GMS 401 Final
. Productivity can be improved by
a. increasing inputs while holding outputs steady
b. decreasing outputs while holding inputs steady
c. increasing inputs and outputs in the same proportion
d. decreasing inputs while holding outputs steady
e. none of the above - d. decreasing inputs while holding outputs steady
. A carpet manufacturer has delivered carpet directly to the end consumer rather than to the carpet
dealer. The carpet manufacturer is practicing
a. postponement
b. cross-docking
c. channel assembly
d. drop shipping
e. float reduction - d. drop shipping
. An assembly chart
a. shows graphically how the product is assembled
b. shows an exploded view of the product
c. lists the operations, including assembly and inspection, necessary to produce the component
with the material specified in the bill of material
d. provides detailed instructions on how to perform a given task
e. describes the dimensions and finish of each component - a. shows graphically how the product
is assembled
. As a firm's maintenance commitment increases,
a. the breakdown maintenance costs increase and the preventive maintenance costs decrease
,b. both the breakdown maintenance costs and the preventive maintenance costs decrease
c. the breakdown maintenance costs decrease and the preventive maintenance costs increase
d. both the breakdown maintenance costs and the preventive maintenance costs increase
e. None of the above is true. - c. the breakdown maintenance costs decrease and the preventive
maintenance costs increase
. Characteristics of JIT partnerships with respect to suppliers include
a. competitive bidding encouraged
b. buyer plant pursues vertical integration to reduce the number of suppliers
c. support suppliers so they become or remain price competitive
d. most suppliers at considerable distance from purchasing organization
e. All of the above are characteristics of JIT partnerships. - c. support suppliers so they become or
remain price competitive
. The total of all outputs produced by the transformation process divided by the total of the inputs is
a. utilization
b. greater in manufacturing than in services
c. defined only for manufacturing firms
d. multifactor productivity
e. none of the above - d. multifactor productivity
. Visibility throughout the supply chain is a requirement among supply chain members for
a. mutual agreement on goals
b. mutual trust
c. compatible organizational cultures
d. local optimization
e. the bullwhip effect - b. mutual trust
. Which of the following statements best describes the relationship between quality management and
,product strategy?
a. Product strategy is set by top management; quality management is an independent activity.
b. Quality management is important to the low-cost product strategy, but not to the response or
differentiation strategies.
c. High quality is important to all three strategies, but it is not a critical success factor.
d. Managing quality helps build successful product strategies.
e. Companies with the highest measures of quality were no more productive than other firms. -
d. Managing quality helps build successful product strategies.
8. The service industry makes up approximately what percentage of all jobs in the United States?
a. 12%
b. 40%
c. 66%
d. 79%
e. 90% - d. 79%
A certain type of computer costs $1,000, and the annual holding cost is 25%. Annual demand is
10,000 units, and the order cost is $150 per order. What is the approximate economic order
quantity?
a. 16
b. 70
c. 110
d. 183
e. 600 - c. 110
A disadvantage of the "few suppliers" strategy is
a. the risk of not being ready for technological change
b. the lack of cost savings for customers and suppliers
c. possible violations of the Sherman Antitrust Act
, d. the high cost of changing partners
e. All of the above are disadvantages of the "few suppliers" strategy. - d. the high cost of changing
partners
A fishbone diagram is also known as a
a. cause-and-effect diagram
b. poka-yoke diagram
c. Kaizen diagram
d. Kanban diagram
e. Taguchi diagram - a. cause-and-effect diagram
A fried chicken fast-food chain that acquired feed mills and poultry farms has performed
a. horizontal integration
b. forward integration
c. backward integration
d. current transformation
e. job expansion - c. backward integration
A machine that has passed the phase of early failures exhibits a normal distribution of failures. The
smaller the standard deviation of this distribution
a. the more expensive is preventive maintenance
b. the more likely this machine is a candidate for preventive maintenance
c. the shorter is the time interval between breakdowns
d. the more likely this machine will break down
e. the more likely this machine will be maintained by a breakdown maintenance policy - b. the
more likely this machine is a candidate for preventive maintenance
A product has annual demand of 100,000 units. The plant manager wants production to follow a
four-hour cycle. Based on the following data, what setup cost will enable the desired production
. Productivity can be improved by
a. increasing inputs while holding outputs steady
b. decreasing outputs while holding inputs steady
c. increasing inputs and outputs in the same proportion
d. decreasing inputs while holding outputs steady
e. none of the above - d. decreasing inputs while holding outputs steady
. A carpet manufacturer has delivered carpet directly to the end consumer rather than to the carpet
dealer. The carpet manufacturer is practicing
a. postponement
b. cross-docking
c. channel assembly
d. drop shipping
e. float reduction - d. drop shipping
. An assembly chart
a. shows graphically how the product is assembled
b. shows an exploded view of the product
c. lists the operations, including assembly and inspection, necessary to produce the component
with the material specified in the bill of material
d. provides detailed instructions on how to perform a given task
e. describes the dimensions and finish of each component - a. shows graphically how the product
is assembled
. As a firm's maintenance commitment increases,
a. the breakdown maintenance costs increase and the preventive maintenance costs decrease
,b. both the breakdown maintenance costs and the preventive maintenance costs decrease
c. the breakdown maintenance costs decrease and the preventive maintenance costs increase
d. both the breakdown maintenance costs and the preventive maintenance costs increase
e. None of the above is true. - c. the breakdown maintenance costs decrease and the preventive
maintenance costs increase
. Characteristics of JIT partnerships with respect to suppliers include
a. competitive bidding encouraged
b. buyer plant pursues vertical integration to reduce the number of suppliers
c. support suppliers so they become or remain price competitive
d. most suppliers at considerable distance from purchasing organization
e. All of the above are characteristics of JIT partnerships. - c. support suppliers so they become or
remain price competitive
. The total of all outputs produced by the transformation process divided by the total of the inputs is
a. utilization
b. greater in manufacturing than in services
c. defined only for manufacturing firms
d. multifactor productivity
e. none of the above - d. multifactor productivity
. Visibility throughout the supply chain is a requirement among supply chain members for
a. mutual agreement on goals
b. mutual trust
c. compatible organizational cultures
d. local optimization
e. the bullwhip effect - b. mutual trust
. Which of the following statements best describes the relationship between quality management and
,product strategy?
a. Product strategy is set by top management; quality management is an independent activity.
b. Quality management is important to the low-cost product strategy, but not to the response or
differentiation strategies.
c. High quality is important to all three strategies, but it is not a critical success factor.
d. Managing quality helps build successful product strategies.
e. Companies with the highest measures of quality were no more productive than other firms. -
d. Managing quality helps build successful product strategies.
8. The service industry makes up approximately what percentage of all jobs in the United States?
a. 12%
b. 40%
c. 66%
d. 79%
e. 90% - d. 79%
A certain type of computer costs $1,000, and the annual holding cost is 25%. Annual demand is
10,000 units, and the order cost is $150 per order. What is the approximate economic order
quantity?
a. 16
b. 70
c. 110
d. 183
e. 600 - c. 110
A disadvantage of the "few suppliers" strategy is
a. the risk of not being ready for technological change
b. the lack of cost savings for customers and suppliers
c. possible violations of the Sherman Antitrust Act
, d. the high cost of changing partners
e. All of the above are disadvantages of the "few suppliers" strategy. - d. the high cost of changing
partners
A fishbone diagram is also known as a
a. cause-and-effect diagram
b. poka-yoke diagram
c. Kaizen diagram
d. Kanban diagram
e. Taguchi diagram - a. cause-and-effect diagram
A fried chicken fast-food chain that acquired feed mills and poultry farms has performed
a. horizontal integration
b. forward integration
c. backward integration
d. current transformation
e. job expansion - c. backward integration
A machine that has passed the phase of early failures exhibits a normal distribution of failures. The
smaller the standard deviation of this distribution
a. the more expensive is preventive maintenance
b. the more likely this machine is a candidate for preventive maintenance
c. the shorter is the time interval between breakdowns
d. the more likely this machine will break down
e. the more likely this machine will be maintained by a breakdown maintenance policy - b. the
more likely this machine is a candidate for preventive maintenance
A product has annual demand of 100,000 units. The plant manager wants production to follow a
four-hour cycle. Based on the following data, what setup cost will enable the desired production
