Production and Operations Management 6

Objective Questions and Answers of MBA: Production and Operations Management 6

Subject: Objective Questions and Answers of MBA: Production and Operations Management 6

Part 6: Objective questions and answers of Production and Operations Management

 

Q1. Identify the best definition of planning.

a) The core activity of planners and planning departments.

b) Setting an organization’s objectives and the means of reaching them.

c) Devising ways of achieving the objectives of an organization.

d) An integrated process, in which plans are formulated, carried out and controlled.

 

Q2. Which is not a part of 5r's of buying?

a) Right quality

b) Right quantity

c) Right source

d) None of the above

 

Q3. __________________ is concerned with the branch of economics relating the behavior of principals and their agents.

a) Financial management

b) Profit maximization

c) Agency theory

d) Social responsibility

 

Q4. Corporate governance success includes three key groups. Which of the following represents these three groups?

a) Suppliers, managers, and customers.

b) Board of directors, executive officers, and common shareholders.

c) Suppliers, employees, and customers.

d) Common shareholders, managers, and employees.

 

Q5. Purchasing responsibilities can be divided into buying, clerical and __________________ division.

a) Packing

b) Traffic

c) Record

d) Follow up

 

Q6. Which of the following statements is correct regarding profit maximization as the primary goal of the firm?

a) Profit maximization considers the firm's risk level.

b) Profit maximization will not lead to increasing short-term profits at the expense of lowering expected future profits.

c) Profit maximization does consider the impact on individual shareholder's eps.

d) Profit maximization is concerned more with maximizing net income than the stock price.

 

Q7. ___________________ is the scientific technique for planning the ordering and usage of materials at various levels of production and for monitoring the stocks during this transaction.

a) Mps

b) Mrp

c) Bom

d) None of these

 

Q8. Which of the following statements is not correct regarding earnings per share (eps) maximization as the primary goal of the firm?

a) Eps maximization ignores the firm's risk level.

b) Eps maximization does not specify the timing or duration of expected eps.

c) Eps maximization naturally requires all earnings to be retained.

d) Eps maximization is concerned with maximizing net income.

 

Q9. __________________ is concerned with the maximization of a firm's earnings after taxes.

a) Shareholder wealth maximization

b) Profit maximization

c) Stakeholder maximization

d) Eps maximization

 

Q10. The first activity of purchasing cycle is

a) Communicating requirement to the purchase

b) Source selection and development

c) Recognizing the need for procurement

d) Inspection of goods

 

Q11. __________________ is the task of buying goods of right quality, in the right quantities, at the right time and at the right price.

a) Supplying

b) Purchasing

c) Scrutinizing

d) None of these

 

Q12. Raw materials and w/p can be classified under

a) Indirect material

b) Direct material

c) Finished material

d) Standard parts

 

Q13. In a distribution requirements planning environment, forecasted demand at the plant level is equal to __________________ in the distribution center level.

a) Scheduled receipts

b) Planned receipts

c) Planned orders

d) None of the above

 

Q14. An mrp system that provides feedback to the capacity plan, master production schedule, and production plans is called

a) System nervousness.

b) Closed-loop mrp.

c) Lot-sizing.

d) Load report.

 

Q15. __________________ allows a segment of the master schedule to be designated as "not to be rescheduled."

a) Pegging

b) Regenerative mrp

c) Time fence

d) System nervousness

 

Q16. Which of the following lot-sizing techniques is likely to prove the most complex to use?

a) Part period balancing (ppb)

b) The wagner-whitin algorithm

c) Economic order quantity (eoq)

d) Lot-for-lot

 

Q17. When a bill-of-materials is used in order to assign an artificial parent to a bill-of materials, it is usually called a

a) Phantom bill-of-materials.

b) Planning bill-of-materials.

c) Modular bill-of-materials.

d) Pick list.

 

Q18. A lot-sizing technique that generates exactly what was required to meet the plan is

a) The wagner-whitin algorithm.

b) Economic order quantity.

c) Lot-for-lot.

d) Part period balancing.

 

Q19. __________________ is the amount of materials necessary to support production of the required output in the next higher level in the bill of materials.

a) Planning horizon

b) Available to promise

c) Net requirements

d) Gross requirements

 

Q20. A phantom bill-of-materials is a bill-of-materials developed for

a) A subassembly that exists only temporarily.

b) A final product for which production is to be discontinued.

c) The purpose of grouping subassemblies when we wish to issue "kits" for later use.

d) A module that is a major component of a final product.

 

Part 6: Objective questions and answers of Production and Operations Management

 

Q1. Answer b

 

Q2. Answer d

 

Q3. Answer c

 

Q4. Answer b

 

Q5. Answer b

 

Q6. Answer d

 

Q7. Answer b

 

Q8. Answer d

 

Q9. Answer b

 

Q10. Answer c

 

Q11. Answer b

 

Q12. Answer b

 

Q13. Answer c

 

Q14. Answer b

 

Q15. Answer c

 

Q16. Answer b

 

Q17. Answer b

 

Q18. Answer c

 

Q19. Answer d

 

Q20. Answer a