TRUE/FALSE_____1. Because 'courtesy' is subjective, it can't be considered a factor in service quality.?_____2. Medical malpractice claims are an example of how poor quality can affect an organization through liability.?_____3. The primary difference between internal failures and external failures is time and place of discovery of the failure._____4. Deming stresses that workers are primarily responsible for poor quality because very often they fail to follow instructions._____5. Firms that wish to do business with the European Community can benefit from having a quality management system that meets ISO 9000 standards._____6. Six sigma programs have both management and technical components._____7. The importance of purchasing is the cost of goods purchased, the quality of goods and services, and the timing of deliveries of goods or services._____8. Returned goods are part of reverse logistics._____9. Global supply chains make purchasing easier because of more options._____10. The materials in the supply chain flow toward the end of the chain, while the information and the dollars move toward the beginning of the chain._____11. Every business organization is part of at least one supply chain._____12. The overall objective of inventory management is to achieve satisfactory levels of customer service while keeping inventory costs reasonable._____13. To provide satisfactory levels of customer service while keeping inventory costs within reasonable bounds, two fundamental decisions must be made aboutinventory: the timing and size of orders._____14. The average inventory level and the number of orders per year are inversely related: As one increases, the other decreases._____15. Using the EOQ model, the higher an item's carrying costs, the more frequently it will be ordered._____16. Lower inventory levels might expose quality problems._____17. Demand can be altered in aggregate planning by promotion and producing additional product using overtime._____18. Aggregate planning is used to establish general levels of employment, output, and inventories over an intermediate-range of time._____19. An advantage of a "chase" strategy for aggregate planning is that inventories can be kept relatively low._____20. Seasonality in demand has the advantage of leveling out requirements for our product or service._____21. A benefit of the lean philosophy is the flexibility to respond quickly to changing customer requirements._____22. In a lean environment, anything not essential to the product or process is viewed as waste._____23. The four building blocks of lean operations are: product design, process design, personnel/organizational elements, and manufacturing planning andcontrol._____24. The goal of lean operations is to produce output using fewer resources than traditional planning systems._____25. The network diagram describes sequential relationships among major activities on a project. ?MULTIPLE CHOICE26. The process of identifying other organizations that are best at some facet of your operations, and then modeling your organization after them is known as: ?A.continuous improvement?B. employee empowerment?C. competitive benchmarking?D. copycatting?E. industrial espionage27. Giving workers responsibility for quality improvements and authority to make changes is known as: ?A. continuous improvement?B. passing the buck?C. benchmarking?D.employee empowerment?E. employee involvement28. Managers have obligations to a wide variety of stakeholders such as shareholders, employees and customers. When considering outsourcing production to offshoresuppliers, managers have to weigh ___. ?I) Cost benefits that might make shareholders wealthier?II) Quality issues that might make firms less productive and/orproducts riskier?III) The investments already tied up in relationships with existing suppliers ?A. I?B. II?C. III?D. I and II only?E. I, II and III29. Which of the following is an element of TQM? ?A. continual improvement?B. competitive benchmarking?C. operations Manager empowerment?D. team approach?E. all of theabove30. Warranty service, processing of complaints, and costs of litigation are examples of ___. ?A. internal failure costs?B. external failure costs?C. appraisal costs?D.prevention costs?E. replacement costs31. Real time information about product movement on store shelves could benefit from the use of: ?A. batch processing?B. economic order quantities?C. statisticalprocess control?D. radio frequency identification tags?E. infrared remote scanners32. Which of the following is a principle required for ethical behavior in purchasing? ?A. loyalty to employer.?B. justice to those you deal with.?C. faith in yourprofession.?D. all of the above.?E. none of the above.33. Which of the following is not a key consideration when a company chooses a supplier? ?A. lead time and on-time delivery?B. reputation and financial stability?C.value analysis?D. quality and Quality assurance?E. flexibility of design change34. A factor that makes it desirable for business organizations to actively manage their supply chains is: ?A. more potential vendors?B. increasing globalization?C.downsizing?D. the internet?E. RFID's35. Logistics includes all of these except: ?A. the movement of materials within a production facility?B. incoming shipments of goods or materials?C. outgoingshipments of goods or materials?D. customer selection?E. returned goods processing36. Dairy items, fresh fruit and newspapers are items that: ?A. do not require safety stocks?B. cannot be ordered in large quantities?C. are subject to deteriorationand spoilage?D. require that prices be lowered every two days?E. have minimal holding costs37. A cycle count program will usually require that ‘A' items be counted: ?A. daily.?B. once a week?C. monthly?D. quarterly?E. more frequently than annually38. In the basic EOQ model, if D = 60 per month, S = $12, and H = $10 per unit per month, EOQ is: ?A. 10?B. 12?C. 24?D. 72?E. 14439. If average demand for an inventory item is 200 units per day, lead time is three days, and safety stock is 100 units, the reorder point is: ?A. 100 units?B. 200units?C. 300 units?D. 600 units?E. 700 units40. In the lean philosophy, the ideal lot size is: ?A. the economic order quantity?B. the economic run size?C. one unit?D. the capacity of the standard container?E.N=(DT(1+X))/C41. A potential obstacle to conversion to a lean system is: ?A. lack of management commitment?B. lack of worker cooperation?C. supplier resistance?D. all of theabove?E. insufficient space to store the increased inventories42. With regard to suppliers, lean systems typically involve: ?A. delivery of large lots on short notice?B. the highest quality at the lowest price?C. long-termrelationships?D. multiple suppliers to assure continuous availability?E. dedicated staging areas for material43. A hierarchical listing of what must be done in a project is called: ?A. work breakdown structure (WBS)?B. PERT?C. planning matrix?D. crashing?E. criticalpath44. The project management strategy of injecting additional resources in order to reduce the length of the project is called: ?A. expediting?B. rushing?C. panicking?D.crashing?E. loading45. Project management differs from management of more traditional activities mainly because of: ?A. its limited time frame?B. its unique, defined set of activities?C.(a) and (b)?D. the requirement for use of the appropriate resources?E. the need for planning and execution