REVIEWER FOR FINAL EXAMS IN MANAGING MANUFACTURING BUSINESS

1. It is also known as stock.

a. soup c. old
b. inventory* d. stopped

2. The transformation process of raw materials into finished goods is called ___.
a. manufacturing* c. merchandising
b. service d. virtual service

3. Which of the following are inventories held in operations of a hotel business?

a. toilet items* c. drugs
b. automotive parts d. blood

4. A television manufacturer would not hold one of the following inventories.

a. tv components c. diodes
b. electrodes d. beddings*

5. Which of the following is considered a safety inventory?

a. cycle inventory
b. buffer inventory*
c. de-coupling inventory
d. pipeline inventory

6. If you put stocks in warehouse near a retail store where you supply so that when
inventory runs out, you can delivery instantaneously, your inventory is called.
a. anticipation inventory
b. pipeline inventory*
c. de-coupling inventory
d. buffer inventory

7. If you store additional inventory because of expected demand fluctuation, the inventory
stored is called.
a. anticipation inventory*
b. de-coupling inventory
c. buffer inventory
d. pipeline inventory

8. Suppose a baker makes three types of bread, each of which is equally populat with its
customers. Because of the nature of the mixing and baking process, only one kind of
bread can be produced at any time. The baker would have to produce each type of bread
in batches. How do you call this kind of inventory?
a. cycle inventory*
b. anticipation inventory
c. buffer inventory
d. pipeline inventory

9. Which of the following is not a disadvantage of holding inventory?

a. inventory ties up money
b. inventory incurs storage costs
c. inventory uses space that could be used to add value
d. inventory stored in warehouse would help the manufacturing business prevent
from running out of materials and immediate stopping*

10. Which of the following statement is true?

I. Some businesses have relatively small inventories compared with the costs of the total
inputs to the operations.
II. Inventory costs will be far higher if storage is the prime purpose of the operation.
a. I & II*
b. I only
c. II only
d. None of the above

11. It is the consistent conformance to customers' expectations.

a. quantity
b. quality*
c. consistency
d. integrity

12. The approach that views quality as precise and measurable set of characteristics is
called _____.
a. product-based*
b. value-based
c. manufacturing-based
d. user-based

13. The approach concerned with making sure that the product is fit for its purpose is
called _____.
a. user-based*
b. manufacturing-based
c. product-based
d. value-based

14. If you view quality in terms of cost and price, you are leaned towards which approach?
a. product-based
b. manufacturing-based
c. value-based*
d. user-based

15. If the you are concered with making products that are free of errors, you are focusing
on _______ approach.
a. user-based
b. product-based
c. value-based
d. manufacturing-based*

16. If you view quality as synonymous with innate excellence, you are inclined towards
which view?
a. transcendent*
b. user-based
c. product-based
d. value-based

17. A customer's view of quality is shaped by the gap between perception and
expectation.
a. The statement is TRUE.*
b. The statement is FALSE.
c. The statement is neither TRUE nor FALSE.
d. None of the above.

18. Which of the following statements is true?

I. The operation's view of quality is concerned with trying to meet customer expectations.
II. The customer's view of quality is what he or she perceives the product to be.

a. I only
b. II only
c. I & II*
d. none of the above

19. If the expectations are greater than perceptions, the perceived quality is _____.
a. very good
b. unchanged
c. best
d. poor*

20. If the expectations are less than perceptions, the perceived quality is ____.
a. good*
b. not good
c. poor
d. worst

21. Gap 1 is basically the gap between which factors or dimensions?

a. customer's specification and operation's specification*
b. concept and specification
c. quality specification and actual quality
d. actual quality and communicated image

22. The gap between actual quality and communicated image gap is _____.
a. Gap 1
b. Gap 2
c. Gap 3
d. Gap 4*

23. The gap between quality specification and actual quality gap is
______.
a. Gap 1
b. Gap 2
c. Gap 3*
d. Gap 4

24. Gap 2 is the gap between _____.

a. concept and specification*
b. quality specification and actual quality
c. actual quality and communicated image
d. customer's specification and operation's specification

25. Which of the following is the best action required to ensure high perceived quality in
Gap 1?
a. Ensure that there is consistency between internal quality specification of the
product and expectations of customers.*
b. Ensure that the internal specification of the product or service meets its intended
concept or design.
c. Ensure that the actual product or service conforms to its internally specified quality
level.
d. Ensure that the promises made to customers concerning the product can in reality be
delivered by the operation.

26. Which of the following is the best action required to ensure high perceived quality in
Gap 2?
a. Ensure that there is consistency between internal quality specification of the product
and expectations of customers.
b. Ensure that the internal specification of the product or service meets its intended
concept or design.*
c. Ensure that the actual product or service conforms to its internally specified quality
level.
d. Ensure that the promises made to customers concerning the product can in reality be
delivered by the operation.

27. Which of the following is the best action required to ensure high perceived quality in
Gap 3?
a. Ensure that there is consistency between internal quality specification of the product
and expectations of customers.
b. Ensure that the internal specification of the product or service meets its intended
concept or design.
c. Ensure that the actual product or service conforms to its internally specified
quality level.*
d. Ensure that the promises made to customers concerning the product can in reality be
delivered by the operation.

28. Which of the following is the best action required to ensure high perceived quality in
Gap 4?
a. Ensure that there is consistency between internal quality specification of the product
and expectations of customers.
b. Ensure that the internal specification of the product or service meets its intended
concept or design.
c. Ensure that the actual product or service conforms to its internally specified quality
level.
d. Ensure that the promises made to customers concerning the product can in
reality be delivered by the operation.*

29. Which of the following IS NOT one of the quality characteristics of a car?
a. functionality: speed, acceleration, fuel consumption, ride quality
b. appearance: aesthetics, shape, door gaps
c. reliability: keeping promises*
d. recovery: ease of repair
30. The maximum level of value-added activity that an operation, or process, or facility is
capable of over a period of time is called ______.
a. capacity*
b. capability
c. quality
d. integrity

31. Capacity constraint is also called _______.

a. capacity door
b. capacity floor
c. capacity ceiling*
d. capacity window

32. Strategy concerned with introducing or deleting major increments of physical capacity
is called __________.
a. short-term capacity strategy
b. medium-term capacity strategy
c. long-term capacity strategy*
d. micro-term capacity strategy

33. This involves an assessment of the demand forecasts over a period of 2-18 months
ahead.
a. short-term capacity strategy
b. medium-term capacity strategy*
c. long-term capacity strategy
d. micro-term capacity strategy

34. This enables operations managers to flex output for a short period.
a. short-term capacity strategy*
b. medium-term capacity strategy
c. long-term capacity strategy
d. micro-term capacity strategy

35. __________ indicates medium-term capacity planning that aggregates different

products and services together in order to get a broad view of demand and capacity.
a. short-term capacity control
b. medium-term capacity control
c. long-term capacity control
d. aggregated planning and control*

36. Which of the following is true?

a. Capacity levels in excess of demand could mean over-utilization of capacity.
b. Revenues are affected by the balance between capacity in demand in the
opposite way.*
c. Quality of goods is not affected by capacity and demands.
d. Speed of response to customer demand is not important.

37. Which of the following statements is true?

I. Dependability of supply is affected by how close demand levels are to capacity.
II. Flexibility can be enhanced by surplus capacity.

a. I only
b. II only
c. I & II *
d. none

38. Working capital can be affected if an operation decides to build up finished goods
inventory prior to _____.
a. demand*
b. capacity
c. quality
d. supply

39. Quality of goods or services might be affected by a capacity plan involved in large
fluctuations of capacity levels.
a. The statement is TRUE.*
b. The statement is FALSE.
c. The statement is neither TRUE nor FALSE.
d. The statement is meaningless.

40. The number of units within a process waiting to be processed further is called
___________.
a. finished goods inventory
b. raw materials inventory
c. work-in-progress inventory*
d. multi-echelon inventory