ISDS 3115 FINAL EXAM - QUIZ 2 MC QUESTIONS
WITH VERIFIED ANSWERS
Outsourcing is a form of specialization that allows the outsourcing firm to focus on its
key success factors.
t/f - Answers - true
A restaurant runs a special promotion on lobster and plans to sell twice as many
lobsters as usual. When this large order is sent to the distributor, the distributor
assumes the large size is a trend, not a one-time event. The distributor therefore places
an even larger order with the lobsterman.
This behavior is the result of which of the following?
A.
double marginalization
B.
CPFR
C.
the bullwhip effect
D.
vendor-managed inventory
E.
postponement - Answers - bullwhip effect
Which of the following statements about ABC analysis is FALSE?
A.
ABC analysis is based on the presumption that all items must be tightly controlled to
produce important cost savings.
B.
In ABC analysis, forecasting methods for "C" items may be less sophisticated than for
"A" items.
C.
In ABC analysis, "A" items should have tighter physical inventory control than "B" or "C"
items have.
D.
ABC analysis is based on the presumption that controlling the few most important items
produces the vast majority of inventory savings.
E.
Criteria other than annual dollar volume, such as high holding cost or delivery problems,
can determine item classification in ABC analysis. - Answers - A
Which of the following statements about the basic EOQ model is TRUE?
A.
If annual demand were to double, the EOQ would increase.
,B.
If the ordering cost were to double, the EOQ would rise.
C.
If the carrying cost were to increase, the EOQ would fall.
D.
If annual demand were to double, the number of orders per year would increase.
E.
All of the above statements are true. - Answers - e
Which of the following statements about quantity discounts is FALSE?
A.
The larger the annual demand, the less attractive a discount schedule will be.
B.
If carrying costs are expressed as a percentage of value, EOQ is larger at each lower
price in the discount schedule.
C.
The smaller the ordering cost, the less attractive a discount schedule will be.
D.
The cost-minimizing solution may or may not be where annual holding costs equal
annual ordering costs.
E.
In inventory management, item cost becomes relevant to order quantity decisions when
a quantity discount is available. - Answers - a
Enterprise resource planning (ERP):
A.
does not integrate well with functional areas other than operations.
B.
is inexpensive to implement.
C.
automates and integrates the majority of business processes.
D.
seldom requires software upgrade or enhancement.
E.
all of the above - Answers - c
Which one of the following is not a benefit of JIT implementation?
A.
quality improvement
B.
cost reduction
C.
rapid throughput
D.
rework reduction
E.
, variability increase - Answers - e
Kanban is associated with all EXCEPT which of the following?
A.
small lot sizes
B.
signals, such as cards, lights, or flags
C.
moving inventory only as needed
D.
reductions in inventory
E.
increased material handling - Answers - e
All of the following decisions fall within the scope of operations management EXCEPT
for:
A.
managing quality and statistical process control.
B.
design of goods and services.
C.
creating the company income statement.
D.
location strategies.
E.
human resources, job design and work measurement. - Answers - c
Which of the following is not part of value-chain analysis?
A.
quality management
B.
supply chain management
C.
product research
D.
project management
E.
human resources - Answers - d
The phases of project management are:
A.
planning, scheduling, and controlling.
Your answer is correct.
B.
planning, organizing, staffing, leading, and controlling.
C.
WITH VERIFIED ANSWERS
Outsourcing is a form of specialization that allows the outsourcing firm to focus on its
key success factors.
t/f - Answers - true
A restaurant runs a special promotion on lobster and plans to sell twice as many
lobsters as usual. When this large order is sent to the distributor, the distributor
assumes the large size is a trend, not a one-time event. The distributor therefore places
an even larger order with the lobsterman.
This behavior is the result of which of the following?
A.
double marginalization
B.
CPFR
C.
the bullwhip effect
D.
vendor-managed inventory
E.
postponement - Answers - bullwhip effect
Which of the following statements about ABC analysis is FALSE?
A.
ABC analysis is based on the presumption that all items must be tightly controlled to
produce important cost savings.
B.
In ABC analysis, forecasting methods for "C" items may be less sophisticated than for
"A" items.
C.
In ABC analysis, "A" items should have tighter physical inventory control than "B" or "C"
items have.
D.
ABC analysis is based on the presumption that controlling the few most important items
produces the vast majority of inventory savings.
E.
Criteria other than annual dollar volume, such as high holding cost or delivery problems,
can determine item classification in ABC analysis. - Answers - A
Which of the following statements about the basic EOQ model is TRUE?
A.
If annual demand were to double, the EOQ would increase.
,B.
If the ordering cost were to double, the EOQ would rise.
C.
If the carrying cost were to increase, the EOQ would fall.
D.
If annual demand were to double, the number of orders per year would increase.
E.
All of the above statements are true. - Answers - e
Which of the following statements about quantity discounts is FALSE?
A.
The larger the annual demand, the less attractive a discount schedule will be.
B.
If carrying costs are expressed as a percentage of value, EOQ is larger at each lower
price in the discount schedule.
C.
The smaller the ordering cost, the less attractive a discount schedule will be.
D.
The cost-minimizing solution may or may not be where annual holding costs equal
annual ordering costs.
E.
In inventory management, item cost becomes relevant to order quantity decisions when
a quantity discount is available. - Answers - a
Enterprise resource planning (ERP):
A.
does not integrate well with functional areas other than operations.
B.
is inexpensive to implement.
C.
automates and integrates the majority of business processes.
D.
seldom requires software upgrade or enhancement.
E.
all of the above - Answers - c
Which one of the following is not a benefit of JIT implementation?
A.
quality improvement
B.
cost reduction
C.
rapid throughput
D.
rework reduction
E.
, variability increase - Answers - e
Kanban is associated with all EXCEPT which of the following?
A.
small lot sizes
B.
signals, such as cards, lights, or flags
C.
moving inventory only as needed
D.
reductions in inventory
E.
increased material handling - Answers - e
All of the following decisions fall within the scope of operations management EXCEPT
for:
A.
managing quality and statistical process control.
B.
design of goods and services.
C.
creating the company income statement.
D.
location strategies.
E.
human resources, job design and work measurement. - Answers - c
Which of the following is not part of value-chain analysis?
A.
quality management
B.
supply chain management
C.
product research
D.
project management
E.
human resources - Answers - d
The phases of project management are:
A.
planning, scheduling, and controlling.
Your answer is correct.
B.
planning, organizing, staffing, leading, and controlling.
C.
