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Production and Operations Management Multiple Choice Questions and Answers | Production and Operations Management MCQs Quiz

(1) Which of the following is not a trend in job design?
[A] Temporary Workers
[B] 9 to 5 scheduling
[C] Alternative workplaces (telecommuting, shared offices, etc)
[D] Automation of manual work
Answer: 9 to 5 scheduling
(2) Work measurement techniques include all of the following except:
[A] On the job training
[B] Time study
[C] Work sampling
[D] Predetermined motion-time data systems
Answer: On the job training
(3) One use of inventory is
[A] To ensure that item cost is maximized.
[B] To tightly link production and distribution processes.
[C] To provide a hedge against inflation.
[D] To tightly link a firm's production with its customers' demand.
Answer: To ensure that item cost is maximized.
(4) The appropriate level of safety stock is typically determined by
[A] Minimizing expected stockout cost.
[B] Taking the square root of the economic order quantity.
[C] Choosing the level of safety stock that assures a given service level.
[D] Carrying sufficient safety stock so as to eliminate all stockouts.
Answer: Choosing the level of safety stock that assures a given service level.
(5) Inventory carried for the purpose of providing flexibility to each decision-making unit to'manage its operations independently is known as
[A] Safety inventory
[B] Cycle inventory
[C] Seasonal inventory
[D] Decoupling inventory
Answer: Decoupling inventory
(6) Higher number of stock points required for risk pooling results in higher savings in terms of
[A] Decoupling inventory
[B] Pipeline inventory
[C] Cycle inventory
[D] Safety inventory
Answer: Cycle inventory
(7) A system that triggers ordering on a uniform time basis is called a
[A] Fixed-quantity system.
[B] Reorder point system.
[C] Fixed-period system.
[D] EOQ.
Answer: Fixed-period system.
(8) Extra units that are held in inventory to reduce stockouts are called
[A] Just-in-time inventory.
[B] Reorder point.
[C] Demand variance.
[D] Safety stock.
Answer: Safety stock.
(9) ABC analysis divides an organization's on-hand inventory into three classes based upon
[A] Annual demand.
[B] The number of units on hand.
[C] Unit price.
[D] Annual dollar volume.
Answer: Annual dollar volume.
(10) In the probabilistic model, increasing the service level will
[A] Cannot be determined.
[B] Have no impact on the cost of the inventory policy.
[C] Increase the cost of the inventory policy.
[D] Reduce the cost of the inventory policy.
Answer: Increase the cost of the inventory policy.