Question 1

Match the term with its definition. Some terms may not be used.
-A method of inventory control based on the use of two containers for each item in inventory, one to meet current demand and the other to meet future demand
A)ABC method
B)Associative forecasting
C)Cooperative purchasing organization
D)Cycle counting
E)Demand management strategies
F)Economic order quantity
G)Just-in-time inventory system
H)Perpetual inventory system
I)Physical inventory system
J)Poka-yoke
K)Statistical inventory control
L)Two-bin inventory system

Accepted Answer

The two-bin inventory system is the method of inventory control based on the use of two containers for each item in inventory, one to meet current demand and the other to meet future demand.

Question 2

An approach that emphasizes efficiency through elimination of waste independent of other aspects of the process is called
A) capacity management.
B) lean production.
C) synchronous management.
D) waste-less production.

Accepted Answer

The approach that emphasizes efficiency through elimination of waste independent of other aspects of the process is called lean production. Lean production focuses on creating more value with less waste and reducing resources, time, and costs while improving quality and customer satisfaction. Capacity management focuses on optimizing the use of resources to maximize production capacity, synchronous management emphasizes coordinating all aspects of the process to achieve the most efficient flow, and waste-less production is not a commonly used term in the context of operations management.

Question 3

Myra operates a punch press on a production line. Because she is slower than the operators both before and after her in the process, work stacks up at her press. Myra is a:
A) bottleneck.
B) constraint.
C) defect.
D) hazard

Accepted Answer

Myra's slower pace is causing a build-up of work at her press, creating a bottleneck in the production process. This means that the speed of the entire production process is limited by Myra's pace, making her the bottleneck. The other options, constraint, defect, and hazard, do not accurately describe the situation described in the scenario.

Question 4

Which solution to a constraint would be more long term?
A) Move maintenance times.
B) Rearrange schedules.
C) Subdivide work.
D) Expand capacity.

Accepted Answer

Expanding capacity would provide a long-term solution to the constraint, as it allows for more resources to be available to meet demand. The other options may provide temporary relief, but do not address the underlying capacity constraint in the long term.

Question 5

A suggestion for increasing outsourcing success is
A) have a back-up plan in case of supplier failure.
B) outsource the unique product of the business.
C) periodically monitor the company's progress.
D) negotiate for priority in the production schedule.

Accepted Answer

The answer of A suggestion for increasing outsourcing success is
A)...

Question 6

Match the term with its definition. Some terms may not be used.
-An index that determines the quantity to purchase in order to minimize total inventory costs
A)ABC method
B)Associative forecasting
C)Cooperative purchasing organization
D)Cycle counting
E)Demand management strategies
F)Economic order quantity
G)Just-in-time inventory system
H)Perpetual inventory system
I)Physical inventory system
J)Poka-yoke
K)Statistical inventory control
L)Two-bin inventory system

Accepted Answer

Economic order quantity is the index that determines the quantity to purchase in order to minimize total inventory costs.

Question 7

Match the term with its definition. Some terms may not be used.
-A method of controlling inventory that uses a targeted service level, allowing statistical determination of the appropriate amount of inventory to carry
A)ABC method
B)Associative forecasting
C)Cooperative purchasing organization
D)Cycle counting
E)Demand management strategies
F)Economic order quantity
G)Just-in-time inventory system
H)Perpetual inventory system
I)Physical inventory system
J)Poka-yoke
K)Statistical inventory control
L)Two-bin inventory system

Accepted Answer

Statistical inventory control is defined as a method of controlling inventory that uses a targeted service level, allowing statistical determination of the appropriate amount of inventory to carry. None of the other terms match this definition.

Question 8

The buying of products or services from a third party to manage a firm's functions is known as
A) asset efficiency.
B) diversification of supplies.
C) importing.
D) outsourcing.

Accepted Answer

Outsourcing refers to the purchasing of products or services from a third-party vendor to manage a firm's functions, which can include anything from manufacturing to administrative support. This allows companies to focus on their core competencies while leaving non-core activities to outsourcing partners.

Question 9

Match the term with its definition. Some terms may not be used.
-A method of reducing inventory carrying costs by making or buying what is needed just as it is needed
A)ABC method
B)Associative forecasting
C)Cooperative purchasing organization
D)Cycle counting
E)Demand management strategies
F)Economic order quantity
G)Just-in-time inventory system
H)Perpetual inventory system
I)Physical inventory system
J)Poka-yoke
K)Statistical inventory control
L)Two-bin inventory system

Accepted Answer

Just-in-time inventory system is the method of reducing inventory carrying costs by making or buying what is needed just as it is needed.

Question 10

Aaron operates a lemonade stand in the New York City's Central Park. His business is seasonal but within those seasons several other factor influence the demand for lemonade. Aaron is most likely to use _______________ to help him predict demand on a daily basis.
A) associative forecasting
B) linear regression
C) historical sales data
D) the weather report

Accepted Answer

The answer of Aaron operates a lemonade stand in the...

Question 11

Match the term with its definition. Some terms may not be used.
-Operational strategies used to stimulate customer demand when it is normally low
A)ABC method
B)Associative forecasting
C)Cooperative purchasing organization
D)Cycle counting
E)Demand management strategies
F)Economic order quantity
G)Just-in-time inventory system
H)Perpetual inventory system
I)Physical inventory system
J)Poka-yoke
K)Statistical inventory control
L)Two-bin inventory system

Accepted Answer

Demand management strategies are operational strategies used to stimulate customer demand when it is normally low.

Question 12

Match the term with its definition. Some terms may not be used.
-A method for counting different segments of the physical inventory at different times during the year
A)ABC method
B)Associative forecasting
C)Cooperative purchasing organization
D)Cycle counting
E)Demand management strategies
F)Economic order quantity
G)Just-in-time inventory system
H)Perpetual inventory system
I)Physical inventory system
J)Poka-yoke
K)Statistical inventory control
L)Two-bin inventory system

Accepted Answer

Cycle counting is a method for counting different segments of the physical inventory at different times during the year.

Question 13

Cooperative purchasing organizations for small businesses are more successful now because of the:
A) acceptance of coops as a business model by suppliers.
B) diversification of numerous global suppliers.
C) increased use of the Internet to locate more suppliers.
D) use of crowdsourcing to locate new suppliers.

Accepted Answer

The increased use of the Internet to locate more suppliers has significantly contributed to the success of cooperative purchasing organizations for small businesses. It allows these organizations to easily find and connect with a wide range of suppliers globally, enhancing their purchasing power and options.

Question 14

Match the term with its definition. Some terms may not be used.
-A system of classifying items in inventory by relative value
A)ABC method
B)Associative forecasting
C)Cooperative purchasing organization
D)Cycle counting
E)Demand management strategies
F)Economic order quantity
G)Just-in-time inventory system
H)Perpetual inventory system
I)Physical inventory system
J)Poka-yoke
K)Statistical inventory control
L)Two-bin inventory system

Accepted Answer

The ABC method is a technique for classifying inventory items based on their value, with "A" items being the most valuable, "B" items being of moderate value, and "C" items being the least valuable. This method helps organizations focus their resources and management efforts on the most important items.

Question 15

The approach that recognizes the assets and activities of the company are interdependent and should be managed so as to maximize the company's performance is
A) capacity management.
B) lean production.
C) synchronous management.
D) waste-less production.

Accepted Answer

Synchronous management is a holistic approach that considers all aspects of a company's assets and activities and manages them in an integrated way to improve overall performance. This includes optimizing capacity, minimizing waste, and implementing lean production principles.

Question 16

The most important reason why a small business should build good relationships with large suppliers is
A) forecasting can be made easier with the suppliers input.
B) it will make the small business stand out from other firms buying from the supplier.
C) the need for the small business to have prices as low as possible on purchases.
D) the relationship can make the small business more competitive.

Accepted Answer

Building good relationships with large suppliers can help small businesses become more competitive by potentially receiving better pricing, access to exclusive products, and improved payment terms. Additionally, having a strong relationship with a supplier can lead to opportunities for collaboration and partnerships in the future.

Question 17

Of the following, which is of greatest concern to a production manager?
A) a bottleneck
B) capacity waste
C) a constraint
D) overproduction

Accepted Answer

Constraints represent the maximum limit of production capacity and therefore, identifying and managing constraints is of utmost importance for a production manager to ensure optimal utilization of resources and meeting production targets. A bottleneck and overproduction can be addressed by identifying and managing constraints. Capacity waste is a concern but can be addressed once constraints have been identified and managed.

Question 18

Terrell is trying to decide whether to concentrate his purchases with one supplier or diversify with two or three. One factor in favor of a single supplier is:
A) insurance against interruptions caused by strikes.
B) a particular supplier's superiority in product quality.
C) knowing the customer's loyalty, the supplier may provide better prices and service.
D) locating the best source in terms of price, quality and service with each purchase.

Accepted Answer

The answer of Terrell is trying to decide whether to...

Question 19

Sam's company can either make the components or buy them. He should decide to buy components from a supplier (as opposed to making them):
A) when his plant has excess plant capacity.
B) when buying the components will require greater flexibility on the firm's part to accommodate the supplier.
C) if product quality would be the same (regardless of the firm's decision).
D) if the risk of equipment obsolescence can be transferred to the supplier.

Accepted Answer

By buying components from a supplier, Sam can transfer the risk of equipment obsolescence to the supplier. This way, Sam's company will not have to worry about technology changes and can focus on their core competencies.

Question 20

Shoichiro Toyoda, former president of Toyota Motors, built on Ford's concepts and focused on the need to eliminate waste from the production system. He followed a(n) _______ approach.
A) assembly line
B) distribution
C) lean production
D) synchronous production

Accepted Answer

Shoichiro Toyoda followed a lean production approach, which focuses on eliminating waste and increasing efficiency in the production process. This approach was developed by Toyota and is now used by many companies worldwide. It involves continuous improvement, just-in-time production, and a focus on customer value.

Quiz 21: Managing Operations

Match the term with its definition. Some terms may not be used. -A method of inventory control based on the use of two containers for each item in inventory, one to meet current demand and the other to meet future demand

An approach that emphasizes efficiency through elimination of waste independent of other aspects of the process is called

Myra operates a punch press on a production line. Because she is slower than the operators both before and after her in the process, work stacks up at her press. Myra is a:

Which solution to a constraint would be more long term?

A suggestion for increasing outsourcing success is

Match the term with its definition. Some terms may not be used. -An index that determines the quantity to purchase in order to minimize total inventory costs

Match the term with its definition. Some terms may not be used. -A method of controlling inventory that uses a targeted service level, allowing statistical determination of the appropriate amount of inventory to carry

The buying of products or services from a third party to manage a firm's functions is known as

Match the term with its definition. Some terms may not be used. -A method of reducing inventory carrying costs by making or buying what is needed just as it is needed

Aaron operates a lemonade stand in the New York City's Central Park. His business is seasonal but within those seasons several other factor influence the demand for lemonade. Aaron is most likely to use _______________ to help him predict demand on a daily basis.

Match the term with its definition. Some terms may not be used. -Operational strategies used to stimulate customer demand when it is normally low

Match the term with its definition. Some terms may not be used. -A method for counting different segments of the physical inventory at different times during the year

Cooperative purchasing organizations for small businesses are more successful now because of the:

Match the term with its definition. Some terms may not be used. -A system of classifying items in inventory by relative value

The approach that recognizes the assets and activities of the company are interdependent and should be managed so as to maximize the company's performance is

The most important reason why a small business should build good relationships with large suppliers is

Of the following, which is of greatest concern to a production manager?

Terrell is trying to decide whether to concentrate his purchases with one supplier or diversify with two or three. One factor in favor of a single supplier is:

Sam's company can either make the components or buy them. He should decide to buy components from a supplier (as opposed to making them) :

Shoichiro Toyoda, former president of Toyota Motors, built on Ford's concepts and focused on the need to eliminate waste from the production system. He followed a(n) _______ approach.