1. There is ________ involved in purchasing materials without specific contracts
ID: 360245 • Letter: 1
Question
1. There is ________ involved in purchasing materials without specific contracts in place.
A. more cost B. Long term value C. Little value D. Risk
2. The bidding process offers a chance to strategically analyze jobs to determine if they
A. are a good fit B. are increasing market shares
C. are within production capacity
D. will provide a profit margin
3. Competing and earning multiple production bids can
A. give a production business and edge over their competitors B. be more than production can handle
C. require additional staff D. be a good way to ensure full production
4. What is one factor that a supplier can vary to attempt to earn an order from a potential customer?
A. Special services (e.g., packaging)
B. Customer support C. Cost D. Customization
5. What is one way a business can gain a better understanding of products customers will likely be asking for
A. Customer feedback B. Market Research
C. Focus Groups D. Historical sales data
6. When is it appropriate for the firm to look to the market when developing its strategy?
A. To identify unfilled niches in the market
B. to develop unique products not presented in the market
C. When labor costs are high D. When material costs are high
7. Unallocated supplies can be used to
A. bid on jobs that will keep the production within the optimum operating levels
B. bid on jobs that will use these materials and help reduce inventory
C. sell to a secondary market for a profit
D. returned to the supplier for a credit
8. What is the main difference between "make to order" and "make to stock"?
A. "Make to stock" systems are better because it is safer to have inventory on hand
B. Production is started when order is received in "make to order", rather than before in " make to stock systems
C. There is no difference
D. Production is started when the order is received in "make to stock" systems rather than before in "make to order" systems
9. Specialization can help a production company to
A. focus on fewer products
B. simplify production
C. limit inventory product range.
D. All of the above
10. What is one of the key factors that determines the attractiveness of a prospective work order?
A. Competiveness B. Reputation C. Profitability
D. Staffing
Explanation / Answer
1. There is ________ involved in purchasing materials without specific contracts in place.
A. more cost B. Long term value C. Little value D. Risk
Risk is the correct answer.
2. The bidding process offers a chance to strategically analyze jobs to determine if they
A. are a good fit B. are increasing market shares
C. are within production capacity
D. will provide a profit margin
A good fit. Bidding helps a customer understands what prices they are getting as compared to others.
3. Competing and earning multiple production bids can
A. give a production business and edge over their competitors B. be more than production can handle
C. require additional staff D. be a good way to ensure full production
All fours anwers in different circumstances can be true. D is the closest. and hence correct answer If I have surplus capacity, they way to use that is to enter in to multiple bids to maximize utilization
4. What is one factor that a supplier can vary to attempt to earn an order from a potential customer?
A. Special services (e.g., packaging)
B. Customer support C. Cost D. Customization
All fours anwers in different circumstances can be true. D is the closest. and hence correct answer. Generally, special services and customer support are a given and can be made a part of bid. Cost is also important and one can be out of bid of it has an unfavourable cost structure. Customization differentiates a vendor from another and can be used as bargaining tool for getting contracts as well as a slightly higher price.
5. What is one way a business can gain a better understanding of products customers will likely be asking for
A. Customer feedback B. Market Research
C. Focus Groups D. Historical sales data
Market research is the right answer. Customer Feedback and focus groups are part of it. Historical sales data can only tell the rates of growth ( or decline), nothing substantive can be made out of it as to why someone is buying the product. B is the right answer.
6. When is it appropriate for the firm to look to the market when developing its strategy?
A. To identify unfilled niches in the market
B. to develop unique products not presented in the market
C. When labor costs are high D. When material costs are high
A is the correct answer. To fulfil niches currently unfulfilled is a good way to go subjected to that those niches has sufficient volumes to sustain. Developing unique products can be a part of option A. If with the current product portfolio someone was able to fulfil the unfulfilled niches, he would have done so. Labour costs and material costs are high are important but does not help in building strategy since, they are going to be higher for everyone else and does not offer a chance to do something differently.
7. Unallocated supplies can be used to
A. bid on jobs that will keep the production within the optimum operating levels
B. bid on jobs that will use these materials and help reduce inventory
C. sell to a secondary market for a profit
D. returned to the supplier for a credit
A is correct. Unallocated supllies can be used to bid low for certain period of time to ensure that plants run optimum. Other options are valid but not universally- not every supplies can be sold in secondary market and not every supplies can be returned. There are ageing, contract concerns and also have an effect on long term assurity of suppliers.
8. What is the main difference between "make to order" and "make to stock"?
A. "Make to stock" systems are better because it is safer to have inventory on hand
B. Production is started when order is received in "make to order", rather than before in " make to stock systems
C. There is no difference
D. Production is started when the order is received in "make to stock" systems rather than before in "make to order" systems
B is correct. Make to stock means that products are prodoced for selling in future time while "made to order" means that production will start once the order is received
9. Specialization can help a production company to
A. focus on fewer products
B. simplify production
C. limit inventory product range.
D. All of the above
All are correct. Specialization means doing a few things again and again. Which in prodcution may mean that I will focus on certain products only which will simplify my production line for limited SKUs ( Stock keeping Units) and will limit my inventory in terms of range.
10. What is one of the key factors that determines the attractiveness of a prospective work order?
A. Competiveness B. Reputation C. Profitability
D. Staffing
Attractiveness of an order will be more if it improves my bottom line. Hence C is correct.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.