Production and Operations Management Online MCQ Set 12

QN01. A __________________ is an organized collection of comprehensive information about individual customers or prospects.

  1. Marketing database
  2. Customer database
  3. Customer mailing list
  4. Business database
Answer

(B)Customer database

QN02. ISO 9000 seeks standardization in terms of

  1. Products
  2. Production procedures
  3. Suppliers' specifications
  4. Procedures to manage quality
Answer

(D)Procedures to manage quality

QN03. An appropriate strategy to achieve timely, accurate, paperless information flow is:

  1. Efficient store assortments.
  2. Revision of organization processes supported by information systems.
  3. Efficient replacement.
  4. Integrate this activity into all supply chain planning.
  5. None of the above.
Answer

(B)Revision of organization processes supported by information systems.

QN04. ___________________ offers the opportunity to buy direct from the supplier with reduced costs and shorter cycle.

  1. Contramediation
  2. Reintermediation
  3. Disintermediation
  4. Countermediation
Answer

(C)Disintermediation

QN05. An organisation's supply chain can be viewed from a system's perspective that starts with the acquisition of resources which are then transformed into products or services. Simply, put the sequence is represented:

  1. Inputs - process - outputs
  2. Sourcing - input - process - outputs
  3. Process - inputs - outputs
  4. Inputs - outputs - process
Answer

(A)Inputs - process - outputs

QN06. What does the following definition refer to: an organisation which uses communications technology to allow it to operate without clearly define physical boundaries between different functions?

  1. Cloud organisation
  2. Base-free organisation
  3. E-organisation
  4. Virtual organisation
Answer

(D)Virtual organisation

QN07. IS can be used to reduce cycle time by:

  1. Improved data integration between elements of the supply chain.
  2. Increased efficiency of individual processes.
  3. Reduced cost through outsourcing.
  4. Reduced complexity of the supply chain.
Answer

(B)Increased efficiency of individual processes.

QN08. An appropriate strategy to maximize efficiency of promotions is:

  1. Efficient replacement.
  2. Efficient store assortments..
  3. Revision of organization processes supported by information systems.
  4. Integrate this activity into all supply chain planning.
Answer

(D)Integrate this activity into all supply chain planning.

QN09. Supply chain management is essentially the optimisation of material flows and associated information flows involved with an organisation's operations. To manage these flows, e-business applications are essential to bring such benefits as noted in 'Internet retailing' in 2010 which reported that the average rates of return to a high street retailer could be as high as 10%. What did the same source report as the average rate of return for UK e-commerce sites?

  1. 15%
  2. 22%
  3. 18%
  4. 12%
Answer

(B)22%

QN10. The 'value chain' idea is a concept that has been well established for the past three decades and it refers to considering key activities that an organization can conduct to add value for the customer. It traditionally distinguished between primary activities and support activities. Why is this concept regarded as outdated with the development of e-business?

  1. There is a clear distinction between primary and support activities
  2. The support activities offer far more than just support
  3. Support activities have been subsumed under primary activities
  4. The concept still holds and does not need revision
Answer

(B)The support activities offer far more than just support

QN11. Using digital communication to improve supply chain efficiency is dependent on effective exchange and sharing of information. The challenges of achieving standardized data formats and data exchange have given rise to the study of the optimisation of the:

  1. Information supply chain
  2. Virtual integration
  3. Vertical integration
  4. Information asymmetry
Answer

(A)Information supply chain

QN12. The typical aim of the push approach to supply chain management is:

  1. To reduce costs of distribution.
  2. To enhance product and service quality.
  3. To reduce costs of new product development.
  4. Both the first and third answer above.
Answer

(D)Both the first and third answer above.

QN13. An appropriate strategy to optimize for time and cost in the ordering process is:

  1. Efficient store assortments.
  2. Integrate this activity into all supply chain planning.
  3. Revision of organization processes supported by information systems.
  4. Efficient replacement.
Answer

(D)Efficient replacement.

QN14. Supply chain SC management involves the coordination of all supply activities of an organisation from its suppliers to the delivery of products to its customers. There are various features associated with this area of e-commerce and which refers to what is known as efficient consumer response (ECR):

  1. Transactions between an organisation and its customers and intermediaries
  2. The links between an organisation and all partners involved
  3. Creating and satisfying customer demand by optimizing strategies, promotions and product introductions
  4. None of the above
Answer

(C)Creating and satisfying customer demand by optimizing strategies, promotions and product introductions

QN15. The typical benefits of e-supply chain management gained by a B2B company are quite comprehensive. Which of the following is false though?

  1. Increased efficiency of individual processes
  2. Increased costs through outsourcing
  3. Improved data integration between elements of the supply chain
  4. Reduced complexity of the supply chain
Answer

(B)Increased costs through outsourcing

QN16. An appropriate strategy to optimize the productivity of retail space and inventory is:

  1. Integrate this activity into all supply chain planning.
  2. Efficient store assortments.
  3. Revision of organization processes supported by information systems.
  4. Efficient replacement.
Answer

(B)Efficient store assortments.

QN17. Logistics is an integral part of supply chain management. Which explanation best represents outbound logistics?

  1. A supply chain that emphasises distribution of a product to passive customers
  2. The management of resources supplied from an organisation to its customers and intermediaries
  3. An emphasis on using the supply chain to deliver value to customers who are actively involved in product and service specification
  4. The management of material resources entering an organisation from its suppliers and other partners
Answer

(B)The management of resources supplied from an organisation to its customers and intermediaries

QN18. The downstream supply chain is:

  1. Exclusively inside an organization.
  2. Involved with procurement of material from suppliers.
  3. The distribution of products or delivery of services to customers.
  4. Both the first and third answer above.
Answer

(C)The distribution of products or delivery of services to customers.

QN19. A value chain analysis provides an analytical framework for an organisation to examine individual activities and determine value added at each stage. The principles can also be applied to an organisation's external value stream analysis which considers how the whole production and delivery process can be made more efficient. The activities can be categorized into those:

  1. All of the below
  2. Those required for product development or production systems
  3. Those that do not add value
  4. That create value as perceived by the customer
Answer

(A)All of the below

QN20. The upstream supply chain is:

  1. Exclusively inside an organization.
  2. Involved with procurement of material from suppliers.
  3. The distribution of products or delivery of services to customers.
  4. Both the first and third answer above.
Answer

(B)Involved with procurement of material from suppliers.

QN21. The correct sequence of an organizations supply chain from a systems perspective is:

  1. Transformation process, delivery to customers, acquisition of resources.
  2. Acquisition of resources, transformation process, delivery to customers.
  3. Delivery to customers, acquisition of resources, transformation process.
  4. Transformation process, acquisition of resources, delivery to customers.
Answer

(B)Acquisition of resources, transformation process, delivery to customers.

QN22. Improvements in the value chain can be implemented by following Kjellsdotter and Jonsson's iterative planning cycle. Which of the following does not form part of the cycle?

  1. Creating a preliminary delivery plan
  2. Creating a preliminary production plan
  3. Creating a consensus forecast
  4. Creating a quality control plan
Answer

(D)Creating a quality control plan

QN23. What type of process would a Cement plant be most likely to use?

  1. Continuous flow.
  2. Project c.
  3. Job shop.
  4. Flow shop.
Answer

(A)Continuous flow.

QN24. Product layout is preferably used for:

  1. Repetitive processing.
  2. Intermittent processing.
  3. Both (a) and (b).
  4. Neither (a) nor (b).
Answer

(A)Repetitive processing.

QN25. Transportation method is a ______________ approach.

  1. Quantitative.
  2. Qualitative.
  3. Scientific.
  4. All of the given options.
Answer

(A)Quantitative.

QN26. Which of the following would not be an operations activity in a fast-food restaurant?

  1. Advertising new salad dishes.
  2. Purchasing tomatoes.
  3. Planning the layout of the serving areas.
  4. Cooking panir palak and dal makhani.
Answer

(A)Advertising new salad dishes.

QN27. According to the Chase and Dasu (2001) study which of the following are behavioral concepts that should be applied to enhance customer perceptions of a service encounter?

  1. Flow of the service experience.
  2. Flow of time.
  3. Judging encounter performance.
  4. All of the above.
  5. None of the above.
Answer

(D)All of the above.

QN28. Which of the following "best practices emphasized by service executives" had the highest mean emphasize rating?

  1. Leadership.
  2. Accessibility.
  3. Quality values.
  4. Customer orientation.
  5. Listening to the customer.
Answer

(B)Accessibility.

QN29. Which of the following is not a benefit of using models in decision-making?

  1. They provide a standardized format for analyzing a problem.
  2. They serve as a consistent tool for evaluation.
  3. They are easy to use and less expensive than dealing with the actual situation.
  4. All of the above are benefits.
  5. None of the above is a benefit.
Answer

(D)All of the above are benefits.

QN30. Which came last in the development of manufacturing techniques?

  1. Lean production.
  2. Division of labor.
  3. Mass production.
  4. Interchangeable parts.
Answer

(D)Interchangeable parts.

QN31. Which of the following is essential to consider with respect to managing a process to meet demand?

  1. strategy.
  2. demand forecasts.
  3. capacity.
  4. all of the above.
Answer

(D)all of the above.

QN32. Which one does not use operations management?

  1. A CPA firm.
  2. A bank.
  3. A hospital.
  4. They all use it.
Answer

(D)They all use it.

QN33. A fixed interval system

  1. adds the same predetermined amount to inventory each time replenishment occurs.
  2. is suitable for joint replenishment items.
  3. is triggered at the reorder level.
  4. requires perpetual monitoring of inventory records.
Answer

(B)is suitable for joint replenishment items.

QN34. Which of the following is the focus of statistical process control?

  1. Determining the efficiency of an operations system.
  2. Measuring the amount of re-work required to rectify faulty goods.
  3. Identifying the security needs of an operations system.
  4. Measuring and controlling process variations.
Answer

(D)Measuring and controlling process variations.

QN35. Which one of the following would not generally be classified under the heading of transformation?

  1. Assembling.
  2. Teaching.
  3. staffing.
  4. Farming.
  5. consulting.
Answer

(C)staffing.

QN36. Process selection is primarily considered during:

  1. Planning.
  2. Organizing.
  3. Leading.
  4. Controlling.
Answer

(A)Planning.

QN37. Process layout is used for:

  1. Repetitive processing.
  2. Intermittent processing.
  3. Both (a) and (b).
  4. Neither (a) nor (b).
Answer

(A)Repetitive processing.

QN38. A product performing consistently refers to which of the following dimensions of quality:

  1. Safety.
  2. Conformance.
  3. Durability.
  4. Reliability.
Answer

(D)Reliability.

QN39. Manufacturing work sent to other countries is called:

  1. downsized.
  2. outsourced.
  3. internationalization.
  4. vertical integration.
Answer

(B)outsourced.

QN40. Which of the following is not true about systems approach?

  1. A systems viewpoint is usually beneficial in decision making.
  2. A systems approach emphasizes interrelationships among subsystems.
  3. A systems approach concentrates on efficiency within subsystems.
  4. A systems approach is essential whenever something is being redesigned or improved.
Answer

(C)A systems approach concentrates on efficiency within subsystems.

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