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NF Goods Inc.is a contract manufacturer of laptops for a reputed consumer electronics company.It uses a facility layout in which the workers remain in one location,and the laptops move from one worker to another.Each person in turn performs his or her required tasks.Thus,NF Goods Inc.is using a _____.


A) product layout
B) process layout
C) project layout
D) web layout
E) fixed-position layout

F) A) and B)
G) A) and E)

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Production refers to all the activities and processes used in making both tangible and intangible products.

A) True
B) False

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In the context of operations management,which of the following is true of the transformation process?


A) It focuses on producing outputs that are less worth than the combined costs of the inputs.
B) It occurs in all organizations,regardless of what they produce or their objectives.
C) It occurs only in manufacturing companies because they use tangible inputs.
D) It involves replacing quality with productivity when manufacturing goods.
E) It includes the same methods and number of steps in all organizations.

F) C) and D)
G) None of the above

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Continuous improvement of an organization's goods and services is built around the notion that:


A) quality is simply a function of the operations process.
B) quality is free.
C) quality is extremely easy to determine.
D) quality is a concern of the production department only.
E) quality is expensive.

F) A) and E)
G) A) and D)

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Facility location decisions are significant for an organization because:


A) of the customers' preference to have production facilities located nearby.
B) most customer contacts occur in manufacturing facilities.
C) speed of delivery is not very important.
D) proximity to market or community characteristics are not important factors.
E) of the high costs involved with the decisions.

F) B) and E)
G) C) and D)

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The products of service providers tend to be more customized than those of manufacturers because:


A) different customers have different needs.
B) the requirements of all customers are more or less the same.
C) technological innovations have reduced variability.
D) there is more capital required in service provision.
E) service providers have limited contact with customers.

F) All of the above
G) B) and E)

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Identify a similarity between goods and services.


A) Both are equally labor-intensive.
B) Both produce uniform outputs.
C) Both undergo a transformation process.
D) Both are equally tangible.
E) Both have equal control over the variability of their inputs.

F) C) and E)
G) A) and B)

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Irene is an employee involved in administering activities associated with making both tangible and intangible products that satisfy the needs of customers.Thus,Irene is a(n) _____.


A) finance manager
B) sales manager
C) marketing manager
D) human resource manager
E) operations manager

F) A) and B)
G) B) and E)

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An automobile company allows buyers to select the color,interiors,and features of their cars based on their individual requirements.Though most parts of the cars can be altered to meet the buyers' specifications,their outer body remains the same.This is an example of _____.


A) lean manufacturing
B) standardization
C) mass customization
D) crowdsourcing
E) benchmarking

F) B) and E)
G) A) and E)

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Standardization becomes complex on a global scale because:


A) different countries have different standards for quality.
B) customer needs are same across the globe.
C) standardization slows down production.
D) standardization does not support mass manufacturing.
E) standardization increases production costs.

F) D) and E)
G) A) and D)

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Marson Structures Inc.purchases cement,steel rods,and wooden panels to use in the construction of buildings,houses,and bridges.These inputs are considered as _____ for a construction business.


A) finished inventory
B) partial inventory
C) work-in-process inventory
D) supplier inventory
E) raw materials inventory

F) B) and E)
G) A) and B)

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Which of the following accurately describes the difference between the terms operations and production?


A) Operations is the first step in manufacturing,whereas production is the last step.
B) Operations is simply an analysis of inputs and outputs,whereas production includes a wide range of organizational activities and situations.
C) Operations includes processes used in the making of both tangible and intangible products,whereas production is related only to tangible products.
D) Operations focuses solely on quality,whereas the primary focus of production is productivity.
E) Operations is restricted to small businesses,whereas production occurs in both small and large businesses.

F) None of the above
G) C) and E)

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It is especially difficult to measure quality characteristics when:


A) a firm uses ISO 9000.
B) a firm has a total quality management program.
C) the output is highly tangible.
D) the product is a service.
E) a firm applies quality control.

F) A) and C)
G) A) and B)

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A model of inventory management that identifies the optimum number of items to order to minimize the costs of managing them is called the:


A) just-in-time management model.
B) flexible scheduling model.
C) cost-plus model.
D) economic order quantity model.
E) value chain model.

F) All of the above
G) A) and B)

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How are project organizations different from intermittent organizations?


A) Project organizations deal with products of a lesser magnitude than do intermittent organizations.
B) Project organizations use product layouts,whereas intermittent organizations use fixed-position layouts.
C) Project organizations are mainly found in service industries,whereas intermittent organizations focus on manufacturing.
D) Project organizations are effective for mass production,whereas intermittent organizations produce very few units of a product.
E) Project organizations generally make a unique product,but the products of intermittent organizations are not necessarily unique.

F) A) and D)
G) B) and E)

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A consumer electronics company is involved in the process of deciding what new products to manufacture and for what group of customers.Once this has been decided,it will need to determine what processes it will use to make these products as well as the facilities it needs to produce them.These decisions comprise _____.


A) enterprise resource planning
B) human resource planning
C) succession planning
D) material-requirements planning
E) operations planning

F) A) and B)
G) None of the above

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Minimizing inventory by providing an almost continuous flow of items from suppliers to the production facility is referred to as:


A) just-in-time inventory management.
B) flexible scheduling.
C) continuous manufacturing system.
D) contract manufacturing.
E) crowdsourcing.

F) B) and E)
G) B) and D)

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From the perspective of operations,shoe racks,beds,and tables made by a carpenter are:


A) intangible resources.
B) inputs.
C) equipment.
D) outputs.
E) processes.

F) B) and E)
G) B) and D)

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It can be extremely difficult for service providers to accurately estimate the demand for a service in order to match the right supply of the service because:


A) services cannot be customized.
B) services are not produced at the point of consumption.
C) of the perishability of services.
D) of the tangibility of services.
E) services are highly standardized.

F) C) and E)
G) B) and C)

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_____ reflects the degree to which a good or service meets the demands and requirements of customers.


A) Inseparability
B) Productivity
C) Quality
D) Capacity
E) Agility

F) A) and B)
G) D) and E)

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