Question 1

Describe what the operations function is and how it relates to other business functions.

Accepted Answer

The answer of Describe what the operations function is and...

Question 2

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:  The expected value of perfect information for the family business is

Accepted Answer

A)  $602,500. 
B)  $540,000. 
C)  $62,500. 
D)  $25,000.

Question 3

Dividing a job into a series of small tasks each performed by a different worker is known as

Accepted Answer

A)  craft production. 
B)  scientific management. 
C)  division of labour. 
D)  interchangeable parts.

Question 4

Decision analysis is a quantitative technique supporting decision making with uncertainty.

Accepted Answer

A) True 
 B)False

Question 5

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:  The expected value for the medium investment decision is

Accepted Answer

A)  $600,000. 
B)  $540,000. 
C)  $330,000. 
D)  $165,000.

Question 6

The adaptation of mass production to emphasize efficiency, rather than quality is known as lean production.

Accepted Answer

A) True 
 B)False

Question 7

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 following payoff table describes the decision situation:  The best decision for the business using the equal likelihood criterion would be to

Accepted Answer

A)  make the large investment. 
B)  make the medium investment. 
C)  make the small investment. 
D)  choose increasing demand.

Question 8

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. The following payoff table describes the company's decision situation:  The regret that is associated with the decision to acquire competitor when demand is low is

Accepted Answer

A)  $0. 
B)  $525,000. 
C)  $1,250,000. 
D)  $1,275,000.

Question 9

Operations management is concerned only with the day-to-day operations of a firm's productive systems.

Accepted Answer

A) True 
 B)False

Question 10

Deployment is a step in strategy formulation that evaluates the alignment between core competencies and order winners.

Accepted Answer

A) True 
 B)False

Question 11

A retail operation is an example of an exchange transformation process.

Accepted Answer

A) True 
 B)False

Question 12

Globalization has affected both manufacturing and service operations.

Accepted Answer

A) True 
 B)False

Question 13

In a decision making situation, the events that may occur in the future are known as states of nature.

Accepted Answer

A) True 
 B)False

Question 14

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 acquire competitor decision is

Accepted Answer

A)  $250,000. 
B)  $160,000. 
C)  $700,000. 
D)  $1,200,000.

Question 15

Productivity can be increased by

Accepted Answer

A)  increasing outputs. 
B)  decreasing labour input. 
C)  decreasing energy input. 
D)  All of the above.

Question 16

Many companies now find it necessary to have some global presence to remain competitive.

Accepted Answer

A) True 
 B)False

Question 17

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 following payoff table describes the decision situation:  The best decision for the business using the maximax criterion would be to

Accepted Answer

A)  make the large investment. 
B)  make the medium investment. 
C)  make the small investment. 
D)  choose increasing demand.

Question 18

Productivity is the most common measure of competitiveness.

Accepted Answer

A) True 
 B)False

Question 19

A decision criterion that results in the maximum of the minimum payoffs is called a maximin criterion.

Accepted Answer

A) True 
 B)False

Question 20

Globalization of the supply chain for many products has many pros and few, if any, cons.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to Operations and Supply Chain Management

Describe what the operations function is and how it relates to other business functions.

Dividing a job into a series of small tasks each performed by a different worker is known as

Decision analysis is a quantitative technique supporting decision making with uncertainty.

The adaptation of mass production to emphasize efficiency, rather than quality is known as lean production.

Operations management is concerned only with the day-to-day operations of a firm's productive systems.

Deployment is a step in strategy formulation that evaluates the alignment between core competencies and order winners.

A retail operation is an example of an exchange transformation process.

Globalization has affected both manufacturing and service operations.

In a decision making situation, the events that may occur in the future are known as states of nature.

Productivity can be increased by

Many companies now find it necessary to have some global presence to remain competitive.

Productivity is the most common measure of competitiveness.

A decision criterion that results in the maximum of the minimum payoffs is called a maximin criterion.

Globalization of the supply chain for many products has many pros and few, if any, cons.