SECTION A: MULTIPLE CHOICE
5. The Federal Reserve recently decided to lower the prime rate. This decision would probably affect your ______..
a. variable costs
b. opportunity costs
c. sunk costs
d. cost of capital
e. none of the above
6. Perceived customer value can be calculated by
a. the relationship of supply and demand
b. the relationship of total benefits and total costs
c. the relationship of management and employee
d. the relationship of discount and quantity
e. the relationship of inputs and outputs
7. The next competitive advantage will probably come from
a. environmentally friendly processes
b. environmentally friendly products
c. the use of information
d. a, c
e. a, b, c
8. The costs of maintaining your building regardless of activity are called
a. sunk costs
b. variable costs
c. avoidable costs
d. fixed costs
e. none of the above
9. Supply chain management involves
I. high quality materials
II. relationships between customers and vendors
III. activity based costing to reflect supplier discounts
a. I, III
b. I only
c. II, III
d. I, II, III
e. I, II
10. Which of the following reflect the beginning stage in the evolution of the supply management?
a. many suppliers
b. finished goods inventory
c. technical core
d. all of the above are included
e. none of the above are included
11. The use of consignment inventories allows the manufacturer to
a. prepay for inventory purchases
b. order inventory items in advance
c. pay for inventory usage as it occurs
d. use disintermediation to control inventory use
e. employ many suppliers to offset fluctuations in inventory levels
12. A customer of yours responds to the notification that a certain product will not be available in the quantities that had been previously supplied by ordering more than the customer originally forecast.. This scenario reflects the use of a _____ strategy.
a. rationing and shortage gaming
b. order batching
c. price fluctuations
d. forecast updating
e. all of the above
13. The purpose of an ERP system is to
I. integrate financial information
II. reduce inventory
III. separate customer information
a. I, II
b. III only
c. II only
d. I, II, III
e. I, III
14. The use of technology has helped with
a. asynchronous transactions
b. synchronous transactions
c. marketing transactions
d. costs transactions
e. none of the above
15. Which of the following do not belong?
a. reduced number of suppliers
b. increased number of suppliers
c. shorter life cycles
d. shared or reduced risk
e. increase in competition
16. The bullwhip effect describes
a. the effective use of technology
b. the effective use of forecasting
c. the problems caused by small, unnecessary changes in orders
d. the problems caused by too many suppliers
e. the problems caused by accurate forecasting
17. Which of the following are the newest components of the supply chain?
a. many suppliers
b. technical core
c. logistics
d. customers
e. raw material inventory
18. A vendor of your company has requested that you consider becoming partners. You have a made a list of subjects you want to discuss with the vendor. This list would include
a. a commitment to trust
b. a commitment to a long term relationships
c. a commitment to share information
d. all of the above would be on the list
e. none of the above would be on the list
19. Which of the following could be used to counteract the bullwhip effect?
I. sharing information across supply chain members
II. reducing the time and cost of placing an order
III. allowing vendors to manage their inventories
a. I only
b. II, III
c. III only
d. I, II, III
e. I, III
20. The term “logistics” could apply to
I. the delivery of goods needed to meet customer demands
II. the delivery of finished goods to the customer
III. the hiring of new employees to meet customer demands
a. I, III
b. III only
c. II only
d. I, II
e. I, II, III
21. Which of the following do not belong in a discussion of structural elements?
I. work force size
II. quality issues
III. vertical integration
a. I only
b. II, III
c. I, II, III
d. III only
e. I, II
22. The benefits of an ERP system include
a. faster customer response times
b. faster order fulfillment times
c. reduction in the number of errors
d. a, b
e. a, b, c
23. The term “technical core” refers to
a. the transformation of raw materials into finished goods
b. the transformation of finished goods into customer delivery
c. the transformation of suppliers into partners
d. the transformation of customers into order winners
e. all of the above
24. The problems that could result from bullwhipping include
I. excessive inventory
II. poor customer service
III. increased use of external logistics
a. I only
b. II, III
c. I, III
d. I, II
e. III only
25. The challenges facing the operations manager include
a. advances in technology
b. increased global competition
c. outsourcing offshore
d. b, c
e. a, b, c
26. The costs related to the level of production activity are called
a. sunk costs
b. variable costs
c. avoidable costs
d. fixed costs
e. none of the above
27. Which of the following could be used to describe a typical operations system?
I. inputs
II. components
III. transformation functions
a. I, II
b. I, II, III
c. III only
d. I, III
e. II only
28. ______is an exceptional capability that allows one company to achieve an advantage over others in the market place.
a. A corporate strategy
b. A professional capability
c. A distinctive competency
d. A core factor
e. None of the above
29. Depreciation measure
a. the functional usefulness of a piece of equipment
b. the amount of lease time left on a piece of equipment
c. the economic life of a piece of equipment
d. the amount of time a customer uses a piece of equipment
e. all of the above
30. The notion of fail safing states that
a. the process should be as simple as possible
b. the process should be foolproof
c. the process should have many steps
d. the process should not be service friendly
e. none of the above.
31. Operational services (little “s”) include
a. availability
b. customization
c. turnover
d. a, b
e. a, b, c
32. The service factory includes
I consultants
II. showrooms
III. delivery time
a. I only
b. II, III
c. I, II
d. I, II, III
e. II only
33. Which of the following would be included in the process velocity calculation?
I. Quality added time
II. total throughput time
III. value added time
a. I only
b. I, II
c. III only
d. II, III
e. I, II, III
34. Which of the following would be used in the calculation of slack time?
I. early start time
II. early finish time
III. late start time
a. I only
b. II only
c. II, III
d. I, II
e. I, II, III
35. Which of the following would not be included in the creation of a process chart?
a. operations
b. transportation
c. inspection
d. storage
e. turnover ratios
36. Which of the following does not belong in a discussion about a work breakdown structure?
a. project
b. time study
c. task
d. work package
e. program
37. You, the operations manager, have been asked to make a presentation on the mistakes to be avoided when considering the use of benchmarking. Which of the following would be included in that presentation?
I. little research of benchmarking partners
II. a large and complex process
III. best practices of the industry
a. II only
b. I only
c. I, II
d. III only
e. II, III
38. Which of the following would be associated with a make to stock production system?
a. Standardized product, low inventory levels
b. Customized product, high inventory levels
c. Standardized and customized products
d. Standardized product, high inventory levels
e. Customized product, low inventory levels
39. In a facilities based service system, an automobile owner would
a. wait for the service technician at home
b. take the car to competing dealer
c. take the car to the dealer where the car was purchased
d. contact the service center by mail
e. do the needed work himself/herself
40. Which of the following would be included in a discussion about new products?
a. incremental
b. radical
c. distributive
d. a, b
e. a, c
41. With respect to the Customer Activity Cycle, a firm’s position in the marketplace is strongest if it is involved in
a. the pre-purchase activities
b. the purchase activities
c. the post purchase activities
d. a, b
e. a, b, c
42. Which of the following would not belong in a discussion of the new product process?
I. idea generation
II. concept development
III. infrastructural elements
a. I only
b. II only
c. I, II
d. II, III
e. III only
43. Company ABC offers the customer service on any equipment bought from the company at the customer’s location. ABC is using
a. facilities based service
b. field based service
c. commodity based service
d. prepurchase service
e. discounted service
44. In a buffered service system, the customer
a. is permitted full access to the system
b. is expected to interact with the system
c. is excluded from the system
d. is allowed total customization
e. is permitted to have a face to face encounter with a sales person
45. In service systems where there is face-to-face contact and a great deal of flexibility in terms of customization,
a. there is a lesser chance of extra sales
b. there is a better chance of additional sales
c. there is a better chance of customer dissatisfaction
d. there are more products to offer
e. there is higher volume of sales
46. Which of the following would not be involved in a discussion about project control?
I. Gantt chart
II. PERT diagrams
III. Breakeven analysis
a. I only
b. II only
c. II, III
d. I, II, III
e. III only
Use the following to answer the next two questions
Activity Predecessors Normal time
A - 6
B A 4
C B 3
D B 2
E C 4
F C 5
G E, F 2
H D 3
I H 4
J G, I 3
47. Which of the following reflect the critical path?
a. A, B, D, E, H, I
b. A, B, C, E, G, J
c. A, B, C, F, G, J
d. A, B, D, H, I, J
e. A, C, H, G, I, J
48. The total for the critical path is
a. 21
b. 22
c. 23
d. 24
e. 25
49. Which of the following does not belong?
a. user friendly
b. provides evidence of service
c. order qualifiers are considered
d. cost effective
e. consistency with operating focus
50. Different points of view, role conflicts and power struggles are considered
a. signs of team formation
b. signs of team strength
c. signs of ineffective teams
d. signs of productivity
e. signs of organizational power
51. Performance measures would include
a. quality
b. speed of delivery
c. flexibility
d. all of the above could be measures of performance
e. none of the above are measures of performance
52. Benchmarking could involve the use of
I. additional workers
II. internal records
III. competitor success/failures
a. I only
b. II, III
c. I, II, III
d. I, II
e. II only
53. Your manager has asked you to create a few calculations that could be used to measure productivity. You identified several including dollars per customer. This measurement would
a. involve total sales divided by number of potential customers
b. involve total sales divided by visitors to your store
c. involve total sales divided by customer count
d. involve total sales divided by number of items purchased
e. involve total sales divided by advertising dollars spent
54. Rapid training, little education and close control are considered
a. disadvantages of specialization of labor
b. disadvantages of job enlargement
c. advantages of specialization of labor
d. advantages of job enrichment
e. advantages of the team concepts
55. In an attempt to enhance productivity at work you add some managerial responsibilities to a number of jobs at your work site. You have engaged in
a. job rotation
b. job enrichment
c. job enlargement
d. specialization
e. all of the above