Production and Operations Management 3

Objective Questions and Answers of MBA: Production and Operations Management 3

Subject: Objective Questions and Answers of MBA: Production and Operations Management 3

Part 3: Objective questions and answers of Production and Operations Management

 

Q1. A––––––––– history card is the record of all repairs, replacements and engineering changes carried out in the equipment during its period of service.

a) Service

b) Equipment

c) Repair

d) None of the above

 

Q2. Which of the following best describes strategic planning?

a) Time horizon: long-term

level of detail: summarized

source: mainly internal

b) Level of detail: summarized

source: mainly external

degree of certainty: certain

c) Time horizon: long-term

level of detail: summarized

degree of certainty: uncertain

d) Time horizon: long-term

level of detail: highly detailed

source: mainly external

 

Q3. An expansionist capacity strategy is not indicated when:

a) A preemptive marketing strategy is used.

b) Expansion will lead to economies of scale.

c) Expansion is made in large increments.

d) Capacity expansion is consistently ahead of demand.

 

Q4. Which of the following actions would be best if a firm faced highly seasonal demand for a perishable product?

a) Hire and fire employees as demand fluctuates.

b) Build up inventory when demand is low.

c) Add warehouse and production building space to accommodate the highest period of demand.

d) Offer a product with a complementary demand pattern.

 

Q5. A strategy which aims to produce the maximum amount of goods at the lowest possible price is called:

a) Production orientation.

b) Selling orientation.

c) Societal marketing.

d) Cost orientation.

 

Q6. The paradigm that leads to more complex products at ever-increasing prices is ______.

a) Product orientation

b) Production orientation

c) Marketing orientation

d) Sales orientation

 

Q7. Two systems are described as_________________ if a change in the outputs of one causes a substantial change in the state of the other.

a) Highly decoupled

b) Highly coupled

c) Black boxes

d) Sub-systems

 

Q8. Yield management is not especially useful where:

a) The service/product can be stored

b) Capacity is relatively fixed

c) The service cannot be sold in advance

d) The market can be fairly clearly segmented

 

Q9. A specific satisfier for a need is called a______________.

a) Product

b) Demand

c) Want

d) Market

 

Q10. Inputs come from and outputs are transferred to the_________________ of a system.

a) Environment

b) Sub-system

c) Comparator

d) Effector

 

Q11. When demand exceeds capacity, a firm should

a) Lower prices.

b) Add workers.

c) Temporarily lay-off workers.

d) Advertise.

 

Q12. One way to decouple the production system and the sales system is:

a) To introduce a feedback loop

b) To treat the systems as black boxes

c) To decrease sales

d) To introduce an inventory

 

Q13. Efficiency is given by

a) Actual output divided by design capacity.

b) Capacity divided by utilization.

c) Effective capacity divided by actual output.

d) Actual output divided by effective capacity.

 

Q14. Demand is created when:

a) A need is identified.

b) A significant group of people want to buy something.

c) People who can afford something want to buy it.

d) Marketers persuade people to want something.

 

Q15. In general, a less capital-intensive industry such as a hotel chain would do well with a utilization rate of:

a) Approximately 18%.

b) 30-40%.

c) 60-70%.

d) 100%.

 

Q16. The first steps of capacity planning and control do not include:

a) Identifying the alternative capacity plans?

b) Measuring aggregate demand and capacity?

c) Studying the effect of queuing theory

d) Choosing the most appropriate capacity plan?

 

Q17. A measure of the reserve capacity a process has to handle in unexpected increases in demand is the:

a) Capacity utilization rate.

b) Capacity cushion.

c) Capacity bottleneck.

d) Capacity constraint limit.

 

Q18. The multiple product case of determining breakeven in dollars

a) Weights the variable cost of each product.

b) Weights the selling price of each product.

c) Weights the fixed cost attributable to each product.

d) Weights the contribution of each product.

 

Q19. Which of the following provides the best definition of 'information'?

a) Computer hardware

b) Data processed for a purpose

c) Computer software

d) Transaction data

 

Q20. What are the four stages of simon's model of decision making?

a) Intelligence, design, choice, implementation

b) Intelligence, design, computation, implementation

c) Information, design, choice, implementation

d) Intelligence, data, choice, implementation

 

Part 3: Objective questions and answers of Production and Operations Management

 

Q1. Answer b

 

Q2. Answer c

 

Q3. Answer b

 

Q4. Answer d

 

Q5. Answer a

 

Q6. Answer a

 

Q7. Answer b

 

Q8. Answer a

 

Q9. Answer c

 

Q10. Answer a

 

Q11. Answer b

 

Q12. Answer d

 

Q13. Answer d

 

Q14. Answer c

 

Q15. Answer c

 

Q16. Answer c

 

Q17. Answer b

 

Q18. Answer d

 

Q19. Answer b

 

Q20. Answer a