MANG3402 Operations Management HW questions

The expected value of perfect information is the same as the expected value with perfect information.

False

The expected value with perfect information assumes that all states of nature are equally likely.

False

which of the following is the best example of competing on low-cost leadership?

a firm produces its product with less raw material waste than its competitors do

Which of the statements below best describes office​ layout?

positions​ workers, their​ equipment, and​ spaces/offices to provide for movement of information

Operations management is applicable:

to all firms, whether manufacturing or service

Balancing​ low-cost storage with​ low-cost material handling is important in which of the​ following?

warehouse layout

Which of the following is NOT a retail layout​ practice?

All of the above are retail layout practices (locate the high-draw items around the periphery of the store, use end-aisle locations to maximize product exposure, use prominent locations for high-impulse and high-margin items, distribute power items throughout the store)

which of the following is a qualitative forecasting method?

Delphi method

"Making it right the first time" is the focus of the user-based definition of quality.

False

An improvement in quality must necessarily increase costs.

False

Conforming to standards is the focus of the product-based definition of quality.

False

Customer interaction is often high for manufacturing processes, but low for services.

False

Henry Ford is known as the Father of Scientific Management.

False

If a decision maker can assign probabilities of occurrences to the states of nature, then the decision-making environment is Decision Making under Uncertainty.

False

In trend projection, a negative regression slope is mathematically impossible.

False

Regression lines graphically depict "cause-and-effect" relationships.

False

Which of the following are among the 10 strategic operations management decisions? I. design of goods and services II. managing quality III. layout strategy IV. marketing V. pricing of goods and services

I, II, III

Which is not true regarding differences between goods and services?

Tangible goods are generally produced and consumed simultaneously; services are not.

All organizations, including service firms such as banks and hospitals, have a production function.

True

An example of a "hidden" production function is the transfer of funds between accounts at a bank.

True

Internal failure costs are associated with scrap, rework, and downtime.

True

One guideline for determining the arrangement and space allocation of a retail store is to place​ high-impulse and​ high-margin items in prominent locations.

True

Operations management is the set of activities that creates value in the form of goods and services by transferring inputs into outputs.

True

Servicescape refers to the physical surrounding in which the service is delivered.

True

Some of the operations-related activities of Hard Rock Café include designing meals and analyzing them for ingredient cost and labor requirements.

True

The phrase Six Sigma has two meanings. One is statistical, referring to an extremely high process, product, or service capability; the other is a comprehensive system for achieving and sustaining business success.

True

A strategy is

an action plan to achieve a mission

ABC analysis divides an​ organization's on-hand inventory into three classes based upon

annual dollar volume

Demand for a certain product is forecast to be 800 units per month, averaged over all 12 months of the year. The product follows a seasonal pattern, for which the January monthly index is 1.25. What is the seasonally-adjusted sales forecast for January?

800*1.25= 1,000 units

The service sector makes up approximately what percentage of all jobs in the United States?

85%

A fishbone chart is also known as:

A cause-and-effect diagram

Which of the following is a similarity between goods and services?

Both have quality standards

The process improvement technique that sorts the vital few from the trivial many is:

Pareto analysis

What is the primary reason why retailers tend to locate​ high-draw items around the periphery of the​ store?

This arrangement will help to maximize customer exposure to other items in the store.

demand forecasts serve as inputs to financial, marketing, and personnel planning.

True

production processes are being disbursed to take advantage of national differences in labor costs.

True

Total quality management emphasizes:

a commitment to quality that goes beyond internal company issues to suppliers and customers

Competing on cost is

achieving maximum value as perceived by the customer

Inspections should NOT take place

after costly or irreversible processes

Branch banks want to serve customers with more technology in less space to

all of the above (avoid going the way of Blockbuster, slash expenses, and more closely resemble an Apple store)

cost cutting in international operations can take place because of:

all of the above (less stringent regulations, lower taxes and tariffs, lower indirect costs, lower wage scales)

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

all of the above (suppliers, owners, lenders, employees)

"Souped up" ATM kiosks

are safer than traditional ATMs

which of the following is not a reason why domestic business operations decide to change to some form of international operation?

attract and retain local talent

which of the following is least likely to be a low-cost leadership competitive advantage?

broad product line

A problem that involves a sequence of decisions

can be better analyzed with a decision tree than by a decision table

Which of the TQM tools would be best suited for determining why a student's course registration is never correct?

cause-and-effect diagram

The creation of a unique advantage over competitors is referred as

competitive advantage

Competing on differentiation is

concerned with uniqueness

GE's recall of 3.1 million dishwashers cost the company more in repairs than the value of the actual dishwashers. This is an example of which quality principle?

cost of poor quality is underestimated

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

deal with less comprehensive issues supporting management decisions

cost minimization is an appropriate strategy in which stage of the product life cycle?

decline

The fundamental purpose of an organization's mission statement is to:

define the organization's purpose in society

which of the following is the first step in a forecasting system?

determine the use of the forecast

To develop a standard or benchmark, firms need to start with

determining what to benchmark

The objective of layout strategy is to

develop an efficient and effective system that meets competitive requirements

Ambient​ conditions; spatial layout and​ functionality; and​ signs, symbols, and artifacts are​ all:

elements of servicescapes.

which of the following is not one of the techniques for building employee empowerment?

eliminate formal organization structures such as teams and quality circles

The objective of warehouse layout is to

find the optimum​ trade-off between handling cost and costs associated with warehouse space.

cause-and-effect diagrams are also known as

fish-bone charts

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

globalization strategies could simplify the operations manager's job

Which of the following TQM tools would be best suited for displaying the number of students majoring in each business discipline?

histogram

which of the following OM strategy/issues should a firm with a product in the maturity stage of its life cycle be at least concerned with at the present time?

increase capacity

which of the following could reduce costs and increase profit?

increased productivity

Which of the following does NOT belong to ordering​ costs?

interest payments

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

management

A​ product-oriented layout

is organized around products or families of similar​ high-volume, low variety production.

Three commonly used productivity variables are:

labor, capital, management

Which of the following is an example of ambient​ conditions?

leather chairs at Starbucks

Which of the following trends is not part of the exciting OM challenges currently facing operations managers?

local focus

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

long production runs

Which of these is not one of the 10 strategic OM decisions?

marketing

which of the following is not one of the 10 strategic operations management decisions?

mass customization

The "four M's" of cause-and-effect diagrams are:

material, machinery/equipment, manpower, and methods

The main goal of retail layout​ is:

maximizing profitability per square foot of floor space

A forecast with a time horizon of about three months to three years is typically called a

medium-range forecast

Generally the goal of assembly line balancing is to

minimize imbalance between machines or personnel while meeting a required output from the line.

Which of the following is the purpose or rationale for an organization's existence?

mission

Policies based on ABC analysis might include investing

more in supplier development for A items

Bank customers want

more simplicity

which forecasting method considers several variables that are related to the variable being predicted?

multiple regression

which of the following is not a time-series model?

multiple regression

The two general approaches to forecasting are:

qualitative and quantitative

which of the following is not an OM strategy/issue during the growth stage of the product life cycle?

reduced capacity

Which of the following costs is not a cost of quality?

research and development

Which of the following activities at an airline is not an operations activity?

sales

which of the following forecasting steps comes directly after determining the time horizon of the forecast?

selecting the forecasting model(s)

Which of the following terms describes the physical surroundings in which a service takes​ place, and how they affect customers and​ employees?

servicescape

The forecasting time horizon that would typically be easiest to predict for would be the

short range

Banks of the future will be

smaller

Which of the following is not a characteristic of services?

standardized product

The objective of inventory management is to

strike a balance between inventory investment and customer service

Productivity measurement is complicated by:

the fact that precise units of measure are often unavailable

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

the naive approach

The American Society for Quality defines quality as

the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs

linear regression is most similar to which of the following?

the trend projection method of forecasting

which of the following statements about organizational missions is false?

they are formulated after strategies are known

If Brandon Edward were working to develop a forecast using a moving averages approach, but he noticed a detectable trend in the historical data, he should:

use weights to place more emphasis on recent data

Three broad categories of definitions of quality are

user based, manufacturing based, and product based

Which of the following arranges machinery and equipment to focus on production of a single product or group of related​ products?

work-cell layout