Exam 18: Managing Service and Manufacturing Operations

Economic order quantity (EOQ) formulas are intended for use with dependent demand systems.

Average aggregate inventory for a month can be determined by simply averaging the inventory counts at the end of each business day for that month.

Which of the following is a kind of input that is frequently used when determining partial productivity?

Ziff Corp., a company that manufactures construction materials, uses 10,000 tons of iron per year to make reinforced rods. Its ordering costs are $20 per order and holding costs are $10 per ton. According to the economic order quantity (EOQ) model, approximately how often should the company place a fresh order for iron?

Kraers Inc. keeps an average of 200 finished widgets in inventory each month, and it has sold 2,000 widgets this year. Therefore, the inventory turnover of the company is _____.

__________includes the costs of downtime and lost efficiency that occur when a machine is changed or adjusted to produce a different kind of inventory.

Fit n Fine is a clothing company that is famous for its impressive standards of product quality. Recently, the company introduced a new collection of office wear that failed to grab the attention of its target customer group because of its inconsistent quality. This _____ in quality standard led the company to incur heavy losses.

__________processes are preestablished, occur in a serial manner, and are dedicated to making one type of product.

Customer satisfaction and customer loyalty lead to long-term profits and growth.

Rodney is a manager at Gordon Publications. He meets his subordinates every week to come up with new ideas for articles to publish in the company's weekly magazine. In this scenario, this collaboration is termed _____.

Service recovery sometimes requires service employees to:

In the context of the principles of total quality management (TQM),__________means collaboration between managers and nonmanagers, across business functions, and between companies, customers, and suppliers.

Alaya's Secret is a chain of beauty salons, where part of employees' monthly leaves is granted depending on customer feedback. Two days of leave are granted based on performance and the remaining three days are granted based on customers' feedback on the quality of service. In this case, Alaya's Secret is committed to _____.

Bubbles Bath and Body Shop manufactures cosmetic products. Recently, the company manufactured a collection of new organic soaps and shampoos. One batch of the organic soaps was discarded because they were a bit different in size and could not meet the pre-defined quality standards. Which of the following is the main reason to discard the batch of soaps?

Sundown Communications, a media company, recently became ISO 9000 certified. Based on this information, which of the following statements is true of Sundown Communications?

Michael ordered a pair of shoes from an e-commerce website. The company sent his order to the wrong address and this confusion delayed the delivery by 10 days. Michael was disappointed by this and stopped ordering shoes from that online store. To regain his trust, the company apologized for the inconvenience and sent him a gift voucher worth $1000 that he could redeem at any e-commerce website. This gesture turned things around and Michael recommended this e-commerce company to all his friends. The process adopted by the e-commerce company to regain Michael's trust is called _____.

Shiny Rides is an automobile company that caters to people who invest in customized vehicles. To get their vehicles ready and delivered on time, customers are required to confirm the customization requirements they want. Unless and until the company receives a confirmed booking, it does not start the customization process. It is evident that Shiny Rides has adopted a(n) _____.

Churchill Automobiles is a delivery truck manufacturer. It is a new company and wants to gather information on how to improve the standard of quality delivered by the company's production team. Based on this information, which of the following ISO standards must the company refer to?

Hue Fabrics, a garment manufacturing company, produces around 2000 identical skirts per day. The production system used by the company is very efficient, and it makes close to 100 skirts per hour. Once the production starts, the system functions round the clock to spin and release garments until the machine is turned off. The production system of Hue Fabrics is an example of _____.

Toysoft Corp., a company that makes plastic toys for children, recently received an order for 250 toy cars. For this order, the company has an inventory of 100 kilograms of plastic, 75 kilograms of fiberglass, 500 toy wheels, 1,000 light-emitting diode (LED) bulbs, 135 toy cars in various stages of manufacturing, and 50 completed toy cars. In this scenario, which of the following components of the inventory can be categorized under work-in-process inventory?