Question 1

Disadvantages of batch production include all of the following except

Accepted Answer

A)  high per-unit costs. 
B)  frequent changes in product mix. 
C)  flexibility. 
D)  scheduling problems. 
A)  high per-unit costs. 
B)  frequent changes in product mix. 
C)  flexibility. 
D)  scheduling problems.

Question 2

A company is considering producing a product for a new market. The fixed cost required for manufacturing and delivering the product is $50,000. Labor and material costs are estimated to be approximately $25 per product. If the product is sold for $35.00 each, the firm's breakeven volume would be

Accepted Answer

A)  50,000 units 
B)  5,000 units 
C)  2,500 units 
D)  500 units 
A)  50,000 units 
B)  5,000 units 
C)  2,500 units 
D)  500 units

Question 3

Mass production is characterized by high volumes of a customized product for a mass market.

Accepted Answer

A) True 
 B)False

Question 4

A print shop is an example of which of the following process choices?

Accepted Answer

A)  project 
B)  batch production 
C)  continuous production 
D)  mass production 
A)  project 
B)  batch production 
C)  continuous production 
D)  mass production

Question 5

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 6

Customers are rarely involved in a project that takes an extended period of time to complete.

Accepted Answer

A) True 
 B)False

Question 7

One-of-a-kind production of a product based on a customer's unique specifications is a called a project.

Accepted Answer

A) True 
 B)False

Question 8

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 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 9

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives   If total demand (volume) is 150,000 units, then the company should

Accepted Answer

A)  select Process A with a profit of $1,300,000 to maximize profit 
B)  select Process B with a profit of $750,000 to maximize profit 
C)  select Process A with a profit of $1,000,000 to maximize profit 
D)  select Process B with a profit of $1,050,000 to maximize profit 
A)  select Process A with a profit of $1,300,000 to maximize profit 
B)  select Process B with a profit of $750,000 to maximize profit 
C)  select Process A with a profit of $1,000,000 to maximize profit 
D)  select Process B with a profit of $1,050,000 to maximize profit

Question 10

Mass production is often associated with assembly lines.

Accepted Answer

A) True 
 B)False

Question 11

The organization's overall approach for producing goods and providing services is its process strategy.

Accepted Answer

A) True 
 B)False

Question 12

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 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 13

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives.   The breakeven volume for Process A is

Accepted Answer

A)  50,000 units. 
B)  62,500 units. 
C)  30,000 units. 
D)  20,000 units. 
A)  50,000 units. 
B)  62,500 units. 
C)  30,000 units. 
D)  20,000 units.

Question 14

The ease of adjusting resources in response to changes in demand defines a 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 15

Which of the following is not a characteristic of mass production?

Accepted Answer

A)  made-to-stock 
B)  stable demand 
C)  high product variety 
D)  high product volume 
A)  made-to-stock 
B)  stable demand 
C)  high product variety 
D)  high product volume

Question 16

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 17

Planning, analyzing, and improving processes is the function of operations management.

Accepted Answer

A) True 
 B)False

Question 18

A process is a group of unrelated tasks with specific inputs and outputs.

Accepted Answer

A) True 
 B)False

Question 19

Most of the operations in batch production involve assembly rather than fabrication.

Accepted Answer

A) True 
 B)False

Question 20

Supplier speed is rarely an important consideration in outsourcing decisions.

Accepted Answer

A) True 
 B)False

Exam 6: Processes and Technology

Disadvantages of batch production include all of the following except

A company is considering producing a product for a new market. The fixed cost required for manufacturing and delivering the product is $50,000. Labor and material costs are estimated to be approximately $25 per product. If the product is sold for $35.00 each, the firm's breakeven volume would be

Mass production is characterized by high volumes of a customized product for a mass market.

A print shop is an example of which of the following process choices?

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

Customers are rarely involved in a project that takes an extended period of time to complete.

One-of-a-kind production of a product based on a customer's unique specifications is a called a project.

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives If total demand (volume) is 120,000 units, then the company should

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives If total demand (volume) is 150,000 units, then the company should

Mass production is often associated with assembly lines.

The organization's overall approach for producing goods and providing services is its process strategy.

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 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?

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives. The breakeven volume for Process A is

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

Which of the following is not a characteristic of mass production?

Most of the operations in batch production involve

Planning, analyzing, and improving processes is the function of operations management.

A process is a group of unrelated tasks with specific inputs and outputs.

Most of the operations in batch production involve assembly rather than fabrication.

Supplier speed is rarely an important consideration in outsourcing decisions.

Introduction to Operations and Supply Chain Management

Quality Management

Statistical Process Control

Product Design

Service Design

Capacity and Facilities Design

Human Resources

Project Management

Supply Chain Management Strategy and Design

Global Supply Chain Procurement and Distribution

Forecasting

Inventory Management

Sales and Operations Planning

Resource Planning

Lean Systems

Operational Decision-Making Tools: Decision Analysis

Operational Decision-Making Tools: Acceptance Sampling

Operational Decision-Making Tools: Facility Location Models

Operational Decision-Making Tools: Work Measurement

Operational Decison-Making Tools: Transportation and Transshipment Models

Operational Decision-Making Tools: Simulation

Operational Decision-Making Tools: Linear Programming

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