Question 1

The product quality characteristic of ____________is defined as the mean time before product failure.
A) reliability
B) assurance
C) durability
D) responsiveness
E) effectiveness

Accepted Answer

The answer of The product quality characteristic of ____________is defined...

Question 2

Economic order quantity is intended for use with independent demand systems.

Accepted Answer

Economic order quantity (EOQ) is a formula used for calculating the optimal order quantity that minimizes the total cost of inventory for items with independent demand, where demand is not dependent on the demand for other items. This means that EOQ is appropriate for use when the demand for a product is unpredictable and fluctuates from one period to another. On the other hand, for products with dependent demand, other inventory management techniques like material requirements planning (MRP) or just-in-time (JIT) may be used.

Question 3

The four kinds of costs incurred with inventory maintenance are ordering costs, setup costs, transaction costs, and stockout costs.

Accepted Answer

The four kinds of costs associated with inventory maintenance are: (1) ordering, (2) setup, (3) holding, and (4) stockout. Transaction costs are one type of stockout cost.

Question 4

Which of the following shows the correct relationship for productivity, outputs, and inputs?
A) productivity = (inputs/outputs)
B) productivity = [(inputs × outputs)/100]
C) outputs = (productivity/inputs)
D) productivity = (outputs/inputs)
E) inputs = (productivity/outputs)

Accepted Answer

The correct relationship for productivity, outputs, and inputs is given by the formula productivity = (outputs/inputs). This formula expresses how efficiently inputs are transformed into outputs, as productivity measures the output per unit of input.

Question 5

Which of the following statements about productivity is true?
A) Productivity is a ratio of benefits to costs (i.e., benefits divided by costs).
B) For companies, higher productivity can lead to lower costs.
C) For countries, higher productivity produces a lower standard of living.
D) Productivity decreases make products more affordable.
E) All of the statements about productivity are true.

Accepted Answer

For companies, higher productivity (that is, doing more with less) results in lower costs.

Question 6

The three basic measures of inventory are average aggregate inventory, weeks of supply, and inventory turnover.

Accepted Answer

These are indeed the three basic measures of inventory. Average aggregate inventory refers to the average amount of inventory held over a period of time, weeks of supply measures how many weeks an inventory can sustain sales, and inventory turnover measures how many times inventory is sold and replaced over a period of time.

Question 7

Stockout costs are incurred when a company runs out of finished products.

Accepted Answer

Stockout costs can refer to lost sales, lost production time, expedited shipping costs to fulfill orders, loss of customer goodwill, and potential damage to a company's reputation. These costs can be significant and impact a company's profitability and customer relationships.

Question 8

____________productivity is a measure of performance that indicates how much of a particular kind of input it takes to produce an output.
A) Breakdown
B) Segregated
C) Unifactor
D) Partial
E) Fractional

Accepted Answer

Partial productivity measures the efficiency of a single input in the production process, indicating how much output is produced per unit of that input.

Question 9

The American Society for Quality defines quality as____________ .
A) a product free of deficiencies, or the characteristics of a product or service that satisfy customers' needs
B) a product that customers perceive as free of deficiencies
C) any product made from error-free components
D) a product produced according to a sacrificing design plan
E) none of these

Accepted Answer

The definition of quality provided by the American Society for Quality involves meeting or exceeding customer needs, rather than just making a product free of deficiencies. Therefore, choice A is the best option.

Question 10

In general, the lower the number of inventory turns, the more efficiently the marketing department is operating.

Accepted Answer

In general, the higher the number of inventory turns, the better. In practice, a high turnover means that a company can continue its daily operations with just a small amount of inventory on hand.

Question 11

The CEO of a company that manufactures maple wooden cutting boards has determined that it takes wood, labor, and electricity to make one maple cutting board. The CEO has determined the ____________productivity of his company so he can compare its operation with that of its competition.
A) integrated
B) multifactor
C) segregated
D) functional
E) breakdown
Productivity of his company so

Accepted Answer

Multifactor productivity shows how much labor, capital, materials, and energy it takes to create an output.

Question 12

____________is a measure of performance that indicates how many inputs it takes to produce or create an output.
A) Reliability
B) Performance accountability
C) Productivity
D) TQM
E) Effectiveness

Accepted Answer

Productivity is a measure of how efficiently inputs are used to create outputs. It can be measured by the ratio of outputs to inputs.

Question 13

To effectively manage inventory, a manager should use EOQ formulas when inventory levels are independent, and JIT and MRP when inventory levels are dependent on the number of products to be produced.

Accepted Answer

EOQ (Economic Order Quantity) formula is used to determine the optimum order quantity that minimizes total inventory costs, for independent demand products. JIT (Just-in-Time) and MRP (Material Requirements Planning) are used for managing inventory levels when they are dependent on the production schedule and demand forecasts, for dependent demand products. Therefore, to effectively manage inventory, a manager should use EOQ formulas when inventory levels are independent, and JIT and MRP when inventory levels are dependent on the number of products to be produced.

Question 14

At their core, companies are____________ systems that combine inputs such as labor, raw materials, capital, and knowledge to produce finished products and other types of output.
A) organizational
B) production
C) social
D) predictable
E) socio-cultural

Accepted Answer

Companies combine inputs to produce outputs in a finished form.

Question 15

If the manager of a company that manufactures signs was interested in how much glass tubing was needed to produce a Las Vegas casino neon sign, the manager would be interested in ____________productivity.
A) composite
B) multifactor
C) partial
D) breakdown
E) fractional

Accepted Answer

Partial productivity is a measure of performance that indicates how much of a particular kind of input it takes to produce an output.

Question 16

Inventory is defined as the number of finished products that a company has in its possession either in the factory, in warehouses, or on delivery vehicles.

Accepted Answer

Inventory is the amount and number of raw materials, parts, and finished products that a company has in its possession.

Question 17

Which of the following is an important characteristic of a quality product?
A) reliability
B) validity
C) responsiveness
D) homogeneity
E) tangibility

Accepted Answer

Reliability is an important characteristic of a quality product because it refers to the consistency of the product's performance over time. A reliable product will consistently meet or exceed the customer's expectations, which is crucial for maintaining customer satisfaction and loyalty. Validity, responsiveness, homogeneity, and tangibility are also important characteristics, but they do not address the issue of consistency and reliability.

Question 18

In general, managers should use to ____________directly compare their overall level of productivity to that of their competitors, and____________ to analyze the contributions of individual components to that overall productivity.
A) efficiency measures; a productivity analysis
B) partial productivity; multifactor productivity
C) integrated productivity; segregated productivity
D) fragmented productivity; complete productivity
E) multifactor productivity; partial productivity

Accepted Answer

Efficiency measures can be used to evaluate specific processes or tasks, but they do not provide a comprehensive view of overall productivity. Instead, managers should use productivity measures that take into account multiple factors, such as the amount of input required to produce a given output (partial productivity) or the overall efficiency of all factors of production (multifactor productivity). This allows managers to make more informed comparisons with competitors and identify areas where they can improve efficiency.

Question 19

____________productivity shows how much labor, capital, materials, and energy it takes to create an output.
A) Temporal
B) Multifactor
C) Functional
D) Continuous
E) Quantitative

Accepted Answer

Multifactor productivity takes into account multiple inputs like labor, capital, materials, and energy to determine output.

Question 20

Why is productivity important to countries?
A) Productivity matters because it produces a higher standard of living.
B) Greater productivity results in lower wages.
C) Productivity increases supply and reduces demand for products.
D) Productivity reduces taxation.
E) None of these statements explains why productivity is important to countries.

Accepted Answer

One way productivity leads to a higher standard of living is through increased wages.

Quiz 17: Section 1: Managing Information

The product quality characteristic of ____________is defined as the mean time before product failure.

Economic order quantity is intended for use with independent demand systems.

The four kinds of costs incurred with inventory maintenance are ordering costs, setup costs, transaction costs, and stockout costs.

Which of the following shows the correct relationship for productivity, outputs, and inputs?

Which of the following statements about productivity is true?

The three basic measures of inventory are average aggregate inventory, weeks of supply, and inventory turnover.

Stockout costs are incurred when a company runs out of finished products.

____________productivity is a measure of performance that indicates how much of a particular kind of input it takes to produce an output.

The American Society for Quality defines quality as____________ .

In general, the lower the number of inventory turns, the more efficiently the marketing department is operating.

The CEO of a company that manufactures maple wooden cutting boards has determined that it takes wood, labor, and electricity to make one maple cutting board. The CEO has determined the ____________productivity of his company so he can compare its operation with that of its competition.

____________is a measure of performance that indicates how many inputs it takes to produce or create an output.

To effectively manage inventory, a manager should use EOQ formulas when inventory levels are independent, and JIT and MRP when inventory levels are dependent on the number of products to be produced.

At their core, companies are____________ systems that combine inputs such as labor, raw materials, capital, and knowledge to produce finished products and other types of output.

If the manager of a company that manufactures signs was interested in how much glass tubing was needed to produce a Las Vegas casino neon sign, the manager would be interested in ____________productivity.

Inventory is defined as the number of finished products that a company has in its possession either in the factory, in warehouses, or on delivery vehicles.

Which of the following is an important characteristic of a quality product?

In general, managers should use to directly compare their overall level of productivity to that of their competitors, and to analyze the contributions of individual components to that overall productivity.

____________productivity shows how much labor, capital, materials, and energy it takes to create an output.

Why is productivity important to countries?