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Carol was recently fired from her job as a purchaser for a grocery store.She was told the reason for her dismissal was the almost continuous rotting of large amounts of produce and meat while in the stockroom awaiting sale in the store.Which objective of purchasing did Carol fail to accomplish?


A) She failed to make sure the materials needed were in the proper amounts.
B) She failed to secure the needed materials at minimum cost.
C) She failed to obtain the materials needed before they were needed.
D) She ordered the wrong materials for her company.
E) She failed to purchase the best quality of materials available.

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

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The type of utility on which production and operations management focuses is ____ utility.


A) place
B) time
C) form
D) possession
E) need

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

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Product extension and refinement are expected results of a firm's development and implementation effort.

A) True
B) False

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The objective of purchasing is to ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost.

A) True
B) False

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Materials that will become part of a product during the conversion process are called raw materials.

A) True
B) False

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The choice of a particular location for production facilities


A) depends solely on the transportation costs from suppliers.
B) depends entirely on the availability of skilled and unskilled workers.
C) is based entirely on the geographic locations of suppliers of parts.
D) depends mainly on the arrangement of machinery, equipment, and personnel.
E) often involves balancing the variables.

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

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Robots are especially effective in carrying out creative tasks and assignments.

A) True
B) False

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The ____ is the sequence of production activities that takes the longest time from the beginning until completion.


A) order of events
B) Gantt chart
C) critical path
D) Routing
E) minimum processing order

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

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Texaco uses a synthetic process when it refines crude oil.

A) True
B) False

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Which of the following is the objective of purchasing?


A) Routinely replenish the stock.
B) Ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost.
C) Select suppliers.
D) Determine the facility's level of output.
E) Control inventory and product quality.

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

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Steinway, a company that produces concert quality grand pianos, has ivory in storage waiting to be made into piano keys.This ivory is classified as


A) finished-goods inventory.
B) materials requirements planning.
C) raw-materials inventory.
D) work-in-process inventory.
E) raw supplies.

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

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Major appliance manufacturers have recently adopted a strategy that calls for better quality in their products.One method of implementing this strategy at the operations level is through


A) innovation circles.
B) a Gantt chart.
C) PERT.
D) quality circles.
E) another layer of resourceful managers.

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

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An engine production facility uses a system that involves the entire organisation and utilises a single set of facts used by all of the managers within the facility.The system is an example of


A) a just-in-time inventory system.
B) materials requirement planning.
C) manufacturing resource planning.
D) enterprise resource planning.
E) an inventory control system.

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

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Which of the following is not a possible cause of only a small increase in a recent productivity growth rate?


A) The economic crisis in banking and finance
B) A downturn in home construction and automobile industries
C) Increased investment in new equipment
D) Increased government regulation
E) The tremendous growth in the service industry

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

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____ consist(s) of goods that are awaiting shipment to customers.


A) Raw-materials inventory
B) Work-in-process inventory
C) Finished-goods inventory
D) Supplies
E) Controlled inventory

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

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In an attempt to regain a competitive edge, firms have


A) reduced production costs by selecting suppliers that offer high-quality raw materials and components at reasonable prices.
B) used green manufacturing to conserve natural resources and sustain the planet.
C) used computer-aided and flexible manufacturing systems that allow a higher degree of customisation.
D) improved control procedures to help ensure lower manufacturing costs.
E) done all of the above.

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

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In order to build spas ready to be installed, there are only about six tasks that have to be completed.An operations manager determines how long it will take to complete each of these tasks.What scheduling device would be most appropriate for this relatively uncomplicated manufacturing process?


A) Gantt chart
B) Enterprise materials planning
C) Critical path assessment
D) Statistical process control
E) Flexible manufacturing diagram

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

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The examination of work in process for the purpose of controlling quality is called


A) quality control.
B) inspection.
C) inventory control.
D) quality circle.
E) product design.

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

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In order to compete in the global economy, firms have focused on increasing prices and improving the bottom-line profit amount.

A) True
B) False

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