Question 1

Research on the implementation of TQM programs shows that it takes ________ to completely implement a TQM program.

Accepted Answer

A) three to four years 
B) eight to ten years 
C) six months to two years 
D) one to three years 
A) three to four years 
B) eight to ten years 
C) six months to two years 
D) one to three years

Question 2

Holding or carrying costs include the costs of:

Accepted Answer

A) ordering materials and inventory. 
B) receiving and inspecting items and all administrative costs. 
C) insurance,taxes,depreciation,etc. 
D) processing a purchase order. 
A) ordering materials and inventory. 
B) receiving and inspecting items and all administrative costs. 
C) insurance,taxes,depreciation,etc. 
D) processing a purchase order.

Question 3

Another process central to the successful implementation of TQM is identifying the individual(s)responsible for any mistakes as part of fixing the immediate quality problems.

Accepted Answer

A) True 
 B)False

Question 4

When seeking suppliers,a small business owner should use which of the following sources?

Accepted Answer

A) Competitors 
B) The local telephone directory 
C) The industry trade association 
D) All of these 
A) Competitors 
B) The local telephone directory 
C) The industry trade association 
D) All of these

Question 5

What is a vendor certification program and why would a small business owner use it?

Accepted Answer

When creating a vendor certification pro

Question 6

Successful Total Quality Management (TQM)requires leadership from the top.

Accepted Answer

A) True 
 B)False

Question 7

TQM is not a ________ or ________ program that can magically push a company to world-class status overnight.

Accepted Answer

A) quick-fix;short-term 
B) quick-fix;long-term 
C) long fix;long-term 
D) None of the above 
A) quick-fix;short-term 
B) quick-fix;long-term 
C) long fix;long-term 
D) None of the above

Question 8

Albemarle Sprinkler Company purchases the sprinkler heads for its line of lawn sprinklers from a supplier. Albemarle's production manager wonders how many sprinkler heads she should order for the next six months. The company's marketing manager forecasts sales to be 29,400 units for the upcoming six months. The purchasing manager has negotiated a price of $6.47 per head. The production manager estimates that it costs $17.25 to place an order with the supplier and $2.97 to store a sprinkler head in inventory for six months.
-What is Albemarle's total inventory cost using the EOQ point?

Accepted Answer

A) $191,954 
B) $192,388 
C) $192,166 
D) $192,087 
A) $191,954 
B) $192,388 
C) $192,166 
D) $192,087

Question 9

The cushion owners build into their inventory to prevent stockouts is called demand stock.

Accepted Answer

A) True 
 B)False

Question 10

The formula for calculating the cost of carrying inventory is:

Accepted Answer

A) Q/2 × H. 
B) D × C. 
C) D/Q × S. 
D) Q/H × S. 
A) Q/2 × H. 
B) D × C. 
C) D/Q × S. 
D) Q/H × S.

Question 11

Most entrepreneurs can neglect the purchasing function because they buy so little from vendors they don't gain anything by spending time working on improving it.

Accepted Answer

A) True 
 B)False

Question 12

The appropriate service level factor in the safety stock calculation is called the Z score.

Accepted Answer

A) True 
 B)False

Question 13

A company whose reorder point model includes a 95% desired service level will experience stockouts ________% of the time.

Accepted Answer

A) 1 
B) 5 
C) 50 
D) 95 
A) 1 
B) 5 
C) 50 
D) 95

Question 14

________ is the right to ownership of property and,for a small business owner,determines who has responsibility for ownership.

Accepted Answer

A) Identification 
B) Risk of loss 
C) Concept of title 
D) F)O.B. 
A) Identification 
B) Risk of loss 
C) Concept of title 
D) F)O.B.

Question 15

"Identification" is the designation of goods as the subject matter of the sales contract.

Accepted Answer

A) True 
 B)False

Question 16

The cost of units is simply the typical costs involved in having units in storage.

Accepted Answer

A) True 
 B)False

Question 17

Generally,quality control impacts:

Accepted Answer

A) revenues. 
B) gross profit. 
C) reduction in costs. 
D) All of the above 
A) revenues. 
B) gross profit. 
C) reduction in costs. 
D) All of the above

Question 18

The best way to minimize carrying costs is to order as many units as possible in each order.

Accepted Answer

A) True 
 B)False

Question 19

The best purchase price is the lowest price at which one can obtain goods and services.

Accepted Answer

A) True 
 B)False

Question 20

The vendor certification program is an effort by the SBA to protect small businesses from unscrupulous vendors.

Accepted Answer

A) True 
 B)False

Exam 19: Supply Chain Management

Research on the implementation of TQM programs shows that it takes ________ to completely implement a TQM program.

Holding or carrying costs include the costs of:

Another process central to the successful implementation of TQM is identifying the individual(s)responsible for any mistakes as part of fixing the immediate quality problems.

When seeking suppliers,a small business owner should use which of the following sources?

What is a vendor certification program and why would a small business owner use it?

Successful Total Quality Management (TQM)requires leadership from the top.

TQM is not a ________ or ________ program that can magically push a company to world-class status overnight.

The cushion owners build into their inventory to prevent stockouts is called demand stock.

The formula for calculating the cost of carrying inventory is:

Most entrepreneurs can neglect the purchasing function because they buy so little from vendors they don't gain anything by spending time working on improving it.

The appropriate service level factor in the safety stock calculation is called the Z score.

A company whose reorder point model includes a 95% desired service level will experience stockouts ________% of the time.

________ is the right to ownership of property and,for a small business owner,determines who has responsibility for ownership.

"Identification" is the designation of goods as the subject matter of the sales contract.

The cost of units is simply the typical costs involved in having units in storage.

Generally,quality control impacts:

The best way to minimize carrying costs is to order as many units as possible in each order.

The best purchase price is the lowest price at which one can obtain goods and services.

The vendor certification program is an effort by the SBA to protect small businesses from unscrupulous vendors.

Entrepreneurs: the Driving Force Behind Small Business

Ethics and Social Responsibility: Doing the Right Thing

Creativity and Innovation: Keys to Entrepreneurial Success

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Buying an Existing Business

New Business Planning Process: Feasibility Analysis,business Modeling,

Building a Bootstrap Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Creating a Solid Financial Plan

Managing Cash Flow

Sources of Equity Financing

Sources of Debt Financing

Location,layout,and Physical Facilities

Managing Inventory

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

The Legal Environment: Business Law and Government Regulation

Filters

TQM is not a or program that can magically push a company to world-class status overnight.