1.Canton Gourmet is a restaurant offering both Japanese and Chinese food. Customer service and contact are important parts of the business. Yet, Canton Gourmet manages its kitchen segment of the operation like a manufacturing operation. What manufacturing characteristics does the kitchen segment have?

a. tangible outputs and low customer contact
b. intangible outputs and low customer contact
c. intangible outputs and high customer contact
d. tangible outputs and high customer contact

2. Break-even analysis would be appropriate for all except which of the following?

a. Evaluating different processes
b. Deciding whether it is better to make or buy a product
c. Deciding how much of a product must be sold to make a profit
d. Deciding how to allocate overhead
e. Deciding between different products

3.  App Printing Solutions manufactures a variety of printers. To contribute to the goal of zero landfill waste, the company offers its customers a process for returning empty inkjet cartridges at no cost. Those returned cartridges can then be used again in the production of new ones. This business practice of reusing a component of an old product is called

a. design simplification.
b. design standardization.
c. reverse engineering.
d. re-engineering.
e. remanufacturing.

4. Pop Soda Co. is a large beverage bottler. It requires its tier one suppliers to gain certification to several standards, including ISO 9001 (quality) and ISO 14001 (environment). These requirements are

a. unpredictable external events.
b. the results of e-commerce.
c. predictable external factors.
d. controllable internal factors.
e. directed by the U.S. government.

5.  Marisol’s is a Spain-based apparel retailer that specializes in fast fashion. While most of its competitors outsource all production to low-cost suppliers, mainly in Asia, Marisol’s manufactures its most fashionable items at a dozen company-owned factories in Spain and in some proximity countries. Which of the following is most likely NOT one of the company’s goals in making this insourcing decision?

a. Increase the overall flexibility to meet changing demand.
b. Obtain desired product quality.
c. React to new fashion trends quickly.
d. Free management to focus on its primary business.
e. Maintain the company’s core competencies.

6.  All of the following are major causes of the bullwhip effect EXCEPT

a. demand forecast updating.
b. rationing and shortage gaming.
c. the business cycle.
d. order batching.
e. price fluctuations.