Principles of Management Exam 2

Fredrick W. Taylor is credited with introducing psychology into the workplace. Select one: True False

False

Managers at Arnold Palmer Hospital take quality so seriously that the hospital typically is a national leader in several quality areas-so that continuous improvement is no longer necessary.

False

Normal time equals the average observed time multiplied by the allowance factor. Select one: True False

False

Profit-sharing is a motivation and incentive system where executives receive stock options. Select one: True False

False

Successful process redesign focuses on departmental areas where small, continuous improvements can be made. Select one: True False

False

The layout approach that addresses trade-offs between space and material handling is called the fixed-position layout. Select one: True False

False

Work sampling and time studies are similar in that the analyst in both cases records the time taken by the worker to accomplish each step of the task. Select one: True False

False

A flowchart with the addition of a time axis becomes a process chart. Select one: True False

False

An example of the postponement strategy for improving service productivity is having the customer wait until you have sufficient time to serve the customer. Select one: True False

False

Cross-sourcing describes the practice of having two suppliers provide every component. Select one: True False

False

The classical stopwatch study, or time study, was originally proposed by Western Electric's Hawthorne Commission in the 1920s. Select one: True False

Feedback The correct answer is 'False'

Keiretsu refers to a company coalition that is part collaboration, part purchasing from many suppliers, and part vertical integration. Select one: True False

Feedback The correct answer is 'False'.

The supply chain management opportunity called postponement involves delaying deliveries to avoid accumulation of inventory at the customer's site. Select one: True False

Feedback The correct answer is 'False'.

A blanket order is a long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship. Select one: True False

Feedback The correct answer is 'True'.

Job rotation is a version of job enlargement. Select one: True False

Feedback The correct answer is 'True'.

Outsourcing is a form of specialization that allows the outsourcing firm to focus on its key success factors. Select one: True False

Feedback The correct answer is 'True'.

The objective of the make-or-buy decision is to help identify the products and services that can be obtained externally. Select one: True False

Feedback The correct answer is 'True'.

Continuous improvement is based on the philosophy that any aspect of an operation can be improved. Select one: True False

true

The assembly line is a classic example of a repetitive process. Select one: True False

TRue

Vertical integration, whether forward or backward, requires the firm to become more specialized. Select one: True False

The correct answer is 'False'.

Equitable pay alone cannot achieve a reasonable quality of work life in an organization. Select one: True False

True

Flexible manufacturing systems, because of easily changed control programs, are able to perform such tasks as manufacturing one-of-a-kind parts economically. Select one: True False

True

Hackman and Oldham's five desirable characteristics of job design include job significance and autonomy. Select one: True False

True

One use of camera-and-computer-based vision systems is to replace humans doing tedious and error-prone visual inspection activities. Select one: True False

True

The factor-rating method can consider both tangible and intangible costs. Select one: True False

True

The graphic approach to locational cost-volume analysis displays the range of volume over which each location is preferable. Select one: True False

true

For which corporate strategy(ies) should supply chain inventory be minimized? Select one: a. low cost b. response c. differentiation d. low cost and response e. low cost and differentiation

e. low cost and differentiation Correct

Time-function mapping is a flowchart with time added to the horizontal axis. Select one: True False

true

In time studies, normal time is: Select one: a. average observed time multiplied by a performance rating factor. b. larger than standard time. c. determined by historical experience. d. converted to standard time by the performance rating factor. e. one hour later during the summer months.

a. average observed time multiplied by a performance rating factor. Correct

The 50th percentile female is 62.9 inches tall and should have a chair: Select one: a. 15.7 inches high. b. 16.7 inches high. c. 17.7 inches high. d. 18.7 inches high. e. None of these

a. 15.7 inches high. Correct

A Six Sigma program has how many defects per million? Select one: a. 3.4 b. 34 c. 1000 d. 6 times the standard deviation e. 2700

a. 3.4 Correct

Suppose that the allowance factor for a job is 0.10, and the normal time is 5 hours. What is the standard time? Select one: a. 5.6 hours b. 50.0 hours c. 4.9 hours d. 5.1 hours e. 4.5 hours

a. 5.6 hours Correct

Which of the following is a visual signal at a machine that notifies support personnel about the machine's status? Select one: a. Andon b. Endon c. Indon d. Ondon e. Undon

a. Andon Correct

Cross-docking refers to which of the following? Select one: a. Avoid placing materials or supplies in storage by processing them as they are received. b. The same docks can be used either incoming or outbound shipments. c. The same dock is used to unload and then reload the same truck. d. Warehouse docks are designed in the shape of a cross. e. Docks are placed in the warehouse according to the direction (north, south, east, or west) from which the truck is arriving.

a. Avoid placing materials or supplies in storage by processing them as they are received.

PDCA, developed by Shewhart, stands for which of the following? a. Plan-Do-Check-Act Correct b. Plan-Develop-Check-Accept c. Problem-Develop Solution-Check-Act d. Problem-Do-Continue-Act e. Prepare-Develop-Create-Assess

a. Plan-Do-Check-Act

A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per year, and variable costs $0.30 per unit. At alternative B, fixed costs would be $3,600,000 per year, with variable costs of $0.35 per unit. If annual demand is expected to be 10 million units, which plant offers the lowest total cost? Select one: a. Plant A, because it is cheaper than Plant B for all volumes over 8,000,000 units. b. Plant B, because it is cheaper than Plant A for all volumes over 8,000,000 units. c. Plant A, because it is cheaper than Plant B for all volumes. d. Plant B, because it has the lower variable cost per unit. e. Neither Plant A nor Plant B, because the crossover point is at 10 million units.

a. Plant A, because it is cheaper than Plant B for all volumes over 8,000,000 units.

Which of the following statements regarding "Six Sigma" is TRUE? Select one: a. The term has two distinct meanings-one is statistical; the other is a comprehensive quality system. b. Six Sigma means that about 94 percent of a firm's output is free of defects. c. The Six Sigma program was developed by Toyota in the 1970s. d. The Six Sigma program is for manufacturing firms and is not applicable to services. e. Six Sigma certification is granted by the International Standards Organization (ISO).

a. The term has two distinct meanings-one is statistical; the other is a comprehensive quality system. Correct

ASRS stands for which of the following? Select one: a. automated storage and retrieval system b. automated storage and recovery system c. automated scan and recognize system d. automated scan and retail system e. automated scan and retrieval system

a. automated storage and retrieval system Correct

Which of the following products is likely to be assembled on a repetitive process line? Select one: a. automobiles b. custom personal computers c. custom cakes d. steel e. beer

a. automobiles Correct

A fishbone chart is also known as a: Select one: a. cause-and-effect diagram. b. poka-yoke diagram. c. Kaizen diagram. d. Kanban diagram. e. Taguchi diagram.

a. cause-and-effect diagram. Correct

Computer-integrated manufacturing (CIM) includes manufacturing systems that have: Select one: a. computer-aided design, a flexible manufacturing system, inventory control, warehousing and shipping integrated. b. transaction processing, management information systems, and decision support systems integrated. c. automated guided vehicles, robots, and process control integrated. d. robots, automated guided vehicles, and transfer equipment integrated. e. all of their computers integrated with the marketing department.

a. computer-aided design, a flexible manufacturing system, inventory control, warehousing and shipping integrated. Correct

A location decision for an appliance manufacturer would tend to have what type of focus? Select one: a. cost focus b. focus on finding very highly skilled technicians c. revenue focus d. environmental focus e. education focus

a. cost focus Correct

Quality can improve profitability by reducing costs. Which of the following is not an aspect of reduced costs by quality improvements? Select one: a. flexible pricing b. increased productivity c. lower rework and scrap costs d. lower warranty costs e. All of these are aspects of reduced costs by quality improvements.

a. flexible pricing Correct

The advantage of additive manufacturing includes supporting: Select one: a. innovative product design. b. minimal custom tooling. c. low inventory. d. speed to market. e. All of these

a. innovative product design.

A big advantage of a process-oriented layout is: Select one: a. its flexibility in equipment and labor assignments. b. its low cost. c. the simplified scheduling problem presented by this layout strategy. d. the ability to employ low-skilled labor. e. its high equipment utilization.

a. its flexibility in equipment and labor assignments. Correct

The "four Ms" of cause-and-effect diagrams are: Select one: a. material, machinery/equipment, manpower, and methods. b. material, methods, men, and mental attitude. c. named after four quality experts. d. material, management, manpower, and motivation. e. mentality, motivation, management, and manpower.

a. material, machinery/equipment, manpower, and methods. Correct

What is the practice of keeping a product generic as long as possible before customizing? Select one: a. postponement b. keiretsu c. vendor-managed inventory d. forward integration e. backward integration

a. postponement Correct

Which of the following is not a method used to set labor standards? Select one: a. historical experience b. time studies c. predetermined time standards d. work sampling e. government laws and regulations

e. government laws and regulations Correct

Which of the following is NOT one of McDonald's "seven major innovations"? Select one: a. the Happy Meal b. drive-through windows c. breakfast menus d. play areas e. self-service kiosks

a. the Happy Meal Correct

Mathematically, takt time is: Select one: a. total work time available divided by units required. b. units required divided by workers required. c. a fictional time increment similar to a therblig. d. workers required divided by total operation time required. e. units required divided by total work time available.

a. total work time available divided by units required. Correct

Most pit crew members have background experience in what area? Select one: a. mechanical engineering b. athletics c. car mechanics d. automobile race driving e. No specific area-crew members come from all sorts of backgrounds.

b. athletics Correct

The main issue in designing process-oriented layouts concerns the relative positioning of: Select one: a. safety devices. b. departments or work centers. c. raw materials. d. entrances, loading docks, etc. e. supervisors to their employees.

b. departments or work centers. Correct

Poka-yoke is the Japanese term for: Select one: a. card. b. foolproof. c. continuous improvement. d. fishbone diagram. e. just-in-time production.

b. foolproof. Correct

Deloitte & Touche solved the empty desk problem by: Select one: a. assigning permanent desks. b. implementing a "hoteling" program. c. creating open offices. d. no longer allowing employees to work from home. e. reducing the number of allowable sick days per employee.

b. implementing a "hoteling" program. Correct

Four of the components of job design are: Select one: a. employment stability, work schedules, work sampling, and motivation & incentive systems. b. job specialization, job expansion, psychological components, and self-directed teams. c. labor specialization and enrichment, motivation and incentive systems, employment stability, and work sampling. d. ergonomics and work methods, method time measurement, work schedules, and incentive systems. e. labor specialization, time studies, work sampling, and pre-determined time standards.

b. job specialization, job expansion, psychological components, and self-directed teams. Correct

The reason fast food restaurants often are found in close proximity to each other is: Select one: a. they enjoy competition. b. location clustering near high traffic flows. c. low cost. d. availability of skilled labor. e. All of these.

b. location clustering near high traffic flows. Correct

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? Select one: a. bureaucratic risk b. political risk c. legislative risk d. judicial risk e. democratic risk

b. political risk Correct

Which of the following is NOT among the eight determinants of revenue and volume for a service firm? Select one: a. quality of management b. shipment cost of finished goods c. purchasing power of the customer-drawing area d. uniqueness of the firm's and the competitors' locations e. competition in the area

b. shipment cost of finished goods Correct

A employee produces 15 parts during a shift in which he made $90. What is the labor content of the product? Select one: a. $90 b. $5 c. $6 d. $0.167 e. $1,350

c. $6 Correct

A time measurement unit, or TMU, is: Select one: a. the same as a Therblig. b. 0.00001 minute. c. 0.00001 hour. d. the duration of the easiest GET motion. e. an historical experience standard.

c. 0.00001 hour. Correct

A production line is to be designed for a job with four tasks. The task times are 2.4 minutes, 1.4 minutes, 0.9 minutes, and 1.7 minutes. After line balancing, the largest possible assigned cycle time is ________ minutes, and the smallest possible assigned cycle time is ________ minutes. Select one: a. 1.8; 1.4 b. 1.6; 0.9 c. 6.4; 2.4 d. 2.4; 0.9 e. 6.4; 0.9

c. 6.4; 2.4 Correct

Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of $9,000 and variable costs of $2.25 per unit. Which of the following statements is TRUE? Select one: a. The crossover point is approximately 6667 units. b. It is impossible for one process to have both of its costs lower than those of another process. c. Process Y is cheaper than process X at all volumes. d. Process X should be selected for very large production volumes. e. Process X is more profitable than process Y and should be selected.

c. Process Y is cheaper than process X at all volumes. Correct

Which of the following statements is true regarding the leverage of supply chain savings? Select one: a. Supply chain leverage is about the same for all industries. b. Supply chain savings exert more leverage as the firm's purchases are a smaller percent of sales. c. Supply chain savings exert more leverage as the firm's net profit margin decreases. d. Supply chain leverage depends only upon the percent of sales spent in the supply chain. e. None of these is true.

c. Supply chain savings exert more leverage as the firm's net profit margin decreases. Correct

What is the primary reason why retailers tend to locate high-draw items around the periphery of the store? Select one: a. More shelf space for those popular items is available around the periphery. b. There will be less congestion of customers than there would be in the middle. c. This arrangement will help to maximize customer exposure to other items in the store. d. It is easier to put large advertisement signs on the outside walls right next to the items. e. This arrangement allows customers to travel through the store as quickly as possible.

c. This arrangement will help to maximize customer exposure to other items in the store. Correct

A system using an automated work cell controlled by electronic signals from a common centralized computer facility is called: Select one: a. an adaptive control system. b. robotics. c. a flexible manufacturing system. d. an automatic guided vehicle (AGV) system. e. a manufacturing cell.

c. a flexible manufacturing system. Correct

"Making it right the first time" is a. an unrealistic definition of quality b. a user-based definition of quality c. a manufacturing-based definition of quality d. a product-based definition of quality e. the definition proposed by the American Society for Quality

c. a manufacturing-based definition of quality.

The phrase, "designed to show economy of motion by pointing out wasted motion and idle time (delay)," describes which of the following? Select one: a. a flow diagram b. an activity chart c. an operations chart d. a process chart e. a work sample

c. an operations chart Correct

A fried chicken fast-food chain that acquired feed mills and poultry farms has performed which of the following? Select one: a. horizontal integration b. forward integration c. backward integration d. current transformation e. job expansion

c. backward integration Correct

Therbligs are: Select one: a. the smallest unit of time used in methods time measurement exercises. b. the largest unit of time used in methods time measurement exercises. c. basic physical elements of motion as used in methods time measurement exercises. d. the full range of motions required to complete a job as used in methods time measurement exercises. e. the smallest amount of time required to complete a job.

c. basic physical elements of motion as used in methods time measurement exercises.

Geographic information systems can assist the location decision by: Select one: a. automating center-of-gravity problems. b. computerizing factor-rating analysis. c. combining geography with demographic analysis. d. updating transportation method solutions. e. providing good Internet placement for virtual storefronts.

c. combining geography with demographic analysis. Correct

The two most basic policies associated with employment stability are: Select one: a. job enrichment and job enlargement. b. employment for life and guaranteed minimum wage. c. follow demand exactly and hold employment constant. d. incentive plans and piece-rate plans. e. full-time and part-time.

c. follow demand exactly and hold employment constant. Correct

A product-focused process is commonly used to produce: Select one: a. high-volume, high-variety products. b. low-volume, high-variety products. c. high-volume, low-variety products. d. low-variety products at either high- or low-volume. e. high-volume products of either high- or low-variety.

c. high-volume, low-variety products. Correct

When Daimler and BMW pooled resources to develop standardized auto components, the sourcing strategy could best be described by which of the following? Select one: a. keiretsu b. virtual companies c. joint venture d. vertical integration e. few suppliers

c. joint venture Correct

The Japanese concept of a company coalition of suppliers is: Select one: a. poka-yoke. b. kaizen. c. keiretsu. d. dim sum. e. illegal.

c. keiretsu. Correct

Drop shipping: Select one: a. is equivalent to cross-docking. b. is the opposite of a blanket order. c. means the supplier will ship directly to the end consumer, rather than to the seller. d. is the same thing as keiretsu. e. is a good reason to find a new firm to ship your products.

c. means the supplier will ship directly to the end consumer, rather than to the seller.

Pareto charts are used to: Select one: a. identify inspection points in a process. b. outline production schedules. c. organize errors, problems, or defects. d. show material flow. e. show the range of values of a measurement and the frequency with which each value occurs.

c. organize errors, problems, or defects. Correct

Three of the four types of processes are: Select one: a. goods, services, and hybrids. b. manual, automated, and service. c. process focus, repetitive focus, and product focus. d. modular, continuous, and technological. e. input, transformation, and output.

c. process focus, repetitive focus, and product focus. Correct

Workspace can inspire informal and productive encounters if it balances what three physical and social aspects? Select one: a. proximity, privacy, and persuasion b. privacy, persuasion, and permission c. proximity, privacy, and permission d. proximity, persuasion, and permission e. proximity, persuasion, and passion

c. proximity, privacy, and permission Correct

Traffic counts and demographic analysis of drawing area are associated with: Select one: a. the center-of-gravity method. b. manufacturing location decisions. c. service location decisions. d. the transportation model. e. locational cost-volume analysis.

c. service location decisions. Correct

If the schedule calls for the production of 120 units per day and 480 minutes of production time are available per day, the cycle time would be 4 minutes. Select one: True False

true

Companies with the highest levels of quality are how many times more productive than their competitors with the lowest quality levels? a. 2 b. 3 c. 4 d. 5 Correct e. None of these because quality has no impact on productivity (units/labor hr.).

d. 5

To become ISO 9000 certified, organizations must: Select one: a. document quality procedures. b. have an onsite assessment. c. have an ongoing series of audits of their products or service. d. All of these e. None of these

d. All of these Correct

In assembly-line balancing, the theoretical minimum number of workstations is: Select one: a. the ratio of the sum of all task times to cycle time. b. always (when a fraction) rounded upward to the next larger integer value. c. not always possible to reach when tasks are actually assigned to stations. d. All of these. e. None of these.

d. All of these. Correct

Which of the following technologies could enable a cashier to scan the entire contents of a shopping cart in seconds? Select one: a. ASRS b. AGV c. CAD/CAM d. RFID e. FMS

d. RFID Correct

The fixed-position layout would be MOST appropriate in which of the following settings? Select one: a. a fast-food restaurant b. a doctor's office c. a casual dining restaurant d. a cruise ship assembly facility e. a washing machine assembly line

d. a cruise ship assembly facility Correct

Which of the following is NOT an information requirement for solving a load-distance problem to design a process layout? Select one: a. a list of departments or work centers b. a projection of work flows between the work centers c. the distance between locations d. a list of product cycle times e. the cost per unit of distance to move loads

d. a list of product cycle times Correct

A successful TQM program incorporates all EXCEPT which of the following? Select one: a. continuous improvement b. employee involvement c. benchmarking d. centralized decision-making authority e. JIT

d. centralized decision-making authority Correct

GE's recall of 3.1 million dishwashers cost the company more in repairs than the value of the actual dishwashers. This is an example of which quality principle? Select one: a. PDCA b. internal failure costs c. appraisal costs d. cost of poor quality is underestimated e. prevention costs

d. cost of poor quality is underestimated Correct

Cycle time is computed as: Select one: a. desired output divided by the daily operating time. b. daily operating time divided by the product of desired output and the sum of job times. c. the product of desired output and the sum of job times divided by daily operating time. d. daily operating time divided by the scheduled output. e. 1.00 minus station time.

d. daily operating time divided by the scheduled output.

Ambient conditions; spatial layout and functionality; and signs, symbols, and artifacts are all: Select one: a. indicators of imbalance on an assembly line. b. indicators that cross-docking has been successful. c. elements of customization in a warehouse layout. d. elements of servicescapes. e. elements of successful office layouts.

d. elements of servicescapes.

In mass service and professional service, the operations manager should focus extensively on: Select one: a. automation. b. equipment maintenance. c. sophisticated scheduling. d. human resources. e. cost-cutting initiatives.

d. human resources. Correct

Which of the following characteristics is NOT common to all four of Darden Restaurants' supply channels? Select one: a. supplier qualification b. product tracking c. independent audits d. refrigeration e. just-in-time delivery

d. refrigeration Correct

Which of the determinants of service quality involves performing the service right the first time? Select one: a. access b. courtesy c. credibility d. reliability e. responsiveness

d. reliability Correct

Which one of the following is NOT one of the six sourcing strategies? Select one: a. negotiation with many suppliers b. vertical integration c. keiretsu d. short-term relationships with few suppliers e. virtual companies

d. short-term relationships with few suppliers Correct

Which of the following is NOT a condition that favors the success of vertical integration? Select one: a. availability of capital b. availability of managerial talent c. sufficiently high demand d. small market share e. All of these favor the success of vertical integration.

d. small market share Correct

Based on his 14 Points, Deming is a strong proponent of: Select one: a. inspection at the end of the production process. b. an increase in numerical quotas to boost productivity. c. looking for the cheapest supplier. d. training and knowledge. e. All of these.

d. training and knowledge. Correct

"A special arrangement of machinery and equipment to focus on production of a single product or group of related products" describes what layout type? Select one: a. fixed-position layout b. intermittent production c. job shop d. work cell e. warehouse layout

d. work cell Correct

Which of the following is usually NOT one of the top considerations in choosing a country for a facility location? Select one: a. availability of labor and labor productivity b. exchange rates c. attitude of governmental units d. zoning regulations e. location of markets

d. zoning regulations Correct

All EXCEPT which of the following are "opportunities" in managing the integrated supply chain? Select one: a. postponement b. drop shipping c. blanket orders d. standardization e. line balancing

e. line balancing Correct

A bank manager wants to determine the percent of time the bank's tellers are working and idle. He decides to use work sampling, and his initial estimate is that the tellers are idle 20% of the time. Approximately how many observations should be taken to be 95% confident that the results will not be more than 5% away from the true result? Select one: a. 6 b. 16 c. 44 d. 210 e. 246

e. 246 Correct

Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, how many weeks of supply does the firm hold? Select one: a. 12.50 b. 5.20 c. 2.60 d. 0.08 e. 4.16

e. 4.16 Correct

Labor standards can help to determine which of the following? Select one: a. labor content of a product b. staffing needs c. incentive plans d. efficiency e. All of these

e. All of these Correct

The bullwhip effect: Select one: a. occurs as orders are relayed from retailers to distributors to wholesalers to manufacturers. b. results in increasing fluctuations at each step of the sequence. c. increases the costs associated with inventory in the supply chain. d. occurs because of distortions in information in the supply chain. e. All of these are true.

e. All of these are true. Correct

The philosophy of zero defects is: a. the result of Deming's research. b. unrealistic. c. prohibitively costly. d. an ultimate goal; in practice, 1 to 2% defects is acceptable. e. consistent with the commitment to continuous improvement.

e. consistent with the commitment to continuous improvement.

"Kaizen" is a Japanese term meaning a. a foolproof mechanism b. just-in-time (JIT) c. a fishbone diagram d. setting standards e. continuous improvement

e. continuous improvement

The difference between job enrichment and job enlargement is that: Select one: a. enlarged jobs involve vertical expansion, while enriched jobs involve horizontal expansion. b. enriched jobs enable an employee to do a number of boring jobs instead of just one. c. job enlargement is more psychologically satisfying than job enrichment. d. job enrichment is suitable for all employees, whereas job enlargement is not. e. enriched jobs involve vertical expansion, while enlarged jobs involve horizontal expansion.

e. enriched jobs involve vertical expansion, while enlarged jobs involve horizontal expansion. Correct

Which of the following is one of the main advantages of a product-oriented layout? Select one: a. high customer exposure rates b. employability of highly skilled labor c. high flexibility d. low capital cost e. low variable cost per unit

e. low variable cost per unit Correct

What layout strategy deals with low-volume, high-variety production? Select one: a. fixed-position layout b. retail layout c. warehouse layout d. office layout e. process-oriented layout

e. process-oriented layout Correct

High fixed costs and low variable costs are typical of which approach? Select one: a. product b. process c. mass customization d. repetitive e. product and mass customization

e. product and mass customization Correct

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: Select one: a. fixed costs are equal for two alternative locations. b. variable costs are equal for two alternative locations. c. total costs are equal for all alternative locations. d. fixed costs equal variable costs for one location. e. total costs are equal for two alternative locations.

e. total costs are equal for two alternative locations. Correct

The center-of-gravity method finds the location of a centralized facility, such as a distribution center, that will maximize the organization's revenue. Select one: True False

false

Manufacturers may want to locate close to their customers if the transportation of finished goods is expensive or difficult. Select one: True False

true

Optical checkout scanners and ATMs are examples of technology's impact on services. Select one: True False

true

Philip Crosby is credited with both of these quality catch-phrases: "quality is free" and "zero defects."

true

Service firms choose locations based, in part, on the revenue potential of a site. Select one: True False

true