Operations Management Exam 2

A line process

A batch process

A project process

A continuous process

Make-to-stock, make-to-stock

Make-to-stock, make-to-order

Make-to-order, make-to-stock

Make-to-order, make-to-order

Forecasting customer orders

Planning capacity

Use of overtime

Delivery time

A and B

Line in city

Line in small town

Batch in city

Batch in small town

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

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

Batch production is synonymous to mass production systems.

All the above

A & B

Dell is a practitioner of the mass customization process.

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

Dell keeps very little inventory of finished goods.

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

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

High-volume, high-variety products

Low-volume, high-variety products

High-volume, low-variety products

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

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

Utilizes job shops to make each of its modules

Uses product focused manufacturing

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

Uses work cells to feed its assembly line

All of the above are true.

Increases pressure on supply chain performance

Helps eliminate the guesswork that comes with sales forecasting

Drives down inventories

Increases pressure on scheduling

All of the above

Automation

Standardization

Tight quality control

Removing some services

Customization

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

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

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

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

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

Yesterday’s forecasted attendance and yesterday’s actual attendance

Yesterday’s actual attendance and today’s forecasted attendance

Yesterday’s forecasted attendance and today’s forecasted attendance

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

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

Become more accurate with longer time horizons

Are rarely perfect

Are more accurate for individual items than for groups of items

All of the above

None of the above

Strategic, tactical, and operational

Economic, technological, and demand

Exponential smoothing, Delphi, and regression

Causal, time-series, and seasonal

Departmental, organizational, and territorial

Executive opinions

Sales force composites

Consumer surveys

The Delphi method

Moving average

Associative models

Exponential smoothing

Weighted moving average

Time series

All of the above

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

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

The analysis of past demand helps predict future demand.

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

All of the above are true.

Trend

Random variations

Seasonality

Cycles

They may exhibit all of the above.

38

42

43

44

47

2400

2511

2067

3767

1622

Is rather stable

Has been changing due to recent promotional efforts

Follows a downward trend

Follows a seasonal pattern that repeats itself twice a year

Follows an upward trend

Manager understanding

Accuracy

Stability

Responsiveness to changes

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

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

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

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

Exponential smoothing typically requires less record keeping of past data.

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

94.6

97.4

100.6

101.6

103.0

45.5

57.1

58.9

61.0

65.5

0.10

0.20

0.40

0.80

Estimate the trend line.

Eliminate forecast errors.

Measure forecast accuracy.

Seasonally adjust the forecast.

2

3

4

8

None of the above

Use an alpha (α) between 0 and 1.

Assign more weight to the more current data.

Give an equal weight to all data.

Include new data to the average without discarding old one.

38.17

38.50

42.67

45.33

None of the above

36.9

57.5

60.5

62.5

None of the above

40450

40600

42400

42250

None of the above

Regression analysis

Exponential Smoothing

Delphi technique

Least square method

Scatter diagram

Correlation of coefficient (r)

Least square method

Coefficient of determination ( r2 )

Y

X

α

β

$21,020

$22,100

$230

$230,000

None of the above

The company was opened by Jeff Bezos in 1995.

The company was founded as, and still is, a "virtual retailer" with no inventory.

The company is now a world-class leader in warehouse management and automation.

The company uses both United Parcel Service and the U.S. Postal Service as shippers.

Amazon obtains its competitive advantage through inventory management.

To decouple or separate parts of the production process

Decouple the firm from fluctuations in demand and provide a stock of goods that will provide a selection for customers

To take advantage of quantity discounts

To hedge against inflation

All of the above are functions of inventory.

To decouple or separate parts of the production process

To provide a stock of goods that will provide a selection for customers

To take advantage of quantity discounts

To minimize holding costs

All of the above are functions of inventory.

raw material inventory

Work-in-process inventory

Maintenance/repair/operating supply inventory

Safety stock inventory

All of these are main types of inventory.

ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings. ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings.

In ABC analysis, "A" Items are tightly controlled, have accurate records, and receive regular review by major decision makers. In ABC analysis, "A" Items are tightly controlled, have accurate records, and receive regular review by major decision makers.

In ABC analysis, "C" Items have minimal records, periodic review, and simple controls. In ABC analysis, "C" Items have minimal records, periodic review, and simple controls.

ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.

All of the above statements are true.

Inventory may be categorized by measures other than dollar volume

It categorizes on-hand inventory into three groups based on annual dollar volume

It is an application of the Pareto principle

It states that all items require the same degree of control

It states that there are the critical few and the trivial many inventory items

Timing and cost of orders

Quantity and cost of orders

Timing and quantity of orders

Order quantity and service level

Ordering cost and carrying cost

Makes the annual physical inventory more acceptable to management

Does not require the detailed records necessary when annual physical inventory is used

Does not require highly trained people

Allows more rapid identification of errors and consequent remedial action than is possible with annual physical inventory

Does not need to be performed for less expensive items

16

70

110

183

600

Increase by about 41%

Increase by 100%

Increase by 200%

Increase, but more data is needed to say by how much

Either increase or decrease

24

100

141

490

600

Three times as large

One-third as large

Nine times as large

One-ninth as large

Cannot be determined

Unchanged

Increased by less than 50%

Increased by 50%

Increased by more than 50%

Cannot be determined

$1.50

$2.00

$3.00

$150.00