Question 1

Pre-production services might include on-line training services, billing, and warranty service.

Accepted Answer

A) True 
 B)False

Question 2

Define multinational enterprises. What challenges do they pose to operations managers?

Accepted Answer

A multinational enterprise is an organiz

Question 3

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

Accepted Answer

A) goods-producing jobs, simple service work, skilled knowledge work 
B) simple service work, goods-producing jobs, skilled knowledge work 
C) simple service work, skilled knowledge work, goods-producing jobs 
D) skilled knowledge work, simple service work, goods-producing jobs 
A) goods-producing jobs, simple service work, skilled knowledge work 
B) simple service work, goods-producing jobs, skilled knowledge work 
C) simple service work, skilled knowledge work, goods-producing jobs 
D) skilled knowledge work, simple service work, goods-producing jobs

Question 4

Which of the following is false? To increase value, an organization must

Accepted Answer

A) decrease price or cost while holding perceived benefits constant. 
B) change both perceived benefits and price in the same proportion. 
C) increase perceived benefits while holding price or cost constant. 
D) increase perceived benefits while reducing price or cost. 
A) decrease price or cost while holding perceived benefits constant. 
B) change both perceived benefits and price in the same proportion. 
C) increase perceived benefits while holding price or cost constant. 
D) increase perceived benefits while reducing price or cost.

Question 5

John Morton, director of materials management for Computer Products Corporation (CPC) in San Jose, is now reviewing next year's plans for the supply of a component that is now purchased from Osiega Ltd., a company in Japan. The component is the PS100 power supply assembly that is used in many of CPC's products.
CPC pays the supplier more than $7 million per year for these units, and John wonders if money could be saved by developing another supplier for this component or if CPC should gear up to manufacture the power supply assemblies in-house within one of the CPC's own production plants.
John's purchasing-analysis staff has developed the following estimates:   The purchasing-analysis group has learned that CPC will need about 550,000 of the PS100 units next year. 
a.Which supply source provides the least cost for next year?
b.How many PS100 units would have to be bought next year for each of the sources to be the least-cost source?

Accepted Answer

a.TC = FC + vQ TC_OL= 50,000 + 12.99(550,00

Question 6

Explain the notion of value chain integration.

Accepted Answer

Value chain integration is the process o

Question 7

Historically, service work was outsourced before many goods-producing jobs were.

Accepted Answer

A) True 
 B)False

Question 8

Value can be increased by adding services to customer benefit packages even when the quality or features of goods cannot be improved.

Accepted Answer

A) True 
 B)False

Question 9

The organization that outsources still retains ownership of the outsourced process or function.

Accepted Answer

A) True 
 B)False

Question 10

The focus of pre-production services is on gaining a customer while that of post-production services is on keeping the customer.

Accepted Answer

A) True 
 B)False

Question 11

What makes global value chains more difficult to manage than small domestic value chains?

Accepted Answer

• Global value chains face higher levels

Question 12

Which of the following is not a component of a value chain?

Accepted Answer

A) goods and services 
B) information 
C) sources of labor 
D) financial transactions 
A) goods and services 
B) information 
C) sources of labor 
D) financial transactions

Question 13

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

Accepted Answer

A) suppliers 
B) inputs 
C) processes 
D) outputs 
A) suppliers 
B) inputs 
C) processes 
D) outputs

Question 14

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

Accepted Answer

A) labor 
B) transportation 
C) equipment lease 
D) material 
A) labor 
B) transportation 
C) equipment lease 
D) material

Question 15

Two alternatives are being considered for a customer's order whose anticipated volume is not yet known. If the firm produces in-house, the fixed cost is $340,000 and variable cost is $2.90 per unit. If the firm chooses to outsource, it will incur a fixed of $275,000 and variable cost is $3.50 per unit. Determine the breakeven quantity and a decision rule of when to outsource.

Accepted Answer

(This problem requires the student to vi

Question 16

A value chain can be considered a "cradle-to-grave" model of the operations function.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) less control over cost 
B) more control over quality 
C) more complexity in managing 
D) higher levels of risk 
A) less control over cost 
B) more control over quality 
C) more complexity in managing 
D) higher levels of risk

Question 18

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.

Accepted Answer

A) breakeven point = 7,000 units; outsource 
B) breakeven point = 7,000 units; make in-house 
C) breakeven point = 11,667 units; outsource 
D) breakeven point = 11,667 units; make in-house 
A) breakeven point = 7,000 units; outsource 
B) breakeven point = 7,000 units; make in-house 
C) breakeven point = 11,667 units; outsource 
D) breakeven point = 11,667 units; make in-house

Question 19

A reason for globalization includes shifting work closer to customers for fast delivery and customization.

Accepted Answer

A) True 
 B)False

Question 20

What are the major decisions a firm must address in designing and configuring a value chain?

Accepted Answer

These decisions include the number, type

Pre-production services might include on-line training services, billing, and warranty service.

Define multinational enterprises. What challenges do they pose to operations managers?

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

Which of the following is false? To increase value, an organization must

Explain the notion of value chain integration.

Historically, service work was outsourced before many goods-producing jobs were.

Value can be increased by adding services to customer benefit packages even when the quality or features of goods cannot be improved.

The organization that outsources still retains ownership of the outsourced process or function.

The focus of pre-production services is on gaining a customer while that of post-production services is on keeping the customer.

What makes global value chains more difficult to manage than small domestic value chains?

Which of the following is not a component of a value chain?

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

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

A value chain can be considered a "cradle-to-grave" model of the operations function.

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

A reason for globalization includes shifting work closer to customers for fast delivery and customization.

What are the major decisions a firm must address in designing and configuring a value chain?

Goods, Services, and Operations Management

Measuring Performance in Operations

Operations Strategy

Technology and Operations Management

Goods and Service Design

Process Selection, Design, and Analysis

Facility and Work Design

Supply Chain Design

Capacity Management

Forecasting and Demand Planning

Managing Inventories

Resource Management

Operations Scheduling and Sequencing

Quality Management

Quality Control and Spc

Lean Operating Systems

Project Management

Filters

Exam 2: Value Chains

Pre-production services might include on-line training services, billing, and warranty service.

Define multinational enterprises. What challenges do they pose to operations managers?

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

Which of the following is false? To increase value, an organization must

Explain the notion of value chain integration.

Historically, service work was outsourced before many goods-producing jobs were.

Value can be increased by adding services to customer benefit packages even when the quality or features of goods cannot be improved.

The organization that outsources still retains ownership of the outsourced process or function.

The focus of pre-production services is on gaining a customer while that of post-production services is on keeping the customer.

What makes global value chains more difficult to manage than small domestic value chains?

Which of the following is not a component of a value chain?

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

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

A value chain can be considered a "cradle-to-grave" model of the operations function.

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

A reason for globalization includes shifting work closer to customers for fast delivery and customization.

What are the major decisions a firm must address in designing and configuring a value chain?

Goods, Services, and Operations Management

Measuring Performance in Operations

Operations Strategy

Technology and Operations Management

Goods and Service Design

Process Selection, Design, and Analysis

Facility and Work Design

Supply Chain Design

Capacity Management

Forecasting and Demand Planning

Managing Inventories

Resource Management

Operations Scheduling and Sequencing

Quality Management

Quality Control and Spc

Lean Operating Systems

Project Management

Filters