Exam 1

Question 1

An operations and supply chain strategy must be integrated with the organization’s corporate strategy.

Answer 1

True

Question 2

What is meant by the term “operations effectiveness”?

Answer 2

Performing activities in a manner that best implements strategic priorities at minimum cost

Question 3

Which of the following is not a major strategic operational competitive dimension that forms a company’s competitive position?

Answer 3

Management acumen

Question 4

A firm has to excel simultaneously on all competitive dimensions in order to achieve success.

Answer 4

False

Question 5

Straddling strategy is risky, which occurs when a company seeks to match the benefits of a successful position while maintaining its existing position.

Answer 5

true

Question 6

Which of the below supply chain strategies will be impacted most if inventory risks occur?

Answer 6

Lean Practices

Question 7

Supply chain risk is the likelihood of a disruption that would impact the ability of a company to continuously supply products or services.

Answer 7

true

Question 8

Productivity is a measure of how well a country, industry, or business unit is using its resources and it is a relative measure.

Answer 8

true

Question 9

In a partial measure of productivity, the denominator of the ratio would include all resources used or all inputs.

Answer 9

false

Question 10

In addition to economic prosperity and environmental Stewardship, social responsibility is the third aspect/criteria that is used to evaluate a firm. (T/F)

Answer 10

true

Question 11

Time series forecasting models make predictions about the future based on analysis of past data. (T/F)

Answer 11

true

Question 12

Which of the following is NOT one of the basic forecasting types discussed in our class meeting?

Answer 12

Force field analysis

Question 13

In most cases, demand pattern for products or services can be broken down into several components. Which of the following is NOT considered a component of demand pattern?

Answer 13

past data

Question 14

Cyclical influences are more difficult to determine because the time span may be unknown or the cause of the cycle may not be considered. (T/F)

Answer 14

true

Question 15

In a forecasting model using a simple moving average, the longer the time span used for calculating the moving average, the closer the average follows volatile trends. (T/F)

Answer 15

false

Question 16

Simple exponential smoothing forecasts always lag behind the actual occurrence but can be corrected somewhat with a trend adjustment. (T/F)

Answer 16

True

Question 17

Which of the following forecasting methodologies can be used for causal relationship forecasting?

Answer 17

Linear regression

Question 18

Using the simple exponential smoothing model for forecasting, F_t = F_(t-1) + α(A_(t-1)-F_(t-1)), the smoothing constant alpha (α) determines the level of smoothing and which one of the following?

Answer 18

The speed of reaction to differences between forecasts and actual results

Question 19

Simple moving average, weighted moving average, and simple exponential smoothing are usually used for short term forecasting. (T/F)

Answer 19

True

Question 20

When it comes to measuring the forecasting model performance, smaller values of Mean Absolute Deviation (MAD) indicates a more accurate model. (T/F)

Answer 20

True

Question 21

The objective of strategic capacity planning is to provide an approach for determining the overall capacity level of labor-intensive resources.

Answer 21

False

Question 22

When evaluating capacity, managers need to consider both resource inputs and product outputs.

Answer 22

True

Question 23

The capacity utilization rate is found by dividing capacity used by best operating level.

Answer 23

True

Question 24

At some point, the size of a growing plant can become too large and diseconomies of scale become a capacity planning problem.

Answer 24

true

Question 25

The way to build in greater flexibility in your workers is to do which of the following?

Answer 25

Provide a broader range of training

Question 26

Which of the following is NOT one of the considerations in changing capacity?

Answer 26

immediate product demand

Question 27

A capacity cushion is the amount of capacity less than expected demand.

Answer 27

False

Question 28

Capacity flexibility means having the ability to rapidly increase or decrease production levels, or to shift production capacity quickly from one product or service to another.

Answer 28

true

Question 29

The capacity focus concept can be put into practice through a mechanism called which of the following?

Answer 29

Plant within a plant (PWP)

Question 30

In solving a decision tree problem, calculations start at the ends of the "branches" of the tree and work backwards to the base of the tree.

Answer 30

True

Question 31

One of the reasons that customer order decoupling point is strategically important is because it can affect the lead time to fulfill the customer’s order.

Answer 31

True

Question 32

A firm fills its customer's orders from finished goods inventory. It is a:

Answer 32

Make-to-order

Question 33

Which of the below production strategies have the highest level of customization?

Answer 33

Engineer to order

Question 34

An example of an assemble-to-order firm is Dell computer.

Answer 34

true

Question 35

Engineer-to-order firms will work with the customer to design the product, and then make it from purchased materials and components.

Answer 35

True

Question 36

Which of the following basic types of facility layouts is the one where similar equipment or functions are grouped together?

Answer 36

Work Center

Question 37

One difference between an assembly line process flow and a continuous process flow is that on the assembly line the flow is discrete rather than continuous.

Answer 37

true

Question 38

Little's law says there is a long-term relationship between the inventory, throughput, and flow time of a production system. The relationship is: Throughput rate = Inventory × Flow time.

Answer 38

False

Question 39

Total average value of inventory is the sum of the value of raw materials and finished goods inventory.

Answer 39

False

Question 40

In designing a production layout, a flexible line layout might have the shape of a "U".

Answer 40

True