Final Revision (POM)

1. An advantage of a weighted moving average is that recent actual results can

be given more importance than what occurred a while ago.
2. Forecasting techniques that are based on time-series data assume that future
values of the series will duplicate past values.
3. The shorter the forecast period, the more accurately the forecasts tend to
track what actually happens.
4. Service often requires greater labor content, whereas manufacturing is more
capital intensive.
5. Improving efficiency will guarantee a similar improvement in productivity.
6. The hierarchy and sequence of planning and decision making is: mission,
organizational strategy, tactics, and operational decisions.
7. An organization that is twice as productive as its competitor will be twice as
profitable.
8. Quality function deployment is a structured approach that guarantees that the
highest-quality product or service will be designed.
9. Basic research is done with the expectation that discoveries will have near-
term commercial application.
10.The purpose of the forecast should be established first so that the level of
detail, amount of resources, and accuracy level can be understood.
11.The value of outputs is measured by the prices customers are willing to pay for
goods or services.
12.Tracking productivity measures over time enables managers to judge
organizational performance and decide where improvements are needed
13.An example of an operational operations management decision is inventory
level management.
14.Forecasts for groups of items tend to be less accurate than forecasts for
individual items because forecasts for individual items don't include as many
influencing factors.
15.Often, the collective success or failure of companies' operations functions will
impact the ability of a nation to compete with other nations
16.Forecasting techniques generally assume an existing causal system that will
continue to exist in the future.
17.A major benefit of computer-aided design (CAD) is the increased productivity
of designers.
18.One possible disadvantage of modular design is that:
A. replacement and repair are more difficult.
B. failure diagnosis is more complex.
C. the number of configurations of modules decreases.
D. individual parts lose their identities.

19. Suppose a three-period weighted average is being used to forecast demand.

Weights for the periods are as follows: wt-3 = 0.2, wt-2 = 0.3 and wt-1 = 0.5.
Demand observed in the previous three periods was as follows: At-3 = 2,200, At-2
= 1,950, At-1 = 2,050. What will be the demand forecast for period t?

A. 2,000 B. 2,095 C. 1,980 D. 2,050

20. Five workers installed 720 square yards of carpeting in ten hours, what is the
labor productivity in this case?

A. 17 B. 30 C. 14.4 D. 12.2

21. A wrapping paper company produced 3000 rolls of paper one day. Labor cost
was 150$, material cost was 40$ and, overhead cost was 220$. What is
multifactor productivity?

A. 4.77 B. 7.32 C. 3.3 D. 3.6

22. In an assembly operation at a furniture factory, nine employees assembled an

average of 450 standard dining chairs per ten-day week. What is the labor
productivity?

A. 5 Chairs/worker/day

B. 20 Chairs/worker/day

C. 15 Chairs/worker/day

D. 75 Chairs/worker/day
23. A machine produced 80 pieces in two hours. However, two pieces were
unusable. What is the productivity in this case?

A. 36 B. 35 C. 39 D. 20

24. Given an actual demand of 59, a previous forecast of 64, and an alpha of .3,
what would the forecast for the next period be using simple exponential
smoothing? 
 

A. 36.9

B. 57.5

C. 60.5

D. 62.5

E. 65.5

25. Which of the following is NOT a reason for redesigning a product or service?

A. to reduce labor or material cost

B. to increase the level of employee satisfaction

C. to increase the level of customer satisfaction

D. to attract and increase customer demand