Question 1

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 2

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 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) pre-production services 
B) production processes 
C) post-production services 
D) value creation 
A) pre-production services 
B) production processes 
C) post-production services 
D) value creation

Question 5

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 6

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 7

The United States has experienced three waves of outsourcing.Which of the following is not one of the waves?

Accepted Answer

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

Question 8

A vertical integration strategy provides a firm more control and generally reduces the complexity of managing the value chain.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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.Alternative two is to outsource for a total cost of $80 per unit.Determine the breakeven quantity and determine if they should make the item in-house or outsource it.

Accepted Answer

VC₁ = $30 VC₂ = $8

Question 11

Operational structure of the value chain deals with

Accepted Answer

A) management hierarchy 
B) vertical integration 
C) configuration of resources 
D) culture 
A) management hierarchy 
B) vertical integration 
C) configuration of resources 
D) culture

Question 12

Explain a value proposition.Relate this to a customer benefits package of goods and services

Accepted Answer

A competitively dominant customer experi

Question 13

A vertical integration strategy provides a firm more control while generally reducing the complexity of managing the value chain.

Accepted Answer

A) True 
 B)False

Question 14

Contrast the two views of a value chain.What is the significance of each?

Accepted Answer

The first view is the classic process fl

Question 15

A value chain describes the flow of customer information through a production system.

Accepted Answer

A) True 
 B)False

Question 16

A value chain views an organization from an integrative perspective of goods and services, while a supply chain focuses mainly on the creation of physical goods.

Accepted Answer

A) True 
 B)False

Question 17

A competitively dominant customer experience is often called a value proposition.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not true? To increase value, an organization must

Accepted Answer

A) decrease price or cost while holding perceived benefits constant. 
B) hold perceived benefits constant while increasing price or cost. 
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) hold perceived benefits constant while increasing price or cost. 
C) increase perceived benefits while holding price or cost constant. 
D) increase perceived benefits while reducing price or cost.

Question 19

Define value and discuss three (3) ways for organizations to increase value.

Accepted Answer

Value is the perception of the benefits

Question 20

Offshoring generally lowers unit costs.

Accepted Answer

A) True 
 B)False

Exam 2: Value Chains

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

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

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

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

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

The United States has experienced three waves of outsourcing.Which of the following is not one of the waves?

A vertical integration strategy provides a firm more control and generally reduces the complexity of managing the value chain.

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

Operational structure of the value chain deals with

Explain a value proposition.Relate this to a customer benefits package of goods and services

A vertical integration strategy provides a firm more control while generally reducing the complexity of managing the value chain.

Contrast the two views of a value chain.What is the significance of each?

A value chain describes the flow of customer information through a production system.

A value chain views an organization from an integrative perspective of goods and services, while a supply chain focuses mainly on the creation of physical goods.

A competitively dominant customer experience is often called a value proposition.

Which of the following is not true? To increase value, an organization must

Define value and discuss three (3) ways for organizations to increase value.

Offshoring generally lowers unit costs.

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

Work Measurement, Learning Curves, and Standards

Queuing Analysis

Modeling Using Linear Programming

Simulation

Decision Analysis

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