A new, energy-efficient furnace is being installed in a steel factory. Because it

would have added 10% to the cost of the furnace, management has decided not to

install the optional safety override for the furnace. This decision is most likely to

lead to which of the following? - ANSWER- An increase in legal costs

Refers to the organizational issue of balancing financial profitability with

environmental responsibility - ANSWER- sustainability

Operations managers rarely become involved with worker safety or environmental

pollution complaints because such ethical issues are only handled by an

organizations legal department. True or False - ANSWER- False

SWOT analysis is used as a tool when a firm crafts a strategy that helps

distinguish itself among competitors, develops competitive advantages, and

avoids barriers within the business environment. - ANSWER- strategic

The difference between the lowest cost producer of a good and the next lowest cost

producer of the same good is known as a - ANSWER- Relative advantage

Characteristics associated with a perpetual inventory system - ANSWER- -when a

company needs to know exact inventory balances at all times

-when a company wants accurate financial statements

Under what two conditions should I periodic review system be adopted -

ANSWER- -When a supplier will only deliver at a specific interval

-when a company must manually track inventory levels

SWOT analysis is used as a tool when used to uncover exploitable

opportunities within the competitive landscape. - ANSWER- simple

What best describes a competitive advantage? - ANSWER- A capability valued by

customers that gives a firm in edge over its rivals


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