OTQM MC quizlet - Operations Management PDF

Preview

Summary

Operations Management...

Description

OTQM MC CHAPTER 1 Operations management involves continuous decision-making; hopefully most decisions made will be

Which one of the following would not generally be classified under the heading of transformation? staffing Manufacturing work sent to other countries is called

informed A 'product package' consists of:

outsourced

a combination of goods and services

Product design and process selection are examples of decisions that are

Business organizations consist of three major functions which, ideally:

system design

Support one another

The responsibilities of the operations manager are

Which of the following is not a type of operations?

planning, organizing, staffing, directing, and controlling

All Above involve operations (goodsstorage/transportation-entertainmentcommunication)

Knowledge skills usually don't include

Technology choices seldom affect

Which of the following is not true about systems approach?

communication skills

union activity Measurements taken at various points in the transformation process for control purposes are called feedback Budgeting, analysis of investment proposals, and provision of funds are activities associated with the _______ function. finance

A systems approach concentrates on efficiency within subsystems. What is credited with gains in industrial productivity, increased standards of living and affordable products? assembly lines

Production systems with customized outputs typically have relatively

skilled workers Which is not a significant difference between manufacturing and service operations? cost per unit Which of the following is not a characteristic of service operations easy measurement of productivity Which of the following is a recent trend in business? supply chain management Farming is an example of: non-manufactured goods Dealing with the fact that certain aspects of any management situation are more important than others is called: recognition of priorities The fact that a few improvements in a few key areas of operations will have more impact than many improvements in many other areas is consistent with the pareto phenomenon

The process of comparing outputs to previously established standards to determine if corrective action is needed is called

controlling

outsourcing; supply chain

Which of the following does not relate to system design? inventory management Taking a systems viewpoint with regard to operations in today's environment increasingly leads decision-makers to consider ______________ in response to the ____________

CHAPTER 2 A. strategic Which of the following is least likely to affect the cost an organization incurs in producing its products or services?

Scheduling personnel is an example of an operations management:

A. price

B. operational decision.

Where a firm locates would typically not affect that firm's:

Productivity is expressed as:

sustainability; threat of global warming

D. strategy.

Some companies attempt to maximize the revenue they receive from fixed operating capacity by influencing demands through price manipulation. This is an example of

Which of the following is not among the chief reasons organizations fail?

revenue management Which of the following is not an ongoing trend in manufacturing? mass production for greater economies of scale Which of the following is not a benefit of using models in decision making? All of the above are benefits.

Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____________ is leading to increased emphasis on ____________ management.

Product design and choice of location are examples of _______ decisions.

B. emphasizing labor productivity in labor-intensive environments The key to successfully competing is understanding what customers want and then __________ satisfy those wants. C. finding the best way to An organization's mission statement serves as the basis for: E. organizational goals. Which of the following would be least important in the pursuit of a time-based strategy? A. cost minimization Competitiveness doesn't include: A. productivity.

D. output divided by input. In the 1970s and early 1980s in the United States, organizations concentrated on: C. marketing and financial strategies. Which of the following is not a factor that affects productivity? E. product price Which of these factors would be least likely to affect productivity? E. advertising

Which of the following is not a key step toward improving productivity? E. converting bond debt to stock ownership For an organization to grow its market share, it must: C. exceed minimum standards of acceptability for its products or services.

CHAPTER 3 Which of the following is a potential shortcoming of using sales force opinions in demand forecasting? D. Members of the sales force can have difficulty distinguishing between what customers would like to do and what they actually will do. Customers themselves may be unclear regarding what they'd like to do versus what they'll actually do. Suppose a four-period weighted average is being used to forecast demand. Weights for the periods are as follows: wt-4 = 0.1, wt-3 = 0.2, wt-2 = 0.3 and wt-1 = 0.4. Demand observed in the previous four periods was as follows: At-4 = 380, At-3 = 410, At-2 = 390, At-1 = 400. What will be the demand forecast for period t? B. 397

The forecast for will be (.2 2,200) + (.3 1,950) + (.5 * 2,050) = 2,050.

Minimizing the sum of the squared deviations around the line is called:

When choosing a forecasting technique, a critical trade-off that must be considered is that between:

D. least squares estimation.

E. cost and accuracy.

The two general approaches to forecasting are: B. qualitative and quantitative.

The more novel a new product or service design is, the more forecasters have to rely on:

Which of the following is not a type of judgmental forecasting?

A. subjective estimates.

E. time series analysis

Forecasts based on judgment and opinion do not include:

Accuracy in forecasting can be measured by:

C. second opinions.

A. MSE

Which of the following is/are a primary input into capacity, sales, and production planning?

Which of the following would be an advantage of using a sales force composite to develop a demand forecast?

E. demand forecasts

C. The sales staff is often aware of customers' future plans.

The forecast will be (.1 380) + (.2 410) + (.3 390) + (.4 400) = 397. Suppose a three-period weighted average is being used to forecast demand. Weights for the periods are as follows: wt-3 = 0.2, wt-2 = 0.3 and wt-1 = 0.5. Demand observed in the previous three periods was as follows: At-3 = 2,200, At-2 = 1,950, At-1 = 2,050. What will be the demand forecast for period t? D. 2050

Which of the following features would not generally be considered common to all forecasts?

Which phrase most closely describes the Delphi technique? C. series of questionnaires

C. Historical data is available on which to base the forecast.

The forecasting method which uses anonymous questionnaires to achieve a consensus forecast is:

Which of the following is not a step in the forecasting process?

C. the Delphi method.

B. Eliminate all assumptions.

One reason for using the Delphi method in forecasting is to:

A. avoid premature consensus (bandwagon effect).

Using the latest observation in a sequence of data to forecast the next period is:

Detecting nonrandomness in errors can be done using:

B. a naive forecast.

C. control charts.

For the data given below, what would the naive forecast be for period 5?

of 66 turned out to be four units less than actual demand. The next forecast is 66.6, implying a smoothing constant, alpha, equal to: C .15

Moving average forecasting techniques do the following:

Given an actual demand of 59, a previous forecast of 64, and an alpha of .3, what would the forecast for the next period be using simple exponential smoothing?

C. Smooth variations in the data.

D. 62.5

Trends move the time series in a longterm direction.

Which is not a characteristic of simple moving averages applied to time series data?

Given an actual demand of 105, a forecasted value of 97, and an alpha of .4, the simple exponential smoothing forecast for the next period would be:

The primary difference between seasonality and cycles is:

D. requires only last period's forecast and actual data

C. 100.2.

A. the duration of the repeating patterns.

In order to increase the responsiveness of a forecast made using the moving average technique, the number of data points in the average should be:

Which of the following possible values of alpha would cause exponential smoothing to respond the most quickly to forecast errors?

Averaging techniques are useful for:

A. decreased

E. .15

A forecast based on the previous forecast plus a percentage of the forecast error is:

A manager uses the following equation to predict monthly receipts: Yt = 40,000 + 150t. What is the forecast for July if t = 0 in April of this year?

Control charts graphically depict the statistical behavior of forecast errors. Gradual, long-term movement in time series data is called: D. trend

B. smoothing out fluctuations in time series. Putting forecast errors into perspective is best done using B. MAPE. MAPE depicts the forecast error relative to what was being forecast.

D. 61

D. an exponentially smoothed forecast. Which is not a characteristic of exponential smoothing?

A. 40,450

B. weights each historical value equally

In trend-adjusted exponential smoothing, the trend-adjusted forecast consists of:

Simple exponential smoothing is being used to forecast demand. The previous forecast

A. an exponentially smoothed forecast and a smoothed trend factor.

In the additive model for seasonality, seasonality is expressed as a ______________ adjustment to the average; in the multiplicative model, seasonality is expressed as a __________ adjustment to the average. A. quantity; percentage

Given forecast errors of 4, 8, and -3, what is the mean absolute deviation?

B. continuity of some underlying causal system.

C. 5

A managerial approach toward forecasting which seeks to actively influence demand is:

Given forecast errors of 5, 0, -4, and 3, what is the mean absolute deviation? B. 3

Which technique is used in computing seasonal relatives?

Given forecast errors of 5, 0, -4, and 3, what is the bias?

D. centered moving average

B. 4

A persistent tendency for forecasts to be greater than or less than the actual values is called:

Which of the following is used for constructing a control chart?

A. bias. The primary method for associative forecasting is: B. regression analysis.

Which term most closely relates to associative forecasting techniques? E. predictor variables Which of the following corresponds to the predictor variable in simple linear regression? C. independent variable The mean absolute deviation is used to: C. measure forecast accuracy.

B. mean squared error

B. proactive. Customer service levels can be improved by better: C. short-term forecast accuracy. Given the following historical data, what is the simple three-period moving average forecast for period 6? D. 68

The two most important factors in choosing a forecasting technique are: C. cost and accuracy.

The degree of management involvement in short-range forecasts is: B. low. Short-range forecasting tends to be fairly routine.

The president of State University wants to forecast student enrollments for this academic year based on the following historical data. What is the forecast for this year using the least squares trend line for these data?

Which of the following is not necessarily an element of a good forecast?

E. 22,800

D. low cost

An organization's supply chain is facilitated by:

Forecasting techniques generally assume:

CHAPTER 4

an information system Which of the following typically represents the beginning of a supply chain?

Base forecasts on demand coming from the immediate downstream customer

What is an extension of an intranet to include suppliers and customers called?

Which of the following is not one of the four major causes of the bullwhip effect?

extranet

External suppliers Supply chain management is the vital business function which does not coordinate and manage:

The business cycle Price fluctuations follow all but which of the following marketing promotions?

Net marketplaces are designed to: bring together significant number of purchasing firms Which of the following is open to the most users?

human resource interviews

Advertising

Typically a manufacturer will have more direct contact with which type of supplier?

When do rationing and shortage gaming occur?

Tier one supplier

Demand exceeds supply

Consider a packaged milk products supply chain. A lumber company provides wood to a paper mill, who supplies cardboard to a container manufacturer, who supplies containers to the milk products manufacturer. The lumber company is:

Collection of point-of-sale (POS) information is most useful for which bullwhip effect remedy?

a tier three supplier Which of the following is not a typical result of the bullwhip effect?

The time between order placement and the receipt of goods is called ___________________.

Absenteeism

lead time

Which term refers to inaccurate or distorted demand information created in the supply chain?

Service organization supply chains are:

green supply chain management requirement

similar to manufacturing organizations

Purchasing is typically responsible for:

Bullwhip effect

What is a network internal to an organization called?

monitoring supplier performance

Which of the following is not a remedy for the bullwhip effect?

intranet

Information sharing

the Internet Online retailing, or B2C, has shifted: the power from the suppliers to the consumers Due to globalization, which of the following are not some commonly shared ocean shipping logistical characteristics? crossdocking is required

A recent change in supply chain management has been the:

Which activity appears to be most frequently outsourced by large companies? Manufacturing

What refers to owning or controlling sources of raw materials and components? Backward integration What term refers to processes or activities that are completed in-house? Insource What term refers to processes or activities that are completed by suppliers? Outsource A higher level of vertical integration implies: less outsourcing and more insourcing The quantity that equates the cost of making a product to the cost of buying the product is generally called what? Indifference point

According to the financial calculations of the make-or-buy decision, if we need fewer units than the indifference point, then which option should we definitely choose? The option with the higher variable costs To perform the financial calculations of the make-or-buy decision, which costs are needed? Fixed and variable Which of the following is not a positive attribute of Multiple Suppliers?

probability of assured supply is better In general, what comprises the bulk of the cost of goods sold?

a commitment to helping each other succeed According to the textbook, the two kinds of partnerships are basic and what?

Materials A constant concern within purchasing departments is the issue of ethics in managing _______________.

Expanded What does the textbook define as the three most critical factors in successful partnering?

suppliers What are the Institute for Supply Management's principles of ethical supply chain management conduct? loyalty to your organization, justice to those with whom you deal, and faith in your profession

According to several studies, what are the three most important criteria for selecting suppliers?

Impact, intimacy, vision What term refers to attaining levels of productivity and competitiveness that are not possible through normal supplier relationships? Impact

What term refers to the working relationship between partners? Intimacy

Price, quality, on-time delivery What is the common term for a process of developing a long-term relationship with a supplier based on mutual trust, shared vision, shared information, and shared risks? Partnering Going beyond a basic partnership, an expanded partnership between a firm and its supplier implies:

What term refers to the mission or objectives of a partnership? Vision What do studies suggest are the three sources of impact? Reduce waste, leverage core competence, and create new opportunities

Leveraging core competence is about sharing:

Which type of technology provides "point-ofsale information?"

knowledge

Barcode scanners

Which of the following is not considered to be a characteristic of partnership relations?

What does EDI stand for?

Are "arms-length" in nature

Electronic data interchange

What does ESI stand for?

Which of the following is not considered to be a benefit of EDI?

Early supplier involvement

Increased human interaction

Early supplier involvement refers to the involvement of critical suppliers for what?

Some warehouses provide product mixing. This is referred to as:

New product design

value-added service for customers

According to a 1996 study by the Council for Logistics Management of the third-party logistics industry, which companies are particularly likely to use third-party logistics services to handle most of their logistics needs?

What is the throughput of Fingerhut's warehouse in St. Cloud, MN?

Companies engaged in international business Which of the following is least likely to be a benefit of implementing barcode scanners at retail store checkout registers? More efficient packaging of customer orders The discussion in the textbook implies that information sharing has shifted power in the supply chain the most to which group? Individual consumers

What is the process whereby shipments are transferred directly from inbound trailers to outbound trailers? crossdocking Crossdocking ___________________________________ _________________. eliminates the storage and order picking functions of a distribution warehouse while still pe...