GSCM 206 All Quizzes


GSCM 206 All Quizzes
(TCO 1) Which one the following is not a reason why productivity is difficult…

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GSCM 206 All Quizzes

GSCM 206 All Quizzes

Quiz Week 1

(TCO 1) Which one the following is not a reason why productivity is difficult to improve in the service sector?

Labor intensive

Focuses on individual attributes

Often an intellectual task

Easy to mechanize and automate

Difficult to evaluate for quality

(TCO 1) What are the five elements in the management process?

Plan, direct, organize, pricing, and supervise

Accounting/finance, marketing, operations, and management

Organize, plan, implement, staff, and lead

All of the above

None of the above

(TCO 2) Which of the following is the best example of a pure service?


Oil change

Heart transplant

Electric Co-Op

All of the above

(TCO 2) Which of the following has not been a key driver to the globalization of business?

Reduction in cultural barriers


Improved political stability

Reliable shipping

All of the above

(TCO 4) The Dulac Box plant produces 400 cypress packing boxes in one two-person assembly line during a 10-hour shift. What is the labor productivity of this assembly line?

20 boxes/labor hour

25 boxes/labor hour

50 boxes/labor hour

250 boxes/labor hour

500 boxes/labor hour

(TCO 4) Gibson Valves produces air valves on a five-person assembly line. If 1,200 valves are produced in an 8-hour shift, what is the labor productivity of the line?

2 valves/labor hour

4 valves/labor hour

30 valves/labor hour

40 valves/labor hour

80 valves/labor hour

(TCO 4) John has a part-time business taking engagement photos. He currently works a total of 5 hours per day to produce 15 group photos. What is his productivity?

One photo per hour

Two photos per hour

Three photos per hour

Four photos per hour

(TCO 2) The impact of a firm’s strategies to achieve their mission is which of the following?

They exploit opportunities and strengths.

They operate on medium-range tactics.

They are not long range.

They neutralize threats and avoid weaknesses.

They both exploit opportunities and strengths, and they neutralize threats and avoid weaknesses.

(TCO 2) Which of the following is an example of competing on quick response?

A firm produces its product with less raw material waste than its competitors.

A firm offers more reliable products than its competitors.

A firm’s products are introduced into the market faster than its competitors.

A firm’s research and development department generates many ideas for new products.

(TCO 4) Which is not a reason for a firm to internationalize operations?

Track customer complaints

Improve the supply chain

Provide better goods and services

Understand markets

All of the above

GSCM 206 All Quizzes

Quiz Week 2

(TCO 5) What is the forecast for November, based on a weighted moving average applied to the following past-demand data and using the weights 4, 2, and 0 (largest weight is for most recent data)?






(TCO 5) Jim’s department at a local department store has tracked the sales of a product over the last 10 weeks using exponential smoothing with an alpha of 0.3. In January, he forecasted $150,000 in sales and achieved $155,000 is sales. Using this same forecasting model, estimate Jim’s February sales. (Points : 3)





(TCO 5) Weekly sales of 10-grain bread at the local Whole Foods Market are in the table below. Based on this data, forecast Week 9 using a 3-week moving average.
Week Demand 

1         415
2         389
3         420
4         382
5         410
6         432
7         380
8         420 (Points : 3)





(TCO 5) What is the third step in building a house of quality? (Points : 3)

Relate customer wants to product hows.

Develop importance ratings.

Evaluate competing products.

Determine how our goods and services will satisfy our customers.

Identify customer wants.

(TCO 6) Which of the following is not true regarding computer-aided design (CAD)? (Points : 3)

It is not expensive to use in most manufacturing and design settings.

It is a newer technology and is in significant use.
It results in longer development cycles for virtually all products.
It is the use of computers to interactively design products and prepare engineering documentation.

(TCO 7) In which stage of the product life cycle does product development take place? (Points : 3)





(TCO 7) A product’s life cycle is divided into four stages, which are _____. (Points : 3)

Maturity, decline, introduction, and growth

Introduction, growth, stability, and decline

Introduction, maturity, saturation, and decline

Introduction, growth, maturity, and decide

None of the above

(TCO 7) Which of the following helps to keep production running when small variations in production or assembly occur? (Points : 3)

Modular design

Value engineering

Value analysis

Robust design


(TCO 5) In time series, which of the following cannot be predicted? (Points : 3)

Random variations “blips”

Technological trends

Seasonal fluctuations

Regular fluctuations

Large decreases in demand

(TCO 6) Which of these statements best describes computer-aided design (CAD)? (Points : 3)

It is the interactive use of computers to design a product and prepare engineering documentation.

The use of special computer programs to direct and control manufacturing equipment.

It is the ability to depict objects in three-dimensional form.

It is a visual form of communication in which images substitute for the real thing.

GSCM 206 All Quizzes

Quiz Week 3

(TCO 3) According to the ASQ-based definition of quality, _____.

Quality is the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs

Quality depends on how well the product fits patterns of consumer preferences, and even though quality cannot be defined, you know what it is

Quality is the degree to which a specific element conforms to standards

Quality lies in the eyes of the beholder

(TCO 3) Companies with the highest levels of quality are almost how many times more productive than their competitors with the lowest quality levels?





None of the above; quality has no impact on productivity (units/labor hour).

(TCO 3) Which of the following is not one of the major categories of costs associated with quality?

Fluctuating costs

Appraisal costs

Internal failures

External costs

None of the above; all of these are major categories associated with the cost of quality.

(TCO 8) An example of product-focused processes produce _____.

Projects and job shops

Commercial baked good, steel, and beer

Automobiles and home appliances


(TCO 3) Training and quality improvement programs are examples of _____.

Internal costs

External costs

Costs of dissatisfaction

Prevention costs

Societal costs

(TCO 3) Pareto charts are _____.

A way of organizing errors, problems, or defects

A graphical way to identify processes

Used to indicate which p may yield the least payoff

All of the above

(TCO 8) Which one of the following products is most likely made in a job shop environment?


Graphite pencils

Television sets


None of the above

(TCO 8) Strategies for improving productivity in services include _____.

Separation, self-check, automation, and scheduling

Lean production, strategy-driven investments, automation, and process focus

Reduce inventory, reduce waste, reduce inspection, and reduce rework

Separation, postponement, automation, and training

(TCO 8) Service blueprinting _____.

Provides the basis to negotiate prices with suppliers

Mimics the way people communicate

Determines the best time for each step in the process

Focuses on the provider’s interaction with the customer

Can only be successful with two-dimensional processes

(TCO 8) What is a system using an automated work cell controlled by electronic signals from a common centralized computer facility?

Adaptive control system


Fast manufacturing system

Automatic guided vehicle (AGV) system

Flexible manufacturing system

GSCM 206 All Quizzes

Quiz Week 4

(TCO 8) ABC Motors, Inc. wants to increase capacity by adding another wheel balancer. The fixed costs for the machine are $16,000, and its variable cost is $4.50 per unit. ABC charges $8.50 to balance one wheel, the break-even point for the balancer. What is her break-even point in units?

250 wheels

1,600 wheels

3,000 wheels

4,000 wheels

(TCO 9) A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites.
Factor                                              Weight Midtown Bayside
Affluence of local population          .30           40          40
Traffic flow                                       .10            50          20
Parking availability                         .40            30          40
Growth potential                              .20            20         10

The score for Midtown is _____ and the score for Bayside is _____.

Midtown = 7; Bayside = 8

Midtown = 30; Bayside = 29

Midtown = 30; Bayside = 45

Midtown = 33; Bayside = 32

(TCO 8) A bakery has a design capacity to bake 250 loaves of bread a day. However, because of scheduled maintenance of their equipment, management feels that they can bake 100 loaves a day. Yesterday the gas was turned off while the city was repairing a leak and only eight loaves where baked. What is the utilization of the ovens yesterday?





(TCO 8) ABC Cleaners’ washing machines have a design capacity of 2,800 pounds a day. Because of scheduled maintenance of their equipment, management feels that only 2,600 pounds of clothes can be washed in a day. Yesterday, three employees were sick and only 1,900 pounds of clothes were washed. What was the efficiency of the washing machine yesterday?





(TCO 8) Which of the following costs would not be incurred even if no units are produced?

Raw material costs

Direct labor costs

Transportation costs

Building rental costs

Raw material costs, direct labor costs, and transportation costs

(TCO 8) Fixed costs are

Costs that vary with volume of units produced.

The difference between the selling price and variable costs.

Not a part of the break-even analysis.

Costs that do not continue even if no units are produced.

None of the above

(TCO 9) Which of these factors would be considered when making a location decision at the site level?

Government rules, attitudes, stability, and incentives

Cultural and economic issues

Market regulations

Cost and availability of utilities

None of the above

(TCO 9) When making a location decision at the site level, which of these would be considered?

Corporate desires

Land/construction costs

Air, rail, highway, and waterway systems

Attractiveness of region

Location of markets

(TCO 9) Evaluating location alternatives by comparing their composite (weighted-average) scores involves

A cost-volume analysis.

A transportation model analysis.

A linear regression analysis.

A crossover analysis.

None of the above

(TCO 8) An operation that is the limiting factor or constraint is called a _____.

Drum, buffer, rope




GSCM 206 All Quizzes

Quiz Week 5

(TCO 3) In the make-or-buy decision, one of the reasons for “buying” is

To utilize internal capacity.

To lower acquisition of new products.

To obtain desired quality.

To remove supplier collusion.

None of the above

(TCO 2) In the make-or-buy decision, one of the reasons for buying is

To ensure adequate supply.

To obtain desired quality.

To remove supplier collusion.

Adequate capacity.

None of the above

(TCO 3) Which of the following is a component of negotiation strategies?

Invoice-less bidding

Cost-based price model

Market-based price model

Competitive bidding

Cost-based price model, market-based price model, and competitive bidding

(TCO 2) The three classic types of negotiation strategies are

Vendor evaluation, vendor development, and vendor selection.

Competitive bidding, market-based price model, and cost-based price model.

Many suppliers, few suppliers, and keiretsu.

Cost-based price model, market-based price model, and inventory-based.

(TCO 2) Long-term partnering with a few suppliers is a supply-chain strategy that creates value by allowing suppliers to

Become part of a company coalition.

Enjoy the economies of scale.

Become vertically integrated.

Negotiate with many suppliers.

(TCO 3) In the make-or-buy decision, which of the following is a reason for making an item?

Management focus on its primary business

To ensure an adequate supply in terms of quantity

Inadequate capacity

Reduce inventory costs

(TCO 3) What theory states that you should allow another firm to perform work activities for your company if that company can do it more productively than you can?

Theory of competitive advantage

Theory of core competencies

Theory of comparative advantage

Theory of outsourcing

Theory of offshoring

(TCO 3) This process occurs when business activity returns to the original country.





(TCO 2) Which of the following is not a concern of the supply chain?

Warehousing and inventory levels

Credit and cash transfers


Distributors and banks

Maintenance scheduling

(TCO 2) Keeping a product generic as long as possible before customizing is known as



Vendor-managed inventory.

Forward integration.

Backward integration.

GSCM 206 All Quizzes

Quiz Week 6

(TCO 11) All of the following statements about ABC analysis are true except (Points : 3)

Inventory may be categorized by measures other than dollar volume.

It is an application of the Pareto principle.
It states that all items require the same degree of control.
It states that there are the critical few and the trivial many inventory items.

(TCO 11) Which of the following statements regarding control of service inventories is true? (Points : 3)

Service inventory is a fictional concept, because services are intangible.
Service inventory needs no safety stock, because there’s no such thing as a service stockout.

Effective control of all goods leaving the facility is one applicable technique.

Service inventory has carrying costs but no setup costs.

Good personnel selection, training, and discipline are easy.

(TCO 11) Which of the following is not an assumption of the economic order quantity model shown below?

Q* =  (Points : 3)

Demand is known, constant, and independent.

Lead time is known and constant.

Quantity discounts are not possible.

Production and use can occur simultaneously.

The only variable costs are setup cost and holding (or carrying) cost.
(TCO 11) A certain type of computer costs $1,000, and the annual holding cost is 25%. Annual demand is 10,000 units, and the order cost is $150 per order. What is the approximate economic order quantity? (Points : 3)






(TCO 11) Demand for a given item is said to be dependent if (Points : 3)

It originates from the external customer.

There is a deep bill of material.

The finished products are mostly services (rather than goods).

There is a clearly identifiable parent.

The item has several children.

(TCO 10) Dependent demand and independent demand items differ in that (Points : 3)

For any product, all components are dependent-demand items.

The need for independent-demand items is forecast.

The need for dependent-demand items is calculated.

All of the above

None of the above

(TCO 10) A master production schedule specifies (Points : 3)

The raw materials required to complete the product.

What component is to be made and when.

What product is to be made and when.

The labor hours required for production.

The financial resources required for production.

(TCO 10) In job shop (make-to-order) operations, the master production schedule is usually expressed in (Points : 3)

end items.



Customer orders

Warehouse orders

(TCO 10) A bill of material lists the (Points : 3)

Times needed to perform all phases of production.

Production schedules for all products.

Components, ingredients, and materials required to produce an item.

Operations required to produce an item.

Components, ingredients, materials, and assembly operations required to produce an item.

(TCO 10) Which of the following statements best compares modular bills and phantom bills? (Points : 3)

Both pertain to assemblies that are not inventoried.

There is no difference between the two.
Both pertain to assemblies that are inventoried.
Modular bills are used for assemblies that are not inventoried, unlike phantom bills.

Modular bills represent subassemblies that actually exist and are inventoried, but phantom bills represent subassemblies that exist only temporarily and are not inventoried.

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Quiz Week 7

(TCO 3) Which of the following is not generally found in JIT environments? (Points : 3)

Push systems

Low amounts of waste in the form of time and production waste

Very small amount of variability

Low inventory stockpiles

(TCO 3) In JIT partnerships, suppliers have several concerns. Which of the following are concerns? (Points : 3)


Poor customer scheduling

Customers’ infrequent engineering changes small lot sizes

Producing high enough quality levels

All of the above

(TCO 3) Which of the following is a goal of JIT partnerships? (Points : 3)

Reduce inventory and variability

Increase variability

Increase in-transit inventory

Elimination of engineering changes

(TCO 3) Which one of the following is not a layout tactic in a JIT environment? (Points : 3)

Work cells for families of products

Cross training of workers

Maximizing distance

Poka-yoke devices

(TCO 3) Kanban is associated with all of the following except (Points : 3)

Slack in schedules.

Reducing setup time.

Pull systems.
Signaling when it is time for the next batch.

(TCO 3) Which of the following is generally found in most JIT environments? (Points : 3)

A push or pull system, depending upon the rate of demand
A push system for high margin items and a pull system for low margin items
A push system for purchased parts and a pull system for manufactured parts

Push systems

Pull systems

(TCO 3) What does TPS stand for? (Points : 3)

Total Production Streamlining

Toyota Production System

Taguchi’s Production S’s

Total Process Simplification

None of the above

(TCO 3) What is the time required to move orders through the production process from receipt to delivery? (Points : 3)


Manufacturing cycle time

Pull time

Push time

Queuing time

(TCO 3) Throughput measures the time (Points : 3)

That it takes to process one unit at a station.

Between the arrival of raw materials and the shipping of finished products.

To produce one whole product through an empty system (i.e., with no waiting).
Required to move orders through the production process, from receipt to delivery.

None of the above
(TCO 3) Concerning relationships with suppliers, which of the following combinations is critical to the success of JIT? (Points : 3)

Close relationships with trust

Close relationships with skepticism

Distant relationships with trust

Distant relationships with skepticism

None of the above

GSCM 206 All Quizzes