Question 1

Operations management becomes a(n) ________ when companies work closely together to design, produce, and ship products to customers.

Accepted Answer

A)  open operation 
B)  closed operation 
C)  interfirm process 
D)  conjoined process 
A)  open operation 
B)  closed operation 
C)  interfirm process 
D)  conjoined process

Question 2

Modular facilities layouts consist of

Accepted Answer

A)  teams of workers who work together on a complex assembly. 
B)  lines of workers who do a small series of tasks and then pass along the product through the line to the next worker. 
C)  virtual companies and their supplier relationships. 
D)  workers who have a model in front of them that they try to replicate several times. 
A)  teams of workers who work together on a complex assembly. 
B)  lines of workers who do a small series of tasks and then pass along the product through the line to the next worker. 
C)  virtual companies and their supplier relationships. 
D)  workers who have a model in front of them that they try to replicate several times.

Question 3

In order to schedule deliveries, Minimotors's suppliers need detailed information about when parts are needed. Minimotors will purchase a computer application that will link its operation to sales forecasts to make sure needed parts and supplies are available at the right time to meet customer demands. This planning system is known as

Accepted Answer

A)  materials requirement planning (MRP). 
B)  program evaluation and review technique (PERT). 
C)  minimum daily requirements scheduling (MDRS). 
D)  sales-based requirements forecasting (SBRF). 
A)  materials requirement planning (MRP). 
B)  program evaluation and review technique (PERT). 
C)  minimum daily requirements scheduling (MDRS). 
D)  sales-based requirements forecasting (SBRF).

Question 4

Which of the following is an important part of operations management?

Accepted Answer

A)  determining the best means of financing the firm's operations 
B)  developing the best advertising strategy to promote a firm's products 
C)  deciding whether to pay a dividend to the firm's stockholders 
D)  choosing the best location for a firm's facilities 
A)  determining the best means of financing the firm's operations 
B)  developing the best advertising strategy to promote a firm's products 
C)  deciding whether to pay a dividend to the firm's stockholders 
D)  choosing the best location for a firm's facilities

Question 5

General Automotive currently uses an ERP system to manage all of its production operations and coordinate them with the other operations of the company. The company also wants to implement a just-in-time (JIT) inventory system. Unfortunately for General Automotive, ERP is incompatible with JIT, so if it adopts the new inventory system it will have to abandon ERP.

Accepted Answer

A) True 
 B)False

Question 6

The significance of the critical path on a PERT chart is that it identifies the least costly method of producing a given product.

Accepted Answer

A) True 
 B)False

Question 7

With the ________ inventory control system, producers hold only the amount of materials and parts that they need for a short period of time, sometimes just a few hours.

Accepted Answer

A)  ABC 
B)  first-in, first-out (FIFO) 
C)  just-in-time (JIT) 
D)  maximum 
A)  ABC 
B)  first-in, first-out (FIFO) 
C)  just-in-time (JIT) 
D)  maximum

Question 8

So far, the high cost of CAD/CAM techniques has limited their use to large, expensive manufactured goods such as automobiles.

Accepted Answer

A) True 
 B)False

Question 9

In recent years, operations management has become more focused on providing services, because that is where the growth and profit potential is greatest.

Accepted Answer

A) True 
 B)False

Question 10

A benefit of CAD is

Accepted Answer

A)  it basically eliminates the need for human intervention. 
B)  it saves on materials costs. 
C)  it permits customization without a significant increase in price. 
D)  it produces a higher quality product, which allows the manufacturer to charge more. 
A)  it basically eliminates the need for human intervention. 
B)  it saves on materials costs. 
C)  it permits customization without a significant increase in price. 
D)  it produces a higher quality product, which allows the manufacturer to charge more.

Question 11

Online companies have helped businesses find the best supplies at the best prices.

Accepted Answer

A) True 
 B)False

Question 12

How are MRP and ERP similar? How do they differ?

Accepted Answer

Materials requirement planning (MRP) and

Question 13

In a just-in-time inventory system, the producer holds large quantities of the materials and components used in the production process in its inventory to ensure that it always has enough on hand.

Accepted Answer

A) True 
 B)False

Question 14

________ standards are concerned with the best practices for managing an organization's environmental impacts.

Accepted Answer

A)  EPA 2001 
B)  ISO 14001 
C)  Eurogreen 701 
D)  Enviro 2001 
A)  EPA 2001 
B)  ISO 14001 
C)  Eurogreen 701 
D)  Enviro 2001

Question 15

The higher productivity of U.S. plants is due to technological improvements.

Accepted Answer

A) True 
 B)False

Question 16

Operations management in service industries is about creating a good experience for the customer.

Accepted Answer

A) True 
 B)False

Question 17

Production creates

Accepted Answer

A)  time utility. 
B)  possession utility. 
C)  form utility. 
D)  marginal utility. 
A)  time utility. 
B)  possession utility. 
C)  form utility. 
D)  marginal utility.

Question 18

Maintaining ________ involves producing what the customer wants while reducing errors before and after delivery to the customer.

Accepted Answer

A)  manufacturing control 
B)  allocative efficiency 
C)  CAD/CAM 
D)  quality 
A)  manufacturing control 
B)  allocative efficiency 
C)  CAD/CAM 
D)  quality

Question 19

________ uses computers to help design products.

Accepted Answer

A)  PERT 
B)  QPC 
C)  DPA 
D)  CAD 
A)  PERT 
B)  QPC 
C)  DPA 
D)  CAD

Question 20

Companies that employ lean manufacturing and flexible manufacturing produce better quality products, but have costlier production lines.

Accepted Answer

A) True 
 B)False

Exam 9: Production and Operations Management

Operations management becomes a(n) ________ when companies work closely together to design, produce, and ship products to customers.

Modular facilities layouts consist of

Which of the following is an important part of operations management?

The significance of the critical path on a PERT chart is that it identifies the least costly method of producing a given product.

With the ________ inventory control system, producers hold only the amount of materials and parts that they need for a short period of time, sometimes just a few hours.

So far, the high cost of CAD/CAM techniques has limited their use to large, expensive manufactured goods such as automobiles.

In recent years, operations management has become more focused on providing services, because that is where the growth and profit potential is greatest.

A benefit of CAD is

Online companies have helped businesses find the best supplies at the best prices.

How are MRP and ERP similar? How do they differ?

In a just-in-time inventory system, the producer holds large quantities of the materials and components used in the production process in its inventory to ensure that it always has enough on hand.

________ standards are concerned with the best practices for managing an organization's environmental impacts.

The higher productivity of U.S. plants is due to technological improvements.

Operations management in service industries is about creating a good experience for the customer.

Production creates

Maintaining ________ involves producing what the customer wants while reducing errors before and after delivery to the customer.

________ uses computers to help design products.

Companies that employ lean manufacturing and flexible manufacturing produce better quality products, but have costlier production lines.

Taking Risks and Making Profits Within the Dynamic Business Environment

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Appendix: Working Within the Legal Environment

Appendix: Using Technology to Manage Information

Appendix: Managing Risk

Appendix: Managing Personal Finances

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