Question 1

A firm's process strategy defines the extent of customer involvement in providing a service.

Accepted Answer

A) True 
 B)False  True

Question 2

A company is considering producing an item that can be sold for $37.50 per unit.If the fixed costs for setting up production are $225,000 and the variable cost per unit for the item is $35 then the breakeven volume for this item is

Accepted Answer

A) 6,000 units. 
B) 6,429 units. 
C) 72,500 units. 
D) 90,000 units. 
A) 6,000 units. 
B) 6,429 units. 
C) 72,500 units. 
D) 90,000 units. D

Question 3

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. A

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Companies that control the production of virtually all of the parts that go into a product are said to be horizontally integrated.

Accepted Answer

A) True 
 B)False

Question 6

Variable demand and small-to-moderate quantities produced to-order are characteristics usually associated with

Accepted Answer

A) mass production. 
B) continuous production. 
C) projects. 
D) batch production. 
A) mass production. 
B) continuous production. 
C) projects. 
D) batch production.

Question 7

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 break-even volume for Process B 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 8

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

Accepted Answer

A) True 
 B)False

Question 9

Process design specifies what tasks need to be done and how they are to be coordinated among functions,people,and organizations.

Accepted Answer

A) True 
 B)False

Question 10

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 11

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 12

Producing a high volume of a single product is a characteristic of batch production.

Accepted Answer

A) True 
 B)False

Question 13

Mass production is often associated with assembly lines.

Accepted Answer

A) True 
 B)False

Question 14

Supplier reliability is often an important consideration in outsourcing decisions.

Accepted Answer

A) True 
 B)False

Question 15

Process innovation reflects the total redesign of a process for a breakthrough improvement.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not an advantage of batch production?

Accepted Answer

A) frequent changes in product mix 
B) flexibility 
C) customization of output 
D) quality reputation 
A) frequent changes in product mix 
B) flexibility 
C) customization of output 
D) quality reputation

Question 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

The extent to which the firm will produce the inputs and control the outputs of each stage of the production process is known as

Accepted Answer

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

Exam 8: Processes and Technology

A firm's process strategy defines the extent of customer involvement in providing a service.

A company is considering producing an item that can be sold for $37.50 per unit.If the fixed costs for setting up production are $225,000 and the variable cost per unit for the item is $35 then the breakeven volume for this item is

Most of the operations in batch production involve

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

Companies that control the production of virtually all of the parts that go into a product are said to be horizontally integrated.

Variable demand and small-to-moderate quantities produced to-order are characteristics usually associated with

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 break-even volume for Process B is

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

Process design specifies what tasks need to be done and how they are to be coordinated among functions,people,and organizations.

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

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

Producing a high volume of a single product is a characteristic of batch production.

Mass production is often associated with assembly lines.

Supplier reliability is often an important consideration in outsourcing decisions.

Process innovation reflects the total redesign of a process for a breakthrough improvement.

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

Which of the following is not an advantage of batch production?

Mass production systems tend to employ

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

The extent to which the firm will produce the inputs and control the outputs of each stage of the production process is known as

Introduction to Operations and Supply Chain Management

Supplement Operational Decision-Making Tools: Decision Analysis

Quality Management

Statistical Process Control

Supplement Operational Decision-Making Tools: Acceptance Sampling

Product Design

Service Design

Capacity and Facilities

Supplement Operational Decision-Making Tools: Facility Location Models

Human Resources

Supplement Operational Decision-Making Tools: Work Measurement

Project Management

Supply Chain Management Strategy and Design

Global Supply Chain Procurement and Distribution

Supplement Operational Decision-Making Tools: Transportation and Transshipment Models

Forecasting

Inventory Management

Supplement Operational Decision-Making Tools: Simulation

Sales and Operations Planning

Supplement Operational Decision-Making Tools: Linear Programming

Enterprise Resource Planning

Lean Systems

Scheduling

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