I.

MULTIPLE CHOICE TEST (100x1)

Write the letter of the correct anser.
1. This function is responsible for supplying or producing products and services to the business.
a. Purchasing function
b. Marketing function
c. Sales function
d. Operations function
2. Which of these integrates suppliers, producers, and custoers!
a. "lobali#ation of Operations
b. Supply $hain Manageent
c. %nvironental $oncerns
d. &ean Operations
'. The outputs in this type of operation include transportation fro one location to another.
a. (irline b. )estaurant c. *otel d. +niversity
,. What type of operations ob-ective includes custoer satisfaction and percentage of scrap and re.ork!
a. $ost b. /uality c. 0elivery d. 1le2ibility
3. These products have predictable deands and lo. profit argins.
a. Original
b. 4itative
c. 4nnovative
d. 4nferior
5. 4n this ne. product vie., technology is the priary deterinant of the products that the fir should ake.
a. Technology push
b. Market pull
c. 4ntrafunctional
d. 4nterfunctional
6. Which departent is responsible for the operations function in a anufacturing copany!
a. Marketing departent
b. Purchasing departent
c. Production departent
d. %2ecutive departent
7. Which part of the operations decisions frae.ork includes the e8uipent and technology used to anufacture
products!
a. /uality b. $apacity c. 4nventory d. Process
9. What departent is responsible for arket si#e, distribution channels, ne. product introduction, and pricing!
a. Marketing b. 1inance c. (ccounting d. Production
1:. Which of these is ;OT a ethod to enlarge capacity!
a. Subcontracting
b. %2tra shifts
c. )enting space
d. Standardi#ation
11. This operations thee is concerned .ith eliinating .aste activities in every part of operations.
a. %nvironental $oncerns
b. "lobali#ation of Operations
c. &ean Operations
d. Operations .ith Other 1unctions
12. Which of these is ;OT a conteporary operations thee!
a. %nvironental $oncerns
b. Supply $hain Manageent
c. "overnent )egulations
d. $ustoer<0irected Operations
1'. This operations ob-ective deals .ith the tie needed to introduce ne. products.
a. $ost b. /uality c. 0elivery d. 1le2ibility
1,. Which of these is the best .ay to achieve lo.er costs!
a. (c8uire latest technologies
b. 4nnovate products and services
c. Manage resources
d. 1ocus on custoer re8uireents
13. This strategy defines ho. a particular business .ill copete.
a. 0istinctive Strategy
b. =usiness Strategy
c. $orporate Strategy
d. 1unctional Strategy
15. (ccording to this vie. of ne. product introduction, the custoer need is the priary basis for deterining the
products a fir should ake.
a. Technology push
b. 4nterfunctional
c. Market pull
d. 4ntrafunctional
16. Which of these indicate ho. the operation ob-ectives should be achieved!
a. Tactics b. Policies c. Mission d. >ision
17. Toyota has anage to survive in these troubled econoic ties in (sia because of their coitent on being
responsive to their custoers? needs. What type of operations thee is described in this scenario!
a. Supply $hain Manageent
b. &ean Operations
c. Operations .ith Other 1unctions
d. $ustoer<0irected Operations
19. This phase in the product developent concept is concerned .ith idea generation and evaluation of alternative
ideas for the ne. product.
a. $oncept developent
b. Product design
c. Pilot production
d. $oerciali#ation
2:. (t the end of this phase, the fir has a set of product specifications that can be the basis for building and testing
production prototypes.
a. Pilot production
b. $oerciali#ation
c. Product design
d. $oncept developent
21. This type of product flo. is also referred to as process industries.
a. $ontinuous Process b. (ssebly &ines c. =atch 1lo. d. @ob Shop
22. What type of custoer order can provide faster service to custoer fro available stock and lo.er cost!
a. Made<to<order
b. Made<to<produce
c. Made<to<stock
d. Made<to<e2port
2'. This process selection factor depends on arket activities.
a. $apital )e8uireents
b. Market $onditions
c. &abor (vailability
d. Technology
2,. This is a anufacturing strategy to provide products in lot si#es of high volue.
a. 1ocus
b. Product<Process
c. Mass $ustoi#ation
d. $ross<1unction
23. This for of ass custoi#ation is used to defer a portion of the production until the point of delivery.
a. Postponeent of options
b. 1ast changeover
c. Modular Production
d. Made<to<order
25. Which for of ass custoi#ation uses coputer<controlled production and bar codes that are uni8ue to
specific orders!
a. Postponeent of options
b. 1ast changeover
c. Modular Production
d. Made<to<order
26. Which of these is ;OT a characteristic of the ade<to<order process!
a. =alance inventory
b. $ustoer specified
c. *igh variety
d. %2pensive
27. This type of custoer<introduced variability stipulates that custoers coe to consue a service.
a. $apability b. )e8uest c. (rrival d. %ffort
29. Which of these does ;OT describe anufacturing businesses!
a. The product is intangible
b. O.nership is transferred at tie of purchase
c. 4t can be deonstrated before purchase
d. 4t can be stored in inventory
':. This type of custoer<introduced variability needs the .illingness of custoer to perfor appropriate actions.
a. $apability b. )e8uest c. (rrival d. %ffort
'1. These are the actions that are done in order to copensate for service failures.
a. Service coplaint
b. Service reliability
c. Service recovery
d. Service e2perience
'2. This type of custoer<introduced variability re8uires that custoers are able to participate in a service.
a. $apability b. )e8uest c. (rrival d. %ffort
''. 1or a ta2icab ride, .hich of the follo.ing is the iplicit service!
a. The feel of the ride
b. Transporting fro one place to another
c. The cab?s interior sell
d. Passenger?s security
',. This is an outline of ho. custoer preferences and service systes design interact in the arket.
a. Service atri2 b. $ustoer atri2
c. Operations atri2 d. 0esign atri2
'3. Which feature in the integrated supplier progra focuses on checking parts before the final design!
a. %arly supplier selection
b. 1aily<of<parts sourcing
c. &ong<ter relationship
d. Paper.ork reduction
'5. Which copany developed the @ust<in<Tie Process Syste!
a. *onda b. Toyota c. Mitsubishi d. ;issan
'6. Which feature in the integrated supplier progra involves an e2clusive contract .ith the supplier!
a. %arly supplier selection
b. 1aily<of<parts sourcing
c. &ong<ter relationship
d. Paper.ork reduction
'7. This &ean Syste ipleentation approach reoves the inventory needed to cover long lead ties and
variances.
a. =alance fabrication rates .ith final assebly production rates
b. Work back.ard fro final assebly
c. "ain the cooperation of the .orkforce
d. %2tend lean production to the suppliers
'9. Which of these is ;OT an eleent of lean thinking!
a. Specify value ap fro the anageent?s point of vie.
b. Strive for perfection
c. Pull the product fro the custoer
d. 1lo. the service through the syste
,:. What is the forula in coputing the nuber of containers needed to operate a .ork center!
a. 0eand rate of using the .ork centerAB&ead tie 2 $ontainer si#eC
b. B0eand rate of using the .ork center 2 $ontainer si#eCA&ead tie
c. B0eand rate of using the .ork center 2 &ead tieC A $ontainer si#e
d. 0eand rate of using the .ork centerA&ead tie
,1. This &ean Syste ipleentation approach re8uires correction of capacity shortfalls and provides spare
capacity in all areas.
a. =alance fabrication rates .ith final assebly production rates
b. Work back.ard fro final assebly
c. "ain the cooperation of the .orkforce
d. %2tend lean production to the suppliers
,2. This soft.are syste is one of the ost .idespread technologies used in anufacturing syste.
a. $oputer<(ided 0esign
b. $oputer<(ided Process Planning
c. $oputer<(ided %ngineering
d. $oputer ;uerically $ontrolled
,'. This hard.are technology integrates individual ites of autoation to for an autoated anufacturing
syste.
a. 1le2ible Materials Syste
b. (utoated Material *andling
c. (utoated "uided >ehicle
d. 1le2ible Manufacturing $ell
,,. Which process technology allo.s the e2change of structured inforation!
a. %lectronic 4nforation Transfer
b. %lectronic 4nforation 4nterchange
c. %lectronic 0ata 4nterchange
d. %lectronic 0ata Transfer
,3. This syste autoates a business process by providing an organi#ed structure to support the process.
a. Process $ontrol Systes
b. Transaction Operating Systes
c. Office (utoation Systes
d. Workflo. Manageent Systes
,5. Which of these is ;OT an application of M<business!
a. Procureent
b. (udit
c. (sset Tracking
d. Service Manageent
,6. Which type of anageent inforation systes includes e2pert systes!
a. 0ecision Support Systes b. Process $ontrol Syste
c. 4nforation )eporting Syste d. %2ecutive 4nforation Syste
,7. This hard.are technology is a syste designed to iprove efficiency in the oveent, storage and retrieval of
aterials.
a. $oputer ;uerically $ontrolled
b. (utoated Material *andling
c. (utoated "uided >ehicle
d. 1le2ible Manufacturing $ell
,9. Which of the follo.ing refers to the a2iu rate of output of a process!
a. $apacity b. 1lo. rate c. Process cycle d. Process
3:. What type of tea is fored if the syste cuts across organi#ational boundaries!
a. Self<anaged
b. Proble<solving
c. $ross<functional
d. >irtual
31. &ittle?s &a. is e8uated asD
a. (verage throughput 2 (verage flo. rate
b. (verage throughput A (verage flo. rate
c. (verage throughput E (verage flo. rate
d. (verage throughput < (verage flo. rate
32. 4t is defined as any operation that does not add value during the production process.
a. &ayoff b. $onsignent c. *oard d. Waste
3'. This is the a2iu rate of output of a process.
a. 4nventory b. Output c. $apacity d. Process )ate
3,. These are used to describe and iprove the transforation process in business.
a. 1lo.charts
b. Pie graphs
c. 1ish<bone diagras
d. 4PO 0iagra
33. These are used to classify the groceries by .arehouse aisle to facilitate picking.
a. Pick sheets
b. )oute aps
c. 0rivers? anifests
d. )oad aps
35. =usiness Process )eengineering involves analy#ing critical processes .ithin the business. Then, these critical
processes are reoved to better serve the custoer.
a. Stateent 1 and Stateent 2 are both correct.
b. Stateent 1 is correct .hile Stateent 2 is incorrect.
c. Stateent 1 is incorrect .hile Stateent 2 is correct.
d. Stateent 1 and Stateent 2 are both incorrect.
36. Which of these can be deterined before the product is ade!
a. /uality of conforance
b. /uality of design
c. /uality of abilities
d. /uality of service
37. /uantitatively, availability can be easured asD
a. +ptie A +ptie E 0o.ntie
b. +ptie A 0o.ntie
c. +ptie 2 0o.ntie F +ptie
d. 0o.ntie A +ptie
39. 4t eans producing a product to eet the specifications.
a. /uality of conforance
b. /uality of abilities
c. /uality of service
d. /uality of design
5:. These refer to the appearance of the copany?s physical facilities, e8uipent, and personnel.
a. Tangibles b. )eliability c. (ssurance d. %pathy
51. What do you call the length of tie that a product can be used before it fails!
a.)esponsiveness b. )eliability c. (ssurance d. Tangibles
52. Which of these refers to eployees? courtesy and their ability to convey trust and confidence!
a. Tangibles b. %pathy c. Sypathy d. (ssurance
5'. This 8uality guru defined 8uality as a continuous iproveent of a stable syste
a. Shigeo 4shika.a
b. %d.ards 0eing
c. Philip $rosby
d. @oseph @uran
5,. *e advocated that organi#ations should seek to produce #ero defects or to ake it right the first tie.
a. Shigeo 4shika.a
b. %d.ards 0eing
c. Philip $rosby
d. @oseph @uran
53. 4t is the function that designs and anages the physical transportation of aterials.
a. 1inancing b. Purchasing c. Operations d. &ogistics
55. 4t refers to the percentage of orders delivered coplete and on the date re8uested by the custoer.
a. 0elivery fill rate
b. &ead tie delivery
c. On<tie delivery
d. )eorder point
56. 4t is easured as the percentage of orders filled coplete fro inventory.
a. 0elivery fill rate
b. )eorder rate
c. $apacity rate
d. &ead tie rate
57. This is used to redesign supply chain fro scratch.
a. Ma-or process siplification
b. =usiness process reduction
c. Supply process distribution
d. Systes integration
59. What type of integration is used .hen a anufacturer buys a supplier copany!
a. >ertical integration
b. 1or.ard integration
c. =ack.ard integration
d. *ori#ontal integration
6:. Which of these is ;OT a type of e<procureent service!
a. Online catalogs
b. $oputer design
c. Third<party auctions
d. Private e2changes conducted by
corporations
61. The anufacturing copany (=$ decides to buy the .holesale fir GHI and use the fir to e2clusively
distribute its product. Which integration ethod did copany (=$ use!
a. =ack.ard integration
b. *ori#ontal integration
c. >ertical integration
d. 1or.ard integration
62. Which of the follo.ing is defined as the total anufacturing cost!
a. >ariable cost
b. 1i2ed cost
c. +nit cost
d. Opportunity cost
6'. /uality can be easured through a product?s perforance or custoer satisfaction. /uality is influenced by the
custoer?s e2pectations and the supplier?s ability to deliver a product or service.
a. Stateent 1 and Stateent 2 are both correct.
b. Stateent 1 is correct .hile Stateent 2 is incorrect.
c. Stateent 1 is incorrect .hile Stateent 2 is correct.
d. Stateent 1 and Stateent 2 are both incorrect.
6,. What is the forula for utili#ation!
a. Output A 4nput
b. Output A ;oinal $apacity
c. ;oinal $apacity E Output A 4nput
d. 4nput A ;oinal $apacity
63. Which of these is ;OT considered in a facilities strategy decision!
a. (ount of capacity
b. Types of facilities needed in the eantie
c. 1acility si#e
d. 1inancial capabilities
65. The facilities strategy re8uires a forecast of deand. $osts also affect the aount, the tiing and the location of
added capacity.
a. Stateent 1 and Stateent 2 are both correct.
b. Stateent 1 is correct .hile Stateent 2 is incorrect.
c. Stateent 1 is incorrect .hile Stateent 2 is correct.
d. Stateent 1 and Stateent 2 are both incorrect.
66. Which of these does ;OT affect the facility strategy!
a. &ikely copetitors? behavior
b. =usiness strategy
c. 4nternational considerations
d. $ustoi#ation
67. Hour facility has the capacity to produce 123,::: units .hile your average deand is 6',,17 units. What is the
capacity cushion for your facility!
a. 3:172 b. 31372 c. 31272 d. 31327
69. Which type of facility strategy is used by ost copanies!
a. Product<focused
b. Market<focused
c. Process<focused
d. "eneral purpose
7:. This type of facility produces coponents or parts that are shipped to other facilities for further processing.
a. Product<focused
b. Market<focused
c. Process<focused
d. "eneral purpose
71. Which of the follo.ing factors $(;;OT influence deand!
a. Pricing
b. Order process
c. )eservation
d. 0evelopent of $oplientary Products
72. This supply odification option involves the use of other firs to increase or decrease supply.
a. +sing teporary labor
b. *iring and layoff of eployees
c. Making cooperative arrangeent
d. Subcontracting
7'. This is the cost of buying or producing individual inventory ites.
a. 4te cost
b. Ordering cost
c. $arrying cost
d. Stock out cost
7,. This cost is associated .ith keeping ites in inventory for a period of tie.
a. 4te cost
b. Ordering cost
c. $arrying cost
d. Stock out cost
73. This is the cost of forgone opportunities that is given up for other investents.
a. *olding cost
b. Storage cost
c. $apital cost
d. $ost of obsolescence deterioration and loss
75. Which type of inventory has dependent deand!
a. 1inished goods
b. )etail goods
c. Service industry
d. )a. aterials
76. 4n .hat year did 1.W. *arris developed the econoic order 8uantity forula!
a. 191' b. 191, c. 1913 d. 1915
77. Which of these is ;OT a basic assuption of the econoic order 8uantity odel!
a. The deand rate is unkno.n
b. The lead tie is constant
c. ;o stock outs are allo.ed
d. The ite is a single product
79. Which type of syste onitors stock position after each transaction!
a. Periodic evaluation syste
b. %conoic order 8uantity
c. Periodic revie. syste
d. $ontinuous revie. syste
9:. Which type of syste onitors stock position at periodic intervals!
a. Periodic evaluation syste
b. %conoic order 8uantity
c. Periodic revie. syste
d. $ontinuous revie. syste
91. What is the forula for re<order point!
a. Safety factorA lead tie
b. (verage deand A lead tie
c. (verage deand A safety factor
d. Safety factorA lead tie
92. This is an inforation syste used to plan and control inventories and capacity.
a. Material re8uireents planning
b. %conoic order syste
c. @ust in tie systes
d. Sales and operations planning
9'. Which type of planning .as forulated for large product failies on an aggregate basis!
a. Material re8uireents planning
b. %conoic order syste
c. @ust in tie systes
d. Sales and operations planning
9,. Which function of aterial re8uireents planning involves ordering the aterials .ith the correct due date!
a. Schedule b. $apacity c. 4nventory d. Priorities
93. This type of aterial re8uireents planning syste is used to plan and control all resources, including inventory,
capacity, cash, personnel, facilities and capital.
a. %conoic )esource Planning
b. Type<4
c. Type<2
d. @ust in Tie
95. This syste eleent specifies the output of the operations function.
a. =ill of Materials b. Master Scheduling
c. 4nventory )ecords d. $apacity Planning
96. 4n aterial re8uireents planning, it is ipossible to provide suppliers .ith reports of future orders. The
function of a purchasing anager is to predict product deand.
a. Stateent 1 and Stateent 2 are both correct.
b. Stateent 1 is correct .hile Stateent 2 is incorrect.
c. Stateent 1 is incorrect .hile Stateent 2 is correct.
d. Stateent 1 and Stateent 2 are both incorrect.
97. Which of these is ;OT an eleent in a successful aterial re8uireents planning syste!
a. (de8uate $oputer Support
b. (ccurate 0ata
c. %valuation and Monitoring
d. Manageent Support
99. Which of the follo.ing is another ter for shop<floor control syste!
a. Manufacturing e2ecution syste
b. @ob priorities schedule
c. Safety lead tie
d. +tility anageent syste
1::. Which of these is ;OT an e2aple of a aterial re8uireents planning syste data!
a. Shop routings
b. $onsuer strategy
c. Shop<floor status
d. $osts