Archive for February 2019

Which of the following is true about Arab negotiators?

Which of the following is true about Arab negotiators?



A. Arab negotiators do not use conferences as mediating devices
B. Arab negotiators generally use factual rather than affective devices
C. Arab negotiators prefer short-term relationships to long-term relationships
D. Arab negotiators use mediators to settle disputes


Answer: D. Arab negotiators use mediators to settle disputes

During the exchange of task-related information, who among the following people would most likely ask many questions of their counterparts, delve specifically and repeatedly into the details at hand, and provide only vague and ambiguous material during a presentation?

During the exchange of task-related information, who among the following people would most likely ask many questions of their counterparts, delve specifically and repeatedly into the details at hand, and provide only vague and ambiguous material during a presentation?



A. Chinese
B. Arabs
C. Americans
D. Mexicans


Answer: A. Chinese

Which of the following is most likely to be true about negotiators in the Far East?

Which of the following is most likely to be true about negotiators in the Far East?



A. negotiators avoid building relationships
B. negotiators approach issues in a holistic manner, deciding on the whole deal at the end
C. negotiators begin the discussions by pointing out proposals that they are prepared to accept
D. negotiators are particular about formal contracts and insist on specific clauses


Answer: B. negotiators approach issues in a holistic manner, deciding on the whole deal at the end

The purpose of Wellness Plan is to:

The purpose of Wellness Plan is to:



A. Promote preventive care
B. Promote all-inclusive care
C. Promote pet health insurance
D. Non of the above


Answer: A. Promote preventive care

Wellness plans should be developed by:

Wellness plans should be developed by:



A. Species
B. Age group
C. Client preferences
D. A and B


Answer: D. A and B

Indemnity insurance is also known as:

Indemnity insurance is also known as:



A. Managed care
B. HMO delivered
C. PPO delivered
D. None of the above


Answer: D. None of the above

Pet health insurance:

Pet health insurance:



A. Improves patient care
B. Increases patient examinations
C. Decreases stop treatment threshold
D. A and B


Answer: D. A and B

Why should wellness plans be available for clients?

Why should wellness plans be available for clients?



Answer: Clients are asking for payment plans, so that they can budget the best care possible for their best friend.

What is a lifetime limit?

What is a lifetime limit?



Answer: A lifetime limit is the maximum amount a policy will pay, for the lifetime of the pet

What is considered a congenital condition?

What is considered a congenital condition?



Answer: A congenital condition is a condition or disease that is an abnormality at birth, and it can be due to conditions that occurred in utero. Examples include cleft palate or a portosystemic shunt.

What is considered a hereditary condition?

What is considered a hereditary condition?



Answer: A hereditary condition is a condition that is passed from the genes of the parents to the offspring. It may be visible or invisible upon examination. Examples include hip dysplasia or luxating patellas.

What is the benefit of an annual deductible versus a per-incident deductible?

What is the benefit of an annual deductible versus a per-incident deductible?



Answer: The benefit of an annual deductible is that it is a once yearly deductible. If the pet must be seen three times in one year for a variety of ailments, the deductible has already been paid on the first visit. If a per-incident policy is chosen, a deductible must be paid with each claim.

What is an annual premium?

What is an annual premium?



Answer: A premium is the dollar amount the owner pays to maintain a policy for their pet.

What is a co-pay?

What is a co-pay?



Answer: A co-pay is the percentage that the owner is responsible for after the deductible has been met, as determined by the policy.

Define an annual deductible.

Define an annual deductible.



Answer: An annual deductible is an amount paid once yearly, as determined by the policy.

What are the characteristics of an effective allergy diet?

What are the characteristics of an effective allergy diet?



Answer: An effective allergy diet is composed of proteins that are hydrolyzed, preventing the body from recognizing the protein and developing a reaction. A novel protein may be introduced if the pet has never been exposed to that protein before.

Why must a euthanasia release form be signed by the owner?

Why must a euthanasia release form be signed by the owner?



Answer: The clinic must ensure the owner knows and understands the result of euthanasia, and that the practice is released of liability by euthanizing the pet.

How does this drug affect the body?

How does this drug affect the body?



Answer: The drug depresses the cardiac and respiratory systems until they stop.

In what ways can a pet be memorialized?

In what ways can a pet be memorialized?



Answer: Cards, flowers, paw prints, clay impressions, or picture collages are all suggestions.

Why is the human-animal bond so strong?

Why is the human-animal bond so strong?



Answer: Many people form a special bond with pets because they can share many life experiences with them. The pain of a divorce, and the loss of a human friend or family member can all be lessened by a pet that offers distractions.

What are the five stages of grief? Describe each.

What are the five stages of grief? Describe each.



Answer:

-Denial: Owners do not believe that their pet is as sick or injured as it really is; often they will seek opinions of others.
-Anger: Clients are angry at what caused the situation to occur; a pet hit by a car may be the fault of a family member laving the gate open and the client is angry
-Bargaining: Clients experience a stage when they are willing to bargain for a longer period time with their pet. They may offer vitamins or supplements to try to extend the life of their pet.
-Depression: clients suffer a period of depression and sadness with the loss of their pet.
-Acceptance: Clients accept the loss of the pet, and the pain lessens. They may be able to adopt a new pet at this point.

Why is quality of life important?

Why is quality of life important?



Answer: Pets should be able to urinate, defecate, and eat to have a good quality of life. Those that do not have a good quality of life become depressed and irritable.

What is euthanasia?

What is euthanasia?



Answer: Euthanasia is the human form of providing an easy and painless death.

Medical record audits should:

Medical record audits should:



A. Capture missed charges
B. Identify incomplete medical records
C. Identify lapses in recommendations
D. All of the above


Answer: D. All of the above

Purging medical records:

Purging medical records:



A. Increases lost records
B. Is required by law
C. Allows inactive records to be shredded
D. Moves inactive medical records to another storage area


Answer: D. Moves inactive medical records to another storage area

The objective portion of the SOAP format includes:

The objective portion of the SOAP format includes:



A. Chief complaint of the client
B. Observations of team members upon check-in
C. Physical exam
D. Diagnosis


Answer: C. Physical exam

Medical records:

Medical records:



A. Can be released to any person asking for a copy
B. Must be released to the owner only
C. Must have an owner's consent to be released to any person asking for a copy
D. B and C


Answer: C. B and C


Who owns the radiographs of a pet?

Who owns the radiographs of a pet?



Answer: The practice owns the radiographs, but copies can be made for owners at their request.

Does a client record belong to the client? Why or why not?

Does a client record belong to the client? Why or why not?



Answer: No, the medical record does not belong to the client, as it is property of the veterinary practice; however copies can be made for owners at any time.

Why are discharge sheets vital?

Why are discharge sheets vital?



Answer: Clients will not remember all of the information presented to them upon discharge of their pet. Information should be in written format so that they may review the information when they get home.

What items are mandatory in a medical record? Why?

What items are mandatory in a medical record? Why?



Answer:

-Owner's name
-Patient's name
-Patient's information
-SOAP
-Physical exam
-Treatments: Must include name of drug, strength, route of administration, and the initials of the administrator
-Diagnosis
-Laboratory data: Interpretation and comments regarding abnormalities
-Prognosis: Excellent, fair, guarded, or poor
-Initials of the doctors and technicians
All information is required to have a complete medical record

What is a SOAP progress note? Give an example of each part.

What is a SOAP progress note? Give an example of each part.



Answer: SOAP is the format medical records should follow: Subjective, Objective, Assessment, Plan. Subjective information is the reason for the patient's visit. Objective information includes the physical exam. Assessment is the conclusions that can be reached from the subjective and objective sections, including possible diagnosis. The plan includes any diagnostic workup recommended, along with intended communications for the owner.

Why is history taking critical for medical record?

Why is history taking critical for medical record?



Answer: The presenting complaint must be documented in the record. The history helps the veterinarians determine a diagnosis.

How often are medical records purged?

How often are medical records purged?



Answer: State laws vary regarding the length of time medical records must be kept; most states require at least 3 years. Inactive records can be purged from the active record section, moving them to another location within the practice yearly.

Why is legibility so important in medical records?

Why is legibility so important in medical records?



Answer: Records must be legible so that team members may follow instructions for treatment for the current visit. Team members must also be able to refer to the history of the patient when it returns for future visits. Should the patient need to be referred to a specialist, the specialty practice must be able to read diagnostics and treatments for the patient. Should the case ever become the subject of a lawsuit, the judge must be able to read and understand the record in order to make a fair ruling on the case.

Appointments should be set for:

Appointments should be set for:



A. Client education
B. Surgery/dental procedures
C. Technicians
D. All of the above
E. None of the above


Answer: A. Client education

The goals of an appointment system include which of the following?

The goals of an appointment system include which of the following?



A. Maximize productivity
B. Reduce staff tension
C. Control traffic within the veterinary hospital
D. All of the above
E. None of the above


Answer: D. All of the above

What information is vital when scheduling appointments?

What information is vital when scheduling appointments?



Answer: Client's name, pet's name and species, problem to be seen for, and a phone number to contact the client the day of the appointment.

Why should walk-in clients be seen?

Why should walk-in clients be seen?



Answer: Many clients feel that their pet is experiencing an emergency and cannot wait for the next available appointment; therefore they must be seen for the minor emergency. The emergency may not seem like an emergency to the staff, but it is important to the client to be seen. Practices do not want clients to feel that their pet is not important enough to be seen.

What factors affect appointment scheduling?

What factors affect appointment scheduling?



Answer: Number of veterinarians working, appointments that can be scheduled for veterinary technicians, surgeries, dental procedures, non sterile procedures, holidays, the type of appointment, and the particular client

Explain how to handle clients who are always late for their appointments.

Explain how to handle clients who are always late for their appointments.



Answer: They must be reminded in a kind manner what time their appointment is, and informed that the appointment will take the full time that has been allotted for them. If they cannot make the appointment time, it will need to be rescheduled.

Why should an appointment be established for client education?

Why should an appointment be established for client education?



Answer: Client education can take a large amount of time, depending on the disease or condition that needs to be discussed. Clients should not have to wait long periods of time to be educated, or they may become irritated. Once they are irritated, they may not listen to all of the information that is being presented to them.

What is the benefit of clients dropping off patients?

What is the benefit of clients dropping off patients?



Answer: If an appointment time is not available and the pet needs to be seen, dropping off the patient allows the team to work it in between appointments, preventing the client from having to wait for long periods of time. The team can exam the patient, perform laboratory procedures if needed, and call the client when the patient is ready to be picked up.

How can clients be informed at the changes when a practice wants to implement an appointment system? Why create a positive atmosphere when making these changes?

How can clients be informed at the changes when a practice wants to implement an appointment system? Why create a positive atmosphere when making these changes?



Answer: Brochures, postcards, and newsletters can be sent to clients indicating the change from walk-in to appointment service. Creating a positive atmosphere about the change will help clients embrace the change and learn to make appointments.

How can individual verbal image be improved?

How can individual verbal image be improved?



Answer: Verbal image can be improved by attending continuing education seminars and understanding procedures and products completely. When teams have a full comprehension of the procedure, communication to clients is more confident and professional. Teams must learn the correct pronunciation of words and protocols, which also enhances verbal image.

Why are estimates important?

Why are estimates important?



Answer: Estimates must be given to clients before procedures are done so that they are aware of the expense. Clients that do not receive estimates are generally upset at the staff because of the expense of the procedure, and leave the practice unsatisfied.

How can common barriers be overcome?

How can common barriers be overcome?



Answer: Common barriers can be overcome in several ways. If a client has folded arms and refuses to accept information, a brochure or model can be handed to the client to open the lines of communication. If it is a language barrier, another team member may be more experience in translation. Team members may become educated in the various cultures that are in the immediate area, and learn to communicate with each of those cultures (some cultures respond to situations differently).

How should an angry client be handled?

How should an angry client be handled?



Answer: Angry clients should be placed in an exam room away from other clients. The team member addressing the client should listen to what the client has to say and repeat it, ensuring no miscommunication occurs. The team member may offer a resolution to the problem, which will satisfy the client.

Why is body posture important?

Why is body posture important?



Answer: Body posture communicates a positive, professional, and confident image.

Create an example that can enhance client education.

Create an example that can enhance client education.



Answer: Dental disease in pets can be seen clearly. Dental models can be shown to clients indicating what the inside of the mouth looks like, as only the outside of the teeth can be visualized. The pet may receive a dental report card indicating the stage of dental disease their pet has, as well as a brochure indicating what is included in a dental procedure. before and after pictures can be taken during a dental procedure, along with a print out of digital dental radiographs for the owner

What are the benefits of a reminder system?

What are the benefits of a reminder system?



Answer: Reminder systems automatically generate reminders for services or products that have been preselected in the computer. If the client does not respond to the first reminder, a second is generated.

What is client compliance and how can it be achieved?

What is client compliance and how can it be achieved?



Answer: Client compliance is defined as when clients accept recommendations from the team. It can be achieved by educating the client regarding the importance of the procedure or treatment, both verbally and with written materials.

Why are verbal and written skills imperative in veterinary medicine?

Why are verbal and written skills imperative in veterinary medicine?



Answer: Excellent verbal and written skills contribute to the overall professional image of the practice. Clients trust team members that can speak and communicate well, and are willing to accept recommendations the team makes.

What is the purpose of requiring owners to sign consent forms?

What is the purpose of requiring owners to sign consent forms?



A. To ensure the owner is understanding of why they are leaving their pet
B. To protect veterinary practices and team members from any issues that may arise and may need to be submitted in the case of a lawsuit.
C. To satisfy state law
D. All of the above


Answer: B. To protect veterinary practices and team members from any issues that may arise and may need to be submitted in the case of a lawsuit.

If the appointment schedule is full the receptionist should sat which of the following during a phone conversation?

If the appointment schedule is full the receptionist should sat which of the following during a phone conversation?



A. Sorry Mrs. Jones, we are unable to see you today; can I schedule you an appointment for the next week?
B. You are welcome to drop off fluffy with us today, or come in as a walk-in, because we do not have ant appointments available, but we would be glad to work you in.
C. We have had several emergencies and walk-ins already today. Can Bella wait to be seen until tomorrow?
D. Mrs. Smith, you can come in as a walk-in but you will have a very long wait; we are extremely busy today.


Answer: B. You are welcome to drop off fluffy with us today, or come in as a walk-in, because we do not have ant appointments available, but we would be glad to work you in.

Which of the following is a proper phone introduction?

Which of the following is a proper phone introduction?



A. Hello, this is Brooke, how can I help you?
B. Good Morning, ABC Animal Clinic, this is Teresa. How may I help you?
C. ABC Veterinary Clinic, can I help you?
D. Good afternoon, ABC Animal Clinic. How may I help you?


Answer: B. Good Morning, ABC Animal Clinic, this is Teresa. How may I help you?

Why should invoices be reviewed with clients, not just given to them?

Why should invoices be reviewed with clients, not just given to them?



Answer: Clients must understand what they are paying for, and perceive the value of the service. Invoices presented without explanation gives clients a sense of sticker shoot.

How should a declined credit card be handled?

How should a declined credit card be handled?



Answer: The client should be informed quietly and discreetly that the card was declined, and ask for another type of payment

How can a phone shopper be turned into a client?

How can a phone shopper be turned into a client?



Answer: Services should be detailed to phone shoppers over the phone; they must understand the value of the service. At the end of the conversation, the receptionist should ask when an appointment can be made, or let shopper know when the next available appointment is.

What makes the first impression on clients?

What makes the first impression on clients?



Answer: The telephone call and receptionist, followed by the reception area when client arrives to the practice.

What changes could improve each call?

What changes could improve each call?




Answer: Speaking slowly, clearly, and in tones can improve the quality of any phone call.

What is formula to count total number of potential communication channels in one project?

What is formula to count total number of potential communication channels in one project?



A. n(n + 1)/2 where n represents the number of stakeholders
B. n(n - 1)/2 where n represents the number of stakeholders
C. n(n + 2)/2 where n represents the number of stakeholders
D. n(n - 2)/2 where n represents the number of stakeholders


Answer: B

Communications Management Plan contains which of below information?

Communications Management Plan contains which of below information?



A. Person responsible for coding, testing application
B. Person responsible for testing, analyzing requirement
C. Project time, cost, scope, meetings
D. Person responsible for authorizing release of confidential information


Answer: D

Effective communication means .

Effective communication means .



A. Information provided in right format, at anytime
B. Information provided at the right time, with any templates
C. Information provided with the right impact, at anytime
D. Information provided in right format, at the right time & with the right impact

Answer: D

Project meetings also include discussions & dialog with .

Project meetings also include discussions & dialog with .



A. Suppliers, Vendors & other project
Stakeholders
B. Suppliers, Vendors
C. Vendors & other project Stakeholders
D. PM, Developers & Testers


Answer: A

Control Communication process could be done.

Control Communication process could be done.



A. At planning stage
B. In requirement phase
C. On requests
D. During project life cycle


Answer: D

Which is process of creating, collecting, distributing, storing, retrieving, and the ultimate disposition of project information in accordance to the communications management plan?

Which is process of creating, collecting, distributing, storing, retrieving, and the ultimate disposition of project information in accordance to the communications management plan?



A. Plan Communications Management
B. Manage Communications
C. Control Communications
D. Monitor Communications


Answer: B

What are NOT management tasks?

What are NOT management tasks?



A. Project Management
B. Quality control
C. Contract management
D. Configuration management



Answer: B

What are the support tasks?

What are the support tasks?



A. Prevention
B. Correction
C. Configuration management
D. Both A & B are correct


Answer: D

What is the rule for informing the Task Management Team to project members?

What is the rule for informing the Task Management Team to project members?



A. Deadline to define & inform to project team for the first time: No later than deadline for approval of Project Plan
B. Any change must be informed within 5 working days from the start of the change
C. The Team can be informed to project team via email, in meeting (daily, kick-off...)
D. All of the answers


Answer: D

How to pay FS coin when the employees who joined the project are paid an annually fixed income(13 month/year)?

How to pay FS coin when the employees who joined the project are paid an annually fixed income(13 month/year)?



A. This Coin is used to evaluate employees' performance at yearly CHE, and also be a basis to consider and approve for salary increase proposal, level up or appointment proposal
B. This coin will be paid as normal
C. Both A & B are not correct
D. This coin will be used as a Reward coin budget of the project


Answer: A

What does fTM stand for?

What does fTM stand for?



A. Coefficient of Task complexity
B. Compliance rate by process Task Management
C. Coefficient of Task Management compliance
D. None of the answer


Answer: B

What does kT stand for?

What does kT stand for?



A. Coefficient of Task Management compliance
B. Coefficient of Time management
C. Coefficient of Task complexity
D. None of the answer


Answer: A

Which of the following is characteristic of lean operations?

Which of the following is characteristic of lean operations?



A) inventory buffers between each workstation to minimize system downtime
B) easy, mindless jobs
C) specialty workers with no cross-training
D) low space requirements
E) no supplier partnerships


Answer: D

Lean operations are known for their:

Lean operations are known for their:



A) employee development.
B) supplier education.
C) supplier partnerships.
D) challenging jobs.
E) All of the above are attributes of lean operations.


Answer: E

Which of the following is NOT an attribute of lean operations?

Which of the following is NOT an attribute of lean operations?



A) eliminating almost all inventory through just-in-time techniques
B) minimizing space requirements by reducing the distance a part travels
C) pushing responsibility to the highest level possible through centralized decision making
D) educating suppliers to accept responsibility for helping meet customer needs
E) building worker flexibility through cross-training and reducing job classifications


Answer: C

Which of the following is not characteristic of a TPS employee?

Which of the following is not characteristic of a TPS employee?



A) knowledgeable
B) strict job classifications
C) know more about their job than anyone else
D) empowered
E) All of the above characterize a TPS employee.


Answer: B

Which of the following is an illustration of employee empowerment?

Which of the following is an illustration of employee empowerment?



A) UPS drivers are trained to perform several motions smoothly and efficiently.
B) Unionization of the work place brings better morale and therefore better quality.
C) "No one knows the job better than those who do it."
D) all of the above
E) none of the above


Answer: C

A manufacturer took the following actions to reduce inventory. Which of these is generally not accepted as a JIT action?

A manufacturer took the following actions to reduce inventory. Which of these is generally not accepted as a JIT action?



A) It used a pull system to move inventory.
B) It produced in ever smaller lots.
C) It required deliveries directly to the point of use.
D) It picked the supplier that offered the lowest price based on quantity discounts.
E) It worked to reduce the company's in-transit inventory.


Answer: D

Great Lakes Barge and Baggage Company makes, among other things, battery-operated bilge pumps. Which of the following activities is NOT part of JIT? They:

Great Lakes Barge and Baggage Company makes, among other things, battery-operated bilge pumps. Which of the following activities is NOT part of JIT? They:



A) communicate their schedules to suppliers.
B) produce in long production runs to reduce the impact of setup costs.
C) use a pull system to move inventory.
D) continuously work on reducing setup time.
E) produce in small lots.


Answer: B

JIT makes quality cheaper because:

JIT makes quality cheaper because:



A) the cost of low quality can be hidden as inventory cost.
B) JIT adds more buffers to the system.
C) JIT prevents long runs of defects.
D) B and C
E) A, B and C


Answer: C

Which of the following is FALSE regarding the links between JIT and quality?

Which of the following is FALSE regarding the links between JIT and quality?



A) Inventory hides bad quality; JIT immediately exposes it.
B) JIT reduces the number of potential sources of error by shrinking queues and lead times.
C) As quality improves, fewer inventory buffers are needed; in turn, JIT performs better.
D) If consistent quality exists, JIT allows firms to reduce all costs associated with inventory.
E) JIT increases the cost of obtaining good quality.



Answer: E

A grocery store is attempting to implement a kanban system. Which of the following would not be an application of kanbans?

A grocery store is attempting to implement a kanban system. Which of the following would not be an application of kanbans?




A) An empty doughnut tray signaling the bakery to produce 2 dozen glazed doughnuts.
B) A line of 5 people in the Chinese department signaling the department to heat 5 Crab Rangoon.
C) A red light on top of the cashier's lane signals that the cashier needs additional change replenished.
D) The meat department stocking up on turkeys before Thanksgiving.
E) All of the above are kanban applications.


Answer: D

The number of kanbans should be equal to which of the following?

The number of kanbans should be equal to which of the following?



A) one
B) the ratio of (demand during lead time + safety stock) to container size
C) one-half of the EOQ
D) one full day's production divided by the EOQ
E) the ratio of demand during lead time to (container size + safety stock)


Answer: B

Which one of the following scenarios represents the use of a kanban to reduce inventories?

Which one of the following scenarios represents the use of a kanban to reduce inventories?



A) A supervisor tells the operators to stay busy and start producing parts for next month.
B) A "supplier" work center signals the downstream workstation that a batch has been completed.
C) A supervisor signals to several work centers that the production rate should be changed.
D) A "customer" work center signals to the "supplier" workstation that more parts are needed.
E) An operator asks the next station's operator to help him fix his machine.


Answer: D

What does the Japanese word "kanban" mean?

What does the Japanese word "kanban" mean?



A) low inventory
B) employee empowerment
C) card
D) continuous improvement
E) lot size of one


Answer: C

Kanban is associated with all EXCEPT which of the following?

Kanban is associated with all EXCEPT which of the following?



A) small lot sizes
B) signals, such as cards, lights, or flags
C) moving inventory only as needed
D) increased material handling
E) reductions in inventory


Answer: D

Which one of the following statements is TRUE about the kanban system?

Which one of the following statements is TRUE about the kanban system?



A) The quantities in the containers are usually large to reduce setup costs.
B) It is associated with a push system.
C) It is useful to smooth operations when numerous quality problems occur.
D) The supplier workstation signals the customer workstation as soon as a batch is completed.
E) The customer workstation signals to the supplier workstation when production is needed.


Answer: E

If a factory wants to cut its current lot size in half, by what proportion must setup cost change?

If a factory wants to cut its current lot size in half, by what proportion must setup cost change?



A) Setup cost must be cut to one fourth its current value.
B) Setup cost must also be cut in half from its current value.
C) Setup cost must double from its current value.
D) Cannot be determined.
E) Setup cost must quadruple from its current value.


Answer: A

Which of the following is TRUE regarding the steps to reducing setup times?

Which of the following is TRUE regarding the steps to reducing setup times?



A) The first step involves performing as much setup preparation as possible while the process/machine is operating.
B) The cycle of steps is repeated until setup time is reduced to under a minute.
C) The standardization of both tooling and work procedures is advantageous to setup time reduction.
D) Move material closer and improve material handling are done before operator training.
E) All of the above are true.


Answer: E

A product has annual demand of 100,000 units. The plant manager wants production to follow a four-hour cycle. Based on the following data, what setup cost will enable the desired production cycle?

A product has annual demand of 100,000 units. The plant manager wants production to follow a four-hour cycle. Based on the following data, what setup cost will enable the desired production cycle? 



d = 400 per day (250 days per year), p = 4000 units per day, H = $40 per unit per year, and Q = 200 (demand for four hours, half a day).


A) $2.00
B) $7.20
C) $18.00
D) $64.00
E) $1,036.80


Answer: B

Which one of the following statements is TRUE regarding JIT inventory?

Which one of the following statements is TRUE regarding JIT inventory?



A) It exists just in case something goes wrong.
B) It is the minimum inventory necessary to keep a perfect system running.
C) It hides variability.
D) It is minimized with large lot production.
E) It increases if setup costs decrease.


Answer: B

Which of the following is NOT a concern of suppliers as they prepare to enter into JIT partnerships?

Which of the following is NOT a concern of suppliers as they prepare to enter into JIT partnerships?



A) Suppliers feel that they would be less at risk if they contracted with more than one customer.
B) Suppliers are concerned that customers will present frequent engineering changes with inadequate lead time to deal with them.
C) Suppliers feel that their processes are suited for larger lot sizes than the customer wants.
D) Suppliers are concerned that frequent delivery of small quantities is economically prohibitive.
E) All of the above represent JIT supplier concerns.


Answer: E

How can a reduction of in-transit inventory be encouraged?

How can a reduction of in-transit inventory be encouraged?



A) supplier location near plants
B) high setup costs
C) low carrying costs
D) use of trains, not trucks
E) low-cost, global suppliers


Answer: A

Which one of the following is a concern expressed by suppliers in JIT partnerships?

Which one of the following is a concern expressed by suppliers in JIT partnerships?



A) having too many customers
B) delivery to the point of use
C) having limited ability to respond to changes in product and quality
D) large lot sizes
E) customers' infrequent engineering changes


Answer: C

Which of the following is NOT a goal of JIT partnerships?

Which of the following is NOT a goal of JIT partnerships?



A) removal of unnecessary activities
B) removal of in-plant inventory
C) removal of in-transit inventory
D) obtain improved quality and reliability
E) All of the above are goals of JIT partnerships.


Answer: E

Which of the following is not a goal of JIT partnerships?

Which of the following is not a goal of JIT partnerships?



A) removal of unnecessary activities
B) removal of in-plant inventory
C) removal of in-transit inventory
D) inspect all incoming shipments to ensure zero defects
E) All of the above are goals of JIT partnerships.


Answer: D

Characteristics of just-in-time partnerships do NOT include:

Characteristics of just-in-time partnerships do NOT include:



A) removal of in-transit inventory.
B) large lot sizes to save on setup costs and to gain quantity discounts.
C) long-term contracts.
D) produce with zero defects.
E) focus on core competencies.


Answer: B

Which one of the following is a characteristic of a JIT partnership?

Which one of the following is a characteristic of a JIT partnership?



A) third-party logistics never used
B) maximal product specifications imposed on supplier
C) active pursuit of vertical integration
D) removal of incoming inspection
E) frequent deliveries in large lot quantities


Answer: D

If the goals of JIT partnerships are met, which of the following is a result?

If the goals of JIT partnerships are met, which of the following is a result?



A) For incoming goods, receiving activity and inspection are outsourced.
B) In-transit inventory falls as suppliers are located closer to facilities.
C) Suppliers maintain a variety of customers to reduce risk.
D) In-plant inventory replaces in-transit inventory.
E) All of the above are consequences of meeting the JIT partnership goals.


Answer: B

The list of 5Ss, although it looks like a housekeeping directive, supports lean production by:

The list of 5Ss, although it looks like a housekeeping directive, supports lean production by:



A) identifying non-value items and removing them, in the "sort/segregate" category.
B) reducing inventory, in the "standardize" category.
C) increasing variability through standardized procedures, in the "standardize" category.
D) eliminating wasted motion through ergonomic studies, in the "support" category.
E) building good safety practices, in the "shine/sweep" category.


Answer: A

The 5Ss:

The 5Ss:



A) have the "flavor" of a housekeeping list.
B) are a checklist for lean operations.
C) have become a list of seven items in American practice.
D) can be used to assist with necessary changes in organizational culture.
E) All of these are true.


Answer: E

Manufacturing cycle time is best defined as the:

Manufacturing cycle time is best defined as the:



A) length of the work shift, expressed in minutes per day.
B) time it takes a unit to move from one workstation to the next.
C) time between the start of one unit and the start of the next unit.
D) sum of all the task times to make one unit of a product.
E) time from raw materials receipt to finished product exit.


Answer: E

Which of the following statements regarding a pull system is TRUE?

Which of the following statements regarding a pull system is TRUE?



A) Large lots are pulled from upstream stations.
B) Work is pulled to the downstream stations before it is actually needed.
C) Manufacturing cycle time is increased.
D) Problems become more obvious.
E) None of the above is true of a pull system.


Answer: D

Which of the following is NOT a source of variability?

Which of the following is NOT a source of variability?



A) Employees, machines, and suppliers produce units late.
B) Customer demand is unknown.
C) Employees, machines, and suppliers produce units that conform to standards.
D) Engineering drawings are inaccurate.
E) Drawings or specifications are incomplete.


Answer: C

Which of the following is generally found in most lean environments?

Which of the following is generally found in most lean environments?



A) a push or pull system, depending upon the rate of demand
B) a push system for high margin items and a pull system for low margin items
C) a push system for purchased parts and a pull system for manufactured parts
D) push systems
E) pull systems


Answer: E

What does TPS stand for?

What does TPS stand for?



A) Total Production Streamlining
B) Toyota Production System
C) Taguchi's Production S's
D) Total Process Simplification
E) Transparent Processing System


Answer: B

An advantage of the fixed-period inventory system is that:

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.


Answer: B

Q is to ________ systems as P is to ________ systems.

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


Answer: A

Which of the following is a requirement of Q systems?

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


Answer: A

A disadvantage of the fixed-period inventory system is that:

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.


Answer: D

The fixed-period inventory system requires more safety stock than a fixed-quantity system because:

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.


Answer: A

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 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


Answer: D

Service level is:

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


Answer: E

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?

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


Answer: C

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 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) .60
B) .20
C) .84
D) .40
E) unable to determine given the above information


Answer: A

The main trait of a single-period model is that:

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.


Answer: A

In a safety stock problem where both demand and lead time are variable, demand averages 150 units per day with a daily standard deviation of 16, and lead time averages 5 days with a standard deviation of 1 day. What is the standard deviation of demand during lead time?

In a safety stock problem where both demand and lead time are variable, demand averages 150 units per day with a daily standard deviation of 16, and lead time averages 5 days with a standard deviation of 1 day. What is the standard deviation of demand during lead time?



A) 15 units
B) 100 units
C) 154 units
D) 500 units
E) 13,125 units


Answer: C

If demand is not uniform and constant, then stockout risks can be controlled by:

If demand is not uniform and constant, then stockout risks can be controlled by:



A) increasing the EOQ.
B) spreading annual demand over more frequent, but smaller, orders.
C) raising the selling price to reduce demand.
D) adding safety stock.
E) reducing the reorder point.


Answer: D

The proper quantity of safety stock is typically determined by:

The proper quantity of safety stock is typically determined by:



A) using a single-period model.
B) carrying sufficient safety stock so as to eliminate all stockouts.
C) multiplying the EOQ by the desired service level.
D) setting the level of safety stock so that a given stockout risk is not exceeded.
E) minimizing total costs.


Answer: D

The purpose of safety stock is to:

The purpose of safety stock is to:



A) replace failed units with good ones.
B) eliminate the possibility of a stockout.
C) eliminate the likelihood of a stockout due to erroneous inventory tally.
D) control the likelihood of a stockout due to variable demand and/or lead time.
E) protect the firm from a sudden decrease in demand.


Answer: D

Demand for dishwasher water pumps is 8 per day. The standard deviation of demand is 3 per day, and the order lead time is four days. The service level is 95%. What should the reorder point be?

Demand for dishwasher water pumps is 8 per day. The standard deviation of demand is 3 per day, and the order lead time is four days. The service level is 95%. What should the reorder point be?



A) about 18
B) about 24
C) about 32
D) about 38
E) more than 40


Answer: E

Which of the following statements about quantity discounts is FALSE?

Which of the following statements about quantity discounts is FALSE?



A) The cost-minimizing solution may or may not be where annual holding costs equal annual ordering costs.
B) In inventory management, item cost becomes relevant to order quantity decisions when a quantity discount is available.
C) If carrying costs are expressed as a percentage of value, EOQ is larger at each lower price in the discount schedule.
D) The larger the annual demand, the less attractive a discount schedule will be.
E) The smaller the ordering cost, the less attractive a discount schedule will be.


Answer: D

When quantity discounts are allowed, the cost-minimizing order quantity:

When quantity discounts are allowed, the cost-minimizing order quantity:



A) is always an EOQ quantity.
B) minimizes the sum of holding and ordering costs.
C) minimizes the unit purchase price.
D) may be a quantity below that at which one qualifies for that price.
E) minimizes the sum of holding, ordering, and product costs.


Answer: E

A production order quantity problem has a daily demand rate = 10 and a daily production rate = 50. The production order quantity for this problem is approximately 612 units. What is the average inventory for this problem?

A production order quantity problem has a daily demand rate = 10 and a daily production rate = 50. The production order quantity for this problem is approximately 612 units. What is the average inventory for this problem?



A) 61
B) 245
C) 300
D) 306
E) 490


Answer: B

The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. What is the production order quantity for this problem?

The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. What is the production order quantity for this problem?



A) 139
B) 174
C) 184
D) 365
E) 548


Answer: C

Which of these statements about the production order quantity model is FALSE?

Which of these statements about the production order quantity model is FALSE?



A) The production order quantity model is appropriate when the assumptions of the basic EOQ model are met, except that receipt is noninstantaneous.
B) Because receipt is noninstantaneous, some units are used immediately and not stored in inventory.
C) Average inventory is less than one-half of the production order quantity.
D) All else equal, the smaller the ratio of demand rate to production rate, the larger is the production order quantity.
E) None of the above is false.


Answer: D

Which of the following statements regarding the production order quantity model is TRUE?

Which of the following statements regarding the production order quantity model is TRUE?



A) It applies only to items produced in the firm's own production departments.
B) It relaxes the assumption that all the order quantity is received at one time.
C) It relaxes the assumption that the demand rate is constant.
D) It minimizes the total production costs.
E) It minimizes inventory.


Answer: B

An inventory decision rule states, "When the inventory level goes down to 14 gearboxes, 100 gearboxes will be ordered." Which of the following statements is TRUE?

An inventory decision rule states, "When the inventory level goes down to 14 gearboxes, 100 gearboxes will be ordered." Which of the following statements is TRUE?



A) One hundred is the reorder point, and 14 is the order quantity.
B) Fourteen is the reorder point, and 100 is the order quantity.
C) The number 100 is a function of demand during lead time.
D) Fourteen is the safety stock, and 100 is the reorder point.
E) None of the above is true.


Answer: B

Which of the following statements regarding the reorder point is TRUE?

Which of the following statements regarding the reorder point is TRUE?



A) The reorder point is that quantity that triggers an action to restock an item.
B) There is a reorder point even if lead time and demand during lead time are constant.
C) The reorder point is larger than d × L if safety stock is present.
D) A shorter lead time implies a smaller reorder point.
E) All of the above are true.


Answer: E

A product has a demand of 4000 units per year. Ordering cost is $20, and holding cost is $4 per unit per year. The cost-minimizing solution for this product is to order:

A product has a demand of 4000 units per year. Ordering cost is $20, and holding cost is $4 per unit per year. The cost-minimizing solution for this product is to order:



A) all 4000 units at one time.
B) 200 units per order.
C) every 20 days.
D) 10 times per year.
E) none of the above


Answer: B

A product has a demand of 4000 units per year. Ordering cost is $20, and holding cost is $4 per unit per year. The EOQ model is appropriate. The cost-minimizing solution for this product will cost ________ per year in total annual inventory (holding and setup) costs.

A product has a demand of 4000 units per year. Ordering cost is $20, and holding cost is $4 per unit per year. The EOQ model is appropriate. The cost-minimizing solution for this product will cost ________ per year in total annual inventory (holding and setup) costs.



A) $400
B) $800
C) $1200
D) Zero; this is a class C item.
E) Cannot be determined because the unit price is not known.


Answer: B

For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200 units, and the total annual inventory (carrying and setup) cost is $600. What is the inventory carrying cost per unit per year for this item?

For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200 units, and the total annual inventory (carrying and setup) cost is $600. What is the inventory carrying cost per unit per year for this item?



A) $1.50
B) $2.00
C) $3.00
D) $150.00
E) not enough data to determine


Answer: C

Which of the following statements about the basic EOQ model is FALSE?

Which of the following statements about the basic EOQ model is FALSE?



A) If the setup cost were to decrease, the EOQ would fall.
B) If annual demand were to double, the number of orders per year would increase.
C) If the ordering cost were to increase, the EOQ would rise.
D) If annual demand were to double, the EOQ would also double.
E) All of the above statements are true.


Answer: D

Which of the following statements about the basic EOQ model is TRUE?

Which of the following statements about the basic EOQ model is TRUE?



A) If the ordering cost were to double, the EOQ would rise.
B) If annual demand were to double, the EOQ would increase.
C) If the carrying cost were to increase, the EOQ would fall.
D) If annual demand were to double, the number of orders per year would increase.
E) All of the above statements are true.


Answer: E

Most inventory models attempt to minimize:

Most inventory models attempt to minimize:



A) the likelihood of a stockout.
B) the number of items ordered.
C) total inventory-based costs.
D) the number of orders placed.
E) the safety stock.


Answer: C

A certain type of computer costs $1,000, and the annual holding cost is 25% of the value of the item. Annual demand is 10,000 units, and the order cost is $150 per order. What is the approximate economic order quantity?

A certain type of computer costs $1,000, and the annual holding cost is 25% of the value of the item. Annual demand is 10,000 units, and the order cost is $150 per order. What is the approximate economic order quantity?



A) 16
B) 70
C) 110
D) 183
E) 600


Answer: C

If the actual order quantity is the economic order quantity in a problem that meets the assumptions of the economic order quantity model shown below, the average amount of inventory on hand:

If the actual order quantity is the economic order quantity in a problem that meets the assumptions of the economic order quantity model shown below, the average amount of inventory on hand:


Q* = sqrt 2DS/H

A) is smaller than the holding cost per unit.
B) is zero.
C) is one-half of the economic order quantity.
D) is affected by the amount of product cost.
E) goes down if the holding cost per unit goes down.


Answer: C

What is the primary purpose of the basic economic order quantity model shown below?

What is the primary purpose of the basic economic order quantity model shown below?


Q* = sqrt 2DS/H

A) to calculate the reorder point, so that replenishments take place at the proper time
B) to minimize the sum of carrying cost and holding cost
C) to maximize the customer service level
D) to minimize the sum of setup cost and holding cost
E) to calculate the optimum safety stock


Answer: D

Which of the following is NOT an assumption of the economic order quantity model shown below?

Which of the following is NOT an assumption of the economic order quantity model shown below?


Q* = sqrt 2DS/H

A) Demand is known, constant, and independent.
B) Lead time is known and constant.
C) Quantity discounts are not possible.
D) Production and use can occur simultaneously.
E) The only variable costs are setup cost and holding (or carrying) cost.


Answer: D

Which of the following is an element of inventory holding costs?

Which of the following is an element of inventory holding costs?



A) housing costs
B) material handling costs
C) investment costs
D) pilferage, scrap, and obsolescence
E) All of the above are elements of inventory holding costs.


Answer: E

Among the advantages of cycle counting is that it:

Among the advantages of cycle counting is that it:



A) makes the annual physical inventory more acceptable to management.
B) does not require the detailed records necessary when annual physical inventory is used.
C) does not require highly trained people.
D) allows more rapid identification of errors and consequent remedial action than is possible with annual physical inventory.
E) does not need to be performed for less expensive items.


Answer: D

Which of the following statements regarding control of service inventories is TRUE?

Which of the following statements regarding control of service inventories is TRUE?



A) Service inventory is a fictional concept, because services are intangible.
B) Service inventory needs no safety stock, because there's no such thing as a service stockout.
C) Effective control of all goods leaving the facility is one applicable technique.
D) Service inventory has carrying costs but no setup costs.
E) Good personnel selection, training, and discipline are easy.


Answer: C

Cycle counting:

Cycle counting:



A) is a process by which inventory records are verified once a year.
B) eliminates annual inventory adjustments.
C) provides a measure of inventory turnover.
D) assumes that all inventory records must be verified with the same frequency.
E) assumes that the most frequently used items must be counted more frequently.


Answer: B

ABC analysis is based upon the principle that:

ABC analysis is based upon the principle that:



A) all items in inventory must be monitored very closely.
B) there are usually a few critical items, and many items that are less critical.
C) an item is critical if its usage is high.
D) more time should be spent on class "C" items because there are many more of them.
E) as with grade distributions in many MBA courses, there should be more medium-level "B" items than either "A" or "C" items.


Answer: B

All EXCEPT which of the following statements about ABC analysis are true?

All EXCEPT which of the following statements about ABC analysis are true?



A) In ABC analysis, inventory may be categorized by measures other than dollar volume.
B) ABC analysis categorizes on-hand inventory into three groups based on annual dollar volume.
C) ABC analysis is an application of the Pareto principle.
D) ABC analysis suggests that all items require the same high degree of control.
E) ABC analysis suggests that there are the critical few and the trivial many inventory items.


Answer: D

Which of the following statements about ABC analysis is FALSE?

Which of the following statements about ABC analysis is FALSE?



A) ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings.
B) In ABC analysis, "A" items should have tighter physical inventory control than "B" or "C" items have.
C) In ABC analysis, forecasting methods for "C" items may be less sophisticated than for "A" items.
D) ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.
E) Criteria other than annual dollar volume, such as high holding cost or delivery problems, can determine item classification in ABC analysis.


Answer: D

Which of the following is NOT one of the four main types of inventory?

Which of the following is NOT one of the four main types of inventory?



A) raw material inventory
B) work-in-process inventory
C) maintenance/repair/operating supply inventory
D) safety stock inventory
E) finished-goods inventory


Answer: D

Which of the following would NOT generally be a motive for a firm to hold inventories?

Which of the following would NOT generally be a motive for a firm to hold inventories?



A) to decouple various parts of the production process
B) to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand
C) to take advantage of quantity discounts
D) to minimize holding costs
E) to hedge against inflation


Answer: D

Which of the following is a function of inventory?

Which of the following is a function of inventory?



A) to decouple various parts of the production process
B) to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand
C) to take advantage of quantity discounts
D) to hedge against inflation
E) All of the above are functions of inventory.


Answer: E

Which of the following statements regarding Amazon.com is FALSE?

Which of the following statements regarding Amazon.com is FALSE?



A) The company was opened by Jeff Bezos in 1995.
B) The company was founded as, and still is, a "virtual" retailer with no inventory.
C) The company is now a world-class leader in warehouse automation and management.
D) The company uses both United Parcel Service and the U.S. Postal Service as shippers.
E) Amazon obtains its competitive advantage through inventory management.


Answer: B

Outsourcing:

Outsourcing:



A) transfers traditional internal activities to outside vendors.
B) utilizes the efficiency that comes with specialization.
C) allows the outsourcing firm to focus on its key success factors.
D) All of the above are true of outsourcing.
E) None of the above is true of outsourcing.


Answer: D

Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, how many weeks of supply does the firm hold?

Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, how many weeks of supply does the firm hold?



A) 12.50
B) 5.20
C) 2.60
D) 0.08
E) 4.16


Answer: E

Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, what is the inventory turnover?

Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, what is the inventory turnover?



A) 12.50
B) 10.00
C) 42.00
D) 4.16
E) 20.00


Answer: A

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