Question 1

Operations management works in a complex environment affected by:

Accepted Answer

A)  the economy 
B)  competition 
C)  government regulations 
D)  all of the above

Question 2

Assembly- to- order means that the customer's specifications require unique engineering design or significant customization.

Accepted Answer

A) True 
 B)False

Question 3

Using the data below, if direct materials can be reduced by 10% and direct labor by 5%, the improvement in profit would be: $\begin{array}{llcc}
&& \text { Dollars }& \text { Percent of Sales}\
  \text { Revenue } &&\$1,000,000&100\%\
 \text { Cost of Goods Sold } &\
 \text {Direct Material  } &\$500,000&&50\%\
 \text {  Direct Labor} &\$200,000
&&20\%\
 \text {Factory Overhead  } &\$200,000&&20\%\
 \text {Total Cost of Goods  } &&\underline{\$900,000}&90\%\
\text { Sold }\
 \text {Gross Profit  } &&\$100,000&10\%\
\end{array}$

Accepted Answer

The answer of Using the data below, if direct materials...

Question 4

____________means that the product is made from standard components that the manufacturer can inventory and assemble according to a customer order.

Accepted Answer

A)  Make- to- stock 
B)  Make- to- order 
C)  Engineer- to- order 
D)  Assemble- to- order

Question 5

Just- in- time JIT) concepts were originally developed by Motorola and other American companies in the 1970s.

Accepted Answer

A) True 
 B)False

Question 6

Services are physical objects, something we can touch, feel, or see.

Accepted Answer

A) True 
 B)False

Question 7

If the cost of manufacturing which includes direct material and direct labor is 70% of sales and profit is 10% of sales, what would be the improvement in profit, if through your better planning and control, the cost of manufacturing was reduced from 70% of sales to 50% of sales?

Accepted Answer

The answer of If the cost of manufacturing which includes...

Question 8

Demand information usually flows from:

Accepted Answer

A)  supplier to customer 
B)  customer to products 
C)  product to supplier 
D)  customer to supplier

Question 9

A ____________ function is needed to transform our resources into useful goods.

Accepted Answer

A)  service 
B)  production 
C)  resource material 
D)  extraction

Question 10

Since competition is international and aggressive, successful companies provide quality that not only meets customers' high expectations but exceeds them.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to Materials Management

Operations management works in a complex environment affected by:

Assembly- to- order means that the customer's specifications require unique engineering design or significant customization.

____________means that the product is made from standard components that the manufacturer can inventory and assemble according to a customer order.

Just- in- time JIT) concepts were originally developed by Motorola and other American companies in the 1970s.

Services are physical objects, something we can touch, feel, or see.

If the cost of manufacturing which includes direct material and direct labor is 70% of sales and profit is 10% of sales, what would be the improvement in profit, if through your better planning and control, the cost of manufacturing was reduced from 70% of sales to 50% of sales?

Demand information usually flows from:

A ____________ function is needed to transform our resources into useful goods.

Since competition is international and aggressive, successful companies provide quality that not only meets customers' high expectations but exceeds them.