Operations And Supply Chain Management Chapter.13 Exam Prep

Chapter 13- Operations and Supply Chain Management

True/False

1. Good quality of input is important for the quality of the finished product of the business

Response: See module 13.1

Level: Easy

Learning Objective: Describe the basics of managing operations

1. Inputs include only tangible resources needed to produce the good or service

Response: See module 13.1

Level: Easy

Learning Objective: Describe the basics of managing operations

1. A major goal of operations management of a firm must be to improve productivity

Response: See module 13.1.1

Level: Easy

Learning Objective: Describe the basics of managing operations

1. Productivity is a measure of how efficiently a company is using its inputs for the production of its output(s)

Response: See module 13.1.1

Level: Easy

Learning Objective: Describe the basics of managing operations

1. To improve productivity, the ratio of outputs to inputs should be large

Response: See module 13.1.1

Level: Easy

Learning Objective: Describe the basics of managing operations

1. Make-or-buy decisions are irrelevant for service businesses

Response: See module 13.1.1

Level: Easy

Learning Objective: Describe the basics of managing operations

1. Inventory carrying cost is typically 150 to 200 percent of the inventory value

Response: See module 13.2

Level: Easy

Learning Objective: Discuss the role of inventory management in business

1. Companies should strive to increase the inventory carrying cost

Response: See module 13.2

Level: Easy

Learning Objective: Discuss the role of inventory management in business

1. When deciding how much inventory to keep, some firms and managers sometimes rely on the practice of guesstimation

Response: See module 13.2

Level: Easy

Learning Objective: Discuss the role of inventory management in business

1. Just-in-time approach to inventory is used in automotive industries

Response: See module 13.2.1

Level: Easy

Learning Objective: Discuss the role of inventory management in business

1. Just-in-time approach to inventory is least vulnerable to disruptions

Response: See module 13.2.1

Level: Easy

Learning Objective: Discuss the role of inventory management in business

1. Just-in-time is a system that works while there is a scarcity of resource

Response: See module 13.2.1

Level: Easy

Learning Objective: Discuss the role of inventory management in business

1. The just-in-time and lean manufacturing are the identical concepts

Response: See module 13.2.1

Level: Easy

Learning Objective: Discuss the role of inventory management in business

1. The just-in-time is a customer-centric approach

Response: See module 13.2.1

Level: Easy

Learning Objective: Discuss the role of inventory management in business

1. Scheduling is difficult for the standard work

Response: See module 13.3

Level: Easy

Learning Objective: Explain the importance of scheduling

1. Scheduling helps with efficient allocation of firm resources

Response: See module 13.3

Level: Easy

Learning Objective: Explain the importance of scheduling

1. Companies can use either forward scheduling or backward scheduling but not both

Response: See module 13.3

Level: Easy

Learning Objective: Explain the importance of scheduling

1. Planning involves both forward looking and backward looking

Response: See module 13.3

Level: Medium

Learning Objective: Explain the importance of scheduling

1. Small businesses must focus only on the budget rather than the quality of the output

Response: See module 13.4

Level: Easy

Learning Objective: Enumerate the reasons quality control is important

1. Small businesses have fewer resources to ensure their products meet quality standards

Response: See module 13.4

Level: Easy

Learning Objective: Enumerate the reasons quality control is important

1. Total Quality management (TQM) is a process

Response: See module 13.4

Level: Easy

Learning Objective: Enumerate the reasons quality control is important

1. The six sigma approach was originally introduced at General Electric

Response: See module 13.4

Level: Easy

Learning Objective: Enumerate the reasons quality control is important

1. Quality circles help employees in solving quality and related problems in their area of responsibility

Response: See module 13.4

Level: Easy

Learning Objective: Enumerate the reasons quality control is important

1. A Quality control circle is an American invention

Response: See module 13.4

Level: Easy

Learning Objective: Enumerate the reasons quality control is important

1. A Quality control circle enriches the personality of employees and improves the work environment

Response: See module 13.4

Level: Medium

Learning Objective: Enumerate the reasons quality control is important

Multiple Choice Questions

1. _________is concerned with planning, organizing, and controlling the resour­ces and activities that transform necessary inputs into desired products and services
2. Supply chain management
3. Operations management
4. Small business management
5. Control management

Response: See section 13.1

Level: Easy

Learning Objective: Describe the basics of managing operations

1. The methods through which ________are converted into ______are called transformative processes
2. Outputs, inputs
3. One process, second process
4. Inputs, outputs
5. Planning, organizing

Response: See section 13.1

Level: Easy

Learning Objective: Describe the basics of managing operations

1. ________are the means to monitor operations and fix problems or deviations when they occur
2. Input
3. Feedback
4. Output
5. Control systems

Response: See section 13.1

Level: Easy

Learning Objective: Describe the basics of managing operations

1. Mathematically, productivity can be expressed as :
2. Productivity = Inputs / Outputs
3. Productivity = (Inputs + Outputs)/Feedback
4. Productivity = (Outputs + Inputs)- Feedback
5. Productivity = Outputs / Inputs

Response: See section 13.1.1

Level: Easy

Learning Objective: Describe the basics of managing operations

1. If the inputs for a toiled paper add up to $100 and the outputs are $750, then productivity is ____. If the company reduces its input by half, then productivity is _____
2. 2:15, 1:15
3. 15:2, 15:1
4. 7:2, 2:7
5. 10:1, 5:1

Response: See section 13.1.1

Level: Easy

Learning Objective: Describe the basics of managing operations

1. If the inputs for a product add up to $750 and the outputs are $1500, then productivity is ____. If the company doubles its output, then productivity is _____
2. 2:1, 1:2
3. 2:1, 1:2
4. 4:1, 1:4
5. 2:1, 4:1

Response: See section 13.1.1

Level: Easy

Learning Objective: Describe the basics of managing operations

1. Small businesses can improve productivity by :
2. Decreasing output and increasing input
3. Increasing output and decreasing input
4. Decreasing the quality of its outputs
5. Focusing on manager’s satisfaction

Response: See section 13.1.1

Level: Easy

Learning Objective: Describe the basics of managing operations

1. If the ordering cost is $1000, the buying cost is $ 1500, the cost of maintaining the inventory is $500, and the cost of lost sales due to stock-outs is $4000, the company must:
2. Increase the inventory carrying cost
3. Stock up more
4. Reduce inventory
5. Decrease the quality of inventory

Response: See section 13.2

Level: Medium

Learning Objective: Discuss the role of inventory management in business

1. When the cost of lost sales due to stock-outs is greater than the sum of ordering, buying, and maintaining the inventory, the company needs to :
2. Stock up more
3. Reduce inventory
4. Increase inventory carrying cost
5. Decrease the quality of inventory

Response: See section 13.2

Level: Medium

Learning Objective: Discuss the role of inventory management in business

1. Which of the following does NOT affect the decision to determine the right level of inventory:
2. The cost of lost sales when there is a stock-out
3. The time it takes to receive the goods from suppliers after they are ordered
4. Buyers’ status
5. Inventory carrying cost

Response: See section 13.2

Level: Easy

Learning Objective: Discuss the role of inventory management in business

1. In the Just-in time system, the firm attempts to keep inventory levels to the______ throughout the value chain from raw materials to finished goods
2. Maximum
3. Minimum
4. Zero
5. Negative

Response: See section 13.2.1

Level: Easy

Learning Objective: Discuss the role of inventory management in business

1. Which of the following is NOT true about the Just-in-time approach to inventory?
2. High dependence on suppliers
3. Focuses on keeping inventory level to the maximum
4. Lowers inventory carrying costs
5. Vulnerable to natural disaster

Response: See section 13.2.1

Level: Medium

Learning Objective: Discuss the role of inventory management in business

1. The lean manufacturing focus is on _____, while just-in-time focuses on _______
2. Inventory, customer
3. Customers, inventory
4. Reducing inventory costs, increasing inventory costs
5. Increasing inventory costs, reducing inventory costs

Response: See section 13.2.1

Level: Medium

Learning Objective: Discuss the role of inventory management in business

1. The Lean manufacturing focuses on :
2. Producing more output using less resource
3. Producing less output using more resource
4. High inventory costs
5. Low labor costs

Response: See section 13.2.1

Level: Easy

Learning Objective: Discuss the role of inventory management in business

1. Which of the following is an advantage of a forward scheduling?
2. Orders are fulfilled in the shortest possible time
3. Delays starting work orders
4. Inflexibility with workforce
5. All resources are used up sooner

Response: See section 13.3

Level: Easy

Learning Objective: Explain the importance of scheduling

1. Forward scheduling starts ___________, while backward scheduling starts__________
2. In linear fashion, in non-linear fashion
3. In non-linear fashion, in linear fashion
4. When the order comes in, when the order must be completed
5. When the order must be completed, when the order comes in

Response: See section 13.3

Level: Medium

Learning Objective: Explain the importance of scheduling

1. ________pertains to determining the path that must be followed from raw materials to a finished product
2. Dispatching
3. Routing
4. Scheduling
5. Operations

Response: See section 13.3

Level: Easy

Learning Objective: Explain the importance of scheduling

1. In the DMAIC approach, C stands for:
2. Consistency
3. Control
4. Customer
5. Congruence

Response: See module 13.4

Level: Easy

Learning Objective: Enumerate the reasons quality control is important

1. From a business perspective, quality does NOT involve:
2. Functionality
3. Imitation
4. Safety
5. Consistency

Response: See module 13.4

Level: Easy

Learning Objective: Enumerate the reasons quality control is important

1. _______refers to the idea that a product should meet or exceed its claims to customers and regulators
2. Consistency
3. Safety
4. Functionality
5. Control

Response: See module 13.4

Level: Easy

Learning Objective: Enumerate the reasons quality control is important

1. _________is about producing and delivering products with low variance
2. Consistency
3. Safety
4. Functionality
5. Control

Response: See module 13.4

Level: Easy

Learning Objective: Enumerate the reasons quality control is important

1. The six sigma focuses on improving the quality of products or services by:
2. Reducing defects
3. Minimizing variances throughout
4. Fixing inefficiency
5. All of the above

Response: See module 13.4

Level: Medium

Learning Objective: Enumerate the reasons quality control is important

1. What is true about the six sigma approach?
2. Reduces waste
3. Decreases the quality of products
4. Discourages employee participation
5. Increases customer dissatisfaction

Response: See module 13.4

Level: Easy

Learning Objective: Enumerate the reasons quality control is important

1. Which of the following is true of Quality circles?
2. Decreases employees motivation
3. High level of conflicts with employees
4. Builds good relationship with employees
5. Against top management strategy

Response: See module 13.4

Level: Easy

Learning Objective: Enumerate the reasons quality control is important

1. ______refers to a small group of volunteer employees who meet regularly to identify, analyze, and solve quality and related problems in their area of responsibility
2. Socialization
3. Consultants
4. Managers
5. Quality circle

Response: See module 13.4

Level: Medium

Learning Objective: Enumerate the reasons quality control is important