Deck 13: Operations Management: Operational Dimensions

Question 1

Uniform construction,layout,and operations standards are used in _____.

A)scrambled merchandising
B)everyday inventory planning
C)prototype stores
D)crisis management

Answer 1

C

Question 2

Highly centralized management and strict operating procedures for each phase of business characterize _____.

A)mass merchandising
B)rationalized retailing
C)positioned retailing
D)risk-minimization retailing

Answer 2

B

Question 3

Which of the following is not an advantage of an operations blueprint?

A)The operations blueprint standardizes activities.
B)The operations blueprint helps evaluate personnel needs.
C)The operations blueprint determines space needs.
D)The operations blueprint isolates weak or failure-prone operations components.

Answer 3

C

Question 4

The need for store personnel by season,week,day,and time period is ascertained with _____.

A)job standardization
B)workload forecasts
C)cross-training
D)time-based performance adjustments

Question 5

A retailer allocates store space by first determining the total available store space and then dividing the space into categories in _____.

A)rationalized retailing
B)mass merchandising
C)a top-down space management approach
D)a bottom-up space management approach

Question 6

Supermarkets and full-line discount stores have effectively reduced personnel costs through the use of _____.

A)self-service facilities
B)vertical merchandising
C)prototype stores
D)just-in-time inventory management

Question 7

A characteristic of rationalized retailing programs is the _____.

A)encouragement of manufacturers to finance inventories
B)use of low-cost rental locations
C)use of used equipment and fixtures
D)high degree of centralized management control

Question 8

A retailer plans store space by starting planning at the individual product level and then proceeds to the category,total store,and overall company levels in _____.

A)rationalized retailing
B)mass merchandising
C)a top-down space management approach
D)a bottom-up space management approach

Question 9

A retailer seeks to acquire and maintain a proper assortment of merchandise while keeping ordering,shipping,handling,and other costs in check in _____.

A)retail operations
B)just-in-time inventory planning
C)store maintenance
D)inventory management

Question 10

Which of these is not a benefit to using prototype stores?

A)The stores use custom buildings for each city and town.
B)The stores enable a retailer to take advantage of quantity discounts in purchases.
C)The stores ease the employee interchange among branches.
D)These stores help portray a uniform image among franchise and chain store units.

Question 11

Rationalized retailing is often used in conjunction with _____.

A)micromerchandising
B)prototype stores
C)a top-down space management approach
D)a bottom-up space management approach

Question 12

The tasks of personnel with similar positions in different departments are kept rather uniform with _____.

A)management by objective
B)job standardization
C)risk-minimization retailing
D)rationalized retailing

Question 13

Ordering costs,holding costs,and loss in profits due to stockouts are effectively controlled in _____.

A)prototype stores
B)zero-based budgeting
C)incremental budgeting
D)inventory management

Question 14

Through _____,an employee can be easily shifted from stockperson to cashier as the need arises.

A)cross-training
B)risk-minimization retailing
C)rationalized retailing
D)job standardization

Question 15

All of the activities involved in managing the retailer's physical facilities comprise _____.

A)store maintenance
B)merchandising
C)energy management
D)operations management

Question 16

A tool which lists all of the operating functions to be performed,their characteristics,and their timing is a(n)_____.

A)job analysis
B)operations blueprint
C)job description
D)functional task blueprint

Question 17

Which of these is not a characteristic of a rationalized retailing strategy?

A)the use of prototype stores
B)the use of rigorous operating procedures for every phase of the business
C)a common store layout to all store units
D)decentralized management

Question 18

Rationalized retailing and prototype stores are most likely to be used by _____.

A)chains and franchises
B)off-price chains
C)warehouse stores
D)factory outlets

Question 19

Which of these is a not a major advantage of cross-training?

A)the ability to shift employees during peak sales periods
B)lower employee boredom
C)lower overall staffing needs during peak sales periods
D)lower overall personnel training costs

Question 20

In cross-training,personnel _____.

A)are trained to sell in self-service facilities
B)have clear performance standards
C)learn tasks associated with more than one job
D)are encouraged to engage in long-term employment in the firm

Question 21

What percent of retail transactions are by either credit or debit card?

A)10
B)15
C)25
D)50

Question 22

In a debit card system,the _____.

A)customer can either pay the full amount due immediately or defer payment
B)customer is not billed until his or her billing cycle date
C)retailer still has the risk of customer nonpayment
D)purchase price is automatically deducted from a consumer's bank account and then entered into the retailer's account through a computer terminal

Question 23

What type of insurance protects retailers from claims due to customers falling due to a wet floor or loose carpeting?

A)directors' liability
B)workers' compensation
C)public liability
D)product liability

Question 24

A major difficulty with the use of prototype stores is the _____.

A)inconsistent store image
B)higher purchase costs for fixtures
C)inflexibility in dealing with special site characteristics
D)difficulty in applying standardized operating cost controls to different locations

Question 25

Wireless scanners,radio frequency identification tags,and speech recognition are among the recent technological developments related to _____.

A)debit card systems
B)logistics systems
C)self-scanning
D)computerized checkouts

Question 26

Retailers seek to improve their productivity by having an outside party undertake one or more of its operating functions.This illustrates _____.

A)crisis management
B)self-scanning
C)contingency planning
D)outsourcing

Question 27

Computerized checkouts are generally used in conjunction with _____.

A)electronic article surveillance
B)quick response inventory management
C)logistics systems
D)UPC-based systems

Question 28

Planning for contingencies such as strikes,earthquakes,and lack of electricity is part of _____.

A)insurance coverage
B)crisis management
C)reinsurance
D)productivity management

Question 29

Credit-card fees paid by retailers average from _____ percent to _____ percent of sales.

A)1.5;5
B)2.5;3.5
C)3.5;5
D)5;6

Question 30

Based upon an analysis of selected retail tasks that need to be performed in a given time period,a retailer decided to rely on self-service.This illustrates the effective use of a(n)_____.

A)workload forecast
B)operations blueprint
C)job standardization analysis
D)cross-training analysis

Question 31

The use of a third-party logistics provider illustrates _____.

A)electronic article surveillance
B)crisis management
C)outsourcing
D)self-scanning

Question 32

Which system increases employee productivity for supermarkets?

A)debit card system
B)self-scanning
C)outsourcing
D)data-base management

Question 33

Which aspect of retail computerization has had the greatest impact on retailing?

A)videoconferencing
B)debit card systems
C)the computerized checkout
D)self-service

Question 34

Contingency planning is an important part of _____.

A)personnel management
B)outsourcing
C)crisis management
D)personnel productivity planning

Question 35

An advantage of the use of a wireless scanner in conjunction with a radio frequency identification tag (RFID)over a Universal Product Code (UPC)is its _____.

A)ability to scan a package without lifting it
B)tie-in to speech recognition
C)lower hardware costs
D)lower software costs

Question 36

The standardization of retail operations is often associated with the use of _____.

A)participatory management
B)decentralized decision making
C)unionization by employees
D)prototype stores

Question 37

A significant advantage to a consumer of a credit card system in comparison to a debit card system is _____.

A)the delayed payment benefit
B)higher security
C)tightened privacy
D)lower cost

Question 38

A listing and sequencing of interrelated tasks that must be performed by several retail personnel to assure that a retail service is efficiently and effectively performed is an important part of a(n)_____.

A)operations blueprint
B)job standardization analysis
C)workload forecast
D)cross-training analysis

Question 39

The use of prototype stores is commonly associated with _____.

A)fast-food outlets
B)no form of retailing
C)independent retailers
D)branches of department stores

Question 40

Which system performs all of the tasks of a computerized checkout and also verifies check and charge transactions and monitors and changes prices?

A)logistics system
B)self-scanning
C)electronic point-of-sale system
D)debit card system

Question 41

A retailer is concerned about such issues as tradeoffs between faster delivery times from suppliers and higher shipping costs and support from suppliers in storing merchandise.These issues concern _____.

A)store security
B)inventory management
C)crisis management
D)outsourcing

Question 42

An advantage to rationalized retailing programs is the _____.

A)ease of expansion
B)low investment
C)appeal to a well-defined market target
D)spreading of risk due to diversification

Question 43

Which type of insurance most directly affects employees?

A)workers' compensation
B)property damage
C)public liability
D)directors' liability

Question 44

A retailer with high seasonality can best reduce its labor costs in the peak season through _____.

A)job standardization
B)carefully screening employees
C)developing employee performance standards
D)cross-training and developing self-service options for consumers

Question 45

A retailer selling products that are potentially dangerous due to misuse or manufacturer defects should get _____ insurance.

A)property damage
B)public liability
C)product liability
D)workers' compensation

Question 46

Which of the following energy management strategies is most likely to have a negative impact on a retailer's atmosphere?

A)centrally managing lighting levels by each department by time of day to better reflect outside lighting conditions
B)replacing an older central air-conditioning system with a new efficient unit that requires 150 tons less capacity
C)installing high efficiency fluorescent bulbs in place of incandescent light bulbs
D)raising the temperature thermostat from 72 degrees in the summer to 74 degrees

Question 47

Store security relates to both _____.

A)insurance and personal security
B)personal security and merchandise security
C)crisis management and pilferage control
D)safety management and crisis management

Question 48

Which of the following does not contribute to the difficulty in planning personnel utilization in retailing?

A)high employee turnover
B)self-service merchandising
C)inflexibility due to union issues
D)large shifts in demand due to seasonality

Question 49

Board members of public corporations can be liable for their actions that may result in the loss in value of the retailer's stock.To cover this potential loss,retailers typically provide them with _____ insurance.

A)property damage
B)directors' and officers' liability
C)public liability
D)workers' compensation

Question 50

A firm organizes its store maintenance operations on the basis of location.Which method of classifying jobs does the firm use?

A)product classification
B)functional classification
C)geographic classification
D)combination organization classification

Question 51

Centralized decision making is generally associated with _____.

A)micromerchandising
B)risk-maximization retailing
C)rationalized retailing
D)category management

Question 52

A significant disadvantage with the use of rationalized retailing is the _____.

A)high operating costs associated with standardization
B)poor possible fit with local tastes
C)loss of quantity discounts through volume purchasing
D)need for more personnel due to decentralized decisions

Question 53

Poor morale and boredom caused by extreme specialization can be overcome through _____.

A)a Theory X orientation
B)job specialization
C)the use of prototype stores
D)cross-training

Question 54

The cross-training of employees is particularly beneficial when a retailer _____.

A)must deal with highly seasonal sales trends
B)is open for short hours
C)is open for long hours
D)has loyal part-time workers

Question 55

The opposite of extreme employee specialization is _____.

A)job standardization
B)self-service merchandising
C)automation
D)cross-training

Question 56

A characteristic associated with the bottom-up space management approach is that _____.

A)retail space costs may be high
B)the total space available may be less than that required by the plan
C)planning is centralized
D)the needs of scrambled merchandising may not be met

Question 57

The opposite strategy to rationalized retailing is _____.

A)micromerchandising
B)risk-minimization retailing
C)centralized management
D)category management

Question 58

A retailer can encourage long-term employment by _____.

A)using job standardization
B)adhering to a promotion-from-within philosophy
C)utilizing self-service facilities
D)utilizing a Theory X orientation

Question 59

Rationalized retailing is often conducted in conjunction with _____.

A)micromerchandising
B)decentralized management
C)electronic data interchange
D)the desire for a uniform image

Question 60

The most appropriate financial performance standard of a department store retail buyer is _____.

A)customer satisfaction
B)total unit sales
C)total dollar gross profit in department
D)total dollar sales

Question 61

Which aspect of computerization is best used for retail training?

A)computerized checkouts
B)videoconferencing
C)electronic point-of-sales systems
D)simulation

Question 62

Generally,there are few differences in human resource management procedures and strategies in unionized versus nonunionized retailers.

Question 63

An advantage of a retailer's maintaining its own credit card system versus outsourcing it to an organization such as MasterCard is _____.

A)lower bad debt loss
B)economies of scale
C)ease of management
D)ability to be more flexible in demanding repayment

Question 64

Which form of credit management system most closely resembles a check?

A)retailer-based credit system
B)debit management system
C)Discover card
D)MasterCard Express

Question 65

There are generally cost advantages associated with the use of prototype stores.

Question 66

Job standardization and cross-training are techniques designed to increase personnel flexibility.

Question 67

To the extent possible,each retail employee should have clear performance standards and be accountable for attaining them.

Question 68

A retailer shifting from a retailer-based credit card system to a bank-based credit card system illustrates _____.

A)resizing
B)self-service operations
C)downsizing
D)outsourcing

Question 69

A firm cannot improve employee productivity through self-service merchandising.

Question 70

Prototype stores allow each outlet to utilize standardized operating procedures,reduce construction costs,and reinforce a consistent chain image.

Question 71

Almost all electronic point-of-sale systems rely on _____.

A)videoconferencing
B)customer data bases
C)Universal Product Codes
D)electronic data interchange

Question 72

The top-down approach to space management involves less employee participation than the bottom-up approach to space management.

Question 73

A retailer can reduce its bad debt on credit sales to zero through _____.

A)using third-party credit plans and debit cards
B)developing and implementing a systematic credit authorization plan
C)developing high fees for nonpayment
D)limiting credit sales to the best credit risks

Question 74

Delayed payment of bills by consumers is not possible with _____.

A)credit card systems
B)bank-based credit cards
C)debit card systems
D)retailer-based credit cards

Question 75

Contingency planning for no store electricity,vendors being out-of-stock on key items,and strikes need to be considered in _____.

A)crisis management
B)expense allocation
C)insurance planning
D)budget planning

Question 76

A retailer can encourage long-term employment through a policy of promoting from within the firm.

Question 77

Prototype stores are commonly associated with business format franchising.

Question 78

The percent of cashier mis-rings is an example of a performance standard for a cashier.

Question 79

Inventory management programs can be facilitated through the use of _____.

A)item analysis
B)electronic article surveillance
C)computerized checkouts
D)electronic signature capture

Question 80

The major difference between computerized checkouts and electronic point-of-sale systems is that the electronic point-of-sale systems _____.

A)also verify,monitor,and change prices,as well as provide sales reports
B)are not tied into the retailer's main computer
C)do not have the capacity to print complex reports
D)are not compatible with UPC scanners