Test Bank for Operations and Supply Chain Management, 15th Edition by Jay Heizer | Supplements Included

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Operations and Supply Chain Management, 15e (Heizer / Render / Munson)
Module A - Decision-Making Tools

Section 1 The Decision Process in Operations
1) Analytic decision-making is based on logic and requires only limited data and possible
alternatives.
Answer: FALSE
Diff: 2
AACSB: Application of knowledge

2) The first step in the analytic decision process is to develop specific and measurable objectives.
Answer: FALSE
Diff: 2
AACSB: Application of knowledge

3) The last step in the analytic decision process is to implement and evaluate the decision and
then set a timetable for completion.
Answer: TRUE
Diff: 1
AACSB: Application of knowledge

4) The objective in the analytic decision process is to always minimize the total cost.
Answer: FALSE
Diff: 2
AACSB: Application of knowledge

5) Which of the following is NOT considered a step in the decision-making process?
A) Clearly define the problem and the factors that influence it.
B) Choose the solution with the largest value.
C) Develop a model to assess the relationship between objectives and variables.
D) Evaluate each alternative solution based on its merits and drawbacks.
E) Select the best alternative.
Answer: B
Diff: 2
AACSB: Application of knowledge

6) The first step, and a key element, in the decision-making process is to:
A) consult a specialist.
B) clearly define the problem.
C) develop objectives.
D) monitor the results.
E) select the best alternative.
Answer: B
Diff: 1
AACSB: Application of knowledge
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,7) The last step of the decision-making process is to:
A) develop a model.
B) evaluate each alternative.
C) select the best alternative.
D) implement the decision.
E) check the decision with senior management.
Answer: D
Diff: 2
AACSB: Application of knowledge

8) The management of Royal Roman, a sporting goods brand, uses analytical decision tools to
make important decisions about operations and supply chain. For which of the following
decisions would analytical decision tools be appropriate?
A) capacity planning based on the effectiveness of a marketing campaign
B) location planning
C) supply disruption planning for inclement weather
D) deciding to build a new plant to produce a popular sneaker line, or not to build a plant
E) All of the above are candidates for the use of analytical decision tools.
Answer: E
Diff: 2
AACSB: Application of knowledge

9) The first step, and a key element, in the decision-making process is to ________.
Answer: clearly define the problem
Diff: 2
AACSB: Application of knowledge

10) The last step of the decision-making process is to ________.
Answer: implement and evaluate the decision
Diff: 2
AACSB: Application of knowledge

11) Identify, in order, the six steps of analytical decision-making.
Answer:
1. Clearly define the problem and factors that influence it.
2. Develop specific and measurable objectives.
3. Develop a model—that is, a relationship between objectives and variables (which are
measurable quantities).
4. Evaluate each alternative solution based on its merits and drawbacks.
5. Select the best alternative.
6. Implement the decision and set a timetable for completion.
Diff: 3
AACSB: Application of knowledge




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,Section 2 Fundamentals of Decision Making
1) A state of nature is an occurrence or a situation over which is always in the decision maker's
control.
Answer: FALSE
Diff: 2
Objective: LO A.1 Create a simple decision tree
AACSB: Application of knowledge

2) In a decision tree, a circle symbol represents a state of nature node.
Answer: TRUE
Diff: 2
Objective: LO A.1 Create a simple decision tree
AACSB: Application of knowledge

3) A square node on a decision tree infers that:
A) the node splits into various states of nature, of which only one will occur.
B) there are several alternatives available.
C) the manager must choose an alternative.
D) both B and C.
E) A, B, and C.
Answer: D
Diff: 2
Objective: LO A.1 Create a simple decision tree
AACSB: Application of knowledge




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, 4) The following decision tree has how many state-of-nature nodes?




A) 0
B) 1
C) 2
D) 3
E) 4
Answer: D
Diff: 2
Objective: LO A.1 Create a simple decision tree
AACSB: Application of knowledge

5) In terms of decision theory, an occurrence or situation over which the decision maker has no
control is called a(n):
A) decision under uncertainty.
B) decision tree.
C) state of nature.
D) alternative.
E) EMV.
Answer: C
Diff: 2
Objective: LO A.1 Create a simple decision tree
AACSB: Application of knowledge




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