Exam 1: Introduction to Operations and Supply Chain Management

A family business is considering making an investment in its manufacturing operation. Three decisions are under consideration: (1) a large investment; (2) a medium investment; and (3) a small investment. The business believes that there are three possible future outcomes for its product: (1) increasing demand; (2) stable demand; and (3) decreasing demand. The business believes that the probability for increasing, stable and decreasing product demand are 0.4, 0.5, and 0.1, respectively. The following payoff table describes the decision situation: If the expected value criterion is used then the best decision would be to

When probabilities can be assigned to the occurrence of states of nature in the future, the situation is referred to as

The major factors impacting globalization of the supply chain include all the following except

The outcome of a decision in referred to as a payoff.

All of the following are responsibilities of operations managers except

A sequential decision tree is a graphical method for analyzing decision situations that require a sequence of decisions over time.

Operations management designs, operates, and improves productive systems.

Discuss how and why businesses operate globally and the rolesand the roles China and India play in the current global market.

The systematic analysis of work methods is known as scientific management.

A warehouse operation is an example of a physical transformation process.

Operations research is concerned with the systematic analysis of work methods.

The transformation process associated with health care is best described as

A nation's productivity is unrelated to its standard of living.

Productivity increases enable a nation to raise its standard of living.

An order qualifier is a customer criterion that wins the order.

Positioning is a step in strategy formulation that compares core competencies and order winners.

A small parts manufacturer has just engineered a new product for the automotive industry. In order to produce the part the company can expand existing facilities, acquire a competitor, or subcontract production. The company believes the product will either experience high market demand or low market demand, with probabilities of 0.6 and 0.4, respectively. The following payoff table describes the company's decision situation: The expected value for the expand facilities decision is

The most widely used decision-making criterion for situations with risk is expected value.

The production system that prizes flexibility over efficiency and quality over quantity is known as

The set of activities that create and deliver products to the customer is known as the supply chain.