Goods And Services Test 1

Front 1

T/F: Operations management is the set of activities that create value in the form of goods and services by transforming inputs into outputs.

Back 1

True

Front 2

T/F: Information technology has allowed organizations to increase the levels of management that are used.

Back 2

False - Ethics and social responsibility

Front 3

T/F: Organizational politics takes a back seat to the interests of the organization as a whole.

Back 3

False - Developing missions and strategies

Front 4

T/F: Upper management uses summarized, unstructured information for decision-making purposes

Back 4

True - Strategy development and implementation

Front 5

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

Back 5

-marketing, operations, and finance/accounting

-organizing to produce goods and services

Front 6

Which of the following is not among the ethical and social challenges facing operations managers?

Back 6

-increasing executive pay

-ethics and social responsibility

Front 7

All of the following are methods to gain a competitive advantage except...?

Back 7

- standardize products and services

Front 8

Which of the following is not an operations strategy?

Back 8

-Experience

Front 9

A strategy is a(n)

Back 9

action plan to achieve the mission

Front 10

Senior managers.....

Back 10

1) make decisions that affect the entire organization in the long run
2) operate in highly unstructured environments
3) use highly summarized information based on a wide data scope

Front 11

Illustrate and characterize the traditional organizational pyramid

Back 11

Strategic (top): big decisions that affect entire company
Tactical (middle): take orders from senior executives
Operational Management: Managers who order the shop floor workers
Clerical and shop floor workers: People on the floor

Front 12

Explain the characteristics of information at different managerial levels.

Back 12

a. Strategic: EISs, DSSs, ESs
b. Tactical: DSSs, ESs
c. Operational: TPSs, Report-generating applications, electric monitoring of employees

Front 13

List and characterize the main ingredients of planning.

Back 13

a. Budgeting
i. Corporate budget
ii. Divisional budget
iii. Departmental
iv. Quarterly
v. Annual
b. Scheduling
i. Receiving raw materials
ii. Shipping products
iii. Meetings
iv. Hiring
v. Completion
vi. Work shifts
c. Resource Allocation
i. Personnel
ii. Equipment
iii. Consulting and professional services
iv. Discretionary funds

Front 14

List and describe eight ways to gain competitive advantage.

Back 14

a. Reduce costs
b. Raise barriers to market entry
c. Establish high switching cost
d. Create new products or services
e. Enhance products or services
f. Establish alliances
g. Lock in suppliers or buyers
h. Differentiate product or services

Front 15

What is the “bleeding edge”?

Back 15

When failure occurs because an organization tries to be on the technological leading edge, raise cost instead of profits

Front 16

T/F: The forecasting time horizon and the forecasting techniques used tend to vary over the life cycle of a product.

Back 16

True

Front 17

T/F: In trend projection, the trend component is the slope of the regression equation.

Back 17

True

Front 18

T/F: A time-series model uses a series of past data points to make the forecast.

Back 18

True

Front 19

Forecasts

Back 19

-Are rarely perfect

Front 20

Forecasts used for new product planning, capital expenditures, facility location or expansion, and R&D typically utilize a....

Back 20

long-range time horizon

Front 21

The three major types of forecasts used by business organizations are....

Back 21

economic, technological, and demand

Front 22

The two general approaches to forecasting are....

Back 22

qualitative and quantitative

Front 23

In time series, which of the following cannot be predicted?

Back 23

Random fluctuations

Front 24

Groupware helps workers...

Back 24

a. communicate ideas from different locations
b. brainstorm
c. work together
d. track documents

Front 25

A forecast based on the previous forecast plus a percentage of the forecast error is a(n).....

Back 25

exponentially smoothed forecast

Front 26

What is the approximate forecast for May using a four-month moving average?
Nov. Dec. Jan. Feb. Mar.April
39 36 40 42 48 46

Back 26

44

Front 27

Distinguish between effectiveness and efficiency in an organizational environment.

Back 27

Effectiveness: the degree to which a goal is achieved. Depends on how much of the goal achieved and the degree to which it achieves better outcomes than other systems do
Efficiency: The relationship between resources expended and benefits gained in achieving a goal (efficiency = benefits/costs)

Front 28

Discuss five different applications of information systems in the different departments of an organization.

Back 28

-Marketing and Sales
-Human Resource Management
-Accounting
-Finance
-Engineering
-Manufacturing and Inventory Control
-Marketing and Sales

Front 29

Distinguish between qualitative and quantitative forecasting methods.

Back 29

Qualitative: opinions and intuition
Quantitative: mathematical models and relevant historical data

Front 30

Discuss the steps in the CPFR process model.

Back 30

1. Develop Collaboration Arrangement
a. Buyer and seller agree on the objective of the collaboration
2. Create Joint Business Plan
a. Sharing companies business strategies and plans
3. Create Sales Forecast
4. Identify Exceptions for Sales Forecast
5. Resolve/Collaborate on Exception Items
6. Create Order Forecast
a. Data are analyzed
7. Identify Exceptions for Order Forecast
a. Things that fall outside the order forecast
8. Resolve/Collaborate on Exception Items
a. Examining the shared data
9. Order Generation
a. Converting the order forecast into a committed order

Front 31

List and discuss the four components of time series data.

Back 31

1. Trend Variations
i. Increasing or decreasing movements over many years
2. Cyclical Variations
i. Wavelike movements that are longer than a year and influenced by macroeconomic and political factors
3. Seasonal Variations
i. Peaks and valets that repeat over a consistent interval such as hours, days, weeks, months, years, or seasons
4. Random Variations
i. Due to unexpected or unpredictable events such as natural disasters

Front 32

T/F: A major challenge in inventory management is to maintain a balance between inventory investment and customer service.

Back 32

True

Front 33

T/F: ABC analysis classifies inventoried items into three groups, usually based on annual units or quantities used.

Back 33

False - Inventory management

Front 34

Retail inventory that is unaccounted for between receipt and time of sale is known as shrinkage.

Back 34

True

Front 35

Reduced inventory levels and faster response to market changes are both benefits of MRP.

Back 35

True

Front 36

A bill of materials lists all components, ingredients, and materials needed to produce one unit of an end item.

Back 36

True

Front 37

Inventory visibility can result in significant benefits to companies including reduced costs and reduced stockouts.

Back 37

True

Front 38

Waste is anything that does not add value, such as storage or inspection of items; waste also includes any activity that does not add value from the consumer's perspective.

Back 38

True

Front 39

Many suppliers feel that having a variety of customers is better than being tied to long-term contracts with one customer.

Back 39

True

Front 40

Because JIT and lean production root out activities that add no value in production or to the consumer, they are socially responsible practices.

Back 40

True

Front 41

Inventory as a percentage of overall business activity continues to decline.

Back 41

True

Front 42

ABC analysis is based upon the principle that

Back 42

there are usually a few critical items, and many items which are less critical

Front 43

Categories of inventory include all of the following except

Back 43

Hedge

Front 44

Most inventory models attempt to minimize

Back 44

total inventory based costs

Front 45

The phrase "demand related to the demand for other products" describes

Back 45

dependent demand

Front 46

A master production schedule specifies

Back 46

what product is to be made, and when

Front 47

Which of the following statements regarding a pull system is true?

Back 47

Problems become more obvious.

Front 48

Explain the concept of EOQ.

Back 48

a. Economic Order Quantity is the size of the order, which gives maximum economy in purchasing any material and ultimately contributes towards maintaining the materials at the optimum level and minimum costs. Determined by the cost of possessing or carrying the materials and the cost of acquiring or ordering materials.

Front 49

Explain the concept of JIT.

Back 49

a. “Just-in-time” inventory strategy. This is when companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process. This reduced inventory costs. To successfully fulfill this method, producers must be able to accurately forecast demand.