OPS Test 1 – Flashcards
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Which of the following assumptions apply to the production order quantity model but not to the EOQ model?
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The production rate is finite
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The difference between the basic EOQ model and the production order quantity model is that
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the production order quantity model does not require the assumption of instantaneous delivery
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Which of the following assumptions apply to the production order quantity model but not to the EOQ model?
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The production rate is finite.
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The difference between the basic EOQ model and the production order quantity model is that
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the production order quantity model does not require the assumption of instantaneous delivery.
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What is the cost to prepare a machine or process for production?
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Setup cost
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A statistical model applicable when product demand or any other variable is not known but can be specified by means of a probability distribution is referred to as
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a probabilistic model
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Which of the following is not one of the basic assumptions of the basic EOQ model?
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Quantity discounts are possible
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The appropriate level of safety stock is typically determined by
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choosing the level of safety stock that assures a given service level
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Extra units that are held in inventory to reduce stockouts are called
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safety stock
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Which of the following types of inventory describes inventory that has been purchased but not processed?
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Raw material inventory
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Cycle counting
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is a process by which inventory records are verified
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What is a system for ordering items that have little or no value at the end of a sales period?
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Single-period inventory model
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Inventory control models assume that demand for an item is
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either independent or dependent on the demand for other items
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A single period inventory model is not applicable for
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furniture
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In the single period inventory model, the overage cost is
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cost per unit-salvage value per unit
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Policies based on ABC analysis might include investing
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more in supplier development for A items
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With a probabilistic model, increasing the service level
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will increase the cost of the inventory policy
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Which of the following does not belong to ordering costs?
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Interest payments
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One use of inventory is
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to provide a hedge against inflation
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Inventory record accuracy would be decreased by
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increasing stockroom accessibility
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The objective of inventory management is to
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strike a balance between inventory investment and customer service
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Which of the following does not belong to holding costs?
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Order processing
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The creation of a unique advantage over competitors is referred as
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competitive advantage
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Competing on cost is
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achieving maximum value as perceived by the customer
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A large percentage of the revenue of most firms is spent on which function?
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Operations
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The creation of goods and services is referred to as
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production
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Competition in the 21 century is no longer between companies; it is between
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supply chains
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Which appears to provide the best opportunity for increases in productivity?
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Management
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The capital investments each year in the US usually
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increases
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Productivity increases when
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inputs decrease while outputs remain the same
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Which of the following is not one of the three strategic approaches to competitive advantage?
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Innovation
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What is the goal for mass customization?
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The goal is to produce customized products, whenever and wherever needed
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The person who believed that management must do more to improve the work environment and processes so that quality can be improved was
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W. Edwards Deming
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The person who introduced standardized, interchangeable parts was
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Eli Whitney
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Which of the following activities at an airline is not an operations activity?
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Sales
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The ratio of all resources to the goods and services produced referred as
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multifactor productivity
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Competing on differentiation is
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concerned with uniqueness
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The service sector constitutes what percentage of employment in the US?
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Between 80 and 90%
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A set of skills, talents, and capabilities in which a firm is particularly strong is referred to as
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core competencies
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Which of the following trends is not part of the exciting OM challenges currently facing operations managers?
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Local focus
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SWOT analysis refers to
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strengths, opportunities, weaknesses, and threats
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Which of these is not one of the 10 strategic OM decisions?
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Marketing
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Which of these is not one of the basic functions of the management process?
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Inspecting
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Which of the following is not considered to be a stakeholder?
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Competitors
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Which of the following tasks would not typically represent an operations management activity at Hard Rock Café?
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Filing a tax return
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A strategy is
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an action plan to achieve a mission
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Which of the following is not considered to be one of the three primary functions that all organizations preform?
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Research and development
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Which of the following is not one of the factors that fosters specialization and worldwide supply chains?
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marketing
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Which of the following is not one of the 10 strategic OM decisions listed in the text?
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Finance/accounting
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Which of the following statements is not true?
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When excess capacity exists, cost can decrease
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Which forecast error measure is probably the easiest to interpret?
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MAPE
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Linear regression is most similar to which of the following?
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The trend projection method of forecasting
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A forecast that addresses the business cycle by predicting planning indicators is
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an economic forecast
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Which forecasting method considers several variables that are related to the variable being predicted?
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Multiple regression
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Which forecasting model is based upon salesperson estimates of expected sales?
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Sales force composite
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A measure of strength of the relationship between two variables is referred to as the
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coefficient of correlation
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Which of the following is the final step in a forecasting system?
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Validate and implement the results
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With regard to a regression based forecast, the standard error of the estimate gives a measure of
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the variability around the regression line
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What is a data pattern that repeats itself after a period of days, weeks, months, or quarters?
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Seasonality
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The goal of CPFR is to
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create significantly more accurate information that can power the supply chain
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A forecasting technique consistently produces a negative tracking signal. This means that
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the forecasting technique consistently over-predicts
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A tracking signal
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is a measurement of how well a forecast is predicting actual values
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The forecasting time horizon that would typically be easiest to predict for would be the
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short range
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Which of the following statements is not true regarding forecasting?
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Forecasting is exclusively an objective prediction
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Which of the following is a reality each company faces regarding its forecasting system?
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Outside factors that we cannot predict or control often impact the forecast
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A forecast that projects a company's sales is
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a demand forecast
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Which one of the following statements is not true about the forecasting in the service sector?
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Detailed forecasts of demand are not needed
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When using exponential smoothing, the smoothing constant
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can be determined using MAD
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Which of the following is not a time series model?
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Linear regression
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Which of the following is a qualitative forecasting method?
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Delphi method
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Which of the following is the first step in a forecasting system?
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Determine the use of the forecast
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Today's forecast equals yesterday's demand is referred to as
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the naïve approach
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Which of the following is a quantitative forecasting method
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exponential smoothing
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CPFR
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is collaborative, planning, forecasting, and replenishment
