Question 1

What is an advantage of making a product correctly from the outset?

Accepted Answer

A)  It allows employees to make better use of their time and materials. 
B)  It gives the company more time to rework defective products. 
C)  It makes the transformation process slower and more deliberate. 
D)  It allows the company to pinpoint quality problems in the production system. 
E)  It eliminates the need to make other products. 
A)  It allows employees to make better use of their time and materials. 
B)  It gives the company more time to rework defective products. 
C)  It makes the transformation process slower and more deliberate. 
D)  It allows the company to pinpoint quality problems in the production system. 
E)  It eliminates the need to make other products.

Question 2

All of the following are advantages of outsourcing EXCEPT it

Accepted Answer

A)  improves product quality. 
B)  speeds up the time it takes products to get to the customer. 
C)  frees companies from having to focus on customer satisfaction. 
D)  makes the supply chain more efficient. 
E)  gives companies a competitive advantage. 
A)  improves product quality. 
B)  speeds up the time it takes products to get to the customer. 
C)  frees companies from having to focus on customer satisfaction. 
D)  makes the supply chain more efficient. 
E)  gives companies a competitive advantage.

Question 3

Amir runs an arena that hosts sporting and music events. When booking these events, he must consider how many people would be interested in buying tickets. Based on the demand, he must set his ticket prices at the appropriate level. Which challenge is associated with providing this type of service?

Accepted Answer

A)  It is difficult to determine the appropriate level of customer contact required when providing such a service. 
B)  With services like this, it is difficult to ensure that the produced outputs will be worth more than the combined costs of the inputs. 
C)  It is difficult to accurately estimate the demand to match the right supply of a service. 
D)  When providing this type of service, it is difficult to balance in-person and online ticket sales. 
E)  It is difficult to convince customers to spend money on tangible services like this. 
A)  It is difficult to determine the appropriate level of customer contact required when providing such a service. 
B)  With services like this, it is difficult to ensure that the produced outputs will be worth more than the combined costs of the inputs. 
C)  It is difficult to accurately estimate the demand to match the right supply of a service. 
D)  When providing this type of service, it is difficult to balance in-person and online ticket sales. 
E)  It is difficult to convince customers to spend money on tangible services like this.

Question 4

Bethany is an inventory manager for a shoe store. She must determine how many pairs of each style of shoes, boots, and sandals to hold in inventory. All of the following are variables she should consider EXCEPT

Accepted Answer

A)  her shoe style preferences. 
B)  the usage rate of the shoes, boots, and sandals. 
C)  the cost of maintaining the shoes, boots, and sandals in inventory. 
D)  future costs of inventory. 
E)  the cost of the shoes, boots, and sandals themselves. 
A)  her shoe style preferences. 
B)  the usage rate of the shoes, boots, and sandals. 
C)  the cost of maintaining the shoes, boots, and sandals in inventory. 
D)  future costs of inventory. 
E)  the cost of the shoes, boots, and sandals themselves.

Question 5

What is a defining characteristic of a service?

Accepted Answer

A)  The outcome of a service is tangible. 
B)  The delivery of a service requires little customer contact. 
C)  The performance of a service occurs at the point of consumption. 
D)  Demand for a service is easy to calculate. 
E)  Services do not undergo a transformation process. 
A)  The outcome of a service is tangible. 
B)  The delivery of a service requires little customer contact. 
C)  The performance of a service occurs at the point of consumption. 
D)  Demand for a service is easy to calculate. 
E)  Services do not undergo a transformation process.

Question 6

A company is determining the demand for a new product and how much consumers are willing to pay for it. In order to do this, the company should use

Accepted Answer

A)  case studies. 
B)  marketing research. 
C)  trial and error. 
D)  successful past experiences. 
E)  intuition. 
A)  case studies. 
B)  marketing research. 
C)  trial and error. 
D)  successful past experiences. 
E)  intuition.

Question 7

A consumer electronics company does not store any of its materials in the warehouse. Instead, the company's procurement department orders small quantities of materials as and when they are required. The vendors supply the ordered material directly to the company's manufacturing unit a day or two before the production starts. This arrangement helps the company reduce costs and boost efficiency. This scenario best illustrates

Accepted Answer

A)  continuous manufacturing systems. 
B)  contract manufacturing. 
C)  just-in-time inventory management. 
D)  outsourcing. 
E)  mass customization. 
A)  continuous manufacturing systems. 
B)  contract manufacturing. 
C)  just-in-time inventory management. 
D)  outsourcing. 
E)  mass customization.

Question 8

Service providers are often more limited than manufacturers in selecting work methods, assigning jobs, scheduling work, and exercising control over operations because

Accepted Answer

A)  services are not labor-intensive. 
B)  services are highly standardized. 
C)  services cannot be customized. 
D)  of their tangibility. 
E)  of their need for customer contact. 
A)  services are not labor-intensive. 
B)  services are highly standardized. 
C)  services cannot be customized. 
D)  of their tangibility. 
E)  of their need for customer contact.

Question 9

Logo Designs creates promotional products for small companies. It takes a customer's logo and places it on products such as drawstring bags, coffee mugs, and pens. It produces relatively few units of each product. Because of the low level of output it produces, this company charges a higher price per unit of the product. What type of organization is Logo Designs?

Accepted Answer

A)  a fixed organization 
B)  a project organization 
C)  an intermittent organization 
D)  a process organization 
E)  a service organization 
A)  a fixed organization 
B)  a project organization 
C)  an intermittent organization 
D)  a process organization 
E)  a service organization

Question 10

A secure, public ledger that records all transactions and is spread across multiple computers is referred to as

Accepted Answer

A)  the blockchain. 
B)  total quality management. 
C)  a router. 
D)  a JIT system. 
E)  a material-requirements plan. 
A)  the blockchain. 
B)  total quality management. 
C)  a router. 
D)  a JIT system. 
E)  a material-requirements plan.

Question 11

All of the following are processes through which an airline transforms inputs such as employees, time, money, and equipment EXCEPT

Accepted Answer

A)  maintaining equipment. 
B)  booking flights. 
C)  flying airplanes. 
D)  training crews. 
E)  eliminating food service. 
A)  maintaining equipment. 
B)  booking flights. 
C)  flying airplanes. 
D)  training crews. 
E)  eliminating food service.

Question 12

Ivan is an operations manager of a chain of amusement parks. Before she determines a new location for a park, she must forecast what the customer demand will be, so she can determine the appropriate capacity. Why is it important for Ivan to efficiently plan the park's capacity needs?

Accepted Answer

A)  Capacity levels that fall short can drive operation costs up due to unused and expensive resources. 
B)  Once a capacity decision has been implemented, changing the decision can incur substantial costs. 
C)  When there is more capacity available than needed, the organization may lose customers. 
D)  Too much capacity can result in unmet demand. 
E)  Capacity should reflect future demand and stakeholder desires from the beginning because adjusting for these things later is impossible. 
A)  Capacity levels that fall short can drive operation costs up due to unused and expensive resources. 
B)  Once a capacity decision has been implemented, changing the decision can incur substantial costs. 
C)  When there is more capacity available than needed, the organization may lose customers. 
D)  Too much capacity can result in unmet demand. 
E)  Capacity should reflect future demand and stakeholder desires from the beginning because adjusting for these things later is impossible.

Question 13

A hospital that has a laboratory, an emergency department, an intensive care unit, and other departments would best be classified as a(n) ________ organization.

Accepted Answer

A)  intermittent 
B)  project 
C)  continuous manufacturing 
D)  fixed 
E)  assembly line 
A)  intermittent 
B)  project 
C)  continuous manufacturing 
D)  fixed 
E)  assembly line

Question 14

Health care, real estate, and tax preparation are all examples of ________ services.

Accepted Answer

A)  low-contact 
B)  impersonal 
C)  low-level 
D)  high-contact 
E)  tangible 
A)  low-contact 
B)  impersonal 
C)  low-level 
D)  high-contact 
E)  tangible

Question 15

Mario is the head chef at an Italian restaurant. He imports many of his ingredients from Italy and prepares them using family recipes that have been passed down for generations. From the perspective of operations, the food he sells to customers and the authentic Italian atmosphere he provides are

Accepted Answer

A)  components. 
B)  inputs. 
C)  outputs. 
D)  stocks. 
E)  inventories. 
A)  components. 
B)  inputs. 
C)  outputs. 
D)  stocks. 
E)  inventories.

Question 16

Discuss the challenges faced by a service organization during the management of its operations.

Accepted Answer

A service organization is likely to face

Question 17

Luxe Designs Inc. is a premium jeweler. It has a team of jewelry experts who design jewelry for each client from scratch. Everything is made to meet the specific requirements of the clients, and no two jewelry pieces produced by this company are ever identical. This is an example of

Accepted Answer

A)  customization. 
B)  standardization. 
C)  mass production. 
D)  crowdsourcing. 
E)  benchmarking. 
A)  customization. 
B)  standardization. 
C)  mass production. 
D)  crowdsourcing. 
E)  benchmarking.

What is an advantage of making a product correctly from the outset?

All of the following are advantages of outsourcing EXCEPT it

Amir runs an arena that hosts sporting and music events. When booking these events, he must consider how many people would be interested in buying tickets. Based on the demand, he must set his ticket prices at the appropriate level. Which challenge is associated with providing this type of service?

Bethany is an inventory manager for a shoe store. She must determine how many pairs of each style of shoes, boots, and sandals to hold in inventory. All of the following are variables she should consider EXCEPT

What is a defining characteristic of a service?

A company is determining the demand for a new product and how much consumers are willing to pay for it. In order to do this, the company should use

Service providers are often more limited than manufacturers in selecting work methods, assigning jobs, scheduling work, and exercising control over operations because

A secure, public ledger that records all transactions and is spread across multiple computers is referred to as

All of the following are processes through which an airline transforms inputs such as employees, time, money, and equipment EXCEPT

Ivan is an operations manager of a chain of amusement parks. Before she determines a new location for a park, she must forecast what the customer demand will be, so she can determine the appropriate capacity. Why is it important for Ivan to efficiently plan the park's capacity needs?

A hospital that has a laboratory, an emergency department, an intensive care unit, and other departments would best be classified as a(n) ________ organization.

Health care, real estate, and tax preparation are all examples of ________ services.

Mario is the head chef at an Italian restaurant. He imports many of his ingredients from Italy and prepares them using family recipes that have been passed down for generations. From the perspective of operations, the food he sells to customers and the authentic Italian atmosphere he provides are

Discuss the challenges faced by a service organization during the management of its operations.

Luxe Designs Inc. is a premium jeweler. It has a team of jewelry experts who design jewelry for each client from scratch. Everything is made to meet the specific requirements of the clients, and no two jewelry pieces produced by this company are ever identical. This is an example of

The Dynamics of Business and Economics

Business Ethics and Social Responsibility

Business in a Borderless World

Options for Organizing Business

Small Business, Entrepreneurship, and Franchising

The Nature of Management

Organization, Teamwork, and Communication

Motivating the Workforce

Managing Human Resources

Customer-Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Accounting and Financial Statements

Money and the Financial System

Financial Management and Securities Markets

Personal Financial Planning and Legal and Regulatory Environment

Appendix A: Guidelines for the Development of the Business Plan

Appendix B: Personal Career Plan

Appendix C: Risk: The Basics of Risk Management

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Exam 8: Managing Operations and Supply Chains

What is an advantage of making a product correctly from the outset?

All of the following are advantages of outsourcing EXCEPT it

Amir runs an arena that hosts sporting and music events. When booking these events, he must consider how many people would be interested in buying tickets. Based on the demand, he must set his ticket prices at the appropriate level. Which challenge is associated with providing this type of service?

Bethany is an inventory manager for a shoe store. She must determine how many pairs of each style of shoes, boots, and sandals to hold in inventory. All of the following are variables she should consider EXCEPT

What is a defining characteristic of a service?

A company is determining the demand for a new product and how much consumers are willing to pay for it. In order to do this, the company should use

Service providers are often more limited than manufacturers in selecting work methods, assigning jobs, scheduling work, and exercising control over operations because

A secure, public ledger that records all transactions and is spread across multiple computers is referred to as

All of the following are processes through which an airline transforms inputs such as employees, time, money, and equipment EXCEPT

Ivan is an operations manager of a chain of amusement parks. Before she determines a new location for a park, she must forecast what the customer demand will be, so she can determine the appropriate capacity. Why is it important for Ivan to efficiently plan the park's capacity needs?

A hospital that has a laboratory, an emergency department, an intensive care unit, and other departments would best be classified as a(n) ________ organization.

Health care, real estate, and tax preparation are all examples of ________ services.

Mario is the head chef at an Italian restaurant. He imports many of his ingredients from Italy and prepares them using family recipes that have been passed down for generations. From the perspective of operations, the food he sells to customers and the authentic Italian atmosphere he provides are

Discuss the challenges faced by a service organization during the management of its operations.

Luxe Designs Inc. is a premium jeweler. It has a team of jewelry experts who design jewelry for each client from scratch. Everything is made to meet the specific requirements of the clients, and no two jewelry pieces produced by this company are ever identical. This is an example of

The Dynamics of Business and Economics

Business Ethics and Social Responsibility

Business in a Borderless World

Options for Organizing Business

Small Business, Entrepreneurship, and Franchising

The Nature of Management

Organization, Teamwork, and Communication

Motivating the Workforce

Managing Human Resources

Customer-Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Accounting and Financial Statements

Money and the Financial System

Financial Management and Securities Markets

Personal Financial Planning and Legal and Regulatory Environment

Appendix A: Guidelines for the Development of the Business Plan

Appendix B: Personal Career Plan

Appendix C: Risk: The Basics of Risk Management

Filters