Operations & Supply Chain Management (205)
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- 1.
The florist checked over the arrangement just prior to loading the vase in the delivery van. It was fortunate, because he noticed that lilacs had been included in the arrangement. The customer specifically requested "no lilacs" so the florist was able to remove them and make the order right before it left the office for the customer. This scenario is an example of:
- A.
an internal failure cost.
- B.
an external failure cost
- C.
a prevention cost.
- D.
a reliability cost.
Correct Answer
A. an internal failure cost.Explanation
This scenario is an example of an internal failure cost because the florist noticed the mistake before the arrangement was delivered to the customer. By removing the lilacs and making the order right, the florist was able to prevent a potential customer complaint or dissatisfaction. This cost is internal to the business as it involves correcting a mistake before it reaches the customer.Rate this question:
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- 2.
Which of these statements about the operations function is best?
- A.
The quality and availability of inputs to the operations function do not matter if the operation is well-managed
- B.
A manufacturing company provides only tangible goods as outputs.
- C.
Operations is the most isolated of all business functions, rarely needing to interface with marketing, finance, or engineering.
- D.
Inputs to the operations function can come from many different places.
Correct Answer
D. Inputs to the operations function can come from many different places. -
- 3.
Which statement regarding typical supply chain flows is best?
- A.
The flow of goods is upstream and the flow of information is downstream.
- B.
The flow of goods and information goes both ways.
- C.
The flow of goods is downstream but information is held by all companies.
- D.
The flow of goods is downstream and the flow of information is upstream.
Correct Answer
B. The flow of goods and information goes both ways.Explanation
The statement "The flow of goods and information goes both ways" is the best explanation because it accurately describes the typical supply chain flows. In a supply chain, goods and information flow in both directions, from suppliers to manufacturers to distributors to retailers and ultimately to customers. This bidirectional flow allows for efficient coordination and communication throughout the supply chain, ensuring that goods are delivered to the right place at the right time and that information is shared among all companies involved in the process.Rate this question:
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- 4.
Which of these is NOT a flow that moves up and down the supply chain?
- A.
Procedural
- B.
Physical
- C.
Information
- D.
Monetary
Correct Answer
A. ProceduralExplanation
The flow of procedural activities does not involve the movement of goods or services up and down the supply chain. Procedural activities refer to the processes, rules, and guidelines that govern the operations and decision-making within the supply chain. These activities include planning, organizing, coordinating, and controlling the various functions and stakeholders involved in the supply chain. While the other options - physical, information, and monetary - all involve the movement of physical goods, data, and financial transactions up and down the supply chain.Rate this question:
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- 5.
No other company in the world is as proficient at "just-in-time" production as Toyota. This technique is a great competitive advantage for them and is clearly a(n):
- A.
core competency
- B.
order qualifier.
- C.
value index.
- D.
mission.
Correct Answer
A. core competencyExplanation
Toyota's proficiency in "just-in-time" production, which refers to the ability to produce and deliver products exactly when they are needed, sets them apart from other companies. This technique is a core competency for Toyota because it gives them a significant competitive advantage. It allows them to minimize waste, reduce inventory costs, and respond quickly to customer demand. By excelling in this area, Toyota is able to differentiate itself and maintain its position as a leader in the industry.Rate this question:
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- 6.
Equipment and people are highly specialized and arranged sequentially according to the steps required to make a product in a:
- A.
functional layout.
- B.
flexible manufacturing system
- C.
Fixed-position layout
- D.
product-based layout.
Correct Answer
D. product-based layout.Explanation
A product-based layout is a type of layout where equipment and people are arranged sequentially according to the steps required to make a specific product. This layout is commonly used in assembly line production, where each workstation is dedicated to a specific task in the production process. This type of layout allows for efficient and streamlined production, as it eliminates unnecessary movement and reduces the time required to produce a product.Rate this question:
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- 7.
The most highly customized products are:
- A.
Make-to-order
- B.
assemble-to-order.
- C.
engineer-to-order
- D.
make-to-stock.
Correct Answer
C. engineer-to-orderExplanation
Engineer-to-order refers to products that are designed and manufactured based on specific customer requirements. These products are highly customized and tailored to meet the unique needs of individual customers. Unlike make-to-order or assemble-to-order products, engineer-to-order products involve extensive engineering and design work to create a one-of-a-kind solution. This level of customization makes engineer-to-order products the most highly customized among the options provided.Rate this question:
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- 8.
As the degree of customer contact increases:
- A.
there is a greater emphasis placed on productivity and efficiency
- B.
service customization also increases.
- C.
layout and location become less important.
- D.
more of the service package is provided by front-room operations.
Correct Answer
D. more of the service package is provided by front-room operations.Explanation
As the degree of customer contact increases, more of the service package is provided by front-room operations. This means that the tasks and activities related to delivering the service are performed directly in front of the customer. This is because higher customer contact requires a more personalized and interactive service experience. By providing more of the service package in the front-room operations, the service provider can better meet the individual needs and preferences of customers. This also allows for greater customization and flexibility in delivering the service.Rate this question:
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- 9.
Which of these is NOT one of the seven core ideas of TQM?
- A.
Leadership involvement
- B.
Strategic quality plan
- C.
Value perspective
- D.
Supplier partnerships
Correct Answer
C. Value perspectiveExplanation
The value perspective is not one of the seven core ideas of TQM. TQM, or Total Quality Management, is a management approach that focuses on continuous improvement and customer satisfaction. The seven core ideas of TQM include leadership involvement, strategic quality plan, employee involvement, continuous improvement, customer focus, supplier partnerships, and process management. The value perspective is not mentioned as one of the core ideas, suggesting that it is not considered a fundamental aspect of TQM.Rate this question:
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- 10.
W. Edwards Deming is known in quality circles for his:
- A.
zero defects.
- B.
quality function deployment technique.
- C.
Six Sigma
- D.
fourteen points for management.
Correct Answer
D. fourteen points for management.Explanation
W. Edwards Deming is known for his fourteen points for management. These points are a set of principles that Deming believed were essential for improving the quality and productivity of organizations. They include concepts such as creating constancy of purpose, adopting a new philosophy, and ensuring continuous improvement. Deming's fourteen points have been widely influential in the field of quality management and have helped organizations to achieve higher levels of performance.Rate this question:
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- 11.
Which of these statements regarding control charts is best?
- A.
The upper and lower limits of a control chart should be identical to the upper and lower tolerance limits for the manufactured part
- B.
Control charts are used to distinguish whether the process is operating normally or requires attention.
- C.
Control charts, by themselves, will improve quality levels
- D.
Control charts should be used regardless of the state of control of the process.
Correct Answer
B. Control charts are used to distinguish whether the process is operating normally or requires attention.Explanation
Control charts are used to distinguish whether the process is operating normally or requires attention. This statement is the best because it accurately describes the purpose of control charts. Control charts are statistical tools that monitor the variation in a process over time. They help identify if the process is within control limits and operating normally or if there are any special causes of variation that require attention and corrective action. Control charts are not meant to improve quality levels on their own, and the upper and lower limits of a control chart do not necessarily have to be identical to the tolerance limits for the manufactured part.Rate this question:
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- 12.
The standard that extends the benefits of quality management to all parties that are interested in or affected by a business's operations is:
- A.
ISO 9004:2004
- B.
ISO 9004:2009
- C.
ISO 9001:2004
- D.
ISO 9001:2008
Correct Answer
B. ISO 9004:2009Explanation
ISO 9004:2009 is the correct answer because it is the standard that focuses on extending the benefits of quality management to all parties interested in or affected by a business's operations. This standard provides guidance on achieving sustained success and improving overall performance by considering the needs and expectations of customers, employees, shareholders, suppliers, and other stakeholders. It emphasizes the importance of a holistic approach to quality management and encourages organizations to go beyond the requirements of ISO 9001:2008 to achieve long-term success.Rate this question:
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- 13.
Which of these is an eternal truth about forecasting?
- A.
Given the choice between a direct calculation and a forecast, you should opt for a forecast
- B.
Forecasts for the near term tend to be more accurate
- C.
Forecasts are usually accurate
- D.
Forecasts for individual products tend to be more accurate than for groups of products.
Correct Answer
B. Forecasts for the near term tend to be more accurateExplanation
Forecasts for the near term tend to be more accurate because they are based on recent data and trends that are more likely to remain consistent in the short term. As time progresses, there are more variables and uncertainties that can impact the accuracy of a forecast. Therefore, relying on a forecast for the near term is generally a better choice compared to a direct calculation, which may not take into account the changing factors that can influence future outcomes.Rate this question:
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- 14.
Use the data to determine what a forecast for period #6 will be using the last period approach. Period# Sales147263328469571
- A.
47
- B.
56
- C.
71
- D.
06
Correct Answer
C. 71Explanation
Based on the given data, the last period approach for forecasting assumes that the sales in the next period will be the same as the sales in the most recent period. In this case, the most recent period is period #5, where the sales were 71. Therefore, the forecast for period #6 using the last period approach would be 71.Rate this question:
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- 15.
Calculate a moving average of three periods to forecast the demand for period 5. PeriodDemand1692893814915119
- A.
89.8
- B.
87
- C.
97
- D.
82.5
Correct Answer
B. 87Explanation
To calculate a moving average of three periods, we take the sum of the demand for the current period and the two preceding periods, and then divide it by three. In this case, the demand for period 5 is forecasted by taking the sum of the demand for periods 3, 4, and 5 (97 + 82.5 + 89.8), which equals 269.3. Dividing this sum by 3 gives us the moving average of 89.77, which is rounded to 87. Therefore, the forecasted demand for period 5 is 87.Rate this question:
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- 16.
A men's suit is composed of primary material, lining, thread, buttons, and a zipper. Which of these statements is best?
- A.
Thread is an independent demand item
- B.
Suit zippers are a dependent demand item.
- C.
Suits are dependent demand items
- D.
Suit buttons are independent demand items.
Correct Answer
B. Suit zippers are a dependent demand item.Explanation
The statement "Suit zippers are a dependent demand item" is the best answer because in the context of a men's suit, the zipper is not purchased or demanded independently. It is a component that is dependent on the demand for the suit itself. The demand for suits drives the demand for suit zippers, as they are necessary for the completion of the product.Rate this question:
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- 17.
The bullwhip effect says that:
- A.
the greater the effect of a disturbance downstream, the farther upstream the supply chain
- B.
the farther upstream the supply chain, the greater the impact of a small disturbance downstream
- C.
the farther downstream the supply chain, the greater the impact of a small disturbance upstream
- D.
the greater the effect of a disturbance upstream, the farther downstream the supply chain.
Correct Answer
B. the farther upstream the supply chain, the greater the impact of a small disturbance downstreamExplanation
The bullwhip effect refers to the phenomenon where small changes in consumer demand can create significant fluctuations in inventory levels and production throughout the supply chain. This is due to the amplification of demand variability as information is transmitted upstream. As a result, the farther upstream in the supply chain a small disturbance occurs, the greater the impact it will have on the entire chain. Therefore, the correct answer is "the farther upstream the supply chain, the greater the impact of a small disturbance downstream."Rate this question:
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- 18.
The just in time philosophy was developed at which automaker?
- A.
Nissan.
- B.
Toyota.
- C.
Datsun.
- D.
Honda
Correct Answer
B. Toyota.Explanation
The just in time philosophy was developed at Toyota. This philosophy focuses on reducing waste and improving efficiency by producing goods and delivering them to customers just in time to meet demand. Toyota implemented this philosophy in their production system, known as the Toyota Production System, which has been widely adopted by other companies around the world.Rate this question:
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- 19.
Use the product structure tree shown below to determine the best statement.
- A.
Item E is only a child
- B.
Item C is a child but not a parent
- C.
Only one item appears at more than one level.
- D.
Item F is both a parent and a child
Correct Answer
A. Item E is only a childExplanation
The given statement is the best because it correctly describes the product structure tree shown. According to the information provided, Item E is only a child, meaning it appears at a lower level in the hierarchy but does not have any children of its own. This aligns with the given options and is the most accurate statement based on the information provided.Rate this question:
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- 20.
A kanban system is also called:
- A.
Japanese MRP.
- B.
a pull system.
- C.
Toyota Ta-co-ma.
- D.
Lean logistics
Correct Answer
B. a pull system.Explanation
A kanban system is often referred to as a pull system because it operates based on the principle of only producing items or materials when they are needed. In a pull system, production is driven by actual customer demand rather than forecasts or predetermined schedules. This helps to minimize waste and inventory levels while improving overall efficiency and responsiveness. Therefore, the term "a pull system" accurately describes the nature and function of a kanban system.Rate this question:
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Current Version
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Mar 19, 2023Quiz Edited by
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Mar 10, 2016Quiz Created by
Cppanse1
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