Production and Operations Management

431. Gibson Valves produces cast bronze valves on an assembly link. If 1600 valves are produced in an 8-hour shift, the productivity of the line is

  1. 2 valves/hr
  2. 40 valves/hr
  3. 80 valves/hr
  4. 200 valves/hr
  5. 1600 valves/hr
Correct answer: (D)
200 valves/hr

432. The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. Due to higher demand,they have decided to operate three 8-hour shifts instea

  1. They are now able to produce 600 boxes per day. What has happened to production?
  2. it has increased by 50 sets/shift
  3. it has increased by 37.5 sets/hr
  4. it has increased by 20%
  5. it has decreased by 8.3%
  6. it has increased by 9.1%
Correct answer: (C)
it has increased by 37.5 sets/hr

433. Which of the following is not true when explaining why productivity tends to be lower in the service sector than in the manufacturing sector?

  1. Services are typically labor intensive
  2. Services are often difficult to evaluate for quality
  3. Services are often an intellectual task performed by professionals
  4. Services are difficult to automate
  5. Service operations are typically capital intensive
Correct answer: (E)
Service operations are typically capital intensive

434. A company's channel decisions directly affect every ______________

  1. competitor's actions
  2. marketing decision
  3. channel member
  4. employee in the channel
Correct answer: (B)
marketing decision

435. A corporate VMS has the advantage of controlling the entire distribution chain under ______________

  1. single ownership
  2. a profit-maximizing strategic plan
  3. a few intermediaries
  4. mass distribution
Correct answer: (A)
single ownership

436. Julie Newmar recognizes that her company needs to provide better customer service and trim distribution costs through teamwork, both inside the company and among all marketing channel organizations. Julie will begin the practice of ______________

  1. customer relationship management
  2. horizontal marketing system management
  3. supply chain management
  4. integrated logistics management
Correct answer: (D)
integrated logistics management

437. Value stream mapping is an application of process mapping, developed to apply ______________ principles to process improvement.

  1. management
  2. lean
  3. supply chain
  4. cycle time
Correct answer: (B)
lean

438. "3PL" involves using a supplier to provide ______________ services.

  1. marketing
  2. design
  3. logistics
  4. contract manufacturing
Correct answer: (C)
logistics

439. The fundamental objective of supply chain management is ______________

  1. supply goods
  2. create goods
  3. add value
  4. identify supplier
Correct answer: (C)
add value

440. In CRM - PSA stands for ______________

  1. Product and Service Agreements
  2. Plan Service Agreements
  3. Policy Service Agreements
  4. Promotion Service Agreements
Correct answer: (A)
Product and Service Agreements
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