Which of the following is not an attribute of lean operations 

A. eliminating almost all inventory through just-in-time techniques
B. minimizing space requirements by reducing the distance a part travels
C. pushing responsibility to the highest level possible through centralized decision making
D. educating suppliers to accept responsibility for helping meet customer needs
E. building worker flexibility through cross-training and reducing job classifications

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The Correct Answer for the given question is Option C. pushing responsibility to the highest level possible through centralized decision making

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A job shop is an example of a(n): 

A. repetitive process.
B. continuous process.
C. line process.
D. intermittent process.
E. specialized process

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The Correct Answer for the given question is Option D. intermittent process.

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Which of the following influences layout design? 

A. inventory requirements
B. capacity needs
C. personnel levels
D. technology
E. All of the above influence layout decisions

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The Correct Answer for the given question is Option E. All of the above influence layout decisions

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Which of the following phrases best describes process focus? 

A. low volume, high variety
B. Finished goods are usually made to a forecast and stored.
C. Operators are less broadly skilled.
D. high fixed costs, low variable costs
E. low inventory

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The Correct Answer for the given question is Option A. low volume, high variety

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Productivity measurement is complicated by:

A. the competition’s output.
B. the fact that precise units of measure are often unavailable.
C. stable quality.
D. the workforce size.
E. the type of equipment used.

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The Correct Answer for the given question is Option B. the fact that precise units of measure are often unavailable.

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Based on his 14 points, deming is a strong proponent of 

A. inspection at the end of the production process.
B. an increase in numerical quotas to boost productivity.
C. looking for the cheapest supplier.
D. training and knowledge.
E. all of the above.

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The Correct Answer for the given question is Option D. training and knowledge.

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When quantity discounts are allowed, the cost-minimizing order quantity: 

A. is always an EOQ quantity.
B. minimizes the sum of holding and ordering costs.
C. minimizes the unit purchase price.
D. may be a quantity below that at which one qualifies for that price.
E. minimizes the sum of holding, ordering, and product costs.

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The Correct Answer for the given question is Option E. minimizes the sum of holding, ordering, and product costs.

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The proper quantity of safety stock is typically determined by 

A. using a single-period model.
B. carrying sufficient safety stock so as to eliminate all stockouts.
C. multiplying the EOQ by the desired service level.
D. setting the level of safety stock so that a given stockout risk is not exceeded.
E. minimizing total costs.

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The Correct Answer for the given question is Option D. setting the level of safety stock so that a given stockout risk is not exceeded.

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 A firm’s strategic choices and leadership approaches need to 

A. steer clear of cultural and socioeconomic influences.
B. be rigid and concrete to be effective.
C. adapt and change to retain their relevance.
D. be independent of each other.

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The Correct Answer for the given question is Option C. adapt and change to retain their relevance.

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If demand is not uniform and constant, then stockout risks can be controlled by: 

A. increasing the EOQ.
B. spreading annual demand over more frequent, but smaller, orders.
C. raising the selling price to reduce demand.
D. adding safety stock.
E. reducing the reorder point.

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The Correct Answer for the given question is Option D. adding safety stock.

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Based on his 14 points, deming is a strong proponent of: 

A. inspection at the end of the production process.
B. an increase in numerical quotas to boost productivity.
C. looking for the cheapest supplier.
D. training and knowledge.
E. all of the above.

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The Correct Answer for the given question is Option D. training and knowledge.

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Lenders probably have the most interest in which one of the following sets of ratios? 

A. Return on assets and profit margin.
B. Long-term debt and times interest earned.
C. Price-earnings and debt-equity.
D. Market-to-book and times interest earned.
E. Return on equity and price-earnings.

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The Correct Answer for the given question is Option B. Long-term debt and times interest earned.

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The proper quantity of safety stock is typically determined by: 

A. using a single-period model.
B. carrying sufficient safety stock so as to eliminate all stockouts.
C. multiplying the EOQ by the desired service level.
D. setting the level of safety stock so that a given stockout risk is not exceeded.
E. minimizing total costs.

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The Correct Answer for the given question is Option D. setting the level of safety stock so that a given stockout risk is not exceeded.

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Which of the following is not an input to s&op? 

A. capacity decisions
B. supply-chain support
C. workforce
D. inventory on hand
E. master production schedule

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The Correct Answer for the given question is Option E. master production schedule

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All of the following are interpersonal influence tactics, except: 

A. rely on the rule of demand
B. Develop allies
C. Ask for what you want
D. help people like you
E. make use of higher authority

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The Correct Answer for the given question is Option A. rely on the rule of demand

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Low level coding means that 

A. a final item has only a few levels in the BOM structure.
B. the code being used is the code for the lowest level in the BOM structure.
C. a component item is coded at the lowest level at which it appears in the BOM structure.
D. the top level of the BOM is below level zero and that BOMs are not organized around the finished product.
E. the lowest-paid staff member in the production department performs the coding.

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The Correct Answer for the given question is Option C. a component item is coded at the lowest level at which it appears in the BOM structure.

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From the standpoint of promoting successful strategy execution 

A. be completely free of such elements as tension, pressure, anxiety, job insecurity, and tight deadlines—a no-pressure/no-adverse-consequences work environment is essential.
B. emphasize only positive types of rewards.
C. accentuate positive rewards but also carry the risk of punishment for poor performance.
D. not deny rewards to employees who put forth good effort and try hard.
E. reduce job insecurity and give employees an incentive to stay busy and work hard.

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The Correct Answer for the given question is Option C. accentuate positive rewards but also carry the risk of punishment for poor performance

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Outsourcing is simply an extension of the long-standing practice of: 

A. subcontracting.
B. importing.
C. exporting.
D. postponement.
E. e-procurement

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The Correct Answer for the given question is Option A. subcontracting.

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Which of the following statements about the basic eoq model is true? 

A. If the ordering cost were to double, the EOQ would rise.
B. If annual demand were to double, the EOQ would increase.
C. If the carrying cost were to increase, the EOQ would fall.
D. If annual demand were to double, the number of orders per year would increase.
E. All of the above statements are true.

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The Correct Answer for the given question is Option E. All of the above statements are true.

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Which of the following best describes experience differentiation? 

A. immerses consumers in the delivery of a service
B. uses people’s five senses to enhance the service
C. complements physical elements with visual and sound elements
D. consumers may become active participants in the product or service
E. All of the above are elements of experience differentiation.

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The Correct Answer for the given question is Option E. All of the above are elements of experience differentiation.

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According to i/o theorists, which of the following contributes least to firm’s performance? 

A. Economies of scale
B. Barriers to market entry
C. Product differentiation
D. Internal resources
E. Level of competitiveness

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The Correct Answer for the given question is Option D. Internal resources

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Advantages of outsourcing do not include 

A. cost savings.
B. gaining outside expertise.
C. maintaining a focus on core competencies.
D. accessing outside technology.
E. potential creation of future competition.

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The Correct Answer for the given question is Option E. potential creation of future competition.

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What does the poq interval equal? 

A. the number of periods of average demand covered by the safety stock
B. the same number of periods that are on the “not to be rescheduled” side of the time fence
C. EOQ / maximum gross requirement
D. the number of periods until the incoming projected on hand runs out
E. EOQ / average demand per period

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The Correct Answer for the given question is Option E. EOQ / average demand per period

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“making it right the first time” is: 

A. an unrealistic definition of quality.
B. a user-based definition of quality.
C. a manufacturing-based definition of quality.
D. a product-based definition of quality.
E. the definition of quality proposed by the American Society for Quality.

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The Correct Answer for the given question is Option C. a manufacturing-based definition of quality.

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Charismatic leadership is now considered part of ______ leadership. 

A. transactional
B. shared
C. laissez-faire
D. servant
E. transformational

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The Correct Answer for the given question is Option E. transformational

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At hard rock café, tasks that reflect operations or operations management include: 

A. designing efficient layouts.
B. providing meals.
C. receiving ingredients.
D. preparing effective employee schedules.
E. all of the above.

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The Correct Answer for the given question is Option E. all of the above.

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A successful tqm program incorporates all except which of the following? 

A. continuous improvement
B. employee involvement
C. benchmarking
D. centralized decision-making authority
E. JIT

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The Correct Answer for the given question is Option D. centralized decision-making authority

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 A successful tqm program incorporates all except which of the following? 

A. continuous improvement
B. employee involvement
C. benchmarking
D. centralized decision-making authority
E. JIT

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The Correct Answer for the given question is Option D. centralized decision-making authority

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Which one of the following is not a layout tactic in a jit environment?

A. work cells for families of products
B. fixed equipment
C. minimizing distance
D. little space for inventory
E. poka-yoke devices

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The Correct Answer for the given question is Option B. fixed equipment

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 A disadvantage of the fixed-period inventory system is that: 

A. it involves higher ordering costs than the fixed quantity inventory system.
B. additional inventory records are required.
C. the average inventory level is decreased.
D. since there is no count of inventory during the review period, a stockout is possible.
E. orders usually are for larger quantities.

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The Correct Answer for the given question is Option D. since there is no count of inventory during the review period, a stockout is possible.

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According to house’s revised path-goal theory, a leader’s style should vary depending on 

A. Positional power
B. Environmental factors
C. Situational control
D. Organizational readiness
E. Leader-member relations

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The Correct Answer for the given question is Option B. Environmental factors

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Three commonly used productivity variables are 

A. quality, external elements, and precise units of measure.
B. labor, capital, and management.
C. technology, raw materials, and labor.
D. education, diet, and social overhead.
E. quality, efficiency, and low cost.

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The Correct Answer for the given question is Option B. labor, capital, and management

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Employees are likely to see an adaptive change as __________. 

A. highly threatening
B. moderately threatening
C. least threatening
D. significantly complex, costly, and uncertain
E. totally unacceptable

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The Correct Answer for the given question is Option C. least threatening

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In level scheduling, what is kept uniform from month to month?

A. product mix
B. inventory levels
C. production/workforce levels
D. demand levels
E. sub-contracting levels

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The Correct Answer for the given question is Option C. production/workforce levels

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Today, companies emphasize _____ with production. 

A. efficiency
B. increased synergy
C. diversity
D. training
E. employee happiness

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The Correct Answer for the given question is Option A. efficiency

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The fundamental purpose of an organization’s mission statement is to 

A. create a good human relations climate in the organization.
B. define the organization’s purpose in society.
C. define the operational structure of the organization.
D. generate good public relations for the organization.
E. define the functional areas required by the organization.

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The Correct Answer for the given question is Option B. define the organization’s purpose in society.

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Which of the following statements regarding a pull system is true

A. Large lots are pulled from upstream stations.
B. Work is pulled to the downstream stations before it is actually needed.
C. Manufacturing cycle time is increased.
D. Problems become more obvious.
E. None of the above is true of a pull system.

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The Correct Answer for the given question is Option D. Problems become more obvious.

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When sample measurements falls inside the control limits, it means that: 

A. each unit manufactured is good enough to sell.
B. the process limits cannot be determined statistically.
C. the process output exceeds the requirements.
D. if there is no other pattern in the samples, the process is in control.
E. the process output does not fulfill the requirements.

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The Correct Answer for the given question is Option D. if there is no other pattern in the samples, the process is in control.

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How can a reduction of in-transit inventory be encouraged? 

A. supplier location near plants
B. high setup costs
C. low carrying costs
D. use of trains, not trucks
E. low-cost, global suppliers

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The Correct Answer for the given question is Option A. supplier location near plants

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Local communities are stakeholders of organizations because communities _____. 

A. rely on the products the companies produce
B. rely on the tax base from companies, and their employee payrolls, to thrive
C. wish to join forces with organizations to create strategic alliances
D. need the publicity of national organizations
E. enjoy the changes that progress tends to bring

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The Correct Answer for the given question is Option B. rely on the tax base from companies, and their employee payrolls, to thrive

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Management Quiz Part 1 – Multiple Choice Questions (MCQs) | Management Notes