Question 1

The reorder point model requires that the small business owner know:

Accepted Answer

A) the usage rate,the minimum level of stock,the lead time,and the EOQ. 
B) who the supplier is,statistical process controls,and TQM. 
C) the demand pattern for the product,reliability and proximity of the supplier,and who has title. 
D) holding costs for the product,the usage rate,and the three "Cs" of the product. 
A) the usage rate,the minimum level of stock,the lead time,and the EOQ. 
B) who the supplier is,statistical process controls,and TQM. 
C) the demand pattern for the product,reliability and proximity of the supplier,and who has title. 
D) holding costs for the product,the usage rate,and the three "Cs" of the product.

Question 2

Trade discounts are offered on the basis of the:

Accepted Answer

A) size of the order. 
B) position of the business in the distribution channel. 
C) time of payment. 
D) type of payment. 
A) size of the order. 
B) position of the business in the distribution channel. 
C) time of payment. 
D) type of payment.

Question 3

When implementing TQM,managers should remember that change and turmoil are essential elements of the implementation.

Accepted Answer

A) True 
 B)False

Question 4

A danger of an excessive investment in inventory for the small business is:

Accepted Answer

A) excessive inventory taxes by local and state government. 
B) minimizing reordering costs. 
C) creating too quick a turnover of inventory. 
D) tying up an excessive amount of the firm's capital. 
A) excessive inventory taxes by local and state government. 
B) minimizing reordering costs. 
C) creating too quick a turnover of inventory. 
D) tying up an excessive amount of the firm's capital.

Question 5

In today's competitive marketplace,an entrepreneur should not expect that every vendor be able to demonstrate that they operate a continuous improvement process.

Accepted Answer

A) True 
 B)False

Question 6

The implementation of TQM is relatively simple in that other than training managers and employees little else needs to be changed in the company.

Accepted Answer

A) True 
 B)False

Question 7

Under the Uniform Commercial Code,the party who has title to goods also has the risk of loss if those goods are lost,damaged,or destroyed.

Accepted Answer

A) True 
 B)False

Question 8

In the basic EOQ model,the higher the economic order quantity,the greater the number of orders placed.

Accepted Answer

A) True 
 B)False

Question 9

A small manufacturer of candles forecasts demand for upcoming year to be 20,000 which costs the company $1.00 plus $0.10 for packaging and shipping per candle which the company pays.The total annual cost of units is:

Accepted Answer

A) $20,000.00. 
B) $20,000.10. 
C) $2,000.00. 
D) $22,000.00. 
A) $20,000.00. 
B) $20,000.10. 
C) $2,000.00. 
D) $22,000.00.

Question 10

Which of the following statements is correct?

Accepted Answer

A) Supply-chain management includes hiring the qualified HR Director. 
B) Supply-chain management includes all the activities that produce goods and services and delivers them to the customer. 
C) Supply-chain management includes providing quality service. 
D) All of the above 
A) Supply-chain management includes hiring the qualified HR Director. 
B) Supply-chain management includes all the activities that produce goods and services and delivers them to the customer. 
C) Supply-chain management includes providing quality service. 
D) All of the above

Question 11

The small business owner who sells merchandise on a consignment basis realizes the following advantages except:

Accepted Answer

A) the owner does not have to invest money in these inventory items,but the merchandise on hand is available for sale. 
B) the owner does not make payment to the consignor until the item is sold. 
C) because the consignment relationship is founded on the law of agency,the consignor never takes title to the merchandise and does not bear the risk of loss for the goods. 
D) the supplier normally plans and sets up displays for the merchandise and is responsible for maintaining it. 
A) the owner does not have to invest money in these inventory items,but the merchandise on hand is available for sale. 
B) the owner does not make payment to the consignor until the item is sold. 
C) because the consignment relationship is founded on the law of agency,the consignor never takes title to the merchandise and does not bear the risk of loss for the goods. 
D) the supplier normally plans and sets up displays for the merchandise and is responsible for maintaining it.

Question 12

A sales contract designated F.O.B.buyer requires the seller to deliver the goods to the buyer's place of business (or some other designated location),and risk of loss does not pass to the buyer until the goods are so delivered.

Accepted Answer

A) True 
 B)False

Question 13

The implementation of TQM cannot succeed unless:

Accepted Answer

A) the company is willing to undergo immediate radical transformation of all of its processes. 
B) the company has extensive market research on its markets,competitors,and customers. 
C) it is fully supported by upper management and has the involvement of the CEO. 
D) the lowest level of employees is willing to implement the program from the very beginning. 
A) the company is willing to undergo immediate radical transformation of all of its processes. 
B) the company has extensive market research on its markets,competitors,and customers. 
C) it is fully supported by upper management and has the involvement of the CEO. 
D) the lowest level of employees is willing to implement the program from the very beginning.

Question 14

The creation of a vender certification program requires:

Accepted Answer

A) a vendor rating scale developed by the company. 
B) a firm price list from the vendor,good for three years. 
C) membership in the SBA vendor certification program. 
D) understanding the firm's EOQ. 
A) a vendor rating scale developed by the company. 
B) a firm price list from the vendor,good for three years. 
C) membership in the SBA vendor certification program. 
D) understanding the firm's EOQ.

Question 15

The inventory investment is usually the largest single investment for a small firm.

Accepted Answer

A) True 
 B)False

Question 16

The small business owner should concentrate purchases at a single supplier.

Accepted Answer

A) True 
 B)False

Question 17

Selling on consignment means that the small business owner does not purchase the merchandise carried from the supplier (called the consignor).

Accepted Answer

A) True 
 B)False

Question 18

Cumulative quantity discounts are provided to members of the distribution channel in recognition of the services they provide the manufacturer.

Accepted Answer

A) True 
 B)False

Question 19

Outline Deming's 14 Points.

Accepted Answer

<b>1.Constantly strive to improve produc

Question 20

Spoilage,obsolescence,and pilferage are all part of the set-up costs of inventory.

Accepted Answer

A) True 
 B)False

Exam 19: Supply Chain Management

The reorder point model requires that the small business owner know:

Trade discounts are offered on the basis of the:

When implementing TQM,managers should remember that change and turmoil are essential elements of the implementation.

A danger of an excessive investment in inventory for the small business is:

In today's competitive marketplace,an entrepreneur should not expect that every vendor be able to demonstrate that they operate a continuous improvement process.

The implementation of TQM is relatively simple in that other than training managers and employees little else needs to be changed in the company.

Under the Uniform Commercial Code,the party who has title to goods also has the risk of loss if those goods are lost,damaged,or destroyed.

In the basic EOQ model,the higher the economic order quantity,the greater the number of orders placed.

A small manufacturer of candles forecasts demand for upcoming year to be 20,000 which costs the company $1.00 plus $0.10 for packaging and shipping per candle which the company pays.The total annual cost of units is:

Which of the following statements is correct?

The small business owner who sells merchandise on a consignment basis realizes the following advantages except:

A sales contract designated F.O.B.buyer requires the seller to deliver the goods to the buyer's place of business (or some other designated location),and risk of loss does not pass to the buyer until the goods are so delivered.

The implementation of TQM cannot succeed unless:

The creation of a vender certification program requires:

The inventory investment is usually the largest single investment for a small firm.

The small business owner should concentrate purchases at a single supplier.

Selling on consignment means that the small business owner does not purchase the merchandise carried from the supplier (called the consignor).

Cumulative quantity discounts are provided to members of the distribution channel in recognition of the services they provide the manufacturer.

Outline Deming's 14 Points.

Spoilage,obsolescence,and pilferage are all part of the set-up costs of inventory.

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