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A production process characterized by a short production run and frequent adjustments to machines so that different products can be produced is known as a(n)


A) just-in-time process.
B) lean manufacturing system.
C) analytic process.
D) intermittent process.

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

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To make their famous Daddy's Deluxe Italian Sandwiches, Santino's Sandwich Emporium finely slices prime meats, stacks them on Italian bread, adds special seasonings, cheeses, and veggies. The value added by Santinos's when it combines these ingredients to make a sandwich is known as


A) consumer surplus.
B) the analytic function.
C) marginal utility.
D) form utility.

E) B) and C)
F) A) and D)

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Operations managers at Alumax Corporation have found that they can achieve efficient production only by producing very large quantities of aluminum without shutting down the production process. This indicates that Alumax should use a(n) ________ production process.


A) intermittent
B) assembly
C) continuous
D) systematic

E) A) and D)
F) All of the above

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________ is a computer application that enables a firm to combine computerized functions of all divisions and subsidiaries of the firm into a single, integrated software program that uses a single database.


A) Materials requirement planning (MRP)
B) PERT analysis
C) Manufacturing resource planning (MRP II)
D) Enterprise resource planning (ERP)

E) A) and D)
F) All of the above

Correct Answer

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________ standards are concerned with the best practices for managing an organization's environmental impacts.


A) EPA 2001
B) ISO 14001
C) Eurogreen 701
D) Enviro 2001

E) A) and C)
F) All of the above

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Which of the following statements about facility location is most accurate?


A) No firms are influenced by labor costs when making decisions about where to locate.
B) Recent changes in information technology have led firms to favor locations near major urban areas.
C) Manufacturers often seek to reduce time-to-market by locating facilities in areas with access to key modes of transportation.
D) No matter how large they become, most companies ultimately choose to locate major facilities within a few miles of the area in which they started business.

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

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B&B Brothers Manufacturing typically creates large batches of standardized products used by plumbers, such as pipefittings and valves that must be produced in standard sizes. A continuous production process would work well for B&B.

A) True
B) False

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________ is a set of international standards for quality management and quality assurance.


A) EPA 2001
B) ISO 14001
C) ISO 9001
D) TQM 2013/2014

E) A) and D)
F) None of the above

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Manufacturing firms that want to minimize time-to-market are likely to choose facility sites that give them easy access to their preferred modes of transportation.

A) True
B) False

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________ is the creation of goods and services using land, labor, capital, entrepreneurship, and knowledge.


A) Resource recombination
B) Supply chain management
C) Production
D) Purchasing

E) A) and D)
F) B) and C)

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________ is the process of selecting a geographic location for a company's operations.


A) Facility location
B) Facility layout
C) FRP
D) Geographic requirements planning

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

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One of the best ways to maintain consistently high quality in the production process is to give a group of specialists in a separate quality control department the authority to inspect each product at the end of the production process.

A) True
B) False

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General Automotive currently uses an ERP system to manage all of its production operations and coordinate them with the other operations of the company. The company also wants to implement a just-in-time (JIT) inventory system. Unfortunately for General Automotive, ERP is incompatible with JIT, so if it adopts the new inventory system it will have to abandon ERP.

A) True
B) False

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The end result of PERT analysis is an estimate of the total cost of completing a project.

A) True
B) False

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Currently, manufacturing accounts for only around 70% of U.S. GDP.

A) True
B) False

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Trey is a manager at Plastics Plus, a manufacturing firm in Arkansas. His responsibilities include production scheduling as well as keeping tabs on the company's inventory. These duties suggest that Trey is involved in promotions management.

A) True
B) False

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An important strategy in operations management is using technology to anticipate customer needs.

A) True
B) False

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According to the box titled "Should We Stay or Should We Go?," federal law states, a firm must give employees 60 days' notice of a facility or plant closing.

A) True
B) False

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Evidence suggests that U.S. manufacturing firms can no longer compete against the best firms in the rest of the world.

A) True
B) False

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The basic reason the term operations management is favored over the term production management is that


A) the U.S. economy has moved toward a more socialist approach with government controlling a greater share of the production process.
B) a much larger share of total output is being produced by nonprofit organizations.
C) the United States is now largely driven by services rather than manufacturing.
D) the United States now exports more than it imports.

E) A) and D)
F) A) and C)

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