EXAMINATION TEST 2026 COMPLETE
QUESTIONS AND TERMINOLOGY
SOLUTIONS
⩥ advertising revenue model. Answer: provides users with information
on services and products and provides an opportunity for suppliers to
advertise
⩥ affiliate revenue model. Answer: companies receive a referral fee for
directing business to an affiliate
⩥ aggregate plan. Answer: includes the budgeted levels of finished
products, inventory, backlogs, workforce size, and aggregate production
rate needed to support the marketing plan
⩥ ALDEP and CRAFT. Answer: computer software packages for
designing process layouts
⩥ allowance factor. Answer: the amount of time the analyst allows for
personal time, fatigue, and unavoidable delays
⩥ alternative workplace. Answer: brings work to the worker rather than
the worker to the workplace
,⩥ anticipation inventory. Answer: inventory built in anticipation of
future demand
⩥ application service provider (ASP). Answer: sets up and runs ERP
systems
⩥ appraisal costs. Answer: costs incurred in the process of uncovering
defects
⩥ assemble-to-order strategy. Answer: produces standard components
that can be combined to customer specifications
⩥ assignable causes of variation. Answer: causes that can be identified
and eliminated
⩥ automated order entry system. Answer: a method using telephone
models to send digital orders to suppliers
⩥ back orders. Answer: unfilled customer orders
⩥ backward scheduling. Answer: starts with the due date for an order
and works backward to determine the start date for each activity
,⩥ backward scheduling. Answer: scheduling method that determines
when the job must be started to be done on the due date
⩥ batch process. Answer: a type of process used to produce a small
quantity of products in groups or batches based on customer orders or
specifications
⩥ behavioral feasibility. Answer: degree to which the job is intrinsically
satisfying to the employee
⩥ benchmarking. Answer: studying the business practices of other
companies for purposes of comparison
⩥ best operating level. Answer: the volume of output that results in the
lowest average unit cost
⩥ beta probability distribution. Answer: typically represents project
activities
⩥ bill of material (BOM). Answer: lists all the subassemblies,
component parts, and raw materials that go into an end item and shows
the usage quantity of each required
⩥ block plan. Answer: schematic showing the placement of resources in
a facility
, ⩥ bottleneck. Answer: longest task in the process
⩥ break-even analysis. Answer: technique used to compute the amount
of goods that must be sold just to cover costs
⩥ broad view of JIT. Answer: a philosophy that encompasses the entire
organization
⩥ broad view of the organization. Answer: tasks and procedures are
important only if they meet the company's overall goals
⩥ bullwhip effect. Answer: inaccurate or distorted demand information
created in the supply chain
⩥ business strategy. Answer: a long-range plan for a business
⩥ business-to-business (B2B). Answer: electronic commerce between
businesses
⩥ business-to-business e-commerce. Answer: businesses selling to and
buying from other businesses