Question 1

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 B

Question 2

A manufacturing company needs to know whether to make in-house or buy a roller gear assembly for its new fax machine production. The company expects to produce 9,000 units per year. The following estimates have been made:
 $\begin{array}{lrr}
 &\underline{\text {Make}}&  \underline{\text {Buy }}\
  \text {Fixed cost per year  } &\$8,000&\$0\
 \text { Variable cost per part } &\$5.45&\$6.93\
\end{array}$
 
a. What is the annual cost to make the roller gear assembly in-house?
b. What is the annual cost to buy the roller gear assembly?
c. At what volume are they indifferent regarding the decision to make or buy?

Accepted Answer

a. Cost to make: $8,000 + $5.459,000) = $57,050
b. Cost to buy: $6.93 9,000) = $62,370
Make in-house since it has lower cost.
c. $8000 + $5.45X = $6.93X => X = 5405.40 = 5405

Question 3

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  True

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Nearly all value chains are managed from a centralized operational structure because of the inherent inefficiencies that are found in decentralized operational structures.

Accepted Answer

A) True 
 B)False

Question 6

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 + 12.99550,00

Question 7

Post-production services might include customer financing, customer benefit package design, and promotion/advertising.

Accepted Answer

A) True 
 B)False

Question 8

Outsourcing is

Accepted Answer

A) the same as offshoring 
B) the opposite of vertical integration 
C) the opposite of backward integration 
D) the same as diversifying 
A) the same as offshoring 
B) the opposite of vertical integration 
C) the opposite of backward integration 
D) the same as diversifying

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

One approach to increasing value is to maintain perceived benefits while increasing price or cost.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

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

Accepted Answer

A competitively dominant customer experi

Question 15

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 16

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 17

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

Accepted Answer

A multinational enterprise is an organiz

Question 18

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 19

List the variety of economic and noneconomic issues to be considered when making offshore decisions.

Accepted Answer

Low labor costs, lower import duties and

Question 20

Vertical integration is a modern method of outsourcing.

Accepted Answer

A) True 
 B)False

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

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

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

Nearly all value chains are managed from a centralized operational structure because of the inherent inefficiencies that are found in decentralized operational structures.

Post-production services might include customer financing, customer benefit package design, and promotion/advertising.

Outsourcing is

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

One approach to increasing value is to maintain perceived benefits while increasing price or cost.

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

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

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

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

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

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

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

List the variety of economic and noneconomic issues to be considered when making offshore decisions.

Vertical integration is a modern method of outsourcing.

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

Work Measurement, Learning Curves, and Standards

Filters

Exam 2: Value Chains

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

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

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

Nearly all value chains are managed from a centralized operational structure because of the inherent inefficiencies that are found in decentralized operational structures.

Post-production services might include customer financing, customer benefit package design, and promotion/advertising.

Outsourcing is

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

One approach to increasing value is to maintain perceived benefits while increasing price or cost.

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

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

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

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

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

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

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

List the variety of economic and noneconomic issues to be considered when making offshore decisions.

Vertical integration is a modern method of outsourcing.

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

Work Measurement, Learning Curves, and Standards

Filters