18. Purchasing personnel should check the reliability of potential suppliers as well as suppliers’ ability to meet delivery schedules.
19. Materials that will become part of a product during the conversion process are called raw materials.
20. The process of managing inventories to minimize both holding costs and potential stock-out costs is called inventory control.
21. The cost of running out of inventory is referred to as a holding cost.
22. Since computers have been invented, materials requirements planning(MRP) is an outdated method of controlling inventory.
23. When a company successfully applies the just-in-time system, it minimizes its inventory storage costs.
24. The responsibility for monitoring schedules to ensure that the work flows according to schedule is called follow-up.
25. Gantt charts force a manager to plan the steps required to get a job done and to specify time requirements for each part of the task.
26. The program evaluation and review technique is a management tool designed to identify and schedule major activities necessary to complete a project.
27. When using PERT, the critical path is the sequence of production activities that takes the longest time from start to finish.
28. Quality control is the process of ensuring that materials are at the right place at the right time
29. The major objective of quality control is to see that the organization produces no imperfect products.
30. When firms use inspection to monitor quality, only the finished product is examined for defects or potential problems.
31. Since ISO 9000 quality standards were developed in Switzerland and affect only European firms, they don't apply to firms in the United States doing business in Europe.
32. Productivity is a measure of output per unit of time per worker.
33. Human resources management consists of or includes all activities involved in acquiring, maintaining, and developing an organization's human resources.
34. The phase of human resources management in which an employee's skills are improved and his or her capabilities are expanded is known as maintaining.