Question 1

The goal of inventory management is to:
A)hold down costs and maintain accurate levels of inventory
B)buy as much as possible
C)hold as much as possible in stock
D)always buy the cheapest raw material
E)maintain quality control

Accepted Answer

The primary goal of inventory management is to minimize costs associated with holding inventory while ensuring there is enough stock to meet demand without overstocking. This involves maintaining accurate inventory levels to avoid shortages and excesses.

Question 2

_____ is a computerized resource planning system that includes information about the firm's suppliers and customers as well as data generated internally.
A)Enterprise resource planning (ERP)
B)Manufacturing resource planning II (MRPII)
C)The PERT chart
D)Manufacturing resource planning (MRP)
E)Computer-aided resource planning (CARP)

Accepted Answer

Enterprise Resource Planning (ERP) systems integrate internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application, facilitating the flow of information between all business functions inside the organization and managing connections to outside stakeholders.

Question 3

One of the keys to successful production planning is resource management._____ is a system that would note how a possible strike in an Evanston, Indiana, plant will threaten supplies of a needed component part as well as how customer growing preference for time-saving devices such as the company markets and use this information in production planning.
A)Enterprise resource planning (ERP)
B)Manufacturing resource planning II (MRPII)
C)The PERT chart
D)Manufacturing resource planning (MRP)
E)Computer-aided resource planning (CARP)

Accepted Answer

Enterprise Resource Planning (ERP) systems integrate various functions of a business, including production planning, supply chain management, and customer preferences, to ensure efficient operation and planning. This capability to consider both internal and external factors, such as a potential strike affecting supplies and changing customer preferences, is characteristic of ERP systems.

Question 4

Some of the quickest emergency assistance to victims of Hurricane Katrina did not come from the American Red Cross or FEMA.It came from Wal-Mart.Millions of people were displaced or otherwise affected by the Gulf Coast calamity.Many waited for days as agencies struggled to provide assistance.Wal-Mart moved faster than traditional emergency aid groups because the retail giant has mastered:
A)channel power management
B)distribution smoothing
C)participative channel management
D)supply chain management
E)strategic allying

Accepted Answer

Wal-Mart's rapid response to Hurricane Katrina's aftermath was largely due to its expertise in supply chain management, which enabled the company to quickly mobilize and distribute necessary supplies to the affected areas.

Question 5

The _____ is the entire sequence of securing inputs, producing goods, and delivering goods to a customers.
A)production life cycle
B)supply chain
C)channel of distribution
D)product life cycle
E)demand chain

Accepted Answer

The supply chain encompasses the entire process of securing inputs, manufacturing products, and delivering them to customers, making it the correct choice.

Question 6

Good routing procedures:
A)continuously confirm the efficiency of the site location
B)ensures the availability of needed materials in a timely fashion
C)increase productivity
D)set up bottlenecks
E)do all of the above

Accepted Answer

Good routing procedures help streamline processes and reduce delays, which in turn increases productivity.

Question 7

Manufacturing resource planning II (MRPII):
A)was developed by the Japanese at the same they developed just-in-time systems
B)considers both the external and the internal environment
C)is used to make production planning decisions, such as facility layout and site selection
D)is a complex computerized system for generating production plans
E)is the computerized version of a PERT chart

Accepted Answer

MRPII is a complex computerized system for generating production plans.

Question 8

Which of the following is a useful tool for routing?
A)enterprise resource planning (ERP)
B)manufacturing resource planning II (MRPII)
C)value-stream mapping
D)manufacturing resource planning (MRP)
E)computer-aided resource planning (CARP)

Accepted Answer

Value-stream mapping is a tool used to analyze and design the flow of materials and information required to bring a product or service to a consumer, making it useful for routing.

Question 9

The two key aspects of production control are:
A)routing and inventory management
B)inventory and raw material availability
C)routing and scheduling
D)raw material availability and scheduling
E)labor management and raw material availability

Accepted Answer

Routing and scheduling are the two key aspects of production control. Routing determines the path and sequence of operations, while scheduling allocates resources and sets timelines for production tasks.

Question 10

Manufacturing resource planning II (MRPII):
A)generates production plans for the firm
B)uses a complex computerized system to integrate data from many departments
C)lets managers make more accurate forecasts than with older systems
D)can assess the impact of production plans on company profitability
E)does all of the above

Accepted Answer

Manufacturing Resource Planning II (MRPII) is an integrated method of operational and financial planning for manufacturing companies, which includes generating production plans, using complex computer systems to integrate data across departments, enabling managers to make more accurate forecasts, and assessing the impact of production plans on company profitability.

Question 11

_____ focuses on smoothing transitions along the supply chain so that the firm can satisfy its customers with quality products and services while focusing on forging tighter bonds with its suppliers.
A)Channel power management
B)Distribution smoothing
C)Participative channel management
D)Supply chain management
E)Partnering distribution

Accepted Answer

Supply chain management is the correct answer because it involves coordinating and integrating these flows both within and among companies with the goal of producing and distributing merchandise at the right quantities, to the right locations, and at the right time, while minimizing costs and satisfying service-level requirements. This includes smoothing transitions along the supply chain to satisfy customers with quality products and services and forging tighter bonds with suppliers.

Question 12

Staples, the office supply chain, allows its business customers to purchase all of the office supplies they need through the Staples Web site.Businesses that use this service are engaged in:
A)e-procurement
B)computer-assisted buying
C)Internet purchasing
D)e-tailing
E)e-management of inventory

Accepted Answer

E-procurement refers to the electronic purchasing of goods and services, which is what businesses are doing when they buy office supplies through the Staples website.

Question 13

Many companies keep a continuously updated list of inventory levels, orders, sales, and receipts.This is called a(n) _____ inventory.
A)perpetual
B)just-in-time
C)month-to-month
D)coordinating
E)all-encompassing

Accepted Answer

A perpetual inventory system keeps a continuously updated record of inventory, reflecting current stock levels, orders, sales, and receipts in real-time.

Question 14

Supply chain management:
A)is based on the concept of just-in-time
B)focuses on removing scheduling bottlenecks within the company
C)focuses on the internal routing of products from raw materials to finished goods
D)is a complex computerized system for managing resources efficiently
E)is accurately described by none of the above

Accepted Answer

Supply chain management encompasses a broader scope than just-in-time, scheduling, or internal routing. It involves the management of the entire flow of goods and services, including all processes that transform raw materials into final products, across multiple organizations.

Question 15

Which of the following statements about reverse auctions is true?
A)Large manufacturers do not engage in reverse auctions.
B)There are no risks associated with reverse auctions.
C)Reverse auctions are an effective procurement process for critical production materials.
D)In a reverse auction, potential suppliers bid against each other.
E)None of the above statements about reverse auctions is true.

Accepted Answer

In a reverse auction, potential suppliers bid against each other to win the business of a buyer, typically lowering their prices to outbid competitors. This is a common and defining feature of reverse auctions.

Question 16

Electronic data interchange (EDI) is an important communications tool for:
A)supply chain management
B)manufacturing resources planning
C)just-in-time
D)PERT charts
E)flexible manufacturing systems

Accepted Answer

EDI is a communication tool used to exchange data between businesses electronically. It is used in supply chain management to improve efficiency and reduce costs.

Question 17

_____ uses a master computerized system to ensure that materials, labor, and equipment are available for production.
A)Perpetual inventory
B)The materials adjustment system
C)Materials requirement planning
D)Controlled assembly plan
E)Raw material coordination planning

Accepted Answer

Materials Requirement Planning (MRP) is a system used to manage manufacturing processes by ensuring that materials, labor, and equipment are available for production when needed. It helps in planning inventory and production schedules efficiently.

Question 18

The first step in controlling production is:
A)production planning
B)routing
C)finding suppliers
D)streamlining the production process
E)locating production bottlenecks

Accepted Answer

The answer of The first step in controlling production is:
A)production...

Question 19

One useful tool for routing is _____, where production managers "map" the flow from suppliers through the factory to customers.
A)value-stream mapping
B)production charting
C)route visualization
D)bottleneck identification
E)process mapping

Accepted Answer

Value-stream mapping is a tool that helps production managers visualize the flow of materials and information from suppliers through the factory to customers. It can be used to identify bottlenecks and inefficiencies in the production process.

Question 20

When an operations manager engages in _____, he or she has purchased raw material or component parts on the Internet.
A)e-procurement
B)computer-assisted buying
C)Internet purchasing
D)e-tailing
E)e-management of inventory

Accepted Answer

E-procurement refers to the process of purchasing goods or services via electronic means, primarily the Internet.

Quiz 10: Achieving World-Class Operations Management

The goal of inventory management is to:

_____ is a computerized resource planning system that includes information about the firm's suppliers and customers as well as data generated internally.

The _____ is the entire sequence of securing inputs, producing goods, and delivering goods to a customers.

Good routing procedures:

Manufacturing resource planning II (MRPII) :

Which of the following is a useful tool for routing?

The two key aspects of production control are:

Manufacturing resource planning II (MRPII) :

_____ focuses on smoothing transitions along the supply chain so that the firm can satisfy its customers with quality products and services while focusing on forging tighter bonds with its suppliers.

Staples, the office supply chain, allows its business customers to purchase all of the office supplies they need through the Staples Web site.Businesses that use this service are engaged in:

Many companies keep a continuously updated list of inventory levels, orders, sales, and receipts.This is called a(n) _____ inventory.

Supply chain management:

Which of the following statements about reverse auctions is true?

Electronic data interchange (EDI) is an important communications tool for:

_____ uses a master computerized system to ensure that materials, labor, and equipment are available for production.

The first step in controlling production is:

One useful tool for routing is _____, where production managers "map" the flow from suppliers through the factory to customers.

When an operations manager engages in _____, he or she has purchased raw material or component parts on the Internet.