1. Reasons to study Operations Management include learning about _______________.

a. a costly part of the enterprise

b. what operations managers do

c. how goods and services are produced

d. how people organize themselves for productive enterprise

e. All of the above.

2. An operations manager is not likely to be involved in ______________.

a. the quality of goods and services to satisfy customers' wants and needs

b. the design of goods and services to satisfy customers' wants and needs

c. the identification of customers' wants and needs

d. maintenance schedules

e. work scheduling to meet the due dates promised to customers

3. Which of the following are part of the Ten Critical Decisions of Operations Management?

I. design of goods and services

II. managing quality

III. layout strategy

IV. marketing

V. pricing of goods and services

a. I,II,IV

b. I,II,V

c. II,III,V

d. I,II,III

e. All of the above.

4. Henry Ford is noted for his contributions to _______________.

a. time and motion studies

b. material requirements planning

c. assembly line operations

d. statistical quality control

e. scientific management

5. Which of the following is the best example of a pure service?

a. electric co-op

b. counseling

c. oil change

d. heart transplant

e. All of the above.

6. Which is not true regarding differences between goods and services?

a. Goods tend to have higher customer interaction than services.

b. Services tend to be more knowledge-based than goods.

c. Services are generally produced and consumed simultaneously; tangible goods are not.

d. Services tend to have a more inconsistent product definition than goods.

e. None of the above are true.

7. Current trends in operations management include all of the following EXCEPT ______________.

a. empowered employees

b. mass customization

c. rapid product development

d. just-in-time performance

e. All of the above are current trends.

8. The Dulac Box plant works two 8-hour shifts each day. In the past, 500 cypress packing boxes were produced by the end of each day. The use of new technology has enabled them to increase productivity by 30%. Productivity is now approximately ______________.

a. 32.5 boxes/hr

b. 40.6 boxes/hr

c. 62.5 boxes/hr

d. 81.25 boxes/hr

e. 300 boxes/hr

9. Which of the following are among the ethical and social challenges facing operations managers?

a. developing low-cost products

b. providing an efficient workplace

c. maintaining a sustainable environment

d. honoring financial commitments

e. All of the above.

10. Cost cutting in international operations can take place because of ________________.

a. lower indirect costs

b. lower wage scales

c. less stringent regulations

d. lower taxes and tariffs

e. All of the above.

11. The ability of an organization to produce goods or services that have some uniqueness in their characteristics is _______________.

a. time-based competition

b. mass production

c. competing on productivity

d. competing on differentiation

e. competing on flexibility

12. Franz Colruyt has achieved low-cost leadership through ________________.

a. effective use of voice mail

b. exclusive use of the Euro

c. plastic, not paper, shopping bags

d. background music that subtly encourages shoppers to buy more

e. converting factories, garages and theaters into retail outlets

13. A firm producing a good is more likely to have which set of the following characteristics compared to a firm providing a service?

a. many objective quality standards, tangible products and locate near customers

b. many subjective quality standards, tangible products and locate away from customers

c. many objective quality standards, intangible products and locate away from customers

d. many subjective quality standards, intangible products and locate away from customers

e. many objective quality standards, tangible products and locate away from customers

14. Which of these companies is most apt to have quality standards that are relatively subjective?

a. Harvard University

b. Chrysler

c. Whirlpool

d. Dell Computer

e. Sanyo Electronics

15. Which of these organizations is likely to have the most important inventory decisions?

a. a lobbying agency

b. a management consulting firm

c. a law firm

d. a marketing research firm

e. an aluminum manufacturer

16. Value-chain analysis is used to identify activities that represent, or can develop into, the core competencies of a business. Who introduced this concept?

a. Smith

b. Toyota

c. Ford

d. Porter

e. None of the above.

17. Standardization is an appropriate strategy in which stage of the product life cycle?

a. retirement

b. introduction

c. maturity

d. decline

e. growth

18. Caterpillar and Texas Instruments are two firms that have benefited from the use of _________________.

a. the transnational strategy option

b. the global strategy option

c. the maquiladora system in Europe

d. the multinational corporation strategy

e. the multidomestic strategy option

19. A project organization ________________.

a. is effective for companies with multiple large projects

b. is appropriate only in construction firms

c. often fails when the project cuts across organizational lines

d. is formed to ensure that programs (projects) get proper management and attention

e. a and d are both true

20. A simple CPM network has five activities-A, B, C, D and E. A is an immediate predecessor of C and of D. B is also an immediate predecessor of C and of D. C and D are both immediate predecessors of E. Which of the following is true?

a. There are twenty-five paths through this network.

b. There are two paths in this network.

c. There are five paths in this network.

d. There are four paths in this network.

e. None of these statements is true.

21. An activity on a PERT network has these time estimates: optimistic = 1, most likely = 2 and pessimistic = 5. Its expected time is _______________.

a. 2.00

b. 2.33

c. 2.67

d. 8.00

e. None of the above.

22. The two general approaches to forecasting are _______________ and _______________.

a. mathematical; statistical

b. judgmental; associative

c. judgmental; qualitative

d. qualitative; quantitative

e. historical; associative

23. The forecasting model that pools the opinions of a group of experts or managers is known as the _______________ model.

a. multiple regression

b. consumer market survey

c. jury of executive opinion

d. management coefficients

e. expert judgment

24. Which of the following is not a type of qualitative forecasting?

a. sales force composites

b. moving average

c. consumer surveys

d. the Delphi method

e. executive opinions

25. A time series trend equation is 25.3 + 2.1 X. What is your forecast for period 7?

a. 23.2

b. 25.3

c. 27.4

d. 40.0

e. cannot be determined