Production and Operations Management Online MCQ Set 17

QN01. In ______________ approch the supplier and not the retailer, is responsible formanaging and replenishing inventory.

1. JIT
2. QRM
3. VMI
4. MRP

Answer

(C)VMI

QN02. In order to build quality in the culture, a ______________ is established to provide overall direction.It is the driver for the TQM engine.

1. quality council
2. quality method
3. quality system
4. quality circles

Answer

(A)quality council

QN03. Which of the following is true about ISO 14000 certification?

1. it is a prerequisite for ISO 9000 certification
2. it indicates a higher level of adherence to standards than ISO 9000
3. it is only sought by companies exporting their goods
4. it deals with environmental management

Answer

(D)it deals with environmental management

QN04. A quality loss function utilizes all of the following costs except

1. the cost of scrap and repair
2. the cost of customer dissatisfaction
3. inspection, warranty, and service costs
4. sales costs
5. costs to society

Answer

(D)Sales costs

QN05. If a sample of parts is measured and the mean of the measurements is outside the control limits the process is

1. in control, but not capable of producing within the established control limits
2. out of control and the process should be investigated for assignable variation
3. within the established control limits with only natural causes of variation
4. monitored closely to see if the next sample mean will also fall outside the control limits
5. none of the above

Answer

(B)out of control and the process should be investigated for assignable variation

QN06. A recent consumer survey conducted for a car dealership indicates that,’when buying a car, customers are primarily concerned with the salesperson's ability to explain the car's features, the salesperson's friendliness, and the dealer's honesty. The dealership should be especially concerned with which
dimensions of service quality?

1. communication, courtesy, and credibility
2. competence, courtesy, and security
3. competence, responsiveness, and reliability
4. communication, responsiveness, and reliability

Answer

(A)communication, courtesy, and credibility

QN07. Who among the following is associated with contributions to quality control in operations management?

1. Charles Babbage
2. Henry Ford
3. Frank Gilbreth
4. W. Edwards Deming
5. Henri Fayol

Answer

(D)W. Edwards Deming

QN08. Which of the following are the primary functions of all organizations?

1. operations, marketing, and human resources
2. marketing, human resources, and finance/accounting
3. sales, quality control, and operations
4. marketing, operations, and finance/accounting
5. research and development, finance/accounting, and purchasing

Answer

(D)marketing, operations, and finance/accounting

QN09. The service industry makes up approximately what percentage of all jobs in the United States?

1. 20%
2. 40%
3. 66%
4. 74%
5. 90%

Answer

(D)74%

QN10. Hybrid marketing systems are also called ______________.

1. multichannel distribution systems
2. horizontal multichannel systems
3. administered franchises
4. dual distribution systems

Answer

(A)multichannel distribution systems

QN11. Marketing logistics involves getting the right product to the right customer in the right place at the right time. Which one of the following is not included in this process?

1. implementing the plan for the flow of goods and services
2. gathering customer's ideas for new products
3. planning the physical flow of goods and services
4. controlling the physical flow of goods, services, and information

Answer

(B)gathering customer's ideas for new products

QN12. Today, a growing number of firms now outsource some or all of their logistics to ______________

1. disintermediaries
2. competitors
3. cross-functional teams
4. third-party logistics providers

Answer

(D)third-party logistics providers

QN13. A supply chain is made up of a series of processes that involve an input, a ______________, and an output.

1. shipment
2. supplier
3. customer
4. transformation

Answer

(D)transformation

QN14. ______________ is a set of approaches utilized to efficiently intergrate suppliers, manufacturers,warehouses,and stores,so that merchandise is produced and distributed,at the right quantities,to the right location, and at the right time,in order to minimize system wide costs while satisfying service level requirements.

1. Logistic management
2. Supply chain management
3. Operational management
4. Production management

Answer

(B)Supply chain management

QN15. VMI stands for ______________

1. Vendor Managed Inventory
2. Value Managed Inventory
3. Vendor Marketing Inventory
4. Value marketing inventory

Answer

(A)Vendor Managed Inventory

QN16. Effective management of the ______________ process in supply chain enables the firm to identify productivity improvement opportunities and breakthrough projects.

1. product development and commercialization
2. demand management
3. manufacturing flow management
4. returns management

Answer

(D)returns management

QN17. ______________ and physical distribution are the two major operations of logistics.

1. Supply Chain Management
2. Materials Management
3. Logistics Management
4. None

Answer

(B)Materials Management

QN18. ______________ is a part of supply chain management

1. Financial management
2. Human resource management
3. Marketing management
4. Logistic management

Answer

(D)Logistic management

QN19. The determination of transport rate and price are normally based on economic, shipper and carrier factor, followed by alternative ______________

1. production strategies
2. promotion strategies
3. pricing strategies
4. distribution strategies

Answer

(C)pricing strategies

QN20. Logistics add value by creating ______________ Utilities.

1. time and place
2. risk
3. protection
4. promotion

Answer

(A)time and place

QN21. The out put of ______________ era is the maximization of customer value and harmonious long -run relationship between all supply chain members.

1. Independent business function era (till 1950)
2. limited internally integrated business function era (1960-70)
3. fully internally integrated business function era (1980s)
4. externally integrated business function era (1990s)

Answer

(D)externally integrated business function era (1990s)

QN22. ______________ requires cradle - to - cradle logistics

1. quality
2. inventory reduction
3. life cycle support
4. responsiveness

Answer

(C)life cycle support

QN23. ______________ is a small group of employees in the same work area or doing similar work who voluntarily meet regularly to identify,analyse and resolve work related problems leading to improvement in their total performance.

1. quality council
2. quality method
3. quality system
4. quality circles

Answer

(D)quality circles

QN24. According to the manufacturing-based definition of quality,

1. quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost
2. quality depends on how well the product fits patterns of consumer preferences
3. even though quality cannot be defined, you know what it is
4. quality is the degree to which a specific product conforms to standards

Answer

(D)quality is the degree to which a specific product conforms to standards

QN25. Based on his 14 Points, Deming is a strong proponent of

1. inspection at the end of the production process
2. an increase in numerical quotas to boost productivity
3. looking for the cheapest supplier
4. training and knowledge

Answer

(D)training and knowledge

QN26. Among the tools of TQM, the tool ordinarily used to aid in understanding’the sequence of events through which a product travels is a

1. Pareto chart
2. Flow chart
3. check sheet
4. Taguchi map

Answer

(B)Flow chart

QN27. A worker operates a shear press. She notices that the metal sheets she is cutting have curled edges. Who should get the first "shot" at solving the problem?

1. the foreman
2. a member of the Quality Control department
3. the operator herself
4. an engineer
5. the employee's supervisor

Answer

(C)the operator herself

QN28. Taylor and Deming would have both agreed that

1. Whirlpool's global strategy is a good one
2. Eli Whitney was an important contributor to statistical theory
3. management must do more to improve the work environment and its processes so that quality can be improved
4. productivity is more important than quality
5. the era of Operations Management will be succeeded by the era of scientific management

Answer

(C)management must do more to improve the work environment and its processes so that quality can be improved

QN29. Current trends in operations management include all of the following except

1. Just-in-time performance
2. rapid product development
3. mass customization
4. empowered employees
5. mass production

Answer

(E)mass production

QN30. Gibson Valves produces cast bronze valves on an assembly link. If 1600 valves are produced in an 8-hour shift, the productivity of the line is

1. 2 valves/hr
2. 40 valves/hr
3. 80 valves/hr
4. 200 valves/hr
5. 1600 valves/hr

Answer

(D)200 valves/hr

QN31. The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. Due to higher demand,they have decided to operate three 8-hour shifts instea

1. They are now able to produce 600 boxes per day. What has happened to production?
2. it has increased by 50 sets/shift
3. it has increased by 37.5 sets/hr
4. it has increased by 20%
5. it has decreased by 8.3%
6. it has increased by 9.1%

Answer

(C)it has increased by 37.5 sets/hr

QN32. Which of the following is not true when explaining why productivity tends to be lower in the service sector than in the manufacturing sector?

1. Services are typically labor intensive
2. Services are often difficult to evaluate for quality
3. Services are often an intellectual task performed by professionals
4. Services are difficult to automate
5. Service operations are typically capital intensive

Answer

(E)Service operations are typically capital intensive

QN33. A company's channel decisions directly affect every ______________

1. competitor's actions
2. marketing decision
3. channel member
4. employee in the channel

Answer

(B)marketing decision

QN34. A corporate VMS has the advantage of controlling the entire distribution chain under ______________

1. single ownership
2. a profit-maximizing strategic plan
3. a few intermediaries
4. mass distribution

Answer

(A)single ownership

QN35. Julie Newmar recognizes that her company needs to provide better customer service and trim distribution costs through teamwork, both inside the company and among all marketing channel organizations. Julie will begin the practice of ______________

1. customer relationship management
2. horizontal marketing system management
3. supply chain management
4. integrated logistics management

Answer

(D)integrated logistics management

QN36. Value stream mapping is an application of process mapping, developed to apply ______________ principles to process improvement.

1. management
2. lean
3. supply chain
4. cycle time

Answer

(B)lean

QN37. "3PL" involves using a supplier to provide ______________ services.

1. marketing
2. design
3. logistics
4. contract manufacturing

Answer

(C)logistics

QN38. The fundamental objective of supply chain management is ______________

1. supply goods
2. create goods
3. add value
4. identify supplier

Answer

(C)add value

QN39. In CRM - PSA stands for ______________

1. Product and Service Agreements
2. Plan Service Agreements
3. Policy Service Agreements
4. Promotion Service Agreements

Answer

(A)Product and Service Agreements

QN40. An effective ______________ process in supply chain requires integration of firms manufacturing, logistics and marketing plans.

1. CRM
2. customer service management
3. order fulfillment
4. demand management

Answer

(C)order fulfillment