25) Retail point-of-sales systems, restaurant menu order systems, and concert venue ticketing
systems are all examples of ________.
A) Industry-specific technology
B) Systems for large businesses
C) Custom software applications
D) Operational systems
E) Point-of-sale applications
Learning Obj.: LO 6
AACSB: Analytical thinking
26) A critical component of Supply Chain Management is ________.
A) Managing inventory
B) Identifying and securing suppliers
C) Both A and B
D) Finding the customer
E) Manufacturing at an acceptable level
Learning Obj.: LO 3
AACSB: Analytical thinking
27) The three factors included in the calculation of the Reorder Point are ________.
A) Demand, lead time, and safety stock
B) Demand, inventory, and price
C) Supply, price, and safety stock
D) Supply, lead time, and safety stock
E) Demand, price, and safety stock
Learning Obj.: LO 3
AACSB: Analytical thinking
28) Which of the following is given by the President of the United States?
A) Malcolm Baldrige National Quality Award
B) ISO9000:2001
C) Benchmarking Excellence Award
D) Small Business of the Year
E) Entrepreneurial Excellence Award
Learning Obj.: LO 5
AACSB: Analytical thinking
7
29) Factors to consider when selecting a ________ include conformance to quality standards,
extension of trade credit, and timely delivery.
A) Supplier
B) Sales representative
C) Customer
D) Banker
E) Lawyer
Learning Obj.: LO 3
AACSB: Analytical thinking
30) A measure of quality that may be used in Total Quality Management (TQM) is ________.
A) Return rates
B) On-time delivery
C) Compliance with product specifications
D) All of the above
E) None of the above
Learning Obj.: LO 5
AACSB: Analytical thinking
31) Safety stock levels refer to the amounts of inventory or raw materials and work-in-process
that are kept to ensure the satisfying of customer demand.
Learning Obj.: LO 3
AACSB: Analytical thinking
32) There are no legal issues or concerns related to the creation of a supply chain.
Learning Obj.: LO 3
AACSB: Analytical thinking
33) Quality is a degree of excellence and conformance to specifications or standards.
Learning Obj.: LO 5
AACSB: Analytical thinking
34) Job shops make a final product for consumers or end customers.
Learning Obj.: LO 4
AACSB: Analytical thinking
8
35) The management of sourcing, procuring, production, and logistics to go from raw materials
to end consumers across multiple intermediate steps constitutes supply chain management.
Learning Obj.: LO 3
AACSB: Analytical thinking
36) One essential aspect of an inventory management system is the purchasing plan, which
ensures that the items needed are in stock when they are needed.
Learning Obj.: LO 3
AACSB: Analytical thinking
37) Benchmarking is what you are doing when you create a competitive comparison for
marketing purposes or when you compare your projected or actual financial ratios to industry
levels.
Learning Obj.: LO 5
AACSB: Analytical thinking
38) Location and layout are not critical for all types of businesses.
Learning Obj.: LO 4
AACSB: Analytical thinking
39) Few cities and towns have zoning laws that limit what you can do in a residential area.
Learning Obj.: LO 4
AACSB: Analytical thinking
40) ROP = (Average Demand per Unit of Lead Time × Lead Time) – Safety Stock.
Learning Obj.: LO 3
AACSB: Analytical thinking
41) Suppliers can be found on the Internet as well as on a number of other sources.
Learning Obj.: LO 3
AACSB: Analytical thinking
9
42) One unique feature of manufacturers is that they can make products that do not exist yet.
Learning Obj.: LO 4
AACSB: Analytical thinking
43) Operations are the set of actions that produce goods and services, and operational efficiency
is critical to business success.
Learning Obj.: LO 1
AACSB: Analytical thinking
44) Managing inventory is not related to marketing success.
Learning Obj.: LO 3
AACSB: Analytical thinking
45) Reorder point means that you look at the inventory on hand, and when the stock level of an
item appears to be low, you reorder.
Learning Obj.: LO 3
AACSB: Analytical thinking
46) What is benchmarking?
Learning Obj.: LO 5
AACSB: Analytical thinking
47) Describe and discuss two unique advantages and two unique disadvantages of starting a
manufacturing business.
Learning Obj.: LO 4
AACSB: Analytical thinking
10
48) Explain why “profits follow quality.”
Learning Obj.: LO 5
AACSB: Analytical thinking
49) Define “tooling costs” and “set-up costs” and explain their roles in manufacturing.
Learning Obj.: LO 4
AACSB: Analytical thinking
50) What steps can an organization take to incorporate technology (name at least three) and why
might they be beneficial?
Learning Obj.: LO 6
AACSB: Analytical thinking
11