Question 1

__________ is the most apparent cost of inventory.

Accepted Answer

The answer of __________ is the most apparent cost of...

Question 2

Tom Thornbury, CEO of Softub, created a vendor audit team made up of 10 employees. The team spent from __________ visiting and investigating potential suppliers.

Accepted Answer

The answer of Tom Thornbury, CEO of Softub, created a...

Question 3

__________ can benefit customers by making the product more identifiable and therefore easier to find on a crowded shelf.

Accepted Answer

Packaging can benefit customers by making the product more identifiable and therefore easier to find on a crowded shelf. It can also provide important information about the product, such as nutritional value, ingredients, and usage instructions.

Question 4

Managing inventory can be compared to which of the following?

Accepted Answer

Managing inventory is like a balancing act, where one needs to find the right balance between having enough inventory to meet customer demand and not having too much inventory that can lead to excess costs and spoilage.

Question 5

__________can add value to the product, make handling and storage more convenient, reduce spoilage or damage, and make the product more identifiable.

Accepted Answer

Packaging can add value to the product by increasing its appeal and visibility, making it more convenient to handle and store, reducing the likelihood of spoilage or damage, and making it easier to identify.

Question 6

To be classified as a core competency, a factor should satisfy all of the following criteria except

Accepted Answer

The other three criteria (applicability across a range of products, difficulty for competitors to duplicate, and providing fundamental value to customers) are generally accepted as characteristics of core competencies. However, being the low-cost option for customers is not necessarily a requirement for a factor to be considered a core competency. Some core competencies may focus on providing unique value to customers rather than simply being the cheapest option.

Question 7

Which of the following is not a guideline for evaluating small business purchasing and inventory control?

Accepted Answer

The answer of Which of the following is not a...

Question 8

Arco Industries has a lean management structure, and the company avoids major new investments whenever possible. Arco has adopted which best practice for achieving a product competitive advantage.

Accepted Answer

The answer of Arco Industries has a lean management structure,...

Question 9

In establishing a product competitive advantage, which best practice should be adopted by a company in order to spread risk?

Accepted Answer

To spread risk, a company should adopt the best practice of diversifying. This means entering into new markets, expanding product offerings, or exploring new business opportunities. It helps the company to have multiple revenue streams, reducing reliance on one product or market. By diversifying, a company can also adapt to changes in the industry or economy, limiting the impact of a downturn in one area.

Question 10

Stewart has owned his own office supply store for ten years. Over time, he has noticed that about one-fifth of his customers - mainly other businesses - make up about 80 percent of total business for the office supply store. This phenomenon is known as

Accepted Answer

The phenomenon described is known as the Pareto rule or the 80/20 rule, where a small portion of customers or products account for a significant portion of sales or revenue.

Question 11

When ordering inventory, all but which of the following should be watched closely?

Accepted Answer

Time of replacement, holding costs, and ordering costs are all important factors to consider when ordering inventory. However, management costs are not directly related to inventory ordering and should not be closely watched in this context.

Question 12

The first step in the purchasing process is which of the following?

Accepted Answer

The first step in purchasing process is recognizing the need for the product or service to be purchased. The other options, investigating suppliers, selecting suppliers, and placing an order all come later in the process.

Question 13

The Pareto rule establishes that __________ of the revenue will come from __________ of the inventory.

Accepted Answer

The Pareto rule, also known as the 80/20 rule, states that 80 percent of the results come from 20 percent of the causes. In the context of inventory management, this means that 80 percent of the revenue or sales will come from 20 percent of the inventory or products. Therefore, the best choice is D.

Question 14

Factors that should be considered when evaluating vendors should include all but which of the following?

Accepted Answer

The answer of Factors that should be considered when evaluating...

Question 15

The final step in the purchasing process is

Accepted Answer

Completing an order is the final step in the purchasing process where the buyer confirms the purchase decision and places the order with the supplier. Selecting suppliers, placing an order, and inspecting an order are all steps that come before completing the order.

Question 16

In the Reality Check "Money on the Shelf" Todd Heim, owner of FutureCure, installed a state-of-the-art financial system to better track and control inventory. This system cut inventory costs by what percentage?

Accepted Answer

The answer of In the Reality Check "Money on the...

Question 17

Softub created a __________ in order to keep track of everything the audit team needed to consider in its evaluation.

Accepted Answer

Softub created a checklist to keep track of everything the audit team needed to consider in its evaluation.

Question 18

The make-or-buy decision largely rests on the availability and quality of

Accepted Answer

The make-or-buy decision primarily depends on the availability and quality of suppliers, as it directly impacts the procurement process and the quality of inputs used in the production process. The decision to make or buy a certain input is typically made based on factors such as cost, quality, lead time, and reliability of suppliers. Therefore, the correct answer is B.

Question 19

More and more businesses are working toward building

Accepted Answer

Long-term relationships with fewer suppliers allow businesses to build trust and higher quality products or services through collaboration with suppliers. It also often leads to cost savings and efficiencies in the supply chain.

Question 20

The advantage of using multiple suppliers is that

Accepted Answer

The answer of The advantage of using multiple suppliers is...

Quiz 12: Small Business Marketing: Product