STUDY GUIDE 2026 COMPLETE ANSWERS
GRADED A+
⩥ Affiliate revenue model.
Answer: Companies receive a referral fee for directing business to an
affiliate
⩥ Appraisal cost.
Answer: The cost associated with uncovering defects
⩥ Automated order entry systems.
Answer: A method using telephone models to send digital orders to
suppliers.
⩥ Backwards integration.
Answer: Owning or controlling sources of raw materials and
components.
⩥ Benchmarking.
Answer: Studying other companies business practices for comparison.
,⩥ Bullwhip effect.
Answer: Inaccurate or distorted demand information created in the
supply chain.
⩥ Business to Business commerce.
Answer: Businesses buying and selling to other businesses.
⩥ Business to consumer commerce.
Answer: Businesses selling to individual consumers.
⩥ Cause and effect diagrams.
Answer: A chart that identifies potential causes of particular quality
problems.
⩥ Checklist.
Answer: A list of common defects and the number of observed
occurrences of each.
⩥ Conformance to specifications.
Answer: how well a product or service meets the targets and tolerances
set by designers.
⩥ Continuous improvement.
, Answer: A philosophy of never ending improvement.
⩥ Control charts.
Answer: Charts used to evaluate whether a process is operating within
expectations.
⩥ Crossdocking.
Answer: Eliminates storage and order picking functions of a distribution
warehouse.
⩥ Customer defined quality.
Answer: an integrated effort designed to improve quality performance at
every level of the organization.
⩥ Deming Prize.
Answer: Japanese award for companies to recognize efforts in quality
improvement.
⩥ Distribution management.
Answer: Responsible for the movement of material from the
manufacturer to the customer.
⩥ Distribution warehouse.