Quiz 2

Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10 and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to break-even? 500 790 1000 units 667 900

1000 units

Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $15, and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to make a profit of $10,000? 800 1500 2500 900 1000 units

2500

In studying positioning of inventory in supply chains, which, if any, of the following is most appropriate. B. As order decoupling point moves towards the source customer lead time gets longer C. As order decoupling point moves towards the source inventory investment increases. A. As order decoupling point moves towards source inventory investment goes down. D. As order decoupling point moves towards the source customer lead time is unchanged E. A and B are true

A

Which of the following is not a step in developing a manufacturing cell layout? -Grouping parts into families that follow a common sequence of steps -Disposing of leftover machinery and outsourcing ungrouped processes -Physically grouping machines and processes into cells -Identifying dominant flow patterns of parts families as a basis for location of processes -None of these

Disposing of leftover machinery and outsourcing ungrouped processes

Choosing how to accommodate customer induced variability in a service business is the decision of the front-line service provider.

F

It is not necessary that a well-designed service system be robust.

F

The essential issue in satisfying customers in the make-to-stock environment is to balance the cost of the finished item against the willingness of the consumer to pay for it.

F

Which of the following is one of the three contrasting approaches to delivering on-site service? Stock market approach Professional approach Quality approach Retail approach Production-line approach

Production-line approach

Which of the following is not part of "the service triangle"? Service Encounter Service Strategy Support Systems Employees Customers

Service Encounter

A characteristic of a well-designed service system is that it manages the evidence of service quality in such a way that customers are aware of the value of the service provided.

T

Assemble-to-order means moving the customer order decoupling point from finished goods to components.

T

One difference between an assembly line process flow and a continuous process flow is that on the assembly line the flow is discrete rather than continuous.

T

One trade-off illustrated by the product-process matrix is between flexibility and cost.

T

Poka-yokes are procedures that block the inevitable mistake from becoming a service defect.

T

You are hired as a consultant to decide if your client should purchase a new, highly specialized piece of equipment. The product to be produced by this equipment is forecast to have a total worldwide demand of 15,000 units over the entire product life. The initial investment to acquire and install the equipment is $256,000. The variable cost to produce each unit will be $15, and the selling price for the finished product will be $30. Which of the following best describes the situation the firm is facing? The company will recover its initial investment. All of these The companys total margin will be less than its investment. The break-even is lower than the 15,000 units that are expected to sell. It is a good investment.

The companys total margin will be less than its investment.

Which of the following is not an element of a good service guarantee? The customer controls the process Unconditional (no small print) Easy to understand Meaningful to the customer Easy to communicate

The customer controls the process

Which of the following is a major factor that distinguishes service design and development from manufacturing design and development? -Manufacturing is far more capital intensive than services. -The service package is the major output of the development process. -The service package has the same legal protection available to manufactured goods. -Capacity decisions are much more critical in manufacturing operations -The service process and service product can be developed independently.

The service package is the major output of the development process.

Which of the following is not a characteristic of a well-designed service system? Cost-effective consistency between service systems and firm's operating focus consistency between organization and department User-friendly back office and front office effectively linked

consistency between organization and department

*Which of the following is not a way that operations and supply processes are categorized? Return Making Selecting Delivery Planning

selecting

Which of the following basic types of production layout formats is one that has similar equipment or functions are grouped together? Manufacturing line layout Assembly line layout Group technology layout Workcenter layout Production line layout

workcenter layout