This function is responsible for supplying or producing products and services to the business.

a. Purchasing function
b. Marketing function
c. Sales function
d. Operations function
2. Which part of the operations decisions framework includes the euipment and technology used to manufacture
products!
a. "uality b. #apacity c. $nventory d. Process
%. Which of these is &OT a method to enlarge capacity!
a. Subcontracting
b. '(tra shifts
c. )enting space
d. Standardi*ation
+. This operations ob,ective deals with the time needed to introduce new products.
a. #ost b. "uality c. -elivery d. .le(ibility
/. Which of these is the best way to achieve lower costs!
a. 0cuire latest technologies
b. $nnovate products and services
c. Manage resources
d. .ocus on customer reuirements
1. Toyota has manage to survive in these troubled economic times in 0sia because of their commitment on being
responsive to their customers2 needs. What type of operations theme is described in this scenario!
a. Supply #hain Management
b. 3ean Operations
c. Operations with Other .unctions
d. #ustomer4-irected Operations
5. This type of customer4introduced variability needs the willingness of customer to perform appropriate actions.
a. #apability b. )euest c. 0rrival d. 'ffort
6. .or a ta(icab ride7 which of the following is the implicit service!
a. The feel of the ride
b. Transporting from one place to another
c. The cab2s interior smell
d. Passenger2s security
8. This 3ean System implementation approach removes the inventory needed to cover long lead times and variances.
a. 9alance fabrication rates with final assembly production rates
b. Work backward from final assembly
c. :ain the cooperation of the workforce
d. '(tend lean production to the suppliers
;<. This hardware technology integrates individual items of automation to form an automated manufacturing
system.
a. .le(ible Materials System
b. 0utomated Material =andling
c. 0utomated :uided >ehicle
d. .le(ible Manufacturing #ell
;;. This system automates a business process by providing an organi*ed structure to support the process.
a. Process #ontrol Systems
b. Transaction Operating Systems
c. Office 0utomation Systems
d. Workflow Management Systems
;2. $t is defined as any operation that does not add value during the production process.
a. 3ayoff b. #onsignment c. =oard d. Waste
;%. Which of these refers to employees2 courtesy and their ability to convey trust and confidence!
a. Tangibles b. 'mpathy c. Sympathy d. 0ssurance
;+. $t is the function that designs and manages the physical transportation of materials.
a. .inancing b. Purchasing c. Operations d. 3ogistics
;/. The manufacturing company 09# decides to buy the wholesale firm ?@A and use the firm to e(clusively
distribute its product. Which integration method did company 09# use!
a. 9ackward integration
b. =ori*ontal integration
c. >ertical integration
d. .orward integration
;1. Which of these does &OT affect the facility strategy!
a. 3ikely competitors2 behavior
b. 9usiness strategy
c. $nternational considerations
d. #ustomi*ation
;5. This supply modification option involves the use of other firms to increase or decrease supply.
a. Bsing temporary labor
b. =iring and layoff of employees
c. Making cooperative arrangement
d. Subcontracting
;6. Which type of inventory has dependent demand!
a. .inished goods
b. )etail goods
c. Service industry
d. )aw materials
;8. Which type of system monitors stock position after each transaction!
a. Periodic evaluation system
b. 'conomic order uantity
c. Periodic review system
d. #ontinuous review system
2<. Which type of planning was formulated for large product families on an aggregate basis!
a. Material reuirements planning
b. 'conomic order system
c. Cust in time systems
d. Sales and operations planning
2;. Which function of material reuirements planning involves ordering the materials with the correct due date!
a. Schedule b. #apacity c. $nventory d. Priorities
22. $n material reuirements planning7 it is
impossible to provide suppliers with reports of future
orders. The function of a purchasing manager is to
predict product demand.
a. Statement ; and Statement 2 are both correct.
b. Statement ; is correct while Statement 2 is
incorrect.
c. Statement ; is incorrect while Statement 2 is
correct.
d. Statement ; and Statement 2 are both
incorrect.
2%. Which of these is &OT an e(ample of a material reuirements planning system data!
a. Shop routings
b. #onsumer strategy
c. Shop4floor status
d. #osts
2+. The outputs in this type of operation include transportation from one location to another.
a. 0irline b. )estaurant c. =otel d. Bniversity
2/. $n this new product view7 technology is the primary determinant of the products that the firm should make.
a. Technology push
b. Market pull
c. $ntrafunctional
d. $nterfunctional
21. What department is responsible for market si*e7 distribution channels7 new product introduction7 and pricing!
a. Marketing b. .inance c. 0ccounting d. Production
25. This phase in the product development concept is concerned with idea generation and evaluation of alternative
ideas for the new product.
a. #oncept development
b. Product design
c. Pilot production
d. #ommerciali*ation
26. This type of product flow is also referred to as process industries.
a. #ontinuous
Process
b. 0ssembly
3ines
c. 9atch .low
d. Cob Shop
28. This form of mass customi*ation is used to defer a portion of the production until the point of delivery.
a. Postponement of options
b. .ast changeover
c. Modular Production
d. Made4to4order
%<. Which of these is &OT a characteristic of the made4to4order process!
a. 9alance inventory
b. #ustomer specified
c. =igh variety
d. '(pensive
%;. Which of these does &OT describe manufacturing businesses!
a. The product is intangible
b. Ownership is transferred at time of purchase
c. $t can be demonstrated before purchase
d. $t can be stored in inventory
%2. This type of customer4introduced variability reuires that customers are able to participate in a service.
a. #apability b. )euest c. 0rrival d. 'ffort
%%. This is an outline of how customer preferences and service systems design interact in the market.
a. Service matri(
b. #ustomer matri(
c. Operations matri(
d. -esign matri(
%+. Which feature in the integrated supplier program focuses on checking parts before the final design!
a. 'arly supplier selection
b. .amily4of4parts sourcing
c. 3ong4term relationship
d. Paperwork reduction
%/. Which of these is &OT an element of lean thinking!
a. Specify value map from the management2s point of view
b. Strive for perfection
c. Pull the product from the customer
d. .low the service through the system
%1. This 3ean System implementation approach reuires correction of capacity shortfalls and provides spare
capacity in all areas.
a. 9alance fabrication rates with final assembly production rates
b. Work backward from final assembly
c. :ain the cooperation of the workforce
d. '(tend lean production to the suppliers
%5. Which type of management information systems includes e(pert systems!
a. -ecision Support Systems
b. Process #ontrol System
c. $nformation )eporting System
d. '(ecutive $nformation System
%6. Which of the following refers to the ma(imum rate of output of a process!
a. #apacity b. .low rate c. Process cycle d. Process
%8. 3ittle2s 3aw is euated asD
a. 0verage throughput ( 0verage flow rate
b. 0verage throughput E 0verage flow rate
c. 0verage throughput F 0verage flow rate
d. 0verage throughput 4 0verage flow rate
+<. These are used to describe and improve the transformation process in business.
a. .lowcharts
b. Pie graphs
c. .ish4bone diagrams
d. $PO -iagram
+;. These are used to classify the groceries by warehouse aisle to facilitate picking.
a. Pick sheets
b. )oute maps
c. -rivers2 manifests
d. )oad maps
+2. "uantitatively7 availability can be measured asD
a. Bptime E Bptime F -owntime
b. Bptime E -owntime
c. Bptime ( -owntime G Bptime
d. -owntime E Bptime
+%. $t means producing a product to meet the specifications.
a. "uality of conformance
b. "uality of abilities
c. "uality of service
d. "uality of design
++. These refer to the appearance of the company2s physical facilities7 euipment7 and personnel.
a. Tangibles b. )eliability c. 0ssurance d. 'mpathy
+/. $t is measured as the percentage of orders filled complete from inventory.
a. -elivery fill rate
b. )eorder rate
c. #apacity rate
d. 3ead time rate
+1. This is used to redesign supply chain from scratch.
a. Ma,or process simplification
b. 9usiness process reduction
c. Supply process distribution
d. Systems integration
+5. "uality can be measured through a product2s performance or customer satisfaction. "uality is influenced by the
customer2s e(pectations and the supplier2s ability to deliver a product or service.
a. Statement ; and Statement 2 are both correct.
b. Statement ; is correct while Statement 2 is incorrect.
c. Statement ; is incorrect while Statement 2 is correct.
d. Statement ; and Statement 2 are both incorrect.
+6. Which of these is &OT considered in a facilities strategy decision!
a. 0mount of capacity
b. Types of facilities needed in the meantime
c. .acility si*e
d. .inancial capabilities
+8. The facilities strategy reuires a forecast of demand. #osts also affect the amount7 the timing and the location of
added capacity.
a. Statement ; and Statement 2 are both correct.
b. Statement ; is correct while Statement 2 is incorrect.
c. Statement ; is incorrect while Statement 2 is correct.
d. Statement ; and Statement 2 are both incorrect.
/<. Which type of facility strategy is used by most companies!
a. Product4focused
b. Market4focused
c. Process4focused
d. :eneral purpose
/;. This is the cost of buying or producing individual inventory items.
a. $tem cost
b. Ordering cost
c. #arrying cost
d. Stock out cost
/2. Which of these is &OT a basic assumption of the economic order uantity model!
a. The demand rate is unknown
b. The lead time is constant
c. &o stock outs are allowed
d. The item is a single product
/%. This is an information system used to plan and control inventories and capacity.
a. Material reuirements planning
b. 'conomic order system
c. Cust in time systems
d. Sales and operations planning
/+ This type of material reuirements planning system is used to plan and control all resources7 including inventory7
capacity7 cash7 personnel7 facilities and capital.
a. 'conomic )esource Planning
b. Type4$
c. Type42
d. Cust in Time
//. Which of the following is another term for shop4floor control system!
a. Manufacturing e(ecution system
b. Cob priorities schedule
c. Safety lead time
d. Btility management system
/1. This software system is one of the most widespread technologies used in manufacturing system.
a. #omputer40ided -esign
b. #omputer40ided Process Planning
c. #omputer40ided 'ngineering
d. #omputer &umerically #ontrolled
/5. Which of these integrates suppliers7 producers7 and customers!
a. :lobali*ation of Operations
b. Supply #hain Management
c. 'nvironmental #oncerns
d. 3ean Operations
/6. What type of operations ob,ective includes customer satisfaction and percentage of scrap and rework!
a. #ost b. "uality c. -elivery d. .le(ibility
/8. These products have predictable demands and low profit margins.
a. Original
b. $mitative
c. $nnovative
d. $nferior
1<. This strategy defines how a particular business will compete.
a. -istinctive Strategy
b. 9usiness Strategy
c. #orporate Strategy
d. .unctional Strategy
1;. Which of these indicate how the operation ob,ectives should be achieved!
a. Tactics b. Policies c. Mission d. >ision
12. This process selection factor depends on market activities.
a. #apital )euirements
b. Market #onditions
c. 3abor 0vailability
d. Technology
1%. Which form of mass customi*ation uses computer4controlled production and bar codes that are uniue to
specific orders!
a. Postponement of options
b. .ast changeover
c. Modular Production
d. Made4to4order
1+. Which company developed the Cust4in4Time Process System!
a. =onda b. Toyota c. Mitsubishi d. &issan
1/. Which of these is &OT an application of M4business!
a. Procurement
b. 0udit
c. 0sset Tracking
d. Service Management
11. This hardware technology is a system designed to improve efficiency in the movement7 storage and retrieval of
materials.
a. #omputer &umerically #ontrolled
b. 0utomated Material =andling
c. 0utomated :uided >ehicle
d. .le(ible Manufacturing #ell
15. 9usiness Process )eengineering involves analy*ing critical processes within the business. Then7 these critical
processes are removed to better serve the customer.
a. Statement ; and Statement 2 are both correct.
b. Statement ; is correct while Statement 2 is incorrect.
c. Statement ; is incorrect while Statement 2 is correct.
d. Statement ; and Statement 2 are both incorrect.
16. Which of these can be determined before the product is made!
a. "uality of conformance
b. "uality of design
c. "uality of abilities
d. "uality of service
18 What do you call the length of time that a product can be used before it fails!
a.)esponsiveness b. )eliability c. 0ssurance d. Tangibles
5<. This uality guru defined uality as a continuous improvement of a stable system
a. Shigeo $shikawa
b. 'dwards -eming
c. Philip #rosby
d. Coseph Curan
5;. Which of these is &OT a type of e4procurement service!
a. Online catalogs
b. #omputer design
c. Third4party auctions
d. Private e(changes conducted by
corporations
52. What is the formula for utili*ation!
a. Output E $nput
b. Output E &ominal #apacity
c. &ominal #apacity F Output E $nput
d. $nput E &ominal #apacity
5%. @our facility has the capacity to produce ;2/7<<< units while your average demand is 5%7+;6 units. What is the
capacity cushion for your facility!
a. /<;62 b. /;/62 c. /;262 d. /;/26
5+. Which of the following factors #0&&OT influence demand!
a. Pricing
b. Order process
c. )eservation
d. -evelopment of #omplimentary Products
5/. What is the formula for re4order point!
a. Safety factorE lead time
b. 0verage demand E lead time
c. 0verage demand E safety factor
d. Safety factorE lead time
51. This system element specifies the output of the operations function.
a. 9ill of Materials
b. Master Scheduling
c. $nventory )ecords
d. #apacity Planning
55. Which department is responsible for the operations function in a manufacturing company!
a. Marketing department
b. Purchasing department
c. Production department
d. '(ecutive department
56. This operations theme is concerned with eliminating waste activities in every part of operations.
a. 'nvironmental #oncerns
b. :lobali*ation of Operations
c. 3ean Operations
d. Operations with Other .unctions
58. Which of these is &OT a contemporary operations theme!
a. 'nvironmental #oncerns
b. Supply #hain Management
c. :overnment )egulations
d. #ustomer4-irected Operations
6<. 0ccording to this view of new product introduction7 the customer need is the primary basis for determining the
products a firm should make.
a. Technology push b. $nterfunctional
c. Market pull d. $ntrafunctional
6;. 0t the end of this phase7 the firm has a set of product specifications that can be the basis for building and testing
production prototypes.
a. Pilot production
b. #ommerciali*ation
c. Product design
d. #oncept development
62. What type of customer order can provide faster service to customer from available stock and lower cost!
a. Made4to4order
b. Made4to4produce
c. Made4to4stock
d. Made4to4e(port
6%. This is a manufacturing strategy to provide products in lot si*es of high volume.
a. .ocus
b. Product4Process
c. Mass #ustomi*ation
d. #ross4.unction
6+. This type of customer4introduced variability stipulates that customers come to consume a service.
a. #apability b. )euest c. 0rrival d. 'ffort
6/. These are the actions that are done in order to compensate for service failures.
a. Service complaint
b. Service reliability
c. Service recovery
d. Service e(perience
61. Which feature in the integrated supplier program involves an e(clusive contract with the supplier!
a. 'arly supplier selection
b. .amily4of4parts sourcing
c. 3ong4term relationship
d. Paperwork reduction
65. What is the formula in computing the number of containers needed to operate a work center!
a. -emand rate of using the work centerEH3ead time ( #ontainer si*eI
b. H-emand rate of using the work center ( #ontainer si*eIE3ead time
c. H-emand rate of using the work center ( 3ead timeI E #ontainer si*e
d. -emand rate of using the work centerE3ead time
66. Which process technology allows the e(change of structured information!
a. 'lectronic $nformation Transfer
b. 'lectronic $nformation $nterchange
c. 'lectronic -ata $nterchange
d. 'lectronic -ata Transfer
68. What type of team is formed if the system cuts across organi*ational boundaries!
a. Self4managed
b. Problem4solving
c. #ross4functional
d. >irtual
8<. This is the ma(imum rate of output of a process.
a. $nventory b. Output c. #apacity d. Process )ate
8;. =e advocated that organi*ations should seek to produce *ero defects or to make it right the first time.
a. Shigeo $shikawa
b. 'dwards -eming
c. Philip #rosby
d. Coseph Curan
82. $t refers to the percentage of orders delivered complete and on the date reuested by the customer.
a. -elivery fill rate
b. 3ead time delivery
c. On4time delivery
d. )eorder point
8%. What type of integration is used when a manufacturer buys a supplier company!
a. >ertical integration
b. .orward integration
c. 9ackward integration
d. =ori*ontal integration
8+. Which of the following is defined as the total manufacturing cost!
a. >ariable cost
b. .i(ed cost
c. Bnit cost
d. Opportunity cost
8/. This type of facility produces components or parts that are shipped to other facilities for further processing.
a. Product4focused
b. Market4focused
c. Process4focused
d. :eneral purpose
81. This cost is associated with keeping items in inventory for a period of time.
a. $tem cost
b. Ordering cost
c. #arrying cost
d. Stock out cost
85. This is the cost of forgone opportunities that is given up for other investments.
a. =olding cost
b. Storage cost
c. #apital cost
d. #ost of obsolescence deterioration and loss
86. $n what year did ..W. =arris developed the economic order uantity formula!
a. ;8;% b. ;8;+ c. ;8;/ d. ;8;1
88. Which type of system monitors stock position at periodic intervals!
a. Periodic evaluation system
b. 'conomic order uantity
c. Periodic review system
d. #ontinuous review system
;<<. Which of these is &OT an element in a successful material reuirements planning system!
a. 0deuate #omputer Support
b. 0ccurate -ata
c. 'valuation and Monitoring
d. Management Support