Question 1

Brendon's Bakeries uses 4,000 pounds of flour a year. If the ordering cost is $10 per order and the holding cost is $2 per pound, then the optimal quantity to order flour is _____.

Accepted Answer

The answer of Brendon's Bakeries uses 4,000 pounds of flour...

Question 2

Which of the following statements best explains the term inventory?

Accepted Answer

Inventory refers to the amount and number of raw materials, parts, and finished products that a company has in its possession. It is an important metric for businesses to monitor and manage to ensure they have enough products to meet demand without overspending on inventory holding costs.

Question 3

__________are also known as partially finished goods.

Accepted Answer

Work-in-process inventories are goods that have undergone some manufacturing process but are not yet completed. They are also referred to as partially finished goods. Option B (Component parts inventories) refers to inventories of raw materials that have not been processed or assembled. Option C (Average aggregate inventories) is a non-specific term that does not indicate the type of inventory. Option D (Raw material inventories) refers only to the inventory of unprocessed materials.

Question 4

Ziff Corp., a company that manufactures construction materials, uses 10,000 tons of iron per year to make reinforced rods. Its ordering costs are $20 per order and holding costs are $10 per ton. According to the economic order quantity (EOQ) model, approximately how often should the company place a fresh order for iron?

Accepted Answer

The answer of Ziff Corp., a company that manufactures construction...

Question 5

All work-in-process inventories are assembled to create__________.

Accepted Answer

Work-in-process inventories are a result of the production process and include partially completed products that are yet to be finished. They are assembled to create finished goods inventories, which are the final products ready for sale. Therefore, option D is the correct answer. Option A (component parts inventories) refers to the inventory of parts and materials used to create finished goods, but it does not specifically refer to work-in-process items. Option B (average aggregate inventories) is a vague term that does not provide any specific information about inventories. Option C (raw material inventories) refers specifically to the inventory of materials used to create finished goods, but does not include work-in-process items.

Question 6

Rekky n Brekky is a café where part of employees' monthly salary depends on customer satisfaction. Eighty percent of the incentive is based on performance and the remaining twenty percent is based on customer satisfaction ratings and the quality of service. In this case, Rekky n Brekky is committed to _____.

Accepted Answer

Rekky n Brekky is committed to total quality management by making a part of their employees' monthly salary dependent on customer satisfaction ratings and the quality of service.

Question 7

Shiny Rides is an automobile company that caters to people who invest in customized vehicles. To get their vehicles ready and delivered on time, customers are required to confirm the customization requirements they want. Unless and until the company receives a confirmed booking, it does not start the customization process. It is evident that Shiny Rides has adopted a(n) _____.

Accepted Answer

Shiny Rides is operating a make-to-order operation because they only start the customization process upon receiving a confirmed booking from the customer. This means that the vehicles are customized according to the specifications requested by each individual customer, rather than being pre-made and stocked for sale (make-to-stock) or assembled after an order is received (assemble-to-order or assemble-to-stock).

Question 8

If a drilling rig operates 10 hours a day and takes 40 hours to drill 8 meters of earth's surface, the productivity of the drilling rig will be _____.

Accepted Answer

The answer of If a drilling rig operates 10 hours...

Question 9

Gem Genie is a designer jewelry store that runs its processes only on make-to-order operations. Based on this information, which of the following statements is true of Gem Genie?

Accepted Answer

The answer of Gem Genie is a designer jewelry store...

Question 10

Goldie is a manager in a company that manufactures wrought iron furniture. She calculates the daily productivity by determining the amount of iron required to produce a piece of furniture. In this scenario, Goldie focuses on _____.

Accepted Answer

Goldie is focusing on partial productivity, which is a measure of productivity that considers the output or input of a single factor of production. In this case, the factor being considered is the amount of iron required to produce a piece of furniture. Internal service quality, multifactor productivity, and service recovery are not relevant in this scenario.

Question 11

Wood Hub is a manufacturer of wooden furniture. The carpenters at the factory assemble four chiseled pillars of wood and join them to a refined but unpolished plank of wood to form a table. This piece of unfinished furniture is a(n) _____.

Accepted Answer

The piece of unfinished furniture is in the process of being assembled, so it falls under the category of work-in-process inventory. It is not a raw material inventory because the individual pieces have already been chiseled and refined, and it is not a component parts inventory because the pieces have already been assembled together. Average aggregate inventory is not a relevant term in this context.

Question 12

If a machine requires 40 tons of steel to produce 30 tons of reinforced rods, the productivity of the machine is _____.

Accepted Answer

The answer of If a machine requires 40 tons of...

Question 13

According to the service-profit chain, success begins with:

Accepted Answer

According to the service-profit chain, success begins with how well management treats service employees. This is because employees who are treated well are more likely to be satisfied, engaged, and motivated, which leads to better customer service and ultimately, higher profits. Autocratic management and centralization can actually hinder employee satisfaction and engagement, while the availability of enterprising ideas is important for innovation but not necessarily the starting point for success according to the service-profit chain.

Question 14

__________processes are preestablished, occur in a serial manner, and are dedicated to making one type of product.

Accepted Answer

Line-flow production processes are preestablished, occur in a serial manner, and are dedicated to making one type of product. This type of production is also known as assembly line production.

Question 15

Which of the following characteristics of quality products is defined in terms of the average time between breakdowns?

Accepted Answer

Reliability is defined in terms of the average time between breakdowns, meaning the product can consistently perform without failure for a certain period of time. Serviceability refers to how easy it is to repair or maintain a product, while durability refers to how long a product can last without breaking down. Reciprocity is not a characteristic of quality products.

Question 16

Toysoft Corp., a company that makes plastic toys for children, recently received an order for 250 toy cars. For this order, the company has an inventory of 100 kilograms of plastic, 75 kilograms of fiberglass, 500 toy wheels, 1,000 light-emitting diode (LED) bulbs, 135 toy cars in various stages of manufacturing, and 50 completed toy cars. In this scenario, which of the following components of the inventory can be categorized under work-in-process inventory?

Accepted Answer

Work-in-process inventory includes goods that are in the process of being manufactured or assembled. In this scenario, the 135 toy cars in various stages of manufacturing are still being worked on and are considered part of work-in-process inventory. The final order of 250 toy cars is not yet in production and is not part of the inventory yet. The 50 completed toy cars are finished goods inventory, while the 500 toy wheels are raw materials inventory.

Question 17

ToySpot, a soft toy manufacturer, receives an order of 250 teddy bears. For this particular order, its total inventory includes 300 yards of fabric, 200 yards of ribbon, 250 pounds of cotton, 185 teddy bears in various stages of manufacturing, and 65 completed teddy bears. In the context of this scenario, how many teddy bears can be considered work-in-process inventory?

Accepted Answer

Work-in-process inventory refers to the products that are in various stages of production but are not yet complete. In this scenario, the 185 teddy bears in various stages of manufacturing can be considered as work-in-process inventory. The completed teddy bears (65) cannot be considered as work-in-process inventory, and neither can the raw materials (fabric, ribbon, cotton) be considered as work-in-process inventory since they have not yet been processed. The order quantity (250) is not relevant to identifying work-in-process inventory.

Question 18

In the context of the principles of total quality management (TQM),__________means collaboration between managers and nonmanagers, across business functions, and between companies, customers, and suppliers.

Accepted Answer

The principle being described is teamwork, which emphasizes the importance of collaboration and communication across all levels of an organization, as well as between different business functions and external partners. This is a key component of TQM, which seeks to involve all stakeholders in the pursuit of continuous improvement and customer satisfaction. While customer focus, variation, and continuous improvement are also important principles of TQM, they do not specifically address the need for teamwork and collaboration.

Question 19

Fit n Fine is a clothing company that is famous for its impressive standards of product quality. Recently, the company introduced a new collection of office wear that failed to grab the attention of its target customer group because of its inconsistent quality. This _____ in quality standard led the company to incur heavy losses.

Accepted Answer

The sentence mentions that the new collection of office wear had an "inconsistent quality", indicating a lack of uniformity or variation in the products. Therefore, the appropriate word to fill in the blank would be "variation". Choices A, B, and D, which imply consistency and lack of change, do not fit the context.

Question 20

Sundown Communications, a media company, recently became ISO 9000 certified. Based on this information, which of the following statements is true of Sundown Communications?

Accepted Answer

ISO 9000 certification pertains to quality management and quality assurance, indicating that Sundown Communications displays consistency in these areas. The other choices are not related to ISO 9000 certification.

Quiz 18: Managing Service and Manufacturing Operations