Question 1

Catherine is the operations manager of a new day spa in an upscale urban neighborhood. Customers in this neighborhood expect high quality services and products, and Catherine is struggling to use the spa's resources efficiently and effectively to provide the level of quality the customers demand. What will most likely happen if Catherine can't find a way to meet customers' demands for quality?

Accepted Answer

A)  The spa will be forced to move to a less demanding neighborhood. 
B)  The spa will be taken over by competitors in the area. 
C)  The spa will stay in business, and customers will adapt to its services and products. 
D)  The spa will be converted into a different type of business that can succeed in this area. 
E)  The spa will go out of business.

Question 2

Service providers are generally more capital-intensive than manufacturers because of the high level of customization.

Accepted Answer

A) True 
 B)False

Question 3

Brad is an appliance repair technician. He usually fixes between 5 and 10 appliances per day, so he interacts with a lot of customers with a variety of appliance issues. Brad's job is

Accepted Answer

A)  capital-intensive. 
B)  standardized. 
C)  labor-intensive. 
D)  uniform in terms of inputs. 
E)  uniform in terms of output.

Question 4

What is an example of an elaborate inspection technique?

Accepted Answer

A)  weighing the contents of a box of crackers 
B)  using chemical tests to determine the quality of a migraine medication 
C)  measuring the time it takes for a customer to receive his or her pizza 
D)  inspecting chocolate bars to make sure they are wrapped properly 
E)  checking chip bags to make sure they are sealed properly

Question 5

Vibo, a company that does online marketing for small businesses, wants to achieve a high level of quality in the services it provides. As a result, it sets a goal of winning the Malcolm Baldrige National Quality Award. Which is one of the criteria the company must meet to receive this award?

Accepted Answer

A)  inseparability of production and consumption 
B)  product management 
C)  business results 
D)  capacity 
E)  agility

Question 6

Gray is a carpenter who performs home repairs and improvements for his customers. From the perspective of operations, the money he uses to purchase his tools and the electricity he uses to run his power saw are

Accepted Answer

A)  processes. 
B)  outputs. 
C)  stocks. 
D)  inputs. 
E)  inventories.

Question 7

Motorworks is a reputable automobile manufacturing company, and Sunny Days is an established chain of travel agencies. How do the two businesses differ from each other?

Accepted Answer

A)  While Sunny Days is able to incorporate quality standards in its business, Motorworks cannot. 
B)  Measuring productivity is fairly straightforward for Motorworks when compared to Sunny Days. 
C)  Standardizing output is easier for Sunny Days when compared to Motorworks. 
D)  Motorworks faces a higher degree of variation of inputs and outputs when compared to Sunny Days. 
E)  Motorworks has more customer contacts than Sunny Days.

Question 8

Lora is a manager at a large car dealership and service shop. She oversees the transformation process and manages the logistics, quality, and productivity of the service department. Lora is a(n)

Accepted Answer

A)  finance manager. 
B)  sales manager. 
C)  marketing manager. 
D)  human resource manager. 
E)  operations manager.

Question 9

Regardless of who is responsible for product design, ________ does not stop with a blueprint for a product or a description of the service; it must also work out efficient production of the product to ensure that enough is available to satisfy customer demand.

Accepted Answer

A)  development 
B)  manufacturing 
C)  planning 
D)  testing 
E)  evaluation

Question 10

Tech Industries Inc. is a manufacturer of computer monitors. It uses a facility layout in which the workers remain in one location, and the monitors move from one worker to another. Each person in turn performs his or her required tasks. Thus, Tech Industries is using a ________ layout.

Accepted Answer

A)  product 
B)  process 
C)  project 
D)  web 
E)  fixed-position

Question 11

The emergency department at Seaside hospital can effectively handle a maximum number of 20 patients at any one particular time. This is referred to as its

Accepted Answer

A)  design. 
B)  variability. 
C)  capacity. 
D)  perishability. 
E)  utility.

Question 12

Helping Hands, a nonprofit organization, uses money, groceries, and volunteer time and labor to transform food into hot prepared meals for needy families. In this setting, which is a transformation process?

Accepted Answer

A)  paying rent for a cooking facility 
B)  traveling abroad to find less expensive ingredients 
C)  tasting the meals to make sure they are satisfactory 
D)  giving families raw ingredients and expecting them to prepare meals themselves 
E)  fundraising and promoting the cause to gain new volunteers and food donations

Question 13

What factor should an organization take into consideration when planning the location of its manufacturing facility?

Accepted Answer

A)  Customers prefer to have production facilities located nearby. 
B)  Most customer contacts occur in manufacturing facilities. 
C)  Manufacturing plants located in urban areas will increase a firm's reputation. 
D)  Facility decisions are fairly straightforward and involve few outside variables. 
E)  Facility decisions are complex and costly for an organization.

Question 14

Modular design, an operations process for manufacturing products, allows products to be repaired quickly, thus reducing the cost of labor.

Accepted Answer

A) True 
 B)False

Question 15

At the Medieval Mansion Restaurant, diners expect an authentic medieval dining experience. The wait staff are in character and dress in authentic medieval clothing, the walls of the restaurant are covered with art from the Middle Ages, and as diners eat Medieval-era foods, they are entertained by troubadours and performers. What type of service does this restaurant provide?

Accepted Answer

A)  low-contact 
B)  high-contact 
C)  high-tech 
D)  low-level 
E)  tangible

Question 16

A furniture manufacturer makes dining tables and chairs. The plant has a wood cutting department, an assembly department, and a staining department. This plant is using a ________ layout to organize its facility.

Accepted Answer

A)  fixed-position 
B)  project 
C)  process 
D)  geographical 
E)  skill-level

Question 17

At Killer Kayaks, the inventory-control manager uses material-requirements planning and schedules the precise quantity of materials needed to make all the kayaks the company plans to build each month. What basic component does the inventory-control manager need to create as part of material-requirements planning?

Accepted Answer

A)  an executive summary 
B)  a master production schedule 
C)  a promissory bill 
D)  a balance sheet 
E)  a balanced scorecard

Question 18

Nolan and his friend Peter intend to establish their own ventures. While Nolan intends to establish a manufacturing company, Peter intends to establish a multi-specialty hospital. In the context of planning the facilities for their ventures, discuss the types of facility layout that should be implemented by both, prior to the establishment of their ventures.

Accepted Answer

The answer of Nolan and his friend Peter intend to...

Question 19

Patio Products, a company that produces metal patio furniture, uses a process layout with several departments that group related processes. All of the following could be process departments in this company EXCEPT a(n) ________ department.

Accepted Answer

A)  cutting 
B)  welding 
C)  painting 
D)  polishing 
E)  marketing

Question 20

Affordable Apartments, a manufacturer that builds large apartment complexes, brings all the construction resources to a central location during production. This type of a facility layout is called a(n) ________ layout.

Accepted Answer

A)  fixed-position 
B)  product 
C)  line 
D)  continuous 
E)  intermittent

Exam 8: Managing Operations and Supply Chains