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Online MCQ part 1 and 2 for UPES
QN01: EOQ was the contribution of
a) Taylor
b) Gilberth
c) Henry Gantt
d) None of above
QN02: Production to fulfill customer order is a characteristic of
a) Continuous production system
b) Intermittent production system
c) Both a and b
d) None of above
QN03: Just-in-time/SCM purchasing requires the following condition:
a) Many suppliers
b) Short-term contracts
c) Cooperation between purchasing and suppliers
d) Continuous competitive bidding
QN04: Which of the following files tracks work order progress?
a) a progress file
b) a work center master file
c) an item master file
d) a routing file
QN05: The type of processing structure that is used to produce gasoline, chemicals, and steel is known as.
a) Job Shop
b) Batch
c) Assembly Line
d) Continuous Flow
QN06: Among the advantages of cycle counting is that it
a) does not need to be performed for less expensive items
b) does not require the detailed inventory records necessary when annual physical inventory is used
c) does not require highly trained people
d) allows more rapid identification of errors and consequent remedial action than is possible with annual
QN07: Which one of the following denotes QFD?
a) Quality Function Development
b) Quality Foundation Development
c) Quality Foundation Deployment
d) Quality Function Deployment
QN08: The proper quantity of safety stock is typically determined by
a) minimizing an expected stockout cost
b) carrying sufficient safety stock so as to eliminate all stockouts
c) meeting 95% of all demands
d) setting the level of safety stock so that a given stockout risk is not exceeded
QN09: Using the economic order quantity model, which of the following is the total ordering cost of inventory given an annual demand of 36,000 units, a cost per order of $80 and a holding cost per unit per year of $4?
a) 849
b) 1200
c) 1889
d) 2400
QN10: Which of the following corresponds to the predictor variable in simple linear regression?
a) regression coefficient
b) dependent variable
c) independent variable
d) predicted variable
QN11: Carrying out negotiations is a part of
a) Purchase function
b) Maintenance function
c) Stock keeping function
d) None of above
QN12: 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 forecasted
c) the need for dependent-demand items is calculated
d) all of the above are true
QN13: Purchase as a necessary evil is
a) Historical view
b) Modern view
c) Never seen
d) Historical and modern view both
QN14: Which of the following statements is true about the MRP plan when using lot-for-lot ordering?
a) The quantity of gross requirements for a child item is always equal to the quantity of planned order releases for its parent.
b) The quantity of gross requirements for a child item is equal to the quantity of net requirements for its parent(s) multiplied by the number of child items used in the parent assembly.
c) The quantity of gross requirements for a child item is always equal to the quantity of gross requirements for its parent.
d) The quantity and gross requirements for a child item is always equal to the quantity of net requirements for its parent.
QN15: Material requirements plan specify
a) the quantities of the product families that need to be produced
b) the quantity and timing of planned order releases
c) the capacity needed to provide the projected output rate
d) the costs associated with alternative plans
QN16: Which one of the following descriptions best defines the cycle-service level as a measure of customer service?
a) The preferred proportion of annual demand instantaneously filled from stock
b) The number of stockouts tolerated per year
c) The preferred proportion of days in the year when an item is in stock
d) The desired probability of not running out of stock in any one inventory cycle
QN17: Suppose a country’s productivity last year was 84. If this country’s productivity growth rate of 5% is to be maintained, this means that this year’s productivity will have to be _______.
a) 88.2
b) 79.8
c) 82.8
d) 78.9
QN18: Current information on _________ can have a significant impact on forecast accuracy:
a) prices
b) inventory
c) competition
d) all of the above
QN19: Each X requires 2 of component Y; each Y requires 4 of part Z. The lead time for assembly of X is 1 week. The lead time for the manufacture of Y is 1 week. The lead time for the procurement of Z is 6 weeks. The cumulative lead time for X is ~*~ weeks.
a) 48
b) 7
c) 8
d) 10
QN20: Which of the following statements on acceptance sampling is true?
a) Acceptance sampling draws samples from a population of items, tests the sample, and accepts the entire population if the sample is good enough, and rejects it if the sample is poor enough.
b) The sampling plan contains information about the sample size to be drawn and the critical acceptance or rejection numbers for that sample size.
c) The steeper an operating characteristic curve, the better its ability to discriminate between good and bad lots.
d) All of the above are true.
QN21: What lot sizing technique is generally preferred when inventory holding costs are extremely high?
a) lot-for-lot
b) EOQ
c) part-period balancing
d) the Wagner-Whitin algorithm
QN22: In the additive model for seasonality, seasonality is expressed as a ______________ adjustment to the average; in the multiplicative model, seasonality is expressed as a __________ adjustment to the average.
a) quantity, percentage
b) percentage, quantity
c) quantity, quantity
d) percentage, percentage
QN23: If the average number of defects is 9, the lower control limit in a c chart is
a) 0
b) 3
c) 6
d) 8
QN24: Delphi method of forecasting is a technique based on judgement
a) True
b) False
QN25: Productivity tends to be only a very minor factor in an organization’s ability to compete.
a) True
b) False
QN26: Two recent trends in operations management are flexibility and specialization.
a) True
b) False
QN27: AOQL stands for Acceptable overall quality lot
a) True
b) False
QN28: Productivity is directly related to the ability of an organization to compete.
a) True
b) False
QN29: Gravity model is a location selection model based on cost of production
a) True
b) False
QN30: Labour productivity is an example of partial measure of productivity
a) True
b) False
QN31: Standardized parts are interchangeable parts.
a) True
b) False
QN32: Motivation is a result of MBO
a) True
b) False
QN33: If value of input is more than the value of output, it is a value adding process
a) True
b) False
QN34: The T in the model TAF = S+T represents the time dimension (which is usually expressed in weeks or months).
a) True
b) False
QN35: Attachments used for determining dimensions is called CMM
a) True
b) False
QN36: Median refers to the central value
a) True
b) False
QN37: Lead users tend to accelerate diffusion of information through infrastructure, which is labeled as market push.
a) True
b) False
QN38: MAD is equal to the square root of MSE which is why we calculate the easier MSE and then calculate the more difficult MAD.
a) True
b) False
QN39: An example of a strategic operations management decision is the choice of where to locate.
a) True
b) False
QN40: For products in introduction stage of the product life cycle the engineering and R&D likely to be key functions influencing the purchase decision.
a) True
b) False
QN41: Operations managers are responsible for assessing consumer wants and needs and selling and promoting the organization’s goods or services.
a) True
b) False
QN42: Productivity is expressed as:
a) output plus input
b) output minus input
c) output times input
d) output divided by input
QN43: First document for purchase is PO
a) True
b) False
QN44: Productivity is defined as the ratio of input to output.
a) True
b) False
QN45: IS mark is for system quality
a) True
b) False
QN46: The mission of a firm should be designed to support the firm’s overall strategy.
a) True
b) False
QN47: Maria is a pharmaceutical sales representative that calls on hospitals. She is taking on a new territory, and she is trying to learn the internal influences on each hospital’s culture. Then she should consider lead users with respect to internal influences.
a) True
b) False
QN48: Bias is measured by the cumulative sum of forecast errors.
a) True
b) False
QN49: Fatigue is a reason of error in inspection improper sampling
a) True
b) False
QN50: The process improvement technique that sorts the vital few from the trivial many is Pareto analysis.
a) True
b) False
QN51: Special-purpose technology is a common way of offering increased customization in manufacturing or services without taking on additional labor costs.
a) True
b) False
QN52: The use of models will guarantee the best possible decisions.
a) True
b) False
QN53: The principal activity in all production operations is to convert inputs into outputs that satisfy consumer wants.
a) True
b) False
QN54: Forecast for a group of items is more accurate than for a single item
a) True
b) False
QN55: Unbalanced work load is a characteristic of batch production
a) True
b) False
QN56: Quality function deployment seeks to
a) Build high standard of quality in the product
b) Build voice of customer into the design of product
c) Focus on technical attributes in a process which have a bearing on customer satisfaction
d) None of above
QN57: Group Consensus relates to which of the following judgmental forecasting technique?
a) Sales force
b) Consumer surveys
c) Delphi method
d) Executive opinions
QN58: Which of the following is not included as an inventory holding cost?
a) Annualized cost of materials
b) Handling
c) Insurance
d) Pilferage
QN59: Which of the following is considered to be a cause of poor U.S. global competitiveness?
a) the tendency to view labor as a cost factor to be minimized
b) decision-making based on short-term horizons
c) weaknesses in technological practice
d) all of the above
QN60: The organization in India for granting ISO 9000 is
a) BIS
b) DGET
c) DGS&D
d) None of above
QN61: Discrepancy report is used for
a) Shipping
b) Custom clearance
c) Insurance
d) None of above
QN62: An operating characteristics curve shows
a) upper and lower product specifications
b) product quality under different manufacturing conditions
c) how the probability of accepting a lot varies with the population percent defective
d) when product specifications don’t match process control limits
QN63: The concept of cause and effect is used in
a) The concept of cause and effect is used in Quality circles
b) JIT
c) Multi-functional layout
d) All above
QN64: Purchase function needs information from
a) Finance department
b) Stores
c) Quality control departments
d) All above
QN65: A material requirements plan contains information with regard to all of the following except
a) quantities and required delivery dates of all sub-assemblies
b) quantities and required delivery dates of final products
c) the capacity needed to provide the projected output rate
d) inventory on hand for each final product
QN66: What are the two sources of costs in queuing analysis?
a) Arrivals and departures
b) Arrivals and idleness
c) Waiting customers and capacity
d) Equipment breakdowns and departures
QN67: The minimum record accuracy required for successful MRP is approximately
a) lower than 90%
b) 0.9
c) 0.95
d) 0.99
QN68: The latest version of ISO 9000 is
a) 1985
b) 2000
c) 2005
d) 2015
QN69: Sark Incorporated is out of stock for a key item, which has a backorder of 200 units. An open order of 750 units is scheduled for arrival on the following Monday. What is the current inventory position at Sark?
a) Less than or equal to 0 units
b) Greater than 0 but less than or equal to 500 units
c) Greater than 500 but less than or equal to 750 units
d) Greater than 750 units
QN70: In a X-bar chart, the constant used for determining control limits is
a) D4
b) D3
c) A2
d) None of above
QN71: Most operation produce a mixture of both products and services which of the following business is closest to producing ‘pure’ services
a) IT company
b) Counselor /therapist
c) Steel company
d) A restaurant
QN72: Which technique is used in computing seasonal relatives?
a) double smoothing
b) Delphi
c) Mean Squared Error (MSE)
d) centered moving average
QN73: A model is an abstraction of reality.
a) True
b) False
QN74: capacity utilization is an objective of operations management
a) True
b) False
QN75: Moving average method considers all past demands
a) True
b) False
QN76: People from different functional areas of an organization in a DMU will always use the same evaluative criteria.
a) True
b) False
QN77: Environment of uncertainty is a condition in which probability of all possible outcomes is known
a) True
b) False
QN78: Services are intangible in nature
a) True
b) False
QN79: Limited rebuy is the approach used in an organizational buying situation when the purchase is moderately important to the firm or the choice is somewhat complex.
a) True
b) False
QN80: The name Taguchi is associated with robust design.
a) True
b) False
QN81: The philosophy of zero defects is consistent with the commitment to continuous improvement.
a) True
b) False
QN82: Seasonal relatives can be used to de-seasonalize data or incorporate seasonality in a forecast.
a) True
b) False
QN83: Size of site is a factor for territory selection
a) True
b) False
QN84: The greater the degree of customer involvement, the more challenging the design and management of operations.
a) True
b) False
QN85: Forecasts help managers plan both the system itself and provide valuable information for using the system.
a) True
b) False
QN86: A combination of product and process layout is called assembly line
a) True
b) False
QN87: Straight rebuy organizational purchase situation is characterized by low purchase importance, low choice complexity, level of decision-making unit (DMU) at low levels of the organization, a very small DMU, very brief time to decision, and very limited decision search.
a) True
b) False
QN88: Ratio of standard deviation to mean is called skewness
a) True
b) False
QN89: The variation inherent in the process is called chance variation
a) True
b) False
QN90: Payments, warranties, delivery dates, as so forth are examples of a purchase’s terms and conditions.
a) True
b) False
QN91: Exponential smoothing is a method based on time series
a) True
b) False
QN92: The operations manager has primary responsibility for making operations system design decisions, such as system capacity and location of facilities.
a) True
b) False
QN93: A tool for integrating customer requirements with design is called QFD
a) True
b) False
QN94: Kanban cards are used for reduce inventory
a) True
b) False
QN95: Carlos is trying to understand the organizational buyer behavior of firms in his sales territory. Therefore firmographics is an external influence on an organization’s culture that he should examine.
a) True
b) False
QN96: Organizational strategy should be determined without considering the realities of functional area strengths and weaknesses since they can be changed to meet our strategy.
a) True
b) False
QN97: The Uniform Commercial Code specified that a product must be suitable for its intended purpose.
a) True
b) False
QN98: The father of scientific management was Henry Ford.
a) True
b) False
QN99: Payments, warranties, delivery dates, and so forth represent terms and conditions.
a) True
b) False
QN100: Modular design is a form of standardization.
a) True
b) False
QN101: In the principle of minimax regret, equal probability is allocated to all conditions and the alternative with maximum expected value is selected
a) True
b) False
QN102: Measurement of productivity in service is more straightforward than in manufacturing since it is not necessary to take into account the cost of materials.
a) True
b) False
QN103: New task organizational purchase situation is characterized by high purchase importance and complexity, a large and evolving decision-making unit that includes the top of the organization, a long time to decision, extensive information search and analysis techniques, and a dominant strategic focus.
a) True
b) False
QN104: Forecasts for groups of items tend to be less accurate than forecasts for individual items because forecasts for individual items don’t include as many influencing factors.
a) True
b) False
QN105: The EOQ model with quantity discounts attempts to determine
a) what is the lowest amount of inventory necessary to satisfy a certain service level
b) what is the lowest purchasing price
c) whether to use fixed-quantity or fixed period order policy
d) how many units should be ordered
QN106: Production to fulfill customer order is a characteristic of Continuous production system
a) True
b) False
QN107: Which of the following is NOT a reason that companies are depending more on their suppliers?
a) More focus on core competencies
b) Need for more flexibilities
c) Desire to share risks
d) More control over their suppliers
QN108: The trend in organizations is to place the SCM function:
a) Under the manufacturing function
b) Under the finance function
c) Under the engineering function
d) At the same level as the other major functions
QN109: Human relation is a characteristic of
a) Classical management
b) Behavioral management
c) Modelling as management
d) None of above
QN110: The output of a production system is
a) Goods
b) Services
c) Both
d) None of above
QN111: Gilberth is known for his concept of
a) EOQ
b) Work division
c) SPC
d) Motion study
QN112: If two potential suppliers can deliver a part with the same quality and prices, the selection should be based on:
a) Age of the firms
b) A coin flip
c) Outside evaluation
d) The capabilities and flexibilities of the firms
QN113: Orders are processed in the sequence in which they arrive if (the) ~*~ rule sequences the jobs.
a) earliest due date
b) slack time remaining
c) first come, first serve
d) critical ratio
QN114: A defined decision procedure by rule of thumb is called
a) Mathematical model
b) Iconic model
c) Heuristic mode
d) Schematic model
QN115: Flow of raw materials is in lots in
a) Batch production
b) Job production
c) Continuous production
d) None of above
QN116: This is a location selection model based on cost of production
a) Median
b) Gravity
c) Factor point rating
d) CVP analysis
QN117: In job shop (make-to-order) operations, the master production schedule is usually expressed in terms of
a) end-items
b) modules
c) kits
d) customer orders
QN118: The ratio of good output to quantity of raw material input is called
a) non-defective productivity
b) process yield
c) worker quality measurement
d) total quality productivity
QN119: Sequencing (or dispatching)
a) assigns dates to specific jobs or operations steps
b) assigns jobs to work centers
c) specifies the order in which jobs should be done at each center
d) assigns workers to jobs
QN120: In the 1970’s and 1980’s in the USA, organizations concentrated on:
a) operations strategies
b) improving quality
c) marketing and financial strategies
d) revising mission statements
QN121: Given forecast errors of 5, 0, – 4, and 3, what is the bias?
a) -4
b) 4
c) 5
d) 12
QN122: Motivation is a result of
a) MBO
b) Communication
c) Coordination
d) None of above
QN123: Exploding the bill of materials means
a) converting the bill of materials into components and raw material requirements
b) identifying the lead time of all the components
c) determining the various components’ quantities that are already on hand
d) determining the net requirements for all the components
QN124: Unique attributes of firms that give them a competitive edge are called ______________.
a) Functional strategies
b) Balanced scorecards
c) Supply chains
d) Core competencies
QN125: In the past, a significant reason why U.S. productivity was the highest in the world was high:
a) agricultural productivity
b) manufacturing productivity
c) labor productivity
d) savings productivity
QN126: Flow time represents the time
a) to complete an order, time spent in processing
b) to complete an order time spent in waiting
c) to complete an order, including time spent in processing and in waiting
d) none of these
QN127: Purchase involves
a) Identifying need of material
b) Placing purchase order
c) Verifying received goods
d) All above
QN128: The MPS calls for 110 units of Product M. There are currently 30 of Product M on hand. Each M requires 4 of Component N. There are 20 units of N on hand. The gross requirements for N are
a) 150
b) 170
c) 300
d) 320
QN129: When the flow of materials is variable,
a) layout by process is most suitable
b) layout by product is most suitable
c) layout by fixed position is most suitable
d) line balancing is most suitable
QN130: Sequence of data points that are measured typically at successive times at regular time intervals is known as:
a) Moving average
b) Weighted moving average
c) Time series
d) Forecasts
QN131: In exponential smoothing model, a denotes:
a) Smoothing constant
b) Previous forecast
c) Forecast error
d) Actual forecast
QN132: Effective capacity is generally
a) Lower than design capacity
b) Higher than design capacity
c) Equal to design capacity
QN133: Which of the following ensures that the design meets the performance characteristics that are specified in the product concept?
a) Functional design
b) Production design
c) Service design
d) Product design
QN134: Early adopters are innovative organizations that derive a great deal of their success from leading change
a) True
b) False
QN135: Make or buy decision is a part of maintenance function
a) True
b) False
QN136: Inventory is considered in ROI
a) True
b) False
QN137: BOM is not a component of MRP
a) True
b) False
QN138: Expected payoff is equal to the highest payoff for an alternative in the environment of risk
a) True
b) False
QN139: Tracking signal is used to monitor the suitability of forecasting technique
a) True
b) False
QN140: Service operations require additional inventory because of the unpredictability of consumer demand.
a) True
b) False
QN141: A mission statement should provide a guide for the formulation of strategies for the organization.
a) True
b) False
QN142: Vary size of inventory is a pure planning strategy for varying demand
a) True
b) False
QN143: Organizations that are capable of responding quickly to changing requirements can use a shorter forecast horizon and therefore benefit from more accurate forecasts.
a) True
b) False
QN144: The shorter the forecast period, the more accurately the forecasts tend to track what actually happens.
a) True
b) False
QN145: Which of the following is a major disadvantage of the Matrix method of project management?
a) A single project manager is held responsible for the successful completion of the project.
b) Team members must leave their functional home – jeopardizing their career path.
c) Communication between functional disciplines is discouraged.
d) Team members report to two bosses – creating a potential conflict.
QN146: JIT results in inventory reduction
a) True
b) False
QN147: Investigation of trends to identify influencing developments is a part of analysis
a) True
b) False
QN148: Inspection, scrap, and repair are examples of external costs.
a) True
b) False
QN149: The probability of a good lot being rejected is consumer risk
a) True
b) False
QN150: Equipment breakdowns is a frequent cause of delayed differentiation.
a) True
b) False
QN151: A moving average forecast tends to be more responsive to changes in the data series when more data points are included in the average.
a) True
b) False
QN152: The organization in India for granting ISO 9000 is DGET
a) True
b) False
QN153: Power, prestige, security, and similar noneconomic criteria have no role in business purchase decisions.
a) True
b) False
QN154: A firm pursuing a strategy based on customization and variety will tend to structure and manage its supply chain to accommodate more _____________ than a firm pursuing a strategy based on low-cost and high-volume.
a) Variation
b) Streamlined flow
c) Quality
d) Capacity
QN155: ISO 9000 seeks standardization in terms of suppliers’ specifications
a) True
b) False
QN156: Smoothing coefficient is low for new products for which demand is shifting
a) True
b) False
QN157: Climate is a factor affecting site selection
a) True
b) False
QN158: TQM is applicable to services
a) True
b) False
QN159: Layout considers the position of machines
a) True
b) False
QN160: In a X-bar chart, one constant used for determining control limits is D4
a) True
b) False
QN161: Competitive bidding is used for local purchase
a) True
b) False
QN162: Six sigma aims at 30 ppm
a) True
b) False
QN163: Cost of raw materials is high in woollen textile industry
a) True
b) False
QN164: The data relating to product defects can be categorized as attribute
a) True
b) False
QN165: Robert Mondovi is a well-known winery in Napa Valley, CA. It is a family-owned business and is not traded on any stock exchange. Then it is known as private firm.
a) True
b) False
QN166: SCM can include having suppliers actually on site producing products or services in a manufacturers facility.
a) True
b) False
QN167: Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the Pareto Chart.
a) True
b) False
QN168: A business that is rated highly by its customers for service quality will tend to be more profitable than a business that is rated poorly
a) True
b) False
QN169: Quality function deployment is a method of integrating the voice of the customer into the design process.
a) True
b) False
QN170: An aluminum plant produces 50 KG aluminum per Kilowatt Hour of energy. This is a ________ of productivity
a) Partial measure
b) Total measure
c) Multifactor measure
d) First factor measure
QN171: Darryl is a chemist at a pharmaceutical company, and he was asked by the decision-making unit at his company to visit and evaluate potential vendors that will supply his company with the chemicals required to manufacture their products and to conduct laboratory tests of a new product that can be used in the manufacture of their products. Then is Darryl is assisting the company with informal information search.
a) True
b) False
QN172: Basic research, applied research and development are all part of the product life cycle.
a) True
b) False
QN173: Functional strategies should be designed to directly support a firm’s mission.
a) True
b) False
QN174: Productivity is defined as ratio of input to output
a) True
b) False
QN175: Global competition really only applies to multi-national organizations.
a) True
b) False
QN176: The word technology is used only to refer to information technology.
a) True
b) False
QN177: Productivity is the ratio of input to output.
a) True
b) False
QN178: Bias exists when forecasts tend to be greater or less than the actual values of time series.
a) True
b) False
QN179: A company can compete with other companies manufacturing a similar product only by reducing its price
a) True
b) False
QN180: In the maximin principle, the substitute with the best out of the worst payoffs is selected
a) True
b) False
QN181: Lead users tend to accelerate market adoption, which is labeled as market push.
a) True
b) False
QN182: A successful TQM program does not incorporates centralized decision making authority.
a) True
b) False
QN183: A layout for allowing workers to operate more machines is called hybrid
a) True
b) False
QN184: Preparation of machine load refers to progressing
a) True
b) False
QN185: People who work in the field of operations should have skills that include both knowledge and people skills.
a) True
b) False
QN186: An advantage of trend adjusted exponential smoothing over the linear trend equation is its ability to adjust over time to changes in the trend.
a) True
b) False
QN187: A tracking signal focuses on the ratio of cumulative forecast error to the corresponding value of MAD.
a) True
b) False
QN188: Site visits to potential vendors, laboratory tests of a new product, and investigation of possible product specifications are part of formal information search.
a) True
b) False
QN189: Firmographics is NOT an internal influence on organizational buyer behavior.
a) True
b) False
QN190: Once accepted by managers, forecasts should be held firm regardless of new input since many plans have been made using the original forecast.
a) True
b) False
QN191: Range is not a measure of dispersion
a) True
b) False
QN192: Recycling is essentially remanufacturing.
a) True
b) False
QN193: Effective capacity is equal to design capacity
a) True
b) False
QN194: Organizational culture is a concept that is similar to consumer self-concept and lifestyle.
a) True
b) False
QN195: The term concurrent engineering refers to bringing engineering and manufacturing personnel together early in the design phase.
a) True
b) False
QN196: Organizational purchase situations are known as straight rebuy, modified rebuy, and new task.
a) True
b) False
QN197: Service often requires greater labor content, whereas manufacturing is more capital intensive.
a) True
b) False
QN198: The variation inherent in the process is called
a) Chance variation
b) Assignable variation
c) Avoidable variation
d) None of above
QN199: What would be the output capacity if an assembly line operates for 7 hours per day with a cycle time of 2.0 minutes?
a) 210 units per day
b) 3.5 units per day
c) 0.004 units per day
d) 14 units per day
QN200: Which of the following forecasting techniques generates trend forecasts?
a) Delphi method
b) Moving averages
c) Single exponential smoothin
d) Naïve forecast
QN201: Which of the following statements about the basic EOQ model is false?
a) If the setup cost were to decrease, the EOQ would fall.
b) If annual demand were to increase, the EOQ would increase.
c) If the ordering cost were to increase, the EOQ would rise.
d) If annual demand were to double, the EOQ would also double
QN202: TQM is applicable to
a) Manufacturing industry
b) Services
c) Research organizations
d) All above
QN203: Operations can be classified according to the degree of variations in demand and visibility of the operations as well as their volume and variety of production which of the following operations would be classified as high variation & high visibility ?
a) A front office staff
b) A family doctor
c) A carpenter
d) A fast food restaurant
QN204: Which of the following is not cost ON materials
a) Cost of material
b) Handling cost
c) Scrap cost
d) All above
QN205: Value added can be calculated by:
a) average productivity gains over time
b) inputs divided by the outputs
c) outputs divided by the inputs
d) outputs minus inputs
QN206: Which of the following factors would tend to reduce productivity?
a) improvements in workplace safety
b) reductions in labor turnover
c) more inexperienced workers
d) reductions in the scrap rate
QN207: ISO 9000 is a standard for
a) Product quality
b) System quality
c) Process quality
d) All above
QN208: Taguchi methods aim for controlling
a) Variability
b) Average
c) Dimensions
d) All above
QN209: Which of the following is true?
a) Corporate strategy is shaped by functional strategies.
b) Corporate mission is shaped by corporate strategy.
c) Functional strategies are shaped by corporate strategy.
d) External conditions are shaped by corporate mission.
QN210: The mean absolute deviation (MAD) is used to:
a) estimate the trend line
b) eliminate forecast errors
c) measure forecast accuracy
d) seasonally adjust the forecast
QN211: This is not one of the 4 P’s of TQM philosophy
a) People involvement
b) Problem investigation
c) Perpetual improvement
d) Perseverance
QN212: The ______ is the input to Materials Requirements Planning which lists the assemblies, subassemblies, parts and raw materials needed to produce one unit of finished product.
a) bill of materials
b) net requirements chart
c) inventory records
d) assembly time chart
QN213: The two most important factors in choosing a forecasting technique are:
a) cost and time horizon
b) accuracy and time horizon
c) cost and accuracy
d) quantity and quality
QN214: Competitive bidding is used for
a) Routine purchase
b) High expenditure purchase
c) Local purchase
d) All above
QN215: The probability of a good lot being rejected is
a) Consumer risk
b) Supplier risk
c) Both a and b
d) Not a risk
QN216: Deciding about replenishment of inventory is a part of
a) Material purchase
b) Material storage
c) Material scheduling
d) All above
