Question 1

Companies that use a just-in-time (JIT) production system:
A)ensure that their finished products are completed just in time to fill customers' orders.
B)have higher inventory costs because of additional handling costs charged by suppliers to expedite materials.
C)have frequent contact with their suppliers.
D)set up their assembly lines just-in-time to meet customer demand.

Accepted Answer

The answer of Companies that use a just-in-time (JIT) production...

Question 2

Following basically the same process that you'd use to buy a product on eBay, a(n) _____ manager uses the Internet to buy parts and supplies.
A)materials
B)operations
C)automation
D)purchasing

Accepted Answer

A purchasing manager is responsible for buying parts and supplies for a company, and they may use online platforms like eBay to do so. The other options (materials, operations, automation) do not directly relate to the purchasing process.

Question 3

Material costs often make up ____ of total manufacturing costs.
A)25%
B)75%
C)50%
D)10%

Accepted Answer

Material costs typically refer to the raw materials and components that go into producing a product. These costs can include the cost of purchasing the materials, shipping and handling expenses, and any waste or scrap generated during the manufacturing process. The proportion of material costs to total manufacturing costs can vary depending on the industry and the specific product being produced, but a common estimate is that material costs make up about 50% of total manufacturing costs.

Question 4

Once the production process is in place, the operations manager can turn his or her attention to the daily activities of _____.
A)distribution planning
B)procurement
C)materials management
D)floor supervisors

Accepted Answer

Materials management is a key daily activity for operations managers once the production process is established, as it involves overseeing the supply chain, inventory, and the movement of materials in and out of production.

Question 5

Describe just-in-time production and explain why companies adopt this production method.

Accepted Answer

The answer of Describe just-in-time production and explain why companies...

Question 6

Inventory control is sophisticated software used to reduce the likelihood that someone can steal materials from a company.

Accepted Answer

Inventory control software is used to track and manage inventory levels, orders, sales, and deliveries. While it can support efforts to prevent theft by providing visibility into inventory movements, it is not specifically designed to prevent theft on its own. Other security measures such as access controls, physical barriers, and surveillance may also be necessary.

Question 7

Let's say that you bought a TV on eBay and paid for it electronically.To process your transaction and transmit all of your purchasing documents, the manufacturer might use an _____ system.
A)Internet interchange
B)electronic data interchange (EDI)
C)electronic buying
D)e purchase interchange

Accepted Answer

Electronic Data Interchange (EDI) is a system that enables businesses to exchange documents electronically, such as purchase orders, invoices, and shipping notices. It is commonly used in business-to-business (B2B) transactions and can be integrated with other systems to automate processes and reduce manual tasks. In the case of purchasing a TV on eBay, the manufacturer might use EDI to process the transaction and transmit all necessary documents electronically.

Question 8

All of the following are daily activities involved in the process of materials management _____.
A)purchasing
B)inventory control
C)work scheduling
D)goods production

Accepted Answer

The answer of All of the following are daily activities...

Question 9

A company that uses a just-in-time production method produces its products just-in-time to deliver them to customers.

Accepted Answer

The answer of A company that uses a just-in-time production...

Question 10

Which of the following materials management activities is concerned with making sure the company has enough materials on hand to meet its production schedule?
A)Purchasing
B)Procurement
C)Inventory control
D)Warehousing

Accepted Answer

Inventory control is concerned with ensuring that the company has enough materials on hand to meet its production schedule. This involves monitoring inventory levels, forecasting demand, and ordering materials as needed. Purchasing involves actually placing orders for materials, while procurement is a more comprehensive term that includes purchasing as well as other activities such as supplier selection and negotiation. Warehousing is concerned with the storage and distribution of materials, but does not specifically address the issue of inventory levels.

Question 11

The inventory?control method called _____ relies on a computerized program to calculate the quantity of materials needed for production and to determine when they should be ordered or made.
A)buying to order
B)material requirements planning (MRP)
C)manufacturing requirements
D)manufacturing to order

Accepted Answer

Material requirements planning (MRP) is a computerized inventory control method that calculates the quantity of materials needed for production and determines when they should be ordered or made. The other options, buying to order, manufacturing requirements, and manufacturing to order, do not involve the use of a computer program for inventory control.

Question 12

An electronic data interchange (EDI) system is used to monitor inventory levels.

Accepted Answer

EDI is primarily used for the electronic exchange of business documents, such as purchase orders and invoices, between companies, rather than for monitoring inventory levels.

Question 13

In order to draw up a(n) _____, managers need to know where materials are located and headed at every step in the production process.
A)material budget
B)minor production schedule
C)master production schedule
D)Meerschaum schedule

Accepted Answer

A master production schedule outlines the quantities of each product that need to be produced and when. In order to create an accurate schedule, managers need to have detailed knowledge of where materials are located and how they are moving through the production process. Material budgets typically focus on the financial aspects of purchasing and using materials, while a minor production schedule and a Meerschaum schedule are not common terms in production management.

Question 14

As an operations manager at Century Unlimited Industries, Sylvia Moses uses basic MRP to focus on material planning and the more sophisticated system called _____ to help monitor resources in all areas of the company.
A)manufacturing resource planning II
B)electronic data interchange
C)material resource planning II
D)advanced maximum resource planning

Accepted Answer

Manufacturing Resource Planning II (MRP II) is an advanced system that expands on basic Material Requirements Planning (MRP) by integrating additional resources across the company, such as labor and machine capacity, to provide comprehensive planning and scheduling capabilities.

Question 15

Materials management includes these activities: product development, purchasing, inventory control and work scheduling.

Accepted Answer

The answer of Materials management includes these activities: product development,...

Question 16

The _____ manager is responsible for determining a vendor's reputation.
A)operations
B)materials
C)components
D)purchasing

Accepted Answer

The answer of The _____ manager is responsible for determining...

Question 17

Which of the following is not a way in which the Internet is used by purchasing managers?
A)Sell the company's goods
B)Shop for parts and supplies using online catalogs
C)Participate in an online marketplace
D)Process transactions and transmit purchasing documents

Accepted Answer

Purchasing managers use the Internet to purchase goods and services, not to sell the company's goods. Therefore, option A is not a way in which the Internet is used by purchasing managers.

Question 18

What is e-purchasing and how do companies use this method to interact with suppliers?

Accepted Answer

The answer of What is e-purchasing and how do companies...

Question 19

Making decisions on how to hold down the costs of materials and labor is the job of ______
A)each employee
B)the CEO
C)the accounts manager
D)the operations manager

Accepted Answer

The operations manager is typically responsible for overseeing the production process and ensuring efficient use of resources such as materials and labor. They would be the most appropriate person to make decisions on how to hold down costs in these areas. While each employee may have some responsibility for reducing costs in their individual tasks, it is not their primary job duty. The CEO may be involved in high-level decisions related to cost reduction, but it is not their primary job duty either. The accounts manager is responsible for managing financial records and transactions, but may not have direct involvement in production cost decisions.

Question 20

For complex schedules, operations managers may use PERT charts to diagram the activities required to produce a good.

Accepted Answer

PERT (Program Evaluation and Review Technique) charts are commonly used in project management to visually represent the tasks and their dependencies. Operations managers may also use PERT charts to plan and track the production process for a good, especially when there are multiple concurrent activities and critical paths that need to be managed.

Quiz 8: Operations Management in Manufacturing and Service Industries

Companies that use a just-in-time (JIT) production system:

Following basically the same process that you'd use to buy a product on eBay, a(n) _____ manager uses the Internet to buy parts and supplies.

Material costs often make up ____ of total manufacturing costs.

Once the production process is in place, the operations manager can turn his or her attention to the daily activities of _____.

Describe just-in-time production and explain why companies adopt this production method.

Inventory control is sophisticated software used to reduce the likelihood that someone can steal materials from a company.

Let's say that you bought a TV on eBay and paid for it electronically.To process your transaction and transmit all of your purchasing documents, the manufacturer might use an _____ system.

All of the following are daily activities involved in the process of materials management _____.

A company that uses a just-in-time production method produces its products just-in-time to deliver them to customers.

Which of the following materials management activities is concerned with making sure the company has enough materials on hand to meet its production schedule?

The inventory?control method called _____ relies on a computerized program to calculate the quantity of materials needed for production and to determine when they should be ordered or made.

An electronic data interchange (EDI) system is used to monitor inventory levels.

In order to draw up a(n) _____, managers need to know where materials are located and headed at every step in the production process.

As an operations manager at Century Unlimited Industries, Sylvia Moses uses basic MRP to focus on material planning and the more sophisticated system called _____ to help monitor resources in all areas of the company.

Materials management includes these activities: product development, purchasing, inventory control and work scheduling.

The _____ manager is responsible for determining a vendor's reputation.

Which of the following is not a way in which the Internet is used by purchasing managers?

What is e-purchasing and how do companies use this method to interact with suppliers?

Making decisions on how to hold down the costs of materials and labor is the job of ______

For complex schedules, operations managers may use PERT charts to diagram the activities required to produce a good.