POM TEST 1 - TEST QUESTIONS (NO T/F).
A major competitive dimension that forms a company's strategic operational competitive
position in their strategic planning is which of the following? - Answers :Cost or price
An activity-system map is which of the following? - Answers :A diagram that shows how
a company's strategy is delivered to customers
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%? - Answers :Machine C
EMV of Machine A = 0.9 x 45,000 = 40,500; EMV of Machine B = 0.5 x $80,000 =
$40,000; and EMV of Machine C = 0.75 x 60,000 = $45,000. Since
$45,000>$40,500>$40,000 you would select Machine C.
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? -
Answers :Long-range
Capacity planning involving consideration of production scheduling and inventory
position is characterized by which one of the following time durations? - Answers :Short-
range
Capacity planning that involves hiring, layoffs, some new tooling, minor equipment
purchases, and subcontracting is considered as which one of the following planning
horizons? - Answers :Intermediate range
Compared with a service operation, a manufacturing operation's capacity is which of the
following? - Answers :Demand can be smoothed by inventory policies
Current issues in OSCM do not include: - Answers :Increasing global supply chain
employment
Decisions that relate to the design of the processes and the infrastructure needed to
support these processes relate to which OSCM concept? - Answers :integrating
operations and supply chain strategy with a firm's operational capabilities
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? - Answers :Partial
measure
, 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? - Answers :1.25
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? - Answers :0.75
In development of an operations and supply chain strategy, which of the following may
be an important product-specific criteria to consider? - Answers :Supplier after-sale
support
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? - Answers :8.95%
Labor productivity is output (revenue) divided by hours of labor input. For April, revenue
was $60,000 and labor hours were 4x[(40x6)+(25x4)]. This is 60,000/1,360 or 44.12
dollars per hour of labor. For May, revenue was $50,000 and labor hours were
4x[(40x6)+(10x2)] This is 50,000/1,040 or 48.07 dollars per hour of labor a difference of
$3.95 per hour. The percentage change in productivity between April and May, then, is
3.95/44.12 = 0.0895 x 100 = 8.95%. (Note: this analysis assumes four weeks in each
month and equal productivity for each hour worked.)
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? - Answers :A and B above (Partial Measure and Multi-factor
Measure)
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? - Answers :100 units per hour
A capacity cushion is an amount of capacity in excess of expected demand
Which of the following are not listed in the text as jobs in OSCM? - Answers :Data
Center manager
Which of the following is a multifactor measure of productivity? - Answers :Output /
(Labor + Capital + Energy)
A major competitive dimension that forms a company's strategic operational competitive
position in their strategic planning is which of the following? - Answers :Cost or price
An activity-system map is which of the following? - Answers :A diagram that shows how
a company's strategy is delivered to customers
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%? - Answers :Machine C
EMV of Machine A = 0.9 x 45,000 = 40,500; EMV of Machine B = 0.5 x $80,000 =
$40,000; and EMV of Machine C = 0.75 x 60,000 = $45,000. Since
$45,000>$40,500>$40,000 you would select Machine C.
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? -
Answers :Long-range
Capacity planning involving consideration of production scheduling and inventory
position is characterized by which one of the following time durations? - Answers :Short-
range
Capacity planning that involves hiring, layoffs, some new tooling, minor equipment
purchases, and subcontracting is considered as which one of the following planning
horizons? - Answers :Intermediate range
Compared with a service operation, a manufacturing operation's capacity is which of the
following? - Answers :Demand can be smoothed by inventory policies
Current issues in OSCM do not include: - Answers :Increasing global supply chain
employment
Decisions that relate to the design of the processes and the infrastructure needed to
support these processes relate to which OSCM concept? - Answers :integrating
operations and supply chain strategy with a firm's operational capabilities
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? - Answers :Partial
measure
, 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? - Answers :1.25
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? - Answers :0.75
In development of an operations and supply chain strategy, which of the following may
be an important product-specific criteria to consider? - Answers :Supplier after-sale
support
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? - Answers :8.95%
Labor productivity is output (revenue) divided by hours of labor input. For April, revenue
was $60,000 and labor hours were 4x[(40x6)+(25x4)]. This is 60,000/1,360 or 44.12
dollars per hour of labor. For May, revenue was $50,000 and labor hours were
4x[(40x6)+(10x2)] This is 50,000/1,040 or 48.07 dollars per hour of labor a difference of
$3.95 per hour. The percentage change in productivity between April and May, then, is
3.95/44.12 = 0.0895 x 100 = 8.95%. (Note: this analysis assumes four weeks in each
month and equal productivity for each hour worked.)
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? - Answers :A and B above (Partial Measure and Multi-factor
Measure)
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? - Answers :100 units per hour
A capacity cushion is an amount of capacity in excess of expected demand
Which of the following are not listed in the text as jobs in OSCM? - Answers :Data
Center manager
Which of the following is a multifactor measure of productivity? - Answers :Output /
(Labor + Capital + Energy)
