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Only firms in the manufacturing sector can create true form utility.

A) True
B) False

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A firm that is certified as meeting both ISO 9001 and ISO 14001 standards has demonstrated


A) world-class management of both quality and environmental standards.
B) sound financial and marketing practices.
C) ethical treatment of both customers and employees.
D) that its recruitment and training programs for employees protect and promote basic human rights.

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

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Facility location is the process of selecting a geographic location for a company's operations.

A) True
B) False

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Today, due to technological advancements, manufacturers in the U.S. have become so efficient, they require fewer workers to produce the same amount of output.

A) True
B) False

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Firms that have a goal of ________ tend to locate facilities with access to major highways, ports, railways, and airports.


A) reducing time to market
B) using ERP techniques
C) replacing labor with machinery
D) switching to a more service-oriented product mix

E) B) and D)
F) A) and D)

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________ is the physical arrangement of resources in the production process.


A) Facility location
B) Facility layout
C) ERP
D) RRL

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

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The first step in the development of a PERT chart is


A) assigning an estimated cost to each task.
B) analyzing the tasks and determining the sequence in which they must be performed.
C) estimating the time needed to complete each task.
D) identifying the probabilities that each step in the project can be successfully completed without exceeding the estimated cost.

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

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Review the PERT Network below: If it takes 1, 2, or 3 weeks for each activity (represented by a box) to be completed, the critical path is represented by:   Review the PERT Network below: If it takes 1, 2, or 3 weeks for each activity (represented by a box)  to be completed, the critical path is represented by:       A)  the path that begins with  Start  and continues with all boxes labeled with No. 1. B)  the path that begins with  Start,  continues with all boxes labeled with No. 2, and concludes with  Finish.  C)  the path that begins with  Start,  continues with one box labeled with No. 2, proceeds with all boxes labeled with No. 3, and concludes with  Finish.  D)  the path that begins with  Start,  continues with all boxes labeled with No. 1, and concludes with  Finish.  


A) the path that begins with "Start" and continues with all boxes labeled with No. 1.
B) the path that begins with "Start," continues with all boxes labeled with No. 2, and concludes with "Finish."
C) the path that begins with "Start," continues with one box labeled with No. 2, proceeds with all boxes labeled with No. 3, and concludes with "Finish."
D) the path that begins with "Start," continues with all boxes labeled with No. 1, and concludes with "Finish."

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

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Online-focused strategies don't affect operations managers since it is not essential for operations managers to negotiate in an interfirm environment.

A) True
B) False

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American manufacturers have emphasized continuous improvement as one strategy for regaining a competitive advantage in the manufacturing sector.

A) True
B) False

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________ has transformed the purchasing function in recent years by helping firms find the best suppliers and the best prices.


A) PERT
B) The Internet
C) CAD/CAM
D) QFD

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

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Your favorite photo can now be printed on your favorite credit card. You can design your own dresses online and have them sent to you in a few days. You can even create your own orthotics to fit inside your shoes. These are examples of the trend toward


A) continuous processes.
B) intermittent processes.
C) mass customization.
D) lean manufacturing.

E) All of the above
F) None of the above

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The purchasing function involves searching for quality resources and finding the best suppliers as well as negotiating the best price for the needed items.

A) True
B) False

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Production manager Ryan McNealy wants to link all the divisions and subsidiaries of his firm's computerized functions into a single, integrated software program that uses a single database. In order to achieve this goal, Ryan could make use of:


A) enterprise resource planning.
B) manufacturing resource planning.
C) program evaluation and review techniques.
D) Gantt charts.

E) All of the above
F) None of the above

Correct Answer

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Computers and robots are only useful in continuous production processes where the same type of product is produced many times.

A) True
B) False

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Susie works for an architectural firm and the partners have always drawn the plans for projects by hand. Though Susie learned how to draw by hand in college, she is also highly skilled on computer programs that allow her to create designs in 3D. She plans to demonstrate the effectiveness of such programs to the firm's partners. The computer program she will recommend to the partners is


A) CAD.
B) CAM.
C) CIM.
D) SCM.

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

Correct Answer

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When it comes to location decisions, labor costs are no longer an important consideration for most manufacturing firms.

A) True
B) False

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A(n) ________ puts together components to make a product.


A) modular process
B) compression process
C) assembly process
D) econometric process

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

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Rita Marie and Lynn just returned from a scuba diving and snorkeling trip in the Caymans. Both travelers highly recommended the resort where they stayed. Guest services were extremely prompt in assisting with diving excursions. All resort employees were trained to greet every guest each time they encountered them, whether it was on a pathway to the pools and beaches, or in the restaurants. Many times, the employees even referred to each guest by name. ________ in the service industry is about creating a good experience for customers.


A) Enterprise resource planning
B) Intermittent planning
C) Operations management
D) Production management

E) A) and B)
F) A) and C)

Correct Answer

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Everyday, the Local Harvest Grocery Store general manager reviews employee work schedules. This includes the late night stock crew, the cashiers, the deli, produce, and meat department crews, and the management office personnel. He coordinates work schedules with shipments, as well as the information he collects from point-of-sale terminals that indicates the busiest hours at the store, and then he communicates any exceptions to his department managers. These daily tasks are part of


A) operations management.
B) promotions management.
C) distributive management.
D) marketing management.

E) B) and C)
F) A) and B)

Correct Answer

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