supply chain management
Which of the following allows a segment of the master schedule to be designated as "not to be rescheduled?" A. pegging B. system nervousness C. time fence D. freeze point
C
Which of the following does NOT belong to holding costs? A. insurance on inventory B. pilferage, scrap, and obsolescence C. order processing D. storage costs
C
Which of the following is NOT one of Taiichi Ohno's seven wastes? A. motion B. transportation C. queues D. energy
D
Outsourcing is the practice of moving a business process to a foreign country but retaining control of it.
False. this is offshoring
A simple CPM network has three activities, D, E, and F. D is an immediate predecessor of E and of F. E is an immediate predecessor of F. The activity durations are D=4, E=3, F=8. a. The critical path is D-E-F, duration 15. b. The critical path is D-F, duration 12. c. Slack at D is 3 units d. Slack at E is 3 units e. Both a and c are true
a
Inventory record accuracy would be decreased by A. increasing stockroom accessibility. B. reorder points. C. ABC analysis. D. cycle counting.
a
Walter Shewhart, in the _____, provided the foundations for ______ in operations management. a. 1920s; statistical sampling b. United Kingdom; mass production c. U.S. Army; logistics d. nineteenth century; interchangeable parts e. none of the above
a
What is an information system for identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders? A. ERP B. MRP C. BOM D. CIM
a
What is an information system for identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders? A. ERP B. SCM C. EIS D. MRP
a
Which negotiation strategy bases price on a published, auction, or index price? A. competitive bidding B. market-based price model C. cost-based price model D. supply-based price model
b
A phantom bill-of-material is a bill-of-material developed for A. a module that is a major component of a final product. B. a final product for which production is to be discontinued. C. the purpose of grouping subassemblies when we wish to issue "kits" for later use. D. a subassembly that exists only temporarily.
d
Reasons to study Operations Management include a. studying why people organize themselves for free enterprise b. knowing how goods and services are consumed c. understanding what human resource managers do d. learning about a costly part of the enterprise e. all of the above
d
The Japanese call the practice of stopping production when a defect occurs A. kanban. B. poka-yoke. C. kaizen. D. jidoka.
d
ABC analysis divides an organization's on-hand inventory into three classes based upon A. unit price. B. annual dollar volume. C. annual demand. D. the number of units on hand.
b
Inspections should NOT take place A. at your facility upon receipt of goods from your supplier. B. after costly or irreversible processes. C. at your supplier's plant while the supplier is producing. D. during the step-by-step production process.
b
The "Father of Scientific Management" is a. Henry Ford b. Frederick W. Taylor c. W. Edwards Deming d. Frank Gilbreth e. just a figure of speech, not a reference to a person
b
The _____ distribution is used by PERT analysis to calculate expected activity times and variances. a. Normal b. Beta c. Alpha d. Gaussian e. Binomial
b
The most aggressive and risky approach to capacity planning is A. leading demand with incremental expansion. B. leading demand with one-step expansion. C. attempts to have an average capacity that straddles demand with incremental expansion. D. lagging demand with incremental expansion.
b
The objective of inventory management is to A. take advantage of quantity discounts. B. strike a balance between inventory investment and customer service. C. decouple various parts of the production process. D. provide a selection of goods for anticipated customer demand
b
The three major types of forecasts used by business organizations are a. strategic, tactical, and operational b. economic, technological, and demand c. exponential smoothing, Delphi, and regression d. causal, time-series, and seasonal e. departmental, organizational, and territorial
b
What is the cost to prepare a machine or process for production? A. preparation cost B. setup cost C. holding cost D. ordering cost
b
What is training and empowering frontline employees to solve a problem immediately? A. courtesy B. service recovery C. employee empowerment D. quality circle
b
Which of the following activities does NOT need to be virtually eliminated for a lean organization? A. inventory B. inspection C. cross-training D. material handling
C
What is another name for a waiting line? A. key B. queue C. cube D. quag
B
Which of the following is NOT a type of inventory? A. raw material B. finished goods C. work-in-process D. MRP
D
A bill of materials for a menu item in a restaurant is also called a A. product specification. B. recipe. C. food bill. D. bill of ingredients.
A
A device or technique that ensures production of a good unit every time is a A. poka-yoke. B. control chart. C. fail-safe. D. zero defect.
A
A forecast that projects a company's sales is A. a demand forecast. B. an economic forecast. C. a technological forecast. D. an environmental forecast.
A
A forecasting technique consistently produces a negative tracking signal. This means that A. the forecasting technique consistently over-predicts. B. the MAPE will also consistently be negative. C. the MSE will also consistently be negative. D. the forecasting technique consistently under-predicts.
A
A lawnmower assembly plant uses a variety of nuts, bolts, screws, and other fasteners in its operation. Its supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule. This is an example of A. vendor-managed inventory. B. single stage control of replenishment. C. postponement. D. e-procurement.
A
A system that keeps track of each withdrawal or addition to inventory continuously is A. a perpetual inventory system. B. a continuous inventory system. C. a fixed period system. D. a constant monitoring system.
A
Gantt charts are
A
How do pharmacies implement lean operations to ensure that customers will always receive their medications upon demand? A. They develop community networks as backup systems. B. They pay a premium for 60-minute delivery from their suppliers. C. They hold a large amount of safety stock for all of their drugs. D. They locate no further than 10 miles away from their suppliers.
A
How has McDonald's driven seconds out of the production process to be able to produce made-to-order hamburgers in 45 seconds? A. It reconfigured its kitchen layout. B. It altered its order-entry procedures. C. It changed its core management philosophy. D. It invented a stove that can cook hamburger meat in 22 seconds.
A
In acceptance sampling, the producer's risk is the risk of having a A. good lot rejected. B. good lot accepted. C. bad lot accepted. D. bad lot rejected.
A
Three common measures of supply chain performance are: A. percentage invested in inventory, inventory turnover, and weeks of supply. B. percentage invested in inventory, inventory turnover, and debt/equity ratio. C. debt/equity ratio, inventory turnover, and weeks of supply. D. percentage invested in inventory, debt/equity ratio, and weeks of supply.
A
Trucking A. is increasingly using computers to manage its operations. B. is the least used transportation mode for manufacturing goods. C. does not play a role in multimodal shipping. D. is one of the least flexible transportation modes
A
What is a system for ordering items that have little or no value at the end of a sales period? A. single-period inventory model B. production order quantity model C. EOQ D. ROP
A
What is an information system for identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders? A. ERP B. BOM C. MRP D. CIM
A
What is the lot-sizing technique that generates exactly what was required to meet the plan? A. lot-for-lot B. periodic order quantity C. economic order quantity D. Wagner-Whitin
A
Which of the following costs is NOT a cost of quality? A. research and development B. rework C. scrap D. lost goodwill
A
Which of the following determinants of service quality means approachability and ease of contact? A. access B. security C. tangibles D. courtesy
A
Which of the following does NOT belong to ordering costs? A. interest payments B. clerical support C. order processing D. cost of supplies
A
Which of the following is NOT a production technology that enhances production and productivity? A. service blueprinting B. process control C. vision systems D. automatic identification systems
A
Which of the following is NOT one of the assumptions of fixed-period systems? A. Lead times are variable. B. Lead times are known. C. Items are independent of one another. D. The only relevant costs are the ordering and holding costs.
A
Which of the following is NOT one of the benefits accrued from a centralized purchasing function? A. Increase the duplication of tasks. B. Leverage purchase volume for better pricing. C. Maintain professional control over the purchasing process. D. Devote more resources to the supplier selection and negotiation process.
A
Which of the following is NOT one of the factors that fosters specialization and worldwide supply chains? A. marketing B. cheaper transportation C. instant communication D. specialized expert knowledge
A
Which of the following is NOT one of the techniques for building employee empowerment? A. Eliminate formal organization structures such as teams and quality circles. B. Develop open, supportive supervisors. C. Build high-morale organizations. D. Build communication networks that include employees.
A
Which of the following is NOT true about Gantt charts? A. Gantt charts adequately illustrate the interrelationships between the activities and the resources. B. Gantt charts are low-cost means of helping managers make sure that activities are planned. C. Gantt charts are planning charts used to schedule resources and allocate time. D. Gantt charts also can be used for scheduling repetitive operations.
A
Which of the following is NOT true about MRP limitations? A. MRP does not tell you that a job needs to be completed on a certain week or day. B. MRP is considered an infinite scheduling technique. C. MRP is an excellent tool for product-focused and repetitive facilities, but it has limitations in process (make-to-order) environments. D. MRP does not do detailed scheduling
A
Which of the following is a qualitative forecasting method? A. Delphi method B. trend projection C. linear regression D. naive approach
A
Which of the following is an advantage of PERT and CPM? A. Straightforward concept and not mathematically complex. B. Useful in monitoring only schedules. C. Precedence relationships must be specified and networked together. D. Project activities have to be clearly defined, independent, and stable in their relationships
A
Which of the following is an award for quality achievement in Japan? A. Deming Prize B. Malcolm Baldrige National Quality Award C. ISO 9000 D. Tokyo Medal for Excellence in Quality
A
Which of the following is the FINAL step in a forecasting system? A. Validate and implement the results. B. Make the forecast. C. Select the forecast model(s). D. Gather the data needed to make the forecast.
A
Which of the following is the FIRST step in a forecasting system? A.Determine the use of the forecast. B. Select the forecast model(s). C. Determine the time horizon of the forecast. D. Select the items to be forecasted.
A
Which of the following is the first stage of supplier selection? A. supplier evaluation B. contracting C. negotiations D. supplier development
A
Which of the following mitigation tactics could reduce economic risk? A. purchasing contracts that address price fluctuations B. subcontractors on retainer C. multiple transportation modes and warehouses D. franchising and licensing
A
Which of the following organizations does NOT belong to the service sector? A. Ford Motor Company B. Costco C. San Diego Zoo D. Southwest Airlines
A
Which of the following pieces of information is NOT contained in a bill of material? A. lead times B. quantities of components C. raw materials to be used D. physical dimensions
A
Which of the following sets is determined during a backward pass? A. LS and LF B. LS and ES C. LS and EF D. ES and EF
A
Which of the following statements about DRP is NOT true? A. DRP pushes inventory through the system. B. Lead times are considered in DRP. C. DRP procedures and logic are analogous to MRP. D. DRP stands for "distribution resource planning."
A
Which of the following statements is NOT generally an implication stemming from an increase in the number of facilities? A. decreased total logistics cost B. increased customer satisfaction C. increased facility costs D. quicker response
A
Which of the following statements is NOT true about a fixed-period system? A. A fixed-period system is also called "continuous review." B. The disadvantage of the fixed-period system is that because there is no tally of inventory during the review period, there is the possibility of a stockout during this time. C. A fixed-period system is appropriate when vendors make routine visits to customers to take fresh orders or when purchasers want to combine orders to save ordering and transportation costs. D. The advantage of the fixed-period system is that there is no physical count of inventory items after an item is withdrawn.
A
Which of the following statements is NOT true about the EOQ? A. The EOQ is preferable when dependent demand exists. B. The EOQ can be used as a lot-sizing technique for MRP systems. C. The EOQ is a statistical technique using averages, whereas the MRP procedure assumes known demand reflected in a master production schedule. D. The EOQ can be a reasonable lot-sizing technique when demand is relatively constant and independent.
A
Which of the following statements is NOT true regarding the importance of the role that an operations manager plays in addressing service quality? A. The manager may be able to influence the quality of the service but has little control over the customers' expectation. B. The tangible component of many services is important. C. Managers must expect exceptions. D. The operations manager should realize that the customer' expectations are the standard against which the service is judged.
A
Which of the following statements is NOT true regarding ERP? A. ERP promises slow, but accurate, information. B. ERP usually provides financial and human resource management information. C. The objective of an ERP system is to coordinate a firm's whole business. D. ERP allows companies share a common database and business practices throughout the enterprise.
A
Which of the following statements is NOT true regarding forecasting? A. Forecasting is exclusively an objective prediction. B. Forecasting is the art and science of predicting future events. C. Forecasting may involve taking historical data and projecting them into the future with a mathematical model. D. A forecast is usually classified by the future time horizon that it covers.
A
Which of the following statements is NOT true? A. Adding flexibility to the production process can be a major competitive advantage. Building flexibility into a production process is usually inexpensive, but difficult. B. Selecting the best equipment requires understanding the specific industry and available processes and technology. C. Selection of a particular process strategy requires decisions about equipment and technology. D. The selection of equipment requires considering cost, cash flow, market stability, quality, capacity, and flexibility.
A
Which of the following statements is NOT true? A. Finding the optimal number of facilities represents a critical and static decision. B. An effective supplier management program and an effective distribution management program may make the difference between supply chain success and failure. C. Top-notch supply chain performance requires good downstream management, just as it does good upstream management. D. Packaging and logistics are important distribution decisions, because the manufacturer is usually held responsible for breakages and serviceability
A
Which of the following statements is NOT true? A. For any product, some components of that product are independent demand items. B. Less inventory frees up capital and floor space for other uses. C. Demand for items is dependent when the relationship between the items can be determined. D. For any product for which a schedule can be established, dependent techniques should be used.
A
Which of the following statements is true regarding lean sustainability? A. Lean and sustainability both seek to maximize resource and economic efficiency. B. Sustainability is focused on only the immediate process and system. C. Lean drives out waste because waste has adverse affects on the environment, while sustainability drives out waste because waste adds nothing for the customer D. Lean requires examining the systems in which the firm and its stakeholders operate.
A
Which of the following types of inventory describes inventory that has been purchased but not processed? A. raw material inventory B. maintenance/repair/operating supply inventory C. finished-goods inventory D. work-in-process inventory
A
Which of the quadrants in the service process matrix has low labor intensity and low customization? A. service factory B. professional service C. service shop D. mass service
A
a single-period inventory model is NOT applicable for A. furniture. B. milk. C. seasonal goods. D. newspapers.
A
to develop a standard or benchmark, firms need to start with A. determining what to benchmark. B. forming a benchmark team. C. identifying benchmarking partners. D. collecting benchmarking information.
A
A fast food restaurant is an example of A. high customization and low degree of labor. B. low customization and low degree of labor. C. high customization and high degree of labor. D. low customization and high degree of labor.
B
A forecast that projects a company's sales is A. an environmental forecast. B. a demand forecast. C. an economic forecast. D. a technological forecast.
B
A response strategy requires suppliers be selected based primarily on A. being willing to share information. B. capacity, speed, and flexibility. C. product development skills. D. cost.
B
A supply chain ends with A. manufacturers. B. a satisfied customer. C. distributors. D. suppliers.
B
After substantial analysis, the Orlando Magic has been able to develop a regression model that yields a coefficient of determination (R²) of A. 0.97. B. 0.85. C. 0.82. D. 0.76. E. 0.93.
B
CPFR is A. complete, planning, forecasting, and replenishment. B. collaborative, planning, forecasting, and replenishment. C. complete, partner, forecasting, and replenishment. D. collaborative, partner, forecasting, and replenishment.
B
Computerized PERT/CPM reports and charts do NOT include A. cost distribution tables. B. probability estimates for on-time completion. C. detailed cost breakdowns for each task. D. variance reports.
B
Forecasting that tries a variety of computer models and selects the best one for a particular application is referred as A. trend projection. B. focus forecasting. C. adaptive smoothing. D. jury of executive opinion.
B
In many applications, human quality inspectors can be replaced effectively by A. RFID tags. B. vision systems. C. automated storage and retrieval systems. D. FMS.
B
Inspections should NOT take place A. during the step-by-step production process. B. after costly or irreversible processes. C. at your facility upon receipt of goods from your supplier. D. at your supplier's plant while the supplier is producing.
B
Inventory control models assume that demand for an item is A. always dependent on the demand for other items. B. either independent of or dependent on the demand for other items. C. always independent on the demand for other items. D. identical to the demand for other items.
B
Linear regression is most similar to which of the following? A. the naive method of forecasting B. the trend projection method of forecasting C. the weighted moving average method of forecasting D. the simple moving average method of forecasting
B
Most bank teller services are operated with what kind of system? A. multiple-server, multiphase B. multiple-server, single-phase C. single-server, multiphase D. single-server, single-phase
B
One hundred percent inspection A. catches all of the defective parts. B. means that every part is checked to see whether or not it is defective. C. means that only good parts will be shipped to a customer. D. is practical and an excellent fit for world-class manufacturers.
B
Prior to embarking on supply chain design, operations managers must first consider A. how to manage supply chain inventory. B. "make-or-buy" and outsourcing decisions. C. how to select suppliers. D. what kind of distribution network to have.
B
Stacked Resaurants lets customers choose ingredients for their sandwhiches using A. a moving conveyor belt. B. an iPad menu. C. a telephone at the table. D. playing cards.
B
Supply chain management systems in the grocery industry that tie sales to buying, to inventory, to logistics, and to production are called A. grocery resource planning. B. efficient consumer response. C. enterprise resource planning. D. distribution resource planning.
B
The American Society for Quality defines quality as A. how well a product fits patterns of consumer preferences. B. the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs. C. even though it cannot be defined, you know what it is. D. the degree of excellence at an acceptable price and the control of variability at an acceptable cost
B
The body of knowledge about waiting lines is called A. waiting science. B. queuing theory. C. line analysis. D. patience discipline.
B
The cost to produce the goods or services sold for a given period is referred to as A. inventory turnover. B. cost of goods sold. C. inventory investment. D. weeks of supply.
B
The forecasting time horizon that would typically be easiest to predict for would be the A. medium range. B. short range. C. long range. D. intermediate range.
B
The project organization may be LESS helpful when A. work tasks can be defined with a specific goal and deadline. B. the job is familiar to the existing organization. C. the project cuts across organizational lines. D. the work contains complex interrelated tasks requiring specialized skills.
B
What is a concept that results in material being produced only when requested and moved to where it is needed just as it is needed? A. procrastination system B. pull system C. requisition system D. push system
B
What is a data pattern that repeats itself after a period of days, weeks, months, or quarters? A. random variation B. seasonality C. cycle D. trend
B
What is a drawing of the movement of material, product or people? A. process chart B. flowchart C. RFID D. AIS
B
What is a list of quantities of components, ingredients, and materials required to make a product? A. master production schedule B. bill-of-material C. engineering change notice D. purchase order
B
What is a supply chain designed to optimize both forward and reverse flows? A. open-loop supply chain B. closed-loop supply chain C. bullwhip-loop supply chain D. reverse-loop supply chain
B
What is a long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship? A. advanced shipping notice B. blanket order C. postponement D. drop shipping
B
What is a lot-sizing technique that orders the quantity needed during a predetermined time between orders? A. part period balancing B. POQ C. EOQ D. Wagner-Whitin
B
What is the fundamental rethinking of business processes to bring about dramatic improvements in performance? A. process strategy B. process redesign C. process analysis D. process design
B
What is the most popular example of specialized software for managing projects? A. Microsoft Management Tool B. Microsoft Project C. Project Apple D. PERT/CPM+
B
What is the percentage defective in an average lot of goods inspected through acceptance sampling? A. OC curve B. AOQ C. AQL D. LTPD
B
What is the primary method in which airlines adjust to short-term fluctuations in customer demand? A. changes in inventory B. personnel availability C. postponement of service D. denial of service
B
What provides feedback to the capacity plan, master production schedule, and production plan so planning can be kept valid at all times? A. lot sizing B. closed-loop MRP system C. system nervousness D. MRP II
B
When the assumptions of the M/M/1, M/M/S, M/D/1, and limited-population queuing models do not hold true, there are no other approaches available to us. A. True B. False
B
Which distribution most frequently describes the service time in queuing theory? A. Beta B. Negative exponential C. Normal D. Poisson
B
Which of the following best defines scheduling? A. Determines and implements long- and short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands. B. Determines and implements intermediate- and short-term schedules that effectively and efficiently utilize both personnel and facilities while meeting customer demands. C. Determines and implements intermediate- and short-term schedules that effectively and efficiently utilize personnel while meeting customer demands. D. Determines and implements long- and short-term schedules that effectively and efficiently utilize personnel while meeting customer demands.
B
Which of the following could reduce distribution risk? A. use multiple suppliers B. careful selection, monitoring and effective contracts with penalties C. secure IT systems D. cross-country diversification
B
Which of the following is NOT a feature of Toyota's new Japanese plant? A. Retooling permits faster changeovers, allowing for shorter product runs of components, supporting level scheduling. B. Instead of perching car chassis on raised platforms, they dangle from overhead conveyors. C. The assembly line uses quiet friction rollers with fewer moving parts, requiring less maintenance than conventional lines and reducing worker fatigue. D. The assembly line has cars sitting side-by-side, rather than bumper-to-bumper.
B
Which of the following is NOT considered to be one of the three primary functions that all organizations perform? A. finance/accounting B. research and development C. production/operations D. marketing
B
Which of the following is NOT one of the benefits in MRP? A. faster response to market changes B. increased inventory levels C. better response to customer orders as the result of improved adherence to schedules D. improved utilization of facilities and labor
B
Which of the following is NOT one of the principles for standard work practice at Toyota? A. Internal and external customer-supplier connections are direct, specifying personnel, methods, timing, and quantity. B. Improvements in the system must be made in accordance with the "scientific method," at the highest possible level in the organization. C. Material and service flows are to be simple and direct. D. Work is completely specified as to content, sequence, timing, and outcome.
B
Which of the following is NOT true about reverse logistics as compared to foward logistics? A. Pricing is dependent on many factors. B. Speed is often very important. C. Distribution costs are less directly visible. D. Forecasting is more uncertain.
B
Which of the following is a reality each company faces regarding its forecasting system? A. Product family forecast are less accurate than individual product forecasts. B. Outside factors that we cannot predict or control often impact the forecast. C. Most forecasting techniques assume there is no underlying stability in the system. D. After automating their predictions using computerized forecasting software, firms closely monitor only the product items whose demand is stable.
B
Which of the following is the THIRD level in work breakdown structure (WBS)? A. project B. subtasks in major tasks C. major tasks in the project D. activities to be completed
B
Which of the following mitigation tactics is NOT designed to reduce the risk of information loss or distortion? A. secure IT systems B. alternate sourcing C. redundant databases D. training of supply chain partners on the proper interpretations and use of information
B
Which of the following statements is NOT one of the response strategy decisions? A. fast transportation B. gather and communicate market research data C. use buffer stocks to ensure speedy supply D. low setup time
B
Which of the following statements is NOT true about MRP? A. MRP uses a bill-of-material, inventory, expected receipts, and a master production schedule to determine material requirements. B. MRP is an independent demand technique used in a production environment. C. MRP provides a clean structure for dependent demand. D. MRP has evolved as the basis for Enterprise Resource Planning
B
Which of the following statements is NOT true regarding process redesign? A. Effective process redesign works only if the basic process and its objectives are reexamined. B. Process redesign is also called process reinvention. C. Process redesign is also called process reengineering. D. Process redesign also focuses on those activities that cross functional lines.
B
Which of the following statements is NOT true regarding the bullwhip effect? A. Inaccurate information results in distortions and fluctuations, causing what is known as the bullwhip effect. B. The bullwhip effect occurs as order are relayed from retails, to distributors, to wholesalers, to manufacturers, with fluctuations decreasing at each step in the sequence. C. Bullwhip fluctuations in the supply chain increase the costs associated with inventory, transportation, shipping and receiving. D. Bullwhip fluctuations in the supply chain decrease customer service and profitability.
B
Which of the following statements is NOT true? A. Inventory holding costs can be computed for various shipping alternatives to better compare their overall cost impact. B. A less expensive shipper tends to result in slower shipments and lower holding costs. Your answer is correct.C. The longer a product is in transit, the longer the firm has its money invested. D. To do transportation mode analysis, the operations or logistics manager not only needs to consider the holding cost and shipping cost, but also other factors such as on-time delivery, getting a new product to market, and so on.
B
Which of the following statements is NOT true? A. Supply chain management describes the coordination of all supply chain activities, starting with raw materials, and ending with a satisfied customer. B. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting. C. A supply chain includes suppliers; manufacturers and/or service providers; and distributors, wholesalers, and/or retailers who deliver the product and/or service to the final customer. D. The objective of supply chain management is to coordinate activities within the supply chain to maximize the supply chain's competitive advantage and benefits to the ultimate consumer.
B
Which of the following statements is NOT true? A. "Closed-loop supply chain" is sometimes used as a synonym for "reverse logistics." B. A closed-loop supply chain is a designed to optimize only reverse flows. C. Reverse logistics involves the processes of sending returned products back up the supply chain for resale, repair, reuse, remanufacture, recycling, or disposal. D. A closed-loop supply chain prepares for returns prior to product introduction.
B
Which of the following strategies is part collaboration, part purchasing from few suppliers, and part vertical integration? A. virtual companies B. keiretsu networks C. horizontal integration D. joint ventures
B
Which of the following words means continuous improvement in Japanese? A. kanban B. kaizen C. poka-yoke D. sensei
B
Which one of the following statements is NOT true about the forecasting in the service sector? A. Hourly demand forecasts may be necessary. B. Detailed forecasts of demand are not needed. C. Forecasting in the service sector presents some unusual challenges. D. Demand patterns are often different from those in non-service sectors.
B
Which operations function at a manufacturing facility strives for the efficient use of machines, space, and personnel? A. process analysis B. industrial engineering C. production and inventory control D. design
B
With regard to the cost-based price model negotiation strategy, which of the following is true? A. Potential suppliers each submit quotations as to price, delivery, and so on. B. Prices are based upon supplier costs. C. Prices are based in some way upon market standards agreed to by both supplier and purchaser. D. Prices float based on what the customer is willing to pay.
B
efore attempting the exercise, click here to watch a short video. What mathematical technique is used when planning menu changes? A. correlation analysis B. multiple-regression analysis C. exponential smoothing D. standard error of the estimate
B
"Today's forecast equals yesterday's actual demand" is referred as A. the Delphi method. B. exponential smoothing. C. the naive approach. D. a moving average
C
Which of the following activities does NOT belong to the controlling phase of project management? A. monitor resources, costs, quality, and budgets B. shift resources C. define the project D. revise plans
C
A forecasting technique consistently produces a negative tracking signal. This means that A. the forecasting technique consistently under-predicts. B. the MAPE will also consistently be negative. C. the forecasting technique consistently over-predicts. D. the MSE will also consistently be negative.
C
A successful quality strategy begins with A. engaging employees in the necessary activities to implement quality. B. satisfying customers and obtaining a competitive advantage. C. an organizational culture that fosters quality. D. an understanding of the principles of quality.
C
A supply chain ends with A. distributors. B. manufacturers. C. a satisfied customer. D. suppliers.
C
A system that triggers ordering on a uniform time basis is called A. a fixed-quantity system. B. a reorder point system. C. a fixed-period system. D. an EOQ system.
C
Among the following, critical path and slack time analysis MOST help A. highlight relationships among project activities. B. managers define the project activities. C. pinpoint activities that need to be closely watched. D. point out who is responsible for various activities.
C
As the level of service increases, the cost of providing service A. remains unchanged. B. decreases. C. increases. D. first decreases, then increases.
C
As the level of service increases, the cost of waiting time A. increases. B. remains unchanged. C. decreases. D. first decreases, then increases.
C
Customers who ________ refuse to join the waiting line because it is too long to suit their needs or interests. A. queue B. renege C. balk D. Poisson
C
Managing quality helps build successful strategies of A. differentiation, time and service. B. differentiation, time and response. C. differentiation, low cost and response. D. differentiation, low cost and service.
C
Supply chain managers outsource logistics to meet three goals: A. drive down inventory investment, lower delivery costs, and provide better market response. B. lower delivery costs, improve delivery reliability and speed, and provide better market response. C. drive down inventory investment, lower delivery costs, and improve delivery reliability and speed. D. drive down inventory investment, improve delivery reliability and speed, and provide better market response.
C
The Japanese call the practice of stopping production when a defect occurs A. kanban. B. poka-yoke. C. jidoka. D. kaizen.
C
The advantage of having few suppliers is to A. look for short-term attributes. B. take advantage of diseconomies of scale. C. form a long-term relationship. D. pursue low cost.
C
The advantage of having many potential suppliers is their willingness to A. provide technical expertise. B. participate in JIT. C. offer lower prices in the short term. D. provide innovations.
C
The objective of inventory management is to A. take advantage of quantity discounts. B. provide a selection of goods for anticipated customer demand. C. strike a balance between inventory investment and customer service. D. decouple various parts of the production process.
C
The production process at Hard Rock Cafe does NOT include which of the following activities? A. cooking B. placing raw materials in cold storage C. advertising D. receiving
C
The do-it-yourselfer plucked a gallon can of base paint from the shelf of the local hardware store and handed it to Keith, the cheerful clerk at the paint counter. Their eyes met briefly and the do-it-yourselfer silently handed over sample 150C-1, Musical Mist, to the clerk. It was impractical to keep several gallons of every possible color on the shelves at the hardware store, so the paint manufacturer had created clever workaround. The workaround was a computer-based system that added predetermined quantities of pigments to a gallon can of base paint depending on the desired shade, in this case, Musical Mist. The hardware store now needed to stock only the base paint, this machine, and a small supply of paint pigments in order to create the thousands of colors in its catalog. This scenario is a prime example of A. the bullwhip effect. B. drop shipping. C. postponement.
C
Virtually every restaurant deals with its suppliers on A. a production order quantity basis. B. a fixed-period inventory system basis. C. a JIT basis. D. an EOQ basis.
C
What are the two most important cost considerations in queuing problems? A. cost of providing service and cost of marketing B. cost of line management and cost of marketing C. cost of providing service and cost of waiting time D. cost of lost time waiting and cost of marketing
C
What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor? A. horizontal integration B. virtual companies C. vertical integration D. outsourcing
C
What is the cost to prepare a machine or process for production? A. ordering cost B. preparation cost C. setup cost D. holding cost
C
What is the shortest duration required to complete an activity? A. pessimistic time B. most likely time C. crash time D. optimistic time
C
What is transferring a firm's activities that have traditionally been internal to external suppliers? A. make-or-buy B. keiretsu network C. outsourcing D. vertical integration
C
When determining the optimal number of facilities, logistics-related costs do NOT usually include which of the following costs? A. transportation B. inventory C. purchasing D. facility
C
Which column in Microsoft Project defines the precedence relationships among the activities? A. order B. relations C. predecessors D. successors
C
Which forecasting model is based upon salespersons' estimates of expected sales? A. Delphi method B. jury of executive opinion C. sales force composite D. market survey
C
Which of the following activities at a commercial bank is NOT an operations activity? A. security B. check clearing C. auditing D. maintenance
C
Which of the following forecasting steps comes directly after determining the time horizon of the forecast? A. Gather the data. B. Select the items to be forecasted. C. Select the forecasting model(s). D. Make the forecast.
C
Which of the following industries has the highest supply chain cost as a percentage of sales? A. automobile B. restaurants C. petroleum D. metals
C
Which of the following is NOT a technique that allows managers to plan, schedule, and control projects? A. PERT B. Gantt charts C. Factor-rating method D. CPM
C
Which of the following is NOT a type of "waiting cost?" A. idle employees awaiting machine repairs B. a customer leaving a line because it was too long C. adding an additional server D. a customer not returning because the line was too long
C
Which of the following is NOT an external failure cost? A. returned goods B. lost goodwill C. scrap D. costs to society
C
Which of the following is NOT a time-series model? A. moving averages B. naive approach C. multiple regression D. exponential smoothing
C
Which of the following is NOT one of the techniques that Disney uses to try to keep visitors happy while waiting in line? A. entertains people while they wait B. makes lines appear to be constantly moving forward C. serves drinks D. posts signs telling visitors how many minutes until they reach each ride
C
Which of the following is NOT part of project controlling? A. close monitoring of resources, costs, quality, and budgets B. using a feedback loop to revise the project plan C. sequencing and allotting time to all project activities D. shifting resources to where they are needed most
C
Which of the following is NOT true regarding PERT and CPM? A. PERT and CPM are useful when controlling large projects. B. Time estimates are subject to fudging by managers. C. Managers only need to closely monitor the critical path. D. PERT and CPM are useful in monitoring costs.
C
Which of the following is an example of technology's impact on wholesale/retail trade industry? A. interactive TV B. automatic teller machines C. bar-coded data D. automatic toll booths
C
Which of the following is the Japanese term used to describe continuous improvement efforts? A. six sigma B. poka-yoke C. kaizen D. kanban
C
Which of the following statements is NOT one of the differentiation strategy decisions? A. Gather and communicate market research data. B. Modular design to aid product differentiation. C. Use buffer stocks to ensure speedy supply. D. Minimize inventory to avoid product obsolescence.
C
Which of the following statements is NOT true regarding production technologies? A. Robots are mechanical devices that use electronic impulses to activate motors and switches. B. Vision systems combine video cameras and computer technology and are often used in inspection roles. C. Flexible manufacturing systems and computer-integrated manufacturing are increasing the distinction between low-volume/high-variety and high-volume/low-variety production. D. CNC is machinery with its own computer and memory.
C
Which of the following statements is NOT true? A. When excess capacity exists, cost can increase. B. When capacity is inadequate, market share can shrink. C. When excess capacity exists, cost can decrease. D. When capacity is inadequate, customers can be lost.
C
Which of the following statements is true regarding cross-sourcing? A. Cross-sourcing enhances technological skills. B. Cross-sourcing describes suppliers who become part of a company coalition. C. Cross-sourcing uses one supplier for a component and a second supplier for another component, where each supplier acts as a backup for the other. D. Cross-sourcing develops the ability to produce goods or services previously purchased or actually buying a supplier or distributor.
C
Which of the following strategies is part collaboration, part purchasing from few suppliers, and part vertical integration? A. virtual companies B. horizontal integration C. keiretsu networks D. joint ventures
C
Which of the quadrants in the service process matrix has high labor intensity and high customization? A. service shop B. mass service C. professional service D. service factory
C
Which service strategy describes separating services that may lend themselves to some type of automation? A. separation B. modules C. automation D. focus
C
he three phases involved in the management of large projects are A. scheduling, designing, and operating. B. scheduling, operating, and evaluating. C. planning, scheduling, and controlling. D. planning, scheduling, and evaluating.
C
hich of these statements is NOT true about project scheduling? A. Project scheduling shows the relationship of each activity to others. B. Project scheduling encourages the setting of realistic time and cost estimates for each activity. C. Project scheduling helps make better use of resources by identifying the non-critical paths through the network. D. Project scheduling identifies the precedence relationships among activities.
C
Taguchi's quality loss function is based on a A. binomial distribution. B. linear equation. C. quadratic equation. D. negative exponential distribution.
C
Which of the following is NOT a tool for process analysis and design? A. flowchart B. process mapping C. process chart D. Pareto chart
D
A forecast that addresses the business cycle by predicting planning indicators is A. a demand forecast. B. an environmental forecast. C. a technological forecast. D. an economic forecast.
D
A tracking signal A. is computed as the mean absolute deviation (MAD) divided by the running sum of the forecast errors (RSFE). B. that is negative indicates that demand is greater than the forecast. C. cannot be used with exponential smoothing. D. is a measurement of how well a forecast is predicting actual values.
D
ABC analysis divides an organization's on-hand inventory into three classes based upon A. annual demand. B. the number of units on hand. C. unit price. D. annual dollar volume.
D
Airfreight A. represents about 10% of the tonnage shipped in the United States. B. is the oldest means of freight transportation. C. is the best way to transport natural gas. D. is a fast-growing mode of shipping.
D
Attribute inspection measures A. if cause and effect are present. B. whether or not the product attributes conform to the inspector's personal tastes. C. such dimensions as weight, speed, size, or strength to see if an item falls within an acceptable range. D. if the product is good or bad.
D
Computerized PERT/CPM reports and charts do NOT include A. detailed cost breakdowns for each task. B. variance reports. C. cost distribution tables. D. probability estimates for on-time completion.
D
Divulging information to some bidders on a project to give them an unfair advantage a. is the same thing as altering a status report b. is bribery c. is permitted by NAFTA d. is known as bid rigging e. is acceptable for private corporations but not for government agencies
D
Exponential smoothing may not be an appropriate method to use for the check-processing center because: A. the check-processing center's forecast is very hard to make as its processing requirements should have a very high variability. B. the check-processing center should observe an increasing trend in its processing requirements. C. the check-processing center should observe a cyclical trend in its processing requirements. D. the check-processing center should observe seasonality in its processing requirements.
D
How do you open a blank project using Microsoft Project? A. File|Open B. File|Blank C. Project|New D. File|New
D
Inventory reduction via JIT is an effective tool for identifying A. inefficiencies in warehouse layout. B. holding costs. C. setup costs. D. causes of variability.
D
Inventory turnover is equal to A. (total assets / total inventory investment) times 100. B. inventory investment / (annual cost of goods sold / 52 weeks). C. (total inventory investment / total assets) times 100. D. cost of goods sold / inventory investment.
D
JIT has an internal focus while lean production begins with an external focus on A. design. B. supplier relationships. C. logistics. D. customers
D
One use of inventory is A. to tightly synchronize a firm's production with its customers' demand. B. to tightly synchronize production and distribution processes. C. to ensure that item cost is maximized. D. to provide a hedge against inflation.
D
Policies based on ABC analysis might include investing A. the most time and effort verifying the accuracy of records for B items. B. more in inventory security for C items. C. extra care in forecasting for C items. D. more in supplier development for A items
D
Supply chain managers outsource logistics to meet three goals: A. drive down inventory investment, improve delivery reliability and speed, and provide better market response. B. drive down inventory investment, lower delivery costs, and provide better market response. C. lower delivery costs, improve delivery reliability and speed, and provide better market response. D. drive down inventory investment, lower delivery costs, and improve delivery reliability and speed.
D
The 5Ss developed by the Japanese do NOT include A. sort/segregate. B. standardize. C. simplify/straighten. D. safety.
D
The goal of CPFR is to A. ensure product innovation. B. determine which model needs to be used to predict future events. C. create good relations with suppliers. D. create significantly more accurate information that can power the supply chain.
D
The operations manager has two important tools available to deal with MRP system nervousness. Those tools are A. net and gross requirements. B. buckets with back flush. C. pseudo bills and kits. D. time fences and pegging.
D
The do-it-yourselfer plucked a gallon can of base paint from the shelf of the local hardware store and handed it to Keith, the cheerful clerk at the paint counter. Their eyes met briefly and the do-it-yourselfer silently handed over sample 150C-1, Musical Mist, to the clerk. It was impractical to keep several gallons of every possible color on the shelves at the hardware store, so the paint manufacturer had created clever workaround. The workaround was a computer-based system that added predetermined quantities of pigments to a gallon can of base paint depending on the desired shade, in this case, Musical Mist. The hardware store now needed to stock only the base paint, this machine, and a small supply of paint pigments in order to create the thousands of colors in its catalog. This scenario is a prime example of A. drop shipping. B. the bullwhip effect. C. vendor-managed inventory. D. postponement.
D
Three criteria for designing distribution networks to meet customer expectations are: A. low cost, rapid response and product choice. B. low cost, product choice and service. C. rapid response, low cost, and service. D. rapid response, product choice, and service.
D
What does Microsoft Project call an activity? A. job B. goal C. event D. task
D
What is a flowchart with time added on the horizontal axis? A. process chart B. service blueprinting C. CNC D. process mapping
D
What is a report showing the resource requirements in a work center for all work currently assigned there as well as all planned and expected orders? A. closed-loop report B. pegging report C. MRP II report D. load report
D
What is an electronically guided and controlled cart used to move materials? A. CNC B. AIS C. RFID D. AGV
D
What is an information system for identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders? A. EIS B. MRP C. SCM D. ERP
D
What is a time-phased stock-replenishment plan for all levels of the supply chain? A. MRP II B. BOM C. MRP D. DRP
D
What is the ability to respond with little penalty in time, cost, or customer value? A. postponement B. repetitive process C. mass customization D. flexibility
D
What is the act of breaking up an order and running part of it ahead of schedule? A. pegging B. overlapping C. operations splitting D. lot splitting
D
What is the goal for mass customization? A. The goal is to seek creative designs, efficient production, and high-quality goods via international collaboration. B. The goal is to let operations managers work with their supply chain to viciously cut inventories at every level. C. The goal is to enrich jobs and move more decision making to the individual contributor. D. The goal is to produce customized products, whenever and wherever needed.
D
What is training and empowering frontline employees to solve a problem immediately? A. quality circle B. employee empowerment C. courtesy D. service recovery
D
What sends a lot to two different machines for the same operation? A. lot splitting B. pegging C. overlapping D. operations splitting
D
When determining the optimal number of facilities, logistics-related costs do NOT usually include which of the following costs? A. inventory B. transportation C. facility D. purchasing
D
Which distribution most frequently describes the arrival rate in queuing theory? A. Negative exponential B. Beta C. Normal D. Poisson
D
Which of the following DOES NOT increase profit by improving quality? A. improved reputation B. increased productivity C. flexible pricing D. higher warranty costs
D
Which of the following activities at an airline is NOT an operations activity? A. flying B. catering C. crew scheduling D. sales
D
Which of the following attributes is NOT for lean operations? A. Empower employees. B. Develop worker flexibility. C. Develop collaborative partnerships with suppliers. D. Build processes that increase variability.
D
Which of the following could reduce costs and increase profit? A. improved response B. improved reputation C. flexible pricing D. increased productivity
D
Which of the following determinants of service quality means the firm performs the service right the first time and that the firm honors its promises? A. competence B. credibility C. responsiveness D. reliability
D
Which of the following does NOT belong to the planning phase of project management? A. goal setting B. defining the project C. team organization D. monitoring resources
D
Which of the following is NOT one of the benefits accrued from a centralized purchasing function? A. Devote more resources to the supplier selection and negotiation process. B. Maintain professional control over the purchasing process. C. Leverage purchase volume for better pricing. D. Increase the duplication of tasks.
D
Which of the following is a direct responsibility of the project manager? A. calculating completion probabilities for all tasks in the project B. drawing the network diagram C. performing all of the activities in the project D. making sure that the people assigned to the project receive the motivation, direction, and information needed to do their jobs
D
Which of the following is a limitation of PERT and CPM? A. The graphical nature of a network delays comprehension of the activity list's interrelationships. B. They are applicable to only a narrow variety of projects and industries. C. They can be used only to monitor schedules. D. There is the inherent danger of placing too much emphasis on the critical path
D
Which of the following is a quantitative forecasting method? A. market survey B. sales force composite C. jury of executive opinion D. exponential smoothing
D
Which of the following is an advantage of ERP? A. Data fields do not have to be defined identically across the entire enterprise. B. It is very inexpensive to purchase. C. It is simple enough that companies have an easy time adjusting to it. D. It creates commonality of databases.
D
Which of the following is the FIRST step in a forecasting system? A. Select the forecast model(s). B. Determine the time horizon of the forecast. C. Select the items to be forecasted. D. Determine the use of the forecast.
D
Which of the following is the first stage of supplier selection? A. negotiations B. contracting C. supplier development D. supplier evaluation
D
Which of the following statements is NOT one of the differentiation strategy decisions? A. Minimize inventory to avoid product obsolescence. B. Gather and communicate market research data. C. Modular design to aid product differentiation. D. Use buffer stocks to ensure speedy supply.
D
Which of the following statements is NOT true about DRP? A. Effective use of DRP requires an integrated information system to rapidly convey planned order releases from one level to the next. B. The goal of a DRP system is small and frequent replenishment within the bounds of economical ordering and shipping. C. When depenent techniques are used in the supply chain, they are called distribution resource planning (DRP). D. The DRP procedure starts with the forecast at the supplier level.
D
Which of the following statements is NOT true regarding channel assembly? A. Channel assembly treats distributors more as manufacturing partners than as distributors. B. Channel assembly represents one way to implement postponement. C. Channel assembly postpones final assembly of a product so the distribution channel can assemble it. D. Channel assembly sends individual components, modules, and finished products, to the distributor.
D
Which of the following statements is NOT true? A. When excess capacity exists, cost can increase. B. When capacity is inadequate, customers can be lost. C. When capacity is inadequate, market share can shrink. D. When excess capacity exists, cost can decrease.
D
Which of the following statements regarding critical paths is true? a. The shortest of all paths through the network is the critical path. b. Some activities on the critical path may have slack. c. Every network has exactly one critical path. d. On a specific project, there can be multiple critical paths, all with exactly the same duration.
D
Which of the following tools means tracing upward in the BOM from the component to the parent item? A. time fencing B. system nervousness C. bucketing D. pegging
D
Which of the following lot-sizing techniques is likely to prove the most complex to use? A. periodic order quantity (POQ) B. lot-for-lot C. economic order quantity (EOQ) D. Wagner-Whitin
D
Which of these statements accurately captures a current trend in operations? A. Mass production at the expense of product variety. B. There is increased focus on local market and local competition. C. Jobs are increasingly specialized as workers focus on basic assembly tasks. D. Rapid product development.
D
Which organization has developed principles and standards to be used as guidelines for ethical behavior? A. Institute for Purchasing Management B. Institute for Vendor Management C. Institute for Procurement Management D. Institute for Supply Management
D
hich of the following statements is an assumption PERT makes regarding the probability of finishing the project on time? A. Activity times are statistically identical. B. Activity times are statistically dependent. C. Total project completion times follow a uniform probability distribution. D. Total project completion times follow a normal probability distribution.
D
which of the following mitigation tactics could reduce economic risk? A. multiple transportation modes and warehouses B. subcontractors on retainer C. franchising and licensing D. purchasing contracts that address price fluctuations
D
Reasons to study Operations Management include learning about a. why people organize themselves for productive enterprise b. how goods and services are produced c. what operations managers do d. a costly part of the enterprise e. all of the above
E
Henry Ford is known as the Father of Scientific Management.
F
Shewhart's contributions to operations management came during the Scientific Management Era.
F
Shortening the project's duration by deleting unnecessary activities is called "project crashing."
F
The critical path can be determined by use of either the "forward pass" or the "backward pass."
F
"How much inventory of this item should we have?" is within the critical decision area of managing quality.
False
"Should we make or buy this component?" is an issue in the _____________________________
SCM
What is the basic difference between PERT and CPM?
The basic difference between PERT and CPM is that PERT requires three time estimates of activity completion time, whereas CPM uses only a single estimate. (Project management techniques: PERT and CPM, moderate)
Which of the following approaches may use subcontracting to accommodate excess demand? A. lagging demand with incremental expansion B. Subcontracting should never be used to accommodate excess demand. C. leading demand with a one-step expansion D. leading demand with incremental expansion
a
Which of the following does NOT belong to ordering costs? A. interest payments B. cost of supplies C. clerical support D. order processing
a
Which of the following is a qualitative forecasting method? A. Delphi method B. trend projection C. linear regression D. naive approach
a
Which of the following statements is true? a. The person most responsible for initiating use of interchangeable parts in manufacturing was Eli Whitney. b. The origins of management by exception are generally credited to Frederick W. Taylor. c. The person most responsible for initiating use of interchangeable parts in manufacturing was Walter Shewhart. d. The origins of the scientific management movement are generally credited to Henry Ford. e. The person most responsible for initiating use of interchangeable parts in manufacturing was Henry Ford.
a
Which of the following TQM tools would be best suited for displaying the number of students majoring in each business discipline? A. scatter diagram B. histogram C. flowchart D. cause-and-effect diagram
b
Which of the following allows a segment of the master schedule to be designated as "not to be rescheduled?" A. freeze point B. time fence C. pegging D. system nervousness
b
Which of the following is a requirement to be able to compute expected monetary value? A. each state of nature is equally likely to occur B. the probability of each state of nature is known C. the probability of each decision alternative is known D. each decision alternative needs at least two states of nature
b
Which of the following is an award for quality achievement in Japan? A. ISO 9000 B. Deming Prize C. Tokyo Medal for Excellence in Quality D. Malcolm Baldrige National Quality Award
b
Which of the following is the Japanese term used to describe continuous improvement efforts? A. six sigma B. kaizen C. kanban D. poka-yoke
b
Gradual, long-term movement in time series data is called a. seasonal variation b. cycles c. trends d. exponential variation e. random variation
c
In manufacturing, excess capacity can be used to A. do fewer setups, lengthen production runs, and drive down inventory costs. B. do more setups, lengthen production runs, and drive down inventory costs. C. do more setups, shorten production runs, and drive down inventory costs. D. do fewer setups, shorten production runs, and drive down inventory costs.
c
JIT has an internal focus while lean production begins with an external focus on A. supplier relationships. B. design. C. customers. D. logistics.
c
The Beta distribution is used in project management to a. determine which activity should be crashed b. calculate the probability that a project will be completed within its budget c. calculate expected activity times d. calculate slack for activities on the critical path e. none of the above
c
Which of the following could reduce costs and increase profit? A. improved reputation B. flexible pricing C. increased productivity D. improved response
c
Which of the following inputs has the greatest potential to increase productivity? a. labor b. globalization c. management d. capital e. none of the above
c
Which of the following is NOT a Lean quality tactic? A. build fail-safe methods B. empower employees C. cross-train workers to add flexibility D. use statistical process control
c
Which of the following is NOT an example of technology's impact on the financial services industry? A. electronic funds transfer B. debit cards C. RFID D. Internet stock trading
c
The five elements in the management process are a. plan, direct, update, lead, and supervise b. accounting/finance, marketing, operations, and management c. organize, plan, control, staff, and manage d. plan, organize, staff, lead, and control e. plan, lead, organize, manage, and control
d
Virtually every restaurant deals with its suppliers on A. a production order quantity basis. B. a fixed-period inventory system basis. C. an EOQ basis. D. a JIT basis.
d
Walter Shewhart is listed among the important people of operations management because of his contributions to a. assembly line production b. measuring the productivity in the service sector c. just-in-time inventory methods d. statistical quality control e. all of the above
d
What does EMV stand for? A. expected machine valuation B. expected maintenance volume C. enterprise management valuation D. expected monetary value
d
What is a concept that results in material being produced only when requested and moved to where it is needed just as it is needed? A. requisition system B. procrastination system C. push system D. pull system
d
Which of the following approaches makes new capacity a larger increase at the beginning of the period? A. leading demand with incremental expansion B. attempts to have an average capacity that straddles demand with incremental expansion C. lagging demand with incremental expansion D. leading demand with a one-step expansion
d
Which of the following is NOT a type of inventory? A. work-in-process B. finished goods C. raw material D. MRP
d
Which of the following is not true regarding core competencies? a. They may include specialized knowledge. b. They may represent a small portion of an organization's total business. c. They may include proprietary technology or information. d. They may be good candidates for outsourcing. e. They may include unique production methods
d
Outsourcing manufacturing is also known as a. license manufacturing b. sublease manufacturing c. concurrent manufacturing d. hollow manufacturing e. contract manufacturing
e
The number-one reason driving outsourcing for many firms is to focus on core competencies.
false
Cycles and random variations are both components of time series.
true
Nearly any business activity can be outsourced.
true
One advantage of exponential smoothing is the limited amount of record keeping involved.
true
The theory of comparative advantage states that you should allow another firm to perform work activities for your company if that company can do it more productively than you can
true
In trend projection, the trend component is the slope of the regression equation. 16. In trend projection, a negative regression slope is mathematically impossible.
true false