bike simulation

Question 1

product design

Answer 1

product design: creating a product customers will want to buy

Question 2

quality function deployment

Answer 2

method that uses customer wants and needs to help bring produced to the market
1. research
2. product design
3. engineering
4. manufacturing
5. sale and distribution

Question 3

positive vs. negative correlations

Answer 3

positive: which features add to product satisfaction
negative: which features take away from product satisfaction

Question 4

goal of production scheduling

Answer 4

produce enough units in the factor to satisfy the demand created by the marketing department

no stockout, ending inventory, and excess operating capacity

Question 5

fixed capacity

Answer 5

maximum number of units the factor can produce in a work day; determined by size of factory

Question 6

operating capacity

Answer 6

number of units to produce each day to meet projected demand
- upper limit is fixed capacity
- portion of fixed capacity you actually use in production
- how you set op capacity determines number of factory workers to hire and how fast to run production line

Question 7

maximum inventory

Answer 7

upper limit of units to leave on the shelf at end of quarter, keep inventory levels controlled and consistent with demand

Question 8

stockout

Answer 8

operating capacity too low, unhappy customerse

Question 9

excess inventory

Answer 9

operating cap too high, unsold units don’t bring any revenue to offset production costs

Question 10

excess operating capacity costs

Answer 10

if op capacity is too high and factory manager must stop production line completely, must still pay costs of factory maintenance and factory workers wages while production idle is idle
- increase production costs, hurt bottom line

Question 11

demand curve

Answer 11

higher the price the lower the quantity demanded

Question 12

pricing survey

Answer 12

best way to estimate demand curve is to split survey audience into different groups, ask each group if they’re willing to purchase at given price and how much

Question 13

demand schedule

Answer 13

table that shows quantity demanded of good/service at diff price levels

Question 14

factors of cost

Answer 14

supply cost, production overhead, labor cost, marketing cost

Question 15

accounting transaction

Answer 15

any business activity that affects assets, liabilities, equity

Question 16

double entry accounting

Answer 16

two diff entries in accounting book to keep equation booked

Question 17

profitability analysis

Answer 17

process to help you determine if your business or element of your business is profitable

Question 18

cost object

Answer 18

a cost being tied to an element of your business, departments, products, geographical regions

Question 19

costs linked to bikes

Answer 19

Rebates
Cost of goods sold
R&D to design products
Advertising
Point of Purchase Display

Question 20

costs linked to regions

Answer 20

Rebates
Costs of goods sold
Marketing research
Sales force expenses
Sales office lease
Advertising
Point of purchase

Question 21

product profitability statement

Answer 21

costs associated with product, shows profitability of product, can be compared to other products

Question 22

regional profitability statement

Answer 22

costs associated with region, shows profitability of region and can be compared to other regions