BUS 3500 MIDTERM EXAM

Topics: Management, Supply chain management, Six Sigma Pages: 12 (2219 words) Published: October 25, 2014
Production and Operations BUS 3500 Midterm Examination
Total: 120 points Your Score: ______________ Student: __________________________________________________________________________________ I. True or False (20 points). Please mark “A” for true and “B” for false on your scantrons. Questions 11-20 have been taken from Test 1. 1. In a process map, a circle represents a step or activity in the process. Answer: FALSE

Diff: 1 Page Ref: 77
Reference: Mapping Business Processes
Keywords: map, process, symbol, circle

2. The primary focus of a swim lane process map is to depict flows of objects, information, and money. Answer: FALSE
Diff: 1 Page Ref: 80
Reference: Mapping Business Processes
Keywords: swim lane map, process map, flow

3. Your university sends a contingent of top-ranking officials to Las Vegas hotels to study ways to improve dormitory living conditions. This is an example of process benchmarking. Answer: TRUE
Diff: 2 Page Ref: 85
Reference: Managing and Improving Business Processes
Skill: AACSB: Reflective Thinking
Keywords: process, benchmarking

4. An R chart is used to track how much the individual observations within a sample vary. Answer: TRUE
Diff: 1 Page Ref: 121
Reference: Statistical Quality Control
Keywords: R chart, sample, vary

5. Appraisal costs can occur when a company has NOT produced any defective items. Answer: TRUE
Diff: 1 Page Ref: 111
Reference: Total Cost of Quality
Keywords: appraisal, cost, quality

6. Money spent training an employee how to do the job mistake-free is an example of an appraisal cost. Answer: FALSE
Diff: 2 Page Ref: 111
Reference: Total Cost of Quality
Skill: AACSB: Reflective Thinking
Keywords: prevention, cost, quality

7. Company A spends $250 million purchasing materials and subassemblies that it processes and sells for a total of $350 million. The cost of goods sold by Company A is $350 million. Answer: FALSE

Diff: 1 Page Ref: 194
Reference: Why Supply Management is Critical
Keywords: CGS, cost of goods sold

8. The ratio of earnings to sales for a given time period is a firm's profit margin. Answer: TRUE
Diff: 1 Page Ref: 194
Reference: Why Supply Management is Critical
Keywords: profit, profit margin

9. The first step of the purchasing process is to select the supplier. Answer: FALSE
Diff: 2 Page Ref: 196
Reference: The Strategic Sourcing Process
Keywords: needs identification, supplier selection

10. Outsourcing can be risky because it decreases the firm's strategic flexibility. Answer: FALSE
Diff: 2 Page Ref: 200
Reference: The Strategic Sourcing Process
Keywords: outsourcing, insourcing, flexibility

11.Most organizations function as part of a larger supply chain. Answer: TRUE
Diff: 1 Page Ref: 3
Reference: Why Study Operations and Supply Chain Management? Keywords: organization, supply, chain, supply chain

12.A second-tier supplier is downstream from a first-tier supplier in the supply chain. Answer: FALSE
Diff: 2 Page Ref: 6
Reference: Why Study Operations and Supply Chain Management? Keywords: downstream, supply, chain, tier

13.The association for operations management is AOM.
Answer: FALSE
Diff: 2 Page Ref: 11
Reference: Operations and Supply Chain Management and You
Keywords: APICS

14.A business is defined by its structural and infrastructural elements. Answer: TRUE
Diff: 1 Page Ref: 20
Reference: Elements of the Business
Keywords: structural, infrastructural, element

15."I've never seen flavored marshmallows this size before!" Alice squealed as she emptied the shelves at the local grocery store. The rest of the shoppers would have to make do with the other seventy bags of miniature and standard-size marshmallows during this winter's hot chocolate festival. For Alice, the jumbo...
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