Operations Management Quiz - 3

1. National Aeronautics Limited takes order to manufacture spares of aircraft engine. It takes order from Indian commercial airlines and Indian Air Force. What kind of finished good inventory policy they should adopt?
[A]Produce to stock
[B]Fixed order period
[C]Produce to order
[D]Economic order quantity



2. Which of the following forecasting methods uses quantitative model to forecast the demand?
[A]Delphi method
[B]Nominal group technology
[C]Historical analogy
[D]Exponential smoothing



3. Which of the following is not true about constrained optimization models?
[A]An optimization model reduces the feasible solutions for complex problem to a manageable number
[B]Optimization models make the decision-making process more objective
[C]Optimization models enable the decision-maker to solve practical problems mathematically
[D]Non-quantifiable criteria like worker motivation level, do not affect the effectiveness of the solution



4. Companies prefer to choose Asian countries for low-labor-cost services such as electronics assembly, textile making and ITES. Which of the following strategic advantage they are trying to derive by adopting this policy?
I. Comparative advantage.
II. Economies of scale.
III. Proprietary product technology.
[A]Only (I) above
[B]Only (II) above
[C]Only (III) above
[D]Both (I) and (II) above



5. Which of the following is not true for the simplex method for linear programming problem for maximization of the objective function?
[A]The algorithm for simplex method is iterative in nature
[B]The value of the constraint in the right-hand side of each of the constraints should be non-negative
[C]Each of the decision variables of the problem should be non-negative
[D]The algorithm is not suitable when there are more than two decision variables



6. An activity is said to be ahead of the schedule, if the critical ratio for the activity is
[A]Equal to one
[B]Less than one
[C]More than one
[D]Equal to zero



7. A planning method used to evaluate the feasibility of a master production schedule and to plan for providing the necessary capacity before the time the execution is scheduled to begin is known as
[A]Rough-cut capacity planning
[B]Materials requirement planning
[C]Business planning
[D]Operations planning



8. In “thin jobs” workers tend to become bored and unproductive. They are assigned different jobs to improve their productivity. Doing different types of work provides some variety that can stimulate workers to be more productive in their jobs. This management approach is known as
[A]Job enlargement
[B]Job enrichment
[C]Job rotation
[D]Job design



9. Which of the following is not true for the program evaluation and review technique (PERT) of project management?
[A]PERT provides a graphical display of projects that help the users understand the relationships among the activities
[B]PERT can be used in situations where two or more projects have to be planned together to share the available resources
[C]The PERT network always begins with a single node and ends with a single node, with at least a single continuous path in between the two nodes
[D]The slack time for an activity is the time by which that activity can be delayed without delaying the total project



10. The major input in the master schedule for the made-to-stock items is the
[A]Customer’s order
[B]Forecast of demand
[C]Material requirement planning
[D]Rough cut capacity planning



11. Which of the following issues falls under the purview of Tactical Decision?
[A]Problems of production and process design
[B]Deciding on priority of jobs
[C]Capacity determination
[D]Decision of working overtime or putting on a second shift



12. Which of the following factors does not affect degree of Backward Integration?
[A]Costs associated with producing components versus buying them
[B]Investments necessary to produce components in-house
[C]The capability of existing technology to produce components
[D]Ability of the organization to market its products



13. In which of the following Work Measurement Techniques, a detailed breakdown of the various types of activities is not required?
[A]Work Sampling
[B]Time Study
[C]Standard Data
[D]Predetermined Motion Times



14. Which of the following systems represents the highest level of automation in manufacturing?
[A]Computer Aided Design
[B]Computer Aided Manufacturing
[C]Computer Integrated Manufacturing
[D]Flexible Manufacturing System



15. Which of the following priority scheduling rules is based on the assumption that the jobs that consume more processing time are more valuable for the organization?
[A]Earliest due date
[B]Shortest processing time
[C]Longest processing time
[D]First in, first serve