1.
Operations managers are responsible for assessing consumer wants and needs and selling and
promoting the organizations goods or services.
-FALSE
2. Forecasts of future demand are used by operations people to plan capacity.
TRUE
3. The three Rs- Reduce, Reuse and Recycle- are more applicable in service design than in product
design.
FALSE
4. Outsourcing some production is a means of a capacity constraint.
Overcoming
5. What is break-even quantity for the following situation?
FC= $1,200 per week VC= $2 per unit Rev= $6 per unit
300
6. Which of the following are assumptions of the break-even model?
I. Only one product is involved.
II. Everything that is produced cam be sold
III. The revenue per unit will be the same regardless of volume.
E. I, II, and III
7. The advantages of automation include:
I. Reduced output variability.
II. Reduced variable costs.
III. Machines don’t strike or file grievances.
IV. Machines are always less expensive than human labor.
C. I, II, and III
8. A tool that is not used for quality management is
D. Redesign
9. If average demand for an item is 20 units per day, safety stock is 50 units, and lead time is four
days, the Reorder Point will be:
130
10. A risk avoider would want safety stock.
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