Business Quiz: Manufacturing

1. Why is manufacturing important to the economy?

It generates wealth and adds value to products

It uses natural resources and prevents waste

It decreases employment and generates wealth

It prevents waste and decreases employment

2. Which of the following strategies produces the longest delivery lead time?

Make-to-order

Assemble-to-order

Make-to-stock

Continuous manufacturing

3. Which of the following is an activity of physical supply/distribution?

Transportation

Work-in-process inventory

Production activity control

Materials requirements planning

4. Which of the following are primary activities of manufacturing planning and control?

Inventory management and cost information

Sales support and cost information

Production planning and inventory management

Sales support, implementation, and control

5. Whihc of the following statements is true?

The objectives of marketing and production can be met with higher inventories

The objectives of marketing and finance can be met with higher inventories

The objectives of marketing and production can be met with lower inventories

The objectives of marketing and finance can be met with lower inventories

6. Which of the following is a major objective of materials management?

Provide sufficient equitable employment

Provide the required level of customer service

Support cost accounting by decreasing inventory turns

Provide cost information for management decisions

7. Which of the folowing statements is true about the product layout (continuous process)?

Workstations are located according to the type of machinery

Workflow is lumpy

A wide variety of different products can be produced

There is little buildup of work-in-process inventory

8. Which of the following statements is most accurate?

Marketing objectives can be met with low inventories and disruptions to production

Finance objectives can be met with disruptions to production of high inventories

Production objectives can be met with high customer service and no disruptions to production

The conflict between marketing, production, and finance centers on customer service, disruption to production, and inventory levels

9. In a traditional manufacturing environment, which of the following objectives are in conflict?

Maximizing customer service and increasing inventory investment

Minimizing production costs and increasing inventory investment

Minimizing production costs and decreasing inventory investment

Minimizing customer service and decreasing inventory investment

10. Which of the following statements is true regarding process layout (intermittent manufacturing)?

Capital costs are generally higher than for product layout

Special-purpose machinery is used

Each workstation must be flexible