Which approach best describes integrated operational decision making?
9 Integrated Operational Decision Making Online Quiz Questions
Use this free practice quiz with 20 questions to review 9 Integrated Operational Decision Making, test your knowledge, and prepare for your next test or exam.
True or false: In a process, the bottleneck is the resource that limits total output.
- A
True
- B
False
Because demand forecasts are uncertain, managers should compare them with actual demand and consider alternative .
A process has a stated production capacity, but downtime, staffing shortages, changeovers, and defects reduce the output available on time. Which conclusion is most appropriate?
- A
Nominal capacity always equals the good output available to meet demand.
- B
Capacity should be assessed only after production is complete.
- C
Effective capacity accounts for factors that reduce the output actually available.
- D
Defects affect quality but never affect usable capacity.
True or false: Cutting inspection may reduce immediate labor while increasing defects, rework, and customer complaints.
- A
True
- B
False
What analysis method tests whether a preferred operational decision changes when assumptions such as demand, lead time, cost, or capacity change?
Which choice is most characteristic of a longer-term operations decision?
- A
A decision about facilities, process design, and supply-chain structure.
- B
A plan that assigns jobs and equipment for today's shift.
- C
A daily decision about the order in which available jobs are processed.
- D
A short-term adjustment to work assignments based on an immediate due date.
Conditions that a feasible operational plan must satisfy, such as minimum quality or delivery requirements, are called .
A manager is comparing operational alternatives using total performance rather than a single metric. Select all measures that can be relevant to that comparison.
- A
Inventory carrying costs
- B
The supplier's unit price as the only decision measure
- C
On-time delivery performance
- D
Defect and rework rates
A producer prebuilds 100 units in each of the four weeks before a demand peak. The first week's units are held for four weeks, the next week's for three, then two, then one. What is the total inventory holding in unit-weeks?
A planner must sequence jobs across equipment for the coming week. Which scheduling approach is most likely to produce a feasible plan?
- A
Schedule the jobs in the order they were requested, regardless of equipment or materials.
- B
Sequence jobs using actual capacity, available materials, due dates, and setup or changeover needs.
- C
Assign all jobs to the bottleneck resource at once to maximize its utilization.
- D
Prioritize jobs only by their expected processing times.
A producer expects a temporary demand increase but is uncertain about the forecast and supplier lead times. Describe how the manager should evaluate operational alternatives and follow through on the decision. Include how the manager should account for customer requirements, process limits, uncertainty, total performance, and changing evidence.
A producer is considering prebuilding inventory to cover a seasonal peak. The prebuild appears least costly under the forecast, but demand may be lower than expected and materials could arrive late. What is the best next step before committing to the plan?
- A
Select prebuilding immediately because its estimated cost is lowest under the stated assumptions.
- B
Ignore forecast error if the plan meets the average demand estimate.
- C
Test plausible demand scenarios and verify capacity, material timing, and the usability of any remaining inventory.
- D
Choose the supplier option because it avoids the need to check production capacity.
A company cuts inspection to reduce immediate labor costs. This could increase defects, rework, and customer complaints.
- A
True
- B
False
Three stations perform work in sequence. Station A can process 80 units per hour, Station B 55, and Station C 70. What is the process term for the resource that limits the sequence's total output?
A production planner is preparing a day-to-day work schedule. Which approach is most likely to produce a feasible sequence?
- A
Sequence jobs only by their expected processing times.
- B
Sequence jobs using available capacity, materials, due dates, and setup requirements.
- C
Schedule the highest-priority jobs first, even if their materials are unavailable.
- D
Assign all jobs to the same equipment to simplify coordination.
A buyer selects the supplier with the lowest unit price, but that supplier has a longer lead time. What is a possible operational consequence of this choice?
- A
It will always lower total cost because purchasing cost is the largest factor.
- B
It makes delivery performance independent of supplier lead time.
- C
It may require more safety stock or increase the risk of a missed delivery.
- D
It eliminates the need to compare suppliers' performance.
A manager's capacity estimate reflects equipment's stated maximum output, but the operation also experiences downtime, staffing gaps, and defects. What should the manager do before comparing capacity with expected demand?
- A
Use nominal capacity because it represents the maximum possible output.
- B
Estimate effective capacity after considering factors that reduce usable output.
- C
Use the most recent demand forecast as a direct measure of capacity.
- D
Assume that any output lost to defects can be recovered without affecting delivery.
A producer can supply 900 good units per week, while forecast demand is 1,000 units per week for 4 weeks. Assuming the forecast is accurate, what is the total shortfall across the peak period? Enter a whole number of units.
A factory is considering larger production batches to reduce the effort spent on changeovers. Select all outcomes that are consistent with the material.
- A
Setup effort per unit may decrease.
- B
Total inventory must decrease.
- C
Inventory may increase, and other jobs may be delayed.
- D
Every job will necessarily be delivered faster.