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

Accepted Answer

A-B-C Analysis is an inventory management system that evaluates the efficiency with which products A, B, and C are managed. It divides products into three categories based on their importance and sales volume, with A items being the most important and C items being the least. This helps in prioritizing inventory management tasks and ensuring that efficient inventory levels are maintained for each category.

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

Accepted Answer

TQM stands for Total Quality Management, which is a philosophy of management that emphasizes continuous improvement in all aspects of an organization. It involves everyone in the organization working together to improve processes, products, and services to meet or exceed customer expectations. TQM is not a certification, a process of technical quality methodology, or a method of product pricing.

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

Accepted Answer

Small businesses often have limited economic resources, making efficient inventory management crucial to avoid overstocking or stockouts, which can impact cash flow and customer satisfaction.

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

Accepted Answer

The interior layout of facilities can greatly enhance productivity by promoting efficient workflow, creating a comfortable and safe environment for employees, and optimizing use of space. While it may indirectly impact marketing strategies or staffing needs, it does not impair the budget process.

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

Accepted Answer

Shrinkage in a retail or inventory management context typically refers to the loss of inventory, which can occur due to theft, damage, or errors in inventory management.

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

Accepted Answer

The answer of Different areas in a retail store
A)should be...

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

Accepted Answer

ISO 9000 is often used as a marketing tool to demonstrate a company's commitment to quality standards, which can help in attracting customers who value quality assurance in products and services.

Question 8

Production processes move to the product in
A)process layout
B)fixed position layout
C)small factories
D)high tech industries

Accepted Answer

In a fixed position layout, the product remains stationary, and workers, materials, and equipment are moved to the product site as needed. This is common in industries where the products are too large or heavy to move, such as shipbuilding or construction.

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

Accepted Answer

Setback and window space are generally of minimum importance for a manufacturing business compared to factors like space, access, frontage, building exteriors, and floor space, which directly impact operations, logistics, and production capabilities.

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

Accepted Answer

Process layouts involve arranging equipment and resources based on the sequence of operations involved in a variety of products. They are typically used in job shop environments where there is a wide variety of products and low volume. They can be more expensive and require more management time to ensure efficient utilization of resources.

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

Accepted Answer

Free flow layout refers to a layout strategy in which products are placed in a way that allows customers to move freely through the store and encourages browsing. It is often used in retail stores where the goal is to create a relaxed and comfortable shopping experience that customers can enjoy without feeling rushed or pressured to make a purchase.

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

Accepted Answer

Order lead time refers to the total time it takes for an order to be processed, fulfilled, and transported to its destination. This includes the time it takes to receive and process the order, pick and pack the items, and transport them to the customer's location.

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

Accepted Answer

Service firms offer a wide variety of services and therefore lack standardization, making it difficult to provide standard layout guidance.

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

Accepted Answer

Ranking profitability and identifying high traffic areas are key factors in determining the optimal placement of products in a retail store.

Question 15

Product layout provides for economies of
A)scale and labor
B)volume and production
C)time and space
D)cost and time

Accepted Answer

The answer of Product layout provides for economies of
A)scale and...

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

Accepted Answer

The owner-manager's task is to organize production efficiently, ensuring resources are used effectively to meet business goals.

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

Accepted Answer

Physical facilities need to be efficient and up to date to ensure smooth operations and to avoid any safety risks.

Answer: D 
 It is essential to provide a pleasant workspace for employees to promote productivity and job satisfaction. While A and C may be considerations, they are not the primary concern for management regarding physical facilities.

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

Accepted Answer

The answer of which of the following site factors are...

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

Accepted Answer

Entrepreneurs often excel in the production process due to their innovative ideas but may lack expertise in marketing and financial management, which are specialized skills.

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

Accepted Answer

Process layouts are designed around the idea that it's more efficient for products to move between different processes, which may not be in a linear sequence, rather than reconfiguring processes or equipment to follow the product. This is common in job shops or industries where customization or varied operations are required for different products.

Quiz 10: Operations Management

A-B-C Analysis refers to

TQM is

In a small business,inventory management is important because

The interior layout of facilities can

Shrinkage describes

Different areas in a retail store

ISO 9000 is

Production processes move to the product in

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

Compared to product layouts,process layouts usually

Free flow layout refers to

Order lead time refers to

For purposes of layout guidance

Retail store product placement requires

Product layout provides for economies of

The owner-manager's task is to

Management must make sure that physical facilities

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

Entrepreneurs are typically

Process layout are based on the premise that