Smooth Operations LAP Test

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

• 1. daily

• 1. weekly

• 1. monthly

• 1. yearly

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

• 1. Products

• 1. Employees

• 1. Services

• 1. Goods

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

• 1. productivity (keeping business running fast).

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

• 1. effectiveness (keeping customers satisfied).

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

1. The foundation of the operations function is

• 1. quality control.

• 1. purchasing.

• 1. maintenance and repairs.

• 1. production planning.

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

• 1. Costs

• 1. Labor

• 1. Community

• 1. Media

1. Which operations activity is also referred to as procurement?

• 1. Quality control

• 1. Logistics

• 1. Purchasing

• 1. Inventory control

1. 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

• 1. assurance.

• 1. inspection.

• 1. guarantee.

• 1. delivery.

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

• 1. assurance.

• 1. inspection.

• 1. guarantee.

• 1. delivery.

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

• 1. holding

• 1. stockout

• 1. purchasing

• 1. production

1. Running out of inventory can result in

• 1. higher taxes.

• 1. lost sales.

• 1. higher productivity.

• 1. more satisfied customers.