Operations Management Quiz Questions And Answers

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Operations Management Quiz Questions And Answers - Quiz

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Questions and Answers
  • 1. 
    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. 
    1. FedEx chose Memphis, Tennessee, as its U.S. hub because
    • A. 

      The city is in the center of the U.S., geographically

    • B. 

      The airport has relatively few hours of bad weather closures

    • C. 

      It needed a means to reach cities to which it did not have direct flights

    • D. 

      The firm believed that a hub system was superior to traditional city-to-city flight scheduling

    • E. 

      All of the above are true.

  • 13. 
    Which of the following statements regarding FedEx is true?
    • A. 

      . Its hub in Memphis, Tennessee, was selected because of its low cost.

    • B. 

      Memphis, Tennessee, is the only hub in the company's global flight network.

    • C. 

      FedEx believes the hub system helps reduce mishandling and delays due to better controls.

    • D. 

      FedEx uses a hub system in the U.S., but a city-to-city network in other countries

    • E. 

      Memphis is FedEx's only hub airport in the United States.

  • 14. 
    Which of the following is usually not one of the top considerations in choosing a country for a facility location?
    • A. 

      Availability of labor and labor productivity

    • B. 

      Exchange rates

    • C. 

      Attitude of governmental units

    • D. 

      Zoning regulations

    • E. 

      Location of markets

  • 15. 
    Which of these factors would be considered when making a location decision at the region/community level?
    • A. 

      Government rules, attitudes, stability, incentives

    • B. 

      Cultural and economic issues

    • C. 

      Zoning restrictions

    • D. 

      Environmental impact issues

    • E. 

      Proximity to raw materials and customers

  • 16. 
    A firm is seeking a new factory location, and is considering several countries worldwide. In some of these countries, child labor is prevalent; in others, working conditions and worker safety are inferior to conditions in the U.S. An operations manager paying attention to __________will factor these issues into the location decision. 
    • A. 

      Ethical and social responsibility issues

    • B. 

      Critical success factors

    • C. 

      Factor rating systems

    • D. 

      Geographic information systems

    • E. 

      Regression models

  • 17. 
    Which of the following statements regarding "proximity" in the location decision is false?
    • A. 

      Service organizations find that proximity to market is the most critical primary location factor.

    • B. 

      Manufacturers want to be near customers when their product is bulky, heavy, or fragile.

    • C. 

      Perishability of raw materials is a good reason for manufacturers to locate near the supplier, not the customer.

    • D. 

      . Reduction in bulk is a good reason for a manufacturer to locate near the supplier

    • E. 

      Clustering among fast food chains occurs because they need to be near their labor supply.

  • 18. 
    Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor?
    • A. 

      Soft drinks are bottled in many local plants, where carbonated water is added to proprietary syrups that may have been shipped long distances

    • B. 

      Few people will travel out-of state for a haircut.

    • C. 

      Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospita

    • D. 

      Furniture makers choose to locate near the source of good hardwoods, even though it means locating near other furniture manufacturers

    • E. 

      Metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's source

  • 19. 
    A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per year, and variable costs 0.30 per unit. At alternative B, fixed costs would be $3,600,000 per year, with variable costs of $0.35 per unit. If demand is expected to be 10 million units, which plant offers the lowest total cost?
    • A. 

      . Plant A, because it is cheaper than Plant B for all volumes under 10,000,000 units

    • B. 

      Plant B, because it is cheaper than Plant A for all volumes over 10,000,000 units

    • C. 

      Plant A, because it is cheaper than Plant B for all volumes

    • D. 

      Plant B, because it has the lower variable cost per unit

    • E. 

      Neither Plant A nor Plant B, because the crossover point is at 10 million units

  • 20. 
    Which of the following statements regarding Starbucks Coffee is false?
    • A. 

      The firm plans to open three new cafes per day around the world

    • B. 

      The firm uses GIS to evaluate most site decision

    • C. 

      The firm's cafes are exclusively in traditional settings: malls, tourist areas, and airports

    • D. 

      The firm places cafes into ever more innovative locations

    • E. 

      The firm put cafes in Japan, even though that country had no GIS data available

  • 21. 
    Which of the following is most likely to affect the location strategy of a manufacturing firm?
    • A. 

      Appearance/image of the area

    • B. 

      Utility costs

    • C. 

      Purchasing power of drawing area

    • D. 

      Competition in the area

    • E. 

      Parking availability

  • 22. 
    1.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

  • 23. 
    2. 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

  • 24. 
    3. 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

  • 25. 
    4. 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

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