Multiple Choice
Identify the letter of the choice that best
completes the statement or answers the question.
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1.
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Frances
knows how many outputs she produces (number of switches) relative to the amounts of each of several
inputs (labour, materials, energy) she uses. Frances has a measure of __________. a. | partial productivity | b. | total quality | c. | partial quality | d. | multifactor productivity | | |
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2.
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Tim
notices that many of the chairs that his firm produces have nicks in the seating material and
scratches on the legs. This situation is far from the defect-free production standard that he is
trying to achieve. The nicks and scratches represent __________. a. | total quality management | b. | customer focus | c. | variation | d. | inventory turnover | | |
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3.
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Wendy’s company tries hard to ensure that everyone—managers, supervisors,
front-line staff, part-time staff—tries to meet the needs of their customers. This is an example
of __________. a. | continuous
improvement | b. | customer
focus | c. | variation | d. | customer satisfaction | | |
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4.
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Good
Wood Manufacturing makes and sells a variety of shelving units. Parts are ordered and assembly is
completed before orders are received from customers. This is a __________ operation. a. | make-to-order | b. | assemble-to-order | c. | make-to-stock | d. | continuous flow production | | |
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5.
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Gabrielle’s firm makes large, expensive, customized yachts for customers in a
very select market. This is an example of __________. a. | batch production | b. | line-flow production | c. | continuous–flow production | d. | project manufacturing | | |
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6.
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Helen’s firm makes small batches of special plastic covers for the boat industry.
Her manufacturing operation is best termed __________. a. | a job shop | b. | batch production | c. | line-flow production | d. | continuous-flow production | | |
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7.
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Fancy
Shirtmakers Incorporated tends to use basic inputs such as fabric, thread, and buttons in making a
line of men’s shirts. These inputs are best termed __________ inventories. a. | work-in-process | b. | raw material | c. | component parts | d. | finished goods | | |
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8.
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Jones,
Smith & Partners, manufacturers of fine women’s clothing, has run out of inventory of
finished dresses. This situation is termed __________. a. | a stockout | b. | inventory turnover | c. | average aggregate inventory | d. | a holding cost | | |
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9.
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Smith’s Parts Company has switched from producing one type of auto to another
type. The costs of the downtime incurred are termed __________ costs. a. | ordering | b. | setup | c. | holding | d. | stockout | | |
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10.
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Sarah
is considering trying to minimize order costs and carrying costs as well as determine how many of
each inventory item she should order and how frequently she should order. Of the following,
__________ would be most beneficial to her. a. | EOQ | b. | JIT | c. | a kanban system | d. | a dependent demand system | | |
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True/False
Indicate whether the sentence or statement is true or
false.
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11.
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As an
operations manager, you are expected to manage the daily flow of goods and/or services.
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12.
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Faith
is trying hard to restore customer satisfaction with a customer who is dissatisfied with the
firm’s delivery schedule. Faith’s actions are termed service recovery.
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13.
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In his
store John usually has about $500,000 worth of inventory in stock in a month. This amount represents
his inventory turnover.
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14.
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At her
pub Jill has run out of a favourite local beer and many customers were dissatisfied. This loss of
goodwill is a stockout cost.
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15.
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The
number of parts (e.g., keyboards, screens) that Jack carries in inventory is determined in part by
the number of computers he produces in a particular day. Jack has an independent demand
system.
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