4.02 BE Smooth Operations

The operations function consists mainly of activities that are performed on a __________ basis.

• yearly

• monthly

• weekly

• daily

Which of the following is an example of one of a business’s inputs:

• Employees

• Products

• Services

• Goods

Operations managers have two main goals in mind—efficiency (keeping costs low) and

• productivity (keeping business running fast).

• effectiveness (keeping customers satisfied).

• reputation (keeping up the business’s good name).

• legality (keeping the business in good standing with the law).

The foundation of the operations function is

• production planning.

• maintenance and repairs.

• purchasing.

• quality control.

Which of the following is not a main factor in a business’s site selection decision:

• Labor

• Costs

• Media

• Community

Which operations activity is also referred to as procurement?

• Quality control

• Inventory control

• Purchasing

• Logistics

A clothing manufacturer checks one pair of pants out of every shipment to ensure the quality of its product. This process is known as quality

• assurance.

• guarantee.

• delivery.

• inspection.

A clothing manufacturer builds quality into its operating system, placing responsibility on each employee. This process is known as quality

• inspection.

• assurance.

• guarantee.

• delivery.

The money it takes to keep inventory in stock is called a __________ cost.

• holding

• stockout

• purchasing

• production

Running out of inventory can result in

• higher productivity.

• higher taxes.

• lost sales.

• more satisfied customers.