ISDS 3115 Test 1
A forecast based on the previous forecast plus a percentage of the forecast error is a(n): A. moving average forecast. B. exponential smoothing forecast. C. qualitative forecast. D. weighted moving average forecast. E. naive forecast.
B. exponential smoothing forecast
A fundamental distinction between trend projection and linear regression is that: A. only linear regression can have a negative slope. B. in trend projection the independent variable is time; in linear regression the independent variable need not be time, but can be any variable with explanatory power. C. trend projection uses least squares while linear regression does not. D. trend projection uses two smoothing constants, not just one. E. trend projection can be a function of several variables, while linear regression can only be a function of one variable.
B. in trend projection the independent variable is time; in linear regression the independent variable need not be time, but can be any variable with explanatory power.
Which operations function at a manufacturing facility strives for the efficient use of machines, space, and personnel? A. design B. industrial engineering C. process analysis D. production and inventory control
B. industrial engineering
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? A. design of goods and services B. process and capacity design C. human resources and job design D. managing quality
B. process and capacity design
Which of the following is an example of a "hidden" production function? A. producing a computer B. manufacturing a television C. transplanting a liver D. assembling a motorcycle
C. transplanting a liver
Which of the following statements regarding CPM is true? A. All activities on the critical path have their LS equal to the maximum EF of all immediate predecessors. B. The critical path is that set of activities that has positive slack. C. The critical path is the shortest of all paths through the network. D. All activities on the critical path have their ES equal to their LF. E. Some networks have no critical path.
A. All activities on the critical path have their LS equal to the maximum EF of all immediate predecessors.
Which of the following is a concern as firms move toward globalization? A. Differences in social and cultural behavior B. Opportunities to reach new markets C. Simplification of operations management D. Decreases in exchange rate risk
A. Differences in social and cultural behavior
Which of the following is not a type of qualitative forecasting? A. moving average B. market survey C. Delphi method D. jury of executive opinion E. sales force composite
A. Moving average
Which of the following statements regarding critical paths is true? A. On a specific project, there can be multiple critical paths, all with exactly the same duration. B. Every network has only one critical path. C. The shortest of all paths through the network is the critical path. D. Some activities on the critical path may have slack. E. The duration of the critical path is the average duration of all paths in the project network.
A. On a specific project, there can be multiple critical paths, all with exactly the same duration.
Which of the following sectors has seen a consistent rise in the percentage of workers in the United States since 1950? A. Services B. Manufacturing C. Agriculture D. None of the above
A. Services
Slack is the amount of time an activity can be delayed without delaying the entire project. A.True B.False
A. True
The sales force composite forecasting method relies on salespersons' estimates of expected sales. A. True B. False
A. True
The production process at Hard Rock Cafe does NOT include which of the following activities? A. advertising B. cooking C. receiving D. placing raw materials in cold storage
A. advertising
In a PERT network, non-critical activities that have little slack need to be monitored closely: A. because near-critical paths could become critical paths with small delays in these activities. B. because they have a high risk of not being completed. C. because slack is undesirable and needs to be eliminated. D. because they are causing the entire project to be delayed. E. because PERT treats all activities as equally important.
A. because near-critical paths could become critical paths with small delays in these activities.
The degree or strength of a relationship between two variables is shown by the: A. coefficient of correlation. B. alpha. C. mean. D. mean absolute deviation. E. cumulative error.
A. coefficient of correlation.
Competing on differentiation is A. concerned with uniqueness. B. based upon low-cost leadership. C. concerned with reliability of scheduling. D. based upon flexibility.
A. concerned with uniqueness.
A method managers use to evaluate the resources at their disposal and manage or alter them to achieve competitive advantage is referred as A. resources view. B. competitive advantage. C. value-chain analysis. D. five forces analysis.
A. resources view.
Increasing the number of periods in a moving average will accomplish greater smoothing, but at the expense of: A. sensitivity to real changes in the data. B. accuracy. C. manager understanding. D. stability. E. All of the above are diminished when the number of periods increases.
A. sensitivity to real changes in the data.
A way to identify those elements in the product/service chain that uniquely add value is referred to as A. value-chain analysis. B. supply chain management. C. the five forces model. D. the resources view.
A. value-chain analysis.
A project organization works best for an organization when the project resides in only one of its functional areas. A. True B. False
B. False
In a regression equation where y-hat is demand and x is advertising, a coefficient of determination (R^2) of .70 means that 70% of the variance in advertising is explained by demand. A. True B. False
B. False
In trend projection, a negative regression slope is mathematically impossible. A. True B. False
B. False
Mean squared error and exponential smoothing are two measures of the overall error of a forecasting model. A. True B. False
B. False
Shortening the project's duration by deleting unnecessary activities is called "project crashing." A. True B. False
B. False
The larger the number of periods in the simple moving average forecasting method, the greater the method's responsiveness to changes in demand. A. True B. False
B. False
The shortest of all paths through the network is the critical path. A. True B. False
B. False
Work breakdown structure is a useful tool in project management because it addresses the timing of individual work elements. A. True B. False
B. False
Which of the following organizations does NOT belong to the service sector? A. Costco B. Ford Motor Company C. San Diego Zoo D. Southwest Airlines
B. Ford Motor Company
Which one of the following statements is incorrect regarding globalization and globalization strategies? A. Globalization strategies could add value to products and services. B. Globalization strategies could simplify the operations manager's job C. Globalization strategies could contribute to efficiency. D. Globalization means customers, talent, and suppliers are worldwide.
B. Globalization strategies could simplify the operations manager's job
Which of the following statements regarding PERT analysis is true? A. Each activity has two estimates of its duration. B. Only critical activities contribute to the project variance. C. The most likely time is equivalent to the expected activity time. D. project standard deviation is the sum of all critical activity standard deviations. E. Project variance is the sum of all activity variances.
B. Only critical activities contribute to the project variance.
Competing on cost is A. concerned with reliability of scheduling. B. achieving maximum value as perceived by the customer. C. based upon flexibility. D. concerned with uniqueness.
B. achieving maximum value as perceived by the customer.
The service sector constitutes what percentage of employment in the United States? A. between 70% to 80% B. between 80% to 90% C. between 60% to 70% D. between 50% to 60%
B. between 80% to 90%
Which of the following is NOT a characteristic of services? A. intangible B. unique C. standardized product D. produced and consumed simultaneously
C. standardized product
How does Walmart gain a competitive advantage? A. Competing on differentiation B. Competing on response C. Competing on cost D. None of the above
C. Competing on cost
Which of the following uses three types of participants: decision makers, staff personnel, and respondents? A. time series B. associative models C. Delphi method. D. jury of executive opinion E. sales force composite
C. Delphi method
Disney differentiates itself by not simply having customers go on a ride, but instead immersing them in the experience. What is the name for this type of differentiation? A. Unique differentiation B. Active differentiation C. Experience differentiation D. Immersion differentiation
C. Experience differentiation
The phases of project management are: A. GANTT, CPM, and PERT. B. different for manufacturing projects than for service projects. C. planning, scheduling, and controlling. D. planning, programming, and budgeting. E. planning, organizing, staffing, leading, and controlling.
C. planning, scheduling, and controlling.
A local project being analyzed by PERT has 42 activities, 13 of which are on the critical path. If the estimated time along the critical path is 105 days with a project variance of 25, what is the probability that the project will be completed in 95 days or less? A. -0.4 B. 4.2 C. 0.9772 D. 0.0228 E. .3444
D. 0.0228
Many operations management (OM) innovations have come from outside of the United States. Which of the following OM innovations is matched with the wrong country/region? A. Germany -> robotics B. Japan -> inventory management C. Scandinavia -> ergonomics D. All of the above are correct
D. All of the above are correct
Which of the following is NOT one of the phases of project management? A. controlling B. scheduling C. planning D. budgeting. E. All of the above are project management phases.
D. Budgeting
Activity R on a CPM network has predecessors M and N, and has successor S. R has duration 5. N's late finish is 18, while M's is 20. S's late start is 14. Which of the following is definitely true? A. R is critical and has zero slack. B. S is a critical activity. C. N is a critical activity. D. The set of times cannot all be possible. E. R has no slack but is not critical.
D. The set of times cannot all be possible.
Which of the following techniques uses variables such as price and promotional expenditures, which are related to product demand, to predict demand? A. trend projection B. weighted moving average C. exponential smoothing D. associative models E. moving average
D. associative models
Which of the following is NOT a reason why domestic business operations decide to change to some form of international operation? A. improve products B. improve the supply chain C. improve operations D. attract and retain local talent
D. attract and retain local talent
Which of these is a reason why outsourcing continues to expand? A. more expensive transportation B. less reliable transportation C. rapid development and deployment of advancements in automation D. increased technological expertise and specialization
D. increased technological expertise and specialization
Which of these is NOT one of the basic functions of the management process? A. staffing B. controlling C. leading D. inspecting
D. inspecting
The forecasting technique that pools the opinions of a group of experts or managers is known as: A. management coefficients. B. the expert judgment model. C. multiple regression. D. jury of executive opinion. E. market survey.
D. jury of executive opinion.
A theory which states that countries benefit from specializing in (and exporting) goods and services in which they have a relative advantage, and they benefit from importing goods and services in which they have a relative disadvantage is referred to as the A. theory of exportation. B. theory of planned behavior. C. theory of relative perception. D. theory of comparative advantage.
D. theory of comparative advantage.
The primary advantage of outsourcing is A. to decrease logistics and transportation costs. B. to decrease supply chain risk. C. to allow a company to focus on its non-core competencies. D. to allow a company to focus on its core competencies.
D. to allow a company to focus on its core competencies.
Roughly what percentage of ALL jobs are in operations management? A. 10% B. 25% C. 55% D. 40%
D. 40%
The difference between AON and AOA networks is that: A. AOA networks sometimes require dummy activities. B. nodes consume no resources or time in AOA networks. C. both are acceptable in practice; however, Microsoft Project uses AON. D. nodes designate activities in AON, while arrows designate activities in AOA. E. All of the above are true.
E. All of the above are true.
