1. Location decision for profit oriented service firms
A. affects only the costs,
B. affects only the revenues,
C. affects both costs and revenues
D. is same as it is for manufacturing firms in that any firm needs to have same hierarchical organizational structure to achieve effectiveness.
2. Factor rating method used in location decisions refers to
A. factoring accounts receivables so as to improve cash position (resulting in low location costs)
B. reducing bank borrowing by factoring accounts receivables to decrease interest expenses
C. a numerical method which is used to evaluate the suitability of different locations taking into consideration various factors used in the evaluation
D. a rating method which determines the suitability of various locations by zip codes
3. MRP is a technique designed to manage
A. Accounts receivable
B. dependent demand items
C. critical paths
D. finite capacity
E. None of the above
4. Sales and operations planning is a technique used to balance the supply and demand of
A. dependent demand items
B. ordering and holding costs
C. items at the aggregate level
D. MRO items
E. None of the above
5. If you are a Quality Manager which of the following would you prefer the most?
A. The specification limits are at ± 3s for the process
B. The specification limits are outside ± 3s for the process
C. The specification limits are inside ± 3s for the process
D. Process mean equaling six times specification coefficient of variation
E. None of the above
6. A firm should be willing to consider outsourcing everything except
A. its logistics services
B. human resource activities
C. its core competencies
D. manufacturing
E. None of the above
7. Total Quality Management (TQM) means that quality is the responsibility of
A. top management
B. everyone in the firm
C. the quality control (QC) department
D. marketing
E. None of the above