Question 1

The four kinds of costs incurred with inventory maintenance are ordering costs, setup costs, transaction costs, and stockout costs.

Accepted Answer

A) True 
 B)False

Question 2

The ____________ of a maker of cloth dolls would include over 200 yards of fabric, 100 yards of ribbon, a box of 500 wiggle eyes, stuffing, 20 dolls in various stages of completion, and 15 completed dolls.

Accepted Answer

A)  raw materials 
B)  component materials 
C)  finished products 
D)  inventory 
E)  SKUs 
A)  raw materials 
B)  component materials 
C)  finished products 
D)  inventory 
E)  SKUs

Question 3

Transaction costs and loss of customer goodwill are both examples of ____________ .

Accepted Answer

A)  ordering costs 
B)  setup costs 
C)  holding costs 
D)  depreciation costs 
E)  stockout costs 
A)  ordering costs 
B)  setup costs 
C)  holding costs 
D)  depreciation costs 
E)  stockout costs

Question 4

The lowest degree of processing occurs in____________  operations, where a company orders parts and assembles standardized products before receiving customer orders.

Accepted Answer

A)  assemble-to-stock 
B)  buy-to-sell 
C)  make-to-order 
D)  make-to-stock 
E)  assemble-to-order 
A)  assemble-to-stock 
B)  buy-to-sell 
C)  make-to-order 
D)  make-to-stock 
E)  assemble-to-order

Question 5

The purpose of service recovery is to restore customer satisfaction to strongly dissatisfied customers

Accepted Answer

A) True 
 B)False

Question 6

The easier it is to maintain a working product or fix a broken product, the more____________ that product appears.

Accepted Answer

A)  reliable 
B)  serviceable 
C)  durable 
D)  tangible 
E)  effective 
A)  reliable 
B)  serviceable 
C)  durable 
D)  tangible 
E)  effective

Question 7

Which of the following types of operations are most dependent on the accuracy of sales forecasts?

Accepted Answer

A)  project manufacturing 
B)  assemble-to-order operations 
C)  make-to-order operations 
D)  buy-to-sell operations 
E)  make-to-stock operations 
A)  project manufacturing 
B)  assemble-to-order operations 
C)  make-to-order operations 
D)  buy-to-sell operations 
E)  make-to-stock operations

Question 8

This is a description of what happened to a patron at Royal Mail (the United Kingdom's equivalent of the USPS). "In the 15 minutes I waited in line, during which I shuffled forward one yard and two places, I had ample opportunity to watch what the other three staff were doing. They were busy all right, but the main task was counting each stamp in their folders. In this vital work, two of the three were overseen by another member of staff. There was no eye contact with the waiting customers." Assuming this experience is typical, the Royal Mail needs to engage in____________  .

Accepted Answer

A)  service recovery 
B)  process integration 
C)  manufacturing flexibility 
D)  just-in-time manufacturing 
E)  process changeover 
A)  service recovery 
B)  process integration 
C)  manufacturing flexibility 
D)  just-in-time manufacturing 
E)  process changeover

Question 9

Which of the following statements about ISO 9000 is true?

Accepted Answer

A)  ISO 9000 is a series of five international standards for achieving consistency in quality management and quality assurance in companies throughout the world. 
B)  The ISO 9000 standards are applicable to the manufacturing of goods and to the delivery of services. 
C)  Studies show that customers prefer to buy from companies with ISO 9000 certification. 
D)  ISO 9000 certification may be suspended or canceled if companies fail an audit following their initial certification. 
E)  All of these statements about ISO 9000 are true. 
A)  ISO 9000 is a series of five international standards for achieving consistency in quality management and quality assurance in companies throughout the world. 
B)  The ISO 9000 standards are applicable to the manufacturing of goods and to the delivery of services. 
C)  Studies show that customers prefer to buy from companies with ISO 9000 certification. 
D)  ISO 9000 certification may be suspended or canceled if companies fail an audit following their initial certification. 
E)  All of these statements about ISO 9000 are true.

Question 10

Which of the following statements about productivity is true?

Accepted Answer

A)  Productivity is a ratio of benefits to costs (i.e., benefits divided by costs). 
B)  For companies, higher productivity can lead to lower costs. 
C)  For countries, higher productivity produces a lower standard of living. 
D)  Productivity decreases make products more affordable. 
E)  All of the statements about productivity are true. 
A)  Productivity is a ratio of benefits to costs (i.e., benefits divided by costs). 
B)  For companies, higher productivity can lead to lower costs. 
C)  For countries, higher productivity produces a lower standard of living. 
D)  Productivity decreases make products more affordable. 
E)  All of the statements about productivity are true.

Question 11

To effectively manage inventory, a manager should use EOQ formulas when inventory levels are independent, and JIT and MRP when inventory levels are dependent on the number of products to be produced.

Accepted Answer

A) True 
 B)False

Question 12

The product quality characteristic of ____________is defined as the mean time before product failure.

Accepted Answer

A)  reliability 
B)  assurance 
C)  durability 
D)  responsiveness 
E)  effectiveness 
A)  reliability 
B)  assurance 
C)  durability 
D)  responsiveness 
E)  effectiveness

Question 13

A product's quality is determined by its____________ .

Accepted Answer

A)  reliability, homogeneity, and durability 
B)  reliability, validity, and effectiveness 
C)  serviceability, tangibility, and homogeneity 
D)  durability, reliability, and serviceability 
E)  consistency, tangibility, and durability 
A)  reliability, homogeneity, and durability 
B)  reliability, validity, and effectiveness 
C)  serviceability, tangibility, and homogeneity 
D)  durability, reliability, and serviceability 
E)  consistency, tangibility, and durability

Question 14

A company expressing its ongoing commitment to continuous product improvement and premium quality products is committed to ____________ .

Accepted Answer

A)  a bureaucratic structure 
B)  total quality management 
C)  winning ISO 8000 certification 
D)  implementing an MRP program 
E)  autonomous work stations 
A)  a bureaucratic structure 
B)  total quality management 
C)  winning ISO 8000 certification 
D)  implementing an MRP program 
E)  autonomous work stations

Question 15

RIP
In recent years, Japanese companies such as Mitsubishi, NEC, Fujitsu, and Sony began turning to Americans to manufacture Japanese products. While Sony, Panasonic, and other Japanese giants still excel at cranking out high- quality consumer electronics products such as camcorders and TVs by the millions, it's a different story in industries with short product cycles, which require factories that must build what customers order instead of churning out products in anticipation of demand. Japan's great strength, repetitive manufacturing, is becoming its greatest weakness. This production-on-demand form of management cannot depend on JIT. Instead the American companies rely on raw-in-process inventory, or RIP. RIP calls for keeping a reasonable quantity of varied raw materials or components on hand to meet changing customer demand.
-Refer to RIP. What type of manufacturing operation are Americans who manufacture NEC, Fujitsu, and Sony products using?

Accepted Answer

A)  stock-to-make 
B)  make-to-stock 
C)  raw-to-stock 
D)  make-to-order 
E)  assemble-to-order 
A)  stock-to-make 
B)  make-to-stock 
C)  raw-to-stock 
D)  make-to-order 
E)  assemble-to-order

Question 16

ISO 9000 is a series of five international standards for achieving consistency in quality management and quality assurance because they ensure that companies carefully document the steps they take to create and improve product quality.

Accepted Answer

A) True 
 B)False

Question 17

Make-to-stock operations are highly dependent on the accuracy of sales forecasts.

Accepted Answer

A) True 
 B)False

Question 18

Continuous improvement is typically associated with____________  .

Accepted Answer

A)  low morale and reduced customer satisfaction 
B)  a reduction in variation and higher customer satisfaction 
C)  batch processing and a broad chain of command 
D)  a flat organizational structure and a broad chain of command 
E)  higher customer satisfaction and a narrower chain of command 
A)  low morale and reduced customer satisfaction 
B)  a reduction in variation and higher customer satisfaction 
C)  batch processing and a broad chain of command 
D)  a flat organizational structure and a broad chain of command 
E)  higher customer satisfaction and a narrower chain of command

Question 19

Inventory is defined as the number of finished products that a company has in its possession either in the factory, in warehouses, or on delivery vehicles.

Accepted Answer

A) True 
 B)False

Question 20

When a CEO of a company says that TQM 's payoff comes when everyone shares solutions with others, the CEO is promoting which characteristic of TQM?

Accepted Answer

A)  continuous improvement 
B)  variation elimination 
C)  teamwork 
D)  market focus 
E)  a customer orientation 
A)  continuous improvement 
B)  variation elimination 
C)  teamwork 
D)  market focus 
E)  a customer orientation

Exam 17: Section 1: Managing Information

The four kinds of costs incurred with inventory maintenance are ordering costs, setup costs, transaction costs, and stockout costs.

The ____________ of a maker of cloth dolls would include over 200 yards of fabric, 100 yards of ribbon, a box of 500 wiggle eyes, stuffing, 20 dolls in various stages of completion, and 15 completed dolls.

Transaction costs and loss of customer goodwill are both examples of ____________ .

The lowest degree of processing occurs in____________ operations, where a company orders parts and assembles standardized products before receiving customer orders.

The purpose of service recovery is to restore customer satisfaction to strongly dissatisfied customers

The easier it is to maintain a working product or fix a broken product, the more____________ that product appears.

Which of the following types of operations are most dependent on the accuracy of sales forecasts?

Which of the following statements about ISO 9000 is true?

Which of the following statements about productivity is true?

To effectively manage inventory, a manager should use EOQ formulas when inventory levels are independent, and JIT and MRP when inventory levels are dependent on the number of products to be produced.

The product quality characteristic of ____________is defined as the mean time before product failure.

A product's quality is determined by its____________ .

A company expressing its ongoing commitment to continuous product improvement and premium quality products is committed to ____________ .

ISO 9000 is a series of five international standards for achieving consistency in quality management and quality assurance because they ensure that companies carefully document the steps they take to create and improve product quality.

Make-to-stock operations are highly dependent on the accuracy of sales forecasts.

Continuous improvement is typically associated with____________ .

Inventory is defined as the number of finished products that a company has in its possession either in the factory, in warehouses, or on delivery vehicles.

When a CEO of a company says that TQM 's payoff comes when everyone shares solutions with others, the CEO is promoting which characteristic of TQM?

Section 1: Management

Section 2: Management

Section 3: Management

Section 1: History of Management

Section 2: History of Management

Section 3: History of Management

Section 1: Organizational Environments and Cultures

Section 2: Organizational Environments and Cultures

Section 3: Organizational Environments and Cultures

Section 1: Ethics and Social Responsibility

Section 2: Ethics and Social Responsibility

Section 3: Ethics and Social Responsibility

Section 1: Planning and Decision Making

Section 2: Planning and Decision Making

Section 3: Planning and Decision Making

Section 1: Organizational Strategy

Section 2: Organizational Strategy

Section 3: Organizational Strategy

Section 1: Innovation and Change

Section 2: Innovation and Change

Section 3: Innovation and Change

Section 1: Global Management

Section 2: Global Management

Section 1: Designing Adaptive Organizations

Section 2:designing Adaptive Organizations

Section 1: Managing Teams

Section 2: Managing Teams

Section 3: Managing Teams

Section 1: Managing Human Resource Systems

Section 2: Managing Human Resource Systems

Section 3: Managing Human Resource Systems

Section 1: Managing Individuals and a Diverse Work Force

Section 2: Managing Individuals and a Diverse Work Force

Section 3: Managing Individuals and a Diverse Work Force

Section 1: Motivation

Section 2: Motivation

Section 3: Motivation

Section 1: Leadership

Section 2: Leadership

Section 3: Leadership

Section 1: Managing Communication

Section 2: Managing Communication

Section 1: Control

Section 2: Control

Section 3: Control

Section 2: Managing Information

Section 3: Managing Information

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