MULTI-CHOICE QUESTIONS

# Productivity can be improved by:

A. increasing inputs while holding outputs steady

B. decreasing outputs while holding inputs steady

C. increasing inputs and outputs in the same proportion

D. decreasing inputs while holding outputs steady.

E. none of the above

# Three commonly used productivity variables are:

A. quality, external elements, and precise units of measure

B. labor, capital, and management.

C. technology, raw materials, and labor

D. education, diet, and social overhead

E. quality, efficiency, and low cost

# Which of the following product development strategies has the highest product
development risk?

A. acquiring the developer

B. alliances

C. joint ventures

D. new internally developed products.

E. purchasing technology
# A restaurant kitchen contains a wall poster that shows, for each sandwich on the
menu, a sketch of the ingredients and how they are arranged to make the sandwich.
This is an example of a(n):

A. assembly drawing.

B. route sheet

C. bill of material

D. work order

E. assembly chart

# Arnold Palmer Hospital uses which focus?

A. process.

B. repetitive

C. product

D. mass customization

E. A and D

# Computer-integrated manufacturing (CIM) includes manufacturing systems that

have:

A. computer-aided design, a flexible manufacturing system, inventory control,

warehousing and shipping integrated.

B. transaction processing, management information systems, and decision support

systems integrated

C. automated guided vehicles, robots, and process control integrated

D. robots, automated guided vehicles, and transfer equipment integrated

E. all of their computers integrated with the marketing department

# Workspace can inspire informal and productive encounters if it balances what
three physical and social aspects?

A. proximity, privacy, and persuasion

B. privacy, persuasion, and permission

C. proximity, privacy, and permission.

D. proximity, persuasion, and permission

E. proximity, persuasion, and passion

# The main goal of retail layout is:

A. minimizing material handling cost

B. minimizing customer confusion regarding location of items

C. minimizing storage costs

D. minimizing space required

E. maximizing profitability per square foot of floor space.

# Which of the following is a disadvantage of product-oriented layout?

A. There is a lack of flexibility necessary for handling a variety of products

B. High volume is required because of the large investment needed to establish the
process

C. Work stoppage at any one point can tie up the whole operation

D. There is a lack of flexibility necessary for handling a variety of production rates

E. All of the above are disadvantages of product-oriented layouts.

# Activity charts help analyze:

A. movement of people or material

B. utilization of an operator and machine.

C. body movements

D. activities that can cause injuries

E. unnecessary micro-motions

# Which of the following is not a method used to set labor standards?

A. historical experience

B. time studies

C. predetermined time standards

D. work sampling

E. government laws and regulations.

# The tally sheet data from a work sampling study provides information regarding:

A. the number of wasted motions

B. the level of difficulty in a motion

C. the percent of time spent on various tasks.

D. the quality of the work environment

E. the number of micro-motions involved

# A carpet manufacturer has delivered carpet directly to the end consumer rather
than to the carpet dealer. The carpet manufacturer is practicing which of the
following?

A. postponement
B. cross-docking

C. channel assembly

D. drop shipping.

E. float reduction

# Hewlett-Packard delays customization of its laser printers as long as possible.

This is an example of which of the following?

A. vendor-managed inventory

B. standardization

C. backward integration

D. postponement.

E. timely customization

# What are the four stages of supplier selection?

A. supplier evaluation, supplier development, negotiations, and contracting.

B. supplier evaluation, negotiations, supplier acquisition, and supplier development

C. introduction, growth, maturity, and decline

D. supplier evaluation, supplier development, negotiations, and centralized purchasing

E. negotiations, contracting, centralized purchasing, and E-procurement

# All EXCEPT which of the following statements about ABC analysis are true?

A. In ABC analysis, inventory may be categorized by measures other than dollar volume

B. ABC analysis categorizes on-hand inventory into three groups based on annual dollar
volume

C. ABC analysis is an application of the Pareto principle

D. ABC analysis suggests that all items require the same high degree of control.

E. ABC analysis suggests that there are the critical few and the trivial many inventory
items

# Which category of inventory holding costs has a much higher percentage than
average for rapid-change industries such as PCs and cell phones?

A. housing costs

B. material handling costs

C. labor cost

D. investment costs

E. pilferage, scrap, and obsolescence.

# If demand is not uniform and constant, then stock-out risks can be controlled by:

A. increasing the EOQ

B. spreading annual demand over more frequent, but smaller, orders

C. raising the selling price to reduce demand

D. adding safety stock.

E. reducing the reorder point

# What directly results from disaggregation of an aggregate plan?

A. a master production schedule.

B. priority scheduling

C. a transportation matrix

D. a capacity-demand matrix

E. detailed work schedules

# Which of the following aggregate planning strategies is a capacity option?

A. influencing demand by changing price

B. counter-seasonal product mixing

C. influencing demand by extending lead times

D. changing inventory levels.

E. influencing demand by back ordering

# Which of the following aggregate planning methods does not work if hiring and
layoffs are possible?

A. the linear decision rule

B. simulation

C. the management coefficients model

D. the transportation method.

E. graphical methods

# A grill assembly takes 20 washers. Instead of listing these washers separately, they
are grouped into a single kit for production. How is the bill of material for the
washers classified?

A. phantom bill

B. component bill

C. modular bill

D. low-level bill

E. planning bill.

# Which of the following is TRUE regarding the POQ lot-sizing method?

A. Each POQ interval is recalculated at the time of the order release

B. Each order quantity and POQ interval are recalculated at the time of the order release

C. The POQ interval and all order quantities remain fixed throughout the planning
horizon

D. Each order quantity is recalculated at the time of the order release.

E. POQ lot sizes are always at least as large as the EOQ lot sizes would be

# The short-term scheduling activity called "loading":

A. assigns dates to specific jobs or operations steps

B. specifies the order in which jobs should be done at each center

C. assigns jobs to work centers.

D. assigns workers to jobs

E. assigns workers to machines

# Which of the following is a limitation of rules-based dispatching systems?

A. Rules need to be revised to adjust to changes in orders, product mix, and so forth

B. Rules may not recognize idle resources

C. Rules may not recognize bottleneck resources

D. Rules may not be able to prioritize two jobs with identical due dates

E. All of the above are limitations.

# Which of the following is a similarity between goods and services?

A. mass production

B. consistency
C. automation

D. Both have quality standards.

E. Both can usually be kept in inventory

# Which of the following is NOT true when explaining why productivity tends to be
lower in the service sector than in the manufacturing sector?

A. Services are typically labor-intensive

B. Services are often difficult to evaluate for quality

C. Services are often an intellectual task performed by professionals

D. Services are difficult to automate

E. Service operations are typically capital intensive.

# A graphic technique for defining the relationship between customer desires and
product (or service) is:

A. product lifecycle management

B. the house of quality.

C. the moment of truth

D. the assembly drawing

E. modular design

# Which of the following products is likely to be assembled on a repetitive process

line?

A. automobiles.

B. custom personal computers

C. custom cakes
D. steel

E. beer

# The use of information technology to monitor and control a physical process is

known as:

A. process control.

B. computer-aided design

C. information numeric control

D. numeric control

E. IT oversight

# The main issue in designing process-oriented layouts concerns the relative

positioning of:

A. safety devices

B. departments or work centers.

C. raw materials

D. entrances, loading docks, etc

E. supervisors to their employees

# The difference between job enrichment and job enlargement is that:

A. enlarged jobs involve vertical expansion, while enriched jobs involve horizontal
expansion

B. enriched jobs enable an employee to do a number of boring jobs instead of just one

C. job enlargement is more psychologically satisfying than job enrichment

D. job enrichment is suitable for all employees, whereas job enlargement is not
E. enriched jobs involve vertical expansion, while enlarged jobs involve horizontal
expansion.

# What is a technique for estimating the percent of time a worker spends on various
tasks?

A. stopwatch time study

B. simultaneous motion study

C. work sampling.

D. standard elemental (historical) times

E. predetermined (published) time standards

# A fried chicken fast-food chain that acquired feed mills and poultry farms has
performed which of the following?

A. horizontal integration

B. forward integration

C. backward integration.

D. current transformation

E. job expansion

# A furniture maker has delivered a dining set directly to the end consumer rather
than to the furniture store. The furniture maker is practicing which of the
following?

A. postponement

B. drop shipping.

C. channel assembly

D. passing the buck

E. float reduction

# Which of the following is NOT true about reverse logistics as compared to

forward logistics?

A. Inventory management is not consistent

B. Distribution costs are less directly visible

C. Pricing is dependent upon many factors

D. Speed is often very important.

E. Forecasting is more uncertain

# The two most basic inventory questions answered by the typical inventory model
are:

A. timing of orders and cost of orders

B. order quantity and cost of orders

C. timing of orders and order quantity.

D. order quantity and service level

E. ordering cost and carrying cost

# When quantity discounts are allowed, the cost-minimizing order quantity:

A. is always an EOQ quantity

B. minimizes the sum of holding and ordering costs

C. minimizes the unit purchase price

D. may be a quantity below that at which one qualifies for that price

E. minimizes the sum of holding, ordering, and product costs.

# Aggregate planning would entail which of the following production aspects at
BMW for a 12-month period?

A. number of cars with a hi-fi stereo system to produce

B. number of two-door vs. four-door cars to produce

C. number of green cars to produce

D. total number of cars to produce.

E. B, C, and D

# Which of the following is NOT consistent with level scheduling?

A. varying the use of subcontracting

B. finding alternative work for employees during low-demand periods

C. using built-up inventory to meet demand requirements

D. varying production levels and/or work force to meet demand requirements.

E. All of the above are inconsistent with the pure level strategy.

# Dependent demand and independent demand items differ in that:

A. for any product, all components are dependent-demand items

B. the need for independent-demand items is forecast

C. the need for dependent-demand items is calculated

D. All of the above are true.

E. None of the above is true

# What lot-sizing technique is generally preferred when inventory holding costs are
extremely high?

A. lot-for-lot.
B. EOQ

C. POQ

D. the Wagner-Whitin algorithm

E. All of the above are appropriate for the situation

# For the lot-sizing technique known as lot-for-lot to be appropriate:

A. future demand should be known for several weeks

B. setup cost should be relatively small.

C. annual volume should be rather low

D. item unit cost should be relatively small

E. the independent demand rate should be very stable

# Which of the following statements regarding scheduling at Alaska Airlines is

FALSE?

A. Flying into Alaska complicates scheduling

B. Schedule changes at one airport have a ripple effect that may have impacts in many
others

C. Alaska Airlines' high-tech computer and communications system is located in Seattle

D. Alaska Airlines' rapid rescheduling uses mathematical scheduling models

E. Alaska Airlines' rapid rescheduling promotes air safety and limits traveler
inconvenience, but has not resulted in money savings for Alaska Airlines.

# Which of the following is NOT required to be known in order to schedule

process-focused facilities?

A. the sequence of work

B. which workers are assigned to each work center.

C. the time required for each item

D. the capacity of each work center

E. the availability of each work center

# When a set of jobs must pass through two workstations whose sequence is fixed,
________ is the sequencing rule most commonly applied.

A. critical ratio

B. earliest due date

C. first come, first served

D. slack time remaining

E. Johnson's rule.

# 3-D printing has proven to be particularly advantageous for:

A. prototype development and custom products.

B. modular design

C. quality function deployment

D. robust design

E. computer-aided design

# A system using an automated work cell controlled by electronic signals from a

common centralized computer facility is called:

A. an adaptive control system

B. robotics

C. a flexible manufacturing system.

D. an automatic guided vehicle (AGV) system

E. a manufacturing cell

# The major problem addressed by the warehouse layout strategy is:

A. minimizing difficulties caused by material flow varying with each product

B. requiring frequent close contact between forklift drivers and item pickers

C. addressing trade-offs between space and material handling.

D. balancing product flow from one work station to the next

E. locating the docks near a convenient access point to the closest highway

# The disadvantages of process-oriented layout come from:

A. the use of special-purpose equipment

B. machine maintenance, which tends to seriously degrade the capacity of the entire
system

C. the use of specialized material handling equipment

D. the need for stable demand

E. the flexibility of general-purpose equipment.

# Which of the following statements describes job rotation?

A. The job contains a larger number of similar tasks

B. The job includes some planning and control necessary for job accomplishment

C. The operator works on different shifts on a regular basis

D. The operator's schedule is flexible

E. The operator is allowed to move, for example, from one type of CNC machine to
another.

# Normal time for a stopwatch study is equal to which of the following?

A. Average observed time × Performance rating factor.

B. Average observed time + Performance rating factor

C. Average observed time / Performance rating factor

D. Average observed time - Performance rating factor

E. Performance rating factor / Average observed time

# A disadvantage of work sampling is that:

A. it tends to be less accurate, particularly when task times are short.

B. it observes several workers simultaneously

C. it is more expensive than time-study methods

D. it is more intrusive than time-study methods and therefore generates more complaints

E. All of the above are disadvantages of work sampling

# Which of the following statements does NOT accurately explain what occurs when
the number of facilities in a distribution network increases?

A. response time decreases

B. profit first increases, then decreases

C. total logistics costs first decrease, then increase

D. inventory costs increase

E. response time first decreases, then increases.

# Which of the following statements about quantity discounts is FALSE?

A. The cost-minimizing solution may or may not be where annual holding costs equal
annual ordering costs
B. In inventory management, item cost becomes relevant to order quantity decisions when
a quantity discount is available

C. If carrying costs are expressed as a percentage of value, EOQ is larger at each lower
price in the discount schedule

D. The larger the annual demand, the less attractive a discount schedule will be.

E. The smaller the ordering cost, the less attractive a discount schedule will be

# Which of the following should be higher in P systems than Q systems?

A. lead time

B. demand

C. order size

D. order spacing

E. safety stock.

# An aggregate plan satisfies forecast demand by potentially adjusting all EXCEPT

which of the following?

A. production rates

B. labor levels

C. inventory levels

D. overtime work

E. facility capacity.

# Which of the following is NOT an advantage of level scheduling?

A. stable employment

B. lower absenteeism
C. matching production exactly with sales.

D. lower turnover

E. more employee commitment

# Which of the following is NOT a key benefit of MRP?

A. increased quality.

B. better response to customer orders

C. faster response to market changes

D. improved utilization of facilities and labor

E. reduced inventory levels

# Which of the following statements regarding lot-sizing is TRUE?

A. EOQ principles should be followed whenever economical

B. Too much concern with lot-sizing results in false accuracy.

C. Lot-for-lot cannot be modified for scrap allowance or process constraints

D. The Wagner-Whitin algorithm simplifies lot size calculations

E. All of the above are true

CASE STUDY
Question: How are the 10 decisions of OM different when applied by the operations
manager of a production process such as Frito-Lay?

Solution

10 decisions of OM FRITO LAY

Product design Innovation in product design

Strict evaluation before launching a new product

Quality Many quality inspection points in each specific process

such as peeling, packaging, and shipping
Mass production
Process & capacity Green production
design
Plants were located near raw material suppliers
Location

Layout Reduce movement time of workers

HR High rewards for workers

Efficient trainings

SCM Focus on raw material suppliers

Inventory The inventory turnover rate for Frito Lay is 200 times
per-year. This allows for better flow of fresh goods

Schedule Run and operate 24/7

High intense production

Maintenance Rapid production requires good maintenance

Question: How are the 10 decisions of OM different when applied by the operations
manager of a production process such as Hard Rock Cafe.
Solution

10 decision of OM HARD ROCK

Product design Unique menu combining local flavors and signature

items, enhancing the dining experience with music and
memorabilia.

Quality High standards for food and service, using fresh

ingredients and thorough staff training.

Process & capacity design Efficient customer flow management to handle peak
times effectively.

Location Strategically placed in high-traffic tourist areas for

visibility.

Layout Inviting design that facilitates smooth movement for

customers and staff.

HR Passionate staff with strong training in customer service

and brand culture.

SCM Local supplier relationships for fresh

Inventory Careful management to balance freshness and minimize

waste.

Schedule Flexible schedules to meet peak demand.

Maintenance Regular upkeep of equipment and dining areas for safety

and efficiency.

Question: How are the 10 decisions of OM different when applied by the operations
manager of a production process such as Regal Marine
Solution

10 decision of OM Regal Marine

Product design Innovative boat designs focusing on performance and

aesthetics.

Quality Strict quality control to ensure durability and safety.

Process & capacity design Efficient production processes with flexible capacity to
meet demand.

Location Manufacturing near suppliers and markets to reduce

costs.

Layout Optimized workflow layout to enhance collaboration and

reduce waste.

HR Skilled labor with ongoing training in manufacturing

techniques.

SCM Strong supplier relationships for timely delivery of

materials.

Inventory Just-in-time inventory management to minimize excess

stock.

Schedule Production schedules aligned with demand forecasts.

Maintenance Regular equipment maintenance to ensure efficiency and

prevent downtime.

Question: How are the 10 decisions of OM different when applied by the operations
manager of a production process such as Harley-Davidson

Solution
10 decision of OM Harley-Davidson

Product design Iconic motorcycle designs emphasizing style and

customization.

Quality High standards through rigorous testing and

craftsmanship.

Process & capacity design Lean manufacturing for efficiency and flexibility in
customization.

Location Manufacturing in the U.S. to enhance brand identity.

Layout Efficient workflows supporting customized motorcycle

assembly.

HR Skilled labor with training in assembly and quality

standards.

SCM Strong supplier relationships for quality parts and timely

delivery.

Inventory Careful management using just-in-time practices to meet

demand.

Schedule Flexible production schedules for custom orders and

seasonal demand.

Maintenance Regular equipment maintenance to ensure efficiency and

reduce downtime.

Question: How are the 10 decisions of OM different when applied by the operations
manager of a production process such as FedEx

Solution

10 decision of OM FedEx
Product design Offers diverse shipping services (overnight, ground)
tailored for speed and reliability.

Quality Maintains high service quality through performance

metrics and customer feedback.

Process & capacity design Optimizes logistics and technology for efficient sorting
and delivery.

Location Strategically places hubs near major markets to reduce

transit times.

Layout Designs facilities for efficient package sorting and

handling.

HR Invests in employee training to enhance service quality.

SCM Builds strong partnerships for smooth logistics.

Inventory Manages shipping supplies and vehicles for operational

readiness.

Schedule Implements precise scheduling for pickups and

deliveries.

Maintenance Prioritizes regular maintenance of vehicles and

equipment for reliability.

Question: How are the 10 decisions of OM different when applied by the operations
manager of a production process such as McDonald's

Solution
10 decision of OM McDonald's

Product design Standardized menu with customization options

Quality Consistent quality control for food safety and taste.

Process & capacity design Streamlined kitchen processes for efficiency.

Location Restaurants in high-traffic areas for visibility.

Layout Optimized layout for quick service and customer flow.

HR Training programs to maintain service standards

SCM Strong supplier relationships for quality ingredients.

Inventory Just-in-time management to reduce waste.

Schedule Efficient staff scheduling for peak demand

Maintenance Regular maintenance of equipment for safety and

efficiency.

Question: How are the 10 decisions of OM different when applied by the operations
manager of a production process such as Rusty Wallace's N A S C A R Racing Team

Solution

10 decision of OM Rusty Wallace's N A S C A R Racing Team

Product design Custom race cars optimized for speed and safety.

Quality Rigorous testing and quality control of car components.

Process & capacity design Efficient assembly and pit stop processes.
Location Operations near key racing venues for logistics.

Layout Optimized workshop layout for efficient workflow.

HR Skilled team with ongoing training for performance.

SCM Strong supplier relationships for timely parts delivery.

Inventory Managed inventory of parts and tools for readiness.

Schedule Detailed scheduling for race prep and maintenance.

Maintenance Regular inspections to ensure peak performance.

Question: How are the 10 decisions of OM different when applied by the operations
manager of a production process such as Amazon.com

Solution

10 decision of OM Amazon.com

Product design Wide range of user-friendly products.

Quality Strict quality control and customer feedback systems.

Process & capacity design Automated fulfillment centers for fast order processing.

Location Fulfillment centers near major markets for quick shipping.

Layout Optimized warehouse design for efficient picking and

packing.
HR Training programs to boost employee skills and
productivity.

SCM Strong supplier partnerships and data analytics for

efficiency.

Inventory Advanced inventory management systems for optimal

stock levels.

Schedule Data-driven scheduling for workforce and logistics

management.

Maintenance Regular maintenance of technology and equipment for

efficiency.

Question: How are the 10 decisions of OM different when applied by the operations
manager of a production process such as Wheeled Coach

Solution

10 decision of OM Wheeled Coach

Product design Custom emergency vehicles tailored to client needs.

Quality High-quality materials and rigorous testing for reliability.

Process & capacity design Streamlined assembly for efficient, customizable

production.

Location Manufacturing facilities optimized for logistics and skilled

labor access.

Layout Efficient factory layout to enhance workflow.

HR Skilled workforce with ongoing training for safety and

craftsmanship.
SCM Strong supplier relationships for quality components.

Inventory Managed parts inventory to ensure availability without

excess.

Schedule Detailed production schedules to meet deadlines.

Maintenance Regular equipment maintenance for operational

efficiency

Question: How are the 10 decisions of OM different when applied by the operations
manager of a production process such as Alaska Airlines

Solution

10 decision of OM Alaska Airlines

Product design Focus on customer experience with comfortable seating

and in-flight services.

Quality Emphasis on safety, reliability, and customer service.

Process & capacity design Efficient boarding processes to minimize turnaround

times.

Location Strategic hub locations for optimal route connections

Layout Airport terminal designs for smooth passenger flow.

HR Skilled staff hiring and training for excellent service.

SCM Strong partnerships with fuel and maintenance suppliers.

Inventory Management of spare parts to ensure aircraft readiness.

Schedule Data-driven flight and crew scheduling for efficiency.

Maintenance Regular checks to ensure aircraft reliability and safety.

CASE STUDY 3

Question: LAYING OUT ARNOLD PALMER HOSPITAL’S NEW FACILITY,

Identify the many variables that a hospital needs to consider in layout design

Solution

1. Nursing efficiency: How far does a nurse have to travel, in walking time
and distance, to patients, suppliers, break rooms,etc?
2. Security: How to protect patients, especially babies, from being reached by
pp who should not have access to them
3. Privacy, serenity, and quiet: How to provide patients with space that will
help them recover quickly (service-scape)
4. Meal and supply efficiencies: How to deliver meals warm and keep supply
lines full with the best efficiency
5. Space for family. To visit or sleep over
6. Space for growth and capacity expansion.
7. Where to locate service departments (ex: x-ray, pharmacy, laboratories,
financial, management, etc) so they convenient to patients and staff

8. Areas for medical and non-medical staff to be “off-duty”. From

patient/visitor flow
9. New mobile carts (holding both computers and supplies), that go from room
to room, are adding a new dimension to hospital layouts.