OMGT Exam Multiple Choice Study Guide | Operations Management Review, Practice
Questions & Key Concepts
18) Which of the following statements regarding the supply chain is TRUE?
A) A second-tier supplier is downstream from a first-tier supplier.
B) A first-tier supplier is upstream from a second-tier supplier.
C) A customer is upstream from a first-tier supplier.
D) A first-tier supplier is downstream from a second-tier supplier. - ANS ✔✔D) A first-tier
supplier is downstream from a second-tier supplier.
27) Efforts to improve cooperation among firms in the supply chain can be characterized as:
A) globalization.
B) domestic focus.
C) relationship management.
D) electronic commerce. - ANS ✔✔C) relationship management.
Which department is least likely to interact with the purchasing function?
A) engineering
B) finance
C) human resources
D) operations - ANS ✔✔C) human resources
32) Which of the following is NOT a trend in operations management?
A) increased use of electronic commerce
B) increased globalization
C) decreased delivery times
D) decreased customization - ANS ✔✔D) decreased customization
,Planning numbers needed for effective decision making are typically developed by:
A) forecasting.
B) capacity planning.
C) inventory management.
D) process selection. - ANS ✔✔A) forecasting.
12) The ability to produce a wide range of products or service is:
A) mix flexibility.
B) changeover flexibility.
C) volume flexibility.
D) run flexibility. - ANS ✔✔A) mix flexibility.
7) Highly automated batch processes that can reduce the cost of making similar groups of
products are:
A) functional layouts.
B) flexible manufacturing systems.
C) make-to-stock.
D) adjacent processes. - ANS ✔✔B) flexible manufacturing systems.
8) The time between completions of successive units on a production line is called:
A) cycle time.
B) takt time.
C) elapsed time.
D) work time. - ANS ✔✔A) cycle time.
,9) An advantage of a production line process is:
A) the volume of output needed to justify the investment.
B) the degree of flexibility of the process.
C) the per unit cost of items produced on the line.
D) the range of output typically produced on such a process. - ANS ✔✔C) the per unit cost of
items produced on the line.
10) Which of these manufacturing processes is most likely dictated by the physical
characteristics of the product being produced?
A) continuous flow
B) job shop
C) batch
D) production line - ANS ✔✔A) continuous flow
1) Structural elements of a business include:
A policies.
B people.
C decision rules.
D computer systems. - ANS ✔✔D computer systems.
2) ________ is an example of an infrastructural element.
A) A building
B) An organizational structure
C) Office equipment
D) A fleet of delivery trucks - ANS ✔✔B) An organizational structure
11) Assemble-to-order occurs upstream from:
, A) finishing.
B) design.
C) material sourcing.
D) fabrication. - ANS ✔✔A) finishing.
12) The greater the emphasis on intangible activities, the more management's attention will be
directed to:
A) buildings and property.
B) training employees.
C) truck fleets.
D) material costs. - ANS ✔✔B) training employees.
13) The point where the customer interfaces directly with the service organization is:
A) the back room.
B) onstage.
C) the floor.
D) the front room. - ANS ✔✔D) the front room.
14) A legal service in a corporate acquisition probably scores:
A) high on customization and high on intangible activities.
B) low on customization and high on physical activities.
C) high on customer contact and low on intangible activities.
D) low on customer contact and low on intangible activities. - ANS ✔✔A) high on customization
and high on intangible activities.
2) A sporting apparel manufacturer that produces t-shirts to commemorate significant athletic
achievements for proud students and alumni probably uses:
Questions & Key Concepts
18) Which of the following statements regarding the supply chain is TRUE?
A) A second-tier supplier is downstream from a first-tier supplier.
B) A first-tier supplier is upstream from a second-tier supplier.
C) A customer is upstream from a first-tier supplier.
D) A first-tier supplier is downstream from a second-tier supplier. - ANS ✔✔D) A first-tier
supplier is downstream from a second-tier supplier.
27) Efforts to improve cooperation among firms in the supply chain can be characterized as:
A) globalization.
B) domestic focus.
C) relationship management.
D) electronic commerce. - ANS ✔✔C) relationship management.
Which department is least likely to interact with the purchasing function?
A) engineering
B) finance
C) human resources
D) operations - ANS ✔✔C) human resources
32) Which of the following is NOT a trend in operations management?
A) increased use of electronic commerce
B) increased globalization
C) decreased delivery times
D) decreased customization - ANS ✔✔D) decreased customization
,Planning numbers needed for effective decision making are typically developed by:
A) forecasting.
B) capacity planning.
C) inventory management.
D) process selection. - ANS ✔✔A) forecasting.
12) The ability to produce a wide range of products or service is:
A) mix flexibility.
B) changeover flexibility.
C) volume flexibility.
D) run flexibility. - ANS ✔✔A) mix flexibility.
7) Highly automated batch processes that can reduce the cost of making similar groups of
products are:
A) functional layouts.
B) flexible manufacturing systems.
C) make-to-stock.
D) adjacent processes. - ANS ✔✔B) flexible manufacturing systems.
8) The time between completions of successive units on a production line is called:
A) cycle time.
B) takt time.
C) elapsed time.
D) work time. - ANS ✔✔A) cycle time.
,9) An advantage of a production line process is:
A) the volume of output needed to justify the investment.
B) the degree of flexibility of the process.
C) the per unit cost of items produced on the line.
D) the range of output typically produced on such a process. - ANS ✔✔C) the per unit cost of
items produced on the line.
10) Which of these manufacturing processes is most likely dictated by the physical
characteristics of the product being produced?
A) continuous flow
B) job shop
C) batch
D) production line - ANS ✔✔A) continuous flow
1) Structural elements of a business include:
A policies.
B people.
C decision rules.
D computer systems. - ANS ✔✔D computer systems.
2) ________ is an example of an infrastructural element.
A) A building
B) An organizational structure
C) Office equipment
D) A fleet of delivery trucks - ANS ✔✔B) An organizational structure
11) Assemble-to-order occurs upstream from:
, A) finishing.
B) design.
C) material sourcing.
D) fabrication. - ANS ✔✔A) finishing.
12) The greater the emphasis on intangible activities, the more management's attention will be
directed to:
A) buildings and property.
B) training employees.
C) truck fleets.
D) material costs. - ANS ✔✔B) training employees.
13) The point where the customer interfaces directly with the service organization is:
A) the back room.
B) onstage.
C) the floor.
D) the front room. - ANS ✔✔D) the front room.
14) A legal service in a corporate acquisition probably scores:
A) high on customization and high on intangible activities.
B) low on customization and high on physical activities.
C) high on customer contact and low on intangible activities.
D) low on customer contact and low on intangible activities. - ANS ✔✔A) high on customization
and high on intangible activities.
2) A sporting apparel manufacturer that produces t-shirts to commemorate significant athletic
achievements for proud students and alumni probably uses:
