Reference no: EM132248750

OPERATIONS AND SUPPLY CHAIN MANAGEMENT 

MULTIPLE CHOICE QUESTIONS

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 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.

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

13. 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.

14. 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

15. 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

16. The purpose of Six Sigma is to:
a. Lower the amount of defective products
b. Increase number of units that are defective
c. Count to six
d. Do data analysis
e. None of the above

17. 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.

18. 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.

19. 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.

20. 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.

21. 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.

22. 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.

23. 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.

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

25. 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.