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Management: Skills and Application, 10/e

Leslie W Rue, Georgia State University - Emeritus
Lloyd L Byars, Georgia Institute of Technology

Operations Control

Chapter Quiz


1	A cost control system does not tell a manager why a cost is out of control.
		A)	TRUE
		B)	FALSE


2	With JIT, managers make less frequent and larger orders.
		A)	TRUE
		B)	FALSE


3	JIT typically increases inventory carrying costs.
		A)	TRUE
		B)	FALSE


4	"Quality" means the same thing to different managers.
		A)	TRUE
		B)	FALSE


5	JIT produces to forecasts while MRP produces to demands.
		A)	TRUE
		B)	FALSE


6	The hourly wages of workers at a General Motors assembly plant for Blazer SUVs are an example of ______ costs.
		A)	direct labor
		B)	factory overhead
		C)	indirect labor
		D)	materials


7	The components that are inserted into a Dell laptop computer are an example of ______ costs.
		A)	materials
		B)	direct labor
		C)	factory overhead
		D)	indirect labor


8	Zero inventory systems are another name for:
		A)	MBO.
		B)	MRPII.
		C)	JIT.
		D)	intrapreneuring.


9	What type of demand is represented by a warehouse full of Compaq personal computers?
		A)	Fixed
		B)	Demand push
		C)	Independent
		D)	Dependent


10	Windshields for new Chrysler minivans on the production line are an example of ______ demand items.
		A)	independent
		B)	demand push
		C)	dependent
		D)	fixed


11	When Dell Computer keeps an extra stock of Intel Pentium chips in case there is an increase in the demand for its computers, this is an example of ______ inventory.
		A)	quality checkpoint
		B)	MRPII
		C)	MRP
		D)	safety stock


12	Which of the following is an example of an inventory carrying cost?
		A)	Storage costs
		B)	Obsolescence costs
		C)	Insurance costs
		D)	All of the above


13	Another term for acceptance control is ______ control.
		A)	product quality
		B)	range
		C)	mean
		D)	process


14	When a plastics manufacturing company adjusts its machines to meet the demands of a particular customer, this is an example of ______ control.
		A)	process
		B)	acceptance sampling
		C)	locus
		D)	product quality


15	What type of control is designed to prevent defective units?
		A)	Process
		B)	Product
		C)	Sampling
		D)	EOQ


16	When a production foreman selects fireworks to be tested to confirm the quality of the production process, this is an example of ______ control.
		A)	acceptance sampling
		B)	process
		C)	range
		D)	mean


17	When a production supervisor monitors the packages of Tide detergent produced to ensure that they contain the correct number of ounces within a predetermined range, this is an example of a(n) ______ chart.
		A)	R
		B)	BOQ
		C)	mean
		D)	batch


18	JIT systems are also called ______ systems.
		A)	zero inventory
		B)	stockless
		C)	Kanban
		D)	all of the above


19	The rate of output for a JIT system are based on a(n):
		A)	combination plan.
		B)	variable production plan.
		C)	level schedule.
		D)	fixed production plan.


20	The idea of "doing it right the first time" is known as:
		A)	continuous improvement.
		B)	kanban.
		C)	quality assurance.
		D)	none of the above.

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