badm 324 exam 1

Which of the following is not considered as the cost of controlling quality? A. Testing B. Retesting C. Prevention maintenance D. Quality assurance programs E. Employee training

B. Retesting

Which of the following statements about process quality control is NOT true?

Common cause variation can be eliminated from the process by removing the potential causes.

Which of the following is not the reason to make?

Lack of production capacity.

Which correctly identifies the following examples of quality costs as internal failure (I), external failure (E), appraisal costs (A), and prevention costs (P)?

Scrap =I; production recalls and loss of customers =E; in-line inspections =A; machine maintenance and operator training =P.

In statistical process control (SPC), special or assignable causes of variation:

are outside and nonrandom problems such as the breakdown of machinery, material variation, or human error.

Expediting is:

may be caused by the buyer or the supplier.

The real costs of quality:

rise significantly as defects increase in the finished product

Zero-defects quality strategy emphasizes

"do it right the first time"

Which statement about ABC analysis is correct? A. Two-bin (Kanban) system can be used to management Class C items. B. Periodical review system can be used to manage Class A items. C. B items are high volume and high value items. D. Continous review system can be used to manage Class B items. E. A items are slower mover, and do not need many attention.

A.

Outsourcing of service is:

Realistic if service requirements and quality expectations can be clearly defined.

Which of the following statements about Cross-Docking is not correct?

There is a large storage area in a Cross-Docking

The three main inputs of a material requirements planning (MRP) system are:

a bill of material, a master production schedule, and the inventory record.

When a retailer uses daily sales of each product to identify patterns and to forecast inventory requirements, this is an example of:

a time series forecasting technique

Demand for buttons and zippers at a sportswear manufacturer is an example of:

dependent demand

ISO 9001:2008 provides a tested framework for a systematic approach to consistently delivering product that satisfies customers' expectations by:

providing a set of standardized requirements a quality system must meet.

A solicitation document that normally allows the supplier to submit technical specifications is called an:

request for proposal

In F.O.B. Origin:

the buyer gains title of the goods when the carrier signs at point of origin.

One purpose of a requisition is:

to clarify the description of need before communicating with potential suppliers.

Which of the following sourcing business models does not emphasize collaborative relationship with suppliers? A. Approved Provider Model B. Preferred Provider Model C. Performance-Based Model D. Managed Service Model E. Vested Business Model

A is correct

Subcontracting refers to the practice of:

A prime contractor bidding out part of a job to another contractor.

Which of the following techniques are used for continuous improvement?

A. Pareto charts. B. Cause-and-effect diagrams. C. Process control charts. Correct D. All of the above.

Supply may contribute to the containment of the costs of poor quality by addressing:

A. appraisal costs. B. internal costs. C. external costs. D. prevention costs. CorrectE. all of the above.

Which of the following statement about inventory review system is not correct? A. Fixed time period system has high risk of stock out, because stock out may occur over lead time and review period. B. In fixed time period review system, every addition and withdraw in inventory should be recorded precisely. C. Fixed order quantity system generate high maintenance cost. D. Under the fixed order quantity system, order quantity is EOQ, but the time intervals between two orders differ depends on demand rate. E. Under the fixed time period system, order quantity varies depends on demand rate, but the review period is fixed.

B.

Which statement is most accurate when thinking about deciding how much to buy: A. the costs of placing orders and holding inventory are so low they do not significantly affect the decision of how much to buy. B. balancing price, volume, carrying cost, and the cost of stockouts is key to successfully determining how much to buy at any point in time. C. the price premium to attain the desired quantity is usually less than the costs of not having materials available when needed. D. forecasts of future demand, lead times, and prices are usually fairly accurate. E. managers seldom make purchase decisions until they are absolutely sure of the volume required.

B.

Which of the following statement about supplier may not be the reason to be listed as qualified supplier? A. The supplier offers low price with desired quality. B. The supplier geographically locates close to our plant. C. The supplier is a men-owned business. D. The supplier is minority-owned business. E. The supplier has a quality advantage.

C is correct

Non-core competencies of an organization are typically :

The first things to be outsourced to access supplier expertise.

When a commercial janitorial service company predicts demand for janitorial services using commercial building permits issued, office leasing and vacancy rates, this is an example of:

a causal model

Outsourcing is

a high risk venture because the costs of reversing the decision are often high.

When selecting freight carriers, buyers are most concerned with:

ability to deliver on-time with no damages.

Outsourcing or using third-party logistics services have:

increased as organizations focus on core competencies.

When the carrying cost of inventory is expressed as a percentage:

it is multiplied by the material unit cost to calculate the per unit carrying cost.

Some of the concerns about outsourcing are:

layoffs, exposure to supplier's ricks, and loss of control.

Which of the following ways to formalize the commitment commonly used before a negotiation is completed?

letter of intent

Outsourcing:

may reduce or control operating costs, improve focus on core competencies, and gain access to world-class capabilities.

When a team decides that a task or function currently performed by company employees is a noncore competency, the team is likely to recommend:

outsourcing

If a non-governement buyer has a clear and unambiguous description or specification and wants to find out which supplier can deliver the best value when and where needed, he or she will typically issue a:

request for quotation (RFQ).

A material requirements planning (MRP) system:

requires explosion of the bill of material as the basis of planning

Total quality management (TQM) tools include

statistical process control (SPC) & quality function deployment (QFD)

The return on assets effect (ROA) quantifies and measures:

the impact of supply actions on inventory and the balance sheet.

In FOB Destination, Freight Collect and Allowed is when:

the seller holds title of the goods during transit and bears the freight charges, but buyer pays the freight charges

An external failure cost is:

warranty costs