Question 1

Service organizations generally

are in close proximity to the customer

rely on physical inventory

take advantage of patents

can delegate human behavior and marketing skills

Question 2

Which one of the following has the highest goods content?

medicine prescription

computer repair

automobile loan

symphony performance

Question 3

The quality revolution is most related to

continuous improvement

mass production

time-based competition


Question 4

A golf simulator in a retail sports store is an example of

non- durable goods replacing services

primary good

goods content


Question 5

Service management skills would include all of the following except

accounting and finance

knowledge and technical expertise about operations

marketing and cross-selling

human interaction

Question 6

The three issues that are at the core of operations management include all of the following except





Question 7

Which of the following would be the lowest in goods content and highest in service content?

fast food restaurant

attending a theater production

getting an oil change for your car

filling a medical prescription

Question 8

Support processes would typically include all of the following except

inventory management

customer help desk operations

research and development

manufacturing and assembly

Question 9

A support process could be any of the following except

assembling automobiles

purchasing materials and supplies

managing inventory

installing a product

Question 10

Which of the following is not a key activity of an operations manager?

translating market knowledge into goods, services, and processes

continually learning and adapting to global and environmental changes

managing cash flows and strategic investments

exploiting technology to improve productivity

Question 11

A value creation process could be any of the following except


shipping a customer’s order

providing a home mortgage

assembling a dishwasher

purchasing production material

Moving to another question will save this response.

Question 12

Which of the following is not a current challenge to OM?




mass production

Question 13

Which one of the following is not an example of biztainment?

iPhone applications

automobile leasing

product demonstrations

virtual factory tours

Question 14

Which of the following is the correct sequence describing the evolution of operations management?

efficiency, customization, quality, service, sustainability, time-based competition

quality, efficiency, time-based competition, sustainability, customization, service

efficiency, quality, customization, time-based competition, service, sustainability

quality, service, customization, time-based competition, efficiency, sustainability

Question 15

In relating operations management and the customer benefit package (CBP), which is the correct timing sequence?

Operating system processes lead to customer needs and expectations, which lead to customer benefit package.

Customer benefit package leads to customer needs and expectations, which lead to operating system processes.

Customer needs and expectations lead to customer benefit package, which leads to operating system processes.

Customer needs and expectations lead to operating system processes, which lead to customer benefit package.

Question 16

Which of the following generally does not result from vertical integration?

less control over cost

more control over quality

more complexity in managing

higher levels of risk

Question 17

When break-even analysis is applied to an outsourcing decision, the breakeven quantity is

the ratio of fixed costs to the difference between variable outsourcing cost and variable in-house production cost

the ratio of the difference between variable outsourcing cost and variable in-house production cost to fixed costs

the product of the variable costs times the fixed costs

the product of the variable costs times the production quantity

Question 18

The control of Wal-Mart’s value chain is ______, while the control of General Electric’s is ________.

post-production focused, preproduction focused

horizontal, vertical

centralized, decentralized

backward integrated, forward integrated

Question 19

From the pre- and post-service view of a value chain, goods and services design, contract negotiation and consulting services would be considered

pre-production services

production processes

post-production services

value creation

Question 20

Outsourcing is

the same as offshoring

the opposite of vertical integration

the opposite of backward integration

the same as diversifying

Question 21

Operational structure of the value chain deals with

management hierarchy

vertical integration

configuration of resources


Question 22

Computer software would be an example of

an intangible good

a nondurable good

a service

a value creation process

Question 23

Which of the following is not normally considered a variable cost?



equipment lease


Question 24

For a restaurant, order-taking, bill payment and home delivery would be considered





Question 25

The first, second, and third waves of outsourcing experienced by the U.S. are

goods-producing jobs, simple service work, skilled knowledge work

simple service work, goods-producing jobs, skilled knowledge work

simple service work, skilled knowledge work, goods-producing jobs

skilled knowledge work, simple service work, goods-producing jobs

Question 26

“The perception of the benefits associated with a good, service, or bundle of goods and services in relation to what buyers are willing to pay for them” is the definition of





Question 27

____ is the process of managing information, services and physical goods to insure their availability at the right place, at the right time, at the right cost and at the right quantity, with the highest attention given to quality.

Preproduction service

Value proposition

Operational structure

Value chain integration

Question 28

In the value chain model for a hospital, patients, drugs and staff would be considered





Question 29

A company has two alternatives for meeting a customer requirement for 9,000 units of a specialty molding. If done in-house, fixed cost would be $350,000, with variable cost at $30 per unit. If outsourced, the cost is $80 per unit. Determine the breakeven point and determine if they should make the item in-house or outsource it.

breakeven point = 7,000 units; outsource

breakeven point = 7,000 units; make in-house

breakeven point = 11,667 units; outsource

breakeven point = 11,667 units; make in-house

Question 30

The United States has experienced three waves of outsourcing. Which of the following isnotone of the waves?

skilled knowledge work

mass customization

simple service work

goods-producing jobs

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