OPSM 3830 Fite Exam 1 Review
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Lean production systems incorporate the advantages of both mass production and craft production.
(TF) - CORRECT ANSWER True
Select the factors which contributed to the bankruptcies of Sears and Toys 'R' Us.
1) Too much debt
2) poor operational execution
3) management turnover
4) competitive threats - CORRECT ANSWER All of them
Many operations management decisions can be described as tradeoffs. (TF) - CORRECT
ANSWER True
Service often requires greater labor content, whereas manufacturing is more capital intensive. (TF) -
CORRECT ANSWER True
Operations, marketing, and finance function independently of each other in most organizations. (TF) -
CORRECT ANSWER False
Product design and process selection are examples of ________ decisions. - CORRECT
ANSWER system design
If a logistics manager wants to lower inventory costs, which of the following is also likely to be true: -
CORRECT ANSWER Transportation costs will go up, but this will be offset by warehouse
facility and labor savings.
Companies whose core competency focuses on efficiency generate high margins. (TF) - CORRECT
ANSWER False
Margins are typically low, so these companies look to improve overall profits with increased scale
, In an assembly operation at a furniture factory, six employees assembled an average of 450 standard
dining chairs per five-day week. What is the labor productivity of this operation? - CORRECT
ANSWER 15 chairs/worker/day
the manger of a carpet store is trying to determine the best installation crew size. - CORRECT
ANSWER Find the average installation per worker in each crew size
the weeklly output of a fabrication process is shown below.
what is the average multifactor productivity across both weeks? - CORRECT
ANSWER Productivity = Output/Input
= Output/(Labor+materials+overhead)
1.463
Based on the outsourcing video you watched, which statement best characterizes Warren Buffett's
point-of-view on outsourcing? - CORRECT ANSWER Outsourcing is often good for
companies and the government should create social safety nets for displaced workers.
Which of the factors below contribute to the creative destruction process which leads most businesses
to fail over time?
1. Neglecting operations strategy
2. Failing to take advantage of strengths and opportunities
3. Failing to recognize competitive threats
4. Underinvestment in R&D
5. Neglecting investments in capital and human resources - CORRECT ANSWER All of the
above
Securing the best partners within your supply chain will typically confer you a competitive advantage.
- CORRECT ANSWER False
Forecasting models with large exponential smoothing factors tend to give more weight to historical
demand data. - CORRECT ANSWER False
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Lean production systems incorporate the advantages of both mass production and craft production.
(TF) - CORRECT ANSWER True
Select the factors which contributed to the bankruptcies of Sears and Toys 'R' Us.
1) Too much debt
2) poor operational execution
3) management turnover
4) competitive threats - CORRECT ANSWER All of them
Many operations management decisions can be described as tradeoffs. (TF) - CORRECT
ANSWER True
Service often requires greater labor content, whereas manufacturing is more capital intensive. (TF) -
CORRECT ANSWER True
Operations, marketing, and finance function independently of each other in most organizations. (TF) -
CORRECT ANSWER False
Product design and process selection are examples of ________ decisions. - CORRECT
ANSWER system design
If a logistics manager wants to lower inventory costs, which of the following is also likely to be true: -
CORRECT ANSWER Transportation costs will go up, but this will be offset by warehouse
facility and labor savings.
Companies whose core competency focuses on efficiency generate high margins. (TF) - CORRECT
ANSWER False
Margins are typically low, so these companies look to improve overall profits with increased scale
, In an assembly operation at a furniture factory, six employees assembled an average of 450 standard
dining chairs per five-day week. What is the labor productivity of this operation? - CORRECT
ANSWER 15 chairs/worker/day
the manger of a carpet store is trying to determine the best installation crew size. - CORRECT
ANSWER Find the average installation per worker in each crew size
the weeklly output of a fabrication process is shown below.
what is the average multifactor productivity across both weeks? - CORRECT
ANSWER Productivity = Output/Input
= Output/(Labor+materials+overhead)
1.463
Based on the outsourcing video you watched, which statement best characterizes Warren Buffett's
point-of-view on outsourcing? - CORRECT ANSWER Outsourcing is often good for
companies and the government should create social safety nets for displaced workers.
Which of the factors below contribute to the creative destruction process which leads most businesses
to fail over time?
1. Neglecting operations strategy
2. Failing to take advantage of strengths and opportunities
3. Failing to recognize competitive threats
4. Underinvestment in R&D
5. Neglecting investments in capital and human resources - CORRECT ANSWER All of the
above
Securing the best partners within your supply chain will typically confer you a competitive advantage.
- CORRECT ANSWER False
Forecasting models with large exponential smoothing factors tend to give more weight to historical
demand data. - CORRECT ANSWER False
