Exam 1: Product Line Planning and the Systems Approach

A local pest control company has equipment cost $150,000 and it is estimated to have a lifetime of 7.5 years using a straight line depreciation.Additional fixed costs per year are $100,000.Variable costs per pest control service are $40 and the price per unit averages $125.What will annual profit be if the company services 475 customers annually? How many customers are needed to break even?

One of the most important functions of the P/OM system is _____.Raw materials and components have lower utility (for customers) before this function is employed.

Operations management is the systematic planning and control of operations.

_____ is the stage at which P/OM development is internally supportive to the company's competitive position.

P/OM is at the hub of the business model and requires an understanding of the various functional business partners to achieve successful strategic planning.

The director of quality is accountable for controlling the flow of input materials to the line.

Variable costs are also called indirect costs because they cannot be applied directly,without ambiguity,to each unit that is processed.

The systems viewpoint requires strategic planning.

The systems approach called _____ is characteristic of philosophy and the humanities.

Production and operations management is linked to all other managerial functions in the organization and is applicable to both manufacturing and services.

_____ companies operate on the premise that there is no competitive advantage to be gained by changing the production process.

Discuss the issue of inventory in both services and manufacturing,

The systems point of view requires consideration of P/OM dealing with all business functions,such as marketing and finance.

Strategies do not have to be changed if goals can't be achieved.