Question 1

Which of the following types of operations are most dependent on the accuracy of sales forecasts?&#10;A) project manufacturing&#10;B) assemble-to-order operations&#10;C) make-to-order operations&#10;D) buy-to-sell operations&#10;E) make-to-stock operations

Accepted Answer

With this method, products are made before orders are received.

Question 2

The two types of productivity are:&#10;A) partial productivity and complete productivity&#10;B) multifactor productivity and partial productivity&#10;C) individual productivity and departmental productivity&#10;D) departmental productivity and organizational productivity&#10;E) organizational productivity and industry productivity

Accepted Answer

The two types of productivity are multifactor productivity, which measures the output produced in relation to multiple inputs used, and partial productivity, which measures the output produced in relation to a single input used. The other choices listed do not accurately represent the two types of productivity.

Question 3

The three principles that characterize TQM are continuous improvement, teamwork, and:&#10;A) third party certification&#10;B) delegation&#10;C) participative management&#10;D) customer focus and satisfaction&#10;E) distinctive competence

Accepted Answer

The three principles of TQM are continuous improvement, teamwork, and customer focus and satisfaction. TQM is all about meeting the needs and expectations of customers and continuously improving processes to strive for excellence.

Question 4

A product's quality is determined by its:&#10;A) reliability, homogeneity, and durability&#10;B) reliability, validity, and effectiveness&#10;C) serviceability, tangibility, and homogeneity&#10;D) durability, reliability, and serviceability&#10;E) consistency, tangibility, and durability

Accepted Answer

The three factors that determine a product's quality are durability (how long it lasts), reliability (how consistently it performs), and serviceability (how easy it is to repair). Homogeneity refers to consistency across multiple products, but is not a main factor in determining quality. Tangibility and effectiveness are important aspects of a product but are not directly related to its quality. Validity is not typically a factor in assessing a product's quality.

Question 5

It costs ten times as much to find a new customer as it does to keep an existing customer.

Accepted Answer

According to research by Invesp, it actually costs five times more to attract a new customer than to keep an existing one. However, the cost can vary depending on the industry and specific circumstances.

Question 6

Inventory is defined as the number of finished products that a company has in its possession either in the factory, in warehouses, or on delivery vehicles.

Accepted Answer

Inventory is the amount and number of raw materials, parts, and finished products that a company has in its possession.

Question 7

When a manufacturer makes a product continuously, it is using:&#10;A) project manufacturing&#10;B) continuous-flow production&#10;C) line-flow production&#10;D) batch production&#10;E) job shops

Accepted Answer

Continuous-flow production is a manufacturing process where a single type of product is produced continuously without interruption. This is also known as mass production, and it is commonly used to produce items like automobiles, electronic components, and packaged goods at high volumes and low costs. The production process is highly automated, and every step is carefully synchronized to minimize waste and maximize efficiency. Unlike batch production or job shops, which involve creating products in smaller quantities with more frequent disruptions, continuous-flow production is a highly efficient and streamlined process that can deliver high-quality products at a low cost.

Question 8

The three basic measures of inventory are inventory turnover, average aggregate inventory, and:&#10;A) inventory depreciation&#10;B) inventory amortization&#10;C) weeks of supply&#10;D) multifactor inventory&#10;E) speed of obsolescence

Accepted Answer

Weeks of supply is the third basic measure of inventory, which helps to determine the amount of time inventory will last before being exhausted.

Question 9

The term __________ refers to restoring customer satisfaction to strongly dissatisfied customers.&#10;A) service recovery&#10;B) service enhancement&#10;C) customer focus&#10;D) customer reengineering&#10;E) relationship marketing

Accepted Answer

Service recovery refers to the process of restoring customer satisfaction to strongly dissatisfied customers. It involves addressing the customer's complaint and resolving the issue in a way that leaves the customer feeling satisfied with the outcome. Service recovery is an important component of customer service and can help to retain customers who might otherwise take their business elsewhere.

Question 10

Which of the following shows the correct relationship for productivity, outputs, and inputs?&#10;A) productivity = (inputs/outputs)&#10;B) productivity = [(inputs outputs)/100]&#10;C) outputs = (productivity/inputs)&#10;D) productivity = (outputs/inputs)&#10;E) inputs = (productivity/outputs)

Accepted Answer

Productivity is calculated as the ratio of outputs to inputs. Therefore, the correct relationship is productivity = (outputs/inputs).

Deck 18: Managing Service and Manufacturing Operations: Part A