QUESTION Which of the following, if true, strengthens the argument for being a low-cost player? A) Customers who believe that they need high levels of customer service are more likely to choose a niche retailer. B) An expected upturn in the economy will increase consumer purchasing power. C) Being the low-cost player requires a company […]
QUESTION Give two reasons why storing a lot of inventory may be a problem and explains why stores wouldn’t want to keep a lot of product on hand. Give examples. What will be an ideal response? ANSWER Answer: Space: Some products, such as lumber for building houses, take up a lot of room and […]
QUESTION If EZTrade pursues the low-cost approach, which of the following is most likely to be true? A) It will seek to take advantage of economies of scale. B) It will attempt to win customers by providing more extensive customer support. C) It will earn greater profits than it would have had it chosen another […]
QUESTION What are the two strategies for dealing with suppliers, and what are the reasons behind each? What will be an ideal response? ANSWER Answer: The first strategy is to use many suppliers. The reasoning is that if one of them fails to have the product available or charges too high a price, another […]
QUESTION A quality control manager is given the task of evaluating what went wrong with the Pest Eradication Device. She announced that the goal of her investigation is to determine whether the project manager or the executive is correct. Which of the following is the best evaluation of this goal? A) It is a well-chosen […]
QUESTION Statistical process control would NOT work in which of the following situations? A) checking cookies on a moving conveyor belt B) checking for bruised apples in bushel baskets C) checking pages coming off a printing press D) checking for accuracy in DNA sampling data E) checking parts installed on a robotic assembly line […]
QUESTION Where does the statement “[it] gets people away from thinking that 96 percent is good, to thinking that 40,000 failures per million is bad” apply? A) statistical process control B) Six Sigma C) ISO 9000 series D) total quality management E) generic quality assurance programs ANSWER Answer: B Explanation: B) “Six Sigma gets […]
QUESTION What are analytic transformation and synthetic transformation? What will be an ideal response? ANSWER Answer: Analytic transformation is the process in which resources are broken down to create finished products. Synthetic transformation is the process in which resources are combined to create finished products. Explanation: Analytic transformation is the process in which resources […]
QUESTION What is a continuous process and what is an intermittent process? What will be an ideal response? ANSWER Answer: A continuous process is a production process in which goods or services are turned out in a long production run on an ongoing basis over time. An intermittent process is a production process in […]
QUESTION Give an example that is not from your book about resources (inputs), a transformation process the resources go through, and then the resulting finished products (output). What will be an ideal response? ANSWER Answer: Answers will vary. Sample answer: silica, labor, heat > melting > glass Explanation: Answers should show resources, a transformation […]
