Question

QUESTION 40

Appraisal costs refer to

a. costs of reducing the potential for defects.

b. costs of inspecting and evaluating products and/or services.

c. costs caused by defective parts or products or by faulty service.

d. all of these.

e. none of these.

QUESTION 41

An example of a service factory is

a. mass media.

b. mass transportation.

c. fast food restaurants.

d. all of the above.

e. only a and b.

QUESTION 42

Which one of the following distribution systems offers quickness and reliability when emergency supplies are needed overseas?

a. Trucking.

b. Railroads.

c. Airfreight.

d. Waterways.

e. Pipelines.

QUESTION 43

In basic EOQ, the ROP is the

a. amount of demand through the lead time.

b. the minimum amount of inventory to always keep in reserve.

c. the point to reorder in terms of the amount of inventory left on-hand.

d. a and c, only.

e. none of these.

QUESTION 44

As a quality tool, which of the following are reasons for offering service guarantees?

a. Guarantees forces the service provider to focus on the customers.

b. Guarantees generates feedback.

c. Guarantees force the provider to understand the reasons for the failure.

d. Guarantees are a good marketing strategy.

e. All of the above.

Answer 1

Question 40 - (b) costs of inspecting and evaluating products and/or services

Explanation - Appraisal cost is also known as the inspection cost. where the cost can be included for the testing, inspecting and evaluating products.Other options are incorrect because they refers to the Prevention Costs.

Question 41 - (e) only a and b

Explanation - In the service factory a service is given to large body of customer and there is no interaction between the customer and service provider during the performance of service.So, here both mass media and transportation is the example of a service factory.

Question 42 - (C) airfreight

Explanation - Airfreight is the best mode of transportation.when anyone have to transport there goods and items from one country to another or in emergency cases, airfreight transportation response in a quick way.

Question 43 - (b) the minimum amount of inventory to always keep in reserve.

Explanation - Re-ordered quantity is the minimum unit of the inventory that company should have before they reorderd the inventory or product.

Question 44 - (e) All the above

Explanation - Service guarantees provide the customer feedback and more focus on the customer. It helps the customer to understand why they fail and encourage them to identify and overcome the failure.