AND ANSWERS LATEST 2025-2026 EXAM
UPDATE GRADED A+ GUARANTEE
A manufacturing company decides to open a new distribution center
location in order to minimize distribution costs to warehouses or stores.
What is a key factor of a location analysis for a service company? -
Answer-Proximity to customers
What helps an organization identify and plan the actions necessary to
meet current and future customer demands? - Answer-Capacity planning
Which capacity planning measurement tells how much capacity a
company is using? - Answer-Capacity utilization
Which two statements are true about effective capacity? - Answer-An
effective capacity is lower than design capacity.
An effective capacity is a permanent measure used to achieve design
capacity.
, When is capacity measurement at the best operating level? - Answer-
When the average unit cost is minimized
Which two capacity measurement concepts should a firm consider when
conducting a location analysis? - Answer-Proximity to sources of supply
Site considerations
What is a major factor in the decision to locate a business near its
primary market territory? - Answer-Proximity to customers
Which definition used for quality evaluates how well a product performs
its intended function? - Answer-Fitness for use
Which total quality management (TQM) process was developed to
stress management's responsibility for quality? - Answer-14 points for
quality improvement
Which total quality management (TQM) process consists of 13
published standards and guidelines? - Answer-ISO 9000
A company manufactures shoes using a quality management system.
The company needs to put a process in place to measure any defects.
The company would like to measure the number of defects and observe
the number of occurrences to isolate the particular defect.