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August 27, 2012
VISK 2010 D
Operations Production Management
Week 5 Test 4: Chapters 7, 9, 11, 12 and Tosy Robotics Tour

100 Points (10% of final grade)

“OM3” text Chapter 7, 9, 11, 12 & Tosy Robotics Factory Tour

Full Name:Class: VISK2010DVISK2010EVISK2010F

Keuka ID Number:

Please complete the following ten True/False and Multiple Choice questions by selecting one response for each question (Points for each True/False = 5 points; and each Multiple Choice = 5 points).

The two short answer questions are worth 5 points each.

Select True or False:

1.Because services cannot inventory their output, they must forecast demand more accurately and better manage the resources needed to provide the service. True_____False_____

2.A custom good or service is produced in anticipation of demand. True_____False_____

3.Supply chains often must be redesigned when a firm's product lines and markets change or expand. True_____False_____

4.Contract manufacturers can provide the benefit of lower total costs resulting from economies of scale. True_____False_____

5.The decision by VISK 2010C, Class FP 401, not to purchase from the three BUS 330 classes, is an example of an irregular variation in demand. True_____False_____

6.Because of random variations, forecasts are never 100% accurate. True_____False_____

7.Safety stock inventory is an additional amount of inventory kept over and above the average amount required to meet demand during the lead time. True_____False_____

8.A stock-keeping unit (SKU) is the same no matter at which location the item is found. True_____False_____

Circle the letter for the correct answer:

9.Automobile factories and hospital laboratory work are examples of

b.Job shop
c.Flow shop processes
d.Continuous flow processes

10.Which is the correct order of hierarchy?

a.Activity, task, process, value chain