OPERATIONS MANAGEMENT AN
INTEGRATED APPROACH SEVENTH
EDITION EXAMINATION TEST BANK
COMPLETE QUESTIONS AND ANSWERS
GRADED A+
⫸ Affiliate revenue model Answer: Companies receive a referral fee for
directing business to an affiliate
⫸ Appraisal cost Answer: The cost associated with uncovering defects
⫸ Automated order entry systems Answer: A method using telephone
models to send digital orders to suppliers.
⫸ Backwards integration Answer: Owning or controlling sources of raw
materials and components.
⫸ Benchmarking Answer: Studying other companies business practices
for comparison.
⫸ Bullwhip effect Answer: Inaccurate or distorted demand information
created in the supply chain.
⫸ Business to Business commerce Answer: Businesses buying and
selling to other businesses.
,⫸ Business to consumer commerce Answer: Businesses selling to
individual consumers.
⫸ Cause and effect diagrams Answer: A chart that identifies potential
causes of particular quality problems.
⫸ Checklist Answer: A list of common defects and the number of
observed occurrences of each.
⫸ Conformance to specifications Answer: how well a product or service
meets the targets and tolerances set by designers.
⫸ Continuous improvement Answer: A philosophy of never ending
improvement.
⫸ Control charts Answer: Charts used to evaluate whether a process is
operating within expectations.
⫸ Crossdocking Answer: Eliminates storage and order picking
functions of a distribution warehouse.
⫸ Customer defined quality Answer: an integrated effort designed to
improve quality performance at every level of the organization.
, ⫸ Deming Prize Answer: Japanese award for companies to recognize
efforts in quality improvement.
⫸ Distribution management Answer: Responsible for the movement of
material from the manufacturer to the customer.
⫸ Distribution warehouse Answer: Used for short term storage,
consolidation, and product mixing.
⫸ Distributor crossdocking Answer: the receiving and consolidating of
inbound products from different vendors into a multi-SKU pallet.
⫸ E-commerce Answer: Using the internet and web to do business.
⫸ E-distributors Answer: Independently owned net marketplaces having
catalogs representing thousands of suppliers and designed for spot
purchases.
⫸ E-purchasing Answer: Companies that connect onlone MRO
suppliers to businesses that pay fees to join the market, usually for long
term contractual purchasing.
⫸ Early supplier involment (ESI) Answer: Involvement of critical
suppliers in new product design.
INTEGRATED APPROACH SEVENTH
EDITION EXAMINATION TEST BANK
COMPLETE QUESTIONS AND ANSWERS
GRADED A+
⫸ Affiliate revenue model Answer: Companies receive a referral fee for
directing business to an affiliate
⫸ Appraisal cost Answer: The cost associated with uncovering defects
⫸ Automated order entry systems Answer: A method using telephone
models to send digital orders to suppliers.
⫸ Backwards integration Answer: Owning or controlling sources of raw
materials and components.
⫸ Benchmarking Answer: Studying other companies business practices
for comparison.
⫸ Bullwhip effect Answer: Inaccurate or distorted demand information
created in the supply chain.
⫸ Business to Business commerce Answer: Businesses buying and
selling to other businesses.
,⫸ Business to consumer commerce Answer: Businesses selling to
individual consumers.
⫸ Cause and effect diagrams Answer: A chart that identifies potential
causes of particular quality problems.
⫸ Checklist Answer: A list of common defects and the number of
observed occurrences of each.
⫸ Conformance to specifications Answer: how well a product or service
meets the targets and tolerances set by designers.
⫸ Continuous improvement Answer: A philosophy of never ending
improvement.
⫸ Control charts Answer: Charts used to evaluate whether a process is
operating within expectations.
⫸ Crossdocking Answer: Eliminates storage and order picking
functions of a distribution warehouse.
⫸ Customer defined quality Answer: an integrated effort designed to
improve quality performance at every level of the organization.
, ⫸ Deming Prize Answer: Japanese award for companies to recognize
efforts in quality improvement.
⫸ Distribution management Answer: Responsible for the movement of
material from the manufacturer to the customer.
⫸ Distribution warehouse Answer: Used for short term storage,
consolidation, and product mixing.
⫸ Distributor crossdocking Answer: the receiving and consolidating of
inbound products from different vendors into a multi-SKU pallet.
⫸ E-commerce Answer: Using the internet and web to do business.
⫸ E-distributors Answer: Independently owned net marketplaces having
catalogs representing thousands of suppliers and designed for spot
purchases.
⫸ E-purchasing Answer: Companies that connect onlone MRO
suppliers to businesses that pay fees to join the market, usually for long
term contractual purchasing.
⫸ Early supplier involment (ESI) Answer: Involvement of critical
suppliers in new product design.
