1.

Revolutionary changes in operations are advocated by

proponents of which of the following?
Business process reenigeering
2. When a company seeks to match the benefits of a
successful position while maintaining its existing position
in offering customers a variety of differing services, what is
this process called?
Straddling
3. An activity-based map is which of the following?
A network that shows how a company's strategy is delivered to customers
4. In the operations strategy framework proposed in the
textbook, which of the following is a support platform?
Information management
5. Capabilities of a service organization that are derived from
activities that transform material or information and tend to
provide low cost and high quality advantages are classified
as which of the following
Process-based capabilities
6. A reason for studying operations management (OM) is
which of the following?
Concepts and tools of OM are useful in other functions of business
7. Operations Management does not involve which of the
following?
Portfolio management
8. In the production system of a hospital, a patient is
considered a primary input. A primary transformation
function of the same system is which of the following?
Health care
9. In viewing a department store as a production system a
department is considered a primary input into that system.
A primary transformation function of the same system is
which of the following?
Filling orders
10. Operations management decisions can be classified
into which of the following broad areas?
Operational planning and control decisions
11. Capabilities of a service organization that are derived
from the ability to master new technologies design and
introduce new products, and bring new plants on line
significantly faster than one's competitors are classified as
which of the following?
Organization-based capabilities
12. Which of the following is a partial measure of
productivity?
Output/ Materials
13. Which of the following is a total measure of
productivity?
Output/ Inputs
14. If all you knew about a production system was that
total daily output was 400 units and the total labor
necessary to produce the 400 units was 350 hours, and the
total materials used were 425 units, what kind of
productivity measure could you use to compute
productivity?
Partial measure and Multifactor measure
15. Larry's Auto Body Repair Shop had revenues that
averaged $60,000 per week in April and $50,000 per week
in May. During both months, the shop employed six full-
time (40 hours/week) workers. In April the firm also had
four part time workers working 25 hours per week but in
May there were only 2 part time workers and they only
worked 10 hours per week. What is the percentage change
labor productivity from April to May for Larry's Auto Body
Repair?
8.97
16. The effect of the lack of synchronization among
supply-chain members is referred to as which of the
following?
Bullwhip effect
17. Which of the following is organizationally driven
reason for outsourcing?
Enhance effectiveness by focusing on what you do best
18. Which of the following is an improvement-driven
reason for outsourcing
Improve operating performance
19. When considering outsourcing, what should firms be
sure to avoid?
Giving the outsourcing partner the opportunity to become a strong competitor
20. Which of the following terms best describes the ability
of a company to deliver highly customized products and
services to different customers around the world?
Mass customization
21. Which of the following of Fisher's product categories
includes fashionable clothing, personal computers and
other products that typically have a very brief life cycle?
Innovative products
22. When implementing a JIT production system a
stabilized schedule is achieved using which of the
following?
Level scheduling
23. To implement a kanban pull system the firm would do
which of the following?
Reduce lot sizes
24. In trying to implement a JIT production system you
should work with vendors to do which of the following?
Reduce lead times
25. To implement a flow process in developing a JIT
system a firm might do which of the following?
Reduce setup/changeover time
26. To implement a flow process in developing a JIT
system a firm might do which of the following?
Balance workstation capacities
27. In an overview of the major operations planning
activities in a typical organization, which of the following
activities precedes aggregate sales and operations planning?
Process planning
28. Which of the following are related to JIT?
A philosophy of waste elimination
29. In the textbook Toyota's Fujio Cho expanded the
definition of JIT by identifying which of the following
types of waste to be eliminated?
Overproduction
30. In the textbook Toyota Fujion Cho expanded the
definition of JIT identifying whcih of the following types
of waste to be eliminated?
Product defects
31. In the textbook Toyota's Fujio Cho expanded the
definition of JIT by identifying which of the following
types of waste to be eliminated?
Motion
32. Which of the following are key inventory reduction
targets under JIT?
Hidden inventory
33. Which of the following address elimination of waste
under JIT?
Quality at the source
34. One of the characteristics that distinguish a
manufactured product from a service product is which of
the following?
A manufactured product is a tangible, physical item
35. Which of the following product attributes is a value
added service?
Field support
36. Which of the following is a core service attribute?
Price
37. Which of the following gurus are credited with
helping to develop total quality management (TQM)?
J.M. Juran
38. Which of the following individuals are credited with
helping to transplant Japanese methods of total quality
management to the United States?
Deming
39. A total systems approach to managing the flow of
information, materials and services from raw material
suppliers to end customer is called what?
Supply chain management
40. What percentage change in SunPath's total
productivity measure between 2002 & 2003?
10.39
41. The inventory turnover ratio used in measuring
supply-chain efficiency is found by the ratio of which of
the following?
Cost of goods sold/Aveerage aggregate inventory value
42. The total value of all items held in inventory for the
firm at costs is which of the following?
Average aggregate inventory value
43. If the average aggregate inventory value is $1,200,000
and the cost of goods sold is $600,000, which of the
following is weeks of supply?
104
44. IF the average aggregate inventory value is
$1,200,000 and the cost of goods sold is $600,000, which
of the following is inventory turnover?
0.5
45. In an overview of the major operations planning
activities in a typical organization, which of the following
activities immediately follows aggregate sales and
operations planning in a manufacturing operations?
Master scheduling
46. Which of the following methodologies is used to
verify that production and warehouse facilities, equipment,
and labor are available when needed?
Rough-cut capacity planning
47. Which of the following methodologies takes the end
product requirements from the master production schedule
and breaks them down into their component parts and
subassemblies to create a materials plan?
Materials requirement planning
48. The main purpose of aggregate operations planning is
to specify the optimal combination of which of the
following?
PRoduction rates, workforce levels and inventory on hand
49. In conducting aggregate operations planning there are
a number of required inputs. Which of the following are
considered inputs internal to the firm
Current physical capacity and current workforce
50. Which of the following is considered a "pure"
production planning strategy
Stable workforce, variable work hours
51. Matching the production rate to the order rate by
hiring and laying off employees as the order rate varies is
which of the following pure production planning strategies?
Chase
52. Maintaining a stable workforce working at a constant
output rate while shortages and surpluses are absorbed by
fluctuation inventory levels, order backlogs and allowing
lost sales is which of the following production planning
strategies?
Level
53. Using the cut-and-try method for aggregate operations
planning we can determine the production requirement in
units of product. If the beginning inventory is 500 units, the
demand forecast is 1,000, and the necessary safety stock is
10% of the demand forecast, which of the following is the
production requirement?
600
54. From an operational perspective yield management is
most effective under which of the following circumstances?
Inventory is perishable
55. Which of the following is not a common application
of linear programming in operations management?
Waiting time analysis
56. Which of the following is a common application of
linear programming in operations management?
Plant location studies
57. There are other related mathematical programming
techniques that can be used instead of linear programming
if the problem has a unique characteristic. If the problem
prevents divisibility of products or resources we should use
which of the following methodologies?
Integar programming
58. A company wants to determine how many units of
each of 2 products, A and B, they should produce. The
profit on product A is $50 and the profit on product B is
$45. Applying linear programming to this problem, which
of the following is the objective function if the firm wants
to make a much money as possible?
Maximize Z= 50A +45B
59. An agribusiness company mixes and sells chicken
feed to farmers. The costs of the chicken feed ingredients
vary throughout the chicken feeding season but the selling
price of chicken feed is independent of ingredients. On
August 1, management needs to know how many units of
each of three grains (Q, R, and S) should be included in
their chicken feed in order to produce the product most
economically. The cost of each grain is, for unit of Q, $30;
for a unit of R, $37; and for a unit of S, $78. Applying
linear programming to this problem, which of the following
is the objective function?
Minimize Z= 30Q+37R+78S
60. Apply linear programming to this problem. David and
Harry operate a discount jewelry store. They want to
determine the best mix of customers to serve each day.
There are 2 types of customers for their store, retail (R) and
wholesale (W). The cost to serve a retail customer is $70
and the cost to serve a wholesale customer is $89. The
average profit from either kind of customer is the same. To
meet headquarters' expectations, they must serve at least 8
retail customers and 12 wholesale customers daily. In
addition, in order to cover their salaries, they must at least
serve 30 customers each day. Which of the following is one
of the constraints for this model?
1R+1W=>30
61. Which of the following are elements that address
elimination of waste under JIT?
Kanban production control system
62. Group technology (GT) is credited with which of the
following benefits?
Reducing waiting time between process operations
63. You have been called in as a consultant to set up a
kanban control system. The first thing to do is to determine
the number of kanban card sets needed. Your research
shows that the expected demand during lead time for a
particular component is 150 per housr. You estimate the
safety stock should be set at 25% of the demand during
lead time. The tote trays used as containers can hold 8 units
of stock and the lead time it takes to replenish an order is 2
hours. Which of the following is the number of kanban card
sets necessary to support this situation?
47
64. In a quality circle one would expect to find which of
the following?
Employees meeting weekly to discuss their jobs and problems
65. In designing a JIT plant layout a designer should do
which of the following?
Design for work flow balance