GSCM 206 Final Exam


GSCM 206 Final Exam
(TCO 7) Which of the following helps operations managers focus on the critical…


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GSCM 206 Final Exam

GSCM 206 Final Exam


(TCO 7) Which of the following helps operations managers focus on the critical few and not the trivial many? (Points : 10)

Value analysis

Value engineering

Financial analysis

Product-by-value analysis

Product cost justification

(TCO 8) A job shop is an example of a(n) _____. (Points : 10)

Repetitive process

Continuous process

Line process

Flow process

None of the above

(TCO 1) Which of the following is not a current trend in operations management? (Points : 10)

Overtime performance

Global focus

Supply chain partnering

Mass customization

All of the above

(TCO 11) Which of the following best describes vertical integration? (Points : 10)

Buying a supplier or a distributor

To develop the ability to produce products that complement the original product

To sell goods or services previously purchased

To develop the ability to produce the specified good more efficiently than before

(TCO 2) A strategy is _____. (Points : 10)

How an organization expects to achieve its mission

A broad statement of purpose

A simulation used to test various product line options

A plan for cost reduction

An action items to achieve the vision

(TCO 2) Which of the following activities takes place once the mission has been developed? (Points : 10)

The firm develops alternative or back-up missions in case the original mission fails.

The functional areas develop their functional area strategies.

The functional areas develop their supporting missions.

The 10 OM decision areas are prioritized.
Operational tactics are developed.

(TCO 2) According to the authors, what are the three key strategic concepts that allow firms to achieve their missions? (Points : 10)

Productivity, efficiency, and quality leadership

Differentiation, cost leadership, and quick response

Differentiation, quality leadership, and quick response

Distinctive competency, cost leadership, and experience

(TCO 3) The philosophy of kanban is _____. (Points : 10)

To move parts via a pull system

Prohibitively costly

An ultimate goal; in practice, 1 to 2% defects is acceptable

Consistent with the commitment to continuous improvement

(TCO 3) The use of information technology to monitor and control a physical process is known as _____. (Points : 10)

Computer-aided design

Vision systems


Process control

(TCO 6) Which of the following typically shows the components, their descriptions, and the quantity of each required to make one unit of a product?(Points : 10)

An engineering drawing

A route sheet

A bill of material

A work order

(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.


(Points : 10)





(TCO 5) Favors Distribution Company purchases small imported trinkets in bulk, packages them, and sells them to retail stores. In February, the company predicted they would sell 10,000 trinkets. Their sales for February were 9,000 trinkets. Using a smoothing constant of an alpha of 0.3, the sales manager wants to forecast March sales using exponential smoothing. (Points : 10)

9,700 trinkets

9,800 trinkets

9,500 trinkets

10,200 trinkets

(TCO 8) The Clothes Factory wants to increase capacity by adding a new sewing machine. The fixed costs for machine A are $2,000, and its variable cost is $3 per unit. The revenue is $5 per unit. The break-even point for the sewing machine is _____. (Points : 10)

200 units

600 units

1,000 units

1,500 units

(TCO 9) A truck stop is considering opening a new facility on the Interstate. The table below shows its ratings of four factors at each of two potential sites.

FactorWeightGary MallBelt Line
Affluence of local population.203030
Traffic Flow.405020
Parking availability.204030
Growth potential.201030

Using the factory rating method, the score for Gary Mall is _____ and the score for Belt Line is ______. (Points : 10)

Gary Mall = 34; Belt Line = 28

Gary Mall = 36; Belt Line = 26

Gary Mall = 22; Belt Line = 33

Gary Mall = 19; Belt Line = 24

(TCO 4) Gibson Valves produces cast bronze valves on an assembly line, currently producing 2,000 valves each 8-hour shift. If the productivity is increased by 10%, Gibson would be producing _____. (Points : 10)

180 valves/hr

200 valves/hr

220 valves/hr

275 valves/hr

1,760 valves/hr

(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 2,700 pounds of clothes can be washed in a day. Yesterday three employees were sick and only 2,100 pounds of clothes were washed. What is the efficiency of the washing machine yesterday? (Points : 10)





TCO 11) An insecticide distributor has a demand for 15,000 bags of insecticides per year. This company operates 300 days per year. On average, it takes 5 working days to receive an order from their supplier. What is the reorder point? (Points : 10)

(TCO 10) The MPS calls for 50 units of Product A and 60 of B. There are currently 35 of Product B on hand. Each A requires two of Part C; each B requires five of C. There are 160 units of C available.
(a) Calculate the net requirements for B.
(b) Calculate the gross requirements for C.
(c) Calculate the net requirements for C. (Points : 10)

(TCO 8) A product is currently made in a process-focused shop where fixed costs are $9,000 per year and variable cost is $50 per unit. The firm is considering a fundamental shift in process to repetitive manufacture. The new process would have fixed costs of $90,000 and variable costs of $5. What is the crossover point for these processes? For what range of outputs is each process appropriate? (Points : 10)

(TCO 7) Explain the concepts of the product life cycle and identify the four phases of the product development cycle. Make sure you define the strategies used in each phase. (Points : 34)

The product life cycle is the application of biological knowledge to products. Its various stages consist of the…

(TCO 2) Describe core competencies and their relationship to operations management. Please provide an example for a manufacturing environment and a service environment. (Points : 33)

Core competencies consist of the technologies or unique skills that are used for creating distinct customer…

(TCO 3) Define e-procurement and its importance to operations management. Identify three processes that firms can benefit from utilizing e-procurement.(Points : 33)

E-procurement refers to the business-to-business sale and purchase of services and supplies over the Internet. Its many…

GSCM 206 Final Exam