Deck 3: Demand Forecasting

Question 1

There are four perspectives on operations strategy. The term 'core competency' is most closely associated with which perspective?

A) Market requirements perspective
B) Operations resources perspective
C) Top-down perspective
D) Bottom-up perspective

Answer 1

Operations resources perspective

Question 2

A qualifying factor could be described as:

A) A factor which directly and significantly contributes to winning business
B) A factor which is at a higher level than the standard for the industry
C) A factor which has to be above a particular level to be considered by the customer
D) A factor which may be of significance in other parts of the organisation

Answer 2

A factor which has to be above a particular level to be considered by the customer

Question 3

In this question you need to match the competitive factor that customers value with the performance objective that the operation needs to excel at. If the customers value low price then
The operation will need to excel at:

A) Dependability
B) Cost
C) Quality
D) Flexibility (mix)
E) Flexibility (products/service)
F) Flexibility (volume and/or delivery)
G) Speed

Answer 3

Cost

Question 4

Strategic decisions are those which:

A) Only involve senior managers
B) Seek to move the whole organisation towards its overall long-term goals
C) Require the input of external consultants and management accountants.
D) Define the position of a business unit with respect to its operational capabilities

Question 5

In the decline stage of the product/service life cycle the operation is likely to focus on which combination of performance objectives?

A) Cost.
B) Speed, Dependability and Quality.
C) Speed, Dependability and Cost.
D) Dependability, Quality and Cost.

Question 6

In this question you need to match the competitive factor that customers value with the performance objective that the operation needs to excel at. If the customers value a wide range of
Products and services then the operation will need to excel at:

A) Dependability
B) Flexibility (volume and/or delivery)
C) Speed
D) Flexibility (products/service)
E) Flexibility (mix)
F) Cost
G) Quality

Question 7

In this question you need to match the competitive factor that customers value with the performance objective that the operation needs to excel at. If the customers value high quality then
The operation will need to excel at:

A) Cost
B) Quality
C) Dependability
D) Flexibility (mix)
E) Flexibility (volume and/or delivery)
F) Speed
G) Flexibility (products/service)

Question 8

Which of the following stages is not included in the product/service life cycle?

A) Introduction
B) Decline
C) Growth
D) Maturity
E) Redundancy

Question 9

In this question you need to match the competitive factor that customers value with the performance objective that the operation needs to excel at. If the customers value reliable delivery
Then the operation will need to excel at:

A) Speed
B) Quality
C) Dependability
D) Flexibility (volume and/or delivery)
E) Cost
F) Flexibility (mix)
G) Flexibility (products/service)

Question 10

There are four perspectives on operations strategy. The term 'emergent strategy' is most closely associated with which perspective?

A) Top-down perspective
B) Operations resources perspective
C) Market requirements perspective
D) Bottom-up perspective

Question 11

An order-winning factor could be described as:

A) A factor which is at a higher level than the standard for the industry
B) A factor which may be of significance in other parts of the organisation
C) A factor which directly and significantly contributes to winning business
D) A factor which has to be above a particular level to be considered by the customer

Question 12

A less important factor may well be:

A) A factor which is at a higher level than the standard for the industry
B) A factor which may be of significance in other parts of the organisation
C) A factor which directly and significantly contributes to winning business
D) A factor which has to be above a particular level to be considered by the customer

Question 13

Which of the following competitive factors and performance objectives is unlikely to satisfy customers?

A) Reliable delivery leading to a need to excel at effective customer service.
B) A wide range of products and services underpinned by excellence at flexible operations.
C) Low quality leading to a need to excel at producing large quantities at low prices.
D) Low price leading to a need to excel at low cost.
E) Speed of operations leading to a need to excel at efficient distribution.

Question 14

In this question you need to match the competitive factor that customers value with the performance objective that the operation needs to excel at. If the customers value the ability to
Change the timing or quantity of products and services then the operation will need to excel at:

A) Flexibility (mix)
B) Cost
C) Speed
D) Quality
E) Flexibility (volume and/or delivery)
F) Dependability
G) Flexibility (products/service)

Question 15

In this question you need to match the competitive factor that customers value with the performance objective that the operation needs to excel at. If the customers value fast delivery then
The operation will need to excel at:

A) Cost
B) Dependability
C) Flexibility (products/service)
D) Speed
E) Flexibility (mix)
F) Flexibility (volume and/or delivery)
G) Quality

Question 16

In operations management, inventory strategy does not include:

A) Where stocks should be located
B) What the composition of stocks should be
C) How stock sizes should be controlled
D) How much stock to have
E) How suppliers should be chosen

Question 17

Structural strategic decisions that do not influence facilities issues include:

A) What capacity should be allocated at each plant
B) What activities should be allocated to each plant
C) Where the operations facilities should be located
D) The number of geographically separate sites required
E) What broad types of technology should be used

Question 18

The determination of performance priorities is normally influenced by:

A) The specific needs of the company's customer groups
B) The stage of the life cycle at which the product or service stands
C) The activities of the company's competitors
D) All of the above

Question 19

In the maturity stage of the product/service life cycle the operation is likely to focus on which combination of performance objectives?

A) Dependability and Cost.
B) Speed, Dependability and Quality.
C) Speed, Quality and Cost.
D) Speed, Dependability and Cost.

Question 20

In this question you need to match the competitive factor that customers value with the performance objective that the operation needs to excel at. If the customers value low price then
The operation will need to excel at:

A) Flexibility (volume and/or delivery)
B) Quality
C) Cost
D) Flexibility (mix)
E) Flexibility (products/service)
F) Speed
G) Dependability

Question 21

In this question focusing on the structural and infra-structural decision areas you need to match
the question with the correct strategy. Question: How should the operation's performance be
measured?

A) Vertical integration strategy
B) Facilities strategy
C) Technology strategy
D) Workforce and organisation strategy
E) Failure prevention and recovery strategy
F) Inventory strategy
G) New product/service development strategy
H) Improvement strategy
I) Supplier development strategy
J) Capacity adjustment strategy

Question 22

The process of operations strategy comprises the specific decisions and actions which set the
operations role, objectives and activities.

Question 23

In this question focusing on the structural and infra-structural decision areas you need to match
the question with the correct strategy. Question: Should the operation expand by acquiring its
suppliers or its customers?

A) Workforce and organisation strategy
B) New product/service development strategy
C) Capacity adjustment strategy
D) Facilities strategy
E) Improvement strategy
F) Vertical integration strategy
G) Technology strategy
H) Inventory strategy
I) Planning and control systems strategy
J) Supplier development strategy

Question 24

In this question focusing on the structural and infra-structural decision areas you need to match
the question with the correct strategy. Question: What number of geographically separate sites
should the operation have?

A) Supplier development strategy
B) Vertical integration strategy
C) Inventory strategy
D) Improvement strategy
E) New product/service development strategy
F) Capacity adjustment strategy
G) Workforce and organisation strategy
H) Planning and control systems strategy
I) Facilities strategy
J) Technology strategy

Question 25

The method used to make specific content decisions is called:

A) The codification of operations strategy
B) The content of operations strategy
C) The tangibles of operations strategy
D) The process of operations strategy

Question 26

In this question focusing on the structural and infra-structural decision areas you need to match
the question with the correct strategy. Question: How should the operation forecast and monitor
the demand for its products and services?

A) Inventory strategy
B) Planning and control systems strategy
C) Technology strategy
D) Supplier development strategy
E) New product/service development strategy
F) Capacity adjustment strategy
G) Facilities strategy
H) Improvement strategy
I) Failure prevention and recovery strategy
J) Workforce and organisation strategy
K) Vertical integration strategy

Question 27

What is the term where operations improvements cumulatively build strategy?

A) Capability strategy
B) Bottom up strategy
C) Inductive strategy
D) Requirement strategy

Question 28

In terms of strategy, the role of operations is largely one of implementing or operationalising
business strategy.

Question 29

In this question focusing on the structural and infra-structural decision areas you need to match the question with the correct strategy. Question: What system should the operation use to plan its
Activities?

A) Workforce and organisation strategy
B) Improvement strategy
C) New product/service development strategy
D) Inventory strategy
E) Planning and control systems strategy
F) Supplier development strategy
G) Technology strategy
H) Facilities strategy
I) ilure prevention and recovery strategy
J) Vertical integration strategy
K) Capacity adjustment strategy

Question 30

Which of the following is NOT one of the four perspectives of operations strategy noted by Slack and Lewis?

A) Capabilities of operations resources
B) Market requirements
C) Organizational behaviour
D) Top down

Question 31

Whilst the top-down perspective provides a view of how functional strategies should be put
together, the relationship between the levels in the strategy hierarchy is more complex in reality.

Question 32

Strategy is more than a single decision: it is the total pattern of decisions and actions.

Question 33

In this question focusing on the structural and infra-structural decision areas you need to match
the question with the correct strategy. Question: What skills should be developed in the staff of the
operation?

A) Technology strategy
B) Vertical integration strategy
C) Planning and control systems strategy
D) Facilities strategy
E) Supplier development strategy
F) Workforce and organisation strategy
G) New product/service development strategy
H) Failure prevention and recovery strategy
I) Improvement strategy
J) Inventory strategy
K) Capacity adjustment strategy

Question 34

The procedures and models which are used to make strategic decisions - the how questions of strategy - are known as:

A) The process of strategy
B) The operationalisation of strategy
C) The intangibles of strategy
D) The content of strategy

Question 35

In this question focusing on the structural and infra-structural decision areas you need to match the question with the correct strategy. Question: What balance of capabilities should it develop
Along its network of operations?

A) Vertical integration strategy
B) New product/service development strategy
C) Failure prevention and recovery strategy
D) Technology strategy
E) Facilities strategy
F) Capacity adjustment strategy
G) Supplier development strategy
H) Planning and control systems strategy
I) Inventory strategy
J) Workforce and organisation strategy
K) Improvement strategy

Question 36

The hierarchical model of strategy in the top-down perspective is intended to represent the way
strategies are usually formulated.

Question 37

Whilst understanding markets is usually thought of as the domain of the marketing function, a
market perspective is also of importance to operations management.

Question 38

What term reflects what the whole group or business wants to do?

A) Leadership strategy
B) Market requirements strategy
C) Top down strategy
D) Hierarchical strategy

Question 39

An alternative view to the top-down perspective is that many strategic ideas emerge over time from operational experience. This perspective is called:

A) Group learning
B) Experimental
C) Bottom up
D) Experiential

Question 40

Each business unit within the corporate group will need to put together its own strategy. This is called:

A) Corporate strategy
B) Business strategy
C) Functional strategy
D) Operations strategy

Question 41

What influence is occurring when corporate or business strategies impact on operations decisions?

A) Hierarchical
B) Leadership
C) Bottom up
D) Top down

Question 42

An internally supportive operations function will:

A) Be clearly the best in the industry
B) Stop holding the organisation back
C) Be as good as competitors
D) Redefine the industry's expectations

Question 43

If customers value innovative products and services, the operation will need to excel at which performance objective?

A) Dependability
B) Quality
C) Flexibility
D) Speed

Question 44

What is the perspective on strategy that stresses the importance of capabilities in determining sustainable competitive advantage?

A) Agency Theory
B) Disconfirmation Theory
C) System Theory
D) Resource Based View

Question 45

A strategy that is gradually shaped over time and based on experience rather than theoretical positioning is called:

A) Emergent strategy
B) Transcendental strategy
C) Implicit strategy
D) Consensual strategy

Question 46

If customers value the ability to change the timing or quantity of products and services, the operation will need to excel at which performance objective?

A) Quality
B) Speed
C) Flexibility
D) Dependability

Question 47

Stage 4 of Hayes and Wheelwright's model of operations contribution is internally supportive.

Question 48

Factors which define the customers' requirements are called:

A) Performance objectives
B) Order-winning factors
C) Qualifying factors
D) Competitive factors

Question 49

Which of the following competitive factors are most valued by quick-fit customers?

A) Wide range of products and services, fast delivery
B) High quality, low price and fast delivery
C) Low price, innovative products and services
D) Low price, fast and reliable delivery

Question 50

Rapid growth in sales volume tends to occur at which stage of the product-service life cycle?

A) Growth
B) Introduction
C) Decline
D) Maturity

Question 51

Which of the following is NOT true of the maturity stage of the product-service life cycle?

A) Declining number of competitors.
B) Emerging dominant types of product/service design.
C) Dependable supply is a likely order winner.
D) Sales slow down and level off.

Question 52

Which of the following roles must operations take on in relation to business strategy?

A) Implementer
B) Driver
C) Supported
D) All of the above

Question 53

The overall direction and role of a function within a business is:

A) A business strategy
B) A group strategy
C) A functional strategy
D) An operational strategy

Question 54

According to the Hayes and Wheelwright model, the increasing strategic contributions of operations are:

A) Internally neutral / externally neutral / internally supportive / externally supportive
B) Internally non-contributive / externally non-contributive / internally strategic / externally strategic
C) Inwardly defensive / outwardly defensive / inwardly contributive / outwardly contributive
D) Externally neutral / internally neutral / externally supportive / internally supportive
E) Defensive / contributive / supportive / manipulative

Question 55

The bulk of the market in terms of customers is fulfilled at which stage of the product-service life cycle?

A) Decline
B) Maturity
C) Introduction
D) Growth

Question 56

The way in which market requirements and operations capabilities are reconciled relates to:

A) Operations Management
B) Long-term Forecasting
C) Operations Strategy
D) Market Integration

Question 57

What name is given to the model devised by Hayes and Wheelwright that categorizes the degree to which operations has a positive influence on overall strategy?

A) Two-stage model of operations contribution
B) Five-stage model of operations contribution
C) Three-stage model of operations contribution
D) Four-stage model of operations contribution

Question 58

Considering the ability to produce products and services in a way that will satisfy the market is an example of:

A) The operations resources perspective
B) The bottom up perspective
C) The market requirements perspective
D) The top down perspective

Question 59

Slack describes operations as potentially having three strategic roles within an organisation. Which one is correct?

A) Implementer / supporter / driver
B) Follower / supporter / facilitator
C) Implementer / supplicant / follower
D) Decider / implementer / recipient
E) Follower / supporter / driver

Question 60

Early adopters of products or services can be found at which stage of the product-service life cycle?

A) Maturity
B) Growth
C) Introduction
D) Decline

Question 61

Externally neutral operations:

A) Give an operations advantage
B) Correct the worst problems
C) Link strategy with operations
D) Adopt best practice

Question 62

Internally neutral organisations:

A) Correct the worst problems
B) Link strategy with operations
C) Adopt best practice
D) Give an operations advantage