order to compete against Wal-Mart, Target and Best Buy. Which of the following is NOT one of these priorities: A) Delivery speed B) Quality at source C) Customization D) Low Cost operations
B
According to our lecture, which are the two phases responsible for most of the total environmental footprint of Apple products? A) Manufacturing and Transportation B) Manufacturing and Product Use C) Product Use and Recycling D) Manufacturing and Facilities
B
According to the Wal-Mart case presented in class, what were the two important aspects considered by the company to fulfill its Operations Strategy? A) Full replenishment and inventory control B) Short flow times and Low Inventory levels C) Large transportation systems D) Just-In-Time delivery and an independent ordering system
B
An efficient supply chain typically has: A) a high capacity cushion. B) high inventory turns. C) supply chain partners that emphasize fast delivery time. D) supply chain partners that emphasize volume flexibility.
B
Based on the material covered in lecture, Managing Sustainable Supply Chains involves all of the following except which one?: A) Gather data on current supplier performance and use that information to screen new suppliers. B) Align the sustainability efforts of the company with its own marketing campaigns C) Engage in active supplier management utilizing ethical means. D) Provide periodic reports on the impact of supply chains on sustainability.
B
Berk-Inc. averages $10 million worth of inventory in all of its worldwide locations. They operate 50 weeks a year and each week average $5 million in sales (at cost). Their inventory turnover is: A) 1 turns. B) 25 turns. C) 10 turns. D) 2 turns.
B
If a retail store owner does not have a popular item in stock because he underestimated the forecasted sales for that item, he most likely has a challenge with: A) managing processes. B) managing customer demand. C) managing supply chains. D) managing people.
B
One of following decisions is not listed among the most important decisions on Operations Structure that allowed Wal Mart to become one of the most dominant players in the retail sector A. Adopting cross docking practices B. Develop aggressive marketing campaigns C. Adopting fast transportation system D. Establish focused locations
B
Select the BEST answer. Which one of the following statements is NOT true? A) The three main line functions of any business typically include Operations, Finance and Marketing B) Quality is always more easily measured in a service process than in a manufacturing process. C) Operations management refers to the direction and control of inputs that transform processes into products and services. D) As a functional area of a business, Operations transforms inputs into outputs.
B
Select the best answer. Which of the following characteristics is not true about Services Processes (SPs): A) The output of SPs is intangible or perishable B) SPs are more likely to have longer response times than Manufacturing Processes (MPs) C) SPs are more likely to be less capital intensive than Manufacturing Processes (MPs) D) In SPs, quality is not easily measured
B
The Customer-Contact Matrix brings together the following elements EXCEPT: A) Customer Contact B) Modularity C) Customization D) Flexible Flows
B
The following is NOT a principle of sustainable innovation A) Design Holistically B) Match customers concerns C) Be playful D) Create collaboratively
B
The framework for carrying out all of an organization's functions is: A) the competitive priority. B) the corporate strategy. C) the market analysis. D) the organizational design.
B
The process that designs and develops new products and services is called the: A) customer relationship process. B) new service development process. C) order fulfillment process. D) supplier relationship process.
B
Which of the following statements about customer involvement is best? A) In service industries, customer contact is of minor importance. B) High task divergence and flexible process flows require more flexibility of the process's employees, facilities and equipment. C) A firm that produces standardized products often seeks customer specifications. D) When customer involvement is highly customized, a process is more likely to use a standardized-services process rather than a customized-services process.
B
Which of the following statements does not represent a good match between a competitive priority, CP, and the corresponding process considerations: A) In a CP focused on Low-Cost Operations, processes must be designed and operated to make them efficient B) In a CP focused on Top Quality, processes may require a low level of customer contact C) In a CP focused on Consistent Quality, processes must be designed to meet design specifications on a consistent basis D) In a CP focused on Delivery Speed, processes must be designed to reduce lead time
B
Which of the following statements is more of a general characteristic of a manufacturing organization, as compared to a service organization? A) Short-term demand tends to be highly variable. B) Operations are more capital intensive. C) Outputs are more intangible. D) Quality is more difficult to measure.
B
Which of the following statements regarding capital intensity is NOT true? A) Capital intensity can be a prohibitive investment for low-volume operations. B) Decreased amounts of automation increase capital intensity. C) Automation refers to a system or piece of equipment that is self-regulating and self-acting. D) Leasing is a method to acquire equipment while defraying financial risk.
B
Which one is NOT one of the trends of operations management covered in class? A. Productivity Improvement B. Quality assurance C. Global Competition D. Ethical, Workforce Diversity
B
Which one of the following statements is NOT true? A) A job process has the highest level of customization of the process choices. B) Job processes generally have higher volumes than batch processes. C) In a line process, there is little variability in the products manufactured, and production and material handling equipment are often specialized. D) Petroleum refineries typically use continuous flow processes.
B
11) Budgeting, recruiting, and scheduling are examples of these types of processes. A) development B) core process C) support process D) system
C
A job process should be preferred when: A) workforce and equipment are specialized. B) products are made to stock type. C) customization is high and volume is low. D) customization is low and volume is high.
C
A primary enabler of process reengineering is: A) the service-product matrix. B) a process flow chart. C) information technology. D) employee training.
C
A producer of medical devices makes a single model that can be customized to talk in and display any of 47 different languages. This customization is performed in one of their five regional distribution centers as firm orders are received, providing an elegant example of: A) backward integration B) forward integration C) channel assembly. D) offshoring.
C
According to the class on linking competitive priorities to products and processes, particularly on the case of Southwest Airlines, which of the following is not part of the Process Planning offering considered for the company: A) No ticket reservations, no seat reservations, no meals. B) Lean processes C) Fast Baggage transfers D) Secondary airports
C
Active customer contact and personalized attention can lower cost to the customer by: A) increasing the capital intensity. B) trading fixed costs for an equivalent variable cost. C) substituting customer efforts for those of the service provider. D) lowering the level of technology involved.
C
As it relates to process management, the concept of a flexible workforce is defined as: A) a labor force that often changes in size because of hirings and firings. B) workers who are willing to work large amounts of overtime when necessary. C) workers who are capable of performing many different tasks. D) a labor force with a high turnover rate.
C
Mobile Inc. is a manufacturer that makes a generic mobile phone in five exciting colors. Once orders are received, the mobile guts are encased in the customer's choice of colored case at the factory. This approach to production is known as: A) channel assembly. B) product sourcing. C) postponement. D) lean processing.
C
Operations management is part of a production system that can be described in the following manner: Organization: inputs→processes→outputs. Which one of the following correctly describes a production system? A) airline: pilots→planes→transportation B) bank: tellers→computer equipment→deposits C) solar panel manufacturer: sand→glass forming→panel D) telephone company: satellites→cables→communication
C
People processing services require: A) a high degree of process structure. B) high capital intensity. C) physical presence. D) hybrid low volume—capital intensive operations.
C
Select the BEST answer. A process that is primarily back office is: A) a taxi driver. B) a call center agent dealing with your request. C) the payroll clerk that calculates your paycheck. D) the hostess at a fast food restaurant.
C
Select the BEST answer. Budgeting, recruiting, and scheduling are examples of a(n): A) project development. B) core process. C) support process. D) system.
C
Select the BEST answer. Which one of the following statements is NOT true? A) Process decisions are strategic in nature. B) No process can exist without at least one product or service. C) Processes, by their nature, are found only in the operations function of an organization. D) Supply chain processes are simply business processes that have either external customers or external suppliers.
C
Select the best answer. More fixed automation typically means: A) decreased labor productivity. B) longer cycle time. C) higher demand volumes. D) capability to increase the average aggregate inventory value
C
The Customer-Contact Matrix brings together the following elements EXCEPT: A) Customer Contact B) Customization C) Postponement D) Flexible Flows
C
The process that includes the activities required to produce and deliver the service or product to the customer is called the: A) customer relationship process. B) new service development process. C) order fulfillment process. D) supplier relationship process.
C
Which of the following is NOT one of the possible advantages of Customer Involvement presented in Lecture: A) Increased net value to the customer B) Can mean better quality, faster delivery, greater flexibility, and lower cost C) May increase product, shipping, and inventory costs D) May help coordinate across the supply chain
C
Which of the following statements about process choice is best? A) A batch process typically has a standard sequence of operations through the whole facility. B) Automobiles and appliances are examples of products created using a continuous flow process. C) Continuous flow processes are very capital intensive. D) A custom cake operation is an example of a batch process.
C
Which of the following statements regarding a process is NOT true? A) A process can have its own set of objectives B) A process involves a work flow that can cut across departmental boundaries C) A process does not involve a repeatable operation D) A process requires resources from several departments
C
Which of these Great Moments in Operations and Supply Chain Management did not occur in the 20th century? A. invention of the assembly line B. publication of the Toyota Production Systems book C. establishment of railroads D. strategic planning for achieving product variety
C
Which one of the following correctly describes a production system? A) Airline: pilots→planes→transportation B) Bank: tellers→computer equipment→deposits C) Furniture manufacturer: wood→sanding→chair D) Telephone company: satellites→cables→communication
C
Which one of the following statements about flexible automation is best? A) Investment cost is lower when a transfer machine handles many operations. B) Chemical processing plants and oil refineries mainly utilize programmable automation. C) It is an automatic process that can be reprogrammed to handle various products. D) It achieves top efficiency; accommodating new products is difficult and costly.
C
Which one of the following statements on the concept of gaining focus is best? A) Focused factories maximize the amount of customization. B) Small sizes of many focused factories make it difficult to compete on the basis of shorter lead times. C) Plants within plants are different operations within a facility that can have individualized competitive priorities and processes. D) Focused factories are large factories producing all the products that the company offers.
C
________ is an inventory measure obtained by dividing the average aggregate inventory value by sales per week at cost. A) Inventory turns. B) shelf life. C) weeks of supply. D) return of assets.
C
4 employees process 240 insurance policies in a week. They work 4 hours per day, 5 days per week. Calculate the Labor Productivity A. 2 policies per hour B. 12 policies per hour C. 20 policies per hour D. 3 policies per hour
D
A business focusing on increasing the efficiency of its operations is more directly addressing: A) volume flexibility. B) variety. C) consistent quality. D) low-cost.
D
A company realizes that recent layoffs at its primary customers reflect potential falling demands for its customers' products, and hence for its own products. The company has engaged in: A) flow strategy. B) market segmentation. C) mission statement redefinition. D) environmental scanning.
D
According to the textbook, all of the following statements on corporate strategy, CS, are true EXCEPT: A) The CS determines the markets the firm will serve B) The CS provides the resources to develop the firms core competences and core processes C) The CS identifies the strategy the firm will employ in international markets D) The CS follows the guidelines and strategies informed by Finance, Operations and Marketing
D
CSR stands for: A. Customer Social Responsibility B. Customer and Supplier Responsibility C. Customer and Supplier Response D. Corporate Social Responsibility
D
During lecture, an example of sustainable supply chains was presented for the textile industry. Which of the following are considered significant types of environmental impact: A) water consumption on the cotton fields. B) labor issues at the factory. C) energy efficiency at the retailers phase. D) all of the above.
D
Operations management is part of a production system that can be described in the following manner: Organization: inputs→processes→outputs. Which one of the following correctly describes a production system? A) Online store: Network→Orders→Clients B) School: assignments→computer equipment→students C) Book company: wood→books→Readers D) Mobile manufacturer: Electronic components→assembly→phones
D
Operations management, refers to the following: A) systematic design, direction, and control of processes B) transforming inputs into services and products C) involving internal and external customers D) all of the above
D
Responsive supply chains should be preferred when: A) product variety is low. B) demand is predictable. C) contribution margins are low. D) product variety is high.
D
Select the BEST answer. Manufacturing processes usually have: A) high levels of customer contact. B) output that cannot be inventoried. C) low levels of capital intensity. D) physical, durable output.
D
The following are examples of supply chain process examples in operations except A) Outsourcing B) Warehousing C) Customer service D) Weeks of supply
D
The product-process matrix used to analyze manufacturing operations brings together the elements of: A) volume, process, and intensity. B) process, intensity, and product design. C) intensity, volume, and process. D) customization, volume, and process.
D
Using an airline example for competitive priorities, the process capability of handling service needs of all market segments and promotional programs would be best described by: A) strategic alliances B) consistent quality. C) delivery speed. D) variety.
D
Which of the following does NOT correspond to one of the five stages of CSR learning? A. Compliance (to do the minimum required) B. Strategic (to embed CSR within the strategy planning process) C. Civil (to promote CSR practices industry-wide) D. Philanthropic (to offer funds to support projects)
D
Which of the following expressions is used to calculate Inventory Turnover? A) Average aggregate inventory value divided by weekly sales (at cost) B) Average aggregate inventory value divided by monthly sales (at cost) C) Number of units divided by their dollar value D) Annual sales (at cost) divided by the average aggregate inventory value
D
Which of the following is NOT an example of core processes presented in Lecture: A) Supplier Relationship Processes B) New Service/Product Development Processes C) Order Fulfillment Processes D) Support processes from different functional areas
D
Which of the following is NOT an example of stakeholder: A) Employees B) Customers C) Shareholders D) All of the above are stakeholders
D
Which of the following is NOT one of the three major areas of focus in creating an effective supply chain? A) Link services or Products with internal customers B) Link services or products with External Supply Chain C) Link Services or Products with Customers, Suppliers and Supply Chain Processes D) Link services or products with Global Network configurations
D
Which of the following statements is not correct: A) Flexibility usually requires better trained workers. B) These workers imply higher salaries. C) Flexible employees also mean higher chances to adapt to new market needs. D) Flexible employees also mean lower chances to adapt to market changes.
D
Which of the following statements regarding a process is NOT true? A. A process can have its own set of objectives B. A process involves a work flow that can cut across departmental boundaries C. A process requires resources from several departments D. A process does not involve a repeatable operation
D
Which one of the following statements is NOT true? A) A make-to-stock strategy involves holding items in stock for immediate delivery and is feasible for standardized products with high volumes and reasonably accurate forecasts. B) The degree of process divergence is what keeps a large batch process from being economically produced using a line process. C) Assemble-to-order strategy produces a wide variety of products from relatively few assemblies and components after orders are received. D) An off-diagonal position in the product-process matrix is typically more profitable than a position on the diagonal.
D
Which one of the following statements on the bullwhip effect is not correct: A) The bullwhip effect is a distribution channel phenomenon in which forecasts yield supply chain inefficiencies. B) The bullwhip effect refers to increasing swings in inventory in response to shifts in customer demand as you move further up the supply chain C) Distortions and adjustments made by members of the supply chain amplify the perceived variability of demand D) Faster delivery times allow having smaller fluctuations on the End-Consumer demand.
D
Which statement about economies of scope is not true? A) Economies of scope are often attained through programmable automation. B) Economies of scope bring together two competitive priorities-customization and low price. C) Economies of scope reflect the ability to produce multiple products more cheaply in combination than separately. D) Economies of scope reflect low capital intensity and high resource flexibility.
D
