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In supplier selection, the main idea is to find the highest-quality materials available.

A) True
B) False

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Which of the following statements is false in relation to choosing a supplier?


A) Purchasers should consider price, quality, and reliability when choosing a supplier.
B) Purchasers should always be on the lookout for new suppliers.
C) Purchasers should ensure that the credit terms a supplier offers are agreeable to their company.
D) Purchasers should consider the quality of life for employees and management in the proposed location.
E) Purchasers should focus on having only one supplier for each material needed.

F) A) and B)
G) C) and D)

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Jasper Electronics, Inc. (JEI) Jasper Electronics, Inc., is an electronics manufacturer that creates circuits for various electronic products. Currently, the company has eight locations. It prides itself on its fast production process. Ross is the newly appointed head operations manager of the company-and he is hoping to contribute to the company in a meaningful way. Ross has decided that there are several aspects of the production process that need to be changed or improved. One such aspect is quality control. He also wants to do some research to decide whether the company is moving in the right direction. In addition, he wishes to learn what other successful firms focus on so he can implement this knowledge at JEI. -Refer to Jasper Electronics, Inc. The plant layout at Jasper Electronics is mostly likely a


A) fixed position layout.
B) process layout.
C) product layout.
D) circular layout.
E) capacity layout.

F) D) and E)
G) All of the above

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One primary difference between services and the production of goods is that services are consumed ____ whereas goods can be ____.


A) one at a time; consumed more than one at a time
B) immediately; stored
C) intangibly; tangible or intangible
D) later; consumed now
E) as they are produced; special ordered

F) A) and C)
G) All of the above

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When demand exceeds capacity, all of the following are reasonable options for the firm except


A) operating overtime hours to meet the demand.
B) starting a second or third shift.
C) subcontracting part of the work to other producers.
D) turning away some long-time customers.
E) expanding the capacity of the current facility.

F) B) and E)
G) All of the above

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​Harrison Home Builders is evaluating the way certain parts of homes are manufactured as drop-in components. It would like to eliminate waste from the process to increase profits. Harrison Home Builders is seeking to apply _____ to the home building process.


A) ​lean manufacturing
B) ​productivity trends
C) ​automation
D) ​invention

E) C) and D)
F) All of the above

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All of the following options are available to a firm when capacity exceeds demand except to


A) lay off workers and shut down a portion of the facility.
B) operate on a shorter work week.
C) produce other goods or services.
D) sell unused facilities.
E) give away some of the products to selected customers.

F) B) and E)
G) C) and D)

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The process of creating a set of specifications from which the product can be produced is called


A) technology.
B) research and development.
C) design planning.
D) product design.
E) a product line.

F) C) and D)
G) None of the above

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Chase is excited because he has just signed an agreement to purchase steel frames from a company at an excellent price and of very high quality. Once the contract begins, Chase eagerly awaits the first shipment, but it arrives a month behind the agreed-upon schedule, which slows down production at Chase's plant. Chase is furious because he realizes too late that this supplier


A) produces poor quality.
B) has bad credit terms.
C) is unreliable.
D) is not as inexpensive as he thought.
E) is unscheduled.

F) B) and C)
G) C) and E)

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ABC Company ABC Company is dedicated to operations control. It holds its suppliers to the highest standards, believing there is one best way to complete their tasks. ABC has even gone so far as to incorporate the Malcolm Baldrige National Quality Award criteria into its business. Following these criteria has allowed the company to grow from a small business to a large corporation. ABC plans on going international in the next couple of years to broaden its scop -Refer to ABC Company. The supplier must have ____ in order to be the best possible option and do business with ABC.


A) marketing operations
B) productivity growth
C) technological displacement
D) reliability
E) R&D

F) A) and D)
G) A) and C)

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Jasper Electronics, Inc., is an electronics manufacturer that creates circuits for various electronic products. Currently, the company has eight locations. It prides itself on its fast production process. Ross is the newly appointed head operations manager of the company-and he is hoping to contribute to the company in a meaningful way. Ross has decided that there are several aspects of the production process that need to be changed or improved. One such aspect is quality control. He also wants to do some research to decide whether the company is moving in the right direction. In addition, he wishes to learn what other successful firms focus on so he can implement this knowledge at JEI. -Refer to Jasper Electronics, Inc. If JEI management were to explore the possibility of using its products in different ways, what types of research and development activities could they engage in?


A) Quality control
B) Applied
C) Flexible
D) PERT
E) Core

F) C) and D)
G) A) and D)

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When 3M satisfies consumers' needs for notepads that will not get lost easily by converting paper and glue into Post-It Notes, it is creating


A) reminders for employees.
B) technological advancement.
C) productive output.
D) form utility.
E) possession utility.

F) A) and E)
G) B) and E)

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A Boeing factory in Everett, Washington, manufactures 787 Dreamliner jet aircrafts. What type of layout is most likely in this factory?


A) Output
B) Fixed-position
C) Product
D) Process
E) Cell-rotation

F) C) and D)
G) A) and E)

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The quantity that customers will purchase at the going price is called the


A) economic demand.
B) market demand.
C) capacity.
D) consumer need.
E) inventory.

F) C) and D)
G) All of the above

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An auto repair shop is an example of a fixed-position layout.

A) True
B) False

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According to management experts, increased government regulations have increased productivity among American workers.

A) True
B) False

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Automation is characterized by low initial costs and high operating costs.

A) True
B) False

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When does a firm incur holding costs? When does it incur stock-out costs?

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Holding costs, or storage costs, are inc...

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Product extension and refinement


A) shorten the product life cycle.
B) extend the product life cycle.
C) are too costly for most firms.
D) take place during basic research.
E) end the product life cycle.

F) B) and E)
G) None of the above

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When Black & Decker manufactures its wide array of tools, it is using a(n) ____ process.


A) analytical
B) qualitative
C) synthetic
D) assembly
E) conversion

F) All of the above
G) B) and D)

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