TEST PAPER QUESTIONS AND SOLUTIONS
GRADED A+
● 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