Deck 12: Operating for Success

Question 1

Lost sales and goodwill are potentially significant costs that may arise from ________.

A) too little inventory
B) too much inventory
C) Both A and B
D) poor customer service with inventory

Answer 1

A

Question 2

Explain the traditional production-distribution chain.

Answer 2

The manufacturer (or producer) creates the goods and sells them to a wholesaler (or distributor) who in turn sells them to a retailer where the final consumer purchases them.

Question 3

________ are the amounts of inventory or raw materials and work-in-process kept to guarantee service levels.

A) Safety stock levels
B) Sufficiency levels
C) Minimum lots
D) Minimum-Maximum balance

Answer 3

A

Question 4

If you are considering starting a business venture in your home, thoroughly investigate zoning ordinances, civic association rules, and ________.

A) the neighborhood
B) deed restrictions
C) distance from the Interstate
D) proximity to city hall

Question 5

Which of the following is not a step in the production-distribution chain?

A) A retailer buys 6 rings.
B) A consumer enters a jewelry shop and buys a ring.
C) A consumer wears jewelry to work.
D) A goldsmith crafts 10 rings.

Question 6

The set of actions that produce goods and services is called ________.

A) shipping
B) operations
C) manufacturing
D) processing

Question 7

Factors to consider when selecting a ________ include charging a price you are willing to pay and timely delivery.

A) customer
B) supplier
C) sales representative
D) manufacturer

Question 8

A critical component of Supply Chain Management is ________.

A) identifying and securing suppliers
B) managing inventory
C) Both of the above.
D) Neither of the above.

Question 9

Tell how to calculate Reorder Point (ROP) and Economic Order Quantity (EOQ).

Question 10

The inventory method where you look at the inventory on hand, and when the stock level of an item appears to be low, you reorder is called ________.

A) basic control
B) proximal management
C) estimation
D) visual control

Question 11

If the lead time for garage doors is 2 weeks, and you sell 100 doors per week, and you always want at least 20 doors in stock, what is the Reorder Point?

A) 320
B) 220
C) 420
D) 440

Question 12

The amount of inventory to order that will total the minimum total ordering and holding costs is called the ________.

A) Economic Order Quantity (EOQ)
B) Economic Reorder Point (ERP)
C) Reorder Point (ROP)
D) Cost Accounting Point

Question 13

________ is the management of sourcing, procuring, production, and logistics to go from raw materials to end consumers across multiple intermediate steps.

A) Supply Chain Management
B) Total Quality Management
C) The Production-Distribution Chain
D) Supply Channel

Question 14

The three factors included in the calculation of the Reorder Point are ________.

A) demand, lead time, and safety stock
B) supply, price, and safety stock
C) demand, inventory, and price
D) supply, demand, and holding costs

Question 15

The factor-rating for location decisions uses criteria that are prioritized but not weighted. The purpose is to eliminate subjective considerations.

Question 16

Which of the following is not a key factor in deciding on a location for the business?

A) access to suppliers
B) access for customers
C) proximity to your accountant
D) labor pool

Question 17

Suppliers may be found through ________.

A) newspapers and magazines
B) trade shows, conferences, and catalogs
C) All of the above.
D) None of the above.

Question 18

Manufacturing, warehousing, and ________ have similar considerations for the type and size of facility.

A) retailing firms
B) services firms
C) distribution firms
D) not-for-profit organizations

Question 19

________ permit businesses to deliver what is promised when it is promised.

A) Expeditors
B) Operations
C) Sales
D) Brokers

Question 20

The visual control approach to inventory management is a scientific method.

Question 21

Home-based entrepreneurs have special considerations other businesses don't have.

Question 22

________ are three of the eight quality management principles for organizational improvement.

A) Conflicted supplier relationships, process approach, and leadership
B) Customer focus, leadership, and policy approach
C) Customer focus, continual improvement, and involvement of people
D) Continuous improvement, cost control, employee motivation

Question 23

The family of standards for quality management systems established by the International Organization for Standardization is ________.

A) ISO9000
B) ISO8800
C) ISO2008
D) ISO 14000

Question 24

Which of the following is given by the President of the United States?

A) Malcolm Baldrige National Quality Award
B) ISO9000:2001
C) Benchmarking Excellence Award
D) National Merit for Success Award

Question 25

One sub-methodology employed in Six Sigma is DMAIC which stands for ________.

A) describe, measure, assess, improve, and control
B) define, measure, analyze, improve, and control
C) define, minimize, assess, improve, and collect
D) describe, maximize, analyze, improve, and compact

Question 26

Retail point-of-sales systems, restaurant menu order systems, and concert venue ticketing systems are all examples of ________.

A) custom software applications
B) industry-specific technology
C) systems for large businesses
D) indirect marketing

Question 27

Which of the following is not part of process management?

A) measuring tasks
B) optimizing tasks
C) monitoring tasks
D) costing tasks

Question 28

Organizations applying for the Baldrige Award are judged on ________.

A) customer and market focus
B) leadership and strategic planning
C) process management and human resources focus
D) All of the above.

Question 29

Engineers from what company developed Six Sigma in the 1980s?

A) Intel
B) General Motors
C) Motorola
D) General Electric

Question 30

The central focus of total quality management (TQM) is continuous improvement.

Question 31

Comparing one company's performance against that of other companies in the same industry or against best practices, standards, or certification criteria is called ________.

A) quality comparison
B) profiling
C) benchmarking
D) qualify deployment

Question 32

Compare and contrast 2 organization-wide quality initiatives such as Lean Manufacturing, Benchmarking, ISO9000, Six Sigma, TQM, and Baldrige.

Question 33

In general, a web site or electronic storefront is not necessary for retail businesses.

Question 34

A measure of quality that may be used in Total Quality Management (TQM) is ________.

A) on-time delivery
B) compliance with product specifications
C) repeat rates
D) All of the above.

Question 35

What organization administers the Malcolm Baldrige National Quality Award?

A) United Nations (UN)
B) National Aeronautical and Space Administration (NASA)
C) National Institute of Standards and Technology (NIST)
D) National Merit Award Administration (NMAA)

Question 36

The statistical methods, within Six Sigma, are designed to eliminate defects to a failure rate of ________ defects per one million opportunities, or a 99.9997% success rate.

A) 3.4
B) 34
C) 0.34
D) )344

Question 37

A ________ for technology is important for decision-making before investment.

A) trial subscription
B) consultant
C) cost/benefit analysis
D) competition research

Question 38

________, an American economist, argued that business should focus on making quality products instead of maximizing profits - and that profit would follow.

A) Conrad Hilton
B) W. Edwards Deming
C) Paul Samuelson
D) Adam Smith

Question 39

What steps can an organization take to incorporate technology and why might they be beneficial (name at least 3)?

Question 40

Explain why "profits follow quality."