Deck 10: Operations Management

Question 1

Free flow layout refers to:

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

Answer 1

A

Question 2

Critics of what firm contend that store layouts are designed to ensure people spend more time shopping and therefore could spend more than they originally planned?

A) Costco
B) Home Depot
C) IKEA
D) Real Canadian Superstore

Answer 2

C

Question 3

TQM is:

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

Answer 3

C

Question 4

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

A) Surroundings and stairways
B) Age and expansion
C) Parking and configuration
D) Utilities and expansion potential

Question 5

Product layout provides for economies of:

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

Question 6

Process layouts are based on the premise that:

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

Question 7

The owner-manager's task is to:

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

Question 8

Entrepreneurs are typically:

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

Question 9

For retailing firms, which aspects of building improvement potential are critical?

A) Building exterior and interior
B) Streets and walks
C) Expansion
D) Surrounding area

Question 10

Retail store product placement requires:

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

Question 11

Different areas in a retail store:

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

Question 12

ISO 9000 is:

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

Question 13

Production processes move to the product in:

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

Question 14

The interior layout of facilities can:

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

Question 15

In a small business, inventory management is important because:

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

Question 16

Management must make sure that physical facilities:

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

Question 17

For purposes of layout guidance:

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

Question 18

Order lead time refers to:

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

Question 19

Compared to product layouts, process layouts usually:

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

Question 20

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

A) Space and access
B) Setback and window space
C) Frontage and access
D) Building exteriors and floor space

Question 21

What unit of control is suitable for firms with large amounts of inventory at a relatively low per-unit value?

A) ABC analysis
B) Dollar inventory control
C) Per unit inventory control
D) Minimum-turnover method

Question 22

Shrinkage describes:

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

Question 23

A-B-C analysis refers to:

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