Deck 13: Operations Management: Operational Dimensions

Question 1

Rationalized retailing is often used in conjunction with ________.

A) micromerchandising
B) prototype stores
C) a top-down space management approach
D) a bottom-up space management approach

Answer 1

B

Question 2

Rigid control and standardization for each phase of business characterize ________.

A) mass merchandising
B) rationalized retailing
C) positioned retailing
D) risk-minimization retailing

Answer 2

B

Question 3

The use of in-store displays and the sale of well-known national brands can effectively reduce selling costs through use of ________.

A) self-service facilities
B) just-in-time (JIT) inventory management
C) vertical merchandising
D) prototype stores

Answer 3

A

Question 4

All of the activities involved in managing the retailer's physical facilities comprise ________.

A) merchandising
B) operations management
C) energy management
D) store maintenance

Question 5

Which of these is not a benefit of using prototype stores?

A) The stores use custom buildings for each city and town.
B) The stores enable a retailer to take advantage of quantity discounts for fixtures and other materials.
C) The stores ease the employee interchange among branches.
D) The stores help portray a consistent image among franchise and chain store units.

Question 6

Uniform construction,layout,and operations standards are used in ________.

A) everyday inventory planning
B) prototype stores
C) crisis management
D) scrambled merchandising

Question 7

Which statement about energy management is not correct?

A) A retailer can reduce energy costs through adjusting a store's interior temperatures during nonselling hours.
B) The substitution of traditional bulbs with high-energy bulbs and fluorescent ballasts can significantly reduce energy costs for lighting.
C) The potential savings to a retailer with an effective energy management program are quite low.
D) Computerized systems with centralized controls that enable a retailer to control lighting, heat, and air-conditioning in each store from a single office can reduce heating, air-conditioning, and ventilating costs.

Question 8

A retailer lists all of its operations to be performed,its characteristics,and its timing in a(n)________.

A) prototype arrangement
B) standardized plan
C) operations blueprint
D) rationalized retailing arrangement

Question 9

The need for store personnel in a season,week,day,and time period is ascertained through ________.

A) job standardization
B) workload forecasts
C) cross-training
D) time-based performance adjustments

Question 10

With the top-down space management approach,a retailer starts with ________.

A) total available store space
B) the space requirements for specific products
C) central management dictates
D) a prototype store's plans

Question 11

A retailer seeks to acquire and maintain a proper assortment of merchandise while ensuring that operations are efficient and effective in ________.

A) retail operations
B) just-in-time (JIT) inventory planning
C) store maintenance
D) inventory management

Question 12

With cross-training,personnel ________.

A) are trained to sell in self-service facilities
B) have clear performance standards
C) learn tasks associated with more than one job
D) are encouraged to engage in long-term employment in the firm

Question 13

Ordering costs,holding costs,and loss in profits due to stockouts are effectively controlled in ________.

A) prototype stores
B) incremental budgeting
C) zero-based budgeting
D) inventory management

Question 14

Through ________,an employee can be easily shifted from stockperson to cashier as the need arises.

A) cross-training
B) rationalized retailing
C) risk-minimization retailing
D) job standardization

Question 15

Which of these is a not a major advantage of cross-training?

A) the ability to shift employees during peak sales periods
B) lower employee boredom
C) lower overall staffing needs during peak sales periods
D) lower overall personnel training costs

Question 16

Which of these is not a characteristic of a rationalized retailing strategy?

A) the use of prototype stores
B) the use of rigorous operating procedures for every phase of the business
C) decentralized management
D) a common store layout to all store units

Question 17

Which of the following is not an advantage of an operations blueprint?

A) The operations blueprint standardizes activities.
B) The operations blueprint helps evaluate personnel needs.
C) The operations blueprint determines space needs.
D) The operations blueprint isolates weak or failure-prone operations components.

Question 18

Supermarkets and full-line discount stores have effectively reduced personnel costs through the use of ________.

A) self-service facilities
B) prototype stores
C) vertical merchandising
D) just-in-time inventory management

Question 19

The tasks of personnel with similar positions in different departments are kept rather uniform with ________.

A) job standardization
B) rationalized retailing
C) risk-minimization retailing
D) management-by-objectives

Question 20

A characteristic of rationalized retailing programs is the ________.

A) encouragement of manufacturers to finance inventories
B) use of low-cost rental locations
C) use of used equipment and fixtures
D) high degree of centralized management control

Question 21

Store security relates to two issues: ________ and ________.

A) inventory security; cash security
B) employee security; manager security
C) personal security; merchandise security
D) employee security; customer security

Question 22

A listing and sequencing of interrelated tasks that must be performed by several retail personnel to assure that a retail service is efficiently and effectively performed is an important part of a(n)________.

A) operations blueprint
B) workload forecast
C) job standardization analysis
D) cross-training analysis

Question 23

Based upon an analysis of selected retail tasks that need to be performed in a given time period,a retailer decided to rely on self-service.This illustrates the effective use of a(n)________.

A) workload forecast
B) operations blueprint
C) job standardization analysis
D) cross-training analysis

Question 24

What type of insurance protects retailers from claims due to customers falling due to a wet floor or loose carpeting?

A) directors' liability
B) workers' compensation
C) public liability
D) product liability

Question 25

A Web-based retailer has decided to have a logistics firm handle packing,handling,and shipping responsibilities.This illustrates ________.

A) outsourcing
B) benchmarking
C) re-engineering
D) scenario analysis

Question 26

The standardization of retail operations is often associated with the use of ________.

A) participatory management
B) unionization by employees
C) decentralized decision making
D) prototype stores

Question 27

Computerized checkouts are generally used in conjunction with ________.

A) electronic article surveillance
B) quick response inventory management
C) logistics systems
D) Universal Product Code-based systems

Question 28

Contingency plans are an important component of ________.

A) operations management
B) crisis management
C) control activities
D) feedback

Question 29

Credit-card fees paid by retailers average from ________ percent to ________ percent of sales.

A) 1.5; 5
B) 2.5; 3.5
C) 3.5; 5
D) 5; 6

Question 30

Planning for contingencies such as strikes,earthquakes,and lack of electricity is part of ________.

A) insurance coverage
B) crisis management
C) reinsurance
D) productivity management

Question 31

A major advantage associated with self-scanning to a retailer is ________.

A) the ability to do away with all cashiers
B) lower pilferage losses
C) increased control over alcohol and tobacco sales
D) lower labor costs

Question 32

The use of a third-party firm handling a retailer's payroll illustrates ________.

A) outsourcing.
B) electronic article surveillance
C) self-scanning.
D) crisis management.

Question 33

A major difficulty with the use of prototype stores is the ________.

A) inconsistent store image
B) higher purchase costs for fixtures
C) inflexibility in dealing with special site characteristics
D) difficulty in applying standardized operating cost controls to different locations

Question 34

Which statement concerning electronic point-of-sale systems is not correct?

A) Electronic point-of-sale systems perform all of the tasks of a computerized checkout.
B) Electronic point-of-sale systems can verify check and charge transactions.
C) Electronic point-of-sale systems are always integrated with a retailer's in-store or headquarters computer.
D) Electronic point-of-sale systems can provide instantaneous sales reports.

Question 35

A retailer has an outside party to undertake one or more of its operating functions in ________.

A) outsourcing
B) benchmarking
C) re-engineering
D) scenario analysis

Question 36

Which system increases employee productivity for supermarkets?

A) debit-card system
B) self-scanning
C) outsourcing
D) data-base management

Question 37

The use of prototype stores is commonly associated with ________.

A) independent retailers
B) leased departments
C) chain retailers
D) retail cooperatives

Question 38

In a debit-card system,the ________.

A) retailer still has the risk of customer nonpayment
B) purchase price is immediately deducted from a consumer's bank account and then entered into the retailer's account
C) customer can either pay the full amount due immediately or defer payment
D) customer is not billed until his or her billing cycle date

Question 39

Which statement concerning computerized checkouts is not correct?

A) Computerized checkouts instantly record and display sales.
B) Computerized checkouts cannot store inventory data.
C) Computerized checkouts can reduce transaction time.
D) Computerized checkouts can reduce the need for item pricing.

Question 40

A significant advantage to a consumer of a credit card system in comparison to a debit card system is ________.

A) the delayed payment benefit
B) tightened privacy
C) higher security
D) lower cost

Question 41

Which of the following energy management strategies is most likely to have a negative impact on a retailer's atmosphere?

A) centrally managing lighting levels by each department by time of day to better reflect outside lighting conditions
B) replacing an older central air-conditioning system with a new efficient unit that requires 150 tons less capacity
C) installing high efficiency fluorescent bulbs in place of incandescent light bulbs
D) raising the temperature thermostat from 72 degrees in the summer to 74 degrees

Question 42

A retailer is concerned about such issues as trade-offs between faster delivery times from suppliers and higher shipping costs and support from suppliers in storing merchandise.These issues concern ________.

A) store security
B) inventory management
C) crisis management
D) outsourcing

Question 43

Centralized decision making is generally associated with ________.

A) micro-merchandising
B) risk-maximization retailing
C) rationalized retailing
D) category management

Question 44

Which of the following does not contribute to the difficulty in planning personnel utilization in retailing?

A) high employee turnover
B) self-service merchandising
C) inflexibility due to union issues
D) large shifts in demand due to seasonality

Question 45

A retailer can encourage long-term employment by ________.

A) using job standardization
B) utilizing self-service facilities
C) adhering to a promotion-from-within philosophy
D) developing clear employee performance standards

Question 46

A characteristic associated with the bottom-up space management approach is ________.

A) retail space costs may be high
B) the total space available may be less than that required by the plan
C) planning is centralized
D) that the needs of scrambled merchandising may not be met

Question 47

A significant disadvantage to the use of rationalized retailing is the ________.

A) high operating costs associated with standardization
B) poor possible fit with consumer preferences in all geographic markets
C) loss of quantity discounts through volume purchasing
D) need for more personnel due to decentralized decisions

Question 48

The cross-training of employees is particularly beneficial when a retailer ________.

A) has extreme seasonality
B) is open for short hours
C) is open for long hours
D) has loyal part-time workers

Question 49

Board members of public corporations can be liable for their actions that may result in the loss in value of the retailer's stock.To cover this potential loss,retailers typically provide them with ________ insurance.

A) property damage
B) directors' and officers' liability
C) public liability
D) workers' compensation

Question 50

A retailer with high seasonality can best reduce its labor costs in the peak season through ________.

A) job standardization
B) carefully screening employees
C) developing employee performance standards
D) cross-training and developing self-service options for consumers

Question 51

Rationalized retailing is often conducted in conjunction with ________.

A) micro-merchandising
B) electronic data interchange (EDI)
C) decentralized management
D) prototype stores

Question 52

A firm organizes its store maintenance operations on the basis of location.Which method of classifying jobs does the firm use?

A) product classification
B) functional classification
C) geographic classification
D) combination organization client

Question 53

Poor morale and boredom caused by extreme specialization can be overcome by ________.

A) rationalized retailing
B) the use of prototype stores
C) job specialization
D) cross-training

Question 54

The most appropriate financial performance standard for a department store retail buyer is ________.

A) customer satisfaction
B) total unit sales
C) total dollar gross profit in a department
D) total dollar sales

Question 55

The opposite strategy to rationalized retailing is ________.

A) micromerchandising
B) centralized management
C) risk-minimization retailing
D) category management

Question 56

The opposite of extreme employee specialization is ________.

A) cross-training
B) self-service merchandising
C) job standardization
D) automation

Question 57

A major advantage to the use of rationalized retailing programs is the ________.

A) low investment
B) ease of expanding the number of retail facilities
C) appeal to a well-defined market target
D) spreading of risk due to diversification

Question 58

Store security relates to both ________.

A) insurance and personal security
B) personal security and merchandise security
C) crisis management and pilferage control
D) safety management and crisis management

Question 59

Which type of insurance most directly affects employees?

A) property damage
B) directors' liability
C) public liability
D) workers' compensation

Question 60

A retailer selling products that are potentially dangerous due to misuse or manufacturer defects should get ________ insurance.

A) property damage
B) public liability
C) product liability
D) workers' compensation

Question 61

An advantage of a retailer's maintaining its own credit card plan is ________.

A) lower bad debt loss
B) economies of scale
C) ease of management
D) ability to be more flexible in demanding repayment

Question 62

Prototype stores allow each outlet to utilize standardized operating procedures,reduce construction costs,and reinforce a consistent chain image.

Question 63

Contingency planning for no store electricity,vendors being out-of-stock on key items,and strikes need to be considered in ________.

A) crisis management
B) insurance planning
C) expense allocation
D) budget planning

Question 64

A retailer can encourage long-term employment through a policy of promoting from within the firm.

Question 65

Prototype stores are commonly associated with business format franchising.

Question 66

Security and privacy issues are greatest among ________.

A) debit card systems
B) credit card systems
C) retailer-based credit cards
D) bank-based credit cards

Question 67

Job standardization and cross-training are techniques designed to increase personnel flexibility.

Question 68

Generally,there are few differences in human resource management procedures and strategies in unionized versus nonunionized retailers.

Question 69

Which credit system most closely resembles a checking account?

A) debit card system
B) revolving credit
C) PayPal
D) Google checkout

Question 70

The top-down approach to space management involves less employee participation than the bottom-up approach to space management.

Question 71

A firm cannot improve employee productivity through self-service merchandising.

Question 72

Almost all electronic point-of-sale systems rely on ________.

A) videoconferencing
B) customer databases
C) Universal Product Codes (UPC)
D) electronic data interchange (EDI)

Question 73

A retailer can reduce its bad debt on credit sales to zero by ________.

A) using third-party credit plans and debit cards
B) developing and implementing a systematic credit authorization plan
C) developing high fees for nonpayment
D) limiting credit sales to the best credit risks

Question 74

The major difference between computerized checkouts and electronic point-of-sale systems is that electronic point-of-sale systems ________.

A) are not tied into the retailer's main computer
B) do not have the capacity to print complex reports
C) are not compatible with UPC scanners
D) also verify, monitor, and change prices, as well as provide sales reports

Question 75

A retailer shifting from a retailer-based credit card system to a bank-based credit card system illustrates ________.

A) resizing
B) self-service operations
C) downsizing
D) outsourcing

Question 76

Which form of credit management system most closely resembles a check?

A) retailer-based credit system
B) debit management system
C) Discover Card
D) MasterCard Express

Question 77

The percent of cashier misrings is an example of a performance standard for a cashier.

Question 78

To the extent possible,each retail employee should have clear performance standards and be accountable for attaining them.

Question 79

There are generally cost advantages associated with the use of prototype stores.

Question 80

Inventory management programs can be facilitated through the use of ________.

A) item analysis
B) electronic article surveillance
C) computerized checkouts
D) electronic signature capture