LSU ISDS 3115 QUIZ 2 QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
Outsourcing:
A. utilizes the efficiency that comes with specialization.
B. allows the outsourcing firm to focus on its key success factors.
C. transfers traditional internal activities to outside vendors.
D. All of the above are true of outsourcing.
E. None of the above is true of outsourcing. - Answers All of the above are true of outsourcing.
A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributors.
This is an example of which of the following?
A. backward integration
B. current transformation
C. forward integration
D. horizontal integration
E. keiretsu - Answers forward integration
All EXCEPT which of the following statements about ABC analysis are true?
A. ABC analysis categorizes on-hand inventory into three groups based on annual dollar volume.
B. In ABC analysis, inventory may be categorized by measures other than dollar volume.
C. ABC analysis suggests that there are the critical few and the trivial many inventory items.
D. ABC analysis is an application of the Pareto principle.
E. ABC analysis suggests that all items require the same high degree of control. - Answers ABC
analysis suggests that all items require the same high degree of control.
The two most basic inventory questions answered by the typical inventory model are:
A. order quantity and cost of orders.
B. ordering cost and carrying cost.
C. timing of orders and cost of orders.
D. timing of orders and order quantity.
E. order quantity and service level. - Answers timing of orders and order quantity
The main trait of a single-period model is that:
A. it has the largest EOQ sizes.
B. the order quantity should usually equal the expected value of demand.
C. supply is limited.
D. inventory has limited value after a certain period of time.
E. the cost of a shortage cannot be determined accurately. - Answers inventory has limited value
after a certain period of time
Which of the following statements is NOT true about MRP?
A. MRP is an independent demand technique used in a production environment.
B. MRP provides a clean structure for dependent demand.
C. MRP uses a bill-of-material, inventory, expected receipts, and a master production schedule to
determine material requirements.
D. MRP has evolved as the basis for Enterprise Resource Planning. - Answers MRP is an independent
demand technique used in a production environment
Which one of the following is not a benefit of JIT implementation?
A. cost reduction
B. rapid throughput
C. quality improvement
D. variability increase
E. rework reduction - Answers variability increase
Which of the following is TRUE regarding the steps to reducing setup times?
A. The cycle of steps is repeated until setup time is reduced to under a minute.
B. The standardization of both tooling and work procedures is advantageous to setup time reduction.
C. Move material closer and improve material handling are done before operator training.
D. The first step involves performing as much setup preparation as possible while the
process/machine is operating.
E. All of the above are true. - Answers All of the above are true
The service sector makes up approximately what percentage of all jobs in the United States?
, A. 86%
B. 40%
C. 12%
D. 66%
E. 94% - Answers 86%
Which of the following is an example of competing on quick response?
A. A firm produces its product with less raw material waste than its competitors do.
B. A firm's products are introduced into the market faster than its competitors' products.
C. A firm offers more reliable products than its competitors do.
D. A firm advertises more than its competitors do.
E. A firm utilizes its capacity more effectively than its competitors do. - Answers A firm's products are
introduced into the market faster than its competitors' products
The phases of project management are:
A. GANTT, CPM, and PERT.
B. planning, organizing, staffing, leading, and controlling.
C. planning, programming, and budgeting.
D. planning, scheduling, and controlling.
E. different for manufacturing projects than for service projects. - Answers planning, scheduling, and
controlling
The quarterly "make meeting" of Lexus dealers is an example of a sales force composite forecast.
True or False - Answers True
Trend refers to a data pattern that repeats itself after a period of days, weeks, months, or quarters.
True or False - Answers False
It should not be "trend" but "seasonality."
Which of the following statements is TRUE?
A. Deming laid out 40 steps to quality improvement process in his 1961 book.
B. Crosby defined quality as fitness for use.
C. Juran coined the term zero defects.
D. Juran wrote the 14 points for implementing quality improvement.
E. Feigenbaum's work in how people learn from each other's successes led to the field of cross-
functional teamwork. - Answers Feigenbaum's work in how people learn from each other's successes
led to the field of cross-functional teamwork.
A product-focused process is commonly used to produce:
A. high-volume, low-variety products.
B. low-volume, high-variety products.
C. high-volume products of either high- or low-variety.
D. high-volume, high-variety products.
E. low-variety products at either high- or low-volume. - Answers high-volume, low-variety products
Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of
$9,000 and variable costs of $2.25 per unit.
Which of the following statements is TRUE?
A. Process Y is cheaper than process X at all volumes.
B. Process X is more profitable than process Y and should be selected.
C. The crossover point is approximately 6667 units.
D. Process X should be selected for very large production volumes.
E. It is impossible for one process to have both of its costs lower than those of another process. -
Answers Process Y is cheaper than process X at all volumes.
Utilization will typically be lower than efficiency because:
A. effective capacity is greater than design capacity.
B. effective capacity is less than design capacity.
C. expected output is less than rated capacity.
D. expected output is less than actual output.
E. effective capacity equals design capacity. - Answers effective capacity is less than design capacity
Which of the following statements regarding "proximity" in the location decision is FALSE?
Outsourcing:
A. utilizes the efficiency that comes with specialization.
B. allows the outsourcing firm to focus on its key success factors.
C. transfers traditional internal activities to outside vendors.
D. All of the above are true of outsourcing.
E. None of the above is true of outsourcing. - Answers All of the above are true of outsourcing.
A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributors.
This is an example of which of the following?
A. backward integration
B. current transformation
C. forward integration
D. horizontal integration
E. keiretsu - Answers forward integration
All EXCEPT which of the following statements about ABC analysis are true?
A. ABC analysis categorizes on-hand inventory into three groups based on annual dollar volume.
B. In ABC analysis, inventory may be categorized by measures other than dollar volume.
C. ABC analysis suggests that there are the critical few and the trivial many inventory items.
D. ABC analysis is an application of the Pareto principle.
E. ABC analysis suggests that all items require the same high degree of control. - Answers ABC
analysis suggests that all items require the same high degree of control.
The two most basic inventory questions answered by the typical inventory model are:
A. order quantity and cost of orders.
B. ordering cost and carrying cost.
C. timing of orders and cost of orders.
D. timing of orders and order quantity.
E. order quantity and service level. - Answers timing of orders and order quantity
The main trait of a single-period model is that:
A. it has the largest EOQ sizes.
B. the order quantity should usually equal the expected value of demand.
C. supply is limited.
D. inventory has limited value after a certain period of time.
E. the cost of a shortage cannot be determined accurately. - Answers inventory has limited value
after a certain period of time
Which of the following statements is NOT true about MRP?
A. MRP is an independent demand technique used in a production environment.
B. MRP provides a clean structure for dependent demand.
C. MRP uses a bill-of-material, inventory, expected receipts, and a master production schedule to
determine material requirements.
D. MRP has evolved as the basis for Enterprise Resource Planning. - Answers MRP is an independent
demand technique used in a production environment
Which one of the following is not a benefit of JIT implementation?
A. cost reduction
B. rapid throughput
C. quality improvement
D. variability increase
E. rework reduction - Answers variability increase
Which of the following is TRUE regarding the steps to reducing setup times?
A. The cycle of steps is repeated until setup time is reduced to under a minute.
B. The standardization of both tooling and work procedures is advantageous to setup time reduction.
C. Move material closer and improve material handling are done before operator training.
D. The first step involves performing as much setup preparation as possible while the
process/machine is operating.
E. All of the above are true. - Answers All of the above are true
The service sector makes up approximately what percentage of all jobs in the United States?
, A. 86%
B. 40%
C. 12%
D. 66%
E. 94% - Answers 86%
Which of the following is an example of competing on quick response?
A. A firm produces its product with less raw material waste than its competitors do.
B. A firm's products are introduced into the market faster than its competitors' products.
C. A firm offers more reliable products than its competitors do.
D. A firm advertises more than its competitors do.
E. A firm utilizes its capacity more effectively than its competitors do. - Answers A firm's products are
introduced into the market faster than its competitors' products
The phases of project management are:
A. GANTT, CPM, and PERT.
B. planning, organizing, staffing, leading, and controlling.
C. planning, programming, and budgeting.
D. planning, scheduling, and controlling.
E. different for manufacturing projects than for service projects. - Answers planning, scheduling, and
controlling
The quarterly "make meeting" of Lexus dealers is an example of a sales force composite forecast.
True or False - Answers True
Trend refers to a data pattern that repeats itself after a period of days, weeks, months, or quarters.
True or False - Answers False
It should not be "trend" but "seasonality."
Which of the following statements is TRUE?
A. Deming laid out 40 steps to quality improvement process in his 1961 book.
B. Crosby defined quality as fitness for use.
C. Juran coined the term zero defects.
D. Juran wrote the 14 points for implementing quality improvement.
E. Feigenbaum's work in how people learn from each other's successes led to the field of cross-
functional teamwork. - Answers Feigenbaum's work in how people learn from each other's successes
led to the field of cross-functional teamwork.
A product-focused process is commonly used to produce:
A. high-volume, low-variety products.
B. low-volume, high-variety products.
C. high-volume products of either high- or low-variety.
D. high-volume, high-variety products.
E. low-variety products at either high- or low-volume. - Answers high-volume, low-variety products
Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed costs of
$9,000 and variable costs of $2.25 per unit.
Which of the following statements is TRUE?
A. Process Y is cheaper than process X at all volumes.
B. Process X is more profitable than process Y and should be selected.
C. The crossover point is approximately 6667 units.
D. Process X should be selected for very large production volumes.
E. It is impossible for one process to have both of its costs lower than those of another process. -
Answers Process Y is cheaper than process X at all volumes.
Utilization will typically be lower than efficiency because:
A. effective capacity is greater than design capacity.
B. effective capacity is less than design capacity.
C. expected output is less than rated capacity.
D. expected output is less than actual output.
E. effective capacity equals design capacity. - Answers effective capacity is less than design capacity
Which of the following statements regarding "proximity" in the location decision is FALSE?
