1. Service design differs from product design by including __________________________.

a) customer needs

b) marketing personnel in the decision making process

c) speed

d) quality

e) the esthetic and psychological benefits of the product

2. Which of the following is not a step in product design?

a) final design

b) preliminary design and testing

c) idea development

d) conceptual design

e) product screening

3. Studying the practices of companies considered "best in class" and comparing the performance of our company against their performance is

a) competition

b) copying

c) frustration

d) benchmarking

e) notching

4. What technique is based on computing the quantity of goods a company needs to sell to just cover its costs?

a) net present value

b) break-even analysis

c) internal rate of return

d) activity based costing

e) variable costing

5. Which of the following is not a fixed cost?

a) land rent

b) materials

c) overhead

d) taxes

e) insurance

6. In break-even analysis, in order to make a profit the company must

a) sell above the break-even point

b) sell below the break-even point

c) sell at a loss

d) sell at the break-even point

e) sell on consignment

7. Which type of operation is used to produce many different products with varying process requirements in lower volumes?

a) intermittent

b) repetitive

c) continuous

d) downstream

e) gateway

8.The classes that you are taking at the university use a _______________ process.

a) project

b) batch

c) line

d) continuous

e) recycle

9. Which product and service strategy has the longest delivery lead time?

a) assemble-to-deliver

b) make-to-stock

c) assemble-to-order

d) make-to-order

e) make-to-package

10. What is the break-even volume given insurance costs of $30,000, materials costs of $6 per unit, taxes of $10,000, labor costs of $34 per unit, and a selling price of $80?

a) 4000

b) 3000

c) 2000

d) 1000

e) 500

11. If a firm has fixed costs of $250,000, a market-based selling price of $50 per unit, and it expects to sell 20,000 units, how low must its variable costs be to break even?

a) $40.00

b) $37.50

c) $20.00

d) $10.00

e) $5.00

12. If a firm has fixed costs of $200,000, variable costs of $100 per unit, and it hopes to sell 1000 units, what selling price must it charge in order to break even?

a) $400.00

b) $375.00

c) $350.00

d) $325.00

e) $300.00

13. Which of the following typically represent the beginning of a supply chain.

a) Wholesalers

b) Retailers

c) Manufacturers

d) External suppliers

e) Inspectors

14. The time between order placement and the receipt of goods is called _____________________________.

a) receipt time

b) lead time

c) allowance time

d) processing time

e) waiting time

15. Which activity appears to be most frequently outsourced by large companies?

a) Purchasing

b) Marketing

c) Finance

d) Accounting

e) Manufacturing

16. According to several studies, what are the three most important criteria for selecting suppliers?

a) Price, quality, fast delivery

b) Quality, fast delivery, on-time delivery

c) Price, flexibility, on-time delivery

d) Quality, flexibility, fast delivery

e) Price, quality, on-time delivery

17. Which type of technology provides "point-of-sale information?"

a) Automatic guided vehicles (AGV)

b) Automatic storage and retrieval systems (ASRS)

c) Barcode scanners

d) Flexible manufacturing systems (FMS)

e) Computer aided design/computer aided manufacturing (CAD/CAM)