log 250 exam
The center-of-gravity method finds the location of a centralized facility, such as a distribution center, that will maximize the organization's revenue. True False
False
In most manufacturing industries, which of the following would likely represent the largest cost to the firm? A. advertising B. purchasing C. insurance D. financing E. transportation
purchasing
Line employees need the knowledge of TQM tools. True False
True
One of the ways that just-in-time (or JIT) influences quality is that by reducing inventory, bad quality is exposed. True False
True
Which of the following would NOT generally be a motive for a firm to hold inventories? A. to minimize holding costs B. to take advantage of quantity discounts C. to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand D. to hedge against inflation E. to decouple various parts of the production process
A. to minimize holding costs
Currency risk is based on what assumption? A. The U.S. stock market fluctuates daily. B. Changing product lines by reacting to every current trend may alienate the customer base. C. Values of foreign currencies continually rise and fall in most countries. D. Firms that do not continuously innovate will lose market share. E. The value of one dollar today is greater than the value of one dollar to be received one year from now.
. Values of foreign currencies continually rise and fall in most countries.
Cycle counting: A. assumes that the most frequently used items must be counted more frequently. B. provides a measure of inventory turnover. C. is a process by which inventory records are verified once a year. D. assumes that all inventory records must be verified with the same frequency. E. eliminates annual inventory adjustments.
. E. eliminates annual inventory adjustments.
Which of these statements about the production order quantity model is FALSE? A. All else equal, the smaller the ratio of demand rate to production rate, the larger is the production order quantity. B. Average inventory is less than one-half of the production order quantity. C. The production order quantity model is appropriate when the assumptions of the basic EOQ model are met, except that receipt is noninstantaneous. D. Because receipt is noninstantaneous, some units are used immediately and not stored in inventory. E. None of the above is false.
A. All else equal, the smaller the ratio of demand rate to production rate, the larger is the production order quantity.
Which of the following statements regarding the production order quantity model is TRUE? A. It relaxes the assumption that all the order quantity is received at one time. Your answer is correct. B. It minimizes inventory. C. It applies only to items produced in the firm's own production departments. D. It minimizes the total production costs. E. It relaxes the assumption that the demand rate is constant.
A. It relaxes the assumption that all the order quantity is received at one time. Your answer is correct.
A fried chicken fast-food chain that acquired feed mills and poultry farms has performed which of the following? A. backward integration B. horizontal integration C. job expansion D. current transformation E. forward integration
A. backward integration
The Japanese call the practice of stopping production when a defect occurs A. jidoka. B. kanban. C. kaizen. D. poka-yoke.
A. jidoka.
According to the manufacturing-based definition of quality: A. quality is the degree to which a specific product conforms to standards. B. quality lies in the eyes of the beholder. C. quality depends on how well the product fits patterns of consumer preferences. D. quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost. E. even though quality cannot be defined, you know what it is.
A. quality is the degree to which a specific product conforms to standards.
Which of the following is NOT one of the risk mitigation tactics for the supply chain risk category of suppliers failing to deliver? A. require overnight delivery B. effective contracts with penalties C. use multiple suppliers D. subcontractors on retainer E. pre-planning
A. require overnight delivery
On the crossover chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity where: A. total costs are equal for two alternative locations. B. fixed costs are equal for two alternative locations. C. total costs are equal for all alternative locations. D. variable costs are equal for two alternative locations. E. fixed costs equal variable costs for one location.
A. total costs are equal for two alternative locations.
What is the formula for determining the number of kanban cards or containers? A. (Demand during lead time + Safety stock) / Size of container B. (Demand during lead time / Size of container) + Safety stock C. (EOQ + Safety stock) / Size of container EOQ / Size of container
A. (Demand during lead time + Safety stock) / Size of container
An inventory decision rule states, "When the inventory level goes down to 14 gearboxes, 100 gearboxes will be ordered." Which of the following statements is TRUE? A) One hundred is the reorder point, and 14 is the order quantity. B) Fourteen is the reorder point, and 100 is the order quantity. C) The number 100 is a function of demand during lead time. D) Fourteen is the safety stock, and 100 is the reorder point. E) None of the above is true.
B) Fourteen is the reorder point, and 100 is the order quantity.
The Japanese concept of a company coalition of suppliers is: A. kaizen. B. keiretsu. C. illegal. D. dim sum. E. poka-yoke.
B. keiretsu.
A Six Sigma program has how many defects per million? A. 2,700 B. 3.4 C. 1,000 D. 34 E. 6 times the standard deviation
B. 3.4
Vertical integration appears particularly advantageous when the organization has: A. a very specialized product. B. a large market share. C. little experience operating an acquired vendor. D. purchases that are a relatively small percent of sales. E. a very common, undifferentiated product.
B. a large market share.
Quality lies in the eyes of the beholder" is: A. an unrealistic definition of quality. B. a user-based definition of quality. C. the definition of quality proposed by the American Society for Quality. D. a manufacturing-based definition of quality. E. a product-based definition of quality.
B. a user-based definition of quality.
The philosophy of zero defects is: A. unrealistic. B. consistent with the commitment to continuous improvement. . C. the result of Deming's research. D. prohibitively costly. E. an ultimate goal; in practice, 1 to 2% defects is acceptable
B. consistent with the commitment to continuous improvement.
Which of the following is NOT an advantage of the "few suppliers" sourcing strategy? A. suppliers' willingness to provide technological expertise B. less vulnerable trade secrets C. suppliers have a learning curve that yields lower transaction and production costs D. creation of value by allowing suppliers to have economies of scale E. suppliers are more likely to understand the broad objectives of the end customer
B. less vulnerable trade secrets
The reason fast food restaurants often are found in close proximity to each other is: A. they enjoy competition. B. location clustering near high traffic flows. C. low cost. D. availability of skilled labor. E. All of the above.
B. location clustering near high traffic flows.
When making a location decision at the country level, which of these would be considered? A. corporate desires B. location of markets C. air, rail, highway, waterway systems D. land/construction costs E. zoning restrictions
B. location of markets
All of the following costs are likely to decrease as a result of better quality EXCEPT: A. scrap costs. B. maintenance costs. C. customer dissatisfaction costs. D. warranty and service costs. E. inspection costs.
B. maintenance costs.
A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters as usual. When this large order is sent to the distributor, the distributor assumes the large size is a trend, not a one-time event. The distributor therefore places an even larger order with the lobsterman. This behavior is the result of which of the following? A. CPFR B. the bullwhip effect C. vendor-managed inventory D. double marginalization E. postponement
B. the bullwhip effect
Which of the following describes using one supplier for a component and a second supplier for another component, where each supplier acts as a backup for the other? A. outsourcing B. cross-sourcing C. parallel-sourcing D. dual-sourcing E. backup-sourcing
B. cross-sourcing
Which of the following is NOT one of the principles for standard work practice at Toyota? A. Work is completely specified as to content, sequence, timing, and outcome. B. Improvements in the system must be made in accordance with the "scientific method," at the highest possible level in the organization. C. Material and service flows are to be simple and direct. D. Internal and external customer-supplier connections are direct, specifying personnel, methods, timing, and quantity.
B. Improvements in the system must be made in accordance with the "scientific method," at the highest possible level in the organization.
What is an arrangement in which the supplier maintains title to the inventory until it is used? A. supplier control B. consignment inventory C. postponement D. delayed transfer
B. consignment inventory
Which of the following would NOT typically be considered as part of a manufacturing firm's supply chain? A. wholesalers B. landscaping contractors C. distributors D. suppliers E. retailers
B. landscaping contractors
A certain type of computer costs $1,000, and the annual holding cost is 25% of the value of the item. Annual demand is 10,000 units, and the order cost is $150 per order. What is the approximate economic order quantity? A) 16 B) 70 C) 110 D) 183 E) 600
C) 110
If the actual order quantity is the economic order quantity in a problem that meets the assumptions of the economic order quantity model shown below, the average amount of inventory on hand: Q* = √2DS/H A) is smaller than the holding cost per unit. B) is zero. C) is one-half of the economic order quantity. D) is affected by the amount of product cost. E) goes down if the holding cost per unit goes down.
C) is one-half of the economic order quantity.
e two most basic inventory questions answered by the typical inventory model are: A) timing of orders and cost of orders. B) order quantity and cost of orders. C) timing of orders and order quantity. D) order quantity and service level. E) ordering cost and carrying cost.
C) timing of orders and order quantity.
Most inventory models attempt to minimize: A) the likelihood of a stockout. B) the number of items ordered. C) total inventory-based costs. D) the number of orders placed. E) the safety stock.
C) total inventory-based costs.
PDCA, developed by Shewhart, stands for which of the following? A. Problemminus−Dominus−Continueminus−Act B. Planminus−Developminus−Checkminus−Accept C. Planminus−Dominus−Checkminus−Act D. Problemminus−Develop Solutionminus−Checkminus−Act E. Prepareminus−Developminus−Createminus−Assess
C. Planminus−Dominus−Checkminus−Act
A product has a demand of 4000 units per year. Ordering cost is $20, and holding cost is $4 per unit per year. The cost-minimizing solution for this product is to order A. all 4000 units at one time. B. every 20 days. C. 200 units per order. D. 10 times per year. E. none of the above
C. 200 units per order
Companies with the highest levels of quality are how many times more productive than their competitors with the lowest quality levels? A. 3 B. 2 C. 5 D. 4 E. None of the above because quality has no impact on productivity (units/labor hr.).
C. 5
Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor? A. Furniture makers choose to locate near the source of good hardwoods, even though it means locating near other furniture manufacturers. B. Soft drinks are bottled in many local plants, where carbonated water is added to proprietary syrups that may have been shipped long distances. C. Few people will travel out-of state for a routine haircut. D. Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital. E. Metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's source.
C. Few people will travel out-of state for a routine haircut.
Why is Northern Mexico used as a cluster for electronics firms? A. natural resources of land and climate B. high traffic flows C. NAFTA D. high per capita GDP E. venture capitalists located nearby
C. NAFTA
Making it right the first time" is: A. a product-based definition of quality. B. the definition of quality proposed by the American Society for Quality C. a manufacturing-based definition of quality. D. an unrealistic definition of quality. E. a user-based definition of quality.
C. a manufacturing-based definition of quality.
Among the following choices, an operations manager might best evaluate political risk of a country by looking at which type of country ranking? A. based on magnitude of government social programs B. based on competitiveness C. based on corruption D. based on average duration between presidential/prime minister elections E. based on cost of doing business
C. based on corruption
A successful TQM program incorporates all EXCEPT which of the following? A. employee involvement B. JIT C. centralized decision-making authority D. benchmarking E. continuous improvement
C. centralized decision-making authority
When making a location decision at the region/community level, which of these would be considered? A. zoning restrictions B. government rules, attitudes, stability, incentives C. cost and availability of utilities D. air, rail, highway, waterway systems E. cultural and economic issues
C. cost and availability of utilities
Regarding the quality of design, production, and distribution of products, an ethical requirement for management is to: A. gain ISO 9000 certification for the organization. B. obtain a product safety certificate from the Consumer Product Safety Commission. C. determine whether any of the organization's stakeholders are being wronged by poor quality products. D. compare the cost of product liability to the external failure cost. E. have the organization's legal staff write disclaimers in the product instruction booklets.
C. determine whether any of the organization's stakeholders are being wronged by poor quality products.
The center-of-gravity method is used primarily to determine what type of locations? A. call center locations B. service locations C. distribution center locations D. supplier locations E. manufacturing locations
C. distribution center locations
Which of the four major categories of quality costs is particularly hard to quantify? A. internal failure costs B. prevention costs C. external failure costs D. appraisal costs E. None is hard to quantify.
C. external failure costs
Japanese manufacturers often pursue a strategy that is part collaboration, part purchasing from a few suppliers, and part vertical integration. What is this approach called? A. kaizen B. kanban C. keiretsu D. samurai E. poka-yoke
C. keiretsu
For which corporate strategy(ies) should supply chain inventory be minimized? A. response B. low cost and response C. low cost and differentiation D. differentiation E. low cost
C. low cost and differentiation
Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. What is the term associated with this phenomenon? A. bureaucratic risk B. judicial risk C. political risk D. democratic risk E. legislative risk
C. political risk
A location decision for a traditional department store (e.g., Macy's) would tend to have what type of focus? A. labor focus B. education focus C. revenue focus D. cost focus E. environmental focus
C. revenue focus
Which of the following is NOT one of the four main types of inventory? A. raw material inventory B. maintenance/repair/operating supply inventory C. safety stock inventory D. work-in-process inventory E. finished-goods inventory
C. safety stock inventory
Which of the following is NOT among the eight determinants of revenue and volume for a service firm? A. quality of management B. competition in the area C. shipment cost of finished goods D. uniqueness of the firm's and the competitors' locations E. purchasing power of the customer-drawing area
C. shipment cost of finished goods
Which of the following is NOT a condition that favors the success of vertical integration? A. availability of capital B. sufficiently high demand C. small market share D. availability of managerial talent E. All of the above favor the success of vertical integration
C. small market share
Which of the following is NOT a Lean inventory tactic? A. reduce setup time B. use group technology C. use a push system to move inventory D. reduce lot size
C. use a push system to move inventory
Three broad categories of definitions of quality are: A. internal, external, and prevention. B. low-cost, response, and differentiation. C. user based, manufacturing based, and product based. D. product quality, service quality, and organizational quality. E. Pareto, Shewhart, and Deming.
C. user based, manufacturing based, and product based
Which of the following workers is the most productive? A. $30 wages, 5 parts produced B. $10 wages, 1 part produced C. $100 wages, 21 parts produced D. $500 wages, 100 parts produced E. $50 wages, 10 parts produced
C. $100 wages, 21 parts produced
A employee produces 15 parts during a shift in which he made $90. What is the labor content of the product? A. $5 B. $1,350 C. $6 D. $0.167 E. $90
C. $6
Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods? A. simulation B. transportation method C. factor-rating method D. center-of-gravity method E. locational cost-volume analysis
C. factor-rating method
Which of the following methods best considers intangible costs related to a location decision? A. the transportation method B. crossover methods C. factor-rating method D. locational cost-volume analysis E. center-of-gravity method
C. factor-rating method
In location planning, environmental regulations, cost and availability of utilities, and taxes are: A. country factors. B. site-related factors. C. regional/community factors. D. global factors. E. None of the above.
C. regional/community factors.
Which one of the following is NOT one of the six sourcing strategies? A. virtual companies B. vertical integration C. short-term relationships with few suppliers D. keiretsu E. negotiation with many suppliers
C. short-term relationships with few suppliers
Which of the following statements is true regarding lean sustainability? A. Sustainability is focused on only the immediate process and system. B. Lean drives out waste because waste has adverse affects on the environment, while sustainability drives out waste because waste adds nothing for the customer C. Lean and sustainability both seek to maximize resource and economic efficiency. D. Lean requires examining the systems in which the firm and its stakeholders operate
C. Lean and sustainability both seek to maximize resource and economic efficiency.
JIT has an internal focus while lean production begins with an external focus on A. supplier relationships. B. logistics. C. customers. D. design.
C. customers.
9) All EXCEPT which of the following statements about ABC analysis are true? A) In ABC analysis, inventory may be categorized by measures other than dollar volume. B) ABC analysis categorizes on-hand inventory into three groups based on annual dollar volume. C) ABC analysis is an application of the Pareto principle. D) ABC analysis suggests that all items require the same high degree of control. E) ABC analysis suggests that there are the critical few and the trivial many inventory items.
D) ABC analysis suggests that all items require the same high degree of control
Which of the following statements about the basic EOQ model is FALSE? A) If the setup cost were to decrease, the EOQ would fall. B) If annual demand were to double, the number of orders per year would increase. C) If the ordering cost were to increase, the EOQ would rise. D) If annual demand were to double, the EOQ would also double. E) All of the above statements are true.
D) If annual demand were to double, the EOQ would also double.
Which of the following is NOT an assumption of the economic order quantity model shown below? Q* =√2DS/H A) Demand is known, constant, and independent. B) Lead time is known and constant. C) Quantity discounts are not possible. D) Production and use can occur simultaneously. E) The only variable costs are setup cost and holding (or carrying) cost.
D) Production and use can occur simultaneously.
Among the advantages of cycle counting is that it: A) makes the annual physical inventory more acceptable to management. B) does not require the detailed records necessary when annual physical inventory is used. C) does not require highly trained people. D) allows more rapid identification of errors and consequent remedial action than is possible with annual physical inventory. E) does not need to be performed for less expensive items.
D) allows more rapid identification of errors and consequent remedial action than is possible with annual physical inventory.
The purpose of safety stock is to: A) replace failed units with good ones. B) eliminate the possibility of a stockout. C) eliminate the likelihood of a stockout due to erroneous inventory tally. D) control the likelihood of a stockout due to variable demand and/or lead time. E) protect the firm from a sudden decrease in demand.
D) control the likelihood of a stockout due to variable demand and/or lead time.
The proper quantity of safety stock is typically determined by: A) using a single-period model. B) carrying sufficient safety stock so as to eliminate all stockouts. C) multiplying the EOQ by the desired service level. D) setting the level of safety stock so that a given stockout risk is not exceeded. E) minimizing total costs.
D) setting the level of safety stock so that a given stockout risk is not exceeded
What is the primary purpose of the basic economic order quantity model shown below? Q* =√2DS/H A) to calculate the reorder point, so that replenishments take place at the proper time B) to minimize the sum of carrying cost and holding cost C) to maximize the customer service level D) to minimize the sum of setup cost and holding cost E) to calculate the optimum safety stock
D) to minimize the sum of setup cost and holding cost
Outsourcing: A. utilizes the efficiency that comes with specialization. B. transfers traditional internal activities to outside vendors. C. allows the outsourcing firm to focus on its key success factors. D. All of the above are true of outsourcing. E. None of the above is true of outsourcing.
D. All of the above are true of outsourcing.
To become ISO 9000 certified, organizations must: A. have an ongoing series of audits of their products or service. B. have an onsite assessment. C. document quality procedures. D. All of the above. E. None of the above.
D. All of the above.
Which of the following attributes is NOT for lean operations? A. Develop worker flexibility. B. Develop collaborative partnerships with suppliers. C. Empower employees. D. Build processes that increase variability.
D. Build processes that increase variability.
Which of the following statements is NOT true? A. Legislation such as the Consumer Product Safety Act sets and enforces product standards by banning products that do not reach those standards. B. Inferior products harm a firm's profitability and a nation's balance of payments. C. Qualitylong dash—be it good or badlong dash—will show up in perceptions about a firm's new products, employment practices, and supplier relations. D. Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product. E. Self-promotion is not a substitute for quality products.
D. Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product.
A carpet manufacturer has delivered carpet directly to the end consumer rather than to the carpet dealer. The carpet manufacturer is practicing which of the following? A. float reduction B. cross-docking C. channel assembly D. drop shipping E. postponement
D. drop shipping
A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributors. This is an example of which of the following? A. current transformation B. horizontal integration C. backward integration D. forward integration E. keiretsu
D. forward integration
When Daimler and BMW pooled resources to develop standardized auto components, the sourcing strategy could best be described by which of the following? A. virtual companies B. vertical integration C. few suppliers D. joint venture E. keiretsu
D. joint venture
Which of the following words means continuous improvement in Japanese? A. poka-yoke B. kanban C. sensei D. kaizen
D. kaizen
Which sourcing strategy is particularly common when the products being sourced are commodities? A. vertical integration B. few suppliers C. keiretsu D. many suppliers E. virtual companies
D. many suppliers
Industrial location analysis typically attempts to: A. focus more on human resources. B. ignore exchange rates and currency risks. C. avoid countries with strict environmental regulations. D. minimize costs. E. maximize sales.
D. minimize costs.
When quantity discounts are allowed, the cost-minimizing order quantity: A. may be a quantity below that at which one qualifies for that price. B. minimizes the unit purchase price. C. minimizes the sum of holding and ordering costs. D. minimizes the sum of holding, ordering, and product costs. E. is always an EOQ quantity.
D. minimizes the sum of holding, ordering, and product costs.
What is the practice of keeping a product generic as long as possible before customizing? A. forward integration B. keiretsu C. backward integration D. postponement E. vendor-managed inventory
D. postponement
Which of the following is a primary supplier selection criterion for a firm pursuing a differentiation strategy? A. capacity B. speed C. flexibility D. product development skills E. cost
D. product development skills
Stakeholders who are affected by the production and marketing of poor quality products include: A. only stockholders, creditors, and owners. B. only stockholders and organizational executives and managers. C. suppliers and distributors, but not customers. D. stockholders, employees, and customers. E. suppliers and creditors, but not distributors.
D. stockholders, employees, and customers.
Virtually every restaurant deals with its suppliers on A. an EOQ basis. B. a production order quantity basis. C. a fixed-period inventory system basis. D. a JIT basis.
D. a JIT basis.
Which of the following is an element of inventory holding Which of the following is an element of inventory holding costs? A) housing costs B) material handling costs C) investment costs D) pilferage, scrap, and obsolescence E) All of the above are elements of inventory holding costs.
E) All of the above are elements of inventory holding costs.
Which category of inventory holding costs has a much higher percentage than average for rapid-change industries such as PCs and cell phones? A) housing costs B) material handling costs C) labor cost D) investment costs E) pilferage, scrap, and obsolescence
E) pilferage, scrap, and obsolescence
Which of the following is a function of inventory? A. to take advantage of quantity discounts B. to hedge against inflation c. to decouple various parts of the production process D. to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand E. All of the above are functions of inventory.
E. All of the above are functions of inventory.
The bullwhip effect: A. occurs because of distortions in information in the supply chain. B. increases the costs associated with inventory in the supply chain. C. results in increasing fluctuations at each step of the sequence. D. occurs as orders are relayed from retailers to distributors to wholesalers to manufacturers. E. All of the above are true.
E. All of the above are true.
Which of the following statements regarding the reorder point is TRUE? A. A shorter lead time implies a smaller reorder point. B. The reorder point is that quantity that triggers an action to restock an item. C. There is a reorder point even if lead time and demand during lead time are constant. D. The reorder point is larger than d times × L if safety stock is present. E. All of the above are true.
E. All of the above are true.
Which of the following statements about quantity discounts is FALSE? A. In inventory management, item cost becomes relevant to order quantity decisions when a quantity discount is available. B. The smaller the ordering cost, the less attractive a discount schedule will be. C. If carrying costs are expressed as a percentage of value, EOQ is larger at each lower price in the discount schedule. D. The cost-minimizing solution may or may not be where annual holding costs equal annual ordering costs. E. The larger the annual demand, the less attractive a discount schedule will be
E. The larger the annual demand, the less attractive a discount schedule will be
Total quality management emphasizes: A. the responsibility of the quality control staff to identify and solve all quality-related problems. B. a system where strong managers are the only decision makers. C. ISO 14000 certification. D. a process where mostly statisticians get involved. E. a commitment to quality that goes beyond internal company issues to suppliers and customers.
E. a commitment to quality that goes beyond internal company issues to suppliers and customers.
Kaizen is a Japanese term meaning: A. setting standards. B. a foolproof mechanism. C. a fishbone diagram. D. just-in-time (JIT). E. continuous improvement.
E. continuous improvement.
A location decision for an appliance manufacturer would tend to have what type of focus? A. environmental focus B. focus on finding very highly skilled technicians C. revenue focus D. education focus E. cost focus
E. cost focus
Drop shipping: A. is equivalent to cross-docking. B. is the opposite of a blanket order. C. is a good reason to find a new firm to ship your products. D. is the same thing as keiretsu. E. means the supplier will ship directly to the end consumer, rather than to the seller.
E. means the supplier will ship directly to the end consumer, rather than to the seller
The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is: A. offshoring. B. a standard use of the make-or-buy decision. C. not allowed by the ethics code of the Supply Management Institute. D. keiretsu. E. outsourcing
E. outsourcing
Hewlett-Packard delays customization of its laser printers as long as possible. This is an example of which of the following? A. timely customization B. backward integration C. standardization D. vendor-managed inventory E. postponement
E. postponement
Which of the following best describes vertical integration? A. develop the ability to produce the specified good more efficiently than before B. sell products to a supplier or a distributor C. build long-term partnerships with a few suppliers D. develop the ability to produce products that complement the original product E. produce goods or services previously purchased
E. produce goods or services previously purchased
A successful quality strategy features which of the following elements? A. engaging employees in the necessary activities to implement quality B. an understanding of the principles of quality C. an organizational culture that fosters quality D. A and C E. A, B, and C
E. A, B, and C
32. Which of the following statements about ABC analysis is false? a. ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings. b. In ABC analysis, "A" Items are tightly controlled, have accurate records, and receive regular review by major decision makers. c. In ABC analysis, "C" Items have minimal records, periodic review, and simple controls. d. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings. e. All of the above statements are true.
d. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.
