Chapter 8

Question 1

Operations management

Answer 1

The area of management responsible for the activities necessary to produce goods and services.

Question 2

Production

Answer 2

One of the four functions of business

Question 3

Conversion

Answer 3

The process of changing and improving resources to create goods or services.

Question 4

Materials processing

Answer 4

Changing the form of raw materials for another use

Question 5

Manufacturers

Answer 5

A type of producer that uses raw materials from other producers and converts them into finished goods.

Question 6

Management

Answer 6

Plans, coordinates, and monitors a business as well as hires and trains employees

Question 7

Finance

Answer 7

Receives money from customers and plays suppliers and employee wages

Question 8

Production

Answer 8

Offers goods and services for customers

Question 9

Marketing

Answer 9

Identifies, anticipates, and satisfies customer demand

Question 10

Productivity

Answer 10

A measure of a worker’s production in a specific amount of time

Question 11

Division of labor

Answer 11

The specialization of individuals whos perform specific tasks

Question 12

Specialization

Answer 12

Enables workers to become efficient at specific roles

Question 13

Mass production

Answer 13

The manufacturing of goods in large quantities using standard techniques

Question 14

Custom manufacturing

Answer 14

Converting resources to a product that fits the specifications of a particular customer

Question 15

Production process

Answer 15

All the activities required to create a product

Question 16

Sourcing

Answer 16

Finding suppliers of material needed to produce a product

Question 17

Supplier

Answer 17

A business that sells materials, supplies, or services to an organization that creates product

Question 18

Business purchasing

Answer 18

The activity of acquiring materials, supplies, or services necessary to create a product

Question 19

Purchasing agents

Answer 19

The individuals responsible for sourcing and buying the materials needed for producing goods and services

Question 20

Inventory

Answer 20

The assortment or selection of items that a business has on hand at a particular point in time

Question 21

Direct materials inventory

Answer 21

The raw materials needed to produce a finished product

Question 22

Finished goods inventory

Answer 22

The assortment or selection of finished items for sale that a business has in stock

Question 23

Inventory management

Answer 23

The are of management involved in ordering goods, receiving them into stock on arrival, and paying vendors

Question 24

Perpetual inventory-control system

Answer 24

A method of counting inventory that always shows the quantity on hand

Question 25

Electronic data interchange

Answer 25

The standard transfer of electronic data for business transactions between organizations

Question 26

Periodic inventory-control system

Answer 26

A method of measuring inventory that involves taking a physical count of merchandise at regular periods, such as weekly, monthly, or yearly

Question 27

Inventory shrinkage

Answer 27

The difference between the perpetual inventory and the physical inventory

Question 28

Just-in-time inventory-control system

Answer 28

A method of managing inventory that keeps a minimal number of raw material on hand to meet production needs

Question 29

Quality control

Answer 29

The activity of checking products as they are produced or received to ensure the quality meets expectations

Question 30

Continuous process improvement

Answer 30

An ongoing effort to improve production processes to meet goals and increase profit

Question 31

Product planning

Answer 31

The process of deciding which products will be most strategic for the organization to produce

Question 32

New product

Answer 32

A product that is different in some way from existing products

Question 33

Product life cycle

Answer 33

The series of stages a product goes through from its beginning to the end

Question 34

Reposition

Answer 34

Marketing an existing product in a new wat to create a new opinion or view of the product in the minds of customer to increase sales

Question 35

Repackaging

Answer 35

Using new packaging for an existing product

Question 36

Image

Answer 36

The idea that people have about someone or something

Question 37

Brand

Answer 37

A name, term, or design that sets a product or business apart from its competition

Question 38

Prototype

Answer 38

A working model of a new product for testing purposes

Question 39

Trial run

Answer 39

Consists of testing a service on a few select customers to make sure everything runs smoothly

Question 40

Test marketing

Answer 40

Introduces a new product to a small portion of the target market to learn how it will sell

Question 41

Commercialization

Answer 41

The introduction stage of a new product

Question 42

Trade show

Answer 42

A large gathering of business for the purpose of displaying goods and services for sale