Operations Management | Multiple-choice Questions Answers Quiz - 14

1. Manager (operations) of a manufacturing factory is planning to set the production target for the month of July (2005). He uses first-order exponential smoothing technique to forecast the demand. Actual and forecasted demand for last four months (in 2005) are as follows:
Month |Mar |Apr |May |June
Forecast |52.0 |43.6 |44.6 |47.8
Actual |40.0 |45.0 |49.2 |52.0
The demand forecast for the month of July (2005) would be
[A]47.9
[B]48.6
[C]49.3
[D]50.7


2. Roshni Ltd., a bulb manufacturing company, has earned a reputation in the market because of the long life of its bulb filaments. This is an appropriate example of which of the following quality dimensions?
[A]Features
[B]Conformance
[C]Serviceability
[D]Durability


3. The categories of decisions that are taken by operations managers are
I. Strategic decisions.
II. Tactical decisions.
III. Technical decisions.
IV. Operational decisions.
[A](I), (II) and (III) above
[B](I), (II) and (IV) above
[C](I), (III) and (IV) above
[D](II), (III) and (IV) above


4. Which of the following is a function of Directing?
[A]Issue job assignments and instructions
[B]Guide by informing correct work methods
[C]Give more challenging job assignments
[D]Support employees in training programs


5. Which of the following constitute the development of new products?
I. Idea generation.
II. Economic evaluation.
III. Market testing.
[A]Only (I) above
[B]Both (I) and (II) above
[C]Both (I) and (III) above
[D]All (I), (II) and (III) above


6. ________________ is the average of the errors made by the forecast over a period of time without considering the direction of error.
[A]Mean Square Error
[B]Mean Forecast Error
[C]Mean Absolute Deviation
[D]Mean Absolute Percentage Error


7. Demand for a product ‘X’ for Jan to June is given in the table. Calculate the demand for the product using 3 – month simple moving average for July in units
Months Jan Feb March April May June
Demand(In units) 100 150 160 120 180 140
[A]127
[B]137
[C]147
[D]157


8. Revathi Works Private Limited earns a profit of Rs.75,000 by selling 25,000 units. The selling price and variable cost per unit are Rs.25 and Rs.10 respectively. Then the Break even point occurs at
[A]12,000 units
[B]15,000 units
[C]20,000 units
[D]25,000 units


9. Which of the following is an objective function for the information provided. A trader sells chairs and tables at Rs.230 and Rs.580 each respectively, he procures them at Rs.180 and Rs.480 respectively.
[A]Maximize Z = 230x1+ 480 x2
[B]MinimizeZ = 180 x1+ 580 x2
[C]Minimize Z = 230 x1 + 580 x2
[D]MaximizeZ = 50 x1 + 100 x2


10. A firm achieved sales of 1000 units in the month of May when the forecast was for 900 units. The estimated sales for the month of June for a smoothing constant of 0.1, are
[A]850 units
[B]870 units
[C]890 units
[D]910 units


11. If a company works for 3 shifts of 8 hours each a day and setup time of each machine is one hour in each shift. The daily demand is 3,780 units. The sum of task times (T) is 100 seconds. Then the theoretical number (Nt) of machines required is
[A]2 workstations
[B]3 workstations
[C]4 workstations
[D]5 workstations


12. Which of the following is not a reason for holding finished goods as inventory?
[A]Larger shipments can result in reduced incoming freight costs and material handling cost
[B]Production of products as and when the customers demand them can be uneconomical
[C]Quantity discounts can result from larger p urchase quantities
[D]Backlogs in customer orders may not always be allowed


13. Which of the following constitute functions of M aster Production Schedule?
I. Translate aggregate plans.
II. Evaluate alternative schedules.
III. Identify material requirements.
IV. Generate capacity requirements.
[A](I), (II) and (III) above
[B](I), (II) and (IV) above
[C](I), (III) and (IV) above
[D]All (I), (II), (III) and (IV) above


14. Which of the following is not an advantage of Job Specialization?
[A]It results in lower production time and higher productivity by the Learning Curve Effect due to repetition
[B]It results in simpler work instructions and easy production control because of consistence in work assignment
[C]It always results in higher work satisfaction
[D]There is ease in recruiting new workers because fewer skills are required


15. In which of the following Work Measurement Techniques, managers generally determine reasonable standards for new common tasks, basing on the standards previously set for old common tasks, and usually maintain a database of the standard time required for work elements with information obtained through previous studies?
[A]Historical Analysis
[B]Predetermined Motion Times
[C]Work Sampling
[D]Standard Data