Chapter 16 The three basic measures of inventory are inventory turnover

Document Type
Test Prep
Book Title
Effective Management 6th Edition
Authors
Chuck Williams
Course Post-Assessment CH 16
Williams Effective Management 6e
MULTIPLE CHOICE
1. ____ is a measure of performance that indicates how many inputs it takes to produce or create an
output.
a.
Reliability
b.
Performance accountability
c.
Productivity
d.
TQM
e.
Effectiveness
2. Which of the following statements about productivity is true?
a.
Productivity is a ratio of benefits to costs (i.e., benefits divided by costs).
b.
For companies, higher productivity can lead to lower costs.
c.
For countries, higher productivity produces a lower standard of living.
d.
Productivity decreases make products more affordable.
e.
All of the statements about productivity are true.
3. According to the TQM strategy, what should be a company's primary goal?
a.
customer focus and satisfaction
b.
continuous improvement
c.
teamwork
d.
participative management
e.
reciprocity
4. ____ is a deviation in the form, condition, or appearance of a product from the quality standard for that
product.
a.
Performance breakdown
b.
Quality underperformance
c.
Aberration
d.
Divergence
e.
Variation
5. Which of the following is a specific component of internal service quality?
a.
MBO
b.
high value service
c.
delegation
d.
autonomy
e.
span of management
6. The term ____ refers to restoring customer satisfaction to strongly dissatisfied customers.
a.
service recovery
b.
service enhancement
c.
customer focus
d.
customer reengineering
e.
relationship marketing
7. Classifying manufacturing operations in terms of the amount of assembly that occurs after an order is
received from customers is the same as classifying those operations in terms of:
a.
processing
b.
flexibility
c.
production
d.
operations
e.
technical skills
8. Which of the following types of operations are most dependent on the accuracy of sales forecasts?
a.
project manufacturing
b.
assemble-to-order operations
c.
make-to-order operations
d.
buy-to-sell operations
e.
make-to-stock operations
9. The three basic measures of inventory are inventory turnover, average aggregate inventory, and:
a.
inventory depreciation
b.
inventory amortization
c.
weeks of supply
d.
multifactor inventory
e.
speed of obsolescence
10. ____ is the number of times per year that a company sells or replaces its average inventory.
a.
Stock rollover
b.
Average aggregate inventory
c.
The average inventory replacement cycle
d.
Inventory turnover
e.
The ratio of inputs to outputs
11. Transaction costs and loss of customer goodwill are both examples of:
a.
ordering costs
b.
setup costs
c.
holding costs
d.
depreciation costs
e.
stockout costs
12. ____ is a ticket-based system that indicates when to reorder inventory.
a.
An MRP system
b.
A just-in-time system
c.
Kanban
d.
An independent demand system
e.
A dependent demand system
13. In inventory management situations involving independent demand systems, ____ should be used,
whereas with dependent demand systems, ____ should be used.
a.
JIT; MRP and/or EOQ
b.
EOQ; JIT and/or MRP
c.
MRP; JIT and/or EOQ
d.
MRP; JIT or EOQ
e.
EOQ; JIT or MBO

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