Question 1

The focus on value has forced many traditional goods-producing companies to reduce services for their customer benefits package.

Accepted Answer

A) True 
 B)False

Question 2

Offshoring is the same as outsourcing in terms of transferring ownership and control.

Accepted Answer

A) True 
 B)False

Question 3

"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

Accepted Answer

A) proportionality 
B) competitiveness 
C) value 
D) equity 
A) proportionality 
B) competitiveness 
C) value 
D) equity

Question 4

Outsourcing is the opposite of vertical integration.

Accepted Answer

A) True 
 B)False

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

Question 6

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 7

A large hotel-casino in Las Vegas is currently under construction.There will be an Italian restaurant in the hotel that will serve pizza.Management is trying to decide whether to make the pizza themselves or buy it frozen and simply heat it to customer order.There are two major sources of commercial-grade frozen pizza; Ma Ma's Products and the Chun-Yee Corporation.If they make the pizza themselves a substantial amount of preparation equipment will be required, along with skilled personnel.Frozen pizza needs either a conventional oven (Ma Ma's) or a microwave (Chun-Yee).Financial data is as shown below (variable costs are estimated based on an average pizza purchase):
  
a.At what volume is either Ma Ma's or Chun-Yee acceptable?
b.At what volume is the company indifferent to either Chun-Yee or make in-house?

Accepted Answer

a.Ma Ma's -- Chun-Yee:
$860 +

Question 8

When break-even analysis is applied to an outsourcing decision, the breakeven quantity is

Accepted Answer

A) the ratio of fixed costs to the difference between variable outsourcing cost and variable in-house production cost 
B) the ratio of the difference between variable outsourcing cost and variable in-house production cost to fixed costs 
C) the product of the variable costs times the fixed costs 
D) the product of the variable costs times the production quantity 
A) the ratio of fixed costs to the difference between variable outsourcing cost and variable in-house production cost 
B) the ratio of the difference between variable outsourcing cost and variable in-house production cost to fixed costs 
C) the product of the variable costs times the fixed costs 
D) the product of the variable costs times the production quantity

Question 9

While cultural differences are important in managing operations in different countries, they have little impact in designing the overall value chain.

Accepted Answer

A) True 
 B)False

Question 10

A U.S.motorcycle manufacturer has the option of either making the gas tank in their newly designed cycle, or subcontracting it out to a Singapore manufacturer.Costs for the two options are:
 
a.Which option would be preferred at an annual volume of 1, 000 gas tanks?
b.Which option would be preferred at an annual volume of 5,000 gas tanks?
c.For what range of production volume would it be better to make the gas tanks in-house?

Accepted Answer

a.Make: TC = $15,000 + $21.50(1000) = $3

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

A competitively dominant customer experience is often called a

Accepted Answer

A) perceived benefit 
B) preemptive strike 
C) moment of truth 
D) value proposition 
A) perceived benefit 
B) preemptive strike 
C) moment of truth 
D) value proposition

Question 14

Differentiate a supply chain from a value chain.

Accepted Answer

A supply chain is the portion of the val

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Global value chains face higher levels of risk and uncertainty, requiring more inventory and day-to-day monitoring to prevent product shortages.

Accepted Answer

A) True 
 B)False

Question 17

Proportional increases or decreases in perceived benefits as well as price or cost result in no net change in value.

Accepted Answer

A) True 
 B)False

Question 18

Vertical integration is a modern method of outsourcing.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Third party "system integrators" are often used for vertical integration strategies.

Accepted Answer

A) True 
 B)False

The focus on value has forced many traditional goods-producing companies to reduce services for their customer benefits package.

Offshoring is the same as outsourcing in terms of transferring ownership and control.

"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

Outsourcing is the opposite of vertical integration.

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

When break-even analysis is applied to an outsourcing decision, the breakeven quantity is

While cultural differences are important in managing operations in different countries, they have little impact in designing the overall value chain.

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

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

A competitively dominant customer experience is often called a

Differentiate a supply chain from a value chain.

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

Global value chains face higher levels of risk and uncertainty, requiring more inventory and day-to-day monitoring to prevent product shortages.

Proportional increases or decreases in perceived benefits as well as price or cost result in no net change in value.

Vertical integration is a modern method of outsourcing.

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

Third party "system integrators" are often used for vertical integration strategies.

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

Filters

Exam 2: Value Chains

The focus on value has forced many traditional goods-producing companies to reduce services for their customer benefits package.

Offshoring is the same as outsourcing in terms of transferring ownership and control.

"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

Outsourcing is the opposite of vertical integration.

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

When break-even analysis is applied to an outsourcing decision, the breakeven quantity is

While cultural differences are important in managing operations in different countries, they have little impact in designing the overall value chain.

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

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

A competitively dominant customer experience is often called a

Differentiate a supply chain from a value chain.

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

Global value chains face higher levels of risk and uncertainty, requiring more inventory and day-to-day monitoring to prevent product shortages.

Proportional increases or decreases in perceived benefits as well as price or cost result in no net change in value.

Vertical integration is a modern method of outsourcing.

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

Third party "system integrators" are often used for vertical integration strategies.

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

Filters