Q&A Hero

Q: Compare and contrast the factor-rating system and the transportation method of linear programming as used in facility location decisions.

Q: The use of power to influence decision-making is most effective when power is ________. A) based on nonsubstitutability B) unobtrusive C) based on expertise D) referent

Q: What are the two "hidden costs" that are often overlooked in determining the total cost of a facility location decision?

Q: The text describes 14 "Issues in facility location". Name as many of these as you can.

Q: Co-optation is a way to ________. A) empower employees B) manage coalitions C) decrease nonsubstitutability D) decentralize authority

Q: What is the name for a group of countries that have agreed on a set of special arrangements governing the buying and selling of goods between member countries?

Q: Manager A supports Manager B on an issue of interest to B in return for B supporting A an issue of interest to A. These managers are ________. A) decreasing nonsubstitutability B) creating a situation that is most likely to result in conflict C) creating a coalition D) attempting to obtain referent power

Q: Three distribution centers, A, B and C, are located at the following (X, Y) coordinates: A, (20, 130); B, (180, 0); and C, (200, 200). A factory is to be constructed to distribute a new product through these warehouses. The expected annual volumes expected to be shipped through the three warehouses is forecast to be 20 million units through A, 100 million through B and 50 million through C. Using the centroid method, approximately what should the coordinates of the new factory be?

Q: A coalition is ________. A) often built around trade-offs B) a task relationship C) a way to delegate authority D) formed to decrease centrality

Q: What is a closed area or compound into which foreign goods can be brought without being subject to the necessary customs requirements?

Q: A subunit within an organization can increase its power by ________. A) building and managing coalitions B) decreasing its nonsubstitutability C) empowering its members D) decreasing its centrality

Q: Name four methods of quantitative analysis that are useful in making the facility location decision.

Q: Jane works for a manufacturing plant that has been under pressure to reduce pollution. Jane increased her knowledge of environmental laws in order to help the company follow waste disposal laws. Which of the following political tactics is being used by Jane? A) co-optation B) increasing control over resources C) increasing nonsubstitutability D) controlling the agenda

Q: Very few products are moved without at least part of their journey being by which mode of transportation? A. Highway B. Rail C. Water D. Pipeline E. Air

Q: A manager obtains an assignment that brings him into contact with many managers and many functions so that he can obtain information that can be used to make him and his function nonsubstitutable. Which of the following political tactics is being used by this manager? A) using unobtrusive power B) creating a coalition C) controlling the agenda D) increasing centrality

Q: What transportation mode has very high initial investment costs but gives a very low cost per mile for products that are highly specialized and require no packaging? A. Highway B. Rail C. Water D. Pipeline E. Air

Q: Organizational politics consists of activities taken within organizations to ________. A) decentralize the decision-making authority B) improve the ability of the organization to innovate C) acquire, develop, and use power D) implement total quality management

Q: A company wants to determine where they should locate a new warehouse. They have two existing production plants (i.e., Plant A and Plant B) that will ship units of a product to this warehouse. Plant A is located at the (X, Y) coordinates of (50, 100) and will have volume of shipping of 250 units a day. Plant B is located at the (X, Y) coordinates of (150, 200) and will have a volume of shipping of 150 units a day. Using the centroid method, which of the following are the X and Y coordinates for the new plant location? A. (81,117) B. (88, 138) C. (117,102) D. (76,123) E. X and Y coordinates can not be computed from the data given

Q: Which of the following is an example of unobtrusive power? A) the power possessed by a CEO of a company B) the power possessed by a subunit within a company because of its specialized knowledge C) the power possessed by a dominant coalition to influence the decision-making process in its favor D) the power possessed by a person because of his or her ability to control the distribution of resources

Q: Plant A is located at the (X, Y) coordinates of (200, 500) and has a volume of shipping of 400 units a day. Plant B is located at the (X, Y) coordinates of (300, 100) and has a volume of shipping of 300 units a day. Using the centroid method, which of the following is the X coordinate for the new plant location? A. About 205 B. About 227 C. About 243 D. About 389 E. X coordinate can not be computed from the data given

Q: The power possessed by a set of managers who form a "partnership" and use their combined power secretively to influence the decision-making process in ways that favor their interests is called ________ power. A) referent B) unobtrusive C) expert D) nonsubstitutable

Q: Plant A is located at the (X, Y) coordinates of (100, 200) and has a volume of shipping of 500 units a day. Plant B is located at the (X, Y) coordinates of (150, 400) and has a volume of shipping of 200 units a day. Using the centroid method, which of the following is the X coordinate for the new plant location? A. About 100 B. About 115 C. About 130 D. About 150 E. X coordinate can not be computed from the data given

Q: Which of the following terms refers to the power possessed by the people and subunits that control the flow of resources through an organization's production system? A) centrality B) co-optation C) nonsubstitutability D) referent power

Q: The centroid method for plant location uses which of the following data? A. Volume of goods to be shipped between existing points B. Inbound transportation costs C. Transport times between facilities D. Correlation matrix of existing facilities E. Probabilities and payoffs

Q: Rick is the only person in the finance department who knows how to fix the computer when it breaks down. The source of Rick's power is ________. A) control over resources B) control over the premises of decision-making C) authority D) nonsubstitutability

Q: In which of the following situations should we not use the transportation method of linear programming? A. To find a new site location for a plant B. To minimize costs of shipping "n" units to "m" destinations C. To maximize profits of shipping "n" units to "m" destinations D. To determine which corner of a street intersection to locate a retail service facility E. To locate a finished goods distribution warehouse

Q: "Gatekeepers" have power stemming from ________. A) authority B) expertise C) nonsubstitutability D) control over information

Q: Which of the following terms refers to the deliberate decentralization of authority to encourage subordinates to assume responsibility for organizational activities? A) social loafing B) empowerment C) co-optation D) attitudinal structuring

Q: Which of the following is a plant location methodology good for locating a single facility within a set of existing facilities based in distances and volumes of goods shipped? A. Factor-rating systems B. Centroid method C. Decision trees D. Linear programming E. Regression analysis

Q: What is the principle of "postponement" and why is it considered the key to mass customization?

Q: Which of the following statements about authority is true? A) When authority is centralized, there is generally more scope for people to engage in behaviors aimed at gaining power. B) Once the authority is decentralized to a subordinate by a manager, then the manager does not bear the consequences of the subordinate's failure. C) When authority is centralized in an organization, employees take more responsibilities and are more likely to initiate new actions. D) Decentralizing authority to a subordinate does not necessarily reduce a manager's authority.

Q: Which of the following is most likely to occur in an organization with centralized authority? A) Employees take up more responsibilities. B) Subordinates compete to ingratiate themselves with top managers for receiving favor. C) Several coalitions are formed within the organization. D) Employees are empowered to make decisions.

Q: What is "design for logistics"?

Q: What are the main distinctions between service supply chains and manufacturing supply chains?

Q: Which of the following types of power is most likely to be possessed by a CEO of an organization? A) nonsubstitutability B) referent power C) authority D) expert power

Q: If inventory turnover is 20 and cost of goods sold is $100,000, what is the average aggregate inventory value?

Q: Which of the following is most likely to determine the kind of decisions that will be selected to resolve an organizational conflict? A) standard practices followed in the industry in which the organization operates B) possession of organizational power C) the marketing strategy followed by the organization D) the performance evaluation procedures used by the organization

Q: If the weeks of supply is 10 and the average aggregate inventory value is $1,000,000, what is the cost of goods sold?

Q: Which of the following is one of the ways of managing conflict through attitude change? A) conducting employee wellness programs B) rotating employees among subunits C) using the 360 degrees appraisal procedure for performance evaluation D) centralizing decision-making authority

Q: If the average aggregate inventory value is $4,000 and the cost of goods sold is $104,000, what is the weeks of supply?

Q: Attitudinal structuring is a process ________. A) of firing people who are trying to thwart organizational goals B) designed to encourage the perception that conflicting parties are on the same side C) of changing the structure of the organization so as to remove the source of conflict D) that involves a third-party negotiator to moderate a dispute between subunits or stakeholders

Q: In Hau Lee's uncertainty framework to classify supply chains, a supply chain that combines the strengths of a "risk-hedging" and a "responsive" supply chain is called what?

Q: Which of the following actions taken by an organization is most likely to avoid organizational conflict? A) increasing the level of integration B) making the hierarchy of authority taller by introducing additional levels of authority C) using centralized decision-making D) increasing the level of horizontal differentiation

Q: Name the four types of supply chain in Hau Lee's uncertainty framework for classifying supply chains.

Q: The method an organization chooses to manage conflict depends on the ________. A) tallness of the organizational hierarchy B) source of the problem C) property rights given to the employees D) extent of horizontal differentiation within the organization

Q: What is the effect of the lack of synchronization among supply-chain members called?

Q: A manufacturing department refuses to cooperate with a sales department because they had a big fight last month. Based on this information, the conflict between the two departments is at what stage of the Pondy's model of organizational conflict? A) conflict aftermath B) manifest conflict C) felt conflict D) perceived conflict

Q: Name the transportation modes discussed in the textbook.

Q: Which of the following is most likely to occur once the conflict reaches the manifest stage? A) equal distribution for resources among the conflicting subunits B) decentralization of decision-making C) increase in vertical and horizontal differentiation D) communication breakdown

Q: Which of the following statements is true regarding the "manifest conflict" stage of Pondy's model? A) This stage comes immediately after the "latent conflict" stage. B) At this stage conflict is only perceived and there exists no outright conflict. C) The "felt conflict" stage comes immediately after this stage. D) Passive aggression occurs at this stage.

Q: Which of the following is one of the strategic characteristics to consider when deciding how supplier relationships should be structured on the continuum between vertical integration (do not outsource) to arm's length relationships (outsource)? A. Cost B. Location C. Investment D. Coordination E. Investment

Q: Which of the following is not an improvement-driven reason to outsource? A. Improve risk management B. Increase commitment in a noncore area C. Acquire innovative ideas D. Improve control E. Obtain expertise, skills and technologies

Q: In the ________ stage of Pondy's model, one subunit gets back at another subunit by attempting to thwart its goals. A) felt conflict B) perceived conflict C) manifest conflict D) conflict aftermath

Q: Which of the following stages in Pondy's model of organizational conflict comes immediately after the "felt conflict" stage? A) latent conflict B) perceived conflict C) conflict aftermath D) manifest conflict

Q: One of the reasons that decision making related to global sourcing is so very complex is which of the following? A. Multiple languages B. Cultural differences C. New currencies, like the Euro D. Distance between materials, labor and markets E. Powerful new markets

Q: A production manager agrees in a meeting to modify an order for the sales department, but then ignores the request later because of the ongoing conflict between the two departments. This passive aggressive type of behavior occurs in which stage of Pondy's model of organizational conflict? A) expressed conflict B) perceived conflict C) manifest conflict D) conflict aftermath

Q: Which of the following of Fisher's product categories includes fashionable clothing, personal computers and other products that typically have a very brief life cycle? A. Functional products B. Dysfunctional products C. Innovative products D. Bullwhip products E. Low value-density products

Q: Which of the following is the third stage of Pondy's model of organizational conflict? A) latent conflict B) perceived conflict C) felt conflict D) manifest conflict

Q: Which of the following functional areas in an organization do not directly support an effective mass customization program? A. Human resources B. Marketing C. Finance D. Manufacturing E. Distribution

Q: In which stage of Pondy's model do subunits respond emotionally to each other, and develop polarized attitudes such as "us versus them" that puts the blame for the conflict squarely on the other subunit? A) latent conflict B) perceived conflict C) felt conflict D) conflict aftermath

Q: Which of the following terms best describes the ability of a company to deliver highly customized products and services to different customers around the world? A. Customization B. High customization C. Mass customization D. Global sourcing E. Outsourcing

Q: Which of the following statements is true regarding the "perceived conflict" stage of Pondy's model of organizational conflict? A) It is the first stage in Pondy's model of organizational conflict. B) This stage comes immediately after the "manifest conflict" stage. C) At this stage conflict is resolved in a way that leaves subunits feeling cooperative. D) The "felt conflict" stage comes immediately after this stage.

Q: Highly specialized, low cost per mile, product requiring no packaging and very high initial investment costs are characteristics of which transportation mode? A. Highway B. Rail C. Water D. Pipeline E. Air

Q: A production department in a company has been experiencing several production problems for the past few months. When production managers investigate, they discover that materials management always buys inputs from the lowest-cost sources of supply and makes no attempt to develop the kind of long-term relationships with suppliers that can raise the quality and reliability of inputs. At which stage of Pondy's model of organizational conflict is the company in? A) latent conflict B) perceived conflict C) conflict aftermath D) manifest conflict

Q: Which is the most challenging kind of supply chain to manage according to Hau Lee? A. Agile supply chain B. Efficient supply chain C. Risk-hedging supply chain D. Erratic supply chain E. Responsive supply chain

Q: When considering outsourcing, what should firms be sure to avoid? A. Losing control of non-core activities which don't distinguish the firm B. Allowing outsourcing to develop into a substitute for innovation C. Giving the outsourcing partner the opportunity to become a strong competitor D. Allowing employees transferred to the outsourcing partner to rejoin the firm E. Adverse corporate tax implications of asset transfers to the outsourcing partner

Q: In which stage of Pondy's model do subunits begin to try and define why conflict is occurring and analyzing the events that led up to the conflict? A) latent conflict B) perceived conflict C) manifest conflict D) conflict aftermath

Q: Which of the following is not an improvement-driven reason for outsourcing? A. Improve management and control B. Enhance effectiveness by focusing on what you do best C. Improve risk management D. Obtain expertise, skills and technologies not otherwise available E. Acquire innovative ideas

Q: In Pondy's model of organizational conflict, which of the following stages comes immediately after "latent conflict"? A) felt conflict B) perceived conflict C) manifest conflict D) conflict aftermath

Q: In which of the following situations is the potential for conflict is highest in an organization? A) The organization has low vertical and horizontal differentiation. B) Subunits in the organization are highly interdependent. C) Resources are assigned to subunits by top-management so there is no competition among subunits for resources. D) Subunits in the organization have similar goals.

Q: Which of the following is an improvement-driven reason for outsourcing? A. Improve operating performance B. Give employees a stronger career path C. Generate cash by transferring assets to the provider D. Turn fixed costs into variable costs E. Commercially exploit existing skills

Q: In an organization, people in line functions view themselves as the critical organizational resource and people in staff functions as secondary players. Acting on this belief, the line function constantly uses its supposedly lofty status as the producer of goods and services to justify putting its interests ahead of the other functions' interests. Based on this information, the organization is at which stage of Pondy's model of organizational conflict? A) manifest conflict B) conflict aftermath C) felt conflict D) latent conflict

Q: Which of the following is an organizationally-driven reason for outsourcing? A. Improve operating performance B. Give employees a stronger career path C. Generate cash by transferring assets to the provider D. Turn fixed costs into variable costs E. Transform the organization

Q: According to Thompson's model of technology, which of the following types of task interdependence among subunits is most likely to lead to a conflict? A) sequential task interdependence B) associative task interdependence C) pooled task interdependence D) reciprocal task interdependence

Q: Which of the following is an organizationally-driven reason for outsourcing? A. Enhance effectiveness by focusing on what you do best B. Turn fixed costs into variable costs C. Generate cash by transferring assets to the provider D. Give employees a stronger career path E. None of the above

Q: Which of the following is an example of a line function in an organization that produces toys for children? A) R&D B) manufacturing C) accounting D) purchasing

Q: In Outsourcing which of the following internal activities and decision responsibilities can not be transferred to outside contractors? A. Activities involving people B. Activities involving facilities C. Activities involving equipment D. Activities involving shareholders E. Activities involving technology

Q: Which of the following statements is true regarding the "latent conflict" stage of Pondy's model of organizational conflict? A) During this stage there exists a potential for conflict. B) The stage of "manifest conflict" comes immediately after this stage. C) Fighting and open aggression are common during this stage. D) This stage comes immediately after the stage of "felt conflict."

Q: At which of the following stages of Pondy's organizational conflict model there exists no outright conflict? A) manifest conflict B) perceived conflict C) latent conflict D) felt conflict

Q: The effect of the lack of synchronization among supply-chain members is referred to as which of the following? A. Forward buying B. Continuous replenishment C. Bullwhip effect D. Metcalf's Law E. Being out of step