Production and Operations Management

401. In ______________ approch the supplier and not the retailer, is responsible formanaging and replenishing inventory.

  1. JIT
  2. QRM
  3. VMI
  4. MRP
Correct answer: (C)
VMI

402. In order to build quality in the culture, a ______________ is established to provide overall direction.It is the driver for the TQM engine.

  1. quality council
  2. quality method
  3. quality system
  4. quality circles
Correct answer: (A)
quality council

403. "Quality is defined by the customer" is

  1. an unrealistic definition of quality
  2. a user-based definition of quality
  3. a manufacturing-based definition of quality
  4. a product-based definition of quality
  5. the definition proposed by the American Society for Quality Control
Correct answer: (B)
a user-based definition of quality

404. Which of the following is true about ISO 14000 certification?

  1. it is a prerequisite for ISO 9000 certification
  2. it indicates a higher level of adherence to standards than ISO 9000
  3. it is only sought by companies exporting their goods
  4. it deals with environmental management
Correct answer: (D)
it deals with environmental management

405. A quality loss function utilizes all of the following costs except

  1. the cost of scrap and repair
  2. the cost of customer dissatisfaction
  3. inspection, warranty, and service costs
  4. sales costs
  5. costs to society
Correct answer: (D)
Sales costs

406. If a sample of parts is measured and the mean of the measurements is outside the control limits the process is

  1. in control, but not capable of producing within the established control limits
  2. out of control and the process should be investigated for assignable variation
  3. within the established control limits with only natural causes of variation
  4. monitored closely to see if the next sample mean will also fall outside the control limits
  5. none of the above
Correct answer: (B)
out of control and the process should be investigated for assignable variation

407. A recent consumer survey conducted for a car dealership indicates that,'when buying a car, customers are primarily concerned with the salesperson's ability to explain the car's features, the salesperson's friendliness, and the dealer's honesty. The dealership should be especially concerned with which dimensions of service quality?

  1. communication, courtesy, and credibility
  2. competence, courtesy, and security
  3. competence, responsiveness, and reliability
  4. communication, responsiveness, and reliability
Correct answer: (A)
communication, courtesy, and credibility

408. Who among the following is associated with contributions to quality control in operations management?

  1. Charles Babbage
  2. Henry Ford
  3. Frank Gilbreth
  4. W. Edwards Deming
  5. Henri Fayol
Correct answer: (D)
W. Edwards Deming

409. Which of the following are the primary functions of all organizations?

  1. operations, marketing, and human resources
  2. marketing, human resources, and finance/accounting
  3. sales, quality control, and operations
  4. marketing, operations, and finance/accounting
  5. research and development, finance/accounting, and purchasing
Correct answer: (D)
marketing, operations, and finance/accounting

410. The service industry makes up approximately what percentage of all jobs in the United States?

  1. 20%
  2. 40%
  3. 66%
  4. 74%
  5. 90%
Correct answer: (D)
74%
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