Production and Operations Management

481. Which of the following is not a typical attribute of goods?

  1. output can be inventoried
  2. often easy to automate
  3. aspects of quality difficult to measure
  4. output can be resold
  5. production and consumption are separate
Correct answer: (C)
aspects of quality difficult to measure

482. The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. What is the productivity of the plant?

  1. 25 boxes/hr
  2. 50 boxes/hr
  3. 5000 boxes/hr
  4. none of the above
  5. not enough data to determine productivity
Correct answer: (A)
25 boxes/hr

483. The total of all outputs produced by the transformation process divided by the total of the inputs is

  1. utilization
  2. greater in manufacturing than in services
  3. defined only for manufacturing firms
  4. multi-factor productivity
  5. none of the above
Correct answer: (D)
multi-factor productivity

484. Productivity tends to be more difficult to improve in the service sector because the work is

  1. often difficult to automate
  2. typically labor intensive
  3. frequently individually processed
  4. often an intellectual task performed by professionals
  5. all of the above
Correct answer: (E)
all of the above

485. Intermediaries play an important role in matching.

  1. supply and demand
  2. product to region
  3. information and promotion
  4. manufacturer to product
Correct answer: (A)
supply and demand

486. A distinguishing feature of a contractual VMS is that coordination and conflict management among the independent members of the channel are attained through ______________

  1. contractual agreements
  2. working partnerships
  3. oral agreements
  4. limited liability corporations
Correct answer: (A)
contractual agreements

487. Which type of product might require a more direct marketing channel to avoid delays and too much handling?

  1. products in their maturity stage
  2. perishable products
  3. high-priced products
  4. lower-priced products
Correct answer: (B)
perishable products

488. Which of the following transportation modes is used for digital products?

  1. ship
  2. rail
  3. air
  4. the internet
Correct answer: (D)
the internet

489. Identify from the following list a major strategic risk associated with outsourcing.

  1. Outsourcing landed cost is usually higher than insourcing cost
  2. The supplier is purchased by a competitor
  3. The business loses sight of market trends
  4. The cost of supplied material is passed on to the customer
Correct answer: (B)
The supplier is purchased by a competitor

490. ______________ happens in manufacturing when information about consumer demand for any product becomes increasingly distorted as it moves upstream in the manufacturing process.

  1. information effect
  2. bullwhip effect
  3. supply effect
  4. demand effect
Correct answer: (B)
bullwhip effect
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