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BSOP206 Final exam

Page 1

Question 1.1.(TCO 5) Using a four-year moving average forecast the amount for year 10.





















(Points : 10)

Year 10 = 122.87
Year 10 =107.5
Year 10 =110.67
Year 10 =115.87

Question 2.2.(TCO 5) Favors Distribution Company purchases small imported trinkets in bulk, packages them, and sells them to retail stores. In February the company predicted they would sell 10,000 trinkets. Their sales for February were 9,000 trinkets. Using a smoothing constant of an alpha of 0.3, the sales manager wants to forecast March sales using exponential smoothing. (Points : 10)

9,700 trinkets
9,800 trinkets
9,500 trinkets
10,200 trinkets

Question 3.3.(TCO 8) ABC Motors, Inc., wants to increase capacity by adding another wheel balancer. The fixed cost for a machine is $6,400, and its variable cost is $3.50 per unit. ABC charges $7.50 to balance one wheel. What is the break-even point in units? (Points : 10)

250 wheels
1600 wheels
3000 wheels

Question 4.4.(TCO 9) A full-service gas station is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites.





Affluence of local population




Traffic Flow




Parking availability




Growth potential




Using the factory rating method, the score for Midtown is _____ and the score for Bayside is ______. (Points : 10)

Midtown = 7; Bayside = 8
Midtown = 30; Bayside = 29
Midtown = 30; Bayside = 45
Midtown = 29; Bayside = 30

Question 5.5.(TCO 4) The Merry Baking Company bakes 400 sheet pans of cookies during the two eight-hour shifts they run each day. They recently installed a couple of larger ovens. The new ovens have enabled Merry Baking to increase their productivity by 15%. The productivity of Merry Baking is now approximately _____. (Points : 10)

1.8 sheet pans/hour
7.6 sheet pans/hour
14.4 sheet pans/hour
28.75 sheet pans/hour

Question 6.6.(TCO 8) ABC Cleaners washing machines have a design capacity of 2800 pounds a day. Because of scheduled maintenance of their equipment, management feels that only 2700 pounds of clothes can be washed in a day. Yesterday three employees were sick and only 2100 pounds of clothes were washed. What is the efficiency of the washing machine yesterday? (Points : 10)


Page 2

Question 1.1.(TCO 7) The second step in building a house of quality is to _____.(Points : 5)

determine design characteristics
develop importance ratings
evaluate competing products
determine how our goods/services will satisfy our customers
identify supplier wants

Question 2.2.(TCO 7) Which of the following isfalseregarding computer-aided design (CAD)?(Points : 5)

It is efficient to use in most manufacturing and design settings.
It is an effective technology and in significant use.
It results in shorter development cycles for virtually all products.
It is the use of computers to interactively design products and prepare engineering documentation.
It is slower to design a product without using CAD.

Question 3.3.(TCO 7) Which of the following does not make products more environmentally friendly?(Points : 5)

Using less materials
Less recycled materials
Using less energy
Ability to recycle product
All of the above

Question 4.4.(TCO 7) A forecast with a time horizon of about three months to three years is typically called a _____.(Points : 5)

long-range forecast
medium-range forecast
short-range forecast
weather forecast
strategic forecast

Question 5.5.(TCO 8) The automatic placement and withdrawal of parts and products into and from selected places in a warehouse describes _____.(Points : 5)


Question 6.6.(TCO 8) Actual output as a percent of design capacity is _____.(Points : 5)

effective capacity
None of the above

Question 7.7.(TCO 8) A system using an automated work cell controlled by electronic signals from a common centralized computer facility is called a(n) _____.(Points : 5)

adaptive control system
flexible manufacturing system
automatic guided vehicle (AGV) system
manufacturing cell

Question 8.8.(TCO 8) Service blueprinting _____.(Points : 5)

provides the basis to negotiate prices with suppliers
mimics the way people communicate
determines the best time for each step in the process
focuses on the provider’s interaction with the customer
can only be successful with two-dimensional processes

Question 9.9.(TCO 1) Which of the following is not an element of the management process?(Points : 5)

All of the above are elements of the management process.

Question 10.10.(TCO 1) Operations management is applicable _____.(Points : 5)

mostly to the service sector
to services exclusively
mostly to the manufacturing sector
to manufacturing and service sectors
to the manufacturing sector exclusively

Question 11.11.(TCO 2) Which of the following is an example of competing on quick response?(Points : 5)

A firm produces its product with less raw material waste than its competitors.
A firm offers more reliable products than its competitors.
A firm’s products are introduced into the market slower than its competitors.
A firm’s research and development department generates many ideas for new products.
None of the above

Question 12.12.(TCO 2) Which of the following is not an operations strategy?(Points : 5)

Low-cost leadership
All of the above are operations strategies.
None of the above are operations strategies.

Question 13.13.(TCO 2) Which of the following represent reasons for globalizing operations?(Points : 5)

Increase costs
Decrease supply chain
Less goods and services
Attract and retain global talent
All of the above

Question 14.14.(TCO 3) The cost of quality (COQ) is associated with _____.(Points : 5)

training costs
inspection costs
scrap and rework costs
warranty and service costs
All of the above

Question 15.15.(TCO 3) A process-focused process is commonly used to produce _____.(Points : 5)

high-volume, high-variety products
low-volume, high-variety products
high-volume, low-variety products
low-variety products at either high- or low-volume

Page 3

Question 1.1.(TCO 3) A fishbone diagram is also known as a(n)?(Points : 5)

Kaizen diagram
Kanban diagram
Taguchi diagram
Okinawa diagram
Cause and effect

Question 2.2.(TCO 3) Total quality management emphasizes _____.(Points : 5)

the responsibility of the quality control staff to identify and solve all quality-related problems
a commitment to quality that goes beyond internal company issues to suppliers and customers
a system where strong managers are the only decision makers
a process where mostly statisticians get involved
ISO 14000 certification

Question 3.3.(TCO 6) Products designed in easily segmented components are known as _____.(Points : 5)

Ovular designs
Robust designs
CAD Designs
CAM Designs
None of the above

Question 4.4.(TCO 6) Which of the following istrueconcerning CAD?(Points : 5)

Accurate information stays within the departments.
Most product costs are determined at the production stage.
Design options are easier to review before final commitments are made.
Virtually all products have their development cycle lengthened.
All of the above

Question 5.5.(TCO 6) The product design technique that can be produced to requirement even with unfavorable conditions in the production process is?(Points : 5)

CAD Design
CAM Design
Robust Design
Modular Design

Question 6.6.(TCO 10) Four of the five components of job design are _____.(Points : 5)

employment stability, work schedules, work sampling, motivation, and incentive systems
job specialization, job expansion, physiological components, and self-directed teams
labor specialization and enrichment, motivation and incentive systems, employment stability, and work sampling
ergonomics and work methods, method time measurement, work schedules, and incentive systems
job expansion, self-directed teams, motivation/incentive systems, and job specialization

Question 7.7.(TCO 10) Mutual trust is _____.(Points : 5)

when employees have gained the trust of management
reflected in reasonable, documented employment policies, honestly, and equitably implemented to the satisfaction of both management and the employees
when management has gained the trust of the employees
when management recognizes that the employees are competent, motivated people both able and willing to perform at the level required to produce a quality product
when management and the employees both agree on the objectives

Question 8.8.(TCO 11) In the make-or-buy decision, one of the reasons for buying is _____.(Points : 5)

to assure adequate supply
lower acquisition cost
to obtain desired quality
to remove supplier collusion

Question 9.9.(TCO 11) A focused factory _____.(Points : 5)

may not be focused in ways other than by product or layout
processes lots of different products at the same time
is the only way to manufacture customized products
is a variation of a job shop
None of the above

Question 10.10.(TCO 11) What type of negotiating strategy requires the supplier to open its books to the purchasers?(Points : 5)

Cost-based price model
Market-based price
Competitive bidding
Price-based model
None of the above

Question 11.11.(TCO 11) The three classic types of negotiation strategies are _____.(Points : 5)

vendor evaluation, vendor development, and vendor selection
Theory X, Theory Y, and Theory Z
many suppliers, few suppliers, and keiretsu
cost-based price model, manufacturing-based price model, and competitive bidding
None of the above

Question 12.12.(TCO 12) Planning tasks associated with loading, sequencing, expediting, and dispatching typically fall under _____.(Points : 5)

short-range plans
intermediate-range plans
long-range plans
mission-related planning
strategic planning

Question 13.13.(TCO 12) Which of the following aggregate planning strategies is a “capacity option?”(Points : 5)

Influencing demand by changing price
Influencing demand by extending lead times
Changing inventory locations
Influencing demand by back ordering

Question 14.14.(TCO 12) The typical time horizon for aggregate planning is _____.(Points : 5)

less than a month
up to three months
three to four months
over one year
None of the above

Question 15.15.(TCO 13) Infant mortality refers to which one of the following examples?(Points : 5)

High frequency on the left side of the MTBF distribution
Failure of items between vendor and supplier
Failure of products with a very short life cycle
Market failure of brand new products
High failure rate often encountered in the very early stages of the lifetime of a product

1.(TCO 7) Explain the concepts of the product life cycle and identify the four phases of the product development cycle. Make sure you define the strategies used in each phase.(Points : 30)

Question 2.2.(TCO 2) Explain the linkage between Key Success Factors, core competencies, and Operations Management. Please provide an example for a manufacturing environment and a service environment.(Points : 30)

Question 3.3.(TCO 11) Explain the linkage and importance of ethics in Operations Management. Identify three ethical challenges the OM managers have to deal with. (Points : 30)

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