Question 1 

1.Comparing goods and services, the similarities stop, and significant differences occur, when the operations involve contact between people.

 

True

 

False

2.5 points   

Question 2 

1.Production and operations management is linked to all other managerial functions in the organization and is applicable to both manufacturing and services.

 

True

 

False

2.5 points   

Question 3 

1.When bureaucracy gains control of an organization, it strives to remove corrective counter swings and maintain existing conditions.

 

True

 

False

2.5 points   

Question 4 

1.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

2.5 points   

Question 5 

1.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.

 

systems   

 

customer relationship

 

functional field

 

operations

2.5 points   

Question 6 

1.Managing a sports team is an excellent example of a purposeful effort that is enhanced by using the _____ approach.

 

systems

 

customer relationship

 

functional field

 

operations

2.5 points   

Question 7 

1.Similarities between services and manufacturing can be noted when service operations are based upon _____ in information processing.

 

identical methods

 

repetitive steps

 

high volume

 

similar steps

2.5 points   

Question 8 

1.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.

 

transformation

 

translation

 

creation

 

production

2.5 points   

Question 9 

1._____ needed to carry out the transformation function determines the production rate.

 

Time

 

Space

 

Input

 

Cost

2.5 points   

Question 10 

1.A Stage _____ company is a P/OM innovator. It has short and long term planning horizons that are integrated.

 

IV

 

V

 

I

 

III

2.5 points   

Question 11 

1._____ is the stage at which P/OM development is internally supportive to the company’s competitive position.

 

Stage I

 

Stage II

 

Stage III

 

Stage IV

2.5 points   

Question 12 

1.P/OM strategic thinking is used to help find the best product line for the marketplace and then to make these products at the___.

 

lowest cost.

 

highest quality.

 

maximum productivity level.

 

all of the above

2.5 points   

Question 13 

1.The supplier-producer-customer value chain, by definition adds value at every step, which illustrates strategic impact operating on a _____ scale.

 

local

 

organizational

 

global

 

centralized

2.5 points   

Question 14 

1.A first major step in the history of P/OM development was

 

scientific management.

 

lean production systems.

 

interchangeable parts.

 

global competition.

2.5 points   

Question 15 

1.In 1912, _____ developed sequenced assembly, which allows assembly to be a continuous flow shop process.

 

Adam Smith

 

Henry Ford

 

Frederick W. Taylor

 

Walter Shewhart

2.5 points   

Question 16 

1.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

2.5 points   

Question 17 

1.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

2.5 points   

Question 18 

1.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

2.5 points   

Question 19 

1.Rodrigo employs five workers. He collected the following data from last week.

WorkerHoursUnits Completed

Oscar4060

Sonia3268

Cesar5078

Jessica3670

Rita4474

2.

Which painter was least productive last week?

 

Oscar 

 

Sonia

 

Cesar 

 

Jessica 

 

Rita 

2.5 points   

Question 20 

1.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%

2.5 points   

Question 21 

1.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

5 points   

Question 22 

1.Given the following data, use exponential smoothing (α = .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).

PeriodDemand

17

29

2.

 

4.68 

 

5.40 

 

6.12 

 

9.00 

 

Can not be determined 

5 points   

Question 23 

1.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.

2.200720082009

Fall5080120

Winter150450510

Spring500600700

Summer400490610

3.

 

Close to 452 

 

Close to 654 

 

Close to 500 

 

Close to 610 

 

Close to 800 

5 points   

Question 24 

1.A firm has the following order history over the last 6 months.

January120

February95

March100

April75

May100

June50

2.

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 to 105 

 

Close to 76 

 

Close to 75 

 

Close to 74 

 

Close to 72 

5 points   

Question 25 

1.What is the mean absolute deviation of the following forecasts?

MonthActual SalesForecast

Jan.614600

Feb.480480

Mar.500550

Apr.500600

 

41 

 

-34 

 

164 

 

100 

 

25 

5 points   

Question 26 

1.Consider the data listed below.

MonthActual DemandForecast (using 4-month moving average)

Jan.10,000

May14,00013,500

2.

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).

 

14,000 

 

Not enough information is given to answer the question. 

 

14,500 

 

13,500 

 

15,333 

5 points   

Question 27 

1.In exponential smoothing, what values can the smoothing constant, α, have? 

 

[-1 to 1] 

 

[1 to ∞] 

 

[0 to ∞] 

 

[0 to 1] 

 

[-∞ to ∞] 

5 points   

Question 28 

1.The larger the value of α in the exponential smoothing method of forecasting method, the greater the method’s responsiveness to changes in demand. 

 True 

 False 

5 points   

Question 29 

1.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.

Month123456

Actual Demand715675640587702760

Forecast700645660648655718

2.

 

Close to 1.46 

 

Close to 1.48 

 

Close to 1.50 

 

Close to 35 

 

Close to 53 

5 points   

Question 30 

1.Which of the following statements is true on the basis of the six-month data given in the following table?

Month123456

Actual Demand715675640587702760

Forecast700645660648655718

2.

 

The demand is being overestimated. 

 

The demand is being underestimated.