POM Set 5

QN1. Which of the following methods best considers intangible costs related to a location decision?

a) Weighted method

b) Location break-even analysis

c) Transportation method

d) Assignment method

e) None of the above

Answer

Ans: c) Service organizations

QN2. What is the major difference in focus between location decisions in the service sector and in the manufacturing sector?

a) There is no difference in focus

b) The focus in manufacturing is revenue maximization, while the focus in service is cost minimization

c) The focus in service is revenue maximization, while the focus in manufacturing is cost minimization

d) The focus in manufacturing is on raw materials, while the focus in service is on labour

Answer

Ans: c) Service organizations

QN3. Service / retail / professional location analysis typically has a:

a) Cost focus

b) Revenue focus

c) Labor focus

d) Environmental focus

Answer

Ans: c) Service organizations

QN4. Efficiency is calculated as:

a) Efficiency= Standard time * Actual time

b) Efficiency= Standard time/ Actual time

c) Efficiency= Actual time/ standard time

d) None of the above

Answer

Ans: c) Service organizations

QN5. The factors involved in location decisions include

a) Foreign exchange

b) Attitudes

c) Labor productivity

d) All of the above

e) None of the above

Answer

Ans: c) Service organizations

QN6. Industrial location analysis typically has a

a) Cost focus

b) Revenue focus

c) Labor focus

d) Environmental focus

Answer

Ans: c) Service organizations

QN7. Hotel chain find regression analysis useful in site location

a)True

b)False

Answer

Ans: c) Service organizations

QN8. The telemarketing industry seeks locations that have

a) Good electronic movement of data

b) Low cost labour

c) Adequate availability of labour

d) All of the above

Answer

Ans: c) Service organizations

QN9. Factors affecting location decisions include

a) Proximity to markets, proximity to suppliers, proximity to athletic facilities

b) Site costs, transportation availability, labour availability

c) Average age of labour force, labour costs, and number of females in college

d) Utility costs, zoning, altitude of city

e) All of the above

Answer

Ans: c) Service organizations

QN10. An aggregate plan for a manufacturing firm includes consideration of:

a) Production rates

b) work-force levels

c) Inventory holdings

Answer

Ans: c) Service organizations

QN11. A service firm’s aggregate plan links the firm’s strategic goals and objectives with detailed operational plans called:

a) Production plan

b) Staffing plan

c) Work-force schedule

d) None of the above

Answer

Ans: c) Service organizations

QN12. Utilization is calculated as:

a) Utilization = Actual hours*Scheduled available hours

b) Utilization = Actual hours/ Scheduled available hours

c) Utilization = Actual hours+Scheduled available hours

d) None of the above

Answer

Ans: c) Service organizations

QN13. Which of the following statements does NOT apply to a production plan?

a) Plans are consistent with company’s strategic goals and objectives

b) Enables the assessment of financial and physical resource needs without excessive detail

c) Serves as a bridge between the strategic and operational plans

d) Provides a view of detailed work-force schedules

Answer

Ans: c) Service organizations

QN14. The time horizon for an aggregate plan is typically:

a) 0 – 3 months

b) 3 -18 months

c) 24 – 60 months

d) None of the above

Answer

Ans: c) Service organizations

QN15. A for-profit service may expect to encounter which of the following sequence of plans?

a) Business plan; staffing plan; work-force schedule

b) Business plan; production plan; work-force schedule

c) Financial plan; staffing plan; master production schedule

d) Annual plan; production plan; master production schedule

Answer

Ans: c) Service organizations

QN16. The operations area input to the aggregate plan includes:

a) Demand forecasts

b) Cost data

c) work-force capacities

d) Product design changes

Answer

Ans: c) Service organizations

QN17. Aggressive alternatives for coping with demand requirements include:

a) Anticipation inventory

b) Creative pricing

c) Employee hiring and layoffs

d) Use of subcontractors

Answer

Ans: c) Service organizations

QN18. A reactive strategy that is sometimes called the capacity strategy may be characterized as:

a) Chase #1: vary work-force level to match demand

b) Chase #2: vary output rate to match demand

c) Level #1: constant work-force level

d) Level #2: constant output rate

Answer

Ans: c) Service organizations

QN19. Planned capacity is:

a) Planned capacity = Demonstrated capacity * Efficiency * Utilization factor

b) Planned capacity = Designed capacity * Efficiency / Utilization factor

c) Planned capacity = Designed capacity * Efficiency * Utilization factor

d) None of the above

Answer

Ans: c) Service organizations

QN20. The aggregate planning strategy that is most likely to impact the productivity of manufacturing workers, adversely, is:

a) Hiring of temporary workers

b) Use of overtime

c) Layoff of workers

d) Building anticipation inventory

Answer

Ans: c) Service organizations

QN21. A linear programming model CANNOT be used when which of the following are true?

a) An optimal production plan is desired

b) The values of decision variables are fractional

c) A set of linear constraints may be defined

d) Cross product relationships exist between two or more decision variables

Answer

Ans: c) Service organizations

QN22. Basic element of operations Management is:

a) Customer demand

b) Operating system/Process

c) Process capacity

d) All of the above

Answer

Ans: c) Service organizations

QN23. The transportation method may be used to determine the costs of alternative strategies for anticipation inventory when which of the following data are available?

a) work-force capacity per planning period

b) Aggregate demand per planning period

c) Beginning inventory

d) All of the above

Answer

Ans: c) Service organizations

QN24. Which of the following statements are true about anticipation inventory?

a) Inventory increases during periods of light demand

b) Use of anticipation inventory is a reactive alternative to arrive at an acceptable aggregate plan

c) Increase in anticipation inventory leads to increases in pipeline inventory

d) Both a and b

Answer

Ans: c) Service organizations

QN25. When following a utilization strategy, which alternative relies on external sources of production?

a) Overtime/undertime

b) Subcontracting

c) Back orders

d) Stock outs

Answer

Ans: c) Service organizations

QN26. A major department store initiates a business plan that gets translated into an operational plan called a

a) Production plan

b) Staffing plan

c) Master production schedule

d) Work-force schedule

Answer

Ans: c) Service organizations

QN27. An appliance manufacturer initiates a business plan that gets translated into an operational plan called a

a) Production plan

b) Staffing plan

c) Master production schedule

d) Work-force schedule

Answer

Ans: c) Service organizations

QN28. Which one is not a factor for make or buy decisions:

a) Cost

b) Quality

c) Labor

d) Plant location

Answer

Ans: c) Service organizations

QN29. Which one is correct?

a) Designed capacity > Planned capacity > Demonstrated capacity

b) Designed capacity > Demonstrated capacity > Planned capacity

c) Designed capacity = Demonstrated capacity > Planned capacity

d) All of the above

Answer

Ans: c) Service organizations

QN30. Plant Productivity is:

a) Productivity = Inputs/Outputs

b) Productivity = lnputs*Outputs

c) Productivity = Outputs//lnputs

d) None of the above

Answer

Ans: c) Service organizations

QN31. A service encounter includes

a) Face-to-face interaction

b) Customers and a building

c) Customers and advertising

d) All of the above

Answer

Ans: c) Service organizations

QN32. Which function typically employs more people than any other functional area?

a) Information Systems

b) Finance

c) Operations

d) Marketing

Answer

Ans: c) Service organizations

QN33. The inputs to a transformation process include all of the following except

a) Materials

b) People

c) Assembly

d) Information

Answer

Ans: c) Service organizations

QN34. An assembly line is an example of

a) A product layout

b) A process layout

c) A fixed position layout

d) An intermittent organization

Answer

Ans: c) Service organizations

QN35. Which of the following characteristics is most typical of a continuous manufacturing organization?

a) The firm manufactures customized product.

b) The firm has a low volume of production

c) The firm has a relatively low unit cost of production

d) The firm creates many different products with many different characteristics

Answer

Ans: c) Service organizations

QN36. Which type of processing system tends to produce the most product variety?

a) Assembly

b) Job shop

c) Batch

d) Continuou

Answer

Ans: c) Service organizations

QN37. Buying on the basis of price alone risks problems in each of the following categories except

a) Capacity

b) Quality

c) Quantity

d) Supplier

Answer

Ans: c) Service organizations

QN38. Which one is not a factor for make or buy decisions:

a) Cost

b) Quality

c) Labor

d) Plant location

Answer

Ans: c) Service organizations

QN39. JITisa

a) Push system

b) Pull system

c) Both

d) None of these

Answer

Ans: c) Service organizations

QN40. The word management in quality assurance describes many different functions, encompassing a policy management

a) HRM, Safety control

b) Component control & management of other resources

c) None of the above

Answer

Ans: c) Service organizations