IT 371 Quiz 1 – Flashcards
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The three mainline functions of any business are
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operations, marketing, and finance.
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Regardless of how departments and functions are individually? managed, they are always linked together through
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processes
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Which of the following events from the twentieth century defines the history of operations and supply chain? management? A. The invention of the assembly line for the Model T car by Henry Ford. B. The Toyota Production System for removing wasteful activities from an organization. C. Alfred? Sloan's introduction of strategic planning for achieving product proliferation and variety. D. All of the above
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D. All of the above
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The finance function influences operating decisions about
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Capacity epansions
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What do all processes? have?
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Inputs and outputs
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Which of the following are characteristics of service provider? operations?
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Perishable outputs
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?_______ are the fundamental activities that organizations use to do work and achieve their goals.
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Processes
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If? "every process and every person in an organization has? customers," then
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Some customers are external and some are internal
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A? ________ process is a set of activities that delivers value to external customers.
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Core
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Which core process includes the activities required to produce and deliver the service or product to the external? customer?
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order fulfillment process
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Selecting the transportation mode? (train, ship,? truck, airplane, or? pipeline) and scheduling both? in-bound and outbound shipments is typically accomplished by which supply chain? process?
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logistics
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SSS is a local restaurant serving the needs of college? students, faculty, and staff. The manager is considering adding a website so? carry-out customers can order in advance more easily. Which process would be a core process in this new? undertaking?
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Web design
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Technological change is proceeding at a rapid? rate, but there are many challenges such as
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employees may resist technological change if it is not managed well.
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The foundation for managing processes and value chains is
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operations strategy
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An effective way of gaining a global presence when one firm has a core competency that another needs but is unwilling? (or unable) to duplicate is
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a collaborative effort.
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In market? analysis, the needs assessment step identifies
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products/services attributes
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Core competencies reflect the collective learning of the organization. Core competencies include
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a? well-trained, flexible workforce.
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Gymtastic was able to serve large crowds of customers and then adjust operations to serve very few customers thanks to their competitive capability related to
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flexibility
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Which of the following scenarios illustrates an order? winner? A Ken had always been fascinated by shiny? objects, so he plucked the? chrome-plated thermos from the shelf and raced to the nearest checkout line. B. A company specifies that they will purchase materials only from suppliers that have achieved a specific certification. C. As part of her initial? search, Janice screened mutual funds based on a? five-year return of twenty percent and the manager tenure of at least ten years. She planned to study the prospectus for each of those funds before investing her nest egg. D. A safety conscious customer considers only vehicles that have side air bags and? anti-lock brakes.
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A. Ken had always been fascinated by shiny? objects, so he plucked the? chrome-plated thermos from the shelf and raced to the nearest checkout line.
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United States business operations? (i.e., product? design) in an international area based on the local standard rather than U.S. standards is an example of a decision based on? _______ considerations.
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ethical
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A process produces? 6,000 units of output that yield? $5.00 per unit. Resources contributed to this output are 200 hours of labor at? $15.00 per? hour, materials at? $750, and overhead at? $250. What is the labor productivity? (in units per? labor-hour)?
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30
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The Fine Feline Co. produces decorative collars for cats. Last week employees worked 320 hours and produced? 32,000 cat collars. This week the workers worked the same 320? hours, but produced? 33,600 cat collars. Labor productively increased by? _______ over last week.
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5%
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?Ann's of Austin produces a premium Passion Fruit sorbet for local restaurants. Ann has unit costs of? $1.60 per gallon? (labor, 80? cents; materials, 70? cents; and? overhead, 10? cents) and she sells the product for? $2.00 per gallon. What is her multifactor? productivity?
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1.25
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The? low-cost source for service labor for the world is
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India
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A firm has the least amount of control over external causes of? supply-chain dynamics. External causes include
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expected changes in customer demand
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A disadvantage of centralized placement is
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increased cost of shipping small quantities directly to distant customers.
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For the manufacturing? firm, tier 2 suppliers provide? ______________ with components.
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tier 1
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Companies that engineer products to customer specifications normally do not have? _______________ as part of their supply chains.
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distribution centers
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What percentage of total income from sales does the typical service provider spend on purchased services and? materials?
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30 to 40 %
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A fundamental purpose of supply chain design for manufacturers is to
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control inventory by managing the flow of materials.
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Which of the following is NOT one of the three basic ways inventories are? reported? A. material cost of goods sold B. weeks of supply C. average aggregate inventory value D. inventory turnover
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A. material cost of goods sold
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In which of the following ways can supply chain design improve positive net cash? flows? A. reducing lead times B. reducing the backlogs of orders C. reducing the time lag between paying for materials and receiving payment for manufactured products D. All of the above.
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D. All of the above.
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Inversion? Specialists, Inc., is relatively new in the industry and has calculated its inventory turnover at 5. What action would result in decreased inventory turns for Inversion? Specialists, Inc.?
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Increase the average aggregate inventory value.
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A? firm's database showed that the average value of all inventory items for the year was? $7,650. The cost of goods sold was reported at? $76,500. Because the company closes for two weeks each? year, its business year is reduced in length. How many weeks of supply were held in? inventory?
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5
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Efficient supply chains are used by firms that
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have a competitive priority of consistent quality.
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What is the one popular design for efficient supply? chains?
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make-to-stock (MTS)
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Design features for efficient supply chains include A. predictable demand. B. customization. C. high contribution margins. D. frequent? new-product introduction.
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predictable demand.
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The firm that allows customers to select from a variety of standard options to create the service or product of their choice is practicing A. channel assembly. B. mass customization. C. postponement. D. None of the above.
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B. mass customization.
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A process called? _________________ is where members of the distribution channel act as if they were assembly stations in the factory.
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channel assembly
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Forward integration can mean which of the? following? A. the firm acquires more channels of distribution B. the firm acquires its own distribution centers and retail stores C. the firm acquires its business customers D. All of the above.
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D. All of the above.
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Pitfalls that should be carefully explored before outsourcing include A. deciding to outsource a process before making a? good-faith effort to fix the existing one. B. it is difficult to fully integrate outsourced processes with the? firm's other processes. C. the firm with a technology advantage may be setting up the other firm to be a future competitor. D. All of the above.
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D. All of the above.
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Backward integration is achieved through
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the purchase of a controlling interest in the? firm's supplier.
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Offshoring is usually at a disadvantage to a more local process approach in the area of
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access to new markets.
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T/F: The purpose of supply chain management is to synchronize a? firm's processes with those of its suppliers and customers.
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True
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T/F: Supply chain management tries to match the flow of? materials, services and information with demand.
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True
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T/F: The purpose of supply chain design is to shape a? firm's supply chain to meet the competitive priorities of its operations strategies.
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True
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Which one of the following is TRUE for supply chain? management? A. Supply chain is about suppliers and does not include distributors or customers. B. Supply chain includes any operation that deals with materials. C. Supply chain applies only to manufacturing because it deals with flow of materials. D. Supply chain applies to both manufacturing and service organizations.
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D. Supply chain applies to both manufacturing and service organizations.
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T/F: Supply chain design for a service provider is driven primarily by the need to control the materials it consumes as it delivers its various services.
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False
