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Multiple Choice Quiz
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1
The activity that controls the transmission of physical materials through the value chain refers to:
A)procurement.
B)distribution.
C)logistics.
D)production.
E)materials management.
2
_______ is the procurement and physical transmission of material through the supply chain, from suppliers to customers.
A)Manufacturing management
B)Production
C)Logistics
D)Distribution
E)TQM
3
Two important objectives shared by both manufacturing and materials management are:
A)minimize cost and improve product quality.
B)customer satisfaction and employee moral.
C)product efficiency and process improvement.
D)global expansion and R & D efficiency.
E)market share and profitability.
4
__________ is a management philosophy that strives to improve the quality of a company's products and services.
A)TQM
B)Flexible manufacturing
C)Reengineering
D)JIT
E)Logistics
5
All of the following are the key points argued by Deming except:
A)mistakes, defects, and poor-quality materials are not acceptable and should be eliminated.
B)management should create an environment in which employees will not fear reporting problems.
C)the quality of supervision should be improved by allowing more time for supervisors to work with employees.
D)achieving better quality is only the responsibility of top management.
E)train employees in new skills to keep pace with changes in the workplace.
6
The EU requires that the quality of a firm's manufacturing processes and products be certified under a quality standard known as __________ before the firm is allowed access to the EU marketplace.
A)TQM 3000
B)ISO 9000
C)JIT 14000
D)FMT 2000
E)None of these.
7
The concept of _______ tells us that as plant output expands, unit costs decrease.
A)fixed costs
B)ISO 9000
C)economies of scale
D)lean production
E)mass customization
8
_______ is also referred to as flexible manufacturing technology.
A)TQM
B)Minimum efficient scale
C)JIT
D)Universal needs
E)Lean production
9
Flexible manufacturing technologies provide companies with which of these abilities?
A)Mass production of a standardized output.
B)Individual custom build-to-order.
C)Mass customization.
D)JIT deliveries.
E)Universal needs.
10
_______ affect location decisions.
A)Political ideologies
B)Logistics
C)Materials management
D)Value-to-weight ratio
E)Minimum efficient scale
11
Concentrated manufacturing makes most sense when:
A)trade barriers are high.
B)the product's value-to-weight ratio is high.
C)the product does not serve universal needs.
D)volatility in important exchange rates is expected.
E)All of these apply.
12
When _______, decentralization of manufacturing is appropriate.
A)trade barriers are low
B)the product serves universal needs
C)the products value-to-weight ratio is high
D)volatility in important exchange rates is expected
E)flexible manufacturing technology exists
13
Decisions about whether a firm should make or buy parts are called __________ decisions.
A)sourcing
B)JIT
C)logistics
D)minimum efficient scale
E)universal needs
14
All of these, except _______, are the arguments that support vertical integration.
A)lower costs
B)facilitates investments in highly specialized assets
C)protects proprietary product technology
D)facilitates the scheduling of adjacent processes
E)strategic flexibility
15
Making component parts in-house refers to:
A)outsourcing.
B)vertical integration.
C)strategic flexibility.
D)universal need satisfaction.
E)horizontal integration.
16
_______ is the weakest argument for vertical integration.
A)Lowers cost
B)Proprietary product technology protection
C)Improved scheduling
D)Facilitating specialized investment
E)None of these.
17
The arguments that support buying component parts as opposed to making them in-house include:
A)facilitates investments in highly specialized assets.
B)proprietary product technology protection.
C)strategic flexibility.
D)improved scheduling.
E)All of these.
18
_______ is defined as the potential for the firm to capture orders from international customers in the country where the firm is outsourcing.
A)Offsets
B)JIT
C)Strategic alliance
D)Logistics management
E)Procurement
19
Regarding most manufacturing firms, Just-in-time systems _____.
A)are too expensive.
B)play a major role.
C)are not noticeable.
D)do not provide effective cost savings.
E)negatively effect quality.
20
J.I.T information systems now play a major role in most.
A)Entertainment firms
B)IT companies
C)Service firms
D)Joint ventures
E)Manufacturing firms
21
The drawback of a J.I.T. system is that it leaves a firm with
A)Fewer HR costs
B)No buffer stock of inventory
C)Location disadvantages
D)Less savings
E)No IT functions
22
EDI systems
A)Require physical transport links between a firm and its suppliers/shippers
B)Require computer links between a firm and its suppliers/shippers
C)Require computer links just between suppliers and shippers
D)Require additional warehousing for DI systems
E)Require staff exchanges between a firm and its suppliers/shippers





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