Question 1

Identify a benefit of holding larger inventories.

Accepted Answer

Holding larger inventories can help in maintaining smooth production schedules by ensuring that there are sufficient materials available to meet production demands without interruption.

Question 2

During the baseball season, the workers at Arenaz Stadium use mowing equipment to mow the baseball field. To ensure that the infield surface stays smooth and consistent, they use nail drags. The given scenario exemplifies the use of a _____.

Accepted Answer

The scenario describes maintaining a specific location (the baseball field) using equipment, which aligns with a fixed position layout where the product remains stationary, and workers and equipment come to the site.

Question 3

Devon Construction Inc. is currently working on a residential construction project. Matt, the company's operations manager, is using an operations management tool that helps him see the relationships among all the activities required to complete the project. When an equipment breaks down, he realizes that certain tasks that are crucial for the overall completion of the project will not be completed on schedule. Using the operations management tool, he is able to estimate the additional time needed for the completion of the project. In the context of the given scenario, Matt is most likely using _____.

Accepted Answer

The critical path method (CPM) is used to identify crucial tasks and estimate the time needed for project completion, which aligns with Matt's situation.

Question 4

Which of the following is a benefit of holding large inventories?

Accepted Answer

Holding large inventories can reduce ordering costs because it decreases the frequency of placing orders.

Question 5

Which of the following products is most likely to require a fixed position layout?

Accepted Answer

A submarine is typically constructed in a fixed position layout due to its size and complexity, requiring workers and materials to come to the site rather than moving the product.

Question 6

Identify a disadvantage of holding larger inventories.

Accepted Answer

Holding larger inventories ties up funds, as money is invested in stock that is not immediately sold, affecting cash flow.

Question 7

In the context of the location of facilities, the operations manager of a _____ is likely to choose a location based on the proximity to customers.

Accepted Answer

Banks need to be close to customers to provide convenient access to financial services.

Question 8

Jorgen Inc., a ship manufacturing company, is building a cruise ship at a harbor. As the ship is extremely large, workers move the equipment and machines to various parts of the ship as and when required. In the given scenario, Jorgen Inc. is using a _____.

Accepted Answer

In a fixed position layout, the product remains stationary, and workers, materials, and equipment are moved to the product's location. This is typical for large products like ships.

Question 9

Identify a true statement about process layouts.

Accepted Answer

Process layouts are designed to handle a variety of products and can be easily adapted to different tasks without the need for expensive retooling.

Question 10

A _____ falls between the product layout and the process layout.

Accepted Answer

A cellular layout is a hybrid system that combines elements of both product and process layouts, often used to improve efficiency and flexibility in manufacturing.

Question 11

Selena, a school teacher, plans the activities for the sports day of her school. She prepares a chart of all the activities planned for the day. From her chart, she figures out that some activities can be conducted independently and others must be conducted in a certain order. She also identifies the sequence of activities that will take the longest to complete. From the given information, it can be inferred that Selena is using _____ to efficiently schedule the sports day activities.

Accepted Answer

The critical path method is used to identify the sequence of dependent tasks that determine the longest duration for a project, which is what Selena is doing by identifying the sequence of activities that will take the longest to complete.

Question 12

The term _____ refers to stocks of goods or other items held by an organization.

Accepted Answer

Inventory refers to the stocks of goods or items that an organization holds for the purpose of resale, production, or utilization.

Question 13

The _____ is a project-management tool that illustrates the relationships among all the activities involved in completing a project and identifies the sequence of activities likely to take the longest to complete.

Accepted Answer

The critical path method (CPM) is a project-management tool that identifies the longest sequence of dependent activities and helps determine the shortest possible project duration.

Question 14

In the context of inventories, which of the following is a similarity between a manufacturing firm and a retail firm?

Accepted Answer

Both manufacturing and retail firms hold inventories of finished goods to meet customer demand.

Question 15

Which of the following is a disadvantage of holding large inventories?

Accepted Answer

Holding large inventories leads to additional holding costs, such as storage, insurance, and potential obsolescence.

Question 16

A _____ consists of the sequence of activities in a project that is expected to take the longest to complete.

Accepted Answer

The critical path is the sequence of activities in a project that determines the longest duration, thus dictating the shortest time in which the project can be completed.

Question 17

Kidzo Inc., a toy car company, has several units in its factory. Each unit is dedicated to producing different parts of the toy cars. For example, it has a unit that makes wheels, a unit that makes steering wheels, a unit that makes the body of the cars, and a separate unit that assembles all the parts together. In this scenario, Kidzo Inc. uses a _____.

Accepted Answer

The answer of Kidzo Inc., a toy car company, has...

Question 18

Lara is the owner of an event management company. For every project, Lara makes a chart to keep a track of multiple tasks that need to be accomplished simultaneously. From her chart, she finds the sequence of activities that will take the longest to complete. This helps her keep an eye on the project and address any issues that may delay the project. In this scenario, it can be inferred that Lara most likely uses _____ to execute her projects on time.

Accepted Answer

The critical path method (CPM) is a project management tool used to determine the longest sequence of dependent tasks and helps in identifying the tasks that directly impact the project completion time.

Question 19

A _____ is used for goods that must be produced at a specific site or that are so large and bulky that it isn't feasible to move them from station to station.

Accepted Answer

A fixed position layout is used for large, bulky goods that are produced at a specific site, as it is not feasible to move them.

Question 20

Identify a key factor that operations managers consider when deciding the location of a manufacturing facility.

Accepted Answer

The answer of Identify a key factor that operations managers...

Quiz 17: Operations Management: Putting It All Together