Question 1

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Accepted Answer

The description of the process involves multiple factors, including labor, electricity, and materials, that all contribute to the productivity of the company. Therefore, the best choice is a multifactor analysis. Segregated analysis would involve isolating one factor and analyzing its impact on productivity, which is not appropriate in this scenario. Functional analysis would involve breaking down each step in the process, which is not necessary for the CEO's comparison with competitors. Integrated analysis would involve analyzing how different parts of the company work together, which is also not necessary for this comparison.

Question 2

is a measure of performance that indicates how many inputs it takes to produce or create an output.

Accepted Answer

Productivity measures the efficiency of a system or process in terms of inputs required to produce outputs. It is calculated as the ratio of output per unit of input.

Question 3

If the manager of a company that manufactures signs was interested in how much glass tubing was needed to produce a Las Vegas casino neon sign, the manager would be interested in productivity.

Accepted Answer

Partial productivity measures the ratio of output to one input factor. In this case, the manager is interested in the amount of glass tubing needed (an input) to produce a neon sign (an output). Therefore, partial productivity is the most appropriate measure.

Question 4

The four kinds of costs incurred with inventory maintenance are ordering costs, setup costs, transaction costs, and stockout costs.

Accepted Answer

The four kinds of costs associated with inventory maintenance are: (1) ordering, (2) setup, (3) holding, and (4) stockout. Transaction costs are one type of stockout cost.

Question 5

In general, the lower the number of inventory turns, the more efficiently the marketing department is operating.

Accepted Answer

The statement is incorrect. The lower the number of inventory turns, the less efficiently the marketing department is operating as it indicates that the products are not selling quickly and are sitting in inventory for a longer period of time. A higher number of inventory turns indicates that the marketing department is operating more efficiently as products are selling quickly and not sitting idle in the inventory.

Question 6

The three basic measures of inventory are average aggregate inventory, weeks of supply, and inventory turnover.

Accepted Answer

This statement is true. Average aggregate inventory measures the average amount of inventory a business carries over a period of time, whereas weeks of supply measures how long the inventory will last based on current demand. Inventory turnover measures how quickly a business sells and replaces its inventory.

Question 7

Which of the following shows the correct relationship for productivity, outputs, and inputs?

Accepted Answer

Productivity is defined as the amount of output produced for every unit of input used. Therefore, the correct relationship would be productivity = outputs/inputs.

Question 8

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Accepted Answer

The passage discusses measuring productivity by directly comparing an individual company's productivity to that of its competitors. This type of analysis requires the use of multifactor productivity, which takes into account multiple factors such as labor, capital, and energy. Therefore, the best choice is E, which includes multifactor and partial productivity measures.

Question 9

Stockout costs are incurred when a company runs out of finished products.

Accepted Answer

Stockout costs include lost sales revenue, rush ordering costs, and potential damage to customer relationships.

Question 10

productivity shows how much labor, capital, materials, and energy it takes to create an output.

Accepted Answer

Multifactor productivity takes into account multiple factors, such as labor, capital, materials, and energy, to determine the efficiency of a production process. Temporal productivity only considers time, functional productivity focuses on specific functions within a process, continuous productivity measures output over time, and quantitative productivity refers to the use of numerical data to measure productivity.

Question 11

The easier it is to maintain a working product or fix a broken product, the more that product appears.

Accepted Answer

A product that is easily serviceable means that it can be repaired or maintained easily, which increases its reliability and durability in the long run. Therefore, the best choice is B.

Question 12

Make-to-stock operations are highly dependent on the accuracy of sales forecasts.

Accepted Answer

Make-to-stock operations produce goods in anticipation of demand and therefore rely heavily on accurate sales forecasts to determine the amount and timing of production. If the forecasts are inaccurate, there is a risk of excess inventory or stockouts, both of which can have negative financial impacts on the business.

Question 13

The American Society for Quality defines quality as .

Accepted Answer

The American Society for Quality defines quality as the characteristics of a product or service that satisfy customers' needs, which is essentially choice A. The other choices do not accurately reflect the definition given by the ASQ.

Question 14

Which of the following statements about productivity is true?

Accepted Answer

Higher productivity for companies means that they are able to produce more goods or services with the same amount of resources or in the same amount of time. This can lead to lower costs, as the company is able to achieve the same output with less input. This can result in lower prices for customers and higher profits for the company. Option A is incorrect because productivity is a measure of output per unit of input, not benefits divided by costs. Option C is incorrect because higher productivity is generally associated with higher standard of living due to increased economic growth and higher wages. Option D is incorrect because productivity decreases lead to higher costs as more input is needed to produce the same output.

Question 15

The product quality characteristic of is defined as the mean time before product failure.

Accepted Answer

The answer of The product quality characteristic of is defined...

Question 16

Economic order quantity is intended for use with independent demand systems.

Accepted Answer

Economic order quantity (EOQ) is a formula that is used to calculate the optimal quantity of inventory to order based on certain assumptions, including that the demand for the product is independent and steady. Therefore, EOQ is intended for use with independent demand systems.

Question 17

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 18

To effectively manage inventory, a manager should use EOQ formulas when inventory levels are independent, and
JIT and MRP when inventory levels are dependent on the number of products to be produced.

Accepted Answer

EOQ formulas are useful for managing inventory levels when they are independent of the number of products to be produced. On the other hand, JIT and MRP are useful when inventory levels are dependent on the number of products to be produced.

Question 19

Why is productivity important to countries?

Accepted Answer

One way productivity leads to a higher standard of living is through increased wages.

Question 20

Which of the following is an important characteristic of a quality product?

Accepted Answer

Reliability is an important characteristic of a quality product as it refers to the product's ability to perform consistently and without error over time. This is essential for gaining customers' trust and satisfaction. Validity, responsiveness, homogeneity, and tangibility are also important attributes, but they are not as critical to a product's quality as reliability.

Quiz 18: Managing Service and Manufacturing Operations

34. The CEO of a company that manufactures maple wooden cutting boards has determined that it takes wood, labor, and electricity to make one maple cutting board. The CEO has determined the he can compare its operation with that of its competition.