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197 Cards in this Set
- Front
- Back
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Quality management includes how goods and services are designed rather than simply how quality is assured in the manufacturing delivery services.
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True
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At a gas station a diesel pump that will not fit into a non-diesel automobile is an example of:
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Poke-a-yoke
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The cost of quality refers to the out of pocket cost that customers incur if they receive a poor quality good or service.
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False
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Because of the importance of supplying goods or services, operation strategy has historically received significant high-level management attention.
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False
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Demand that varies over time is called:
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Dynamic
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Cause and effect diagrams would help most in which phrase of the DMAIC problem solving approach
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Analyze
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Both consultants and business professionals now agree on a universal definition of quality.
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False
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A flexibility strategy requires capacity for both design and demand flexibility
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True
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Demand that is stable over time
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Static
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A tool to help determine how a process works and what it is supposed to do:
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Flow Chart
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Which of the following is incorrect regarding inventory management:
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Inventory management applies to goods but not to services
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In today’s global market mass customization has become less important than it has in the past.
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False
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The most relevant definition of quality for an operations manager is: “Performance to specifications”
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True
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Using a cause and effect diagram helps identify the most likely cause or problem that further data collection can be carried out.
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True
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Back orders
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May occur as a result of a stockout
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A tool to help focus on the most significant problem is:
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Pareto Analysis
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Fitness for use relates how well quality means design target and tolerances.
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False
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Reduction in flow time generally lead to deterioriation of quality.
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False
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ISO9000 definition of quality system standards is based on the premise that certain generic characteristics of management practice can be standardized and that a well designed, well implemented and carefully managed quality system provides confidence…
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True
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Machine down time and downgrade in cost are an example of which type of quality cost?
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Internal failure
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Using ABC analysis, continuous monitoring, and accurate record keeping relate best to:
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A item
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Quality cost classifications training and information system, equipment design fall in the ____ category.
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Prevention
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Which of the following is not true regarding RFID chips?
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Will make employee scanning time quicker
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Quality improvement initiatives generally increase market share in the long term and also increase profitability.
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False
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The damming philosophy focuses on bringing about improvements in product and service quality by reducing uncertainty and variability in goods and services designed and associated processes.
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True
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Which does not fit with 6 Sigma implementation:
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Creating quality system standards
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Inventory position is effected by all of the following except:
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Variability
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Southwest airlines have gained competitive advantage by focusing on costs as a key competitive priority.
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True
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W Edward Demming believed that productivity would improve by setting numerical quotas.
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False
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Apples primary competitive priority would probably be innovation while Dell’s would be flexibility.
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True
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Using a fixed inventory system as the reorder point ‘r’ increases:
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Safety stock increases
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Which of the following defects per million is a key opportunity measured of good quality?
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Six Sigma
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Joseph Juran preached the fourteen for management in his philosophy.
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False
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Customers generally perceive greater risks when buying goods than when buying services.
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False
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ISO9000 is mainly used in the US.
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False
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ISO9000/2000 principles consist of all of the following except:
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Zero defects
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Which of the following is not a key assumption underlining the classic economic order quantity model?
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c) Demand is assumed to be stochastic
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The ease by which one can create original music compositions by using a software package such as garageband would be an example of an experience attribute.
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True
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To get top managements attention about quality issues it is useful to measure quality in monetary terms rather than from operational perspectives on the defects and nonperformances.
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True
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Which of the following is not considered part of total quality?
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6 Sigma
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Which is not an advantage of the periodic review system?
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a) Helps to control “A items”
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Order qualifiers are goods and service features and performance characteristics that differentiate one customer benefit package from another and wins a customers business.
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False
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Corporate sponsors that support 6 sigma activities are typically called black belts.
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False
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Which of the following describes the quality definition of fitness for use?
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The ability of a good/service to meet customer needs
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In the defined faith 6 Sigma DMAIC problem solving approach, teams identify critical to quality, ETQs, characteristics considered by the customer to have the most impact on quality.
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True
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A Pareto diagram helps to understand the relationship between two variables and verifies possible cause and effects.
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False
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Because of the amount of resources required a Kaizan blitz is generally performed outside of normal working hours over several weeks or months.
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False
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Formal marketing research such as surveys and focus groups is the only useful…
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False
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W Edwards Demmings success in Japan was his ability to teach quality specialists rather than upper management.
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False
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Which of the following is not a key input to a single period inventory model:
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Probability that demand is less than the optimal order quantity
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Independent demand:
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d) Needs to be forecasted
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Traditional market research may not always provide accurate information about customer needs.
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True
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Many practical inventory situations include backorders and quality discounts.
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True
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Average inventory in the EOQ model is defined as:
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½ the order quantity.
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Cost associated with backordering a product is called_____
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b) Shortage
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While it is generally difficult to change the structure of a value chain, operation managers can make strategic choices about technology and HR.
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True
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The decision of how many fruit baskets to make for the holiday season would be analyzed using a single period inventory model.
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True
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Demand that incorporates uncertainty is called:
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Scotastic
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In the fixed period system, managers must make 2 key decisions. The time interval between reviews and the replenishment level.
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True
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Using color-coated wires to reduce mistakes associated with assembling complex electronic products is an example of poke-a-yoke.
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True
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Which of the following is not a component of holding costs.
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Order Processing
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In the act stage of the demi cycle improvements become standardized and the plan is implemented as a current best practice and communicated through an organization.
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True
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Because of demand in customers, organizations must always maintain a 100% service level.
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False
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The ability to achieve market and financial superiority over competitors is called strategic planning.
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False
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Inspecting, unpacking and storing are components of:
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a) Ordering or setup costs
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The servicescape is more important in organizations than location
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False
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In general, total ordering costs are equal to total inventory-holding costs for the optimal solution to the EOQ model.
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True
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According to the value chain model of Dell, which of the following is not a preproduction activity
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Billing
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Inventory that represents inputs used in manufacturing and service delivery processes is called:
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b) Work in process inventory
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The facility location decision must attempt to minimize the combined costs of producing goods and services and delivering them to customers.
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True
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Because the fixed quantity system orders the same amount each time, time between orders will be constant…
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False
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Which of the following is not directly related to a supply chain:
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Promotion and advertising
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Additional inventory kept over and above the average amount required to meet demand is called:
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d) Safety stock inventory
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Large order sizes and frequent price changes will reduce the bullwhip effect in a supply chain.
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False
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“A items” typically comprise a high percentage of total dollar usage but a low percentage of unit volume.
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True
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Infinite scalability is most related to:
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High scalability
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Inventory that represents partially completed products waiting for their processing is called:
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b) Work in process inventory
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If a multi-site organization has a stable customer benefit package and many identical and standardized facilities…
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False
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“C items” are the vital few that must be closely managed in an inventory system.
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False
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During which stage of technology development and adoption is design flexibility most critical?
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Birth
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Which of the following is not a valid reason for using judgmental forecasting method?
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d) It is easier to compute a forecast error
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For Dell a push/pull boundary is a very early in supply chain.
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True
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Lead-time is the time it takes to prepare an order for shipping to a customer.
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False
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According to a 2001 Intel corporation annual report which of the following is not a stage in technology.
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Growth
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Which of the following does not fit with the Delphi method?
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b) Brought together as a group
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A supply chain must either be a push or pull system
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False
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Airline flights to ski areas near Denver probably have different means and variances throughout the year. This is an example of dynamic demand
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True
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The following are benefits of adopting technology except:
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Easier to protect employee and customer privacy
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Exponential smoothing…
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c) Assigns weight to past data that decay exponentially as the data gets older
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Dell is an example of a responsive supply chain.
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True
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Dependent demand always needs to be forecasted.
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False
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An organization that would typically use a revenue management system is:
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A car rental company
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A moving average model works best when
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c) There is no trend. Seasonal or cyclical pattern
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Contract manufacturers can provide the benefits of faster time to market and lower costs because of economies of scale.
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True
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The cost associated with maintaining measurements would be an example of appraisal costs.
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True
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Computer integrated manufacturing systems result in:
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Decreased equipment utilization
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A stock-keeping unit is the same, not matter at which location.
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False
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Dell offers numerous special deals and promotions on its website within a short time after realizing it needs to ship.
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True
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Regression analysis:
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d) Can be used with time as the independent variable
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Enterprise resource planning systems (ERP):
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c) Handle customer ordering, inventory management, and production scheduling on a real time basis.
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Large orders require higher inventory holding costs but lower ordering costs.
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True
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Inventory refers to the warehouse…
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False
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Which of the following is not a statistical method:
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Delphi
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Which choice is not correct?
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a) Ability to test manufacturing products before they physically exists
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Inventory holding costs can be accurately measured by counting departments.
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False
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A supply chain is broader in scope than the value chain and encompasses pre and post activity.
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False
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Regular patterns in a data series that take place over long periods of time:
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Cyclical patterns
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Which of the following is not a major characteristics of an integrated operation system:
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a) Does not have capability in making key decisions in good time
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Setup costs depend on the number of items manufactured.
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False
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Technology development and adoption generally have 3 stages.
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False
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Repeatable periods of ups and downs over short periods of time are called:
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b) Seasonal patterns
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Which of the following activities would not be part of a return facilitators activities:
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Being an internet enabler
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Safety stock inventory is additional amount of inventory kept over and above the average amount required to meet demand.
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True
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High scalability is the capacity to serve additional customers at a high incremental variable cost.
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False
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A ____ is a one-time variation that is explainable.
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c) Irregular variation
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Information technology has significantly effected health care. Which of the following is not an outcome:
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c) Faster exchange of handwritten charts between physicians and nurses
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Work in process inventory consists of completed products ready for distribution.
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False
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A social technical system integrates technology, people and processes.
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True
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Which of the following is not one of the five characteristics of a time series:
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Time bucket
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All organizations face common issues in technology. Which does not belong:
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d) CNC vertical machining centers minimize costs
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Marketing and operations generally prefer high inventory while accounting does not.
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True
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High productivity raises everyone’s standard of living.
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True
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___ forecasts are needed for planning production schedules and to assign workers to jobs.
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Short Range
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database systems, AI, and voice recognition software are examples of:
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soft technology
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maintaining large stocks of inventory is a requirement in today’s supply chain in order to improve profitability.
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False
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Revenue management systems are vital to most manufacturing organizations.
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False
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____ forecasts are needed to plan for facility expansion.
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Long Range
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Which of the following statements best represents McDonalds approach to global business?
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a) one brand can’t be all things to all people
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In practice, managers rely almost exclusively on statistical forecast.
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False
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An unsold advertising space is an example of a perishable aspect.
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True
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_____ forecasts are needed to plan workforce levels, allocate budgets among divisions and schedule jobs among resources.
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b) intermediate range
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Considering the workforce component of infrastructure which term does not fit:
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c) task-orientated
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The center of gravity method takes all of the following except:
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d) maximum response time
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Customer relationship management systems use segmentation data to focus marketing…
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True
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An exponential smoothing model can be found easily…
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False
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Operations design choices include all of the following except:
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a) operating plans and controls
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Regression models are often used in forecasting to incorporate…
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True
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Enterprise resource planning systems are designed to build customer relationship and loyalty.
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False
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Factors such as manager’s preferences, services and taxes, available transportation systems, and environmental impacts are most closely related to…
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c) district or community location
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Which of the following would not constitute an element of operations infrastructure?
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market segmentation
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In a regression model, both the dependent and independent variables must be numerical.
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True
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Flexible management systems integrate machines or robots with automated handling devices to route work, low tools and …
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True
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All of the following are considered non-economic factors in location decisions except:
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b) employee empowerment
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Families of goods/services having similar characteristics or methods of creation are called:
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c) strategic business units
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In an exponential smoothing model, larger values of alpha, closer to 1, places less emphasis on recent data and more on older…
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False
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Industrial robots automate the skills that most humans can readily perform.
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False
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Which of the following is true regarding order amplification:
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a) the amplitude of sales over time is smaller than the variation in order quantity
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Flow time reduction often drive simultaneous improvements in all but which of the following:
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c) innovation
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Exponential smoothing models “never forget” past data as long as the smoothing constant is between 0 and 1. In contrast moving average methods “completely forget” all data older than k periods in the past.
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True
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Computer integrated manufacturing systems define hardware, software, database management, and communications to automate and control a broad range of production activities.
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True
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The metric perfect order fulfillment is often used to measure:
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a) delivery reliability
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Regarding quality, which statements is not true:
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d) high goods quality producers can excel by charging low prices
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Statistical forecasting is based upon the assumption that the future will be an extrapolation of the past.
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True
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A principal advantage of numerical control is that an operator can only load and unloads and pushes a button to begin processing and can tend several machines at once.
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True
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A contract manufacturer can offer significant competitive advantages. Which one of the following is not an advantage:
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d) standardized design
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Which competitive priority is most vital to success business:
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d) all of these are important
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Aggregate forecasts are generally much easier to develop whereas detail forecasts require more time to develop
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True
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An integrated operating system can readily be transferred between different industries.
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False
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_____ is the process of delaying product customization until the product is closer to the customer at the end of a supply chain.
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postponement
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Which of the following is not generally considered a competitive priority?
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d) infrastructure
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In forecasting a regular variation that is explainable can normally be discarded.
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True
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A control chart is quality control jargon for an ordinary that plots data over time.
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False
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For general motors supply chain, the _____ is the push/pull boundary.
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dealer
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Data warehouses and data mining are often typical components of an integral operating system.
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True
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Because of random variations, forecasts are never 100% accurate.
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True
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Which of the following does not describe how customers evaluate services in a manner that differs from the way they differentiate goods?
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c) customers perform a prior expectations of service quality
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Seasonal patterns can occur over the weeks during a month, over days during a week, or hours during a day.
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True
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Amazon.com would be an example of customer to customer.
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False
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A pull system…
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c) waits for customer orders
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In regards to ways customers evaluate services in comparison to their evaluation of goods, which of the following is not true:
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b) customers normally adopt innovations in services faster
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Trends are characterized by repeatable periods of ups and downs over short periods of time.
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False
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Information technology has been equally important to business-to-business, business to customer, and customer-to-customer.
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True
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A push system…
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c) can reduce transportation costs by using full shipments
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With regard to 3 customer attributes in evaluating the quality of goods and services, those associated with a new laptop computer such as processor speed, are classified as:
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a) search attributes
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A long-range forecast typically covers a planning horizon of 3-12 months.
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False
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An intermediary specializes in handling all aspects of customers returning a good or invoking service guarantees.
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False
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Which is true regarding a responsive supply chain?
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b) Product life cycles are short and change often due to innovation
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Computer chips and microprocessors are examples of hard technology.
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True
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Long-range forecasts expressed in sales dollars are more meaningful to top managers.
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True
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In time sequence which of the following needs to be accomplished first:
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a) understand customer’s needs and wants
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A _____ seeks to balance capacity and demand… |
b) efficient supply chain
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Top managers use detailed forecasts for individual products for decisions involving financial planning and for locating new facilities.
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False
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With regard to 3 types of customer attributes and quality of goods/services, those associated with having a meal in the restaurant service…
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b) experience attributes
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A ____ produces only what is needed at upstream stages in the supply chain in response to customer demand signals.
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d) pull system
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Because of the Internet all parts of the value chain can know immediately about changes in demand and supply. Thus something is no longer required.
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False
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Better operational decisions can be made by integrating forecasting and value chain capacity management systems.
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True
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Without the Internet, there would be little application of technology services.
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False
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Cost of recalls, etc is classified as internal failure costs.
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False
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Requirements that are expected in a good/service are called
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Dissatisfiers
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A _____ produces goods in advance of customer demand using only a forecast of sales and moves them to points of sale where they are stored as finished goods in inventory.
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c) push system
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From the perspective of operations management, all manufacturing organizations regardless of size or type face similar issues in technology.
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True
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With undermanaged inventory…
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True
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A firm’s ability to achieve market and financial superiority over a competitor is called:
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c) competitive advantage
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A firm that specializes in certain types of goods producing activities such as customized design…
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b) contract manufacturer
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Electronic medical records in healthcare are designed to improve patient satisfaction more…
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False
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Goods and service features that customers have thought or can articulate are called:
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c) Excitors or delightors
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With regard to 3 types of customer attributes in evaluating quality….child care staff:
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c) creative attributes
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