Q&A Hero

Q: Which choice best describes level scheduling? A) Daily production is variable from period to period. B) Subcontracting, hiring, and layoffs manipulate supply. C) Price points are calculated to match demand to capacity. D) Inventory goes up or down to buffer the difference between demand and production. E) Overtime is used to handle seasonal demand fluctuations.

Q: A promise that a product will perform at a certain level or meet certain standards

Q: Which of the following statements about aggregate planning is TRUE? A) An advantage of the counterseasonal product and service mixing option is that it matches seasonal fluctuations without hiring/training costs. B) In aggregate planning, back orders are a means of manipulating supply while part-time workers are a way of manipulating product or service demand. C) A pure chase strategy allows lower inventories when compared to a pure level scheduling. D) A disadvantage of subcontracting is that it may require skills or equipment outside the firm's areas of expertise. E) The option of varying workforce size by hiring or layoffs is used where the size of the labor pool is small.

Q: The exclusive right of a creator to reproduce, publish, perform, display, or sell his or her own works

Q: Which choice below best describes the counterseasonal product demand option? A) producing such products as lawnmowers and sunglasses during the winter B) developing a mix of products that smoothes out their demands C) lowering prices when demand is slack D) using subcontractors only when demand is excessive E) the breaking of the aggregate plan into finer levels of detail

Q: The way the product component of the marketing mix is used to achieve a firms objectives

Q: In aggregate planning, which one of the following is not a basic option for altering demand? A) promotion B) subcontracting C) back ordering D) pricing E) personal selling

Q: The sum of related individual product items

Q: Which of the following aggregate planning strategies is a demand option? A) changing price B) subcontracting C) varying production levels D) changing inventory levels E) using part-time workers

Q: A total bundle of satisfaction offered to consumers in an exchange transaction

Q: Which of the following aggregate planning options attempts to manipulate product or service demand? A) inventories B) part-time workers C) subcontracting D) overtime/idle time E) price cuts

Q: The collection of a firms total product lines

Q: Which of the following aggregate planning options is NOT associated with manipulation of product or service demand? A) price cuts or discounts B) promotion C) subcontracting D) counterseasonal products or services E) advertising

Q: Which of the following aggregate planning strategies is known to lower employee morale? A) yield management B) counterseasonal product and service mixing C) changing inventory levels D) varying work force size by hiring or layoffs E) back ordering during high demand periods

Q: A value-creating position that is likely to endure over time

Q: The system of relationships established to guide the movement of a product

Q: Which of these aggregate planning strategies is a capacity option? A) back ordering B) using part-time workers C) counterseasonal product mixing D) changing price E) promotion

Q: Which of the following aggregate planning strategies is a capacity option? A) influencing demand by changing price B) counterseasonal product mixing C) influencing demand by extending lead times D) changing inventory levels E) influencing demand by back ordering

Q: The similarity of product lines in a product mix

Q: In the service sector, which of the following aggregate planning strategies might direct your client to a competitor? A) using part-time workers B) subcontracting C) changing inventory level D) varying production rates through overtime or idle time E) varying work force size by hiring or layoffs

Q: The lowest common denominator in the product mix--the individual item

Q: Intermediaries that take ownership of the goods they distribute Match the term with its definition. a. Channel of distribution b. Copyright c. Patent d. Product e. Product item f. Product life cycle g. Product line h. Product mix i. Product mix consistency j. Product strategy k. Sustainable competitive advantage l. Warranty

Q: Which of these is among the demand options of aggregate planning? A) subcontracting B) back-ordering during high-demand periods C) changing inventory levels D) varying workforce size E) varying production rates through overtime or idle time

Q: Transportation intermediaries available for hire to the general public

Q: Dependence on an external source of supply is found in which of the following aggregate planning strategies? A) varying production rates through overtime or idle time B) subcontracting C) using part-time workers D) back ordering during high demand periods E) hiring and laying off

Q: Registered protection for any distinct, new variety of living plant

Q: Describe the difference between a fixed-quantity and a fixed-period inventory system?

Q: The physical movement of products and the establishment of intermediary relationships to support such movement

Q: What is a fixed-period system?

Q: A system of management that integrates and coordinates the ways in which a firm finds the raw materials to make a product, creates the product, delivers it to customers, and receives payment for it

Q: A(n) ________ system triggers inventory ordering on a uniform time frequency.

Q: Intermediaries that do not take ownership of the goods they distribute

Q: An advantage of the fixed-period inventory system is that: A) safety stock will be lower than it would be under a fixed-quantity inventory system. B) there is no physical count of inventory items when an item is withdrawn. C) no inventory records are required. D) orders usually are for smaller order quantities. E) the average inventory level is reduced.

Q: A company that provides transportation and distribution services to firms that prefer to focus their efforts on their primary operations

Q: Which of the following should be higher in P systems than Q systems? A) lead time B) demand C) order size D) order spacing E) safety stock

Q: A distribution system that involves more than one channel

Q: Q is to ________ systems as P is to ________ systems. A) fixed quantity, fixed period B) variable demand, constant demand C) variable lead time, variable demand D) variable quantity, variable period E) quality, price

Q: Lines of transport owned by shippers

Q: Which of the following is a requirement of Q systems? A) perpetual inventory system B) constant order spacing C) variable lead time D) constant demand E) all of the above

Q: Transportation intermediaries that contract with individual shippers

Q: What is the difference between P and Q inventory systems? A) order size B) order spacing C) maximum service level D) lead time length E) A and B

Q: The activities of distribution involved in the physical relocation of products

Q: A disadvantage of the fixed-period inventory system is that: A) it involves higher ordering costs than the fixed quantity inventory system. B) additional inventory records are required. C) the average inventory level is decreased. D) since there is no count of inventory during the review period, a stockout is possible. E) orders usually are for larger quantities.

Q: Franklin sells his product in a bricks-and-mortar store and online. Franklin is using: a. channel integration. b. dual distribution. c. intermediary replication. d. multiple distribution. Match the term with its definition. a. Agents/brokers b. Common carriers c. Contract carriers d. Distribution e. Dual distribution f. Merchant middlemen g. Patent h. Physical distribution (logistics) i. Plant patent j. Private carriers k. Supply chain management l. Third-party logistics firm

Q: The fixed-period inventory system requires more safety stock than a fixed-quantity system because: A) a stockout can occur during the review period as well as during the lead time. B) this model is used for products that have large standard deviations of demand. C) this model is used for products that require very high service levels. D) replenishment is not instantaneous. E) setup costs and holding costs are large.

Q: When Gavin sells his product to a ____, the storage function is transferred to the intermediary. a. agents b. brokers c. common carriers d. wholesalers

Q: The fixed-period inventory model can have a stockout during the review period as well as during the lead time, which is why fixed-period systems require more safety stock than fixed-quantity systems.

Q: High performing companies a. adjust strategies for changing customer needs before rivals. b. downgrade capabilities as competitive advantages move into the decline stage. c. hire people to drive new growth once the growth is identified. d. All of the above are completed by high performing firms.

Q: Judy is opening a small business producing high-quality paper products and has decided to place a green pine tree on all product boxes and on the sign outside the facilities to symbolize the business. At this point, the symbol is an example of a a. brandmark. b. brand name. c. service mark. d. trademark.

Q: A newspaper boy is trying to perfect his business in order to maximize the money he can save for a new car. Daily paper sales are normally distributed, with a mean of 100 and standard deviation of 10. He sells papers for $0.50 and pays $0.30 for them. Unsold papers are trashed with no salvage value. How many papers should he order each day and what % of the time will he experience a stockout? Are there any drawbacks to the order size proposed and how could the boy address such issues?

Q: When a product mix has more product lines, it is has greater a. breadth. b. consistency. c. depth. d. lines.

Q: Milk is stocked at the grocery store each week. At the end of the week unsold milk is reduced in price by 70% and always sells for this lower price instantly. If weekly demand for milk is normally distributed with a mean of 200 gallons and standard deviation of 25 gallons, find the price for which a fresh gallon of milk sells. Assume a service level of 95% and that the store purchases milk for $2 per gallon.

Q: Amazon.com is a a. brand. b. label. c. logo. d. trademark.

Q: Demand for gallons of milk (a perishable item) is normally distributed with a weekly mean of 50 and standard deviation of 15. How many additional gallons of milk must be stocked to increase the service level from 50% to 80%?

Q: A legal term indicating the exclusive right of a firm to use a brand to identify a product is a a. copy mark. b. trademark. c. service mark. d. trade dress.

Q: Consider a local club selling Christmas trees. If demand is normal with a mean of 200 and a standard deviation of 50, how many trees should the club stock if service level must be greater than 95%?

Q: Joe has redesigned an app that helps businesses organize their taxes after a rival gained market share. The IRS and the Society of Certified Public Accountants have said the app meets tax standards. The app would be considered a(n) a. sustainable competitive advantage. b. strategic alliance. c. competitive adjustment. d. business process reengineering.

Q: Consider a local club selling Christmas trees. If trees cost $15 and sell for $60 with no salvage value, what is the ideal service level? If salvage value is increased to $5, what is the change in service level?

Q: The intermediary relationship in which ownership is transferred is a. agents. b. brokers. c. merchant middlemen. d. supply chain managers.

Q: A bakery wants to determine how many trays of doughnuts it should prepare each day. Demand is normal with a mean of 5 trays and standard deviation of 1 tray. If the owner wants a service level of at least 95%, how many trays should he prepare (rounded to the nearest whole tray)? Assume doughnuts have no salvage value after the day is complete. A) 5 B) 4 C) 6 D) 7 E) unable to determine with the above information

Q: Intermediaries exist because a. they provide more efficient means of distrubtion than the product producer. b. they are able to reach geographic areas with much less expense. c. they have lower risk levels since they dont have ownership of the goods. d. they specialize in products for specific customer needs.

Q: Service level is: A) the probability of stocking out. B) the probability of not stocking out. C) something that should be minimized in retail. D) calculated as the cost of a shortage divided by (the cost of shortage + the cost of overage) for single-period models. E) B and D

Q: Euginie has written a poem that she plans to print inside the greeting cards she will publish. Her work is automatically protected but Euginie should include on the back of her greeting cards a. the symbol . b. the date the work was published. c. the name of the copyright owner's company. d. a listing of all other copyrights held by the owner.

Q: Suppose that papers for a newspaper stand cost $0.40 and sell for $0.80. They currently have no salvage value. If the stand owner is able to find an outlet that would provide a salvage value of $0.10, what would be the increase in service level? A) .5 B) 0 C) .07 D) 1 E) unable to determine given only the above information

Q: Beatrice is comtemplating whether to offer a warranty on her product. She should remember that warranties are important for products: a. that are relatively inexpensive. b. that are frequently purchased. c. that are relatively complex to repair. d. regardless of how they are positioned in the market.

Q: A local club is selling Christmas trees and deciding how many to stock for the month of December. If demand is normally distributed with a mean of 100 and standard deviation of 20, trees have no salvage value at the end of the month, trees cost $20, and trees sell for $50 what is the service level?A) .60B) .20C) .84D) .40E) unable to determine given the above information

Q: Bagels Bagels Bagels, a small breakfast bagel bakery, has expanded into sandwiches for lunch using bagels. They are now employing a _____ product strategy. a. one product/one market b. one product/multiple markets c. modified product/one market d. modified product/multiple markets

Q: The main trait of a single-period model is that: A) inventory has limited value after a certain period of time. B) it has the largest EOQ sizes. C) the order quantity should usually equal the expected value of demand. D) supply is limited. E) the cost of a shortage cannot be determined accurately.

Q: Furniture Shine is introducing an improved version of its existing wax targeted to owners of antiques. The firm has decided to leave the original wax in the mix aimed toward residential owners. Furniture Shine is employing a _____ product strategy. a. multiple products/one market b. multiple products/multiple markets c. modified product/one market d. modified product/multiple markets

Q: Which of the following items is mostly likely managed using a single-period order model? A) Christmas trees B) canned food at the grocery store C) automobiles at a dealership D) metal for a manufacturing process E) gas sold to a gas station

Q: The activities of physically moving a product is a. channel management. b. distribution. c. logistics. d. supply chain management.

Q: Demand for a product is relatively constant at five units per day. Lead time for this product is normally distributed with a mean of ten days and a standard deviation of three days.(a) What reorder point provides a 50 percent service level?(b) What reorder point provides a 90 percent service level?(c) If the lead time standard deviation can be reduced from 3 days to 1, what reorder point now provides 90 percent service? How much is safety stock reduced by this change?

Q: A copyright provides protection for the duration of the creator's life, plus a. 25 years. b. 70 years. c. 75 years. d. 100 years.

Q: A product has a reorder point of 260 units, and is ordered ten times a year on average. The following table shows the historical distribution of demand values observed during lead time. Demand Probability 240 .1 250 .2 260 .4 270 .2 280 .1 Currently, stockouts are valued at $5 per unit per occurrence, while inventory carrying costs are $2 per unit per year. Should the firm add safety stock? If so, how much safety stock should be added?

Q: Demand for a product is approximately normal, averaging 5 units per day with a standard deviation of 1 unit per day. Lead time for this product is approximately normal, averaging 10 days with a standard deviation of 3 days. What reorder point provides a service level of 90 percent?

Q: Small businesses should view distribution costs as a. prohibitive. b. sunk costs. c. an investment. d. Two of the above are true.

Q: A product has a reorder point of 110 units, and is ordered four times a year on average. The following table shows the historical distribution of demand values observed during lead time. Demand Probability 100 .3 110 .4 120 .2 130 .1 Managers have noted that stockouts occur 30 percent of the time with this policy, and they question whether a change in inventory policy, to include some safety stock, might be an improvement. The managers realize that any safety stock would increase the service level, but they are worried about the increased costs of carrying the safety stock. Currently, stockouts are valued at $20 per unit per occurrence, while inventory carrying costs are $10 per unit per year. What is your advice? Do higher levels of safety stock add to total costs, or not? What level of safety stock is best?

Q: The three considerations in building a channel of distribution are a. cost, coverage, and control. b. cost, coverage, and compatibility. c. coverage, control, and compatibility. d. cost, control, and compatibility.

Q: Average daily demand for a product is normally distributed with a mean of 20 units and a standard deviation of 3 units. Lead time is fixed at 25 days. What reorder point provides for a service level of 95 percent?

Q: Successful growth a. happens on its own. b. occurs only when certain factors are carefully considered and well managed. c. should be easy if the owner has the correct management style. d. will keep most business functions the same, just larger in scope.