Question 1

Terrell is trying to decide whether to concentrate his purchases with one supplier or diversify with two or three.  One factor in favor of a single supplier is:
A) insurance against interruptions caused by strikes.
B) a particular supplier's superiority in product quality.
C) knowing the customer's loyalty, the supplier may provide better prices and service.
D) locating the best source in terms of price, quality and service with each purchase.

Accepted Answer

The answer of Terrell is trying to decide whether to...

Question 2

A suggestion for increasing outsourcing success is
A) have a back-up plan in case of supplier failure.
B) outsource the unique product of the business.
C) periodically monitor the company's progress.
D) negotiate for priority in the production schedule.

Accepted Answer

The answer of A suggestion for increasing outsourcing success is
A)...

Question 3

An approach that emphasizes efficiency through elimination of waste independent of other aspects of the process is called
A) capacity management.
B) lean production.
C) synchronous management.
D) waste-less production.

Accepted Answer

The approach described in the question is known as lean production, which emphasizes elimination of waste to increase efficiency while maintaining quality. Capacity management is a broader concept that looks at managing capacity to meet demand, synchronous management focuses on synchronizing all elements of the production process, and waste-less production is not a recognized term in the field of operations management.

Question 4

Holly is a business consultant who assists new companies in writing business plans. What type of manufacturing operation would Holly's business be considered and what are important characteristics for operational success?

Accepted Answer

The answer of Holly is a business consultant who assists...

Question 5

Christie and Kevin are starting a produce farm raising organic vegetables.  Kevin plans to sell the produce wholesale to a local restaurant and Christie is going to start a cooking school spotlighting the produce.  Complete the following table detailing the inputs and outputs between the product business versus the service business. What are the similarities?

Accepted Answer

The answer of Christie and Kevin are starting a produce...

Question 6

Aaron operates a lemonade stand in the New York City's Central Park.  His business is seasonal but within those seasons several other factor influence the demand for lemonade.  Aaron is most likely to use _______________ to help him predict demand on a daily basis.
A) associative forecasting
B) linear regression
C) historical sales data
D) the weather report

Accepted Answer

The answer of Aaron operates a lemonade stand in the...

Question 7

Shoichiro Toyoda, former president of Toyota Motors, built on Ford's concepts and focused on the need to eliminate waste from the production system. He followed a(n) _______ approach.
A) assembly line
B) distribution
C) lean production
D) synchronous production

Accepted Answer

Shoichiro Toyoda followed the concept of "lean production," which focuses on the elimination of waste from the production system. This approach aims to maximize efficiency and minimize costs while maintaining quality. Consequently, the correct answer is C.

Question 8

Which solution to a constraint would increase efficiency?
A) Move maintenance times.
B) Inspect quality.
C) Subdivide work.
D) Expand resources.

Accepted Answer

The answer of Which solution to a constraint would increase...

Question 9

Discuss the objectives of inventory management.

Accepted Answer

The answer of Discuss the objectives of inventory management....

Question 10

The approach that recognizes the assets and activities of the company are interdependent and should be managed so as to maximize the company's performance is
A) capacity management.
B) lean production.
C) synchronous management.
D) waste-less production.

Accepted Answer

Synchronous management is centered on the idea that all assets and activities of the company are interdependent, and therefore should be managed in a coordinated and synchronized way to optimize the company's overall performance. Capacity management focuses on the efficient use of resources to meet production demands, lean production aims to eliminate waste and increase efficiency, and waste-less production is a similar concept that also focuses on minimizing waste. However, these approaches do not address the interdependence of assets and activities in the same way that synchronous management does.

Question 11

According to The American Society for Quality , what features are necessary for TQM?

Accepted Answer

The answer of According to The American Society for Quality...

Question 12

The most important reason why a small business should build good relationships with large suppliers is
A) forecasting can be made easier with the suppliers input.
B) it will make the small business stand out from other firms buying from the supplier.
C) the need for the small business to have prices as low as possible on purchases.
D) the relationship can make the small business more competitive.

Accepted Answer

Building good relationships with large suppliers can make a small business more competitive as it can lead to preferential treatment from the supplier, access to better prices and credit terms, and potential partnerships for joint marketing and promotional efforts. This can ultimately help the small business to grow and succeed in its industry. While forecasting and pricing are important factors, the overall benefit of a strong relationship with a large supplier is the potential for increased competitiveness.

Question 13

The buying of products or services from a third party to manage a firm's functions is known as
A) asset efficiency.
B) diversification of supplies.
C) importing.
D) outsourcing.

Accepted Answer

Outsourcing refers to the practice of buying products or services from a third party to manage a firm's functions. This enables companies to focus on their core competencies and reduce costs by taking advantage of specialized expertise and economies of scale.

Question 14

Cooperative purchasing organizations for small businesses are more successful now because of the:
A) acceptance of coops as a business model by suppliers.
B) diversification of numerous global suppliers.
C) increased use of the Internet to locate more suppliers.
D) use of crowdsourcing to locate new suppliers.

Accepted Answer

The increased use of the Internet to locate more suppliers has significantly contributed to the success of cooperative purchasing organizations for small businesses. It allows these organizations to easily find and connect with a wide range of suppliers globally, enhancing their purchasing power and options.

Question 15

After defining operations management, discuss operational factors that will impact a firm's performance.

Accepted Answer

The answer of After defining operations management, discuss operational factors...

Question 16

Raj's company can either make the components or buy them.  He should decide to make the components rather than buy them from a supplier
A) when utilization of plant capacity permits more economical production.
B) when an outside supplier specializes in the production of that component.
C) if in-house operations can concentrate on the firm's specialty--the finished product.
D) if the risk of equipment obsolescence can be transferred to the supplier.

Accepted Answer

A) When a company has unused plant capacity, producing components in-house can be more cost-effective than outsourcing. This is because the fixed costs associated with the plant are already incurred, so the company only needs to consider the variable costs of production.

Question 17

Myra operates a punch press on a production line.  Because she is slower than the operators both before and after her in the process, work stacks up at her press.  Myra is a:
A) bottleneck.
B) constraint.
C) defect.
D) hazard

Accepted Answer

Myra is a bottleneck because she is slowing down the production process due to her slower work pace, causing work to stack up at her station.

Question 18

Of the following, which is of greatest concern to a production manager?
A) a bottleneck
B) capacity waste
C) a constraint
D) overproduction

Accepted Answer

A constraint is a limitation that prevents a production process from achieving its goals, and is thus of the greatest concern to a production manager. A bottleneck is a type of constraint, but refers specifically to the step in a process that limits the overall capacity of the system. Capacity waste and overproduction are important issues as well, but they are not necessarily as critical as constraints for a production manager to address.

Question 19

After describing common inventory record-keeping systems, what are guidelines for their use?

Accepted Answer

The answer of After describing common inventory record-keeping systems, what...

Question 20

After describing the ABC Inventory Classification System, give examples of each category for a food item common to a restaurant.

Accepted Answer

The answer of After describing the ABC Inventory Classification System,...

Quiz 21: Managing Small Business Operations

Terrell is trying to decide whether to concentrate his purchases with one supplier or diversify with two or three. One factor in favor of a single supplier is:

A suggestion for increasing outsourcing success is

An approach that emphasizes efficiency through elimination of waste independent of other aspects of the process is called

Holly is a business consultant who assists new companies in writing business plans. What type of manufacturing operation would Holly's business be considered and what are important characteristics for operational success?

Aaron operates a lemonade stand in the New York City's Central Park. His business is seasonal but within those seasons several other factor influence the demand for lemonade. Aaron is most likely to use _______________ to help him predict demand on a daily basis.

Shoichiro Toyoda, former president of Toyota Motors, built on Ford's concepts and focused on the need to eliminate waste from the production system. He followed a(n) _______ approach.

Which solution to a constraint would increase efficiency?

Discuss the objectives of inventory management.

The approach that recognizes the assets and activities of the company are interdependent and should be managed so as to maximize the company's performance is

According to The American Society for Quality , what features are necessary for TQM?

The most important reason why a small business should build good relationships with large suppliers is

The buying of products or services from a third party to manage a firm's functions is known as

Cooperative purchasing organizations for small businesses are more successful now because of the:

After defining operations management, discuss operational factors that will impact a firm's performance.

Raj's company can either make the components or buy them. He should decide to make the components rather than buy them from a supplier

Myra operates a punch press on a production line. Because she is slower than the operators both before and after her in the process, work stacks up at her press. Myra is a:

Of the following, which is of greatest concern to a production manager?

After describing common inventory record-keeping systems, what are guidelines for their use?

After describing the ABC Inventory Classification System, give examples of each category for a food item common to a restaurant.