1. There is ________ involved in purchasing materials without specific contracts in place.
A. more cost B. Long term value C. Little value D. Risk
2. The bidding process offers a chance to strategically analyze jobs to determine if they
A. are a good fit B. are increasing market shares
C. are within production capacity
D. will provide a profit margin
3. Competing and earning multiple production bids can
A. give a production business and edge over their competitors B. be more than production can handle
C. require additional staff D. be a good way to ensure full production
4. What is one factor that a supplier can vary to attempt to earn an order from a potential customer?
A. Special services (e.g., packaging)
B. Customer support C. Cost D. Customization
5. What is one way a business can gain a better understanding of products customers will likely be asking for
A. Customer feedback B. Market Research
C. Focus Groups D. Historical sales data
6. When is it appropriate for the firm to look to the market when developing its strategy?
A. To identify unfilled niches in the market
B. to develop unique products not presented in the market
C. When labor costs are high D. When material costs are high
7. Unallocated supplies can be used to
A. bid on jobs that will keep the production within the optimum operating levels
B. bid on jobs that will use these materials and help reduce inventory
C. sell to a secondary market for a profit
D. returned to the supplier for a credit
8. What is the main difference between "make to order" and "make to stock"?
A. "Make to stock" systems are better because it is safer to have inventory on hand
B. Production is started when order is received in "make to order", rather than before in " make to stock systems
C. There is no difference
D. Production is started when the order is received in "make to stock" systems rather than before in "make to order" systems
9. Specialization can help a production company to
A. focus on fewer products
B. simplify production
C. limit inventory product range.
D. All of the above
10. What is one of the key factors that determines the attractiveness of a prospective work order?
A. Competiveness B. Reputation C. Profitability
D. Staffing