OPS 350 Week 5 Quiz

OPS 350 Week 5 Quiz | Assignment Help | University Of Phoenix 

OPS/350: Operations Management

Week 5: Final Exam

 

Question 1

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

o   True

o   False

 

Question 2

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

 

o   True

o   False

 

 

Question 3

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

 

o   Inventory holding costs

o   Taxes and insurance

o   Ordering costs

o   Storage and handling costs

 

 

Question 4

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.

o   True

o   False Correct answer

 

Question 5

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

 

o   True

o   False

 

Question 6

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

 

o   James Watt.

o   Frederick Taylor.

o   Eli Whitney.

o   Charles Babbage.

 

Question 7

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

 

o   True

o   False

 

Question 8

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.

 

·                    True

·                    False

 

 

 

 

 

Question 9

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

 

o   True

o   False

 

Question 10

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

 

o   Annual plan.

o   Business plan.

o   Resource plan.

o   Financial budget.

 

 

Question 11

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

 

o   True

o   False

 

 

Question 12

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

 

 

o   When the item's demand depends on the production plans of its parent(s)

o   When the item's demand depends only on customer demand

o   When the item's demand is uniform

o   When the item's demand is constant

 

Question 13

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

 

o   True

o   False

 

 

Question 14

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

 

o   True

o   False

 

Question 15

Process decisions are strategic in nature.

 

o   True

o   False

 

 

Question 16

Appraisal costs are associated with preventing defects before they happen.

 

o   True

o   False

 

 

Question 17

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

 

o   True

o   False

 

Question 18

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

 

 

Question 19

One of the basic time series patterns is random.

o   True

o   False

 

Question 20

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

 

o   True

o   False

 

 

Question 21

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

 

o   True

o   False

 

Question 22

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

 

Question 23

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

 

o   A fixed structure.

o   A matrix structure.

o   A functional structure.

o   A pure project structure.

 

Question 24

Kaizen is the Japanese term for continuous improvement.

o   True

o   False

 

 

Question 25

Projects often cut across organizational lines.

 

o   True

o   False

 

 

 

Question 26

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

 

o   True

o   False

 

Question 27

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

 

o   Publication of the Toyota Production Systems book

o   Strategic planning for achieving product variety

o   Establishment of railroads Correct answer

o   Invention of the assembly line

 

Question 28

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.

 

o   True

o   False

 

Question 29

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

o   True

o   False

 

 

 

 

Question 30

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.

 

o   True

o   False

 

Question 31

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

 

o   True

o   False

 

Question 32

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

 

o   True 

o   False

 

 

Question 33

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

 

o   True

o   False

 

Question 34

The terms "aggregate plan" and "sales and operations plan" are synonymous.

 

o   True

o   False

 

 

Question 35

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

 

o   True

o   False

 

Question 36

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

 

o   True

o   False

 

Question 37

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

 

o   Management.

o   Customers.

o   Processes.     

o   Stakeholders.

 

 

Question 38

Setup cost is independent of order size.

o   True

o   False

 

 

Question 39

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

 

o   Psychological impressions

o   Individual development

o   Fitness for use

o   Value

 

 

Question 40

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.

 

o   True

o   False

 

Question 41

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

 

o   True

o   False

 

 

 

 

 

Question 42

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

 

o   True

o   False

 

 

Question 43

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

 

o   True

o   False

 

Question 44

One component of the holding cost of inventory is interest.

 

o   True

o   False

 

Question 45

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

o          True

o          False