Exam 1 Flashcards
An operations and supply chain strategy must be integrated with the organization’s corporate strategy.
True
What is meant by the term “operations effectiveness”?
Performing activities in a manner that best implements strategic priorities at minimum cost
Which of the following is not a major strategic operational competitive dimension that forms a company’s competitive position?
Management acumen
A firm has to excel simultaneously on all competitive dimensions in order to achieve success.
False
Straddling strategy is risky, which occurs when a company seeks to match the benefits of a successful position while maintaining its existing position.
true
Which of the below supply chain strategies will be impacted most if inventory risks occur?
Lean Practices
Supply chain risk is the likelihood of a disruption that would impact the ability of a company to continuously supply products or services.
true
Productivity is a measure of how well a country, industry, or business unit is using its resources and it is a relative measure.
true
In a partial measure of productivity, the denominator of the ratio would include all resources used or all inputs.
false
In addition to economic prosperity and environmental Stewardship, social responsibility is the third aspect/criteria that is used to evaluate a firm. (T/F)
true
Time series forecasting models make predictions about the future based on analysis of past data. (T/F)
true
Which of the following is NOT one of the basic forecasting types discussed in our class meeting?
Force field analysis
In most cases, demand pattern for products or services can be broken down into several components. Which of the following is NOT considered a component of demand pattern?
past data
Cyclical influences are more difficult to determine because the time span may be unknown or the cause of the cycle may not be considered. (T/F)
true
In a forecasting model using a simple moving average, the longer the time span used for calculating the moving average, the closer the average follows volatile trends. (T/F)
false
Simple exponential smoothing forecasts always lag behind the actual occurrence but can be corrected somewhat with a trend adjustment. (T/F)
True
Which of the following forecasting methodologies can be used for causal relationship forecasting?
Linear regression
Using the simple exponential smoothing model for forecasting, F_t = F_(t-1) + α(A_(t-1)-F_(t-1)), the smoothing constant alpha (α) determines the level of smoothing and which one of the following?
The speed of reaction to differences between forecasts and actual results
Simple moving average, weighted moving average, and simple exponential smoothing are usually used for short term forecasting. (T/F)
True
When it comes to measuring the forecasting model performance, smaller values of Mean Absolute Deviation (MAD) indicates a more accurate model. (T/F)
True
The objective of strategic capacity planning is to provide an approach for determining the overall capacity level of labor-intensive resources.
False
When evaluating capacity, managers need to consider both resource inputs and product outputs.
True
The capacity utilization rate is found by dividing capacity used by best operating level.
True
At some point, the size of a growing plant can become too large and diseconomies of scale become a capacity planning problem.
true
The way to build in greater flexibility in your workers is to do which of the following?
Provide a broader range of training
Which of the following is NOT one of the considerations in changing capacity?
immediate product demand
A capacity cushion is the amount of capacity less than expected demand.
False
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
The capacity focus concept can be put into practice through a mechanism called which of the following?
Plant within a plant (PWP)
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
One of the reasons that customer order decoupling point is strategically important is because it can affect the lead time to fulfill the customer’s order.
True
A firm fills its customer’s orders from finished goods inventory. It is a:
Make-to-order
Which of the below production strategies have the highest level of customization?
Engineer to order
An example of an assemble-to-order firm is Dell computer.
true
Engineer-to-order firms will work with the customer to design the product, and then make it from purchased materials and components.
True
Which of the following basic types of facility layouts is the one where similar equipment or functions are grouped together?
Work Center
One difference between an assembly line process flow and a continuous process flow is that on the assembly line the flow is discrete rather than continuous.
true
Little’s law says there is a long-term relationship between the inventory, throughput, and flow time of a production system. The relationship is: Throughput rate = Inventory × Flow time.
False
Total average value of inventory is the sum of the value of raw materials and finished goods inventory.
False
In designing a production layout, a flexible line layout might have the shape of a “U”.
True
