MIDTERMS (EXAM) 1

Question 1

Information Technology refers to methods, procedures, and equipment used to produce goods and services.

(True or false)

Answer 1

False

Question 2

The Scientific Management Movement was spearheaded by Henry Ford.

(True or false)

Answer 2

False (Frederick Winslow)

Question 3

The sample standard deviation of forecast error is estimated by the square root of MSE

(True or false)

Answer 3

True

Question 4

Organization that are capable of responding quickly to changing requirements can use a shorter forecast horizon and therefore benefit from more accurate forecast

(True or False)

Answer 4

True

Question 5

The Two Factor theory combined the Japanese approach and traditional Western approach in management

(True or false)

Answer 5

False (The Two Factor Theory was developed by Frederick Herzberg, not Japan.)

Question 6

Forecasting refers to the ability of the organization to respond quickly to demands and opportunities.

(True or False)

Answer 6

False ( Forecasting is about predicting what will happen — not about how fast the organization responds.)

Question 7

The greater the degree of customer involvement, the more challenging the design and management of operations.

(True or false)

Answer 7

True

Question 8

Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their apprentices using custom-made parts

(True or false)

Answer 8

True

Question 9

Operations and sales are the two functional areas that exist to support activities in other functions such as accounting, finance, IT, and human resources.

(True or false)

Answer 9

False

Question 10

“Value added” by definition is always a positive number since “added” implies increases.

(True or False)

Answer 10

False

Question 11

Services can be stored and are not provided “on demand”

(True or false)

Answer 11

False

Question 12

Service often requires relatively greater labor content when compared to manufacturing.

(True or false)

Answer 12

True

Question 13

Once accepted by managers, forecasts should be held firm regardless of new input since many plans have been made using the original forecast

(True or false)

Answer 13

False (Because forecasts should be monitored and adjusted — not held firm no matter what.)

Question 14

Forecasts help managers both to plan the system itself and to provide valuable information for using the system.

(True or false)

Answer 14

True

Question 15

Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization’s goods or services.

(True or false)

Answer 15

False

Question 16

There are very few pure goods or pure services, so most companies sell product packages that combine goods and services. Therefore, most production systems involve a blend of goods and services.

(True or false)

Answer 16

True

Question 17

If errors fall beyond bounds, corrective action may be necessary

(True or false)

Answer 17

True

Question 18

Henry Gantt introduces the division of labor which paves the way for..

(True or false)

Answer 18

False

Question 19

Assembly lines improved productivity by using interchangeable parts and craft production.

(True or false)

Answer 19

False

Question 20

System operation decisions are typically strategic decisions that usually require a long-term commitment of resources.

(True or false)

Answer 20

False

Question 21

Marketing personnel and product designers must work closely with operations to successfully determine how ___________new products designs will be.

Answer 21

Manufacturable

Question 22

Product design and process selection are example of?

Answer 22

System design decision

Question 23

Technology choices can have a major impact on?
a. Productivity
b. All of these choices
c. Quality
d. Costs

Answer 23

B. All of these

Question 24

Suppose a three-period weighted average is being used to forecast demand. Weights for the periods are as follows : Wt-3 = 0.2, Wt-2=0.3, and Wt-1 = 0.5. Demand observed in the previous three periods was as follows: At-3 = 2,200, At-2= 1,950, and At-1= 2,050. What will be the demand forecast for period t?

Answer 24

2050

Question 25

Which of the following is not true about the systems approach? a. A systems approach emphasizes interrelationships among subsystems. b. All of the choices are true. c. A systems viewpoint is almost always beneficial in decision-making d. A systems approach concentrates on efficiency within subsystems.

Answer 25

d. A systems approach concentrates on efficiency within subsystems.

Question 26

Which of the following is a type of transformation process used by operations to convert inputs into outputs a. All of these choices are transformation processes b. Cutting c. Storing d. Transporting

Answer 26

a. All of these choices are transformation processes

Question 27

Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased level of _____ is leading to increased emphasis on _____ management. a. Outsourcing; supply chain b. Offshoring:lean c. Optimizing:inventory d. Downsizing:total quality

Answer 27

a. Outsourcing; supply chain

Question 28

Given an actual demand of 59, a previous forecast of 64, and an alpha of 0.3, what would the forecast for the next period be using simple exponential smoothing?

Answer 28

62.5

Question 29

Which of the following would not generally be classified under the heading of transformation? a. Consulting b. Staffing c. Assembling d. Farming

Answer 29

Staffing

Question 30

Budgeting, analysis of investment proposals, & provision of funds are activities with what function inside the organization?

Answer 30

Finance

Question 31

It refers to the measurements taken at various points in the transformation process.

Answer 31

Feedback

Question 32

What do you call the system in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods widely used before the Industrial Revolution?

Answer 32

Craft Production

Question 33

He adopted the scientific management principles of Frederick W. Taylor, and introduced the moving assembly line

Answer 33

Henry ford

Question 34

The president of State University wants to forecast student enrollments for this academic year based on the following historical data: Year Enrollments 5 years ago 15,000 4 years ago 16,000 3 years ago 18,000 2 years ago 20,000 Last Year 21,000 What is the forecast for this year using the naive approach?

Answer 34

22000

Question 35

The business analyst for Video Sales, Incorporated wants to forecast this year's demand for DVD decoders based on the following historical data: Year Enrollments 5 years ago 900 4 years ago 700 3 years ago 600 2 years ago 500 Last Year 300 What is the forecast for this year using a three-year weighted moving average with weights of 0.5, 0.3, and 0.2?

Answer 35

420

Question 36

Professor Very Busy needs to allocate time next week to include time for office hours. He needs to forecast the number of students who will seek appointments. He has gathered the following data: Week Number of Students 6 weeks ago 83 5 weeks ago 110 4 weeks ago 95 3 weeks ago 80 2 weeks ago 65 Last Week 50 What is this week's forecast using the naive approach? (Write your answer in figures, for example, 4000)

Answer 36

35

Question 37

These variations are caused by defective inputs, incorrect work methods, and out-of-adjustment which can be reduced or eliminated by analysis and corrective action.

Answer 37

Assignable variation

Question 38

These variations include trends and seasonal variations which are generally predictable and are particularly important for capacity planning.

Answer 38

Structural variation in demand

Question 39

It is the Core Function or the engine room of every business.

Answer 39

Operation Management