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Management Quiz Part 5 – Multiple Choice Questions (MCQs) | Management Notes

Which of the following is true regarding services scheduling?

Table of Contents

A. The critical ratio sequencing rule is widely used for fairness to customers.
B. The emphasis is on staffing levels, not materials.
C. Reservations and appointments are often used to manipulate the supply of services.
D. Labor use can be intensive, and labor demand is usually stable.
E. All of the above are true.

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The Correct Answer for the given question is Option B. The emphasis is on staffing levels, not materials.

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The process of strengthening a behavior by withdrawing something negative is called _____. 

A. positive reinforcement.
B. negative reinforcement.
C. extinction.
D. intrinsic motivation.
E. punishment.

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The Correct Answer for the given question is Option B. negative reinforcement.

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Jit makes quality cheaper because: 

A. the cost of low quality can be hidden as inventory cost.
B. JIT adds more buffers to the system.
C. JIT prevents long runs of defects.
D. B and C
E. A, B and C

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The Correct Answer for the given question is Option C. JIT prevents long runs of defects.

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If the goals of jit partnerships are met, which of the following is a result? 

A. For incoming goods, receiving activity and inspection are outsourced.
B. In-transit inventory falls as suppliers are located closer to facilities.
C. Suppliers maintain a variety of customers to reduce risk.
D. In-plant inventory replaces in-transit inventory.
E. All of the above are consequences of meeting the JIT partnership goals.

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The Correct Answer for the given question is Option B. In-transit inventory falls as suppliers are located closer to facilities.

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A disadvantage of the few suppliers sourcing strategy is

A. the risk of not being ready for technological change.
B. the lack of cost savings for customers and suppliers.
C. possible violations of the Sherman Antitrust Act.
D. the high cost of changing partners.
E. the suppliers are less likely to understand the broad objectives of the procuring firm and the end customer.

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The Correct Answer for the given question is Option D. the high cost of changing partners.

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 Which of the following industries is most likely to have low equipment utilization? 

A. auto manufacturing
B. commercial baking
C. television manufacturing
D. steel manufacturing
E. restaurants

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

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A manager must know enough about the it architecture and it infrastructure so that he or she can: 

A. Select the correct wireless provider.
B. Make realistic use of IT and know what to expect from IT.
C. Choose the appropriate IT infrastructure components.
D. Limit future business options.
E. Ensure a rigid IT structure.

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The Correct Answer for the given question is Option B. Make realistic use of IT and know what to expect from IT.

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Which of the determinants of service quality involves performing the service right the first time? 

A. access
B. courtesy
C. credibility
D. reliability
E. responsiveness

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The Correct Answer for the given question is Option D. reliability

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Which of the following activities takes place most immediately once the mission has been developed?

A. The firm develops alternative or back-up missions in case the original mission fails.
B. The functional areas develop their functional area strategies.
C. The functional areas develop their supporting missions.
D. The ten OM decision areas are prioritized.
E. Operational tactics are developed

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The Correct Answer for the given question is Option C. The functional areas develop their supporting missions.

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Among the advantages of cycle counting is that it 

A. makes the annual physical inventory more acceptable to management.
B. does not require the detailed records necessary when annual physical inventory is used.
C. does not require highly trained people.
D. allows more rapid identification of errors and consequent remedial action than is possible with annual physical inventory.
E. does not need to be performed for less expensive items.

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The Correct Answer for the given question is Option D. allows more rapid identification of errors and consequent remedial action than is possible with annual physical inventory.

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Outsourcing strategies can offer such advantages as 

A. increasing a company’s ability to strongly differentiate its product and be successful with either a broad differentiation strategy or a focused differentiation strategy.
B. obtaining higher quality and/or cheaper components or services, improving a company’s ability to innovate, and reducing its risk exposure.
C. speeding a company’s entry into foreign markets.
D. permitting greater use of strategic alliances and collaborative partnerships.
E. giving a firm more direct control over the costs of value chain activities.

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The Correct Answer for the given question is Option B. obtaining higher quality and/or cheaper components or services, improving a company’s ability to innovate, and reducing its risk exposure.

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Competitive dynamics refers to the 

A. circumstances in which competitors are aware of the degree of their mutual interdependence resulting from market commonality and resource similarity.
B. set of competitive actions and competitive responses the firm takes to build or defend its competitive advantages and to improve its market position.
C. total set of actions and responses taken by all firms competing within a market.
D. ongoing set of competitive actions and competitive responses between competitors as they maneuver for advantageous market position.

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The Correct Answer for the given question is Option C. total set of actions and responses taken by all firms competing within a market.

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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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The most difficult part of benchmarking is 

A. the decision of whether to do it at all.
B. how to gain access to information regarding rivals’ practices and costs.
C. when to initiate the process.
D. what information to utilize in the analysis process.
E. when to stop the process and move forward with strategy.

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The Correct Answer for the given question is Option B. how to gain access to information regarding rivals’ practices and costs.

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Which of the following is not a factor affecting sustainability of a competitive advantage? 

A. the availability of substitutes for a firm’s core competence
B. the rate at which obsolescence of the core competence occurs because of environmental changes
C. the imitability of a core competence
D. the length of time the core competence has existed

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The Correct Answer for the given question is Option D. the length of time the core competence has existed

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Which of the following phrases best describes product focus? 

A. low volume, high variety
B. Finished goods are usually made to order.
C. Processes are designed to perform a wide variety of activities.
D. high fixed costs, low variable costs
E. high inventory

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The Correct Answer for the given question is Option D. high fixed costs, low variable costs

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 Leaders want ________ who are productive, reliable, honest, cooperative, proactive, and flexible. 

A. employers
B. clients
C. superiors
D. peers
E. followers

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

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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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A prerequisite condition for job rotation is the ________.

A. presence of high level of autonomy among workers
B. presence of high need for affiliation among workers
C. presence of employees with similar skill sets and requirements
D. presence of alternative work arrangements for employees to avail
E. presence of employee involvement programs

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The Correct Answer for the given question is Option C. presence of employees with similar skill sets and requirements

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 Which of the following would not be an operations function in a commercial bank? 

A. auditing
B. teller scheduling
C. maintenance
D. collection
E. check clearing

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

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Which of the following is not one of the techniques for building employee empowerment?

A. Eliminate formal organization structures such as teams and quality circles.
B. Build high-morale organizations.
C. Develop open, supportive supervisors.
D. Build communication networks that include employees.

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The Correct Answer for the given question is Option A. Eliminate formal organization structures such as teams and quality circles.

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 Which of the following statements regarding mrp in services is true? 

A. MRP is for manufacturing only, and it is not applicable to services.
B. MRP can be used in services, but only in those that offer very limited customization.
C. MRP only works in services for demand that is independent.
D. Services such as restaurant meals illustrate dependent demand, and they require product structure trees, bills-of-material, and scheduling.
E. None of the above is true.

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The Correct Answer for the given question is Option D. Services such as restaurant meals illustrate dependent demand, and they require product structure trees, bills-of-material, and scheduling.

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 Operations management is applicable 

A. mostly to the service sector.
B. to services exclusively.
C. mostly to the manufacturing sector.
D. to all firms, whether manufacturing or service.
E. to the manufacturing sector exclusively.

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The Correct Answer for the given question is Option D. to all firms, whether manufacturing or service.

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Bryan barry suggests that to keep a strategic plan on track, organizations should ____. 

A. engage people, keep it simple, stay focused, and keep moving
B. engage people, keep people happy, provide fun activities, and provide good benefits
C. provide fun activities, provide good benefits, and keep it simple
D. engage people, keep it simple, stay focused, and offer a good benefit package
E. aggressively compete, cut costs, focus on customer service, and engage people

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The Correct Answer for the given question is Option A. engage people, keep it simple, stay focused, and keep moving

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Which of the following statements regarding the gross material requirements plan is true? 

A. It shows total demand for an item.
B. It shows when an item must be ordered from a supplier or when production must be started.
C. It combines a master production schedule with the time-phased schedule.
D. It requires several inputs, including an accurate bill of material.
E. All of the above are true.

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

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Which of the following is not a benefit of centralized purchasing?

A. leverage purchase volume for better pricing
B. develop specialized staff expertise
C. reduce the duplication of tasks
D. reduce lead times
E. promote standardization

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The Correct Answer for the given question is Option D. reduce lead times

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Which productivity variable has the greatest potential to increase productivity? 

A. labor
B. globalization
C. management
D. capital
E. energy

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The Correct Answer for the given question is Option C. management

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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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The number of kanbans should be equal to: 

A. one
B. the ratio of (demand during lead time + safety stock) to container size
C. one-half of the EOQ
D. one full day’s production divided by the EOQ
E. the ratio of demand during lead time to (container size + safety stock)

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The Correct Answer for the given question is Option B. the ratio of (demand during lead time + safety stock) to container size

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Which of the following is generally found in most lean environments 

A. a push or pull system, depending upon the rate of demand
B. a push system for high margin items and a pull system for low margin items
C. a push system for purchased parts and a pull system for manufactured parts
D. push systems
E. pull systems

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The Correct Answer for the given question is Option E. pull systems

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 ______ power derives from one’s personal attraction. 

A. legitimate
B. referent
C. reward
D. Coercive
E. personalized

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The Correct Answer for the given question is Option B. referent

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From a strategy-implementing/strategy-executing perspective, operating budget allocations should: 

A. primarily be based on creating more core competencies than rivals have.
B. be strategy-driven and based primarily on how much each organizational unit needs to carry out its piece of the strategic plan efficiently and effectively.
C. be based on the resources needed to lower the costs of performing each value chain activity.
D. provide each operating unit with sufficient funds to undertake benchmarking, adopt best practices, implement Six Sigma and/or TQM, and do cutting-edge business process reengineering.
E. strongly support the company’s established policies and procedures regarding how things are to be done.

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The Correct Answer for the given question is Option B. be strategy-driven and based primarily on how much each organizational unit needs to carry out its piece of the strategic plan efficiently and effectively.

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How does availability of complements act as a value driver? 

A. Complements add value to a product by offering an inferior substitute to it.
B. Complements add value to a product by competing with it.
C. Complements add value to a product when they imitate it.
D. Complements add value to a product when they are consumed in tandem with it.

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The Correct Answer for the given question is Option D. Complements add value to a product when they are consumed in tandem with it.

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Which of the following tasks within an airline company are related to operations? 

A. crew scheduling
B. international monetary exchange
C. sales
D. advertising
E. accounts payable

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The Correct Answer for the given question is Option A. crew scheduling

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All of the following decisions fall within the scope of operations management except for 

A. creating the company income statement.
B. design of goods and services.
C. location strategy.
D. managing quality.
E. human resources and job design

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The Correct Answer for the given question is Option A. creating the company income statement.

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Which of the following represents a reason for globalizing operations 

A. to improve the supply chain
B. to improve operations
C. to expand a product’s life cycle
D. to attract and retain global talent
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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If suppliers are unreliable or too costly, which of these strategies may be appropriate? 

A. Horizontal integration
B. Backward integration
C. Market penetration
D. Forward integration
E. Concentric diversification

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The Correct Answer for the given question is Option B. Backward integration

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The list of 5ss, although it looks like a housekeeping directive, supports lean production by: 

A. identifying non-value items and removing them, in the “sort/segregate” category.
B. reducing inventory, in the “standardize” category.
C. increasing variability through standardized procedures, in the “standardize” category.
D. eliminating wasted motion through ergonomic studies, in the “support” category.
E. building good safety practices, in the “shine/sweep” category.

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The Correct Answer for the given question is Option A. identifying non-value items and removing them, in the “sort/segregate” category.

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 Which of the following statements is true about the kanban system? 

A. The quantities in the containers are usually large to reduce setup costs.
B. It is associated with a push system.
C. It is useful to smooth operations when numerous quality problems occur.
D. The supplier workstation signals the customer workstation as soon as a batch is completed.
E. The customer workstation signals to the supplier workstation when production is needed.

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The Correct Answer for the given question is Option E. The customer workstation signals to the supplier workstation when production is needed.

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Which of the following typically is not considered a staff department 

A. Manufacturing
B. Strategic Planning
C. Accounting
D. Human Resources
E. Research and development

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

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Management Quiz Part 4 – Multiple Choice Questions (MCQs) | Management Notes

Smirti

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