Criminal Case
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
service
Question 4
A golf simulator in a retail sports store is an example of
non- durable goods replacing services
primary good
goods content
biztainment
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
cost
quality
utilization
efficiency
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
Answer
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 nota current challenge to OM?
Globalization
Technology
Quality
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
culture
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?
labor
transportation
equipment lease
material
Question 24
For a restaurant, order-taking, bill payment and home delivery would be considered
services
inputs
processes
outputs
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
proportionality
competitiveness
value
equity
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
suppliers
inputs
processes
outputs
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
