4.02 Key Terms

Question 1

bottom line

Answer 1

A business’s net income; the decisive point

Question 2

holding cost

Answer 2

The money it takes to keep inventory in stock

Question 3

inputs

Answer 3

resources

Question 4

inventory

Answer 4

All the stock that a business has on hand

Question 5

inventory control

Answer 5

Tracking the amount, the kind, and the value of inventory that a business has on hand

Question 6

logistics

Answer 6

Refers to managing the flow of goods and services from production to consumption

Question 7

operations

Answer 7

The day-to-day activities for continued business functioning

Question 8

outputs

Answer 8

In the operations function, goods, or services

Question 9

purchasing

Answer 9

The buying of goods and services for a business

Question 10

quality control

Answer 10

Ensuring the degree of excellence of a good or service

Question 11

routing

Answer 11

The production activity that determines the sequence of the steps in the production process

Question 12

scheduling

Answer 12

The production activity that establishes the timetable to be followed in production

Question 13

timing

Answer 13

In the production process, determining when materials will arrive at a certain destination and how long they will stay there