Question 1

Mass production is characterized by the use of specialized equipment and workers with limited skills.

Accepted Answer

A) True 
 B)False

Question 2

A company is considering producing a product for a new market.The fixed costs required for manufacturing and delivering the product is $50,000.Labor and material costs are estimated to be approximately $25.00 per product.If the product is sold for $35.00 each,the firm's break-even volume would be

Accepted Answer

A) 50,000 units 
B) 5,000 units 
C) 2500 units 
D) 500 units 
A) 50,000 units 
B) 5,000 units 
C) 2500 units 
D) 500 units

Question 3

A process flowcharts is a useful tool for analyzing a process because it often highlights nonproductive activities.

Accepted Answer

A) True 
 B)False

Question 4

Process planning determines how a manufactured good is produced or a service is provided.

Accepted Answer

A) True 
 B)False

Question 5

Supplier speed is rarely an important consideration in outsourcing decisions.

Accepted Answer

A) True 
 B)False

Question 6

Batch production is also known as a job shop because it creates more jobs than any of the other process choices

Accepted Answer

A) True 
 B)False

Question 7

The ease of adjusting resources in response to changes in demand defines firm's

Accepted Answer

A) vertical integration 
B) process flexibility 
C) customer involvement 
D) capital intensity 
A) vertical integration 
B) process flexibility 
C) customer involvement 
D) capital intensity

Question 8

A firm's process strategy defines all of the following except its

Accepted Answer

A) capital intensity. 
B) process flexibility. 
C) vertical integration. 
D) process selection. 
A) capital intensity. 
B) process flexibility. 
C) vertical integration. 
D) process selection.

Question 9

Supplier reliability is often an important consideration in outsourcing decisions.

Accepted Answer

A) True 
 B)False

Question 10

Continuous production is characterized by very high volumes of commodity products.

Accepted Answer

A) True 
 B)False

Question 11

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit.The following cost information describes the two alternatives
 
If total demand volume)is 120,000 units,then the company should

Accepted Answer

A) select Process A with a profit of $940,000 to maximize profit 
B) select Process B with a profit of $450,000 to maximize profit 
C) select Process A with a profit of $700,000 to maximize profit 
D) select Process B with a profit of $690,000 to maximize profit 
A) select Process A with a profit of $940,000 to maximize profit 
B) select Process B with a profit of $450,000 to maximize profit 
C) select Process A with a profit of $700,000 to maximize profit 
D) select Process B with a profit of $690,000 to maximize profit

Question 12

Most of the operations in batch production involve

Accepted Answer

A) fabrication 
B) assembly 
C) continuous processing 
D) outsourcing 
A) fabrication 
B) assembly 
C) continuous processing 
D) outsourcing

Question 13

Mass production is characterized by the use of general equipment and highly skilled labor.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is NOT associated with the sourcing continuum?

Accepted Answer

A) Joint venture 
B) In-house production 
C) Strategic alliance 
D) Single contract 
A) Joint venture 
B) In-house production 
C) Strategic alliance 
D) Single contract

Question 15

A firm's process strategy rarely defines its capital intensity.

Accepted Answer

A) True 
 B)False

Question 16

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit.The following cost information describes the two alternatives
 
For what level of volume output)would the firm prefer Process A to Process B?

Accepted Answer

A) for all volume levels greater than 75,000 
B) for all volume levels greater than 97,500 
C) for all volume levels greater than 117,500 
D) for all volume levels greater than 125,000 
A) for all volume levels greater than 75,000 
B) for all volume levels greater than 97,500 
C) for all volume levels greater than 117,500 
D) for all volume levels greater than 125,000

Question 17

Mass production systems tend to employ

Accepted Answer

A) specialized equipment and limited labor skills. 
B) specialized equipment and specialized labor skills. 
C) general purpose equipment and limited labor skills. 
D) general purpose equipment and specialized labor skills. 
A) specialized equipment and limited labor skills. 
B) specialized equipment and specialized labor skills. 
C) general purpose equipment and limited labor skills. 
D) general purpose equipment and specialized labor skills.

Question 18

As process selection moves up the diagonal from project to continuous production

Accepted Answer

A) demand volume increases. 
B) product variety increases. 
C) capital intensity decreases. 
D) flexibility increases. 
A) demand volume increases. 
B) product variety increases. 
C) capital intensity decreases. 
D) flexibility increases.

Question 19

List some non-economic factors that can influence a firm's outsourcing decision.

Accepted Answer

There are several noneconomic factors wh

Question 20

Subcontracting is rarely a source of human resources for a project.

Accepted Answer

A) True 
 B)False

Exam 6: Processes and Technology

Mass production is characterized by the use of specialized equipment and workers with limited skills.

A company is considering producing a product for a new market.The fixed costs required for manufacturing and delivering the product is $50,000.Labor and material costs are estimated to be approximately $25.00 per product.If the product is sold for $35.00 each,the firm's break-even volume would be

A process flowcharts is a useful tool for analyzing a process because it often highlights nonproductive activities.

Process planning determines how a manufactured good is produced or a service is provided.

Supplier speed is rarely an important consideration in outsourcing decisions.

Batch production is also known as a job shop because it creates more jobs than any of the other process choices

The ease of adjusting resources in response to changes in demand defines firm's

A firm's process strategy defines all of the following except its

Supplier reliability is often an important consideration in outsourcing decisions.

Continuous production is characterized by very high volumes of commodity products.

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit.The following cost information describes the two alternatives If total demand volume)is 120,000 units,then the company should

Most of the operations in batch production involve

Mass production is characterized by the use of general equipment and highly skilled labor.

Which of the following is NOT associated with the sourcing continuum?

A firm's process strategy rarely defines its capital intensity.

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit.The following cost information describes the two alternatives For what level of volume output)would the firm prefer Process A to Process B?

Mass production systems tend to employ

As process selection moves up the diagonal from project to continuous production

List some non-economic factors that can influence a firm's outsourcing decision.

Subcontracting is rarely a source of human resources for a project.

Operations Management

Quality Management

Statistical Quality Control

Product Design

Service Design

Scheduling

Capacity and Facilities

Human Resources

Project Management

Supply Chain Management: Strategy and Design

Global Supply Chain Procurement and Distribution

Forecasting

Inventory Management

Operational Decision-Making Tools: Simulation

Operational Decision-Making Tools: Linear Programming

The Sales and Operations Planning Process

Resource Planning

Lean Systems

Operational Decision-Making Tools: Decision Analysis

Operational Decision-Making Tools: Acceptance Sampling

Decision-Making Tools: Facility Location Models

Operational Decision-Making Tools: Work Measurement

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