TEST BANK for Operations Management, 14th Edition by William J. Stevenson, Verified
Chapters 1 - 19, Complete Newest Version
Current information on _________ can have a significant impact on forecast accuracy:
A. prices
B. promotion
C. inventory
D. competition
E. all of the above E. all of the above
A managerial approach toward forecasting which seeks to actively influence demand is:
A. reactive
B. proactive
C. influential
D. protracted
E. retroactive B. proactive
Customer service levels can be improved by better:
A. mission statements
B. control charting
C. short term forecast accuracy
D. exponential smoothing
E. customer selection C. short term forecast accuracy
Use of simple linear regression analysis assumes that:
A. Variations around the line are random.
B. Deviations around the line are normally distributed.
C. Predictions are to be made only within the range of observed values of the predictor variable.
D. all of the above
E. none of the above D. all of the above
Given forecast errors of - 5, - 10, and +15, the MAD is:
A. 0
B. 10
C. 30
D. 175
E. none of these B. 10
Convert these errors into absolute value, then average.
Which of the following mechanisms for enhancing profitability is most likely to result from
improving short term forecast performance?
A. increased inventory
B. reduced flexibility
C. higher-quality products
D. greater customer satisfaction
E. greater seasonality D. greater customer satisfaction
,Which of the following changes would tend to shorten the time frame for short term forecasting?
A. bringing greater variety into the product mix
B. increasing the flexibility of the production system
C. ordering fewer weather-sensitive items
D. adding more special-purpose equipment
E. none of the above B. increasing the flexibility of the production system
Which of the following helps improve supply chain forecasting performance?
A. contracts that require supply chain members to formulate long term forecasts
B. penalties for supply chain members that adjust forecasts
C. sharing forecasts or demand data across the supply chain
D. increasing lead times for critical supply chain members
E. increasing the number of suppliers at critical junctures in the supply chain C. sharing
forecasts or demand data across the supply chain
Inaccuracies in forecasts along the supply chain lead to:
A. shortages or excesses of materials
B. reduced customer service
C. excess capacity
D. missed deliveries
E. all of the above E. all of the above
Which of the following is the most valuable piece of information the sales force can bring into
forecasting situations?
A. what customers are most likely to do in the future
B. what customers most want to do in the future
C. what customers' future plans are
D. whether customers are satisfied or dissatisfied with their performance in the past
E. what the salesperson's appropriate sales quota should be A. what customers are most likely to
do in the future
The goal of value analysis is to find ways of _______.
A. I. Reducing the cost of parts and materials
B. II. Improving the performance of the product or service
C. III. Incorporating multiple cultural values in global system design
D. Both I and III
E. Both I and II E. Both I and II
When considering re-use issues for a given product, an important factor to take into account is
that product's _______.
A. Ethical impact
B. Reliability
C. Durability
D. Design for assembly
E. None of the above E. None of the above
,Incorporating design for disassembly (DFD) principles in product design helps firms with
___________ design issues.
A. Legal
B. Social
C. Re-use
D. Reverse engineering
E. Re-engineering C. Re-use
Designing for recycling helps facilitate ______.
A. Reduced legal liability
B. Compliance with regulatory environments
C. Increased product reliability
D. Reduced standardization costs
E. None of the above B. Compliance with regulatory environments
One way to increase reliability is to:
A. improve component design
B. increase the number of service stations
C. increase mean repair time
D. increase the number of dependent components
E. none of the above A. improve component design
One way to increase reliability is to:
A. eliminate backup component
B. improve preventive maintenance procedures
C. increase mean repair time
D. increase the number of independent components
E. none of the above B. improve preventive maintenance procedures
Which of the following is not a reason for redesigning a product or service?
A. to reduce labor or material cost
B. to increase the level of employee satisfaction
C. to increase the level of customer satisfaction
D. to attract and increase customer demand
E. to increase quality B. to increase the level of employee satisfaction
A disadvantage of global teams for product design is that:
A. Customers may have different needs in different countries
B. The product designed may have increased marketability and utility
C. The diversity of an international team may be a detriment
D. Ease of face to face meetings is absent since members are located everywhere
E. Technology allows constant contact with team members D. Ease of face to face meetings is
absent since members are located everywhere
, Mobile phones have evolved from devices intended to place and receive phone calls into
handheld multimedia communications devices, but in the eyes of some customers these new
features make the phones less desirable. This is an example of _________.
A. robust design
B. creeping featurism
C. sustainable design
D. quality function deployment
E. component commonality B. creeping featurism
One step that isn't part of service blueprinting is:
A. Eliminate boundaries for the service and decide on the level of interaction needed
B. Identify and determine the sequence of customer and service actions and interactions
C. Develop time estimates for each phase of the process
D. Understand the time variability involved
E. Identify potential failure points and develop a plan to minimize them A. Eliminate
boundaries for the service and decide on the level of interaction needed
A Swiss manufacturing company that operates two manufacturing plants—one in the United
States and the other in India—shows the following results (all figures are in U.S. dollars).
Compute the multifactor productivity measure using all inputs. Which country has the higher
productivity?US IndiaSales 2500000 1800000Labor 450000 350000Raw material 170000
120000Capital equipment 360000 200000 India
Orion Tile & Marble Inc. (Anaheim, CA) supplies and installs ceramic tiles. The company tracks
its workers' output over the past several weeks, and the data are as follows. In which week was
labor productivity the highest?
Week Number of Workers Tiles Installed
1 5 120
2 4 4 112
3 4 3 88
4 3 2 69
5 2 2 44
6 5 5 115
7 2 2 54
A. Week 2
B. Week 6
C. Week 1
D. Week 7 Week 2
The fictional Taj Mahal Indian grocery store had sales of US$50,000 in August and US$62,000
in September. There are 10 full-time workers in the store, each of whom worked 40 hours a
week. In August, the store also employed four part-time workers, each of whom worked 15 hours
a week. In September, eight part-time workers were employed, each for 10 hours a week.
Assuming there are four weeks in each month, and sales dollars are the output measure, what
was the change in productivity from August to September?
Chapters 1 - 19, Complete Newest Version
Current information on _________ can have a significant impact on forecast accuracy:
A. prices
B. promotion
C. inventory
D. competition
E. all of the above E. all of the above
A managerial approach toward forecasting which seeks to actively influence demand is:
A. reactive
B. proactive
C. influential
D. protracted
E. retroactive B. proactive
Customer service levels can be improved by better:
A. mission statements
B. control charting
C. short term forecast accuracy
D. exponential smoothing
E. customer selection C. short term forecast accuracy
Use of simple linear regression analysis assumes that:
A. Variations around the line are random.
B. Deviations around the line are normally distributed.
C. Predictions are to be made only within the range of observed values of the predictor variable.
D. all of the above
E. none of the above D. all of the above
Given forecast errors of - 5, - 10, and +15, the MAD is:
A. 0
B. 10
C. 30
D. 175
E. none of these B. 10
Convert these errors into absolute value, then average.
Which of the following mechanisms for enhancing profitability is most likely to result from
improving short term forecast performance?
A. increased inventory
B. reduced flexibility
C. higher-quality products
D. greater customer satisfaction
E. greater seasonality D. greater customer satisfaction
,Which of the following changes would tend to shorten the time frame for short term forecasting?
A. bringing greater variety into the product mix
B. increasing the flexibility of the production system
C. ordering fewer weather-sensitive items
D. adding more special-purpose equipment
E. none of the above B. increasing the flexibility of the production system
Which of the following helps improve supply chain forecasting performance?
A. contracts that require supply chain members to formulate long term forecasts
B. penalties for supply chain members that adjust forecasts
C. sharing forecasts or demand data across the supply chain
D. increasing lead times for critical supply chain members
E. increasing the number of suppliers at critical junctures in the supply chain C. sharing
forecasts or demand data across the supply chain
Inaccuracies in forecasts along the supply chain lead to:
A. shortages or excesses of materials
B. reduced customer service
C. excess capacity
D. missed deliveries
E. all of the above E. all of the above
Which of the following is the most valuable piece of information the sales force can bring into
forecasting situations?
A. what customers are most likely to do in the future
B. what customers most want to do in the future
C. what customers' future plans are
D. whether customers are satisfied or dissatisfied with their performance in the past
E. what the salesperson's appropriate sales quota should be A. what customers are most likely to
do in the future
The goal of value analysis is to find ways of _______.
A. I. Reducing the cost of parts and materials
B. II. Improving the performance of the product or service
C. III. Incorporating multiple cultural values in global system design
D. Both I and III
E. Both I and II E. Both I and II
When considering re-use issues for a given product, an important factor to take into account is
that product's _______.
A. Ethical impact
B. Reliability
C. Durability
D. Design for assembly
E. None of the above E. None of the above
,Incorporating design for disassembly (DFD) principles in product design helps firms with
___________ design issues.
A. Legal
B. Social
C. Re-use
D. Reverse engineering
E. Re-engineering C. Re-use
Designing for recycling helps facilitate ______.
A. Reduced legal liability
B. Compliance with regulatory environments
C. Increased product reliability
D. Reduced standardization costs
E. None of the above B. Compliance with regulatory environments
One way to increase reliability is to:
A. improve component design
B. increase the number of service stations
C. increase mean repair time
D. increase the number of dependent components
E. none of the above A. improve component design
One way to increase reliability is to:
A. eliminate backup component
B. improve preventive maintenance procedures
C. increase mean repair time
D. increase the number of independent components
E. none of the above B. improve preventive maintenance procedures
Which of the following is not a reason for redesigning a product or service?
A. to reduce labor or material cost
B. to increase the level of employee satisfaction
C. to increase the level of customer satisfaction
D. to attract and increase customer demand
E. to increase quality B. to increase the level of employee satisfaction
A disadvantage of global teams for product design is that:
A. Customers may have different needs in different countries
B. The product designed may have increased marketability and utility
C. The diversity of an international team may be a detriment
D. Ease of face to face meetings is absent since members are located everywhere
E. Technology allows constant contact with team members D. Ease of face to face meetings is
absent since members are located everywhere
, Mobile phones have evolved from devices intended to place and receive phone calls into
handheld multimedia communications devices, but in the eyes of some customers these new
features make the phones less desirable. This is an example of _________.
A. robust design
B. creeping featurism
C. sustainable design
D. quality function deployment
E. component commonality B. creeping featurism
One step that isn't part of service blueprinting is:
A. Eliminate boundaries for the service and decide on the level of interaction needed
B. Identify and determine the sequence of customer and service actions and interactions
C. Develop time estimates for each phase of the process
D. Understand the time variability involved
E. Identify potential failure points and develop a plan to minimize them A. Eliminate
boundaries for the service and decide on the level of interaction needed
A Swiss manufacturing company that operates two manufacturing plants—one in the United
States and the other in India—shows the following results (all figures are in U.S. dollars).
Compute the multifactor productivity measure using all inputs. Which country has the higher
productivity?US IndiaSales 2500000 1800000Labor 450000 350000Raw material 170000
120000Capital equipment 360000 200000 India
Orion Tile & Marble Inc. (Anaheim, CA) supplies and installs ceramic tiles. The company tracks
its workers' output over the past several weeks, and the data are as follows. In which week was
labor productivity the highest?
Week Number of Workers Tiles Installed
1 5 120
2 4 4 112
3 4 3 88
4 3 2 69
5 2 2 44
6 5 5 115
7 2 2 54
A. Week 2
B. Week 6
C. Week 1
D. Week 7 Week 2
The fictional Taj Mahal Indian grocery store had sales of US$50,000 in August and US$62,000
in September. There are 10 full-time workers in the store, each of whom worked 40 hours a
week. In August, the store also employed four part-time workers, each of whom worked 15 hours
a week. In September, eight part-time workers were employed, each for 10 hours a week.
Assuming there are four weeks in each month, and sales dollars are the output measure, what
was the change in productivity from August to September?
