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MOCK TEST 1 (December 2013)

MOCK TEST 1 MGT2110/MGT2220 Operations Management

Instructions:
Answer all questions. Your time is limited to 40 minutes. You are NOT allowed to use your
books, notes, or talk to other students. Make sure your mobile phone is turned off. You are
NOT allowed to use your mobile phone as a calculator. Read the questions carefully and
mark your answers clearly by ticking the appropriate box in the marking sheet on the last
page (page 5). You must return all test papers to your tutor. This test is 5 pages long.
1. Operations Management includes all of these activities except:
a. Scheduling work
b. Maintaining quality
c. Assessing consumer wants and needs
d. Managing the supply chain
e. Managing inventories
2. The operations function is that part of every business organization that produces
products and/or delivers services
a. True
b. False
3. The "father of scientific management" was
a. Gilbreth
b. Hawthorne
c. Taylor
d. Ford
e. Pareto
4. A low price strategy often requires a high volume of standardized goods
a. True
b. False
5. An order winner is
a. An employee who got the order
b. The opposite of an order loser
c. A superior factor
d. The biggest order
6. Which one of the following will always lead to an increase in productivity?
a. Increase inputs and increase outputs
b. Increase outputs and hold inputs constant
c. Decrease both inputs and outputs
7. It is necessary to monitor forecast errors to check for nonrandom patterns in
forecast errors
a. True
b. False

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MOCK TEST 1 (December 2013)

8. Which exponential smoothing factor would produce the most smoothing?

a. 1.0
b. 0.3
c. 0.1
d. 0.0
9. Which would not generally be considered as a feature common to all forecasts?
a. Assumption of a stable underlying causal system
b. Actual results will differ somewhat from predicted values
c. Historical data are available on which to base the forecast
d. Forecasts for groups of items tend to be more accurate than forecasts for
individual items
e. Accuracy decreases as the time horizon increases
10. Manufacturability is not a key consideration in product design
a. True
b. False
11. Which of the following is not a fixed cost?
a. land rent
b. materials
c. overhead
d. taxes
e. insurance
12. Which one of these is not a reason for diseconomies of scale?
a. Fixed costs are spread over more units.
b. Distribution costs increase
c. Complexity increases costs
d. Inflexibility may be an issue
13. The breakeven point occurs at an output where total cost and total profit are equal
a. True
b. False
14. Which system has the least flexibility?
a. job shop
b. batch
c. assembly
d. continuous
15. Which type of operation would be most closely associated with division of labour?
a. job shop
b. batch
c. assembly
d. continuous

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MOCK TEST 1 (December 2013)

16. Which one does not relate to designing process layouts?

a. Minimizing transportation costs
b. Minimizing distance travelled
c. Focusing on closeness ratings
d. Equalizing times of work stations
17. Group technology is often related to which one of the following?
a. cellular manufacturing
b. product layout
c. combination layouts
d. none of these
18. Ergonomics is closely related to time study.
a. True
b. False
19. The technique most known for its use of a stop watch is:
a. work sampling
b. time study
c. methods analysis
d. motion study
20. An analyst who wanted to estimate the percentage of time a machine is idle would
probably use this method
a. work sampling
b. time study
c. predetermined time standards
d. methods analysis
21. A standard time is equal to the normal time adjusted for the
a. performance rating
b. allowance factor
c. the learning effect
d. the cost of living index
e. time in rank
22. Which statement about location decisions is not true?
a. Mistakes can be difficult to overcome
b. The goal is to find the optimal location
c. Both fixed and variable costs can be affected
d. Decisions are often long term
23. Which tool provides demographic information for location analysis is:
a. factor rating method
b. geographic information system
c. center of gravity method
d. transportation model

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MOCK TEST 1 (December 2013)

24. What is the breakeven point for the following systems?

Unit A: Fixed cost = 3,000,
Unit B: Fixed cost = 2,500,
Unit A: Variable cost = 100/unit, Unit B: Variable cost = 500
a. 0.25
b. 1.25
c. 12.5
d. 125
25. Which of the following is NOT a factor in the country location decision?
a. government rules
b. labour availability
c. zoning restrictions
d. location of markets

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MOCK TEST 1 (December 2013)

ANSWER SHEET
Please provide the
correct student number
or you will not receive
marks!!!

Student number
Student name

Please tick the correct answer.

You can choose only one answer per question.
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number
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