Chapter 09 – Production and Operations Management
242. The EZee Office Furniture Company makes high quality desks and chairs for
executive offices. The company is about to make a radical change in its production
process. It will take measurements from customers, have them select from a variety of
fabric patterns and answer some basic questions about the furniture styles they like, then
design a chair and desk that is ergonomically designed for maximum comfort for its users.
The new method EZee Office will use is an example of:
A. just-in-time manufacturing.
B. analytic production.
C. mass customization.
D. individualized production.
Feedback: Mass customization means tailoring products and services to meet the needs of
individual customers.
243. Initially, ATM’s (automated teller machines) were introduced so that customers could
make withdrawals from their bank accounts, day or night. As the technology improved,
the machines offered a variety of services including the acceptance of deposits, the ability
to get credit card advances, check your bank account balances, and even purchase prepaid
cell phone credit. ATMs now offer:
A. flexible manufacturing for its customers.
B. lean services because it only needs to keep a certain amount of cash in each machine.
C. technology similar to CAD.
D. faster service and mass customization.
Feedback: Mass customization means tailoring products and services to meet the needs of
individual customers.
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281. Which of the following is an important part of operations management?
A. Determining the best means of financing the firm’s operations
B. Developing the best advertising strategy to promote a firm’s products
C. Deciding whether to pay a dividend to the firm’s stockholders
D. Choosing the best location for a firm’s facilities
Feedback: Operations management includes such responsibilities as facilities location,
facilities layout, and quality control.
282.
Chapter 09 – Production and Operations Management
Which of the following statements best describes the impact of recent advances in
information technology on business location decisions?
A. Advances in information technology give firms a greater incentive to locate near big
cities, because that is where they can take full advantage of these advances
B. Western states tend to benefit the most from improvements in information technology,
because most states in this region have invested heavily in Internet technology
C. Advances in information technology will have no real effect on location decisions
D. Advances in information technology will give firms more flexibility in their location
decisions by reducing the need to locate close to sources of labor
Feedback: Recent developments in information technology (such as e-mail, voicemail,
teleconferencing, etc.) make it possible for many workers to telecommute, so a firm can locate
almost anywhere and still attract good workers.
283. Which of the following statements about facility location is most accurate?
A. Very few firms are still influenced by labor costs when making decisions about where
to locate
B. Recent changes in information technology have led firms to favor locations near major
urban areas
C. Manufacturers often seek to reduce time-to-market by locating facilities in areas with
access to key modes of transportation
D. No matter how large they become, most companies ultimately choose to locate major
facilities within a few miles of the area in which they started business
Feedback: In order to compete globally, manufacturers need sites that allow products to pass
through the system quickly and at low cost, and to be delivered rapidly and inexpensively to
customers. This leads many manufacturers to locate in areas with access to major highways,
rail lines, and airports.
