FINALS (QUIZ) 2 Flashcards
Broadly defined, quality refers to the ability of a product or service to occasionally meet or exceed customer expectations
(True or false)
False
Regardless of superior quality, consumers will not pay premium prices
(True or false)
False
Largest of all inventory cost
Purchase cost
In an A-B-C system, the typical percentage of the number of items in inventory that is classified as A items is about?
10
The EOQ model is most relevant for which one of the following?
determining fixed order quantities
In the A-B-C classification system, items which account for about 15 percent of the annual dollar value, but which account for a majority of the inventory items, would be classified as?
C items
In a supermarket, a vendor’s restocking the shelves every Monday morning is an example of?
Fixed order interval
A cycle count program will usually require that Class A items be counted?
more often than annually
Quality of design refers to the intention of the designers to include or exclude certain features in a product or service based on marketing and other information.
(True or false)
True
In market research, a group of consumers organized by marketing to express their opinions about a product or service is called a steering committee.
(True or false)
False (Because the correct term is focus group, not steering committee.)
Reducing variability in our product or service is an important key to quality
(True or false)
True
Deming stresses that workers are primarily responsible for poor quality because very
often they fail to follow instructions.
(True or false)
False (Because Deming believed management and systems, not workers, are mostly responsible for poor quality.)
Decoupling operations means to break the linkage between two sequential operations.
(True or false)
False
Interest, insurance, and opportunity costs are all associated with holding costs.
(True or false)
True
The A-B-C approach involves classifying inventory items based on their name.
(True or false)
False (Because the A-B-C approach is based on value, not the item name)
EOQ inventory models are basically concerned with the timing of orders.
(True or false)
False (Because EOQ is about quantity, not timing.)
The average inventory level and the number of orders per year are inversely related: As one increases, the other decreases.
(True or false)
True
Which item would be least likely to be ordered under a fixed-order-interval system?
auto parts at an assembly plant
