Question 1

Manufacturing is important to the economy because:
A) it generates wealth
B) it supports service industries
C) it adds value to products
D) all of the above

Accepted Answer

Manufacturing generates wealth by producing goods that can be sold domestically or exported to other countries. It also supports service industries such as transportation, warehousing, and marketing. Additionally, manufacturing adds value to products by turning raw materials into finished goods that are more useful to consumers. Therefore, all of the above choices are correct.

Question 2

Which of the following statements is best regarding order winners?
A) they persuade a company's customers to choose its product
B) they are the same in every market
C) they are the same as order qualifiers, only better
D) they are present in every product

Accepted Answer

Order winners are those factors that differentiate a company's products or services from its competitors and persuade customers to choose its product over others. They are unique to each company and vary across different markets. Option B is incorrect as order winners are not the same in every market. Option C is incorrect as order qualifiers are different from order winners and are the minimum requirements that a company needs to meet to be considered by customers. Option D is incorrect as order winners may not be present in every product as some products may not have any unique factors that persuade customers to choose them over others.

Question 3

The purpose of the materials management concept is:
I. To manage materials in a production operation.
II. To have purchasing support the needs of production.
III. To have production support the needs of purchasing.
A) II and III only
B) I and II only
C) I, II and III
D) I and III only

Accepted Answer

The purpose of materials management is to manage the materials in a production operation and to have purchasing support the needs of production. It does not involve production supporting the needs of purchasing. Therefore, the best choice is B, which includes both I and II only.

Question 4

Which of the following is normally a major activity of materials management?
I. Manufacturing planning and control.
II. Physical supply/distribution.
A) both I and II
B) neither I nor II
C) I only
D) II only

Accepted Answer

Materials management typically encompasses both manufacturing planning and control, which involves planning the production process and managing materials for manufacturing, and physical supply/distribution, which includes the logistics of supplying materials to the manufacturing process and distributing finished goods.

Question 5

If a firm wishes to maximize profit, which of the following objectives are in conflict?
I. Maximize customer service.
II. Minimize production costs.
III. Minimize inventory costs.
IV. Minimize distribution costs.
A) all the above
B) I and II only
C) I and III only
D) II and III only

Accepted Answer

The answer of If a firm wishes to maximize profit,...

Question 6

Which of the following is the best statement about the operating environment in which operations management functions?
A) most organizations do not need to worry about competition
B) customers are more demanding
C) government regulation is not important for companies
D) price is more important than quality

Accepted Answer

Customers are now more informed and have higher expectations, which puts pressure on operations management to constantly improve processes, products, and services. Competition is also a major factor in the operating environment, and government regulations can have a significant impact on operations. Prioritizing price over quality may result in short-term gains, but is not a sustainable strategy in the long run.

Question 7

Which of the following is/are primary activities of manufacturing planning and control?
I. Production planning.
II. Implementation and control.
III. Inventory management.
A) I and II only
B) II and III only
C) I and III only
D) all the above are primary activities

Accepted Answer

All of the options are primary activities of manufacturing planning and control. Production planning is essential to create a schedule and determine the amount of resources required to meet demand. Implementation and control help ensure that the plan is carried out correctly, while inventory management is crucial to keeping track of raw materials, goods in progress, and finished goods. Therefore, all the options are primary activities.

Question 8

Select the best answer to the following:
A) traditionally the supply-production-distribution functions have reported to different departments
B) the supply, production and distribution functions are part of a total system
C) materials flow into an organization, are processed in some way and distributed to the consumer
D) all the above are correct

Accepted Answer

All the statements are correct and describe different aspects of how supply, production, and distribution functions interact within organizations. They highlight the traditional departmental divisions, the systemic nature of these functions, and the basic flow of materials through an organization.

Question 9

The objective of materials management is to:
I. Provide the required level of customer service.
II. Maximize the use of the firm's resources.
A) I only
B) II only
C) I and II
D) neither I nor II

Accepted Answer

The objective of materials management is to provide the required level of customer service while maximizing the use of the firm's resources. This includes ensuring inventory is managed effectively, optimizing transportation, and keeping costs low while still meeting customer demand. Therefore, both I and II are correct.

Question 10

Which of the following statements is best?
A) the basic elements of a supply chain are supply, production, and distribution
B) the elements of a supply chain are interdependent
C) design information generally flows from customer to supplier
D) all the above are true

Accepted Answer

All the statements provided are true and accurately describe aspects of supply chains. A) outlines the basic elements, B) highlights the interdependence of these elements, and C) describes the typical flow of design information.

Question 11

Materials management can be considered a balancing act because:
I. There are trade-offs between customer service and the cost of providing the service.
II. Priority and capacity must be balanced.
A) neither I nor II
B) I only
C) II only
D) I and II

Accepted Answer

Materials management involves balancing the need for customer service against the cost of providing that service, as well as juggling priorities and capacity constraints. Therefore, both statements I and II are true, making option D the correct answer.

Question 12

Companies A and B supply company C, which supplies customers D and E. Which of the following statements is best?
A) the supply chain for company A includes B, C, D, and E.
B) the supply chain for company B includes A, C, D and E.
C) the supply chain for company C includes A, B, D, and E.
D) all the above are true.

Accepted Answer

Company C is the center of the supply chain, as it supplies customers D and E with goods or services obtained from companies A and B. Therefore, the supply chain for company C includes both A and B, as well as D and E. Choices A and B are incorrect because they only include parts of the supply chain and do not account for all the relevant parties. Choice D is also incorrect because not all the statements are true.

Question 13

If the cost of manufacturing (direct labor and materials) is 50% of sales and profit is 15% of sales, what would the profit percentage be if the direct costs of manufacturing was reduced from 50% to 47%?
A) 3%
B) 6%
C) 12%
D) 15%
E) 18%

Accepted Answer

Reducing direct costs from 50% to 47% of sales increases profit by 3% (from 15% to 18%) since the saved costs directly add to the profit.

Question 14

Which of the following statements is best?
A) the supply chain includes all activities and processes to provide a product or service to a customer.
B) material in the supply chain usually flows from producer to customer.
C) the supply chain contains only one supplier.
D) all of the above are true.
E) a and b only are true.

Accepted Answer

Option A is true as it defines the supply chain as all activities and processes required to provide a product or service to the customer. Option B is also true as the material flow in the supply chain usually starts from the producer and moves towards the customer. However, option C is incorrect as the supply chain contains multiple suppliers and stakeholders. Therefore, the correct answer is option E which includes the true statements in options A and B.

Question 15

Which of the following is NOT an activity of physical supply/distribution?
A) transportation
B) factory inventory
C) warehousing
D) packaging
E) material handling

Accepted Answer

Factory inventory is an activity of production or manufacturing, not physical supply/distribution.

Question 16

Delivery lead time for an engineer-to-order product includes which of the following?
A) Design, purchase, manufacture, assemble, ship
B) Design, manufacture, assemble, ship
C) Purchase, manufacture, assemble, ship
D) Purchase, assemble, ship

Accepted Answer

Delivery lead time for engineer-to-order product involves design, purchase, manufacture, assembly, and shipment. Design includes creating a customized product as per the customer's requirements. Purchase involves procuring raw materials or necessary components from suppliers. After receiving the raw materials, the manufacturer can begin manufacturing the product. Then comes the assembly of the manufactured parts to form the finished product. The final step is shipment, which involves delivering the finished product to the customer. Therefore, the delivery lead time for an engineer-to-order product includes all the stages mentioned in option A.

Question 17

Which of the following are generally considered overall objectives of an organization?
I. Providing good customer service.
II. Maintaining low levels of inventory investment.
III. Optimizing use of resources.
IV. Providing sufficient return on investment.
A) I and II only
B) I, II and III only
C) I, III and IV only
D) all the above

Accepted Answer

Providing good customer service, maintaining low levels of inventory investment, optimizing use of resources, and providing sufficient return on investment are all generally considered overall objectives of an organization. Therefore, all the options are correct.

Question 18

Which of the following strategies has the shortest delivery lead time and the least customer input?
A) make-to-order
B) configure-to-order
C) assemble-to-order
D) make-to-stock

Accepted Answer

Make-to-stock strategy has the shortest delivery lead time and the least customer input as the products are already produced and stored in inventory, waiting for the customer to place an order. Customers do not need to provide any input as the product has already been produced and is available for immediate delivery.

Question 19

Which of the following is (are) input(s) to manufacturing planning and control?
A) product description
B) process description
C) available facilities
D) quantities to be produced
E) all the above are inputs

Accepted Answer

All the above inputs are essential to manufacturing planning and control. The product description and process description provide an understanding of what needs to be produced and how it should be produced. The available facilities determine the capabilities and limitations of the manufacturing process, which influences decisions related to sequencing, scheduling, and resource allocation. Quantities to be produced are necessary to determine the appropriate level of production planning and control needed to meet demand.

Question 20

Which of the following statements is best?
I. The conflict between marketing, finance and production centers on customer service, disruption to production, and inventory levels.
II. Marketing's objectives can be met with higher inventories.
III. Finance's objectives can be met with higher inventories.
IV. Production's objectives can be met with higher inventories.
A) all of the above are true
B) I and II only are true
C) I, II and III only are true
D) I, II and IV only are true
E) II, III and IV only are true

Accepted Answer

Statement I is true as it highlights the areas of conflict between marketing, finance, and production. However, statements II and III are not entirely true as higher inventories may not meet their respective objectives. Only statement IV is true as higher inventories can help production meet its objectives of avoiding disruptions in the supply chain and maintaining continuous production. Therefore, the best choice is D.

Quiz 1: Introduction to Materials Management

Manufacturing is important to the economy because:

Which of the following statements is best regarding order winners?

The purpose of the materials management concept is: I. To manage materials in a production operation. II. To have purchasing support the needs of production. III. To have production support the needs of purchasing.

Which of the following is normally a major activity of materials management? I. Manufacturing planning and control. II. Physical supply/distribution.

If a firm wishes to maximize profit, which of the following objectives are in conflict? I. Maximize customer service. II. Minimize production costs. III. Minimize inventory costs. IV. Minimize distribution costs.

Which of the following is the best statement about the operating environment in which operations management functions?

Which of the following is/are primary activities of manufacturing planning and control? I. Production planning. II. Implementation and control. III. Inventory management.

Select the best answer to the following:

The objective of materials management is to: I. Provide the required level of customer service. II. Maximize the use of the firm's resources.

Which of the following statements is best?

Materials management can be considered a balancing act because: I. There are trade-offs between customer service and the cost of providing the service. II. Priority and capacity must be balanced.

Companies A and B supply company C, which supplies customers D and E. Which of the following statements is best?

If the cost of manufacturing (direct labor and materials) is 50% of sales and profit is 15% of sales, what would the profit percentage be if the direct costs of manufacturing was reduced from 50% to 47%?

Which of the following statements is best?

Which of the following is NOT an activity of physical supply/distribution?

Delivery lead time for an engineer-to-order product includes which of the following?

Which of the following are generally considered overall objectives of an organization? I. Providing good customer service. II. Maintaining low levels of inventory investment. III. Optimizing use of resources. IV. Providing sufficient return on investment.

Which of the following strategies has the shortest delivery lead time and the least customer input?

Which of the following is (are) input(s) to manufacturing planning and control?