- (Topic 3)
Which of the following continuous improvement methodologies focuses on reduction of defects by reducing process variation?

1. A. Just-in-Time (JIT)
2. B. Kaizen
3. C. Six Sigma
4. D. Theory of constraints

Correct Answer: C

- (Topic 2)
A company most likely would consider moving a portion of its manufacturing to a second location to:

1. A. improve competitive advantage through cost control.
2. B. avoid manufacturing downtime due to material shortages.
3. C. maximize security for customer shipments.
4. D. minimize the impact of natural disasters.

Correct Answer: D

- (Topic 3)
A consumer goods manufacturer has introduced a new frozen product and encountered problems applying package labels consistently. Which of the following methodologies would be most appropriate to use to identify the root cause of the problem?

1. A. Six sigma
2. B. Statistical process control
3. C. Lean production
4. D. Theory of constraints

Correct Answer: A

- (Topic 3)
Which of the following steps is first in developing a product differentiation strategy?

1. A. Study customer needs
2. B. Define customer segments
3. C. Determine design modifications
4. D. Establish competitive priorities

Correct Answer: A

- (Topic 3)
A car manufacturer has 40000 cars in inventory, of which 5000 are electric. The manufacturer expects to sell 5000 cars per day, of which 4000 are estimated to be gasoline cars. The days of supply for electric cars is:

1. A. 40 days.
2. B. 10 days.
3. C. 8 days.
4. D. 5 days.

Correct Answer: D