Managerial Decision Making
Chapter Exam Questions
Course Introduction
Managerial Decision Making explores the processes and techniques by which managers analyze information, evaluate alternatives, and make effective decisions within organizations. The course covers concepts from behavioral economics, psychology, and traditional management theory, focusing on how cognitive biases, risk assessment, data analysis, and group dynamics influence decision outcomes. Students will engage with real-world case studies, simulations, and analytical frameworks to develop practical skills in problem-solving, strategic thinking, and ethical reasoning. By the end of the course, participants will be equipped to approach complex managerial challenges with confidence and sound judgment.
Recommended Textbook
Production and Operations Management 2nd Edition by Martin Starr
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Page 2
Chapter 1: Product Line Planning and the Systems Approach
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Sample Questions
Q1) Service industries employ an increasing percent of the workforce.
A)True
B)False
Answer: True
Q2) Indirect costs that are part of overhead costs must be allocated to units of output by some formula.A familiar such cost is
A)variable cost.
B)direct cost.
C)total cost.
D)depreciation.
Answer: D
Q3) Each company's input-output model indirectly and directly reflects the impact of the competitors' input-output models.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Productivity and Strategic Planning
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Sample Questions
Q1) Product life is becoming longer.
A)True
B)False
Answer: False
Q2) The elasticity-productivity tie between operations management and marketing is best described by the following:
A)marketing tries to control demand volume through pricing.
B)to be competitive it is necessary to find ways to match price decreases offered by competitors.
C)demand volume falls as price rises,but is also relative to what prices competitors charge.
D)all of the above
Answer: D
Q3) The theory of production consists of _____ established steps and a potential _____ one.
A)four;fifth
B)six;seventh
C)seven;eighth
D)two;third
Answer: B
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Chapter 3: Demand Creation and Predictive Planning
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Sample Questions
Q1) Why is pooling of information and the use of multiple forecasts recommended?
Answer: Methods for pooling information to provide stronger forecasts are recommended and should be explored.It is critical that all parties share their forecasts as much as possible and try to find ways to combine them.Usually stronger forecasts can be obtained if both data and experience are pooled.One of the keys to success in combining forecasts is trial and error.Averaging of forecast results is also used to predict demand.
Q2) When actual demand results are known,the various forecasting methods are evaluated again,and the one that is least successful is chosen to make the prediction for the next period.
A)True
B)False
Answer: False
Q3) _____ can be used to evaluate how well different forecasting techniques are doing.
A)Straight methods
B)Formal methods
C)Informal methods
D)Delphi methods
Answer: B
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Chapter 4: Understanding Quality: ITS Management and Strategic Importance
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Sample Questions
Q1) The term _____ is defined as groups with teamwork assignments for quality achievement.
A)action learning
B)house of quality
C)quality circles
D)teamwork quality
Q2) Sometimes quality improvements result in _____ in court costs for claims of harm caused by malfunctions and other types of liability.
A)no change
B)stability
C)increases
D)decreases
Q3) Nonfunctional qualities play a major role in the consumer's judgment of quality.
A)True
B)False
Q4) It is not possible for organizations to distinguish themselves from one another by the care that they show and the fairness of their service policy.
A)True
B)False
Page 6
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Chapter 5: Process Configuration Strategies
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Sample Questions
Q1) _____ will depend upon which work configurations are best suited for the expected volumes and varieties of products.
A)Charting the process
B)Choosing the process technology
C)Alternative means and ends
D)The number of steps in the synthetic process
Q2) Simulation modeling is used for production scheduling and inventory control.
A)True
B)False
Q3) The six fundamental kinds of work configurations include
A)job shops.
B)flow shops.
C)continuous flow processes.
D)all of the above
Q4) _____ are "pretend" runs of what might occur using models of processes.
A)Projects
B)Simulations
C)Processes
D)Work configurations
Q5) What is a custom shop? Why does a custom shop use general-purpose equipment?
Page 7
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Chapter 6: Process Analysis and Redesign
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Q1) Continuous improvement of processes is an excellent goal for P/OM managers.It is a function of P/OM that is valued by all other functions of the organization.
A)True
B)False
Q2) The length of time required for each unit of the order to go from the start of the process to its finish would be calculated and shown as _____ time.
A)process
B)cycle
C)startup
D)end
Q3) The _____ system for cutting changeover items is based on the recognition that there are setup steps that can be done without shutting the machine down.
A)RM
B)TPM
C)SMED
D)PDM
Q4) Why is the idea of reengineering appealing?
Q5) What factors are vital to achieving optimal process management?
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Chapter 7: Quality Assurance
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Sample Questions
Q1) The appropriate _____ is to abhor defectives and do as much as feasible to prevent them from occurring.
A)zero-error mind-set
B)process for zed defectives
C)Olympic perspective
D)compensation for defectives
Q2) A histogram is created for various datapoints (values of x and y) that have been obtained by experimentation,observation,or survey.It is assumed that these data points are correlated.
A)True
B)False
Q3) The R-chart shows the percent defective in successive samples.
A)True
B)False
Q4) Paint standards are set high by automobile manufacturers to reflect the demanding attitude of _____.
A)suppliers
B)other manufacturers
C)marketing
D)customers
Page 9
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Chapter 8: Management of Technology Mot
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Sample Questions
Q1) Packaging experts have expressed concern that a few simple tests are interpreted as being good indicators of package integrity.
A)True
B)False
Q2) _____ are evolving from mechanical devices that perform complex,repetitive tasks into computer-controlled systems with broad sensory abilities,discernment,and forms of intelligence.
A)Neural networks
B)Robots
C)Cybernetic organisms
D)Cyborgs
Q3) _____ is the generic name for all kinds of computer-controlled robotic and machine systems that can change over to offer a menu of products.
A)FMS
B)FOS
C)FSS
D)FPS
Q4) What are neural networks and why are they being used?
Q5) How is technology defined from the P/OM perspective?
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Chapter 9: Teamwork Planning Requires Job Design
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Sample Questions
Q1) The performance of P/OM systems is not dependent on the participation of people.
A)True
B)False
Q2) It is straightforward to predetermine the costs of all of the following factors except A)materials consumed.
B)energy utilized.
C)overhead expended.
D)space needed.
Q3) Computers determine and calculate the intervals between successive steps in the process just as if a stopwatch were at work in the hands of the old-fashioned time study observer.
A)True
B)False
Q4) Many Japanese companies in the United States regularly screen for team player suitability when hiring workers.
A)True
B)False
Q5) How can training program effectiveness be determined?
Q6) What are the advantages of computer-based training?
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Chapter 10: Supply Chain Capacity Planning
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Sample Questions
Q1) The probability that actual supply chain demand exceeds average demand is estimated to be 5 percent of the year (365 days) or 18.25 summer days.What total costs are associated with Cnp,when it is determined that the loss of goodwill in the community averages $30,000 per incident? The events provoking such costs include brownouts,power failures,etc.
A)$500,547
B)$547,500
C)$500,000
D)$365,000
Q2) Discuss the long- and short-term issues related to CRP.
Q3) Capacity management relates to how the equipment,people,and materials of the existing system are used.
A)True
B)False
Q4) Learning curves
A)describe how repeated practice decreases the time required to do a job.
B)captures the benefit of repetition and experience.
C)are expressed in quantitative terms for employees doing the same job routinely.
D)all of the above
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Chapter 11: Facilities Planning: Location and Layout
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Sample Questions
Q1) Technological information and knowledge of real process details are required to reach good decisions.
A)True
B)False
Q2) Which is not an intangible cost?
A)community attitude
B)taxes per year
C)ease of relocating
D)product quality as a function of operators' skills and morale
Q3) Using the examples in the text,the notation for the transportation matrix entries are: The costs of transporting finished goods from factory plants _____ to markets _____ appear in the appropriate cells.
A)A;B
B)i;j
C)j;i
D)B;A
Q4) Job shops entail large investments in the design of the process.
A)True
B)False
Q5) List two key roles of P/OM as it applies to facilities management.
Page 13
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Chapter 12: Materials Management Impacts All Supply
Chain Participants
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Sample Questions
Q1) Explain cross-docking.
Q2) _____ has become a global system.
A)Freshness dating
B)EDI use
C)Out-sourcing
D)Invoicing
Q3) _____ provide a useful history of _____.
A)Purchasing records;discounts obtained
B)Suppliers records;days of inventory (DOI)
C)Accounting records;inventory turns
D)Quality control records;purchase prices
E)Legal records;ethical issues
Q4) In bidding,steps must be taken to ensure that quality is not compromised by price considerations.
A)True
B)False
Q5) Name some of activities accomplished by the purchasing mission.
Q6) What happens to large unsold inventories?
Q8) What are Purchasing Records? Page 14
Q7) Explain analytic processes.How are they different from synthetic processes?
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Page 15
Chapter 13: Aggregate Planning to Balance Supply and Demand
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Sample Questions
Q1) How many distinct levels are found in the production planning process?
A)2
B)3
C)4
D)5
Q2) Productivity rate and production output rate are not equivalent terms.
A)True
B)False
Q3) By varying the size of the workforce,production output can be made to match demand if facilities and equipment allow.
A)True
B)False
Q4) The specific purpose of AP is to decide
A)when to schedule work.
B)under what conditions to schedule work.
C)what to forecast for demand.
D)both a and b
Q5) Explain the Fundamental Theorem of Linear Programming.
Q7) Define Standard Units. Page 16
Q6) What does a transportation matrix represent?
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Page 17
Chapter 14: Inventory Management for Smooth and Continuous Demand Patterns
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Sample Questions
Q1) Accepting discounts by buying at least a certain amount of material involves _____ costs that may make taking the discount _____.The analysis of total costs with and without the discount is essential.
A)extra;profitable
B)extra;unprofitable
C)less;profitable
D)less;unprofitable
Q2) There are two parts in the construction of the reorder point.From zero stock to the mean of the lead time distribution is the left hand side of the normal distribution of demand in the lead time period.The right hand side of the lead time bell shape curve is the buffer stock.
A)True
B)False
Q3) Accept a quantity discount only when it _____ the total costs.
A)raises
B)lowers
C)keeps constant
D)either a or b
Q4) Explain vendor releasing agreements.
Q5) Can discounts have a cost? Discuss.
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Chapter 15: Material Requirements Planning Mrp for
Sporadic Demand Patterns
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Sample Questions
Q1) _____ can be removed by methods studies.
A)Bottlenecks
B)Purchasing functions
C)Priorities
D)Resource availabilities
Q2) A bill of material is used in conjunction with the master production schedule to determine the items for which purchase requisitions and production orders must be released.
A)True
B)False
Q3) What is the emphasis in a MTS inventory environment.
Q4) What is net change MRP?
Q5) MRP assumptions include:
A)demand is dependent.
B)demand is independent.
C)demand is sporadic and lumpy.
D)both a and c
E)both b and c
Q7) What are the three inputs to MRP? Page 19
Q6) What are the two approaches for updating the MRP files and records?
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Page 20
Chapter 16: Production Scheduling for Manufacturing and Service Operations
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Sample Questions
Q1) _____ are essential to balance out the production differences between making simple and complex product.
A)Standard tolerances
B)Standard hours
C)Standard minutes
D)both b and c
Q2) _____ flow time is composed of the sum of the complete-to-ship times for each job in the group.
A)Mean
B)Job
C)Sequencing
D)Total
Q3) In the V process,work begins upstream at the tributaries and flows downstream to the trunk,encountering various bottlenecks along the way.
A)True
B)False
Q4) What problems are caused by using the LIFO sequencing rule?
Q5) Define production and operations scheduling.
Q6) What kinds of information do Gantt load charts provide?
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Chapter 17: Cycle-Time Management Increases
Productivity
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Sample Questions
Q1) What is perfect balance? What are the constraints to PB?
Q2) Project management has a similar interpretation of cycle time as the flow shop.
A)True
B)False
Q3) Line balancing is the effort to reduce and match excess idle time at the workstations.
A)True
B)False
Q4) Among the varying set of heuristics,which of the following choices is employed to establish preference for choosing the next operation to be assigned to a station?
A)longest operation time,ti
B)largest number of immediate followers
C)random choice of the next operation,i
D)all of the above
Q5) View the painting booth in an automobile-assembly plant as a stochastic,single-channel,input-output system with Poisson arrivals and exponential service times.Determine the values of P and P ,and Pn> for l = 8 per hour and m = 10 per hour.Note: FIFO holds as well as all other assumptions required for the single-channel queuing model.
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Chapter 18: Project Management for New Products and Processes
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Sample Questions
Q1) Change management projects called (a) require planning,designing,building,testing,redesigning,and implementing the system.
A)True
B)False
Q2) The existence of slack is an important condition for resource leveling.
A)True
B)False
Q3) Good project-management methods do which of the following?
A)Keep track of what has been done.
B)Point to activities critical for completion.
C)Expedite activities that are slipping.
D)all of the above
Q4) Define and discuss market research and its relationship to P/OM.
Q5) How are projects defined?
Q6) Explicit knowledge is the description of what must be done to make things work.
A)True
B)False
Q8) How was PERT developed and what was its intended use? Page 23
Q7) Compare and contrast change management projects and control management processes.
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Page 24
Chapter 19: Change Management With Faster Project Completions
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Sample Questions
Q1) If D × V × P > C,then change is
A)likely,assuming that no other factors negatively impact the change.
B)unlikely,assuming there are no possible improvements to this decision.
C)not possible.
D)definite.
Q2) _____ separate(s) regions using boundaries that reflect combined power to deliver improvements.The more the power the greater the circumference.
A)Process improvements
B)Breakpoint business process redesign
C)Efficiency frontiers
D)Reengineering
Q3) Smart benchmarks include
A)breakeven time and volume.
B)product life cycle intervals and delivery speed.
C)return on equity and inventory turns.
D)all of the above
Q4) Self-benchmarking over time provides few insights concerning self-improvement.
A)True
B)False
Q5) What are practical first steps (P) in change management?
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Chapter 20: Sustainability Issues: Environment, Ethics, and Security
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Sample Questions
Q1) Design for automation is when robots are used to decrease assembly costs and bear the brunt of difficult work.With P/OM thoughtful care,the robots can disassemble too.
A)True
B)False
Q2) _____ is meant to connote that efforts are successful to achieve sustainable land and water resources.
A)Greening management
B)Greening
C)Greening the environment
D)Greening maintenance
E)all of the above
Q3) What is remanufacturing? Discuss.
Q4) What are take-back laws?
Q5) In reverse supply chains,the _____ is held accountable to do the best possible thing with the returned materials.
A)consumer
B)manufacturer
C)end-of-use customer
D)all of the above
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