CHƯƠNG 1

1) Which of the following is a reason for studying operations and supply chain
management
(OSCM)?
A) OSCM is essential for understanding organizational behavior.
B) Most business graduates do OSCM work regardless of their job title.
C) All managers should understand the basic principles that guide the design of
transformation processes.
D) OSCM is a required course in all business degree programs.
E) OSCM is the most rigorous business discipline.
2) Which of the following sets of categories the Goods-Services Continnuum consists
of?
A) No goods, some goods, even mix, some service, no service.
B) Pure goods, core goods, core services, pure services.
C) No service, some service, good service, excellent service.
D) Self-service, help desk service, face-to-face service, service-with-a-smile.
E) None of these.
3) Which of the following are defined as core goods?
A) Chemicals.
B) Airlines.
C) Data storage systems.
D) Hotels.
E) None of these.
4) Current issues in OSCM do not include _____________blank.
A) coordinating relationships between organizations
B) making senior management aware that OSCM can be a competitive weapon
C) managing customer touch points
D) increasing global supply chain employment
5) Which of the following are not listed in the text as jobs in OSCM?
A) Department store manager.
B) Project manager.
C) Hospital administrator.
D) Data center manager.
E) Call center manager.
6) Which of the following is not a characteristic that distinguishes services from
goods?
A) Service jobs are unskilled.
B) A service is intangible.
C) Services are perishable.
D) Services are heterogeneous.
E) None of these.
7) Which of the following is not a way that operations and supply processes are
categorized?
A) Planning.
B) Returning.
C) Delivering.
D) Selecting.
E) Making.
8) One of the "package of features" that makes up a service is _____________blank.
A) appearance.
B) facilitating goods.
C) packaging.
D) cost.
E) implied use.
9) Which of the following is not a measure of operations and supply chain
management
efficiency used by Wall Street?
A) Inventory turnover.
B) Days inventory.
C) Receivable turnover.
D) Earnings per share.
E) Asset turnover.
10) Which of the following is a measure of operations and supply management
efficiency
used by Wall Street?
A) Dividend payout ratio.
B) Current ratio.
C) Receivables turnover.
D) Earnings per share growth.
E) Financial leverage.
11) Managing customer touch points becomes a concern under current issues in
OCSM when _____________blank.
A) complaints arise about shaking hands with customers in cultures that is frowned
upon
B) firms striving to become superefficient begin to scrimp on staffing and training
customer support personnel
C) a firm has a workforce trained in specifically diverse situations and the correct
level of
service may be hard to discern
D) firms market global products
E) senior executives fail to recognize the contribution OCSM can make to their
success
12) When considering the concept of value, how is quality defined?
A) By the price of the product.
B) By the producer’s reputation in the industry.
C) By the weight of the product.
D) By the attractiveness of the product, considering its features and durability.
E) By the product’s uniqueness relative to other similar products.
13) All other things remaining the same, if the revenue or sales decreases, asset
turnover ratio will _____.
A) decrease
B) increase
C) stay the same
D) will decrease, but the amount of change will depend on the profit margin
E) decrease and will decrease, but the amount of change will depend on the profit
margin
14) Which of the following is the most appropriate regarding inventory turnover?
A. Inventory turnover increases as average inventory decreases, while other things
remain the same.
B. Inventory turnover is an efficiency measure.
C. Inventory turnover is unaffected by changes in annual sales.
A) Choice A
B) Choice B
C) Choice C
D) Choices A and B only
E) Choices A, B and C will hold
15) Identify the most appropriate answer regarding cash conversion cycle.
A. Is also known as cash-to-cash cycle.
B. Cash conversion cycle goes down if payable period goes up.
C. Cash conversion cycle goes up if average inventory goes up.
A) Choice A
B) Choice B
C) Choice C
D) Choices A and B are correct
E) Choices A, B and C are all correct
16) Efficiency means doing the right things to create the most value for the company.
⊚ true
⊚ false
17) Effectiveness means doing the right things to create the most value for the
company.
⊚ true
⊚ false
18) A doctor completes a surgical procedure on a patient without error. The patient
dies
anyway. In operations management terms, we could refer to this doctor as being
efficient but not effective.
⊚ true
⊚ false
19) A worker can be efficient without being effective.
⊚ true
⊚ false
20) A process can be effective without being efficient.
⊚ true
⊚ false
21) Operations and supply chain management is defined as the design, operation, and
improvement of the systems that create and deliver the firm's primary products and
services.
⊚ true
⊚ false
22) The term "value" refers to the relationship between quality and the price paid by
the
consumer.
⊚ true
⊚ false
23) Attempting to balance the desire to efficiently use resources while providing a
highly effective service may create conflict between the two goals.
⊚ true
⊚ false
24) Central to the concept of operations strategy are the concepts of operations focus
and trade-offs.
⊚ true
⊚ false
25) OSCM is concerned with management of the trickiest parts of the system that
produces a good or delivers a service.
⊚ true
⊚ false
26) OSCM is a functional field of business with clear line management
responsibilities.
⊚ true
⊚ false
27) The supply network can be thought of as a pipeline through which cash, material,
and
information flow.
⊚ true
⊚ false
28) Supply networks cannot be constructed for every product or service.
⊚ true
⊚ false
29) "Operations" refers to manufacturing and service processes used to transform
resources employed by a firm into products desired by customers.
⊚ true
⊚ false
30) "Supply Chain" refers to processes that move information and material to and
from the manufacturing and service processes of the firm.
⊚ true
⊚ false
31) "Supply Chain" includes only inbound freight and inventory.
⊚ true
⊚ false
32) It is critical that a sustainable strategy meet the needs of shareholders and
employees. It is also highly desirable that it preserves the environment.
⊚ true
⊚ false
33) Planning is where a firm must determine how anticipated demand will be met with
available resources.
⊚ true
⊚ false
34) Although planning involves determining how the various supply chain processes
(sourcing, making, delivering, and returning) will be met, planning itself is not
considered a supply chain process.
⊚ true
⊚ false
35) The supply chain processes mentioned in the textbook are: planning, sourcing,
delivering, and returning only.
⊚ true
⊚ false
36) All managers should understand the basic principles that guide the design of
transformation processes.
⊚ true
⊚ false
37) Operations and supply management changes constantly because of the dynamic
nature of competing in global business and the constant evolution of information
technology.
⊚ true
⊚ false
38) Internet technology has made the sharing of reliable real-time information
expensive.
⊚ true
⊚ false
39) Capturing information directly from the source through such systems as
point-of-sale, radio-frequency identification tags, bar-code scanners, and automatic
recognition has had little impact on Operations and Supply Chain Management.
⊚ true
⊚ false
40) Use of systems like point-of-sale, radio-frequency identification tags, bar-code
scanners, and automatic recognition has made it more difficult to understand what all
the information is saying.
⊚ true
⊚ false
41) Operations and supply chain processes can be conveniently categorized as
planning,
sourcing, making, and delivering only.
⊚ true
⊚ false
42) A major aspect of planning involves developing a set of metrics to monitor the
supply
chain.
⊚ true
⊚ false
43) Returning involves processes for receiving worn-out, defective, and excess
products back from customers but does not involve support for customers who have
problems with the product.
⊚ true
⊚ false
44) Delivering is not considered in supply chain analysis when outside carriers are
contracted to move products to customers.
⊚ true
⊚ false
45) Services are intangible processes that cannot be weighed or measured.
⊚ true
⊚ false
46) Service innovations can be patented.
⊚ true
⊚ false
47) Services are homogeneous.
⊚ true
⊚ false
48) Services are defined and evaluated as a package of features that affect the five
senses.
⊚ true
⊚ false
49) Automobiles and appliances are classified as "pure goods."
⊚ true
⊚ false
50) Core service providers integrate tangible goods into their product.
⊚ true
⊚ false
51) "Product-service bundling" refers to a company building service activities into its
product offerings for its customers.
⊚ true
⊚ false
52) In contrast to careers in finance and marketing, careers in OSCM include hands-on
involvement with people and processes.
⊚ true
⊚ false
53) A bank branch manager position is not an OSCM job.
⊚ true
⊚ false
54) A supply chain manager is an OSCM job while a purchasing manager is not.
⊚ true
⊚ false
55) Just-in-time (JIT) production was a major breakthrough in manufacturing
philosophy
pioneered by the Japanese.
⊚ true
⊚ false
56) Lean manufacturing refers to just-in-time production coupled with total quality
control.
⊚ true
⊚ false
57) The Baldrige National Quality Award was started under the direction of the
National
Institute of Standards and Technology.
⊚ true
⊚ false
58) The approach that advocates making revolutionary changes as opposed to
evolutionary changes is called creation theory.
⊚ true
⊚ false
59) The approach that advocates making revolutionary changes as opposed to
evolutionary changes is called "Business Process Reengineering."
⊚ true
⊚ false
60) Business Process Reengineering, which seeks revolutionary change, is contrasted
with total quality management which commonly advocates incremental change.
⊚ true
⊚ false
61) The "triple bottom line" relates to the economic, employee, and environmental
impact of a firm's strategy.
⊚ true
⊚ false
62) Sustainability is the ability to maintain profits in a system.
⊚ true
⊚ false
63) Raising senior management awareness of OSCM as a competitive weapon is not
an
important issue.
⊚ true
⊚ false
64) Green and Black Belt Programs teach Six-Sigma quality tools to managers at
many
corporations.
⊚ true
⊚ false
65) The central idea of supply chain management is to apply a total system approach
to
managing the flow of information, materials, and services from raw material suppliers
through factories and warehouses to the end customer.
⊚ true
⊚ false
66) The term "electronic commerce" refers to the buying and selling of electronic
products and devices.
⊚ true
⊚ false
67) The term "electronic commerce" refers to the use of the Internet as an essential
element of business activity.
⊚ true
⊚ false
68) "Business Analytics" involves the analysis of data through a unique combination
of linear programming, game theory, and queuing theory to better solve business
problems.
⊚ true
⊚ false
69) The mathematical results of Business Analytics are used to automate decision
making and eliminate the decision maker.
⊚ true
⊚ false
70) Operations and supply chain strategy are not important issues to investors who
tend to focus on growth, dividends, and earnings per share.
⊚ true
⊚ false
71) Investors pay close attention to efficiency and productivity measures like net
income per employee because they are interested in how well the firm manages its
workforce relations.
⊚ true
⊚ false
72) During a recession, efficient firms often have an opportunity to increase market
share while maintaining profitability.
⊚ true
⊚ false
73) Wall Street analysts are not particularly concerned with how efficient companies
are from an operations and supply management view.
⊚ true
⊚ false

CHƯƠNG 2
1) Which of the following is not a major strategic operational competitive dimension
that forms a company's competitive position?
A) Management acumen.
B) Coping with changes in demand.
C) Cost or price.
D) Delivery speed.
E) Delivery reliability.
2) Which of the following major competitive dimension forms a company's strategic
operational competitive position in their strategic planning?
A) Cost or price.
B) Focus.
C) Automation.
D) Straddling.
E) Activity-system mapping.
3) When developing an operations and supply chain strategy, which of the following is
an
important product-specific criterion to consider?
A) Technical liaison.
B) Learning curve.
C) Competitor's product performance.
D) Production lot-size.
E) Total quality management.
4) In development of an operations and supply chain strategy, which of the following
may be an important product-specific criterion to consider?
A) Focus.
B) Production lot-size.
C) Supplier after-sale support.
D) Learning curve.
E) Total quality management.
5) A company seeks to match the benefits of a successful position while maintaining
its
existing position in offering customers a variety of differing services. How is this
process called?
A) Operations capability analysis.
B) Straddling.
C) Order qualifying.
D) Order winning.
E) Inter-functional analysis.
6) Which of the following is an activity-system map?
A) A network guide to route airlines.
B) A listing of activities that make up a project.
C) A diagram that shows how a company's strategy is delivered to customers.
D) A facility layout schematic noting what is done where.
E) A timeline displaying major planned events.
7) Which of the following is a partial measure of productivity?
A. Output / Materials
B. Output / (Labor + Capital + Energy)
C. Output / All resources used
D. Output / Inputs
Version 1 3
A) Choice A
B) Choice B
C) Choice C
D) Choice D
E) All of these
8) Which of the following is a multifactor measure of productivity?
A. Output / (Materials)
B. Output / (Labor + Capital + Energy)
C. Output / All resources used
D. Output / Inputs
A) Choice A
B) Choice B
C) Choice C
D) Choice D
E) All of these
9) Which of the following is a total measure of productivity?
A. Output / Materials
B. Output / (Labor + Capital + Energy)
C. Output / Labor
D. Output / Inputs
Version 1 4
A) Choice A
B) Choice B
C) Choice C
D) Choice D
E) All of these
10) If all you knew about a production system was that total daily output was 400
units and the total labor necessary to produce the 400 units was 350 hours, what kind
of productivity measure could you use to compute productivity?
A. Partial measure
B. Multifactor measure
C. Total measure
D. Global measure
A) Choice A
B) Choice B
C) Choice C
D) Choice D
E) All of these
11) If all you knew about a production system was that total daily output was 400
units and the total labor necessary to produce the 400 units was 350 hours, and the
total materials used were 425 units, what kind of productivity measure could you use
to compute productivity?
A. Partial measure
B. Multifactor measure
C. Total measure
A) Choice A
B) Choice B
C) Choice C
D) Choice A and B
E) Choice B and C
12) The total output from a production system in one day is 500 units and the total
labor
necessary to produce the 500 units is 350 hours. Using the appropriate productivity
measure, which of the following numbers represents the resulting productivity ratio?
A) 1.000
B) 1.429
C) 0.700
D) 0.411
E) None of these
13) The total output from a production system in one day is 900 units and the total
labor
necessary to produce the 900 units is 900 hours. Using the appropriate productivity
measure, what is the resulting productivity ratio?
A) 1.000
B) 1.428
C) 0.700
D) 0.411
E) None of these
14) Larry's Auto Body Repair Shop had revenues that averaged $60,000 per week in
April and $50,000 per week in May. During both months, the shop employed six
full-time (40 hours/week) workers. In April the firm also had four part-time workers
working 25 hours per week but in May there were only two part-time workers and
they only worked 10 hours per week. What is the percentage change in labor
productivity from April to May for Larry's Auto Body Repair?
A) −20.00%
B) −15.82%
C) 8.98%
D) 2.3%
E) −25.00%
F) None of these
15) Various financial data for SunPath Manufacturing for 2015 and 2016 follow.

What is the percentage change in SunPath’s total productivity measure between 2015
and 2016?
A) − 9.22%
B) 2.33%
C) − 0.53%
D) 2.88%
E) 10.39%
F) None of these
16) Various financial data for SunPath Manufacturing for 2015 and 2016 follow.

What is the percentage change in the energy partial productivity measure for SunPath
between
2015 and 2016?
A) −9.22%
B) 2.33%
C) −0.53%
D) 2.88%
E) 22.2%
F) None of these
17) Various financial data for SunPath Manufacturing for 2015 and 2016 follow.

What is the percentage change in the labor partial productivity measure for SunPath
between
2015 and 2016?
A) −9.22%
B) 2.27%
C) −0.53%
D) 2.88%
E) 10.39%
F) None of these
Version 1 8
18) Various financial data for SunPath Manufacturing for 2015 and 2016 follow.

What is the percentage change in the multifactor labor and raw materials productivity
measure for SunPath between 2015 and 2016?
A) −9.22%
B) 2.33%
C) −0.51%
D) −2.88%
E) 10.39%
F) None of these
19) What is meant by the term "operations effectiveness?"
A) Products produced in sufficient volume to meet demand.
B) Products produced at the lowest price in the industry.
C) Operations that run without error and with no surprises for top management.
D) Operations that can adapt quickly and efficiently to new and evolving conditions.
E) Performing activities in a manner that best implements strategic priorities at
minimum cost.
20) Decisions that relate to the design of the processes and the infrastructure needed to
support these processes relate to which OSCM concept?
A) Sustainability.
B) Competitive dimensions of OSCM.
C) Making trade-offs.
D) integrating operations and supply chain strategy with a firm's operational
capabilities.
E) Supply chain risk.
21) Triple bottom line is a phrase that captures which of the following?
A. The concept that shareholders like economic, environmental and societal
stewardship
affecting shareholders and stake holders.
B. The concept that firms should consider economic prosperity, environmental
stewardship and social responsibility affecting shareholders and stake holders.
C. The concept that sustainability, social awareness and profitability are three
important
measures for a firm affecting shareholders and stake holders.
D. The concept that firms should consider economic prosperity, environmental
stewardship and social responsibility affecting only shareholders.
A) Choice A
B) Choice B
C) Choice C
D) Choice D
E) None of the above
22) Which of the following lists contains only competitive dimensions of a firm
discussed in the text?
A. Cost or price, Triple bottom line, order winners
B. Delivery speed, delivery reliability, order qualifiers
C. Cost or price, delivery speed, delivery reliability, new product design
D. Cost or price, delivery speed, delivery reliability, flexibility and new product
introduction speed
E. Triple bottom line, delivery speed, deliver reliability, supplier after sale support
A) Choice A
B) Choice B
C) Choice C
D) Choice D
E) Choice E
23) Choose the most accurate description in the context of operations and supply
chain from the following lists.
A. Order winners and order qualifiers are two ways of describing market-oriented
dimensions of a product.
B. Order winners differentiates a product or service from another while order
qualifiers are built in features.
C. Order winners are built in features and order qualifiers are necessary features.
D. Order qualifier is a screening criterion while order winner is a differentiating
criterion.
E. Order winners may have been order qualifiers before.
A) Choice A
B) Choice B
C) Choice C
D) Choice D
E) Choice E
24) In a firm, if the employees attend a training program, then the time to assemble
one unit reduces by 10%. Training program will _____________blank.
A. increase the labor productivity only
B. increase the multifactor productivity only
C. increase both labor and multifactor productivity
D. decrease capital productivity
E. have no effect on productivity.
A) Choice A
B) Choice B
C) Choice C
D) Choice D
E) Choice E
25) In a firm, all other things remaining the same, if the material usage per unit of
final
product decreases to half of the current usage, then the firm will
_____________blank.
A) double the material productivity
B) increase the multifactor productivity
C) double the material productivity and increase the multifactor productivity
D) decrease capital productivity
E) have no effect on productivity.
26) An operations and supply chain strategy must be integrated with the organization's
corporate strategy.
⊚ true
⊚ false
27) One of the competitive dimensions that form the competitive position of a
company when planning their strategies is cost.
⊚ true
⊚ false
28) One of the competitive dimensions that form the competitive position of a
company when planning their strategies is delivery speed.
⊚ true
⊚ false
29) One of the competitive dimensions that form the competitive position of a
company when planning their strategies is making the best trade-off.
⊚ true
⊚ false
30) The process when a company seeks to match the benefits of a successful position
while maintaining its existing position by adding new features, services, and
technologies into its current portfolio is called flexibility.
⊚ true
⊚ false
Version 1 13
31) The process when a company seeks to match the benefits of a successful position
while maintaining its existing position by adding new features, services, and
technologies into its current portfolio it is called straddling.
⊚ true
⊚ false
32) Following a straddling strategy, firms can broaden their capabilities and
effectively
compete with more focused firms in markets requiring low cost for success.
⊚ true
⊚ false
33) An order winner is a set of criteria that differentiates the products or services of
one firm from another.
⊚ true
⊚ false
34) An order winner is a set of screening criteria that permits a firm's products to be
considered as possible candidates for purchase.
⊚ true
⊚ false
35) An order qualifier is a screening criterion that permits a firm's products to even be
considered as possible candidates for purchase.
⊚ true
⊚ false
36) Activity-system maps show how a company's strategy is delivered through a set of
tailored activities.
⊚ true
⊚ false
37) Activity-system maps are useful in understanding how well a system of activities
fits the overall company's strategy.
⊚ true
⊚ false
38) Activity-system maps depict the geographic reach of a company's business
strategies.
⊚ true
⊚ false
39) An operations strategy must resist change because of the long-term nature of
equipment and personnel investments.
⊚ true
⊚ false
40) Operations and supply strategy can be viewed as part of a planning process that
coordinates operational goals with those of the larger organization.
⊚ true
⊚ false
41) Infrastructure decisions within operations strategy include the selection of the
appropriate technology, the role of inventory, and the location of facilities.
⊚ true
⊚ false
42) Infrastructure decisions within operations strategy include the selection of the
logic
associated with the planning and control systems.
⊚ true
⊚ false
43) Once an operations strategy is adopted and articulated, the primary emphasis
becomes perfecting the system of activities that make up the strategy through detailed
refinements over a long period of time.
⊚ true
⊚ false
44) The job of operations and supply chain strategy is to deliver the most feature-rich,
highest quality product at the lowest price within specified parameters of delivery time
and
customization.
⊚ true
⊚ false
45) Productivity is a relative measure.
⊚ true
⊚ false
46) In a partial measure in productivity, the denominator of the ratio would include all
resources used or all inputs.
⊚ true
⊚ false
47) In a multifactor measure in productivity, the numerator of the ratio would include
all
resources used or all inputs.
⊚ true
⊚ false
48) The triple bottom line considers evaluating the firm against social, economic, and
environmental criteria.
⊚ true
⊚ false
49) Sustainability means meeting a firm's current needs without excessively
compromising the ability of future generations to meet their own needs.
⊚ true
⊚ false
50) The social impact of the triple bottom line concept pertains to fair and beneficial
business practices toward labor, the community, and the region in which a firm
conducts its business.
⊚ true
⊚ false
51) A firm's business practices toward its labor force pertain mainly to the economic
aspect of the triple bottom line concept.
⊚ true
⊚ false
52) According to the economic aspect of the triple bottom line concept, the firm is
required to compensate shareholders by paying dividends and growing the value of
their common stock faster than their competitors.
⊚ true
⊚ false
53) Within a sustainability framework, the economic dimension of the triple bottom
line concept goes beyond just profit for the firm but also provides lasting economic
benefit to society.
⊚ true
⊚ false
54) Within a sustainability framework, the environmental dimension of the triple
bottom line concept has to do with labor, the community, and the region in which a
firm conducts its business.
⊚ true
⊚ false

CHƯƠNG 4
1) The ability to rapidly and inexpensively switch production from one product to
another enables what are sometimes referred to as _____________blank
A) economies of scale.
B) economies of size.
C) economies of shape.
D) economies of scope.
E) economies of shipping.
2) Capacity planning that involves hiring, layoffs, some new tooling, minor equipment
purchases, and subcontracting is considered as which one of the following planning
horizons?
A) Intermediate-range.
B) Long-range.
C) Short-range.
D) Current.
E) Upcoming.
3) Capacity planning involving acquisition or disposal of fixed assets such as
buildings,
equipment or facilities is considered as which one of the following planning horizons?
A) Intermediate-range.
B) Long-range.
C) Short-range.
D) Current.
E) Upcoming.
4) If the best operating level of a piece of equipment is at a rate of 400 units per hour
and the actual output during an hour is 300 units, which of the following is the
capacity utilization rate?
A) 0.75
B) 1.00
C) 1.33
D) 2.33
E) 300
5) If the actual output of a piece of equipment during an hour is 500 units and its best
operating level is at a rate of 400 units per hour, which of the following is the capacity
utilization rate?
A) 0.75
B) 1.00
C) 1.25
D) 1.33
E) 100
6) If the best operating level of a piece of equipment is at a rate of 400 units per hour
and the actual output during an hour is 300 units, which of the following is the
capacity cushion?
A) 25%
B) 100 units per hour.
C) 75%
D) 125%
E) 133%
7) The capacity focus concept can be put into practice through a mechanism called
which of the following?
A) Best operating level (BOL).
B) Plant within a plant (PWP).
C) Total quality management (TQM).
D) Capacity utilization rate (CUR).
E) Zero-changeover-time (ZXT).
8) The way to build in greater flexibility in your workers is to do which of the
following?
A) Pay higher wages to motivate a willingness to do a variety to tasks.
B) Provide a broader range of training.
C) Provide a wide variety of technology to augment workers skills.
D) Institute a "pay for skills" program.
E) Use part-time employees with specialized skills as needed.
9) When deciding to add capacity to a factory which of the following not need to be
considered?
A) Maintaining system balance.
B) The frequency of capacity additions.
C) Use of external capacity.
D) Immediate product demand.
E) Availability of raw materials.
10) Which of the following is not a step used in determining production capacity
requirements?
A) Forecasting to predict product sales.
B) Forecasting raw material usage.
C) Projecting availability of labor.
D) Calculating equipment and labor needs.
E) Projecting equipment availability.
11) Which of the following models uses a schematic model of the sequence of steps in
a problem and the conditions and consequences of each step?
A) Probability indexing.
B) Johnson's sequencing rule.
C) Decision trees.
D) Activity System Maps.
E) Decision mapping.
12) Compared with a service operation, which of the following is correct for a
manufacturing operation's capacity?
A) More dependent on time and location.
B) Subject to more volatile demand fluctuations.
C) Utilization more directly impacts quality.
D) Demand can be smoothed by inventory policies.
E) More capable of reacting to demand fluctuations.
13) At a decision point in a decision tree, which machine would you select when
trying to maximize payoff when the anticipated benefit of selecting machine A is
$45,000 with a probability of 90%; the expected benefit of selecting machine B is
$80,000 with a probability of 50% and the expected benefit of selecting machine C is
$60,000 with a probability of 75%?
A) Machine A
B) Machine B
C) Machine C
D) You would be indifferent between machines A and C
E) You would be indifferent between machines A and B
14) What is an important difference between capacity planning in services as
contrasted to capacity planning in manufacturing operations?
A) Time.
B) Location.
C) Demand volatility.
D) Utilization impacts service quality.
E) All of these.
15) Capacity planning involving consideration of production scheduling and inventory
position is characterized by which one of the following time durations?
A) Intermediate-range.
B) Long-range.
C) Short-range.
D) Current.
E) Upcoming.
16) Planning service capacity involves consideration of the mean arrival rate and the
mean service rate. When the mean arrival rate exceeds or gets too close to the mean
service rate the quality of the service declines. The operating point is the ratio of mean
service rate to mean arrival rate. According to the text, what is the best operating point
for the typical service
operation?
A) 120%
B) 100%
C) 90%
D) 70%
E) 57%
17) The optimal utilization rate of a service operation is context specific. Planning for
low utilization rates is appropriate when both the degree of uncertainty and the stakes
are high as in emergency response services. Which of the following services should
plan for a high utilization rate?
A) The fire department.
B) An expensive restaurant.
C) A hospital ambulance service.
D) A stage performance.
E) A customer help line.
18) In designing a general service facility, capacity should be such that the target rate
of
service utilization (ρ), in order to get the best general-purpose design, should be
_____________blank
A) less than 0.6 (or 60%), so that your system would be within the zone of service
with
maximum possible utilization within that.
B) more than 0.6 (or 60%) so that your system would have a good utilization.
C) about 0.7 (70%) so that your system would be in the zone of service with
maximum
possible utilization within that.
D) more than 1.0 (100%) so that the servers are fully utilized, even if the customers
had
to wait a little.
E) between 0.9 (90%) and 1.0 (100%) so that the utilization of the system is ideal.
19) Precise capacity design or the rate of service utilization (ρ), is application specific.
Which of the following is correct?
A) It could be close to 100% for a sports arena.
B) It could be as low as 0.5 for hospital emergency room.
C) As the degree of uncertainty in demand increases, higher ρ may be appropriate.
D) All of the above choices are correct.
E) Both it could be close to 100% for a sports arena and it could be as low as 0.5 for
hospital emergency room.
20) In a decision tree problem involving capacity planning, there was a random
outcome
node with three random outcomes (A,B, and C) which followed a decision node. The
probabilities for A, B and C: P(A)=0.4, P(B) = 0.6 and P(C) = 0.2. Payoff following
A,B and C respectively are $10000, $5000 and $2000. Expected value of that random
outcome node is _____________blank
A) $7400
B) $7000
C) $17000
D) Cannot be determined since there is something wrong with the data given.
E) $5666
21) Capacity can be defined as the ability to hold, receive, store, or accommodate.
⊚ true
⊚ false
22) When evaluating capacity, managers need to consider both resource inputs and
product outputs.
⊚ true
⊚ false
23) Capacity can be defined as the amount of available resource inputs relative to
requirements for output over a particular period of time.
⊚ true
⊚ false
24) The capacity utilization rate is found by dividing best operating level by capacity
used.
⊚ true
⊚ false
25) The objective of strategic capacity planning is to provide an approach for
determining the overall capacity level of labor-intensive resources.
⊚ true
⊚ false
26) The objective of strategic capacity planning is to determine the overall capacity
level of capital-intensive resources (including facilities, equipment, and overall labor
force size) that best supports the company's short-range competitive strategy.
⊚ true
⊚ false
27) The objective of strategic capacity planning is to determine the overall capacity
level of capital-intensive resources (including facilities, equipment, and overall labor
force size) that best supports the company's long-range competitive strategy.
⊚ true
⊚ false
28) Best operating level is usually a multiple of the level of capacity for which a
process was designed.
⊚ true
⊚ false
29) Best operating level is the volume of output at which average unit cost is
minimized.
⊚ true
⊚ false
30) At some point, the size of a growing plant can become too large and diseconomies
of scale becomes a capacity planning problem.
⊚ true
⊚ false
31) Long-range capacity planning requires top management participation.
⊚ true
⊚ false
32) Overtime and personnel transfers are solutions to capacity problems in the
intermediate
term.
⊚ true
⊚ false
33) Capacity planning is generally viewed in three-time durations: Immediate,
Intermediate, and Indeterminate.
⊚ true
⊚ false
34) The basic notion of economies of scale is that as a plant gets larger and volume
increases, the average cost per unit of output drops.
⊚ true
⊚ false
35) A piece of equipment with twice the capacity of another piece typically costs
twice as much to purchase and to operate.
⊚ true
⊚ false
36) The problem of keeping demand sufficiently high to keep a large factory busy is a
sales issue and not a diseconomy of scale.
⊚ true
⊚ false
37) A production facility works best when it focuses on a fairly limited set of
production objectives.
⊚ true
⊚ false
38) A production facility develops virtuosity and works best when it focused on a
widely
varied set of production objectives.
⊚ true
⊚ false
39) Making adjustments to eliminate the variance between planned and actual output
is tied into intermediate range capacity planning.
⊚ true
⊚ false
40) The ultimate in plant flexibility is the one-hour-changeover time plant.
⊚ true
⊚ false
41) Capacity flexibility means having the ability to rapidly increase or decrease
production levels, or to shift production capacity quickly from one product or service
to another.
⊚ true
⊚ false
Version 1 11
42) Economies of scope exist when multiple products can be produced at a lower cost
in combination than they can separately.
⊚ true
⊚ false
43) The frequency of adding to productive capacity should balance the costs of
upgrading too frequently and the costs of upgrading too infrequently.
⊚ true
⊚ false
44) Outsourcing is a common source of external capacity.
⊚ true
⊚ false
45) Sharing capacity is a common source of external capacity.
⊚ true
⊚ false
46) A capacity cushion is the amount of capacity less than expected demand.
⊚ true
⊚ false
47) A decision tree problem does not need probabilities or payoffs to generate a
solution.
⊚ true
⊚ false
48) In solving a decision tree problem, calculations start at the ends of the "branches"
of the tree and work backwards to the base of the tree.
⊚ true
⊚ false
49) The probability of each occurrence at a decision tree chance node is the reciprocal
of the number of possibilities at the chance node.
⊚ true
⊚ false
50) In a decision tree, the only time probabilities are applied to a decision node is
when the decision is being made by someone else such as you customer or your
competitor.
⊚ true
⊚ false
51) Low rates of capacity utilization in service organizations are never appropriate.
⊚ true
⊚ false
52) The smaller is the capacity cushion the better it is.
⊚ true
⊚ false
53) The larger the capacity cushion the better.
⊚ true
⊚ false
54) The capacity cushion is the ratio of capacity used to the best capacity level.
⊚ true
⊚ false
55) When a firm's design capacity is less than the capacity required to meet its
demand, it is said to have a negative capacity cushion.
⊚ true
⊚ false
56) In decision tree analysis the time value of money is ignored because you are only
concerned with cash costs.
⊚ true
⊚ false
57) In practice, achieving a perfectly balanced plant is usually desirable but
impossible.
⊚ true
⊚ false
58) In practice achieving a perfectly balanced plant is usually both impossible and
undesirable.
⊚ true
⊚ false
59) Because services cannot be stored for later use, service managers consider time as
one of their supplies or resources.
⊚ true
⊚ false

CHƯƠNG 7
1) Platform service business model describes an approach where _____.
1.a) consumers and producers/service creators are brought together for a social cause.
2.b) transaction provider connects the customer and providers and collects the charges.
3.c) an example of a transaction provider would be eBay.
4.d) another model of manufacture is described.
A) Option A
B) Option B
C) Option C
D) Option D
2) Which of the following is a suggestion for managing queues that is mentioned in
the
textbook?
A) Put up a serpentine lane to keep people from jumping ahead in line.
B) Use humor to defuse a potentially irritating situation.
C) Segment the customers.
D) Assure customers that the wait is fair and inform them of the queue discipline.
E) Tell people in the queue that each will be served as soon as possible.
3) Which of the following is not a suggestion for managing queues presented in the
textbook?
A) Try to divert your customer's attention when waiting.
B) Segment the customers.
C) Encourage customers to come during a slack period.
D) Train your servers to be friendly.
E) Periodically close the service channel to temporarily disperse the line.
4) Which of the following is a suggestion for managing queues presented in the
textbook?
A) Train your servers to be friendly.
B) Tell customers that the line should encourage them to come during slack periods.
C) Give each customer a number.
D) Periodically close the service channel to temporarily disperse the line.
E) Use humor to defuse a potentially irritating situation.
5) Which of the following are the three major components of a queuing system?
A) The source population, how customers exit the system, and the queuing discipline.
B) The number of servers, the service speed, and the waiting line.
C) The source population, how the customer exits the system, and the servicing
system.
D) The source population and the way customers arrive at the system, the serving
systems, and how customers exit the system.
E) The service speed, the queue discipline, and the waiting line.
6) Which of the following is a suggestion for managing queues that is mentioned in
the
textbook?
A) Put up a serpentine lane to keep people from jumping ahead in line.
B) Use humor to defuse a potentially irritating situation.
C) Train your servers to be friendly.
D) Assure customers that the wait is fair and inform them of the queue discipline.
E) Tell people in the queue that each will be served as soon as possible.
7) Which of the following is not a suggestion for managing queues presented in the
textbook?
A) Train your servers to be friendly.
B) Segment the customers.
C) Determine an acceptable waiting time for your customers.
D) Inform your customers of what to expect.
E) Encourage customers to come during slack periods.
8) In essence, a queuing system includes several major components. Which of the
following is not one of them?
A) Source population.
B) Servicing system.
C) How the customer exits the system.
D) The queue discipline.
E) None of these.
9) Which of the following is an example of a finite population in a queuing system?
A) People waiting to place their order at a fast-food restaurant.
B) The departmental faculty in line at the copy machine.
C) People waiting in line at an ATM.
D) Patients seeking help in a hospital emergency room.
E) Taxpayers calling for assistance from the IRS.
10) Which of the following is not a queue discipline discussed in the textbook?
A) First come, first served.
B) Last in, first out.
C) Limited needs.
D) Shortest processing time.
E) Best customer first.
11) Which of the following queue disciplines is discussed in the textbook?
A) Emergencies first.
B) Garner-Whitten formula.
C) Newest customer first.
D) Patient customers last.
E) None of these.
12) Buying a ticket for a college football game where there are multiple windows to
buy the ticket, which of the following types describes the queuing system line
structure?
A) Single channel, single phase.
B) Single channel, multiphase.
C) Multichannel, single phase.
D) Multichannel, multiphase.
E) None of these.
13) Buying food at a large food store with multiple checkout counters, which of the
following types describes the queuing system line structure?
A) Single channel, single phase.
B) Single channel, multiphase.
C) Multichannel, single phase.
D) Multichannel, multiphase.
E) None of these.
14) Getting an autograph from a famous person might involve standing in which type
of the queuing line structure?
A) Single channel, single phase.
B) Single channel, multiphase.
C) Multichannel, single phase.
D) Multichannel, multiphase.
E) None of these.
15) In a college registration process, several department heads have to approve an
individual student's semester course load. What is the queuing system line structure?
A) Single channel, single phase.
B) Single channel, multiphase.
C) Multichannel, single phase.
D) Multichannel, multiphase.
E) None of these.
16) Standing in line to buy a ticket for a movie where there are multiple windows to
buy
tickets is which type of the queuing system line structure?
A) Single channel, single phase.
B) Single channel, multiphase.
C) Multichannel, single phase.
D) Multichannel, multiphase.
E) None of these.
17) A roller coaster ride in an amusement park employs which type of the queuing
system line structure?
A) Single channel, single phase.
B) Single channel, multiphase.
C) Multichannel, single phase.
D) Multichannel, multiphase.
E) None of these.
18) Machine breakdown and repair in a twelve-machine factory having one repair
mechanic would represent which type of the queuing system line structure?
A) Single channel, single phase.
B) Single channel, multiphase.
C) Multichannel, single phase.
D) Multichannel, multiphase.
E) None of these.
19) Assume the service rate for a queue in a truck-loading operation is 2 trucks per
hour. Using the infinite queuing notion for the models presented in the textbook,
which of the
following is the average service time?
A) 2 hours.
B) 1 hour.
C) 0.5 hour.
D) 0.25 hour.
E) None of these.
20) For an infinite queuing situation, if the arrival rate for loading trucks is 5 trucks
per hour, what is the mean time between arrivals?
A) 5 hours.
B) 2.5 hours.
C) 0.2 hour.
D) 0.1 hour.
E) None of these.
21) A company is concerned about the number of customers that have to wait for
service in their customer service department. Assume the rate at which customers
arrive is 12 per hour. Using the infinite queuing notion for the models presented in the
textbook, which of the
following is the mean time between arrivals?
A) 12 minutes.
B) 6 minutes.
C) 2 minutes.
D) 1 minute.
E) None of these.
22) Which of the following is a characteristic that can be used to guide the design of
service systems?
A) Services cannot be inventoried.
B) Services are all similar.
C) Quality work means quality service.
D) Services businesses are inherently entrepreneurial.
E) Even service businesses have internal services.
23) Which of the following refers to the physical presence of the customer in a service
system?
A) Creation of the service.
B) Customer contact.
C) Intermittent production.
D) Continuous production.
E) None of these.
24) Which of the following is an alternative possible service encounter included in the
service-system design matrix?
A) Mail contact.
B) Warranty.
C) Sales call.
D) Field service.
E) None of these.
25) Which of the following is an alternative possible service encounter included in the
service-system design matrix?
A) Face-to-face distance.
B) Internet.
C) Questionnaire response.
D) Automated teller machine (ATM).
E) Response card encounter.
26) In the service-system design matrix, a face-to-face total customization service
encounter is expected to have which of the following?
A) Low sales opportunity.
B) Low production efficiency.
C) High production efficiency.
D) Low degree of customer/server contact.
E) None of these.
27) In the service-system design matrix, a mail contact service encounter is expected
to have which of the following?
A) High sales opportunity.
B) High degree of customer/server contact.
C) High production efficiency.
D) Low sales opportunity.
E) None of these.
28) In the service-system design matrix, a face-to-face loose specs service encounter
is
expected to have which of the following?
A) Low sales opportunity.
B) Low production efficiency.
C) High production efficiency.
D) Low degree of customer/server contact.
E) None of these.
29) In the service-system design matrix, an internet and on-site technology service
encounter is expected to have which of the following?
A) High sales opportunity.
B) High degree of customer/server contact.
C) Low production efficiency.
D) High production efficiency.
E) None of these.
30) There are many applications of poka-yokes in service organizations. _____ is one
of the three-T's used to classify poka-yokes?
A) Task
B) Time
C) Teamwork
D) Trust
E) Talent
31) There are many applications of poka-yokes in service organizations. _____ is one
of the three-T's used to classify poka-yokes?
A) Talent
B) Teamwork
C) Trust
D) Treatment
E) Time
32) Which of the following is considered a high-contact service operation?
A) On-line brokerage house.
B) Internet sales for a department store.
C) Physician practice.
D) Telephone life insurance sales and service.
E) Automobile repair.
33) The service blueprint makes a distinction between _____
A) high and low customer contact aspects of the service.
B) those parts of the service performed before payment from those performed after
payment.
C) standardized elements of the service and those distinctive customized aspects of the
service.
D) customers desiring good service and customers unconcerned with service quality.
E) low and high value-added aspects of the service.
34) The "line of visibility" is a feature of _____
A) a single-channel, single phase queuing system.
B) the service blueprint.
C) an entertainment activity for people waiting in line for a service.
D) a waiting line that allows visibility of the server(s) tending to customers in front of
you.
E) None of these
35) Every service has a service package, which is defined as a bundle of goods and
services provided in some environment. The service package consists of five features.
Which of the following is not one of these features?
A) Supporting facility.
B) Facilitating services.
C) Information.
D) Explicit Services.
E) Implicit Services.
36) According to the text, the main differences separating Amazon from other on line
retailors are all of the following except _____
A) website and the gigantic list of product offerings.
B) multi-tiered strategy any one can sell anything.
C) you can return products.
D) you can setup website with links to Amazon and get paid for click throughs.
E) can be your personal shopping assistant.
37) In designing service systems, as you go from mail contact to phone contact to face
to face total customization, which of the following is the most appropriate?
A) Sales opportunity decreases while degree of customer/server contact increases.
B) Sales opportunity decreases while degree of customer/server contact decreases.
C) Sales opportunity increases while degree of customer/server contact decreases.
D) Sales opportunity increases while degree of customer/server contact increases.
E) None of the above
38) Assuming a 24-hour operation in a warehouse, and an arrival following Poisson
distribution with mean rate of 36 per day and service (unloading using a single bay)
following exponential distribution with a rate of 48 trucks per day, answer the
following question. What is the expected waiting time in the system (in hours) for a
typical truck?
A) 2 hours
B) 1 hour
C) 1.5 hour
D) 0.25 hour
E) 0.5 hour
39) Assuming a 24-hour operation in a warehouse, and an arrival following Poisson
distribution with mean rate of 36 per day and service (unloading using a single bay)
following exponential with a rate of 48 trucks per day, answer the following question.
What is the expected number of trucks in the system?
A) 2.25
B) 1.5
C) 2
D) 1
E) 3
40) Customers arrive at a single self-serve coffee machine in a busy mall at the rate of
20 per hour, following Poisson distribution. Each customer takes exactly 90 seconds
to get his or her coffee. What is the expected number of customers in queue at this
coffee machine?
A) 0.25
B) 1.5
C) 0.5
D) 2.0
E) 3.0
41) Customers arrive at a common queue at the coffee station with two identical
coffee
machines in a busy mall at the rate of 48 per hour, following Poisson distribution.
Each customer mixes his or her specialty coffee taking 2 minutes on an average
following an exponential process. What is the expected number of customers in the
system at this coffee station?
A) Infinity
B) 2.844
C) 2.444
D) 4.444
E) 3
42) Effective management of services requires a clear focus on understanding
operations, so much so, that it may even require the exclusion of consideration of
marketing or personnel.
⊚ true
⊚ false
Version 1 14
43) Services often take the form of repeated encounters involving face-to-face
interactions.
⊚ true
⊚ false
44) The term "encounter" is defined by Webster's Dictionary as "meeting in conflict or
battle" and is used to also designate meetings between consumers and service systems.
⊚ true
⊚ false
45) A service system with a high degree of customer contact is less difficult to control
than a low degree of customer contact service system.
⊚ true
⊚ false
46) Because little or no inventory is carried in a service operation, it is easy to
separate the operations management functions from marketing in services.
⊚ true
⊚ false
47) It is difficult to separate the operations management functions from marketing in
services.
⊚ true
⊚ false
48) The service-system design matrix identifies five alternative forms of service
encounters.
⊚ true
⊚ false
49) The service-system design matrix identifies six forms of service encounters.
⊚ true
⊚ false
50) The "service blueprint" is a classification of services.
⊚ true
⊚ false
51) Poka-yokes are procedures that block the inevitable mistake from becoming a
service defect.
⊚ true
⊚ false
52) Poka-yoke is roughly translated from Japanese as "quality management."
⊚ true
⊚ false
53) Poka-yoke is roughly translated from Japanese as "avoid mistakes."
⊚ true
⊚ false
54) An important aspect of service products is that they cannot be inventoried.
⊚ true
⊚ false
55) Customer contact refers to creation of the service.
⊚ true
⊚ false
56) The work process involved in providing the service must involve the physical
presence of the customer in the system.
⊚ true
⊚ false
57) The central problem in virtually every waiting line situation is a trade-off decision
balancing the costs of adding services with the costs of waiting.
⊚ true
⊚ false
58) Ideally in waiting line or queuing analysis we want to balance the cost of service
with the cost of waiting.
⊚ true
⊚ false
59) The customer arrivals in a queuing system come almost exclusively from finite
populations.
⊚ true
⊚ false
60) The customer arrivals in a queuing system come almost exclusively from infinite
populations.
⊚ true
⊚ false
61) A finite population in waiting line management refers to a population that is large
enough in relation to the service system so that the change in population size caused
by subtraction or additions to the population does not significantly affect the system
probabilities.
⊚ true
⊚ false
62) An infinite population in waiting line management refers to a population that is
large
enough in relation to the service system so that the change in population size caused
by
subtraction or additions to the population does not significantly affect the system
probabilities.
⊚ true
⊚ false
63) A variable arrival rate is more common in waiting line management than a
constant
arrival rate.
⊚ true
⊚ false
64) A constant arrival rate is more common in productive systems than a variable
arrival rate.
⊚ true
⊚ false
65) Arrival characteristics in a queuing analysis include the length of the queue.
⊚ true
⊚ false
66) The Poisson probability distribution is used in waiting line management when we
are
interested in the number of arrivals to a queue during some fixed time period.
⊚ true
⊚ false
67) The demand on a hospital's emergency medical services is considered a
controllable
arrival pattern.
⊚ true
⊚ false
68) The demand on a hospital's emergency medical services is considered an
uncontrollable arrival pattern.
⊚ true
⊚ false
69) Gas stations, loading docks, and parking lots have infinite potential length of lines
for their queuing systems.
⊚ true
⊚ false
70) Highest-profit customer first is a queue discipline discussed in the textbook.
⊚ true
⊚ false
71) Longest waiting time in line is a queue discipline discussed in the textbook.
⊚ true
⊚ false
72) Best customer last is a queue discipline discussed in the textbook.
⊚ true
⊚ false
73) A car wash is an example of a single channel, multiphase queuing system.
⊚ true
⊚ false
74) A tellers' window in a bank is an example of a single channel, multiphase queuing
system.
⊚ true
⊚ false
75) The admissions system in a hospital for patients is an example of a single channel,
single phase queuing system.
⊚ true
⊚ false
76) There are different queuing models to fit different queuing situations.
⊚ true
⊚ false
77) In a practical sense, an infinite queue is one that includes every possible member
of the served population.
⊚ true
⊚ false
78) In a waiting line situation, multiple lines occur only when there are multiple
servers.
⊚ true
⊚ false
79) The term "queue discipline" involves the art of controlling surly and unruly
customers who have become irritated by waiting.
⊚ true
⊚ false
80) In a practical sense, a finite population is one that potentially would form a very
long line in relation to the capacity of the serving system.
⊚ true
⊚ false
81) A department of 25 machines is kept running by three operators who respond to
randomly occurring equipment problems. An analyst who wanted to know how much
production was being lost by machines waiting for service could use queuing theory
analysis to find out.
⊚ true
⊚ false
82) A department of 25 machines is kept running by three operators who respond to
randomly occurring equipment problems. When an operator is absent, the amount of
production being lost by machines waiting for service increases. The analyst can use
queuing theory analysis to determine whether to pay overtime to an operator from a
different shift or not.
⊚ true
⊚ false
83) A department of 25 machines is kept running by three operators who respond to
randomly occurring equipment problems. An analyst wanting to know whether to add
a fourth operator or downsize to two operators would be helped by using queuing
theory analysis.
⊚ true
⊚ false

CHƯƠNG 9
1) The acronym ERP stands for _____
A) Executive Reliability Profile—a human resources program that identifies fast-track
middle managers.
B) Erratic Response Parameter—a quality metric indicating that a process is in or out
of
statistical control.
C) Enterprise Resource Planning—a data base of that ties together all application
programs in a firm.
D) Emergency Response Plan—a document required by government indicating
planned
responses to emergency situations.
E) Elevated Reply Protocol—a list of executives authorized to deal with difficult
customer concerns.
2) Which of the following is one of the main purposes of a MRP system?
A) Educate personnel in basic work rules.
B) To determine the amount of materials needed to produce each end item.
C) Stimulate the work force.
D) Decrease labor requirements.
E) Increase inventory accuracy.
3) One of the main purposes of a MRP system is to _____
A) track inventory levels.
B) create productive capacity.
C) decrease layers of management.
D) develop schedules specifying when each component should be ordered or
produced.
E) upgrade manufacturing's professionalism.
4) Which of the following is the most closely related to the reason a firm might
implement MRP?
A) They can order the right parts.
B) They can order parts sufficient for immediate use.
C) They can insure that parts to arrive prior to when they are needed.
D) To assure appropriate quality levels.
E) To keep process costs between the LCL and the UCL.
5) MRP systems seek to achieve which of the following?
A) Minimize lot sizes.
B) Determine the number of dependent demand items needed.
C) Relieve capacity bottlenecks.
D) Provide a yardstick for future improvements.
E) Improve on JIT methods.
6) Which of the following industry types have high expected benefits from the
application of MRP?
A) Fabricate-to-stock.
B) Fabricate-to-order.
C) Assemble-to-stock.
D) Continuous process.
E) Service and repair parts.
7) Which of the following industry types have high expected benefits from the
application of MRP?
A) Fabricate-to-order.
B) Hospitals.
C) Assemble-to-order.
D) Aircraft manufacturers.
E) Oil refineries.
8) Which of the following industry types will not benefit greatly from the application
of
MRP?
A) Fabricate-to-order.
B) Assemble-to-stock.
C) Assemble-to-order.
D) Manufacture-to-order.
E) None of these.
9) From the list below select the item that the master scheduler does not do to ensure
good master scheduling.
A) Include all demands from product sales, warehouse replenishment, spares, and
interplant requirements.
B) Be involved with customer order promising.
C) Be visible to all levels of management.
D) Trade off conflicts to make it likely that manufacturing will meet its goals.
E) Identify and communicate all problems.
10) Freezing the master schedule is _____
A) not truly feasible because down the road it will become slushy again.
B) a commitment to precisely follow the master schedule in the future.
C) done to avoid the chaos of expediting and resultant overdue orders.
D) preserves the master schedule until it is ready to be used.
E) rarely attempted by manufacturing firms.
11) “Available to promise” identifies the difference between the units currently in the
master schedule and _____
A) inventory records file.
B) demand forecasts.
C) bill of materials.
D) firm customer orders.
E) inventory on hand.
12) Which of the following is an input to the master production schedule?
A) Bill of materials (BOM) file.
B) Inventory records file.
C) Exception reports.
D) Planned-order schedules.
E) None of these.
13) Which of the following is an input file necessary to run an MRP system?
A) Bill of materials (BOM) file.
B) Quality management report.
C) Exception reports.
D) Planned-order schedules.
E) Purchasing contracts.
14) Which of the following is an input file necessary to run an MRP system?
A) Exception reports.
B) Computer-aided-design files.
C) Inventory records file.
D) Personnel files.
E) Planned order schedule.
15) Which of the following is not a production activity report generated by MRP?
A) Exception reports.
B) Planning reports.
C) Performance control reports.
D) Planned-order schedules.
E) Bill of materials reports.
16) Which of the following is considered a primary report in an MRP system?
A) Planning reports.
B) Performance reports.
C) Exception reports.
D) Planned order schedules.
E) Cycle counting reports.
17) Which of the following is considered a secondary report in an MRP system?
A) Exceptions reports.
B) Planned order schedule.
C) Inventory record.
D) Exceptions reports.
E) Firm orders from known customers.
F) Inventory record.
G) Engineering change reports.
H) Firm orders from known customers.
I) Engineering change reports.
18) Which of the following is considered a primary report in an MRP system?
A) Planned order schedule.
B) Peg reports.
C) Planning reports.
D) Inventory accuracy reports.
E) Aggregate production plan reports.
19) Which of the following is an input to the master production schedule (MPS)?
A) Inventory records file.
B) The aggregate plan.
C) The bill of materials.
D) The exception reports.
E) Planned order schedules.
20) Which of the following is an input to the master production schedule?
A) Prototype products from product development.
B) Aggregate component schedule.
C) Peg reports.
D) Exception reports.
E) Forecasts of demand from customers.
21) A BOM file is also called _____.
A) product tree
B) stocking plan
C) inventory usage record
D) production parts plan
E) time bucket schedule
22) A product tree can do _____.
A) help to compute component usage
B) reduce product scrap
C) reduce labor overtime
D) reduce regular time labor
E) locate raw material supplies
23) In an MRP program, the program accesses the status segment of an inventory
record
according to specific periods called _____.
A) cubed time units
B) time buckets
C) BOM units
D) time modules
E) time lines
Version 1 8
24) Which of the following files allows us to retrace a material requirement upward in
the product structure through each level, identifying each parent item that created the
demand?
A) Planning bill of materials file.
B) Modular bill of materials file.
C) Super bill of materials file.
D) Exception report file.
E) Peg record file.
25) We would expect to see which of the following in an MRP system's inventory
status file?
A) End items produced.
B) Late/early delivery records.
C) Scrap losses.
D) Labor efficiency.
E) Computer errors.
26) In a typical inventory status record which of the following would you not expect
to see?
A) Scrap allowance.
B) Order quantity.
C) Gross requirements.
D) Planned-order releases.
E) Lost items.
27) Which of the following is the net requirement when using an MRP program if the
gross requirement is 1,250 and the inventory on hand is 50?
A) 1,200
B) 1,300
C) 1,150
D) 2,450
E) None of these
28) Which of the following is the net requirement when using an MRP program if the
gross requirement is 1,000 and the inventory on hand is 500?
A) 1,000
B) 950
C) 500
D) 400
E) 350
29) Which of the following is the planned-order release when using an MRP program
if the gross requirement is 5,000, inventory on hand is 1,200, and planned receipts are
800?
A) 7,000
B) 4,200
C) 3,000
D) 2,000
E) 1,200
30) Which of the following is the planned-order release when using an MRP program
if the gross requirement is 670 and the inventory on hand is 600?
A) 670
B) 600
C) 530
D) 70
E) None of these
31) In a MRP problem, A is a MPS item. Every A requires 2 B’s and 3 C’s. Every B
requires 5 C’s. All lead times are two periods. All initial inventory values are 0. Use
lot-for-lot method for order quantities for all items. If gross requirement for A is 500
in period 8, what will be the planned order release for B in period 4?
A) 0
B) 1,000
C) 500
D) 1,500
E) 6,500
32) In a MRP problem, A is a MPS item. Every A requires 2 B’s and 3 C’s. Every B
requires 5 C’s. All lead times are two periods. Initial inventory values for A is 100, B
is 200 and C is 0. Use lot-for-lot method for order quantities for all items. If gross
requirement for A is 800 in period 9, what will be the planned order release for B in
period 5?
A) 1,600
B) 1,400
C) 700
D) 800
E) 1,200
33) In a MRP problem, A is a MPS item. Every A requires 3 B’s and 2 C’s. Every B
requires 5 C’s. All lead times are one period. Initial inventory values for all items are
0. Use lot-for-lot method for order quantities for all items. If gross requirement for A
is 400 in period 10, what will be the planned order release for C in period 8?
A) 800
B) 1,600
C) 6,800
D) 6,000
E) 1,200
34) In a MRP problem, A is a MPS item. Every A requires 2 B’s and 3 C’s. Every B
requires 5 C’s. All lead times are two periods. All initial inventory values are 0. Use
lot-for-lot method for order quantities for all items. What is the low level code (LLC)
for B and C?
A) LLC for B is 2 and C is 1.
B) LLC for both B and C are 2.
C) LLC for B is 1 and C is 2.
D) LLC for B is 0 and C is 1.
E) LLC for all items are 1.
35) Which of the following can be used for lot sizing in a MRP system?
A) Low-level coding.
B) Time bucket size.
C) Least unit cost.
D) Inventory record file.
E) Peg inventory.
36) Which of the following is not a lot sizing technique used in a MRP systems?
A) Lot-for-lot (L4L).
B) Economic order quantity (EOQ).
C) Least total cost (LTC).
D) Least unit cost (LUC).
E) Warehouse loading factor (WLF).
37) Under the lot-for-lot (L4L) lot sizing technique as used in a MRP, we would
expect
which of the following?
A) A consistent lag of supply behind demand.
B) Minimized carrying costs.
C) Minimized set-up costs.
D) A just in time management philosophy.
E) Minimized quality problems.
38) If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost
per order is $50, which of the following is the EOQ lot size?
A) 350
B) 247
C) 23
D) 185
E) 78
39) If annual demand is 12,000 units, annual holding cost is $15 per unit, and setup
cost per order is $25, which of the following is the EOQ lot size?
A) 2,000
B) 1,200
C) 1,000
D) 300
E) 200
40) Which of the following is a dynamic lot-sizing technique that calculates the order
quantity by comparing the carrying cost and the setup (or ordering) costs for various
lot sizes and then selects the lot in which these are most nearly equal?
A) Economic order quantity.
B) Lot-for-lot.
C) Least total cost.
D) Least unit cost.
E) ABC analysis.
41) Which of the following is a dynamic lot-sizing technique that calculates the order
quantity by comparing the carrying cost and the setup (or ordering) costs for various
lot sizes and then selects the lot size in which these are most nearly equal?
A) Kanban.
B) Just-in-time system.
C) MRP.
D) Least unit cost.
E) Least total cost.
42) Which of the following is a dynamic lot-sizing technique that adds ordering and
inventory carrying cost for each trial lot size and divides by the number of units in
each lot size, picking the lot size with the lowest unit cost?
A) Economic order quantity.
B) Lot-for-lot.
C) Least total cost.
D) Least unit cost.
E) Inventory item averaging.
43) When implemented correctly, MRP links all areas of the business.
⊚ true
⊚ false
44) MRP stands for manufacturing requirements planning.
⊚ true
⊚ false
45) MRP stands for material requirements planning.
⊚ true
⊚ false
46) MRP is based on dependent demand.
⊚ true
⊚ false
47) MRP is a logical, easily understandable approach to the problem of determining
the
number of parts, components, and materials needed to produce each end item.
⊚ true
⊚ false
Version 1 15
48) MRP provides the schedule specifying when each part and component of an end
item should be ordered or produced.
⊚ true
⊚ false
49) The deeper one looks into the product creation sequence, the more the
requirements of dependent demand items tend to become more lumpy.
⊚ true
⊚ false
50) The deeper one looks into the product creation sequence, the more the
requirements of dependent demand items tend to smooth out and become even over
time.
⊚ true
⊚ false
51) MRP is most valuable where a number of products are made in batches using the
same productive equipment.
⊚ true
⊚ false
52) MRP is least valuable in industries where a number of products are made in
batches using the same productive equipment.
⊚ true
⊚ false
53) The master production schedule states the number of items to be produced during
specific time periods.
⊚ true
⊚ false
54) A master production schedule is an input to a material requirements planning
(MRP)
system.
⊚ true
⊚ false
55) The time-phased plan specifying how many and when the firm plans to build each
end
item is called the materials requirements plan (MRP.)
⊚ true
⊚ false
56) The time-phased plan specifying how many and when the firm plans to build each
end
item is called the master production schedule (MPS).
⊚ true
⊚ false
57) Time fences are periods of time having some specified level of opportunity for the
customer to make changes.
⊚ true
⊚ false
58) The customer grace period is a time-span having some specified level of
opportunity for the customer to make changes.
⊚ true
⊚ false
59) “Available to promise” is the difference between the number of units in the master
schedule and the firm customer orders.
⊚ true
⊚ false
60) Manufacturing firms maintain bill of materials (BOM) files, which are simply a
sequencing of everything that goes into a final product.
⊚ true
⊚ false
61) An input to the material requirements planning (MRP) system is an exception
report.
⊚ true
⊚ false
62) An input to the material requirements planning (MRP) system is an inventory
records file.
⊚ true
⊚ false
63) An output of MRP is a bill of materials (BOM) file.
⊚ true
⊚ false
64) A BOM file is often called a product structure file or product tree because it shows
how a product is put together.
⊚ true
⊚ false
65) Computing the quantity of each component that goes into a finished product can
be done by expanding (or exploding) each item in a product structure file and
summing at all levels.
⊚ true
⊚ false
66) A modular bill of materials includes items with fractional options.
⊚ true
⊚ false
67) A modular bill of materials is the term for an item that can be produced and
stocked as a subassembly.
⊚ true
⊚ false
68) The three main inputs to an MRP system are the bill of materials, the master
schedule and the inventory records file.
⊚ true
⊚ false
69) The MRP program performs its analysis from the bottom up of the product
structure
trees, imploding requirements level by level.
⊚ true
⊚ false
70) Net change MRP systems are "activity" driven.
⊚ true
⊚ false
71) In a net change MRP system, requirements and schedules are updated whenever a
transaction is processed that has an impact on the item.
⊚ true
⊚ false
72) In a net change MRP system, requirements and schedules are considered rigid and
never updated.
⊚ true
⊚ false
73) Net change MRP reflects the exact status of each item managed by the system in
"real time."
⊚ true
⊚ false
74) In a net change MRP program, a change in one item will result in a completely
new
inventory plan and schedule for every item in the master production schedule.
⊚ true
⊚ false
75) When formulating an MRP schedule it is assumed there will be a singular source
of
demand for products.
⊚ true
⊚ false
76) It is assumed that there are sufficient quantities of a given material to satisfy initial
demands when developing a master schedule.
⊚ true
⊚ false
77) Low level coding in MRP indicates the exact status of each item managed by the
system in "real time."
⊚ true
⊚ false
78) "Projected available balance" is a term referring to unsold finished goods
inventory.
⊚ true
⊚ false
79) Projected available balance is the amount of inventory that is expected only at the
beginning of a period.
⊚ true
⊚ false
80) Generally, determining lot sizes in MRP systems is simple.
⊚ true
⊚ false
81) A lot-for-lot (L4L) lot sizing technique does not take into account setup costs or
capacity limitations.
⊚ true
⊚ false
82) The lot-for-lot (L4L) lot sizing technique minimizes carrying cost by taking into
account setup costs and capacity limitations.
⊚ true
⊚ false
Version 1 21
83) Lot-for-lot (L4L) is the most common lot sizing technique.
⊚ true
⊚ false
84) The economic order quantity (EOQ) lot sizing technique produces or acquires
exactly the amount of product that is needed each time period with none carried over
into future periods.
⊚ true
⊚ false
85) The economic order quantity (EOQ) lot sizing technique uses the "square root
formula" to balance setup cost, carrying cost and cost of stock-outs.
⊚ true
⊚ false
86) The economic order quantity (EOQ) lot sizing technique uses the "square root
formula" to balance setup cost and carrying cost.
⊚ true
⊚ false
87) The least total cost (LTC) method lot-sizing technique calculates the order
quantity by comparing the carrying cost and the setup (or ordering) costs for various
lot sizes and then selects the lot in which these are most nearly equal.
⊚ true
⊚ false
88) The least unit cost (LUC) method lot-sizing technique calculates the order
quantity by comparing the carrying cost and the setup (or ordering) costs for various
lot sizes and then selects the lot in which these are most nearly equal.
⊚ true
⊚ false
89) The least unit cost (LUC) method of lot-sizing technique adds ordering and
inventory carrying cost for each trial lot size and divides by the number of units in
each lot size, picking the lot size with the lowest unit cost.
⊚ true
⊚ false
90) The least unit cost (LUC) method of lot-sizing adds ordering, stock-out, and
inventory carrying cost for each trial lot size and divides by the number of units in
each lot size, picking the lot size with the lowest unit cost.
⊚ true
⊚ false
91) The least unit cost (LUC) method is a more complete analysis that accounts for
ordering or setup costs that might change with order size.
⊚ true
⊚ false
92) If the ordering or setup costs remain constant, the least unit cost (LUC) method is
more attractive
⊚ true
⊚ false

CHƯƠNG 14
CHAPTER 14
1) As per the discussion on FedEx, the vision of the firm and the driver for
comprehensive technology strategy is _____________blank
A) delivery of the package is important and technology is not relevant.
B) information about a package is as important as the delivery itself but technology is
incidental.
C) delivery of the package is important though information about a package is
incidental.
D) comprehensive technology is the only important thing.
E) information about the package is as important as the delivery of the package and
that
drives comprehensive technology strategy.
2) Which of the following is not a coordinating activity related to information systems
involved in logistics planning?
A) Allocating resources.
B) Labor management.
C) Managing inventory levels.
D) Scheduling.
E) Order tracking.
3) What transportation mode has very high initial investment costs but gives a very
low cost per mile for products that are highly specialized and require no packaging?
A) Highway.
B) Rail.
C) Water.
D) Pipeline.
E) Air.
4) Very few products are moved without at least part of their journey being by which
mode of transportation?
A) Highway.
B) Rail.
C) Water.
D) Pipeline.
E) Air.
5) In the logistics-systems design matrix, volume, cost and speed of delivery are three
variables (assume three levels: low, moderate or high) used to describe attributes of
transportation modes. Rail is associated with _____________blank
A) moderate volume, moderate speed and high cost.
B) moderate volume, high speed and high cost.
C) high volume, moderate speed and low cost.
D) low volume, high cost and low speed.
E) high volume, high speed and high cost.
6) Which of the following is not a criterion that influences manufacturing plant or
warehouse facility location decisions?
A) Proximity to customers.
B) Historical cost.
C) Infrastructure of a country.
D) Quality of labor.
E) Business climate.
7) Which of the following is not a criterion that influences manufacturing plant or
warehouse facility location decisions?
A) Suppliers.
B) Free trade zones.
C) Political risk.
D) Gross national product.
E) Tariffs and customs duties.
8) Which of the following is not a criterion that influences manufacturing plant or
warehouse facility location decisions?
A) Government barriers.
B) Trading blocs.
C) Environmental regulation.
D) Immigration rules.
E) Local labor costs.
9) Which of the following is a criterion that influences manufacturing plant or
warehouse facility location decisions?
A) Proximity to customers.
B) Corporate policy.
C) Competitor's locations.
D) Competitive advantage.
E) Host community politics.
10) An important issue in facility location analysis is business climate. An
unfavorable
business climate could be indicated by _____________blank.
A) similar-sized businesses nearby
B) the willingness of local politicians to provide favorable treatment for a
consideration
C) the presence of other foreign companies in the case of international locations
D) the local presence of companies in the same industry
E) an established educational institution nearby
F) none of the answers are correct
11) One of the objectives of facility location analysis is to select a site with the lowest
total cost. Which of the following costs should be excluded from the analysis?
A) Historical costs.
B) Inbound distribution costs.
C) Land costs.
D) Construction costs.
E) Regional costs.
12) One of the objectives of facility location analysis is to select a site with the lowest
total cost. Which of the following costs should not be included in the analysis?
A) Outbound distribution costs.
B) Incidental costs.
C) Energy costs.
D) Hidden costs.
E) Taxes.
13) One of the objectives of facility location analysis is to select a site with the lowest
total cost. Which of the following are hidden costs that should be included in the
analysis?
A) Costs of the loss of customer responsiveness.
B) Supplier costs.
C) Taxes.
D) Construction costs.
E) Product life cycle costs.
14) One of the objectives in facility location analysis is to select a site with the lowest
total cost. Which of the following costs are hidden costs that should be included in the
analysis?
A) Infrastructure costs.
B) Costs of movement of preproduction material between locations.
C) Taxes.
D) Construction costs.
E) Bribery costs.
15) Which of the following is not an infrastructure criterion used in facility location
analysis?
A) Adequate school system.
B) Adequate health care.
C) Adequate transportation.
D) Adequate low-cost labor.
E) Adequate public utility systems.
16) How many free trade zones are there in the United States?
A) Less than 50.
B) Less than 100.
C) About 290.
D) More than 412.
E) About 310.
Version 1 6
17) An example of a trading bloc is _____________blank.
A) Pacific Alliance
B) Central American Free Trade Agreement countries
C) ISO-9000 companies
D) American Production and Inventory Control Society
E) Wal-Mart and its suppliers
18) According to the text, an important decision for multinational companies is the
nation in which to locate the home base for each business. Which of the following
business activities does not happen at the business's home base?
A) Core process technology is created.
B) A critical mass of production takes place.
C) The largest profits are recorded.
D) Strategy is created.
E) Core products are created.
19) Which of the following is not among the factors related to infrastructure in making
facility location decisions?
A) Satisfactory hotel accommodations.
B) Adequate air transportation.
C) Energy requirements.
D) Telecommunications requirements.
E) Willingness of local government to invest in infrastructure upgrades.
20) Which of the following is a plant location methodology that is good for locating a
single facility within a set of existing facilities based in distances and volumes of
goods shipped?
A) Factor-rating systems.
B) Centroid method.
C) Decision trees.
D) Linear programming.
E) Regression analysis.
21) In which of the following situations should we not use the transportation method
of linear programming?
A) To find a new site location for a plant.
B) To minimize costs of shipping "n" units to "m" destinations.
C) To maximize profits of shipping "n" units to "m" destinations.
D) To determine which corner of a street intersection to locate a retail service facility.
E) To locate a finished goods distribution warehouse.
22) The centroid method for plant location uses _____________blank.
A) volume of goods to be shipped between existing points
B) inbound transportation costs
C) transport times between facilities
D) correlation matrix of existing facilities
E) probabilities and payoffs
23) Plant A is located at the (X, Y) coordinates of (100, 200) and has a volume of
shipping of 500 units a day. Plant B is located at the (X, Y) coordinates of (150, 400)
and has a volume of shipping of 200 units a day. Using the centroid method, which of
the following is the X coordinate for the new plant location?
A) 100
B) 114
C) 130
D) 150
E) X coordinate cannot be computed from the data given
24) Plant A is located at the (X, Y) coordinates of (200, 500) and has a volume of
shipping of 400 units a day. Plant B is located at the (X, Y) coordinates of (300, 100)
and has a volume of shipping of 300 units a day. Using the centroid method, which of
the following is the X coordinate for the new plant location?
A) 208
B) 227
C) 243
D) 389
E) X coordinate cannot be computed from the data given
25) A company wants to determine where they should locate a new warehouse. They
have two existing production plants (i.e., Plant A and Plant B) that will ship units of a
product to this warehouse. Plant A is located at the (X, Y) coordinates of (50, 100)
and will have volume of shipping of 250 units a day. Plant B is located at the (X, Y)
coordinates of (150, 200) and will have a volume of shipping of 150 units a day. Using
the centroid method, which of the following are the X and Y coordinates for the new
plant location?
A) (81, 117)
B) (88, 138)
C) (117, 102)
D) (76, 123)
E) X and Y coordinates cannot be computed from the data given
26) Which of the following is not mentioned in the text as a technique for identifying
potential sites for plants or other types of facilities?
A) The centroid method.
B) Factor-rating systems.
C) Linear programming.
D) The transportation method of decision analysis.
E) Regression analysis.
27) Suppose that using the centroid method you found the best location for a
communications tower. The location happens to be in the middle of a pond. Then, you
should locate the tower _____________blank
A) at that location using water proof concrete and precast poles.
B) at the closest point outside the pond.
C) using some other method.
D) after considering qualitative factors such as geography, roads and utilities to help
find
the exact location.
E) None of the above
28) Using the transportation method for solving the optimal shipping a product from
factories to warehouses, as per text, you should use _____________blank
A) “≤” for constraints regarding factory capacity and “=” for constraints regarding
demand at warehouses.
B) “≥” for constraints regarding factory capacity and “≤” for constraints regarding
demand at warehouses.
C) “=” for constraints regarding factory capacity and “≥” for constraints regarding
demand at warehouses.
D) “≥” for constraints regarding factory capacity and “=” for constraints regarding
demand at warehouses.
E) None of the above
Version 1 10
29) A third-party logistics company is a firm that manages all or part of another
company's product delivery operations.
⊚ true
⊚ false
30) Logistics is the process of coordinating and moving material and other resources
from one location to another.
⊚ true
⊚ false
31) DHL and United Parcel Service are transportation companies that are prohibited
from functioning as a third-party logistics company the way Federal Express does.
⊚ true
⊚ false
32) Cross-docking is a practice used in the international shipping industry that
facilitates port utilization.
⊚ true
⊚ false
33) Cross-docking is an approach used in consolidation warehouses, where large
shipments
are broken down into small shipments for local delivery in an area.
⊚ true
⊚ false
34) Hub-and-spoke systems combine the idea of consolidation and that of
cross-docking.
⊚ true
⊚ false
35) In a hub-and-spoke system each warehouse in the system acts as a spoke.
⊚ true
⊚ false
36) The local government's willingness to invest in upgrading infrastructure to the
levels
required by a company is an important issue in a company's decision of where to
locate a new facility.
⊚ true
⊚ false
37) Facility location analysis considers the competitive imperative to be close to
customers as to timeliness of deliveries.
⊚ true
⊚ false
38) Facility location analysis considers the competitive imperative of lowest total cost.
⊚ true
⊚ false
39) Facility location analysis considers the competitive imperative of a favorable
business climate as indicated by the presence of other companies in the same industry.
⊚ true
⊚ false
40) Facility location analysis considers the competitive imperative of locating near the
appropriate labor pool to take advantage of low wage costs and/or skill levels.
⊚ true
⊚ false
41) Facility location analysis considers the competitive imperative of locating near the
appropriate labor pool to take advantage of high technical skills.
⊚ true
⊚ false
42) An example of a positive business climate that might influence a facility location
decision is increasing governmental costs and increasing property taxes.
⊚ true
⊚ false
43) A favorable business climate in facility location decision making might include
government legislation of tax abatements.
⊚ true
⊚ false
44) A favorable business climate in facility location decision making might include
local government intervention to facilitate businesses locating in an area via subsidies.
⊚ true
⊚ false
45) A favorable business climate in facility location decision making might include
local government providing basic skill training for prospective members of the
workforce.
⊚ true
⊚ false
46) In facility location decision making the educational and skill levels of the labor
pool must match the company's needs.
⊚ true
⊚ false
47) In facility location decision making matching the educational and skill levels of
the labor pool to a company's needs is even more important than the labor pool's
willingness and ability to learn.
⊚ true
⊚ false
48) Because the world is becoming more highly interconnected, the proximity of an
important supplier's plants is not crucial in supporting lean production methods.
⊚ true
⊚ false
49) Issues of product mix and capacity are strongly interconnected to the facility
location decision.
⊚ true
⊚ false
50) A free trade zone operates under different rules and laws than a foreign trade zone.
⊚ true
⊚ false
51) A free trade zone is typically a closed facility into which foreign goods can be
brought without being subject to the usual customs requirements.
⊚ true
⊚ false
52) The objective of facility location analysis is to select the site with the lowest total
cost.
⊚ true
⊚ false
53) Governmental barriers to enter and locate in many countries are increasing
through
restrictive protectionist legislation.
⊚ true
⊚ false
54) Quality of life in a host community is not a major factor in making the facility
location decision.
⊚ true
⊚ false
55) In facility location decision making, the factor-rating system is one of the least
used
general location techniques.
⊚ true
⊚ false
56) In facility location decision making, the factor-rating system is based on linear
programming.
⊚ true
⊚ false
57) A major problem in a plant location decision based on the factor-rating system is
that simple point-rating schemes do not account for the wide variance of costs that
may occur within each factor used in the analysis.
⊚ true
⊚ false
58) Facility location decisions are made using analytical techniques that are able to
weigh a large number of different variables equally.
⊚ true
⊚ false
59) Services typically have multiple site locations to maintain close contact with
customers.
⊚ true
⊚ false