Question Completion Status:

QUESTION 1

1. Operations management decisions must always be tied to the business strategy of the organization

   True

   False

2.5 points

QUESTION 2

1. Operations managers are typically responsible for decisions concerning production and delivery processes, quality of goods/services, capacity management, and inventory management.

   True

   False

2.5 points

QUESTION 3

1. Functionality refers to activities a product or service is designed to perform while reliability is concerned with how well the product or service performs ts intended activities.

   True

   False

2.5 points

QUESTION 4

1. Organizations should focus on producing a consistent level of quality before concentrating on greater speed of delivery or lower cost of delivery.

   True

   False

2.5 points

QUESTION 5

1. Procurement of materials to manufacture a product and shipment of goods to customers are part of supply chain management--which may be the responsibility of the Operations Department..

   True

   False

2.5 points

QUESTION 6

1. The resource-based view considers the set of resources available to the organization as a secondary driver of the business strategy.

   True

   False

2.5 points

QUESTION 7

1. Quality typically implies reliability.

   True

   False

2.5 points

QUESTION 8

1. When deciding what type of transformation process (project, job shop, flow shop, etc.) is appropriate for your operations, you must consider volume of output and degree of product/service customization.

   True

   False

2.5 points

QUESTION 9

1. An advantage of job shop operations is that output batch size is relatively large to make it cost-effective.

   True

   False

2.5 points

QUESTION 10

1. Disadvantages of flow shop operations include: (1) employee boredom and (2) absenteeism.

   True

   False

2.5 points

QUESTION 11

1. Continuous processes typically run 24 hours a day, seven days a week in order to spread huge fixed costs over as large a volume as possible.

   True

   False

2.5 points

QUESTION 12

1. Advantages of cellular production over job shop production include: (1) the need for less labor and equipment to move materials and (2) increased worker accountability.

   True

   False

2.5 points

QUESTION 13

1. A gap between what was designed and what was actually delivered can result in services that do not meet customer needs.

   True

   False

2.5 points

QUESTION 14

1. A supply chain's downstream activities are those closest to the raw material sources.

   True

   False

2.5 points

QUESTION 15

1. Economies of scale are achieved when the average unit cost of producing a good or delivering a service decreases as the total number of units produced increases.

   True

   False

2.5 points

QUESTION 16

1. Firms can increase capacity in the short-term by using existing resources more efficiently.

   True

   False

2.5 points

QUESTION 17

1. Firms should always build enough capacity to handle peak demands for their products and services.

   True

   False

2.5 points

QUESTION 18

1. Reverse logistics, an important component of supply chain management, involves moving the product back upstream from the customer to the repair/remanufacturing operations.

   True

   False

2.5 points

QUESTION 19

1. Average unit costs always decrease with larger manufacturing facilities due to economies of scale.

   True

   False

2.5 points

QUESTION 20

1. A goal of an organization that's highly effective in supply chain management is to increase its number of suppliers.

   True

   False

2.5 points

QUESTION 21

1. Reducing the uncertainty in waiting time and giving customers something to do while they wait can be more effective in decreasing the overall cost of waiting than adding service facilities.

   True

   False

2.5 points

QUESTION 22

1. The bullwhip effect results from larger and larger changes in inventory as customer demands are communicated upstream through the supply chain; reduced lot sizes and lead times can minimize this effect.

   True

   False

2.5 points

QUESTION 23

1. When choosing a location to establish a facility, you should consider proximity to customers, proximity to suppliers, workforce availability, labor laws, taxes, and politics of the region.

   True

   False

2.5 points

QUESTION 24

1. The primary purpose of a Customer Relationship Management (CRM) system is to reduce capital costs, storage costs, and risk costs associated with inventory by facilitating the best timing of orders and order sizes for inventory replenishment.

   True

   False

2.5 points

QUESTION 25

1. Outsourcing might be a good strategy for a commonly available item/service in order to reduce the risk of your uncertainty of demand for the item/service and to take advantage of economies of scale.

   True

   False

2.5 points

QUESTION 26

1. Capacity management strategies include influencing supply, for example, special promotions during slow periods and initial allocation of fixed capacity to highest paying customers.

   True

   False

2.5 points

QUESTION 27

1. When following a level workforce policy, your capacity management strategies may include paying overtime during high demand periods and stock piling inventory during slow demand periods.

   True

   False

2.5 points

QUESTION 28

1. Inventory costs include cost of raw materials that become part of final products, cost of items consumed during the production of goods or services, and cost of finished and partially-finished goods.

   True

   False

2.5 points

QUESTION 29

1. Which business strategy waits for the product to become fairly standardized and demanded in large volumes?

   		First-to-market
   		Second-to-market
   		Market Segmentation
   		Cost minimization or late-to-market

4 points

QUESTION 30

1. Which of the following is a major difference between continuous processes and flow shops?

   		In flow shops, there is a discrete product or service instead of products not naturally divisible
   		Continuous shops tend to be very small while flow shops tend to be very large
   		Inputs are fixed for continuous shops and the flow of work is continuous for flow shops
   		Degree of automation is higher for flow shops

6.5 points

QUESTION 31

1. Which of the following is a circumstance under which a manager would likely NOT want to outsource an activity?

   		Desire to achieve better performance through competition
   		Desire to achieve economies of scale on common parts
   		The activity is a core competency of your firm
   		Many reliable suppliers available to provide the activity

6.5 points

QUESTION 32

1. Which of the following is an aggregate planning strategy designed to influence demand?

   		Keep a level workforce but create excess inventory during slow times
   		Use advertisement/promotions
   		Lease workers and facilities
   		Add shifts

6.5 points

QUESTION 33

1. Which of the following is NOT a way to add capacity by influencing supply?

   		Employ part-time or seasonal workers
   		Use floating workers
   		Adjust prices
   		Use overtime