Question 1

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

Accepted Answer

The Internet is primarily used by purchasing managers to buy goods and services, not to sell them. Therefore, option A is the correct answer. Options B, C, and D are all ways in which the Internet is used for purchasing management.

Question 2

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.

Accepted Answer

Electronic data interchange (EDI) is a standard electronic communication method that can transmit business documents, such as purchase orders and invoices, between companies' computer systems. It is commonly used in e-commerce transactions, including those on eBay.

Question 3

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

Accepted Answer

Inventory control is concerned with ensuring that the company has adequate materials on hand to meet its production schedule. This involves tracking inventory levels, anticipating future needs, and replenishing stock when appropriate. Purchasing deals with the process of acquiring materials from suppliers, procurement covers the entire supply chain process, and warehousing involves the physical storage and management of inventory.

Question 4

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

Accepted Answer

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

Question 5

Completing an activity on the critical path of a PERT chart early will delay the project.

Accepted Answer

Completing an activity on the critical path of a PERT chart early will not delay the project, as it is the longest sequence of activities that determines the minimum amount of time required to complete the project.

Question 6

When production processes reach a certain level of complexity, operations managers may use _____ charts to schedule activities.

Accepted Answer

The answer of When production processes reach a certain level...

Question 7

Gantt charts are useful when the production process is complex and activities are interrelated.

Accepted Answer

The answer of Gantt charts are useful when the production...

Question 8

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

Accepted Answer

PERT charts (Program Evaluation Review Technique) are used in project management to visualize the dependencies between activities, estimate the time required for each activity, and determine the critical path in order to complete the project on time. They are commonly used by operations managers for complex schedules, including production processes.

Question 9

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 10

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 11

The inventorycontrol 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.

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. This helps to ensure that there is always enough inventory to meet production demands without overstocking or running out of materials.

Question 12

PERT charts are simpler and easier to use than Gantt charts.

Accepted Answer

PERT charts are more complex than Gantt charts because they take into account the dependencies and critical paths of each task, whereas Gantt charts simply show a timeline of tasks and their durations. While PERT charts can be more powerful for project management, they require more effort and expertise to create and interpret than Gantt charts.

Question 13

A _____ chart is an easy-to-use graphical tool that helps operations managers determine the status of projects.

Accepted Answer

A Gantt chart is specifically designed to show the progress of a project over time. It allows for easy identification of which tasks have been completed, are in progress, or have yet to begin. Flow charts and production charts are more general tools that can be used in a variety of settings, while PERT charts are used specifically in project management to identify and analyze the interdependencies of tasks.

Question 14

Material costs often make up ____ of total manufacturing costs.

Accepted Answer

Material costs can vary depending on the product being manufactured, but on average, it is estimated that they make up about 50% of total manufacturing costs. Other factors such as labor, overhead, and equipment also play a significant role in contributing to the total cost of manufacturing.

Question 15

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

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 16

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

Accepted Answer

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

Question 17

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

Accepted Answer

Goods production is not a daily activity involved in the process of materials management as it is a result of the materials management process. The daily activities involved include purchasing, inventory control, and work scheduling.

Question 18

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.

Accepted Answer

The specific job described involves purchasing parts and supplies, which falls under the realm of purchasing management. Therefore, the correct option is D) purchasing.

Question 19

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.

Accepted Answer

The more sophisticated system referred to in the question is likely to be Manufacturing Resource Planning II (MRP II), which not only helps with material planning but also monitors resources in other areas such as production, inventory, and finance. Option A is the closest match to this description, while options B and C are variations of basic MRP. Option D is not a commonly known system in operations management.

Question 20

Which tool is best for diagramming complex schedules

Accepted Answer

PERT charts are best for diagramming complex schedules as they provide a visual representation of all the project's activities, dependencies, and timelines, which can help identify which activities are critical to the project's success and which ones are not. Meanwhile, Gantt charts can become cluttered and hard to read when dealing with complex projects with thousands of tasks. CAD software is not designed for project management, while project management software may lack the visual detail and complexity needed for complex schedules.

Quiz 11: Operations Management in Manufacturing and Service Industries