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Strayer Bus402 Week 9 quiz 9




Question;Question 1The heart of TQM is:Answermanagement competence.customer satisfaction.continual improvement.knowing your competition.2 points Question 2The implementation of TQM can not succeed unless:Answerthe company is willing to undergo immediate radical transformation of all of its processes.the company has extensive market research on its markets, competitors, and is fully supported by upper management and has the involvement of the CEO.the lowest level of employees is willing to implement the program from the very beginning.2 points Question 3When shopping for a vendor, a small business owner should seek:Answerthe best transfer of risk possible.the lowest price.the best price at acceptable change vendors often in order to get the lowest price.2 points Question 4The reorder point model requires that the small business owner know:Answerthe usage rate, the minimum level of stock, the lead time, and the EOQ.who the supplier is, statistical process controls, and TQM.the demand pattern for the product, reliability and proximity of the supplier, and who has title.holding costs for the product, the usage rate, and the three "Cs" of the product.2 points Question 5The small business gains what advantage by selling on consignment?AnswerShorter lead time when reordering than with standard contractsBetter customer serviceNot bearing the risk of loss for the consigned goodsReceiving absolute title to the goods prior to paying for them2 points Question 6A key element to Deming's 14 Points is:Answerordering on the basis of price.changing suppliers frequently.conducting frequent quality inspections.developing long-term relationships with vendors.2 points Question 7Total Quality Management (TQM):Answerdefines world-class quality as 95% defect-free products and services.has been implemented by about 90% of all American manufacturers and is now moving into the service industry.relies on an army of quality inspectors to ensure that products and services meet quality a lifelong process of continuous improvement that focuses on doing the job right the first time.2 points Question 8The primary objective of the purchasing function is to:Answerensure an adequate turnover of merchandise.acquire enough stock to ensure uninterrupted sales or production.determine the "best" possible price for both supplies and finished products.maximize carrying and set-up costs for the firm.2 points Question 9Small business people need to remember that:Answerthere is an implicit cost of forgoing a cash discount.they should avoid cash forgoing cash discounts they have more money for daily discounts have hidden annual interest rates.2 points Question 10Holding or carrying costs include the costs of:Answerordering materials and inventory.receiving and inspecting items and all administrative, taxes, depreciation, etc.processing a purchase order.2 points Question 11A danger of an excessive investment in inventory for the small business is:Answerexcessive inventory taxes by local and state government.minimizing reordering costs.creating too quick a turnover of inventory.tying up an excessive amount of the firm's capital.2 points Question 12Many small businesses build a(n) ________, or cushion, into their inventories in case demand runs ahead of the anticipated usage rate.Answersafety stocklead timeEOQstockout point2 points Question 13The basic reorder point model assumes that:Answerthe firm's inventory usage rate is constant.the lead time stock is set at 5%.the demand pattern is constant.2 points Question 14"F.O.B. seller" means that:Answertitle passes to the buyer when the seller delivers the goods to the buyer.risk of loss transfers to the buyer when the seller delivers the goods to the carrier.the seller pays all shipping and transportation costs.the buyer has both title and risk of loss as soon as the goods are paid for, regardless of their physical location.2 points Question 15________ is the right to ownership of property and, for a small business owner, determines who has responsibility for ownership.AnswerIdentificationRisk of lossConcept of titleF.O.B.2 points Question 16Store owners and employees may apprehend and charge a shoplifter:Answermerely on the suspicion that they have stolen something.if the individual puts something in their bag or pocket without paying for it but hasn't left the store.only if the theft amounts to more than $25.only if they see the theft and can prove the merchandise belongs to the store and wasn't paid for.2 points Question 17A physical inventory count should be taken at least:Answeronce a week.once a year.every six months.daily.2 points Question 18Combining ________ with a POS system gives a small business owner a state-of-the-art checkout system and further extends the abilities of the POS system in the information it provides the owner.AnswerTQMan EDI systemuniversal product code labels and scannersan ABC system2 points Question 19A form of inventory management used in manufacturing that stresses a harmonious relationship with suppliers is:AnswerCRM.TQM.Efficient Consumer Response.JIT II.2 points Question 20A retail version of Just-In-Time inventory control is called:AnswerEDITQM.Efficient Consumer Response.JIT II.2 points Question 21The inventory turnover ratio is computed by:Answerdividing the firm's cost of goods sold by its average inventory.dividing average inventory by firm's cost of goods sold.dividing the firm's revenue by its average inventory.dividing all costs by its average inventory.2 points Question 22"C" items, in an ABC analysis:Answerare those items that account for a moderate dollar usage volume.are those that are low-cost and high-volume by not require detailed record keeping or inventory control.should be tracked with analytical tools and frequent counts.2 points Question 23A firm's ________ expresses the number of times per year the business sells all of its inventory.Answerliquidity ratioinventory turnover ratiooperating ratioquick ratio2 points Question 24The most common method of controlling inventory in a small business is the ________ system.Answerfloor sampletwo-bin systempartialvisual2 points Question 25"Just-In-Time" inventory control techniques are most successful in what type of environment?AnswerRepetitive manufacturing operations where inventory levels are significant at the outsetWhere product requirements are customized for each customerWhere a company changes suppliers regularly and those suppliers are independent of the manufacturerWhere inventory levels have been reduced to safety stock levels2 points Question 26________ system enables business owners to track their inventories and to place orders with vendors quickly and with few errors by linking them to their vendors electronically.AnswerElectronic Data Processing (EDP)Electronic Fund Processing (EFP)Electronic Data Interchange (EDI)Enterprise Resource Planning (ERP)2 points Question 27Effective management of inventory begins with:Answerdeveloping an accurate sales forecast.setting realistic inventory turnover objectives.determining what level of safety stock to maintain.establishing purchasing procedures.2 points Question 28Employers can reduce employee theft through:Answercareful screening of employees during hiring.only hiring relatives and the friends of current employees.the use of metal detectors and random strip searches of employees.searching employees' lockers and cars during work hours.2 points Question 29For most retailers and wholesalers, the investment in ________ is the largest capital outlay next to payroll.Answeroffice equipment, computers, etc.vehicles, automobiles and trucksinventorytaxes and licensing fees2 points Question 30The purpose of ABC inventory analysis is:Answerto help retail stores control their inventories to prevent shoplifting and employee save time by only inventorying those items that produce the majority of a firm's focus inventory control efforts on items that account for the majority of sales.a system to facilitate the computerization of a firm's perpetual inventory system.


Paper#54142 | Written in 18-Jul-2015

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