Operations Management Ch 3 ; 4 IRSC – Flashcards
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What technique is based on computing the quantity of goods a company needs to sell to just over its cost?
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break-even analysis
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Costs that are proportional to the amount of units produced, such as materials and labor are
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variable costs
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In break-even analysis, in order to make a profit the company must
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sell above the break-even point
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Which product and service strategy is used to produce standard components that can be combined to customer specifications?
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assemble-to-order
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Information Technology does NOT assist the firm in:
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information creation
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The ease with which the product can be made is its
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manufacturability
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Service design differs from product design by including
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the esthetic and psychological benefits of the product
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Which of the following is not a step in product design?
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conceptual design
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is a vital link between customers and product design
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marketing
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All products designs begin with
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an idea
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Which of the following typically represent the beginning of a supply chain:
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external suppliers
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Supply chain management is the vital business function which does NOT coordinate and manage:
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human resource interviews
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Which term refers to inaccurate or distorted demand information created in the supply chain?
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bullwhip effect
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Price fluctuations follow all but which of the following marketing promotions?
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advertising
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The time between order placement and the receipt of goods is called
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lead time
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What is a network internal to an organization called?
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intranet
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What is an extension of an intranet to include suppliers and customers called?
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extranet
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Which of the following is open to the most users?
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the internet
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What refers to owing or controlling sources of raw materials and components?
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backward integration
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What term refers to processes or activities that are completed in-house?
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insource
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What does all product design begin with?
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all the products characteristics
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Approximately what percentage of ideas do not make it past the screening state?
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80%
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What is the break even point in break even analysis?
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quantity of goods a company needs to sell just over its costs
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What are the factors impacting product design?
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how easy or difficult it is to manufacture the product, too costly
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What are the issues involved in process design?
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4 stages Intro, Growth, Maturity, Decline, first 2 stages still being improved last 2 stages well defined
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What is a batch process?
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a type of process used to produce a small quantity of products in groups or batches based on customer orders or specifications
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What is process flow analysis?
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technique used for evaluating a process in terms of the sequence of steps from inputs to outputs with the goal of improving its design.
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What is a process flowchart?
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chart showing the sequence of steps in producing the product or service
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What are the differences in key organizational decisions for different types of operations?
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product design, competitive priorities, facility layout, strategy
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What are some of the greatest impacts technology has had on process design?
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it can create drawings on screen, rotate them, magnify, and evaluate
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How does a service being intangible impact service design?
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the service is geared to and to create the correct expectation, important to design to identify the target market
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How does service design differ from product design?
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you have to describe what the customer will fell not what they will get
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What are the three elements for the service package?
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physical goods, sensual benefits, psychological benefits
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What are three different service designs?
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substitute technology for people, get the customer involved, high attention approach
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What is a supply chain
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a network of all the activities involved in delivering a finished product or service to the customer
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What is the "bullwhip effect"?
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inaccurate or distorted demand information created in the supply chain
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What causes the bullwhip effect?
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demand forecast updating, order batching, price fluctuation, and rationing and gaming
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What are some examples of price fluctuations?
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price discounts, quantity discounts, coupons, and rebates
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What are the issues affecting supply chain management?
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it can be used to integrate external suppliers, it has internal operations with regard to order processing, order picking, and it can have extend distribution done by a third party provider.
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What is an Intranet?
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networks that are internal to an organization
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What is vertical integration?
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a measure of how much of the supply chain is actually owned or operated by the manufacturing company.
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What is the activity most frequently outsourced by large companies?
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manufacturing
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What are the institute for Supply Management principles of ethical supply chain management conduct?
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Impropriety, conflicts of interest, influence, responsibility to your employer, positive customer relationships, sustainability, social responsibility, confidentiality,
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According to several studies, what are the three most important criteria for selecting suppliers?
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which merchants have the product/service you want, availability, quick response time
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What are the arguments in favor of having multiple suppliers?
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reduce the risk of a disrupted supply
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What does leveraging core competence mean?
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sharing knowledge
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What are the critical factors in successful partnering?
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trust, intimacy
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What is the role of warehouses in supply chain distribution?
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transportation consolidation, product mixing or blending, and service
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What is the benefit of cross docking?
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retailer reduces inventory holding cost, cross docking can consolidate shipments to achieve truckload quantities and reduce a company's transportation costs
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How can supply chain performance be measured?
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ROI, profit, market share, revenue growth
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What are the important trends in supply chain management?
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accounting, marketing, information systems, and operations
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What does lead time mean?
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time from order placement to order receipt
