EXAM 1

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Which of the following statements is NOT true? -When excess capacity exists, cost can decrease.When -excess capacity exists, cost can increaseWhen -capacity is inadequate, market share can shrink.When -capacity is inadequate, customers can be lost

When excess capacity exists, cost can decrease.

The person who believed that management must do more to improve the work environment and processes so that quality can be improved was

W. Edwards Deming.

Which of the following is NOT one of the four reasons that we study OM?

We want to understand what marketing managers do

A set of skills, talents, and capabilities in which a firm is particularly strong is referred to as

core competencies

An international business is a firm that

engages in international trade or investment.

Which of the following is a quantitative forecasting method?

exponential smoothing

Which of these is NOT an advantage of outsourcing?

potential creation of future competition

Which of the following OM decisions determines how a good or service is produced and commits management to specific technology, quality, human resources, and capital investment?

process and capacity design

Competing on cost is

achieving maximum value as perceived by the customer

The production process at Hard Rock Cafe does NOT include which of the following activities?

advertising

Many services maintain records of sales noting:

all of these answers. (The day of the week, unusual events, the weather, and holiday impacts)

A strategy is

an action plan to achieve a mission

Which of the following activities at a commercial bank is NOT an operations activity?

auditing

Which of the following is NOT a characteristic of services?

standardized product

A business's stakeholders, whose conflicting perspectives cause ethical and social dilemmas, include:

All answers: Suppliers, owners, employees, and lenders

SWOT analysis refers to

strengths, opportunities, weaknesses, and threats.

According to the textbook (but disputed by the instructor), competition in the 21st century is no longer between companies; it is between

supply chains

A forecasting technique consistently produces a negative tracking signal. This means that

the forecasting technique consistently over-predicts.

"Today's forecast equals yesterday's actual demand" is referred as

the naive approach.

In general, the supply chain starts with

the provider of basic raw materials.

Competing on differentiation is

concerned with uniqueness.

Which of the following is a qualitative forecasting method?

Delphi method

Which one of the following statements is NOT true about the forecasting in the service sector?

Detailed forecasts of demand are not needed.

What is the difference between a multinational corporation (MNC) and an international business?

For the multinational firm, the business done outside the country is especially significant.

Which of the following statements is NOT true regarding forecasting?

Forecasting is exclusively an objective prediction.

The father of scientific management is

Frederick W. Taylor

Which one of the following statements is incorrect regarding globalization and globalization strategies?

Globalization strategies could simplify the operations manager's job

Which forecast error measure is probably the easiest to interpret?

MAPE

Current challenges in operations management include all of the following EXCEPT:

None of the other answers are exceptions, i.e., all are current challenges.

Which of the following is a reality each company faces regarding its forecasting system?

Outside factors that we cannot predict or control often impact the forecast.

Which of these statements accurately captures a current trend in operations?

Rapid product development.

Forecasts may be influenced by a product's position in its life cycle. True or false?

True

Linear-regression analysis is a straight-line mathematical model to describe the functional relationships between independent and dependent variables. True or False?

True

Most forecasting techniques assume that there is some underlying stability in the system.

True

The World Trade Organization has helped to significantly reduce tariffs around the world.

True

Which of the following does not represent competing on response?

based on providing uniqueness

The service sector constitutes what percentage of employment in the United States?

between 80% to 95%

CPFR is

collaborative, planning, forecasting, and replenishment.

As compared to long-range forecasts, short-range forecasts:

deal with less comprehensive issues supporting management decisions.

Which of these is NOT a disadvantage of outsourcing?

decreased logistics and inventory costs

Which of the following tasks would NOT typically represent an operations management activity at Hard Rock Cafe?

filing a tax return

Which of the following is NOT among the ethical and social challenges facing operations managers?

increasing executive pay

Which of the following is NOT one of the three strategic approaches to competitive advantage?

innovation

Productivity increases when

inputs decrease while outputs remain the same.

A tracking signal

is a measurement of how well a forecast is predicting actual values.

Which of the following is NOT an OM strategy/issue during the introduction stage of the product life cycle?

long production runs

Which appears to provide the best opportunity for increases in productivity?

management

A large percentage of the revenue of most firms is spent on which function?

operations

Which of the following is NOT considered to be one of the three primary functions that all organizations perform?

research and development

What two numbers are contained in the daily report to the CEO of Walt Disney Parks & Resorts regarding the six Orlando parks?

yesterday's forecasted attendance and yesterday's actual attendance


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