Chapter-13

_____ are small work groups meeting periodically to find ways to improve the standard and performance of work. A. Zero-defect teams B. Informal groups C. Quality circles D. Standing committees

C. Quality circles

Which of the following refers to supplier-base downsizing? A. Achievement of high standards by suppliers in a supply chain B. Assigning the responsibility of supplying to one person C. Reducing the number of suppliers to concentrate purchasing D. Integration of supply and demand between suppliers in a supply chain

C. Reducing the number of suppliers to concentrate purchasing

Obtaining all items, including goods and services, in the proper form and at the proper place, time, and cost is the main objective of: A. promoting. B. marketing. C. purchasing. D. scheduling.

C. purchasing.

_____ is a system used by a producer to ensure that the finished goods or services meet the expectations of customers. A. Standing order B. Quality circle C. Quality control D. Just-in-time management

C. quality circle

Which of the following is true of assigning responsibility for purchasing? A. Generally, one person should be given the overall purchasing responsibility. B. Generally, the authority to order should be with a team of experts. C. The person assigned the responsibility for purchasing should not ask for help. D. Responsibility for purchasing should not be assigned to the business owner.

A. Generally, one person should be given the overall purchasing responsibility.

What is the significance of the Federal Acquisition Streamlining Act? A. It urges government agencies to buy off-the-shelf goods rather than items made to its own specifications. B. It encourages the government to communicate with vendors with detailed paperwork rather than on-line. C. It makes it easier for small companies to bid on non-federal contracts. D. It mandates the process of delivering materials to a user at the time of production mandatory.

A. It urges government agencies to buy off-the-shelf goods rather than items made to its own specifications.

_____ is the trademark for a type of machine-readable optical label containing information about the item to which it is attached. A. QR code B. Radio-frequency identification code C. Quality circle D. Six Sigma certification

A. QR code

_____ are sales lost because an item is not available in a store when customers want it. A. Stockouts B. Inflations C. Inventory losses D. Standing orders

A. Stockouts

_____ is the process of coordinating the movement, storage, and all processes, from beginning to end. A. Supply chain management B. Supplier-base downsizing C. Network integration management D. Manufacturer-base upsizing

A. Supply chain management

The _____ is the quantity to purchase that balances the cost of placing the order with the cost of carrying the inventory. A. economic order quantity B. standing order inventory C. stockout quantity D. purchase inventory

A. economic order quantity

A(n) _____ tells a supplier to ship a given amount of an item at a given quality and price. A. purchase order B. standing order C. bill of lading D. economic order quantity

A. purchase order

_____ are derived from a language called symbologies and are used for specific identification of objects. A. Bar codes B. Radio-frequency identifications C. Six Sigma certifications D. Quality circles

A. Bar codes

_____ refers to product characteristics and the probability of meeting established standards. A. Quality B. Schedule C. Process layout D. Product layout

A. quality

_____ is setting the times and sequences needed to perform specialized activities. A. Scheduling B. Controlling C. Assigning D. Procuring

A. scheduling

Which of the following statements is true of the 80-20 rule? A. Eighty percent of a company's supplies comes from one supplier, and the remaining 20 percent from other suppliers. B. Eighty percent of a company's income comes from 20 percent of its products. C. The cost of raw materials should be about 80 percent of the cost of the finished product, and the cost of manufacturing should be about 20 percent of the cost of the finished product. D. A company should carry out 80 percent of its production using 20 percent of the items in its inventory.

B. Eighty percent of a company's income comes from 20 percent of its products.

Which of the following statements is true of just-in-time (JIT) delivery? A. It results in high inventory costs for a business. B. It helps keep warehouses from overflowing. C. It ensures that the government communicates with the vendors on-line. D. It urges government agencies to buy off-the-shelf goods.

B. It helps keep warehouses from overflowing.

Which of the following statements is true about radio-frequency identification (RFID)? A. It is derived from a language called symbologies. B. It is a method of specific identification transponders that contain information. C. It can only be read from a couple of meters distance. D. It is used for checking the quality of a company's inventory.

B. It is a method of specific identification transponders that contain information.

Which of the following statements is true of the quality assessment of a product? A. It depends on the expectations of the producer. B. It is always absolute. C. It depends on the expectations of the customer. D. It can always be measured objectively.

B. It is always absolute.

_____ set predetermined times to ship given quantities of needed products at a given price. A. Purchase orders B. Standing orders C. Economic order quantities D. Scheduled order inventories

B. Standing orders

A(n) _____ is a formal list of all the property of a business, or the property so listed. A. purchase order B. inventory C. stockout D. operating system

B. inventory

The _____ is a nongovernmental bridging organization that establishes global barometers for quality. A. World Trade Organization B. National Institute of Quality C. International Organization for Standardization D. Small Business Administration

C. International Organization for Standardization

Which of the following is one of W. Edwards Deming's 14 points of management philosophy and techniques? A. Adopt the old philosophy. B. Depend on mass inspection. C. Award business on the basis of a price tag. D. Break down barriers between departments.

D. Break down barriers between departments.

Which of the following is one of the two current trends in purchasing that are causing considerable problems for small firms? A. Lack of stockouts B. Manufacturer-base downsizing C. Decrease in the demand for American products D. Fully integrated production networks

D. Fully integrated production networks

What is the advantage of using multiple sources of supply? A. During shortages, better services can be received. B. Discounts can be obtained with low-volume buying. C. The cost of ordering is low. D. Greater variety of goods can be obtained.

D. Greater variety of goods can be obtained.

Which of the following statements is true of the members of quality circles? A. They are usually senior-level managers. B. They are generally the supervisors of their respective departments. C. They usually do not get support from top management. D. They receive training in problem identification, communications, and problem solving.

D. They receive training in problem identification, communications, and problem solving.

Which of the following can the owners of small businesses do to cope with variations in demand? A. Hire permanent workers during peak periods B. Avoid subcontracting production C. Avoid carrying complementary products, such as winter and summer items D. Use inventory buildups to smooth out operations

D. Use inventory buildups to smooth out operations

When can an optimum inventory level be maintained? A. When the sum of the costs of carrying inventory and the costs of stockout is high B. When the costs of carrying inventory are higher than the costs of stocking out C. When the costs of carrying inventory are lower than the costs of stocking out D. When inventory carrying costs and stockout costs are zero

D. When inventory carrying costs and stockout costs are zero

When inventory level determines the time to order in a business, the order quantity is a fixed amount called the _____. A. incremental order quantity B. stockout quantity C. standing order D. economic order quantity

D. economic order quantity

The _____ is an integrated-coordinated system of activities to transform raw materials into finished products delivered to the end consumer. A. inventory code B. economic order C. quality circle D. supply chain

D. supply chain

_____ is carried to disconnect one segment of the operating process of a business from another so that each part can operate at its optimum level. A. Stockout B. Scheduling C. Controlling D. Inventory

D. inventory