Question 1

__________ is the operations management planning function that searches for quality material resources,finds the best suppliers,and negotiates the best price.

Accepted Answer

Purchasing involves the process of searching for quality material resources, finding the best suppliers, and negotiating the best price. Marketing focuses on promoting and selling products and services, while collective bargaining involves negotiation between employers and employees for better working conditions and pay. Bartering is a system of exchange where goods or services are traded without the use of money.

Question 2

Firms often use a(n)_____________ when working on a major project involving the production of a large item such as an airplane,ship,or bridge.

Accepted Answer

A fixed-position layout is used when working on a major project involving the production of a large item such as an airplane, ship, or bridge. In this layout, the item being produced is too large or too difficult to move through a production line, so the materials, workers, and equipment are brought to the site where the item is being built.

Question 3

According to the Making Ethical Decisions box,titled,"Stay or Leave?",a firm must give its employees _______________ before closing and/or moving to another location.

Accepted Answer

According to the Making Ethical Decisions box, a firm must give its employees 60 days notice before closing and/or moving to another location. This allows employees to have adequate time to search for new jobs and make necessary accommodations. Option D is the only one that reflects this requirement. Therefore, D is the best choice.

Question 4

To reduce the cost of holding too much inventory,many companies have implemented:

Accepted Answer

Just-in-time inventory control is the best choice for reducing the cost of holding too much inventory. It involves obtaining inventory only when it is needed in the production process, thus minimizing the amount of inventory held at any given time. This reduces the costs associated with storing, managing, and insuring inventory, as well as the risk of inventory becoming obsolete or outdated. ABC inventory management and maximum inventory management may help optimize inventory levels, but they do not necessarily reduce overall costs. First-in, last-out inventory control may be useful in certain industries but is not as effective as just-in-time inventory control in reducing costs.

Question 5

MRP is a technique that helps managers:

Accepted Answer

MRP (Material Requirements Planning) is a technique used to ensure that the right parts and materials are available at the right time for manufacturing. It helps managers plan and control inventory levels, production schedules, and purchasing activities to meet the needs of customers while minimizing costs. Therefore, the correct option is D.

Question 6

In manufacturing,a __________ is used to produce large quantities of a few types of products.

Accepted Answer

A product layout is designed to produce large quantities of a few types of products. It is efficient because it allows for specialization of labor and the use of standardized equipment, leading to higher productivity and lower costs. Process layouts, modular layouts, and fixed-position layouts are better suited for custom products, smaller volumes, or products with complex and diverse components.

Question 7

Modular facilities layouts consist of:

Accepted Answer

The answer of Modular facilities layouts consist of:
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Question 8

A major trend in business is __________,where employees work at least part time at home using a computer and modem.

Accepted Answer

Telecommuting is the practice of employees working from home using technology to connect with their office and colleagues. It is a growing trend in business as it allows for increased flexibility, reduced commuting time, and improved work-life balance. Outsourcing refers to companies hiring external parties to perform certain functions or tasks, while "riveting" and "outbounding" are not related to this trend.

Question 9

Unlike an assembly line where workers perform only a few tasks,in a _________ layout,teams of workers combine to perform a variety of tasks needed to produce more complex units of a final product.

Accepted Answer

A modular layout is designed to allow teams of workers to perform a variety of tasks needed to produce more complex units of a final product, unlike an assembly line where workers perform only a few tasks. Spoke and wheel, network, and cluster layouts are not designed for this type of teamwork.

Question 10

MRP is the acronym for:

Accepted Answer

MRP stands for Materials Requirement Planning, which is a software-based production planning and inventory control system that helps in managing and optimizing the use of raw materials, production scheduling, and inventory levels.

Question 11

Today manufacturers are relying more heavily on:

Accepted Answer

The answer of Today manufacturers are relying more heavily on:
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Question 12

Operations management becomes a(n)____________ when companies outsource several processes and create a network of firms that cooperatively produce products and services.

Accepted Answer

When companies outsource several processes and create a network of firms that cooperatively produce products and services, it is referred to as an interfirm process. This involves the coordination and management of processes that are jointly performed by multiple firms.

Question 13

__________ is the physical arrangement of resources in the production process.

Accepted Answer

Facility layout refers to the physical arrangement of resources, including equipment, machinery, and personnel, in the production process. Facility location refers to the selection of a suitable site or location for the facility. ERP (Enterprise Resource Planning) is a software system used to manage business operations, including production. RRL is not a commonly used acronym in relation to production processes.

Question 14

ERP is the acronym for:

Accepted Answer

ERP stands for Enterprise Resource Planning, which is a software system designed to manage and integrate a company's key operational processes. It covers areas such as finance, human resources, procurement, inventory, and manufacturing. Option A, B, and D are not relevant and not associated with the concept of ERP.

Question 15

The operations planning practice of inputting sales forecasts into computer software that accurately predicts the amount and timing of materials needed to complete products and projects is _______________.

Accepted Answer

The practice described in the question is known as Materials Requirement Planning (MRP), which involves using software to forecast and manage the amount and timing of materials needed for production. A is incorrect as Enterprise Resource Planning (ERP) is a broader system that encompasses MRP, as well as other functionalities such as financial management and human resources. C and D are not commonly used industry terms.

Question 16

An example of a __________ is building a new home on a lot.

Accepted Answer

Building a new home on a lot requires a fixed-position layout, as the construction process involves creating a structure in a particular location that cannot be moved. The materials, equipment, and workers all come to the work site, and the layout is organized around the fixed position of the home being built.

Question 17

___________ is a computer application that enables a firm to combine computerized functions of all divisions and subsidiaries of the firm into a single,integrated software program that uses a single database.

Accepted Answer

Enterprise resource planning (ERP) is a computer application that combines computerized functions of all divisions and subsidiaries of a firm into a single integrated software program that uses a single database. MRP II (Manufacturing resource planning) is a predecessor of ERP that mainly focuses on the manufacturing process. PERT analysis and Materials requirement planning (MRP) are not related to the integration of software programs.

Question 18

__________ has transformed the purchasing function in recent years by helping firms find the best suppliers and the best prices.

Accepted Answer

The Internet has revolutionized the way businesses can find and connect with suppliers, allowing for easier comparison of prices and products. This has transformed the purchasing function by making it easier for firms to find the best suppliers and negotiate the best prices. PERT (Program Evaluation and Review Technique), CAD/CAM (Computer-Aided Design and Computer-Aided Manufacturing), and QFD (Quality Function Deployment) are all project management and product development tools that do not directly impact the purchasing function in the same way the Internet does.

Question 19

With the __________ inventory control system,producers hold only the amount of materials and parts that they need for a short period of time - sometimes just a few hours.

Accepted Answer

The just-in-time (JIT) inventory control system involves holding only the amount of materials and parts that are needed for immediate production, often just a few hours. This approach helps to minimize inventory holding costs and reduce waste in the production process. ABC inventory control categorizes inventory based on value and importance, first-in, first-out (FIFO) is a method of inventory valuation, and maximum is not a commonly used inventory control system.

Question 20

In manufacturing,a __________ is frequently used in operations that serve different customers' different needs.

Accepted Answer

A process layout is typically used in manufacturing when different customers have different needs, as it allows for flexibility in the arrangement of equipment and workstations to accommodate a variety of products and processes. This is in contrast to a product layout, where the equipment and workstations are arranged in a fixed sequence to produce a specific product, and a fixed-position layout, where the product is too large or bulky to be moved during production. A modular layout is a hybrid of the other layouts, where the manufacturing process is divided into standardized modules that can be rearranged to accommodate different products. However, a process layout is the best choice for addressing the variability of customer demand and product requirements.

Quiz 9: Production and Operations Management