Reference no: EM132138565

OPERATIONS AND SUPPLY CHAIN MANAGEMENT

1. Operations management and supply chain management activities:
a. are independent of the production and delivery of services and goods.
b. are related to the delivery of services and goods.
c. are interrelated and impact the production and delivery of services and goods.
d. impact the product development life cycle.
e. are related to the production of services and goods.

2. The competitive capabilities of an organization are what the organization:
a. would like to achieve.
b. is required to achieve by corporate.
c. must finance to deliver new products.
d. must market to their competitors.
e. is able to achieve.

3. The four types of competitive priorities include:
a. cost, quality, technology, and flexibility.
b. cost, quality, agility, and social responsibility.
c. cost, quality, flexibility, and speed of service.
d. cost, quality, delivery, and flexibility.
e. cost, delivery, agility and speed of service.

4. Which of the following is an example of an organization competing on cost? An organization that:
a. provides a product or service which is less expensive than the competition.
b. provides a variety of price points for their products or services.
c. controls the cost of their products or services through marketing tactics.
d. provides a product or service which is more expensive than the competition.
e. provides a product or service guarantee.

5. When comparing manufacturing and service activities, measuring the productivity and quality of services is:
a. more difficult than manufacturing since services are intangible and have more direct contact with the customer.
b. easier than manufacturing since services are intangible and have more direct contact with the customer.
c. more difficult than manufacturing since services are tangible and have a more direct contact with the customer.
d. easier than manufacturing since services are intangible and have less direct contact with the customer.
e. more difficult than manufacturing since services are tangible and have a less direct contact with the customer.

6. Which of the following is true with regards to the output of manufacturing?
a. It is a tangible product.
b. It is often produced and consumed separately.
c. It can be inventoried.
d. It has a consistent product definition.
e. All of the above.

7. Structural operational decision areas consist of:
a. investments in workforce, production planning/control, quality systems, and organization.
b. investments in facilities, capacity, vertical integration/sourcing, and technology.
c. investments in workforce, facilities, quality systems, and technology.
d. investments in facilities, capacity, production planning/control, and quality systems.
e. None of the above.

8. The implementation of total quality management (TQM):
a. is the same for both manufacturing and service organizations.
b. only applies to manufacturing organizations since continuous improvement tools and techniques are used to improve processes.
c. only applies to the service organizations and emphasizes customer satisfaction.
d. addresses all areas and employees of an organization, emphasizes customer satisfaction, and uses continuous improvement tools and techniques.
e. only considers customer satisfaction and customer retention.

9. Quality costs consider the following EXCEPT:
a. internal failure costs.
b. assurance costs.
c. external failure costs.
d. prevention costs.
e. maintenance costs.

10. W. Edwards Deming is known for all of following EXCEPT:
a. father of modern quality management.
b. after World War II he went to Japan and revolutionized the practice of quality management.
c. emphasized the philosophy of continuous improvement.
d. developed the concept of Six Sigma.
e. developed his 14 points for implementing quality improvement plans.

11. The following quality guru created cause and effect diagrams or a fishbone diagram which allow a user to visualize all possible causes of a result and to help find the root cause of process imperfections.
a. Crosby
b. Deming
c. Ishikawa
d. Feigenbaum
e. Juran

12. The four absolutes of quality as defined by Philip Crosby consists of the following EXCEPT:
a. quality is defined as conformance to requirements, not as "goodness" or "elegance".
b. the system for causing quality is prevention, not appraisal.
c. the performance standard must be zero defects, not "that's close enough".
d. the measurement of quality is the price of nonconformance, not indices.
e. quality is producing the maximum production quantity, not the quota.

13. A company that has been awarded the Malcolm Baldrige National Quality Award:
a. is a role model organization with high performing business processes.
b. must be a service or manufacturing organization.
c. must obtain ISO 9001:2000 certification.
d. must be using Six Sigma and the DMAIC methodology in their organization.
e. will share financial information with other high quality companies.

14. The Six Sigma approach to quality improvement:
a. is a requirement for companies pursing ISO 9000:2000 certification.
b. is a requirement in the Baldrige Performance Excellence Criteria.
c. is mandatory for all automotive companies.
d. can only be used in the manufacturing sector.
e. None of the above.

15. The reason for new product failure includes all of the following EXCEPT:
a. ineffective marketing campaigns.
b. product defects.
c. supply problems.
d. competition.
e. All of the above.

16. Initially mobile phones had lower voice quality but they provided higher mobility than traditional landline phones. This is an example of what type of innovation?
a. disruptive innovation
b. continuous innovation
c. radical innovation
d. blue ocean strategy
e. life cycle innovation

17. An example of continuous innovations would include:
a. adding variety to Kellogg's existing cereal line.
b. adding new menu items in a restaurant.
c. using a slightly different mix of components for a laptop computer.
d. repositioning an existing product for a new market.
e. All of the above.

18. During the stage of the product life cycle, the production or service delivery processes are standardized, unit costs become lower, sales volume reaches its maximum potential, and there is increased competition, often leading to lower prices for the customer.
a. introduction
b. growth
c. decline
d. maturity
e. phase out

19. During the stage of the product life cycle, a product's sales start decreasing, and the price of products falls because there are many competitors and firms start divesting resources to other emerging products.
a. introduction
b. growth
c. decline
d. maturity
e. phase out

20. Quality Function Deployment (QFD) uses the following four matrices EXCEPT:
a. house of quality which links the voice of the customer to the product design attributes.
b. design matrix links the design attributes to the product components or features.
c. operating matrix links the product components to process decisions.
d. cost matrix links the operating costs to production control decisions.
e. control matrix links the operating processes to production planning and control decisions.

21. In the service process matrix the service shop is categorized by:
a. low customer involvement and high labor intensity.
b. low customer involvement and low labor intensity.
c. high customer involvement and high labor intensity.
d. high customer involvement and low labor intensity.
e. None of the above.

22. In the service process matrix the mass service is categorized by:
a. low customer involvement and high labor intensity.
b. low customer involvement and low labor intensity.
c. high customer involvement and high labor intensity.
d. high customer involvement and low labor intensity.
e. None of the above.

23. The tradeoffs in the product-process matrix include:
a. volume.
b. unit cost.
c. flexibility.
d. variety.
e. All of the above.

24. Computerized technologies do all of the following EXCEPT:
a. provide customers with greater access.
b. decrease costs for the organization offering the product or service.
c. help improve the tracking of and accounting for information.
d. decrease the customer interaction.
e. allow companies to market directly to customers.

25. The bottleneck in a process is the step with the:
a. fastest cycle time.
b. slowest cycle time.
c. greatest variation in cycle time.
d. most consistent cycle time.
e. None of the above.

26. A technique that utilizes past demand data to predict future demand by examining cyclical, trend, and seasonal influences is referred to as:
a. time series analysis.
b. qualitative analysis.
c. causal analysis.
d. executive analysis.
e. sales force analysis.

27. The local coffee shop uses a naive approach to forecast the demand for lattes. If the latte demand for Sunday morning was 250 and Monday morning was 274, then using the naive approach the forecast for lattes on Tuesday morning would be:
a. 250 lattes.
b. 262 lattes.
c. 274 lattes.
d. 524 lattes.
e. Cannot determine with the data provided.

28. The difference between the forecast and the actual demand for a given period is referred to as the:
a. bias error.
b. random error.
c. forecast error.
d. seasonal error.
e. autocorrelation error.

29. Which of the following is a method for increasing responsiveness in the supply chain?
a. Deploying inventories of parts or finished goods.
b. Investing in lead-time reduction.
c. Selecting suppliers for speed, flexibility, and quality rather than cost.
d. Developing modular designs to postpone product differentiation.
e. All of the above.

30. The objective of an inventory system is to determine the:
a. quantity of an item which should be ordered and when the items should be ordered.
b. quantity of an item which should be ordered to maximize the quantity discounts.
c. reorder point to ensure the optimal ordered quantity will be ordered.
d. safety stock required to meet the expected demand.
e. None of the above.

31. The basic Economic Order Quantity (EOQ) model answers which of the following questions?
a. When to order.
b. How much safety stock to carry.
c. What is the reorder point.
d. How much to order.
e. When to take advantage of quantity discount.

32. In the basic Economic Order Quantity (EOQ) model if the lead time changes from 1 week to 3 weeks:
a. the EOQ will triple.
b. there is no impact on the EOQ.
c. the EOQ will be reduced.
d. the holding costs will increase.
e. the ordering costs will increase.

33. In a continuous review inventory system which of the following is true?
a. The order quantity is variable.
b. The order is placed at the end of the period.
c. The database is updated at the end of the period.
d. The inventory size is higher due to the increased safety stock.
e. None of the above.

34. In a periodic review inventory system which of the following is true?
a. The order quantity is variable.
b. The order is placed at the end of the period which can be.
c. The database is updated at the end of the period.
d. The inventory size is higher due to the increased safety stock.
e. All of the above.

35. Which of the following is an example of dependent demand?
a. television
b. car
c. bicycle
d. bicycle tires
e. refrigerator

36. Which of the following specifies the timing and size of new production orders, adjustments to existing order quantities, and expediting or delay of late/early orders?
a. capacity plan
b. bill of material
c. material requirements plan (MRP)
d. master schedule
e. enterprise resource plan (ERP)

37. The following are objectives of the master schedule EXCEPT:
a. balances the workload in terms of total capacity and capacity at each workstation
and for each worker.
b. provides a way of assessing the impact of new orders and providing delivery dates for accepted orders.
c. plans production quantities to satisfy demand based on customer orders and forecasts.
d. usually frozen or unchangeable in the near term (the next few days or weeks).
e. All of the above are objectives of the master schedule.

38. The amount of inventory that is physically in stock at the end of the most recent time bucket is the:
a. beginning inventory.
b. gross requirements.
c. scheduled receipts.
d. projected on-hand inventory.
e. planned receipts.

39. The estimated inventory that will be available after the gross requirements have been satisfied, plus any planned or scheduled receipts for that time bucket is the:
a. beginning inventory.
b. gross requirements.
c. scheduled receipts.
d. projected on-hand inventory.
e. planned receipts.

40. Which of the following is considered to be a critical feature of success for enterprise resource planning (ERP)?
a. Hardware must be carefully matched with an organization's business model.
b. Software must be carefully matched with an organization's business model.
c. Users of electronic inventory systems must be extensively trained.
d. Input data accuracy for electronic inventory systems must be close to 100 percent.
e. All of the above.