Operations Management Exam 2

68 Questions | Total Attempts: 280

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Operations Management Quizzes & Trivia

Questions and Answers
  • 1. 
    A large office which has a typing pool, a copying department and all the managers in a large suite of offices is an example of:
    • A. 

      A line process

    • B. 

      A batch process

    • C. 

      A project process

    • D. 

      A continuous process

  • 2. 
    A company makes necklaces with attached letters. Department A makes up the chains and letters. Department B assembles the necklaces when orders are received. Departments A and B are, respectively:
    • A. 

      Make-to-stock, make-to-stock

    • B. 

      Make-to-stock, make-to-order

    • C. 

      Make-to-order, make-to-stock

    • D. 

      Make-to-order, make-to-order

  • 3. 
    A company makes necklaces with attached letters. Department A makes up the chains and letters. Department B assembles the necklaces when orders are received. Department B would be primarily concerned with:
    • A. 

      Forecasting customer orders

    • B. 

      Planning capacity

    • C. 

      Use of overtime

    • D. 

      Delivery time

    • E. 

      A and B

  • 4. 
    An entrepreneur is planning to start a factory to produce specialized plastic containers. She has decided to choose either a line or batch process and has selected two possible sites, one in a small town and one in a big city. She has discovered the following facts:    Small Town City Capital Not readily available Readily available Labor Unskilled available All types of labor Market  Small Large Based on the information just presented, which of the following should be chosen?
    • A. 

      Line in city

    • B. 

      Line in small town

    • C. 

      Batch in city

    • D. 

      Batch in small town

  • 5. 
    Identify the correct statement from the given choices.
    • A. 

      A batch process is characterized by jumbled flow while the line process is characterized by a regular sequential flow

    • B. 

      The project form of operations is characterized by difficult planning and scheduling rules.

    • C. 

      Batch production is synonymous to mass production systems.

    • D. 

      All the above

    • E. 

      A & B

  • 6. 
    Which of the following statements regarding Dell Computer is false?
    • A. 

      Dell is a practitioner of the mass customization process.

    • B. 

      Dell builds its computers overseas in order to gain a low-cost advantage.

    • C. 

      Dell keeps very little inventory of finished goods.

    • D. 

      Dell utilizes a global supply chain, but assembles its computers in the U.S.

    • E. 

      Dell's research focuses on manufacturing issues, not computer part design.

  • 7. 
    A product-focused process is commonly used to produce
    • A. 

      High-volume, high-variety products

    • B. 

      Low-volume, high-variety products

    • C. 

      High-volume, low-variety products

    • D. 

      Low-variety products at either high- or low-volume

    • E. 

      High-volume products of either high- or low-variety

  • 8. 
    Harley Davidson
    • A. 

      Utilizes job shops to make each of its modules

    • B. 

      Uses product focused manufacturing

    • C. 

      Uses a large number of modules to build a small number of different bikes

    • D. 

      Uses work cells to feed its assembly line

    • E. 

      All of the above are true.

  • 9. 
    When done correctly, mass customization
    • A. 

      Increases pressure on supply chain performance

    • B. 

      Helps eliminate the guesswork that comes with sales forecasting

    • C. 

      Drives down inventories

    • D. 

      Increases pressure on scheduling

    • E. 

      All of the above

  • 10. 
    In mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except
    • A. 

      Automation

    • B. 

      Standardization

    • C. 

      Tight quality control

    • D. 

      Removing some services

    • E. 

      Customization

  • 11. 
    Which of the following statements regarding ethical and environmentally friendly processes is true?
    • A. 

      Operations managers can be environmentally sensitive, but they must avoid following a low cost strategy.

    • B. 

      Processes can be environmentally friendly or socially responsible, but not both.

    • C. 

      Operations managers can be environmentally sensitive and still follow a low cost strategy.

    • D. 

      Using energy-efficient lighting saves so little that it should not be labeled environmentally friendly.

    • E. 

      The only business strategy consistent with ethical and environmentally sensitive management is the differentiation strategy.

  • 12. 
    What two numbers are contained in the daily report to the CEO of Walt Disney Parks & Resorts regarding the six Orlando parks?
    • A. 

      Yesterday’s forecasted attendance and yesterday’s actual attendance

    • B. 

      Yesterday’s actual attendance and today’s forecasted attendance

    • C. 

      Yesterday’s forecasted attendance and today’s forecasted attendance

    • D. 

      Yesterday’s actual attendance and last year’s actual attendance

    • E. 

      Yesterday’s forecasted attendance and the year-to-date average daily forecast error

  • 13. 
    Forecasts
    • A. 

      Become more accurate with longer time horizons

    • B. 

      Are rarely perfect

    • C. 

      Are more accurate for individual items than for groups of items

    • D. 

      All of the above

    • E. 

      None of the above

  • 14. 
    The three major types of forecasts used by business organizations are
    • A. 

      Strategic, tactical, and operational

    • B. 

      Economic, technological, and demand

    • C. 

      Exponential smoothing, Delphi, and regression

    • D. 

      Causal, time-series, and seasonal

    • E. 

      Departmental, organizational, and territorial

  • 15. 
    Which of the following is not a type of qualitative forecasting?
    • A. 

      Executive opinions

    • B. 

      Sales force composites

    • C. 

      Consumer surveys

    • D. 

      The Delphi method

    • E. 

      Moving average

  • 16. 
    Which of the following techniques uses variables such as price and promotional expenditures, which are related to product demand, to predict demand?
    • A. 

      Associative models

    • B. 

      Exponential smoothing

    • C. 

      Weighted moving average

    • D. 

      Time series

    • E. 

      All of the above

  • 17. 
    Which of the following statements about time series forecasting is true?
    • A. 

      It is based on the assumption that future demand will be the same as past demand.

    • B. 

      It makes extensive use of the data collected in the qualitative approach.

    • C. 

      The analysis of past demand helps predict future demand.

    • D. 

      Because it accounts for trends, cycles, and seasonal patterns, it is more powerful than causal forecasting.

    • E. 

      All of the above are true.

  • 18. 
    Time series data may exhibit which of the following behaviors?
    • A. 

      Trend

    • B. 

      Random variations

    • C. 

      Seasonality

    • D. 

      Cycles

    • E. 

      They may exhibit all of the above.

  • 19. 
    What is the approximate forecast for May using a four-month moving average? Nov 39 Dec 36 Jan 40 Feb 42 Mar 48 Apr 46
    • A. 

      38

    • B. 

      42

    • C. 

      43

    • D. 

      44

    • E. 

      47

  • 20. 
    John’s House of Pancakes uses a weighted moving average method to forecast pancake sales. It assigns a weight of 5 to the previous month’s demand, 3 to demand two months ago, and 1 to demand three months ago. If sales amounted to 1000 pancakes in May, 2200 pancakes in June, and 3000 pancakes in July, what should be the forecast for August?
    • A. 

      2400

    • B. 

      2511

    • C. 

      2067

    • D. 

      3767

    • E. 

      1622

  • 21. 
    A six-month moving average forecast is better than a three-month moving average forecast if demand
    • A. 

      Is rather stable

    • B. 

      Has been changing due to recent promotional efforts

    • C. 

      Follows a downward trend

    • D. 

      Follows a seasonal pattern that repeats itself twice a year

    • E. 

      Follows an upward trend

  • 22. 
    Increasing the number of periods in a moving average will accomplish greater smoothing, but at the expense of
    • A. 

      Manager understanding

    • B. 

      Accuracy

    • C. 

      Stability

    • D. 

      Responsiveness to changes

    • E. 

      All of the above are diminished when the number of periods increases.

  • 23. 
    Which of the following statements comparing the weighted moving average technique and exponential smoothing is true?
    • A. 

      Exponential smoothing is more easily used in combination with the Delphi method.

    • B. 

      More emphasis can be placed on recent values using the moving average.

    • C. 

      Exponential smoothing is considerably more difficult to implement on a computer.

    • D. 

      Exponential smoothing typically requires less record keeping of past data.

    • E. 

      Exponential smoothing allows one to develop forecasts for multiple periods, whereas weighted moving averages does not.

  • 24. 
    Given an actual demand of 103, a previous forecast value of 99, and an alpha of .4, the exponential smoothing forecast for the next period would be
    • A. 

      94.6

    • B. 

      97.4

    • C. 

      100.6

    • D. 

      101.6

    • E. 

      103.0

  • 25. 
    Given an actual demand of 61, a previous forecast of 58, and an of .3, what would the forecast for the next period be using simple exponential smoothing?
    • A. 

      45.5

    • B. 

      57.1

    • C. 

      58.9

    • D. 

      61.0

    • E. 

      65.5

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