Deck 10: Operations Management

Question 1

A-B-C Analysis refers to

A)an inventory analysis systems that tracks Alternative Buying Choices
B)management's analysis of Active Buying Customs in their industry
C)Activity Based Cost allocation in a retail store
D)an inventory management system which evaluates the efficiency with which products A,B and C are managed

Answer 1

D

Question 2

TQM is

A)a small business certification of environmental compliance
B)a philosophy of management
C)a process of technical quality methodology
D)a traditional method of product pricing

Answer 2

B

Question 3

In a small business,inventory management is important because

A)generally there are limited economic resources
B)customers will stop coming in to make purchases if inventory is not well managed
C)otherwise employees will not be happy
D)inventory variety is usually the key to success

Answer 3

A

Question 4

The interior layout of facilities can

A)dictate marketing strategies
B)determine staffing needs of the financial management area
C)impair the budget process
D)greatly enhance productivity

Question 5

Shrinkage describes

A)reducing inventory levels due to sales without replacement of stock
B)decreasing purchasing power of sales dollars
C)loss of inventory
D)increasing inadequacy of floor space as volume increases

Question 6

Different areas in a retail store

A)should be equally accessible
B)differ from one another in terms of productivity
C)are more or less comfortable for customer shopping purposes
D)all contribute equally to income

Question 7

ISO 9000 is

A)an effective marketing tool
B)is a cost cutting strategy
C)a regulatory standard for global shipping practices
D)is an International Scheme of Organization for owner managed businesses

Question 8

Production processes move to the product in

A)process layout
B)fixed position layout
C)small factories
D)high tech industries

Question 9

Which of the following site factors are of minimum importance for a manufacturing business?

A)setback AND window space
B)space AND access
C)frontage AND access
D)building exteriors AND floor space

Question 10

Compared to product layouts,process layouts usually

A)are used in single product manufacturing environments
B)are more modern
C)are more expensive and require more management time to ensure efficiency
D)result in greater sales of product

Question 11

Free flow layout refers to

A)a layout that gives customers more time to browse
B)retail stores that do not charge for shopping carts
C)a layout strategy often used in car dealerships
D)a design strategy that is available for free to down load from the internet

Question 12

Order lead time refers to

A)the length of time before needing to reorder inventory items
B)the length of time taken to process an order and transport the item(s)
C)the length of time before a customer wishes to have goods delivered
D)the length of time before competitors begin to stock a specialty item

Question 13

For purposes of layout guidance

A)service firms are considered to be manufacturing operations with a retail customer base
B)service firms can be classified into a standard format
C)service firms mostly use the free flow strategy
D)service firms tend to be so diverse it is not possible to provide standard information

Question 14

Retail store product placement requires

A)determining profit contribution and customer preferences
B)charging premiums to suppliers
C)ranking profitability and identifying high traffic areas
D)municipal guidance by way of safety by laws

Question 15

Product layout provides for economies of

A)scale and labor
B)volume and production
C)time and space
D)cost and time

Question 16

The owner-manager's task is to

A)maximize production to utilize 100% of the business's capacity
B)produce goods as quickly as possible
C)organize production so as to produce goods efficiently
D)ensure that production satisfies its customers' demands

Question 17

Management must make sure that physical facilities

A)do not harm their public image
B)are efficient and up to date
C)match their competitors' facilities
D)provide pleasant work space

Question 18

which of the following site factors are of critical importance for a service business?

A)parking AND configuration
B)surroundings AND stairways
C)utilities AND expansion potential
D)age AND expansion

Question 19

Entrepreneurs are typically

A)strongest in marketing
B)weakest in production management
C)equally talented in production,marketing and financial management
D)weaker in areas of marketing and financial management than in managing the production process

Question 20

Process layout are based on the premise that

A)it is more efficient for product moves back and forth to processes
B)it is more efficient for processes to move back and forth to product areas
C)segregating processes is more important than outsourcing
D)outsourcing processes is more cost effective than purchasing equipment for use in house