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Bryant is an outdoorsman. Inspired by his love of hunting and fishing, he started an online company specializing in his favorite hunting and fishing gear. He decided to locate his business near Kentucky Lake, partly because of low labor costs, but mainly because the area offered excellent fishing and hunting opportunities, a low crime rate, and a pleasant climate. Bryant's location decision was strongly influenced by quality of life considerations.

A) True
B) False

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In a PERT network, the sequence of tasks that takes the longest to complete is called the


A) optimal path.
B) maximum path.
C) straight path.
D) critical path.

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

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The Corporate Comfort Furniture Company mass manufactures first-rate desks and chairs for executive offices. But now, the company is about to make a radical change in its production process. Customers will be able to provide specific measurements, select from a variety of fabric patterns, and answer some basic questions about the furniture styles they like, then design a chair and desk that is ergonomically designed for maximum comfort for its users. The new method Corporate Comfort will use is an example of


A) just-in-time manufacturing.
B) analytic production.
C) mass customization.
D) individualized production.

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

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The ability to integrate computers into the design and manufacture of products has had the greatest impact on production techniques in recent years.

A) True
B) False

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The Deming Cycle approach to quality control consists of: Plan, Do, Check, Act.

A) True
B) False

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The advantage of computer-integrated manufacturing software is that it allows computer-aided design machines to communicate directly with computer-aided manufacturing machines.

A) True
B) False

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New developments in information technology have


A) had little effect on business location decisions.
B) given firms even greater flexibility in their location decisions.
C) caused a movement of firms back to urban areas where access to this technology is greatest.
D) reduced the impact government policies have on location decisions.

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

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To strengthen its manufacturing base in the future, U.S. will have to


A) uncover lower wage workers in the U.S. to compete with China.
B) continue to innovate.
C) support students in high school and college interested in studying the arts.
D) cut the amount of benefits offered to workers.

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

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Service businesses know that in order to delight customers they must be able to anticipate their needs.

A) True
B) False

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Manufacturing companies are concerned with production management, while service companies are concerned with operations management.

A) True
B) False

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Mass production techniques allowed firms to respond quickly to the individual needs of consumers.

A) True
B) False

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The main idea in the Making Ethical Decisions box "Do We Stay or Do We Go?" indicates


A) a need for firms to place a higher level of importance on time-to-market when choosing facilities locations.
B) that the goal of finding the lowest cost location should never be overshadowed by other concerns if the firm is to remain loyal to its stockholders.
C) that many locations do not meet ISO 14001 standards.
D) a need for firms to consider the economic impact of their existence and/or departure from a particular location.

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

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For most service businesses the quality standard has become


A) providing prompt and predictable service.
B) providing a competitive level of service at the lowest cost.
C) pleasing customers by anticipating their needs.
D) less important than it is for manufacturing businesses.

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

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Contemporary operations management planning is an interfirm process. An interfirm process is


A) a process that must integrate all of the functional units of a firm's operation, including production, marketing, finance, and logistics.
B) a process that uses a confidential plan, not shared with suppliers or customers, which stays within the firm.
C) a process where several firms work closely together to design, produce, and ship products to customers.
D) a process that seeks stability by adhering to top-down management.

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

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The Four Seasons hotel chain offers restaurants with the finest service, elevators that run smoothly, and a front desk that checks people in quickly. Many times fresh-cut flowers are in the lobbies and dishes of fruit are in each room. ________ is responsible for implementing these customer benefits.


A) Human resources management
B) The management staff
C) Operations management
D) Production management

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

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In the Adapting to Change box, we read that 3D printing can prove to be revolutionary for the medical industry because


A) it basically eliminates the need for human (doctor) intervention.
B) it saves on insurance costs.
C) it can produce models to help with organ transplants and improved medical imaging.
D) it creates images for a doctor without the need for the patient to show up to the examination.

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

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________ is a technique to analyze and sequence tasks involved in completing a project, to estimate the time needed to complete each task, and to determine the minimum amount of time needed to complete each project.


A) PERT
B) ECON
C) LIFO
D) GANTT

E) None of the above
F) All of the above

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How has the emphasis of quality control changed in recent years? Describe some of the modern quality control techniques that illustrate this change in emphasis.

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In the past, quality control primarily c...

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________ utility is the value added by the creation of finished goods and services using raw materials, components, and other inputs.


A) Manufacturing
B) Marginal
C) Consumption
D) Form

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

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The higher productivity of U.S. plants is due to technological improvements.

A) True
B) False

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