"Quality is defined by the customer" is
1.An unrealistic definition of quality
2.A user-based definition of quality
3.A manufacturing-based definition of quality
4.A product-based definition of quality
4.Centralized decision making authority
1.A perpetual inventory system.
2.A continuous inventory system.
3.A fixed period system.
4.A fixed quantity system.
2.Reorder point system.
A _______ is an organized collection of comprehensive information about individual customers or prospects.
3.Customer mailing list
2.The number of units on hand.
4.Annual dollar volume.
1.Quality is the degree of excellence at an acceptable price and the control of variability at an
3.Quality depends on how well the product fits patterns of consumer preferences
4.Even though quality cannot be defined, you know what it is
1.Customer dissatisfaction costs
3.Warranty and service costs
1.Efficient store assortments.
2.Revision of organization processes supported by information systems.
4.Integrate this activity into all supply chain planning.
2.Efficient store assortments..
3.Revision of organization processes supported by information systems.
4.Integrate this activity into all supply chain planning.
An organisation's supply chain can be viewed from a system's perspective that starts with the acquisition of resources which are then transformed into products or services. Simply, put the sequence is represented:
1.Inputs - process - outputs
2.Sourcing - input - process - outputs
3.Process - inputs - outputs
4.Inputs - outputs - process
2.Are slow moving and have high demand variability
3.Have low demand variability
4.Have high demand variability
Companies can build interest and enthusiasm by using databases to remember customer preferences. This strategy helps to _________
1.Deepen customer loyalty
2.Reactivate dormant customers
3.Avoid serious customer mistakes
Customer churn refers to _____
1.Provides a measure of inventory turnover.
2.Assumes that all inventory records must be verified with the same frequency.
3.Cannot be done in an independent demand situation.
4.Is a process by which inventory records are verified.
Cycle inventory helps in
1.Taking care of any special event that does not occur on a regular basis
2.Taking care of uncertainty in demand and supply of products/components
3.Finding out the amount of stock required during a finite period in order to move the materials from one location to another
4.Taking advantage of economies of scale and reducing cost within the supply chain
1.Customers who need to be encouraged to buy more frequently
2.Customers who buy frequently and in substantial amounts
3.Customers who buy frequently but in small amounts
4.Customers who buy infrequently in large amounts
Higher demand uncertainty provides higher savings by pooling which of the following inventory?
Higher number of stock points required for risk pooling results in higher savings in terms of
1.Cannot be determined.
2.Have no impact on the cost of the inventory policy.
3.Increase the cost of the inventory policy.
4.Reduce the cost of the inventory policy.
3.Costs of dissatisfaction
Inventory carried for the purpose of providing flexibility to each decision-making unit to'manage its operations independently is known as
2.Increasing stockroom accessibility.
IS can be used to reduce cycle time by:
1.Improved data integration between elements of the supply chain.
2.Increased efficiency of individual processes.
3.Reduced cost through outsourcing.
4.Reduced complexity of the supply chain.
4.Procedures to manage quality
1.Having the resources to manage and train employees effectively
2.Not all customers want a relationship with the company
3.The expense of building and maintaining a customer database
4.All of the above
One use of inventory is
1.To ensure that item cost is maximized.
2.To tightly link production and distribution processes.
3.To provide a hedge against inflation.
4.To tightly link a firm's production with its customers' demand.
1.More in inventory security for C items.
2.More in supplier development for A items.
3.The most time and effort verifying the accuracy of records for B items.
4.Extra care in forecasting for C items.
The 'value chain' idea is a concept that has been well established for the past three decades and it refers to considering key activities that an organization can conduct to add value for the customer. It traditionally distinguished between primary activities and support activities. Why is this concept regarded as outdated with the development of e-business?
1.There is a clear distinction between primary and support activities
2.The support activities offer far more than just support
3.Support activities have been subsumed under primary activities
4.The concept still holds and does not need revision
The 20-80 rule states ______
1.The top 80 percent of customers generate 20 percent of the company's profits
2.The bottom 80 percent of customers generate 80 percent of the company's profits while the bottom 20 percent of customers generate 20 percent of the profits
3.The top 20 percent of customers generate 80 percent of the company's profits
4.The bottom 20 percent of customers generate 80 percent of the company's profits
1.Minimizing expected stockout cost.
2.Taking the square root of the economic order quantity.
3.Choosing the level of safety stock that assures a given service level.
4.Carrying sufficient safety stock so as to eliminate all stockouts.
The best strategy of minimizing the amount of safety inventory to be kept in a store without hurting the level of customer service is
1.Minimizing the uncertainty inherent in supply
2.Minimizing the cycle service level
3.Reducing the supply lead time
4.Minimizing the uncertainty inherent in demand
The difference(s) between the basic EOQ model and the production order quantity model is (are) that
1.The production order quantity model does not require the assumption of known, constant demand.
2.There are no holding costs in the production order quantity model.
3.The production order quantity model does not require the assumption of instantaneous delivery.
4.The eoq model does not require the assumption of known, constant lead time.
The two most important inventory-based questions answered by the typical inventory model are
1.When to place an order and what is the cost of the order.
2.When to place an order and how many of an item to order.
3.How many of an item to order and with whom the order should be placed.
4.How many of an item to order and what is the cost of this order.
Through _________ marketing statisticians can extract useful information about individuals, trends, and segments from the mass of data.
Total Quality Management emphasizes
1.The responsibility of the Quality Control staff to identify and solve all quality-related problems
2.A commitment to quality that goes beyond internal company issues to suppliers and customers
3.A system where strong managers are the only decision makers
4.A process where mostly statisticians get involved
TQM refers to _________
1.Total quantity management
2.Total quality management
3.Total quality marketing
4.Total quotient management
Using digital communication to improve supply chain efficiency is dependent on effective exchange and sharing of information. The challenges of achieving standardized data formats and data exchange have given rise to the study of the optimisation of the:
1.Information supply chain
What does the following definition refer to: an organisation which uses communications technology to allow it to operate without clearly define physical boundaries between different functions?
2.9 to 5 scheduling
3.Alternative workplaces (telecommuting, shared offices, etc)
4.Automation of manual work
Which of the following is not one of the major categories of costs associated with quality?
4.None of the above, they are all major categories of costs associated with quality
1.It is a prerequisite for ISO 9000 certification
2.It indicates a higher level of adherence to standards than ISO 9000
3.It is only sought by companies exporting their goods
4.It deals with environmental management
1.On the job training
4.Predetermined motion-time data systems
______ is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives.
4.Customer perceived value
________ is a company's ability to perform in one or more ways that competitors cannot or will not match.
2.Customer relationship advantage
3.Customer lifetime value
_________ is when a company works continuously with its large customers to help improve their'performance.
_________ offers the opportunity to buy direct from the supplier with reduced costs and shorter cycle.