Deck 13: Operations and Supply Chain Management

Question 1

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

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

Make-or-buy decisions are irrelevant for service businesses

Question 7

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

Question 8

Companies should strive to increase the inventory carrying cost

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

Scheduling is difficult for the standard work

Question 16

Scheduling helps with efficient allocation of firm resources

Question 17

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

Question 18

Planning involves both forward looking and backward looking

Question 19

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

Question 20

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

Question 21

Total Quality management (TQM) is a process

Question 22

The six sigma approach was originally introduced at General Electric

Question 23

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

Question 24

A Quality control circle is an American invention

Question 25

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

Question 26

_________is concerned with planning, organizing, and controlling the resour?ces and activities that transform necessary inputs into desired products and services

A) Supply chain management
B) Operations management
C) Small business management
D) Control management

Question 27

The methods through which ________are converted into ______are called transformative processes

A) Outputs, inputs
B) One process, second process
C) Inputs, outputs
D) Planning, organizing

Question 28

________are the means to monitor operations and fix problems or deviations when they occur

A) Input
B) Feedback
C) Output
D) Control systems

Question 29

Mathematically, productivity can be expressed as :

A) Productivity = Inputs / Outputs
B) Productivity = (Inputs + Outputs)/Feedback
C) Productivity = (Outputs + Inputs)- Feedback
D) Productivity = Outputs / Inputs

Question 30

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 _____

A) 2:15, 1:15
B) 15:2, 15:1
C) 7:2, 2:7
D) 10:1, 5:1

Question 31

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 _____

A) 2:1, 1:2
B) 2:1, 1:2
C) 4:1, 1:4
D) 2:1, 4:1

Question 32

Small businesses can improve productivity by :

A) Decreasing output and increasing input
B) Increasing output and decreasing input
C) Decreasing the quality of its outputs
D) Focusing on manager's satisfaction

Question 33

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:

A) Increase the inventory carrying cost
B) Stock up more
C) Reduce inventory
D) Decrease the quality of inventory

Question 34

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 :

A) Stock up more
B) Reduce inventory
C) Increase inventory carrying cost
D) Decrease the quality of inventory

Question 35

Which of the following does NOT affect the decision to determine the right level of inventory:

A) The cost of lost sales when there is a stock-out
B) The time it takes to receive the goods from suppliers after they are ordered
C) Buyers' status
D) Inventory carrying cost

Question 36

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

A) Maximum
B) Minimum
C) Zero
D) Negative

Question 37

Which of the following is NOT true about the Just-in-time approach to inventory?

A) High dependence on suppliers
B) Focuses on keeping inventory level to the maximum
C) Lowers inventory carrying costs
D) Vulnerable to natural disaster

Question 38

The lean manufacturing focus is on _____, while just-in-time focuses on _______

A) Inventory, customer
B) Customers, inventory
C) Reducing inventory costs, increasing inventory costs
D) Increasing inventory costs, reducing inventory costs

Question 39

The Lean manufacturing focuses on :

A) Producing more output using less resource
B) Producing less output using more resource
C) High inventory costs
D) Low labor costs

Question 40

Which of the following is an advantage of a forward scheduling?

A) Orders are fulfilled in the shortest possible time
B) Delays starting work orders
C) Inflexibility with workforce
D) All resources are used up sooner

Question 41

Forward scheduling starts ___________, while backward scheduling starts__________

A) In linear fashion, in non-linear fashion
B) In non-linear fashion, in linear fashion
C) When the order comes in, when the order must be completed
D) When the order must be completed, when the order comes in

Question 42

________pertains to determining the path that must be followed from raw materials to a finished product

A) Dispatching
B) Routing
C) Scheduling
D) Operations

Question 43

In the DMAIC approach, C stands for:

A) Consistency
B) Control
C) Customer
D) Congruence

Question 44

From a business perspective, quality does NOT involve:

A) Functionality
B) Imitation
C) Safety
D) Consistency

Question 45

_______refers to the idea that a product should meet or exceed its claims to customers and regulators

A) Consistency
B) Safety
C) Functionality
D) Control

Question 46

_________is about producing and delivering products with low variance

A) Consistency
B) Safety
C) Functionality
D) Control

Question 47

The six sigma focuses on improving the quality of products or services by:

A) Reducing defects
B) Minimizing variances throughout
C) Fixing inefficiency
D) All of the above

Question 48

What is true about the six sigma approach?

A) Reduces waste
B) Decreases the quality of products
C) Discourages employee participation
D) Increases customer dissatisfaction

Question 49

Which of the following is true of Quality circles?

A) Decreases employees motivation
B) High level of conflicts with employees
C) Builds good relationship with employees
D) Against top management strategy

Question 50

______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

A) Socialization
B) Consultants
C) Managers
D) Quality circle