OPS 350 Week 5 Final Exam

Question 1

The foundations of modern manufacturing and technological breakthroughs were inspired by the creation of the mechanical computer by:

Frederick Taylor.

Eli Whitney.

James Watt.

Charles Babbage.

Question 2

In a lean system, an item that is manufactured before it is needed is not considered waste, because it helps keep material flowing through the system.

Question 3

The terms “aggregate plan” and “sales and operations plan” are synonymous.

Question 4

Regardless of how departments like Accounting, Engineering, Finance, and Marketing function in an organization, they are all linked together through:

stakeholders.

management.

customers.

processes.

Question 5

Material requirements planning is a computerized information system developed specifically to aid in managing dependent-demand inventory and scheduling replenishment orders.

Question 6

Material requirements planning (MRP) is a computerized information system developed specifically to aid in managing dependent demand inventory and scheduling replenishment orders.

Question 7

2

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A weary traveler shows up at a hotel desk at midnight without a reservation. The desk clerk informs him that there is a room available, but sadly it is marked up 80% higher than the usual price. This is an example of promotional pricing.

Question 8

1

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A project is an interrelated set of activities that has a definite starting and ending point.

Question 9

2

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Operations planning and scheduling is the process of making sure demand and supply plans are in balance.

Question 10

2

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A product family is a group of customers, services, or products that have similar demand requirements and common processes, labor, and materials requirements.

Question 11

2

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Dependent demand for an item occurs because the quantity required for it varies with the production plans of one or more parents.

Question 12

2

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The projected on-hand inventory in the MPS takes into account scheduled receipts, but not planned receipts.

Question 13

1

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Reducing setup costs will increase the pressure to keep large inventories.

Question 14

2

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A water ski manufacturer believes they can double their sales by producing snow skis during the other half of the year. This approach to demand management is an example of complementary products.

Question 15

2

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Under which one of the following circumstances can an MRP system be used to its best advantage?

when the item’s demand is uniform

when the item’s demand depends only on customer demand

when the item’s demand depends on the production plans of its parent(s)

when the item’s demand is constant

Question 16

1

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One component of the holding cost of inventory is interest.

Question 17

2

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In a lean system, large inventories are not considered a type of waste, because they prevent operator wait times.

Question 18

0

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quantitative methods methods use historical data on independent variables to predict demand.

Question 19

1

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When performing sales and operations planning, companies can aggregate products or services but not members of their workforce.

Question 20

1

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Process decisions are strategic in nature.

Question 21

2

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An example of an internal failure cost would be warranty cost.

Question 22

2

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Appraisal costs are associated with preventing defects before they happen.

Question 23

2

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Which of these Great Moments in Operations and Supply Chain Management did NOT occur in the 20th century?

strategic planning for achieving product variety

publication of the Toyota Production Systems book

invention of the assembly line

establishment of railroads

Question 24

2

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The just-in-time (JIT) philosophy is the belief that cutting inventory and removing non-value-added activities in operations can eliminate waste.

Question 25

2

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Support functions in an organization include Accounting, Human Resources and Engineering.

Question 26

1

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A services firm’s sales and operations plan generates both production plan and a staffing plan.

Question 27

2

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Which of the following does NOT generate pressure to decrease inventories?

ordering costs

inventory holding costs

storage and handling costs

taxes and insurance

Question 28

2

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Projects often cut across organizational lines.

Question 29

2

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A quantity discount is attractive because there is a drop in the price per unit when the order is sufficiently large.

Question 30

2

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A project organization structure where team members are assigned to the project and work exclusively for the project manager is called:

a matrix structure.

a fixed structure.

a pure project structure.

a functional structure.

Question 31

0

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A financial assessment of a not-for-profit organization’s near future (for one or two years ahead) is a(n):

annual plan.

financial budget.

business plan.

resource plan.

Question 32

2

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Consumers consider five aspects when defining quality. Which one of the following is least likely to be one of these aspects?

psychological impressions

individual development

value

fitness for use

Question 33

2

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The three main line functions of any business include Operations, Finance and Marketing.

Question 34

2

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The projected on-hand inventory in the MPS takes into account customer orders (booked) as well as the MPS quantities.

Question 35

2

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The repeated observations of demand for a product or service in their order of occurrence form a pattern known as a time series.

Question 36

2

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Kaizen is the Japanese term for continuous improvement.

Question 37

2

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No process can exist without at least one product or service.

Question 38

2

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A stockout occurs when an item that is typically stocked is not available to satisfy a demand the moment it occurs.

Question 39

2

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Setup cost is independent of order size.

Question 40

2

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When looking at inventory management, the term “lot size” refers to the physical dimensions of the area where the inventory is stored.

Question 41

1

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A make-to-stock strategy involves holding items in stock for immediate delivery and is feasible for standardized products with high volumes and reasonably accurate forecasts.

Question 42

2

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One of the basic time series patterns is random.

Question 43

1

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The product-process matrix brings together the elements of volume, process, and quality.

Question 44

2

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A backorder occurs when a customer order cannot be filled when it is placed, but is instead filled later.

Question 45

2

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The investment a company makes in training employees to perform their duties and redesigning products and processes to improve them would be categorized as prevention costs.