Question 1

Describe the ABC Inventory Classification System, and give examples of each category for a food item common to a restaurant.

Accepted Answer

The ABC system classifies inventory item

Question 2

Discuss the objectives of inventory management.

Accepted Answer

Inventory management is necessary to ens

Question 3

Kaoru Ishikawa contends that 95 percent of the typical company's quality problems can be solved by using "The Basic Six" quality tools.

Accepted Answer

A) True 
 B)False

Question 4

A reason to buy component parts is

Accepted Answer

A)  closer coordination between scheduling and production. 
B)  a secret design may be protected. 
C)  improved plant utilization. 
D)  the parts are a specialty of the supplier. 
A)  closer coordination between scheduling and production. 
B)  a secret design may be protected. 
C)  improved plant utilization. 
D)  the parts are a specialty of the supplier.

Question 5

At the weekly managers' meeting, Marcel is discussing how the company's product is made and delivered to its customers. Marcel is talking about

Accepted Answer

A)  distribution. 
B)  human resources. 
C)  operations. 
D)  planning. 
A)  distribution. 
B)  human resources. 
C)  operations. 
D)  planning.

Question 6

The buying services from a third party to manage a firm's functions is known as

Accepted Answer

A)  asset efficiency. 
B)  diversification of supplies. 
C)  importing. 
D)  outsourcing. 
A)  asset efficiency. 
B)  diversification of supplies. 
C)  importing. 
D)  outsourcing.

Question 7

An example of a demand management strategy is a kids-eat-free offering on Tuesdays at a local restaurant.

Accepted Answer

A) True 
 B)False

Question 8

Powerful companies, whether large or small, gain power when satisfying customer needs and wants better than their competitors.

Accepted Answer

A) True 
 B)False

Question 9

Jasper operates a machine shop. Orders from his customers are small, but his machines can easily be set up to make other items for different customers. This type of manufacturing is known as

Accepted Answer

A)  flexible manufacturing. 
B)  a job shop. 
C)  project manufacturing. 
D)  repetitive manufacturing. 
A)  flexible manufacturing. 
B)  a job shop. 
C)  project manufacturing. 
D)  repetitive manufacturing.

Question 10

In his retail store, Jose's point-of-sale software relieves inventory for each item purchased. At any time, Jose can look at the inventory records on his computer and know exactly how many of each item are in stock. This type of inventory system is called

Accepted Answer

A)  cycle counting. 
B)  perpetual. 
C)  physical. 
D)  two-bin. 
A)  cycle counting. 
B)  perpetual. 
C)  physical. 
D)  two-bin.

Question 11

In March, chassis prep counts its inventory. In June, the cabinet shop does the same thing. In September, appliances counts its inventory. This inventory system is known as

Accepted Answer

A)  cycle counting. 
B)  perpetual. 
C)  physical. 
D)  two-bin. 
A)  cycle counting. 
B)  perpetual. 
C)  physical. 
D)  two-bin.

Question 12

By conforming to ISO 9000, a small manufacturing firm could achieve improvements in

Accepted Answer

A)  sales to Walmart. 
B)  export sales. 
C)  product design. 
D)  quality of incoming raw materials. 
A)  sales to Walmart. 
B)  export sales. 
C)  product design. 
D)  quality of incoming raw materials.

Question 13

Christie and Kevin are starting a produce farm raising organic vegetables. Kevin plans to sell the produce wholesale to a local restaurant, and Christie is going to start a cooking school spotlighting the produce. Complete the following table detailing the inputs and outputs between the product business versus the service business. What are the similarities?
$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Product: } \
\text { Wholesale Restaurant Sales }
\end{array} & \text { Operation } & \begin{array} { c } 
\text { Services: } \
\text { Organic Food Cooking School }
\end{array} \
\hline & \text { Input } & \
\hline & \text { Processes } & \
\hline & \text { Output } & \
\hline
\end{array}$

Accepted Answer

Both businesses use organic pr

Question 14

Weighing bags of mulch during a production process is an example of a variable inspection.

Accepted Answer

A) True 
 B)False

Question 15

Terrell is trying to decide whether to concentrate his purchases with one supplier or diversify with two or three. One factor in favor of a single supplier is

Accepted Answer

A)  insurance against interruptions caused by strikes. 
B)  a particular supplier's superiority in product quality. 
C)  knowing the customer's loyalty, the supplier may provide better prices and service. 
D)  locating the best source in terms of price, quality, and service with each purchase. 
A)  insurance against interruptions caused by strikes. 
B)  a particular supplier's superiority in product quality. 
C)  knowing the customer's loyalty, the supplier may provide better prices and service. 
D)  locating the best source in terms of price, quality, and service with each purchase.

Question 16

Cooperative purchasing organizations for small businesses are more successful now because of the

Accepted Answer

A)  acceptance of coops as a business model by suppliers. 
B)  diversification of numerous global suppliers. 
C)  increased use of the Internet to locate more suppliers. 
D)  use of crowdsourcing to locate new suppliers. 
A)  acceptance of coops as a business model by suppliers. 
B)  diversification of numerous global suppliers. 
C)  increased use of the Internet to locate more suppliers. 
D)  use of crowdsourcing to locate new suppliers.

Question 17

Match the term with its definition. Some terms may not be used.
-A list of critical factors that provides a helpful starting place when assessing a supplier's performance

Accepted Answer

A) Continuous manufacturing 
B) Coop 
C) Flexible manufacturing systems 
D) Job shops 
E) Lean production
F)Make-or-buy decisions
G)Operations
H)Outsourcing
I)Project manufacturing
J)Repetitive manufacturing
K)Supply Chain Operations Reference model
L)Synchronous manufacturing 
A) Continuous manufacturing 
B) Coop 
C) Flexible manufacturing systems 
D) Job shops 
E) Lean production
F)Make-or-buy decisions
G)Operations
H)Outsourcing
I)Project manufacturing
J)Repetitive manufacturing
K)Supply Chain Operations Reference model
L)Synchronous manufacturing

Question 18

Match the term with its definition. Some terms may not be used.
-The planning and control of a conversion process that includes turning inputs into outputs that customers desire

Accepted Answer

A) Acceptance sampling 
B) Attributes 
C) Bottleneck 
D) Constraint 
E) Inspection
F)ISO 9000
G)Operations
H)Operations management
I)Poka-yoke
J)Quality
K)Total quality management
L)Variables 
A) Acceptance sampling 
B) Attributes 
C) Bottleneck 
D) Constraint 
E) Inspection
F)ISO 9000
G)Operations
H)Operations management
I)Poka-yoke
J)Quality
K)Total quality management
L)Variables

Question 19

Continuous manufacturing refers to assembly lines that run 24 hours a day, seven days a week.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following aspects is the most descriptive of a product operation as opposed to a service operation?

Accepted Answer

A)  Customer interaction 
B)  Created and delivered on demand 
C)  Intangible aspects 
D)  Repetitive operations 
A)  Customer interaction 
B)  Created and delivered on demand 
C)  Intangible aspects 
D)  Repetitive operations

Exam 21: Managing Small Business Operations

Describe the ABC Inventory Classification System, and give examples of each category for a food item common to a restaurant.

Discuss the objectives of inventory management.

Kaoru Ishikawa contends that 95 percent of the typical company's quality problems can be solved by using "The Basic Six" quality tools.

A reason to buy component parts is

At the weekly managers' meeting, Marcel is discussing how the company's product is made and delivered to its customers. Marcel is talking about

The buying services from a third party to manage a firm's functions is known as

An example of a demand management strategy is a kids-eat-free offering on Tuesdays at a local restaurant.

Powerful companies, whether large or small, gain power when satisfying customer needs and wants better than their competitors.

Jasper operates a machine shop. Orders from his customers are small, but his machines can easily be set up to make other items for different customers. This type of manufacturing is known as

In his retail store, Jose's point-of-sale software relieves inventory for each item purchased. At any time, Jose can look at the inventory records on his computer and know exactly how many of each item are in stock. This type of inventory system is called

In March, chassis prep counts its inventory. In June, the cabinet shop does the same thing. In September, appliances counts its inventory. This inventory system is known as

By conforming to ISO 9000, a small manufacturing firm could achieve improvements in

Weighing bags of mulch during a production process is an example of a variable inspection.

Terrell is trying to decide whether to concentrate his purchases with one supplier or diversify with two or three. One factor in favor of a single supplier is

Cooperative purchasing organizations for small businesses are more successful now because of the

Match the term with its definition. Some terms may not be used. -A list of critical factors that provides a helpful starting place when assessing a supplier's performance

Match the term with its definition. Some terms may not be used. -The planning and control of a conversion process that includes turning inputs into outputs that customers desire

Continuous manufacturing refers to assembly lines that run 24 hours a day, seven days a week.

Which of the following aspects is the most descriptive of a product operation as opposed to a service operation?

The Entrepreneurial Lifethe Entrepreneurial Life

Integrity, Ethics, and Social Entrepreneurship

Starting a Small Business

Franchises and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Organizational Plan: Teams, Legal Structures, Alliances, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product Development and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Businesses

Professional Management and the Small Business

Managing Human Resources

Managing the Firms Assets

Managing Risk

Filters