Question
Question 1
Comparing goods and services, the similarities stop, and significant differences occur, when the operations involve contact between people.
· TRUE
· FALSE
Question 2
Production and operations management is linked to all other managerial functions in the organization and is applicable to both manufacturing and services.
· TRUE
· FALSE
Question 3
When bureaucracy gains control of an organization, it strives to remove corrective counter swings and maintain existing conditions.
· TRUE
· FALSE
Question 4
The stages of history have moved production and operations capabilities from low-volume custom work through high-volume rapid and continuous output systems.
· TRUE
· FALSE
Question 5
With the _____ approach, operations management is expected to perform with minimum reference to other parts of the business. This approach concentrates on the specific tasks that must be done to make the product or deliver the service.
a) Systems
b) Customer relationship
c) functional field
d) operations
Question 7
Similarities between services and manufacturing can be noted when service operations are based upon _____ in information processing.
a) Identical methods
b) Repetitive stepe
c) High voluma
d) Similar steps
Question 8
One of the most important functions of the P/OM system is _____. Raw materials and components have lower utility (for customers) before this function is employed.
a) Transformation
b) Translation
c) Creation
d) Production
Question 9
_____ needed to carry out the transformation function determines the production rate.
a) Time
b) Space
c) Input
d) Cost
Question 10
A Stage _____ company is a P/OM innovator. It has short and long term planning horizons that are integrated.
a) IV
b) V
c) I
d) III
Question 11
_____ is the stage at which P/OM development is internally supportive to the company’s competitive position.
a) Stage I
b) Stage II
c) Stage III
d) Stage V
Question 12
P/OM strategic thinking is used to help find the best product line for the marketplace and then to make these products at the___.
a) LOW COST
b) HIGHEST QUALITY
c) MAXIMUN PRODUCTION LEVEL
d) ALL OF THE ABOVE
Question 13
The supplier-producer-customer value chain, by definition adds value at every step, which illustrates strategic impact operating on a _____ scale.
a) LOCAL
b) ORGANIZATIONAL
c) GLOBAL
d) CENTRALIZED
Question 14
A first major step in the history of P/OM development was
a) scientific management.
b) Lean production systems
c) Interchangeable parts
d) Global completion
Question 15
In 1912, _____ developed sequenced assembly, which allows assembly to be a continuous flow shop process.
Adam smith
Henry ford
Frederick W Taylor
Walter Shewhart
Question 16
Often _____ technology is imposed on _____ processes by employees who lack training and experience with the new technology. Product life is short. This allows little time to enjoy the advantages of new technology applied to evanescent and even obsolescent product lines.
New; old
New; new
Old; old
Old; new
Question 17
If inputs increase by 30% and outputs decrease by 15%, what is the percentage change in productivity?
100% decrease
11.54% increase
34.62% decrease
15% increase
15% decrease
Question 18
A firm produces handbags using three workers. On Tuesday, Jane completed 60 bags in 6 hours, Ron completed 50 bags in 7 hours, and Mary completed 80 bags in 5 hours. What was the overall productivity of the firm?
7.92 bags/hour
11.05 bags/hour
10.00 bags/hour
10.56 bags/hour
61.67 bags/hour
Question 19
Rodrigo employs five workers. He collected the following data from last week.
Worker
Hours
Units Completed
Oscar
40
60
Sonia
32
68
Cesar
50
78
Jessica
36
70
Rita
44
74
Which painter was least productive last week?
Oscar
Sonia
Cesar
Jessica
Rita
Question 20
A company used to produce 300 units every day, but 20% of the units were defective. After installing a new process, the defect rate has been reduced to 5%, while output hasremained the same. What is the percent increase in productivity due to installing the new process?
15.79%
0.00%
15.00%
18.75%
-75.00%
Question 21
Based on the demand data for an item A for last two weeks, you do a trend analysis and find the trend equation to be Y = 50 + 4X. The company works five days (Monday through Friday) per week. Make a forecast for Tuesday of week 3 for this product.??
62
58
98
114
can not be determined
Question 22
Given the following data, use exponential smoothing (? = .2) to develop a demand forecast for period 3. Assume the forecast for the initial period (period 1) is 5. What is the forecast for period 3? (Note: You do not need additional information to answer this question).
Period
Demand
1
7
2
9
4.68
5.40
6.12
9.00
can not be determined
Question 23
2007
2008
2009
Fall
50
80
120
Winter
150
450
510
Spring
500
600
700
Summer
400
490
610
Joe’s Equipment Distributors sells “Low and Loud” brand lawnmowers. Total demand in 2010 is expected to be 2000 units. Given the historical sales figures listed below, find the forecast for the summer quarter in 2010 using the seasonal forecasting model.
Close to 452
Close to 654
Close to 500
Close to 610
Close to 800
Question 24
A firm has the following order history over the last 6 months.
January
120
February
95
March
100
April
75
May
100
June
50
What would be a 3-month weighted moving average forecast for July, using weights of 40% for the most recent month, 30% for the month preceding the most recent month, and 30% for the month preceding that one?
Close to105
Close to 76
Close to 75
Close to 74
Close to 72
Question 25
What is the mean absolute deviation of the following forecasts?
Month
Actual Sales
Forecast
Jan.
614
600
Feb.
480
480
Mar.
500
550
Apr.
500
600
41
-34
164
100
25
Question 26
Consider the data listed below.
Month
Actual Demand
Forecast (using 4-month moving average)
Jan.
10,000
May
14,000
13,500
What is the 4-month moving average forecast for June? Identify the correct answer. (Note: You do not need additional information to answer this question).
14000
not enough information is given to answer the question
14500
13500
15333
Question 27
In exponential smoothing, what values can the smoothing constant, ?, have?
[-1 to 1]
]1 to]
[0 to]
[0 to 1]
[- to]
Question 28
The larger the value of ? in the exponential smoothing method of forecasting method, the greater the method’s responsiveness to changes in demand.
True
False
Question 29
Month
1
2
3
4
5
6
Actual Demand
715
675
640
587
702
760
Forecast
700
645
660
648
655
718
Find the value of the tracking signal at the end of month 6 based on the actual demand and forecast given in the following table.
Close to 1.46
Close to 1.48
Close to 1.50
Close to 35
Close to 53
Question 30
Which of the following statements is true on the basis of the six-month data given in the following table?
Month
1
2
3
4
5
6
Actual Demand
715
675
640
587
702
760
Forecast
700
645
660
648
655
718
The demand is being overestimated
The demand is being underestimated
