Exam 1 sample questions PDF

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1 1.) The total of all outputs produced by the transformation process divided by the total of the inputs is Answer: multifactor productivity 2.) which of the following appears to provide the best opportunity for increases in productivity? Answer: management 3.) Productivity increases when Answer: inputs decrease while outputs remain the same 4.) An operations task performed at Hard Rock Café is Answer: preparing employee schedules 5.) Which of the following is NOT one of the basic functions of the management process Answer: inspecting 6.) Among the ethical and social challenges facing operations managers are Answer: maintaining a sustainable environment 7.) The person who is most noted for his contributions to quality control in operations management was Answer: W. Edwards Deming 8.) which is NOT true regarding the differences between goods and services Answer: tangible good are generally produced and consumed simultaneously; services are not 9.) the service sector has lower productivity improvements than the manufacturing sector because Answer: the service sector is usually more labor intensive than the manufacturing sector 10.) which of the following is NOT a typical service attribute? Answer: easy to store 11.) the "father" of scientific management is Answer: Frederick W. Taylor 12.) which of the following is the best example of a pure service? Answer: counseling 13.) Which is NOT true regarding between goods and services? Answer: goods tend to have higher customer interaction than services 14.) productivity measurement is complicated by Answer: the lack of precise units of measure 15.) three critical productivity input variables are Answer: labor, capital, and management

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2 16.) the three major business functions necessary to all organizations are Answer: marketing, finance/accounting, and production/operations 17.) the capital investment each year in the US usually Answer: increases 18.) increases in productivity are difficult to achieve if Answer: the task is more personal 19.) the service sector makes up approximately what percentage of all jobs in the US? Answer: 85% 20.) the person who introduced standardized, interchangeable parts was Answer: Eli Whitney 21.) the creation of goods and services is referred to as Answer: production 22.) how does management describe the "strategy" of Hard Rock Cafe? Answer: experience strategy 23.) Which of the 10 OM decisions applied at HRC focuses on maximizing the customer experience and driving customers toward revenue-generating activities? Answer: layout design 24.) What percentage of HRC profit is derived from retail sales? Answer: 50% 25.) Each HRC goes through a complete change of ___________ every 5-7 weeks Answer: memorabilia 26.) How many days of storage are involved for Frito Lay potato chips? Answer: 2.5 27.) for each 1% of downtime due to a breakdown in equipment, how much loss is incurred as Frito Lay's Orlando plant? Answer: $200,000 28.) How often is the annual inventory turnover for items like potatoes, corn, oil, and seed, which are perishable? Answer: 200 times 29.) the Frito-Lay plant applies a product focus strategy, which is appropriate for what type of producer? Answer: high-volume, low-variety 30.) what drives plant location decisions at Frito-Lay? Answer: proximity to raw materials or markets

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31.) which of the following activities at an airline is NOT an operations activity? Answer: sales 32.) a global network of organizations and activities that supply a firm with goods and services is referred to as Answer: a supply chain 33.) competition in the 21st century is no longer between companies; it is between Answer: supply chains 34.) which of the following OM decisions determines how a good or service is produced and commits management to specific technology, quality, Human Resources, and capital investment? Answer: process and capacity design 35.) The economic activities that typically produce an intangible product are referred to as Answer: services 36.) productivity increases when Answer: inputs decrease while outputs remain the same 37.) the stated purpose of NAFTA is to Answer: phase out all trade and tariff barriers among Canada, Mexico, and the US 38.) what is the worth of HRC memorabilia? Answer: over $40 million 39.) what percentage of the HRC patrons are tourists? Answer: 70% 40.) How does HRC use experience differentiation? Answer: with memorabilia, unique and interesting views, and rock music 41.) which of the following is NOT one of the 10 strategic OM decisions listed in the text? Answer: finance/ accounting 42.) Which is NOT an advantage of outsourcing? Answer: potential creation of future competition 43.) What is NOT included in the procedure of processing the finest fish available at Darden restaurants? Answer: completely rely on the suppliers to handle shipment to Darden under their auspices 44.) How many pounds of shrimp are consumed annually at Darden restaurants? Answer: 40 million 45.) Darden's has a complex supply chain that extends to ___________ countries

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4 Answer: 40 46.) Dardens approach to its International seafood purchases is: Answer: pursue long term partnering relationships with suppliers 47.) The primary purpose of the mean absolute deviation (MAD) in forecasting is to Answer: measure forecast accuracy 48.) a regression model is used to forecast sales based on advertising dollars spent. The regression line is y=500+35x and the coefficient of determination is .90. Which is the best statement about this model? Answer: the correlation between sales and advertising is positive 49.) the last four weekly values of sales were 80, 100, 105, and 90 units. The last four forecasts were 60,80,95, and 75 units. These forecasts illustrate Answer: bias 50.) which time-series model assumes that demand in the next period will be equal to the most recent period's demand? Answer: naive approach 51.) time-series patterns that repeat themselves after a period of days or weeks are called Answer: seasonality 52.) a forecast that projects a company's sales is a Answer: demand forecast 53.) the tracking signal is the Answer: ratio of cumulative error/MAD 54.) Quantitative method of forecasting include Answer: exponential smoothing 55.) Forecasts are usually classified into three categories including: Answer: short-range, medium-range, and long-range 56.) the degree of strength of a relationship between two variables is shown by the Answer: correlation coefficient 57.) for a given product demand, the time-series trend equation is 53-4X. the negative on the slope of the equation Answer: is an indication that product demand is declining 58.) which of the following statements about time-series forecasting is true? Answer: it is based on the assumption that the analysis of past demand helps predict the future 59.) which of the following uses three types of participants: decision makers, staff personnel, and respondents? Answer: the Delphi method

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5 60.) forecasts used for new product planning, capital expenditures, facility location or expansion, and R&D typically utilize a Answer: long-range time horizon 61.) the forecasting time horizon that would typically be easiest to predict would be the Answer: short range 62.) a forecast that projects a company's sales is Answer: a demand forecast 63.) T/F: when excess capacity exists, cost can decrease Answer: False 64.) which of the following is the FIRST step in a forecasting system Answer: determine the use of the forecast 65.) which of the following is a quantitative forecasting method? Answer: exponential smoothing 66.) which forecasting model is based upon salespersons' estimates of expected sales? Answer: sales force composite 67.) which forecasting method considers several variable that are related to the variable being predicted? Answer: multiple regression 68.) Anthony Perez has identified three independent variables for the Magic's dynamic pricing model. Those are Answer: time of the year, day of the week, and opponent rating 69.) after substantial analysis, the Orlando Magic has been able to develop a regression model that yields a coefficient of determination of Answer: .85 70.) the dependent variable in the Magic's dynamic pricing model is Answer: revenue 71.) Anthony Perez's primary statistical tool for revenue management at the Orlando magic is Answer: multiple regression 72.) a tracking signal is Answer: a measurement of how well a forecast is predicting actual sales 73.) T/F: detailed forecasts of demand are not needed Answer: False 74.) what mathematical technique is used when planning menu changes at HRC

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6 Answer: multiple-regression analysis 75.) what is considered the primary factor to forecast at HRC? Answer: people who walk through the door 76.) what program is used to determine employee's bonuses at HRC? Answer: weighted moving averages 77.) how many owned cafes are reviewed every month at HRC? Answer: 55 78.) in which stage of the product life cycle should product strategy focus on process modifications as the product is being "fine-tuned" for the market? Answer: introduction 79.) In the service industry, the crucial moment that exemplifies, enhances, or detracts from the customer's expectations is called Answer: the moment of truth 80.) bridget's hamburger stand uses only 7 ingredients but offers 15 different burgers. this process is known as Answer: modular design 81.) value analysis takes place Answer: during the production process when it is clear that the new product is a success 82.) what information is contained in the roof of the House of Quality Answer: relationship between a line of products and customer wants 83.) which of the following is characteristic of the maturity phase? Answer: competitors are well established 84.) an umbrella of software programs that may include CAD/CAM, DFMA, product routing, maintenance, and other product concerns is called Answer: product lifecycle management software 85.) which of the following is an external product development strategy Answer: joint venture 86.) For a full-time college student, which of the following moments of truth exemplifies the customer's standard expectations? Answer: your advisor was competent, helpful, and understanding 87.) product design may be accomplished more quickly through the use of cross-functional teams that work on various aspects of the design at the same time. this approach is known as Answer: concurrent gathering 88.) when should a product strategy focus on forecasting capacity requirements

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7 Answer: At the growth stage of the product life cycle 89.) self checkout at the grocery store is an example of Answer: customer participation in service delivery 90.) when a customer places a request for a product or service with a producer, Answer: a work order is created 91.) the change in cell phone model life cycles from 2 years to under 6 months is a result of Answer: time-based competition 92.) which of the following shows in thematic form how a product is assembled Answer: an assembly chart 93.) the role of decision trees in product design is Answer: to calculate the expected value of each course of action 94.) _________________ is used to rank a company's products to determine which products represent the best use of the firm's resources, or perhaps, determine which products are to be eliminated. Answer: product-by-value analysis 95.) which of the following product development strategies has the highest risk Answer: new internally developed products 96.) one result of concurrent engineering in product design is Answer: speedier product development 97.) which of the following is true regarding computer-aided design? Answer: it is the use of computers to design products and prepare engineering documentation 98.) which of the following is true regarding value engineering? Answer: it is oriented toward improvement of design 99.) a route sheet provides Answer: a sequence of operations necessary to produce the component 100.) which of the following is NOT a service design technique used to reduce cost? Answer: increasing customer interaction 101.) one method used to determine a product's total environmental impact from conversion of inputs through production and to disposal is Answer: life cycle assessment 102.) the dimensions, tolerances, materials, and finishes of a component are typically shown on Answer: an engineering drawing...