QUESTION 30

The total output from a production system in one day is 500 units and the total labor necessary to produce these 500 units is 250 hours. Using the appropriate productivity measure, which of the following numbers represents the resulting productivity?

a. 1.000

b. 1.428

c. 0.700

d. 0.411

e. None of these.

QUESTION 31

The basic EOQ model includes

a. annual holding and shortage costs.

b. annual ordering and holding costs.

c. annual stockout and ordering costs.

d. annual carrying and holding costs.

e. none of these.

QUESTION 32

A rice mill in south Louisiana has purchased the trucking firm that transports its packaged rice products to the distributors. This is an example of

a. horizontal integration.

b. forward integration.

c. backward integration.

d. current transformation.

e. keiretsu.

QUESTION 33

The EOQ is optimal because it

a. minimizes the total inventory cost.

b. minimizes the inventory ordering cost.

c. minimizes the inventory holding cost.

d. maximizes the on-hand inventory.

e. does none of these.

QUESTION 34

As a determinant of quality, reliability refers to

a. the ability of a product to perform service consistently, dependably, and correctly.

b. the useful life of the product.

c. service after sale.

d. the ability of the products manufacturer to convey trust and confidence.

e. none of the above.