MULTIPLE CHOICE. Choose the one alternative that best completes the statement
or answers the question.
1) Which of the following is NOT one of McDonald's "seven major innovations"?
A) play areas
B) breakfast menus
C) self-service kiosks
D) the Happy Meal
E) drive-through windows
2) The ________ layout's main objective is to equalize the task time for each
A) product oriented
B) fixed position
D) work cell
E) job shop
Deloitte & Touche solved the empty desk problem by:
assigning permanent desks.
reducing the number of allowable sick days per employee.
creating open offices.
no longer allowing employees to work from home.
implementing a "hoteling" program.
4) Which type of layout features departments or other functional groupings in
which similar activities are performed?
Which of the following is NOT an advantage of work cells?
reduced investment in machinery and equipment
heightened sense of employee participation
reduced raw material and finished goods inventory
reduced direct labor cost
decreased equipment and machinery utilization
6) Which one of the following is NOT common to repetitive and product-oriented
A) a high rate of output
B) low unit costs
C) specialized equipment
D) standardized products
E) ability to adjust to changes in demand
7) Most pit crew members have background experience in what area?
A) automobile race driving
C) car mechanics
D) mechanical engineering
E) No specific areacrew members come from all sorts of backgrounds.
8) The two most basic policies associated with employment stability are:
A) employment for life and guaranteed minimum wage.
B) full-time and part-time.
C) incentive plans and piece-rate plans.
D) job enrichment and job enlargement.
E) follow demand exactly and hold employment constant.
9) What is the behavioral approach to job design that involves giving the worker
more tasks requiring similar skills?
10) The visual workplace:
A) eliminates non-value-added activities by making problems and standards
B) uses low-cost visual devices to share information.
C) is an effective means of rapid communication in a dynamic workplace.
D) replaces difficult-to-understand paperwork.
E) All of the above describe the visual workplace.
11) Methods analysis focuses on:
A) issues such as the movement of individuals or material.
B) evaluating training programs to see if they are efficient.
C) the design of the machines used to perform a task.
D) reducing the number of skills needed for the completion of a task.
E) establishing time standards.
12) Ethical work environment decisions by managers may be guided by which of the
A) state agencies
D) trade associations
E) all of the above
13) Which of the following characteristics is NOT common to all four of Darden
Restaurants' supply channels?
A) product tracking
B) supplier qualification
D) just-in-time delivery
E) independent audits
14) Which one of the following is NOT one of the six sourcing strategies?
B) negotiation with many suppliers
C) virtual companies
D) vertical integration
E) short-term relationships with few suppliers
15) What type of negotiating strategy requires the supplier to open its books to
A) competitive bidding
B) cost-based price model
C) price-based model
D) transparent negotiations
E) market-based price model
16) What term is used to describe the outsourcing of logistics?
A) shipper-managed inventory (SMI)
B) third-party logistics (3PL)
E) hollow logistics
17) The Institute for Supply Management:
A) publishes the principles and standards for ethical supply management conduct.
B) prohibits backward integration into developing economies.
C) grants Ph.D. degrees in purchasing.
D) establishes laws and regulations for supply management.
E) is an agency of the United Nations charged with promoting ethical conduct
18) Which of the following is NOT one of the five parts of the Supply Chain
Operations Reference (SCOR) model?
19) Which of the following statements regarding Amazon.com is FALSE?
A) The company was founded as, and still is, a "virtual" retailer with no
B) The company uses both United Parcel Service and the U.S. Postal Service as
C) The company was opened by Jeff Bezos in 1995.
D) The company is now a world-class leader in warehouse automation and
E) Amazon obtains its competitive advantage through inventory management.
20) Which of the following statements about ABC analysis is FALSE?
A) ABC analysis is based on the presumption that controlling the few most
important items produces the vast majority of inventory savings.
B) In ABC analysis, "A" items should have tighter physical inventory control
than "B" or "C" items have.
C) Criteria other than annual dollar volume, such as high holding cost or
delivery problems, can determine item classification in ABC analysis.
D) ABC analysis is based on the presumption that all items must be tightly
controlled to produce important cost savings.
E) In ABC analysis, forecasting methods for "C" items may be less sophisticated
than for "A" items.
21) Which of the following is an element of inventory holding costs?
A) pilferage, scrap, and obsolescence
B) housing costs
C) investment costs
D) material handling costs
E) All of the above are elements of inventory holding costs.
22) If the standard deviation of demand is six per week, demand is 50 per week,
and the desired service level is 95%, approximately what is the statistical
Cannot be determined without lead time data.
23) Which of the following items is mostly likely managed using a single-period
A) canned food at the grocery store
B) Christmas trees
C) gas sold to a gas station
D) metal for a manufacturing process
E) automobiles at a dealership
24) The fixed-period inventory system requires more safety stock than a fixedquantity system because:
A) a stockout can occur during the review period as well as during the lead
B) setup costs and holding costs are large.
C) replenishment is not instantaneous.
D) this model is used for products that require very high service levels.
E) this model is used for products that have large standard deviations of
25) Frito-Lay uses aggregate planning to match capacity with demand because of
the ________ associated with its specialized processes.
high variable cost and low fixed cost
high variable cost and high fixed cost
low variable cost and low fixed cost
low variable cost and high fixed cost
none of the above
26) What is the typical time horizon for aggregate planning?
A) over 5 years
B) less than a month
C) over one year
D) 3 to 18 months
E) up to 3 months
27) The objective of aggregate planning is to meet forecast demand while
________ over the planning period.
A) maximizing service level
B) minimizing fixed cost
C) minimizing cost
D) minimizing stock out
E) all of the above
28) Dependence on an external source of supply is found in which of the
following aggregate planning strategies?
varying production rates through overtime or idle time
using part-time workers
back ordering during high demand periods
hiring and laying off
29) Which of the following is NOT one of the successful techniques for
controlling the cost of labor in services?
A) little flexibility in worker hours to decrease the burden on management
B) an on-call labor resource that can be added or deleted to meet unexpected
C) flexibility in rate of output or hours of work to meet changing demand
D) accurate scheduling of labor-hours to assure quick response to customer
E) flexibility of individual worker skills that permits reallocation of
30) Which of the following characteristics makes revenue management UNATTRACTIVE
to organizations that have perishable inventory?
capacity is easily changed
service can be sold in advance of consumption
demand can be segmented
variable costs are low and fixed costs are high
31) Which of the following statements regarding Wheeled Coach is FALSE?
A) Low inventory and high quality are two positive outcomes of Wheeled Coach's
use of MRP.
B) Wheeled Coach has found competitive advantage through MRP.
C) Wheeled Coach builds ambulances in a repetitive process.
D) Wheeled Coach's MRP system allowed the company to meet tight schedules, but
caused inventory to rise.
E) Wheeled Coach's MRP system maintains excellent record integrity.
32) Effective use of MRP and other dependent demand models does not require
which of the following?
A) lead times
B) cost of individual components
C) master production schedule
D) inventory availability
E) bill of materials
33) If safety stock is desired, it should be built into which portion of MRP?
A) finished goods
B) purchased component
C) raw materials
D) module level
E) all of the above
34) Which of the following lot-sizing techniques results in the lowest holding
A) the quantity discount model
D) Wagner-Whitin algorithm
35) Capacity planning in closed-loop MRP:
A) may smooth work center loads with such tactics as overlapping and lot
B) utilizes feedback about workload from each work center.
C) does not add capacity, but rather seeks effective use of existing capacity.
D) may make use of resource requirements profiles (load reports).
E) All of the above are true.
36) Enterprise resource planning (ERP):
A) seldom requires software upgrade or enhancement.
B) does not integrate well with functional areas other than operations.
C) automates and integrates the majority of business processes.
D) is inexpensive to implement.
E) all of the above
37) Which of the following statements regarding scheduling at Alaska Airlines is
A) Flying into Alaska complicates scheduling.
B) Schedule changes at one airport have a ripple effect that may have impacts in
C) Alaska Airlines' rapid rescheduling uses mathematical scheduling models.
D) Alaska Airlines' rapid rescheduling promotes air safety and limits traveler
inconvenience, but has not resulted in money savings for Alaska Airlines.
E) Alaska Airlines' high-tech computer and communications system is located in
38) What is the objective of scheduling?
A) minimize response time
B) minimize lead time
C) minimize cost
D) prioritize and allocate demand to available facilities
E) maximize quality
39) Which of the following is NOT required to be known in order to schedule
A) the capacity of each work center
B) the availability of each work center
C) which workers are assigned to each work center
D) the time required for each item
E) the sequence of work
40) A work center is interested in limiting work-in-process by not allowing
production to start again until the current batch is finished. The best solution
most likely involves:
the assignment method.
41) EDD stands for what?
A) economic date determination
B) earliest detrimental date
C) earliest decision date
D) earliest due date
E) earliest design date
42) Which of the following is NOT tracked by scheduling optimization systems
used in retail stores?
A) individual store sales
B) cars parked in the parking lot
C) customer traffic
E) units sold
43) What does TPS stand for?
A) Toyota Production System
B) Total Production Streamlining
C) Taguchi's Production S's
D) Total Process Simplification
E) Transparent Processing System
44) Which of the following is generally found in most Lean environments?
A) a push or pull system, depending upon the rate of demand
B) push systems
C) a push system for purchased parts and a pull system for manufactured parts
D) a push system for high margin items and a pull system for low margin items
E) pull systems
45) Concerning relationships with suppliers, which of the following combinations
is critical to the success of JIT?
distant relationships with skepticism
close relationships with skepticism
distant relationships with trust
close relationships with trust
none of the above
46) Which of the following is LEAST likely to be a low-cost leadership
A) mass production
B) low overhead
C) effective capacity use
D) broad product line
E) inventory management
47) Porter's Five Forces Model is used to evaluate competition based on which 5
A) cost, legal regulations, advertising effectiveness, potential entrants, and
B) immediate rivals, potential entrants, customers, suppliers, and substitute
C) research and development, cost, legal regulations, suppliers, customers
D) potential entrants, customers, suppliers, legal regulations, and cost
E) immediate rivals, potential entrants, cost, substitute products, and legal
48) Which of the following statements is most correct?
A) KSFs are neither necessary nor sufficient for competitive advantage.
B) KSFs are often necessary, but not sufficient for competitive advantage.
C) KSFs are often sufficient, but not necessary for competitive advantage.
D) KSFs are both necessary and sufficient for competitive advantage.
E) None of the above statements is correct.
49) Which of the following statements about maintenance at the Orlando Utilities
Commission is FALSE?
A) Costs associated with breakdowns are several times higher than costs arising
from preventive maintenance.
B) There are at least two types of preventive maintenance, including an annual
maintenance and a less frequent overhaul schedule.
C) Each of its power-generating units is taken off-line for maintenance every
one to three weeks.
D) Its preventive maintenance program has earned the company top rankings and
its competitive advantage.
E) Each power-generating unit is taken off-line every three years for a complete
50) The objective of maintenance and reliability is to:
A) ensure that no breakdowns will ever occur.
B) maintain the capability of the system.
C) ensure that maintenance employees are fully utilized.
D) ensure that preventive maintenance costs are kept as low as possible.
E) ensure that breakdowns do not affect the quality of the products.
51) A system is composed of three components A, B, and C. All three must
function for the system to function. There are currently no backups in place.
The system has a reliability of 0.966. If a backup is installed for component A,
the new system reliability will be:
greater than 0.966
less than 0.966.
greater than it would be if a backup were also installed for component B.
none of the above
52) The normal distribution is an appropriate model of:
A) system reliability where components are connected in parallel.
B) system reliability where components are connected in series.
C) the MTBF distribution of products, machines, or processes that have "settled
D) the high initial failure rates of product, machine, or processes.
E) the full cost view of maintenance.
53) Infant mortality refers to which one of the following examples?
A) high failure rate often encountered in the very early stages of the lifetime
of a product
failure of products with a very short life cycle
market failure of brand new products
high frequency on the left side of the MTBF distribution
failure of items used in the nursery ward of a hospital
54) Which of the following is true regarding total productive maintenance (TPM)?
A) TPM is concerned with machine operation, not machine design.
B) TPM reduces variability through autonomous maintenance and excellent
C) TPM views maintenance and repair as tactical issues, not strategic ones.
D) Field service and depot service perform virtually all maintenance and repair
E) Operators run their machines, but maintenance departments maintain them.
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