Question 1

After describing the ABC Inventory Classification System, give examples of each category for a food item common to a restaurant.

Accepted Answer

The ABC system classifies inventory items into three categories based on dollar velocity (purchase price multiplied by annual quantity consumed). The purpose of the ABC system is to focus managerial attention on the most important items.
Category A includes the few high-dollar items that account for the largest percentage of total dollars or are otherwise critical in the production process, thereby deserving close control. Items in this category for fine dining restaurant would be the higher priced entrees (steaks, seafood) and any liquor and wine if it is served.
Category B items are less costly but deserve moderate managerial attention because they still make up a significant share of the firm's total investment. Examples would be less expensive entrees (chicken, side items) and side items such as vegetables.
Category C contains low-cost or non-critical items which do not justify close control. Items would be baking ingredients such as flour, salt and most spices.

Question 2

The ABC method of inventory management is founded on the notion that

Accepted Answer

A)  some inputs are more valuable or more critical to the firm's operations than others. 
B)  inventory costs should be cut to an absolute minimum by reducing inventory on hand. 
C)  a firm should know its economic order quantity at all times. 
D)  the cost of placing an order is a fixed cost. 
A)  some inputs are more valuable or more critical to the firm's operations than others. 
B)  inventory costs should be cut to an absolute minimum by reducing inventory on hand. 
C)  a firm should know its economic order quantity at all times. 
D)  the cost of placing an order is a fixed cost. A

Question 3

Match the term with its definition. Some terms may not be used.
-The planning and control of a conversion process that includes turning inputs into outputs that customers desire

Accepted Answer

A) Acceptance sampling 
B) Attributes 
C) Bottleneck 
D) Constraint 
E) Inspection
F)ISO 9000
G)Operations
H)Operations management
I)Poka-Yoke
J)Quality
K)Total quality management
L)Variables 
A) Acceptance sampling 
B) Attributes 
C) Bottleneck 
D) Constraint 
E) Inspection
F)ISO 9000
G)Operations
H)Operations management
I)Poka-Yoke
J)Quality
K)Total quality management
L)Variables H

Question 4

The buying of products or services from a third party to manage a firm's functions is known as

Accepted Answer

A)  asset efficiency. 
B)  diversification of supplies. 
C)  importing. 
D)  outsourcing. 
A)  asset efficiency. 
B)  diversification of supplies. 
C)  importing. 
D)  outsourcing.

Question 5

Technology can adequately replace the human touch when the needs of the customer involve large amounts of data.

Accepted Answer

A) True 
 B)False

Question 6

Match the term with its definition. Some terms may not be used.
-The examination of a part or a product to determine whether it meets quality standards

Accepted Answer

A) Acceptance sampling 
B) Attributes 
C) Bottleneck 
D) Constraint 
E) Inspection
F)ISO 9000
G)Operations
H)Operations management
I)Poka-Yoke
J)Quality
K)Total quality management
L)Variables 
A) Acceptance sampling 
B) Attributes 
C) Bottleneck 
D) Constraint 
E) Inspection
F)ISO 9000
G)Operations
H)Operations management
I)Poka-Yoke
J)Quality
K)Total quality management
L)Variables

Question 7

Match the term with its definition. Some terms may not be used.
-Manufacturing operations that usually involve computer-controlled equipment that can turn out products in smaller or more flexible quantities

Accepted Answer

A) Continuous manufacturing 
B) Flexible manufacturing systems 
C) Job shops 
D) Lean production 
E) Make-or-buy decisions
F)Operations
G)Outsourcing
H)Poka-yoke
I)Project manufacturing
J)Repetitive manufacturing
K)Supply Chain Operations Reference model
L)Synchronous manufacturing 
A) Continuous manufacturing 
B) Flexible manufacturing systems 
C) Job shops 
D) Lean production 
E) Make-or-buy decisions
F)Operations
G)Outsourcing
H)Poka-yoke
I)Project manufacturing
J)Repetitive manufacturing
K)Supply Chain Operations Reference model
L)Synchronous manufacturing

Question 8

Job shops are best suited for

Accepted Answer

A)  short production runs. 
B)  long production runs. 
C)  special-purpose equipment. 
D)  standardized products. 
A)  short production runs. 
B)  long production runs. 
C)  special-purpose equipment. 
D)  standardized products.

Question 9

The most important reason why a small business should build good relationships with large suppliers is

Accepted Answer

A)  forecasting can be made easier with the suppliers input. 
B)  it will make the small business stand out from other firms buying from the supplier. 
C)  the need for the small business to have prices as low as possible on purchases. 
D)  the relationship can make the small business more competitive. 
A)  forecasting can be made easier with the suppliers input. 
B)  it will make the small business stand out from other firms buying from the supplier. 
C)  the need for the small business to have prices as low as possible on purchases. 
D)  the relationship can make the small business more competitive.

Question 10

Match the term with its definition. Some terms may not be used.
-A proactive approach to quality management that seeks to mistake-proof a firm's operations

Accepted Answer

A) Acceptance sampling 
B) Attributes 
C) Bottleneck 
D) Constraint 
E) Inspection
F)ISO 9000
G)Operations
H)Operations management
I)Poka-Yoke
J)Quality
K)Total quality management
L)Variables 
A) Acceptance sampling 
B) Attributes 
C) Bottleneck 
D) Constraint 
E) Inspection
F)ISO 9000
G)Operations
H)Operations management
I)Poka-Yoke
J)Quality
K)Total quality management
L)Variables

Question 11

A service firm does not have an operations process.

Accepted Answer

A) True 
 B)False

Question 12

A demand management strategy is the use of pagers by restaurants to notify persons on the waiting list that a table is ready.

Accepted Answer

A) True 
 B)False

Question 13

By conforming to ISO 9000, a small manufacturing firm could achieve improvements in

Accepted Answer

A)  sales to Wal-Mart. 
B)  export sales. 
C)  product design. 
D)  quality of incoming raw materials. 
A)  sales to Wal-Mart. 
B)  export sales. 
C)  product design. 
D)  quality of incoming raw materials.

Question 14

Event management companies use project manufacturing.

Accepted Answer

A) True 
 B)False

Question 15

Flexible management systems uses machine automation to cut manufacturing costs while satisfying customer needs.

Accepted Answer

A) True 
 B)False

Question 16

Repetitive operations in manufacturing use

Accepted Answer

A)  general-purpose machines. 
B)  job-order schedules. 
C)  highly specialized equipment. 
D)  short production runs. 
A)  general-purpose machines. 
B)  job-order schedules. 
C)  highly specialized equipment. 
D)  short production runs.

Question 17

Martha knows that to be successful, everything her company does must create customer

Accepted Answer

A)  premiums. 
B)  products. 
C)  services 
D)  value. 
A)  premiums. 
B)  products. 
C)  services 
D)  value.

Question 18

At CPL Manufacturing, the one-millionth product must be identical to the first. The work is automated and accomplished by machines designed expressly to make these products. This type of manufacturing is known as:

Accepted Answer

A)  continuous manufacturing. 
B)  flexible manufacturing. 
C)  project manufacturing. 
D)  repetitive manufacturing. 
A)  continuous manufacturing. 
B)  flexible manufacturing. 
C)  project manufacturing. 
D)  repetitive manufacturing.

Question 19

Obsolescence is a cost of inventory.

Accepted Answer

A) True 
 B)False

Question 20

Match the term with its definition. Some terms may not be used.
-A choice that companies must make when they have the option of making or buying component parts for products they produce

Accepted Answer

A) Continuous manufacturing 
B) Flexible manufacturing systems 
C) Job shops 
D) Lean production 
E) Make-or-buy decisions
F)Operations
G)Outsourcing
H)Poka-yoke
I)Project manufacturing
J)Repetitive manufacturing
K)Supply Chain Operations Reference model
L)Synchronous manufacturing 
A) Continuous manufacturing 
B) Flexible manufacturing systems 
C) Job shops 
D) Lean production 
E) Make-or-buy decisions
F)Operations
G)Outsourcing
H)Poka-yoke
I)Project manufacturing
J)Repetitive manufacturing
K)Supply Chain Operations Reference model
L)Synchronous manufacturing

Exam 21: Managing Operations

After describing the ABC Inventory Classification System, give examples of each category for a food item common to a restaurant.

The ABC method of inventory management is founded on the notion that

Match the term with its definition. Some terms may not be used. -The planning and control of a conversion process that includes turning inputs into outputs that customers desire

The buying of products or services from a third party to manage a firm's functions is known as

Technology can adequately replace the human touch when the needs of the customer involve large amounts of data.

Match the term with its definition. Some terms may not be used. -The examination of a part or a product to determine whether it meets quality standards

Match the term with its definition. Some terms may not be used. -Manufacturing operations that usually involve computer-controlled equipment that can turn out products in smaller or more flexible quantities

Job shops are best suited for

The most important reason why a small business should build good relationships with large suppliers is

Match the term with its definition. Some terms may not be used. -A proactive approach to quality management that seeks to mistake-proof a firm's operations

A service firm does not have an operations process.

A demand management strategy is the use of pagers by restaurants to notify persons on the waiting list that a table is ready.

By conforming to ISO 9000, a small manufacturing firm could achieve improvements in

Event management companies use project manufacturing.

Flexible management systems uses machine automation to cut manufacturing costs while satisfying customer needs.

Repetitive operations in manufacturing use

Martha knows that to be successful, everything her company does must create customer

At CPL Manufacturing, the one-millionth product must be identical to the first. The work is automated and accomplished by machines designed expressly to make these products. This type of manufacturing is known as:

Obsolescence is a cost of inventory.

Match the term with its definition. Some terms may not be used. -A choice that companies must make when they have the option of making or buying component parts for products they produce

The Entrepreneurial Life

Integrity and Ethics: Foundations for Success in Small Business

Starting a Small Business

Franchises and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Organizational Plan: Teams, Legal Structures, Alliances, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product Development and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Business

Professional Management and the Small Business

Managing Human Resources

Managing the Firms Assets

Managing Risk in the Small Business

A: Managing Risk in the Small Business

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