Operations management

One measure of success for a firm is a high return on investment (ROI). Which of the following are NOT characteristics of high-return-on-investment firms?

• low investment intensity
• high product quality relative to their competition
• high capacity utilization
• high variety of product options

A strategy is

• an action plan to achieve a mission.
• the goal that is to be achieved.
• the purpose for which an organization is established.
• a functional area of the firm.

Which of the following is NOT one of the 10 strategic OM decisions listed in the text?

• quality
• location selection
• marketing
• layout design

Competing on differentiation is

• based upon low-cost leadership.
• concerned with reliability of scheduling.
• concerned with uniqueness.
• based on flexibility.

Competing on cost is

• based upon low-cost leadership.
• concerned with uniqueness.
• concerned with reliability of scheduling.
• based on flexibility.

An operations manager is considering three different production systems for the following year. System A has a fixed cost of $25,000 and a variable cost of $15 per unit. System B has a fixed cost of $15,000 and a variable cost of $20 per unit. The third option is outsourcing, which has a cost of $27 per unit. Which production system will result in the lowest cost if anticipated volume next year is 2500 units?

• System B
• System A
• The manager will be indifferent between System A and System B.
• Outsourcing

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

• The Wagner-Whitin algorithm

• economic order quantity

• lot-for-lot

• part period balancing

In this chapter, quality is defined as:

• The degree of excellence at an aceptable Price and the control of variability at an aceptable cost

• How well a product fits patterns of consumer preferences

• The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs.

• Being imposible to define, but you know what it is.

If 1 million passengers pass through the Jacksonville Airport with cheked baggage each year, a successful Six sigma program for baggage handling would result in how many passengers with misplaced luggage?

• 3.4

• 6.0

• 34

• 2,700

• 6 times the monthly standard deviation of passengers

The process of identifying other organizations that are best at some facet of your operations and then modeling your organization after them is known as:

• Continuous improvement

• Employee empowerment

• Benchmarking

• Copycatting

• Patent infringement