1) Supply is a set of products or services a business offers to its customers.
Answer: TRUE
Explanation: Supply is a set of products or services a business offers to its customers.
Difficulty: 1 Easy
Topic: The Customers View of the World
Learning Objective: 01-01 Identify the drivers of customer utility.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
2) Consumption utility is composed of price and convenience.
Answer: FALSE
Explanation: Consumption utility is composed of performance and fit.
Difficulty: 1 Easy
Topic: The Customers View of the World
Learning Objective: 01-01 Identify the drivers of customer utility.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
3) "Firm A Pareto dominates firm B" means that firm A's product or service is inferior to that of firm B on all dimensions of the customer utility function.
Answer: FALSE
Explanation: "Firm A Pareto dominates firm B" means that firm A's product or service is superior to that of firm B on all dimensions of the customer utility function.
Difficulty: 1 Easy
Topic: A Firms Strategic Trade-Offs
Learning Objective: 01-02 Explain inefficiencies and determine if a firm is on the efficient frontier.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
4) A firm reduces inefficiencies by making trade-offs.
Answer: FALSE
Explanation: A firm reduces inefficiencies so that it does not have to sacrifice one performance dimension versus another.
Difficulty: 2 Medium
Topic: Overcoming Inefficiencies: The Three System Inhibitors
Learning Objective: 01-02 Explain inefficiencies and determine if a firm is on the efficient frontier.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
5) Reducing inefficiencies will increase a firm's profitability.
Answer: TRUE
Explanation: Reducing inefficiencies by increasing what the customer is willing to pay and/or decreasing costs will increase a firm's profitability.
Difficulty: 1 Easy
Topic: Overcoming Inefficiencies: The Three System Inhibitors
Learning Objective: 01-02 Explain inefficiencies and determine if a firm is on the efficient frontier.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
6) Every work requires operations.
Answer: TRUE
Explanation: All work requires operations to do the work and/or to improve the work.
Difficulty: 1 Easy
Topic: Operations Management: An Overview of the Book
Learning Objective: 01-04 Explain what work in operations management looks like.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
7) "Who are the customers?" is a key question in operations management.
Answer: TRUE
Explanation: "Who are the customers and what are their heterogeneous needs?" is a key operations management question, corresponding to the consumption utility component of the consumer utility function.
Difficulty: 1 Easy
Topic: Operations Management: An Overview of the Book
Learning Objective: 01-05 Articulate the key operational decisions a firm needs to make to match supply with demand.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
8) The set of products or services a business offers to its customers is called ________.
A) demand
B) bundle
C) supply
D) value
Answer: C
Explanation: Supply is the set of products or services offered by a business to its customers.
Difficulty: 1 Easy
Topic: The Customers View of the World; Introduction
Learning Objective: 01-01 Identify the drivers of customer utility.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
9) The set of products or services customers want is called ________.
A) demand
B) bundle
C) supply
D) value
Answer: A
Explanation: Demand is the set of products or services customers want.
Difficulty: 1 Easy
Topic: The Customers View of the World; Introduction
Learning Objective: 01-01 Identify the drivers of customer utility.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
10) "Match supply with demand" means ________.
A) telling customers what they want while reducing prices
B) offering customers what they want while making a profit
C) explaining to customers what they want while lowering costs
D) investing in marketing while investing in automation
Answer: B
Explanation: "Offer customers what they want" is another way of saying "match supply with demand."
Difficulty: 1 Easy
Topic: The Customers View of the World; Introduction
Learning Objective: 01-05 Articulate the key operational decisions a firm needs to make to match supply with demand.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
11) Which of the following is NOT a goal of operations management?
A) Understanding the drivers of customer utility
B) Matching supply with demand
C) Making a profit while providing customers what they want
D) Providing great products at low prices to customers
Answer: A
Explanation: Understanding customer utility drivers is a goal of marketing, not operations management.
Difficulty: 1 Easy
Topic: The Customers View of the World; Introduction
Learning Objective: 01-05 Articulate the key operational decisions a firm needs to make to match supply with demand.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
12) Which of the following is NOT a challenge of matching supply with demand?
A) Delivering better products at low prices
B) Attempting to predict demand
C) Providing customers with what they want at a low cost
D) Reducing demand to match supply
Answer: D
Explanation: The challenge of matching supply with demand is to understand demand so that better products or services are offered to customers at low cost.
Difficulty: 2 Medium
Topic: The Customers View of the World; Introduction
Learning Objective: 01-05 Articulate the key operational decisions a firm needs to make to match supply with demand.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
13) A customer's desire for a product or service is measured by its ________.
A) popularity
B) costs
C) utility
D) advertisement
Answer: C
Explanation: According to economic theory, utility measures one's desire for a product or service.
Difficulty: 1 Easy
Topic: The Customers View of the World
Learning Objective: 01-01 Identify the drivers of customer utility.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
14) Economic theory suggests that a customer chooses a product or service to obtain the highest ________.
A) demand
B) supply
C) utility
D) satisfaction
Answer: C
Explanation: A customer chooses a product or service that gives him/her the highest utility.
Difficulty: 1 Easy
Topic: The Customers View of the World
Learning Objective: 01-01 Identify the drivers of customer utility.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
15) Utility is composed of the following components EXCEPT ________.
A) customer loyalty
B) price
C) inconvenience
D) consumption utility
Answer: A
Explanation: Utility is composed of consumption utility, price, and inconvenience.
Difficulty: 1 Easy
Topic: The Customers View of the World
Learning Objective: 01-01 Identify the drivers of customer utility.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
16) The features of a product or service that most, if not all, customers prefer are called ________.
A) consensus attributes
B) consumption attributes
C) fit attributes
D) performance attributes
Answer: D
Explanation: Performance attributes are features of a product or service that most, if not all, customers prefer.
Difficulty: 1 Easy
Topic: The Customers View of the World
Learning Objective: 01-01 Identify the drivers of customer utility.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
17) The many flavors of ice-cream offered by ice-cream parlors are reflective of the ________ of today's customers.
A) bargaining power
B) product-fit
C) heterogeneous preferences
D) knowledge base
Answer: C
Explanation: Customers' differences in taste, color, or size of the product or services they want are called heterogeneous preferences.
Difficulty: 3 Hard
Topic: The Customers View of the World
Learning Objective: 01-01 Identify the drivers of customer utility.
Bloom's: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
18) The inconvenience of obtaining a product or receiving a service is called ________.
A) transaction cost
B) fit
C) timing
D) unavailability
Answer: A
Explanation: Transaction costs refer to the inconvenience of obtaining a product or receiving a service.
Difficulty: 1 Easy
Topic: The Customers View of the World
Learning Objective: 01-01 Identify the drivers of customer utility.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
19) A restaurant promising a meal in two minutes or less attempts to cater to which part of the customer utility function?
A) Timing
B) Preference
C) Ambience
D) Fit
Answer: A
Explanation: Promising customers quick delivery is designed to appeal to the timing dimension of customer utility.
Difficulty: 2 Medium
Topic: The Customers View of the World
Learning Objective: 01-01 Identify the drivers of customer utility.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
20) Price utility includes all of the following EXCEPT ________.
A) cost of owning the product
B) shipping cost
C) financing costs
D) transaction costs
Answer: D
Explanation: Price utility includes the total cost of owning the product or receiving the service. Transaction costs refer to the inconvenience of obtaining the product or receiving the service.
Difficulty: 2 Medium
Topic: The Customers View of the World
Learning Objective: 01-01 Identify the drivers of customer utility.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
21) ________ is the study of how customers derive utility from products or services.
A) Marketing
B) Operations
C) Economics
D) Management
Answer: A
Explanation: Marketing is the study of how customers derive utility from products or services.
Difficulty: 1 Easy
Topic: The Customers View of the World
Learning Objective: 01-01 Identify the drivers of customer utility.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
22) Which dimension of the customer utility function is emphasized with a restaurant's slogan, "Eat Fresh"?
A) Timing
B) Location
C) Performance
D) Fit
Answer: C
Explanation: "Eat Fresh" is a performance attribute of Subway's sandwiches indicating that customers prefer fresh over processed ingredients in their food.
Difficulty: 3 Hard
Topic: The Customers View of the World
Learning Objective: 01-01 Identify the drivers of customer utility.
Bloom's: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
23) A firm that offers tailor-made suits to its customers is appealing to the ________ dimension of the customers' utility function.
A) timing
B) location
C) performance
D) fit
Answer: D
Explanation: Fit captures how well the product or service matches with the unique characteristics of a given customer.
Difficulty: 3 Hard
Topic: The Customers View of the World
Learning Objective: 01-01 Identify the drivers of customer utility.
Bloom's: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
24) Which of the following statements about a firm's capabilities is FALSE?
A) A firm has capabilities to do well on some dimensions of its customers' utility function.
B) A firm has capabilities to do well on all dimensions of its customers' utility function.
C) A firm's capabilities can be defined as the dimensions of the customer's utility function it is able to satisfy.
D) How well a firm can satisfy its customers' utility function is dependent on its capabilities.
Answer: B
Explanation: A firm has capabilities to do well on some but not all dimensions of its customers' utility function.
Difficulty: 2 Medium
Topic: A Firms Strategic Trade-Offs
Learning Objective: 01-02 Explain inefficiencies and determine if a firm is on the efficient frontier.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
25) You are considering four hotels that differ from each other with respect to their price and customer reviews:
Hotel | Price | Reviews (1 = worst . . . 5 = best) |
H1 | $100 | 3 |
H2 | $250 | 5 |
H3 | $200 | 4 |
H4 | $150 | 2 |
Which of the following is a valid conclusion?
A) H3 is Pareto dominated by H2
B) H2 is Pareto dominated by H3
C) H1 is Pareto dominated by H4
D) H4 is Pareto dominated by H1
Answer: D
Explanation: Pareto dominated means that a firm's product or service is inferior to one or multiple competitors on all dimensions of the customer utility function.
Difficulty: 3 Hard
Topic: A Firms Strategic Trade-Offs
Learning Objective: 01-02 Explain inefficiencies and determine if a firm is on the efficient frontier.
Bloom's: Evaluate
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
26) You are considering four hotels that differ from each other with respect to their price and customer reviews:
Hotel | Price | Reviews (1 = worst . . . 5 = best) |
H1 | $100 | 3 |
H2 | $250 | 5 |
H3 | $200 | 4 |
H4 | $150 | 2 |
Which of these hotels is NOT on the efficient frontier?
A) H1
B) H3
C) H2
D) H4
Answer: D
Explanation: At least one competitor is better on both factors than H4. H4 is Pareto dominated and cannot be on the efficient frontier.
Difficulty: 3 Hard
Topic: A Firms Strategic Trade-Offs
Learning Objective: 01-02 Explain inefficiencies and determine if a firm is on the efficient frontier.
Bloom's: Evaluate
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
27) You are considering four hotels that differ from each other with respect to their price and customer reviews:
Hotel | Price | Reviews (1 = worst . . . 5 = best) |
H1 | $100 | 3 |
H2 | $250 | 5 |
H3 | $200 | 4 |
H4 | $150 | 2 |
Which of these hotels is inefficient?
A) H1
B) H2
C) H3
D) H4
Answer: D
Explanation: A firm that is not on the efficient frontier is inefficient.
Difficulty: 3 Hard
Topic: A Firms Strategic Trade-Offs
Learning Objective: 01-02 Explain inefficiencies and determine if a firm is on the efficient frontier.
Bloom's: Evaluate
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
28) Beyond just executing the current way of doing things, operations management is about ________.
A) eliminating inefficiencies to move the firm away from the efficient frontier
B) making strategic trade-offs to do well on all dimensions of the customers' utility function
C) managing inputs and resources to move the firm away from the efficient frontier
D) innovating its operations to shift the efficient frontier
Answer: D
Explanation: There are three ways in which operations management can match supply with demand: make trade-offs, reduce inefficiencies, and innovate.
Difficulty: 2 Medium
Topic: A Firms Strategic Trade-Offs
Learning Objective: 01-02 Explain inefficiencies and determine if a firm is on the efficient frontier.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
29) By making many burgers before customers ask for them, a fast-food restaurant is sacrificing the dimension of ________ and improving the dimension of ________ in the customers' utility function.
A) timing, fit
B) fit, timing
C) timing, price
D) price, timing
Answer: B
Explanation: Trade-offs among the dimensions of the customer's utility function allow a firm to sacrifice on one dimension, such as fit, while excelling on another, such as time.
Difficulty: 2 Medium
Topic: A Firms Strategic Trade-Offs
Learning Objective: 01-02 Explain inefficiencies and determine if a firm is on the efficient frontier.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
30) A firm that targets a market segment of budget-conscious customers is likely to sacrifice some ________ to get a better ________.
A) consumption utility, price
B) performance, fit
C) timing, location
D) location, utility
Answer: A
Explanation: Budget-conscious customers are price sensitive and they will be less willing to pay (price utility) for a perfectly fitted or optimally performed (consumption utility) product/service.
Difficulty: 3 Hard
Topic: A Firms Strategic Trade-Offs
Learning Objective: 01-02 Explain inefficiencies and determine if a firm is on the efficient frontier.
Bloom's: Evaluate
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
31) Three restaurants are compared along the dimensions of responsiveness and cost performance, as shown below:
Which of the following conclusions can be drawn about restaurant C?
A) It is on the efficient frontier.
B) It Pareto dominates A.
C) It is inefficient.
D) It is efficient.
Answer: C
Explanation: Restaurant C is not on the efficient frontier, suggesting that it is inefficient.
Difficulty: 3 Hard
Topic: A Firms Strategic Trade-Offs
Learning Objective: 01-02 Explain inefficiencies and determine if a firm is on the efficient frontier.
Bloom's: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
32) Three restaurants are compared along the dimensions of responsiveness and cost performance, as shown below:
Which of the following conclusions can be drawn?
A) A is Pareto dominated by B.
B) A is on the efficient frontier.
C) C is Pareto dominating A and B.
D) C is on the efficient frontier.
Answer: B
Explanation: Both A and B are on the efficient frontier and Pareto dominate C.
Difficulty: 3 Hard
Topic: A Firms Strategic Trade-Offs
Learning Objective: 01-02 Explain inefficiencies and determine if a firm is on the efficient frontier.
Bloom's: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
33) A firm invents an app that allows customers to make purchases with their smartphone. The firm hopes its new mobile payment app will ________ the efficient frontier through ________.
A) shift, innovation
B) stay on, innovation
C) stay on, imitation
D) shift, imitation
Answer: A
Explanation: Innovating is a way of shifting the efficient frontier.
Difficulty: 3 Hard
Topic: A Firms Strategic Trade-Offs
Learning Objective: 01-02 Explain inefficiencies and determine if a firm is on the efficient frontier.
Bloom's: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
34) The difference between revenue and costs is called ________.
A) profit
B) input
C) supply
D) demand
Answer: A
Explanation: Profit is the difference between revenue and costs.
Difficulty: 1 Easy
Topic: Overcoming Inefficiencies: The Three System Inhibitors
Learning Objective: 01-03 Explain the three system inhibitors.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
35) A firm invests in building a manufacturing plant. This investment is an example of ________.
A) costs for outputs
B) variable costs
C) costs for resources
D) marketing costs
Answer: C
Explanation: Resources such as production facilities are things in a business that help transform input into output.
Difficulty: 2 Medium
Topic: Overcoming Inefficiencies: The Three System Inhibitors
Learning Objective: 01-03 Explain the three system inhibitors.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
36) A firm can increase its profitability by ________.
A) increasing costs and reducing price
B) moving away from the efficient frontier
C) reducing efficiencies
D) reducing inefficiencies
Answer: D
Explanation: Reducing inefficiencies will increase a firm's profitability.
Difficulty: 1 Easy
Topic: Overcoming Inefficiencies: The Three System Inhibitors
Learning Objective: 01-05 Articulate the key operational decisions a firm needs to make to match supply with demand.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
37) Which of the following is NOT a system inhibitor?
A) Inflexibility
B) Poor brand recognition
C) Variability
D) Waste
Answer: B
Explanation: The three system inhibitors are waste, variability, and inflexibility.
Difficulty: 1 Easy
Topic: Overcoming Inefficiencies: The Three System Inhibitors
Learning Objective: 01-03 Explain the three system inhibitors.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
38) Leftover bread that is not sold at a bakery is an example of ________.
A) defect
B) flexibility
C) variability
D) waste
Answer: D
Explanation: Leftover bread takes up inputs and resources to make but adds no value to customers if it is not sold.
Difficulty: 2 Medium
Topic: Overcoming Inefficiencies: The Three System Inhibitors
Learning Objective: 01-03 Explain the three system inhibitors.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
39) A long waiting line at the checkout of a supermarket at some moments in the day is an example of ________ and a symptom of ________.
A) defect, waste
B) inflexibility, profit
C) variability, inflexibility
D) waste, variability
Answer: C
Explanation: Customers coming at different times of the day cause demand variability.
Difficulty: 2 Medium
Topic: Overcoming Inefficiencies: The Three System Inhibitors
Learning Objective: 01-03 Explain the three system inhibitors.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
40) A sold-out concert that turns away music fans because it is not able to increase the number of seats is an example of ________.
A) defect
B) inflexibility
C) variability
D) waste
Answer: B
Explanation: The inability to accommodate all music fans due to insufficient booking capacity is an example of inflexibility.
Difficulty: 2 Medium
Topic: Overcoming Inefficiencies: The Three System Inhibitors
Learning Objective: 01-03 Explain the three system inhibitors.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
41) Which of the following is NOT a source of supply variability?
A) Customers with different requests
B) Power outage
C) Time to serve a customer
D) Wrong order entered
Answer: A
Explanation: Customers having different requests causes demand variability.
Difficulty: 2 Medium
Topic: Overcoming Inefficiencies: The Three System Inhibitors
Learning Objective: 01-03 Explain the three system inhibitors.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
42) To which system inhibitor does the following customer complaint relate: "I wish they could add more cashiers in the busy hours"?
A) Defect
B) Inflexibility
C) Variability
D) Waste
Answer: B
Explanation: Inflexibility is the inability of an operation to quickly and cheaply change in response to new information.
Difficulty: 3 Hard
Topic: Overcoming Inefficiencies: The Three System Inhibitors
Learning Objective: 01-03 Explain the three system inhibitors.
Bloom's: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
43) More guests showing up than expected at a party is an example of ________.
A) demand variability
B) supply variability
C) demand inflexibility
D) supply inflexibility
Answer: A
Explanation: Demand variability deals with uncertainty in knowing exactly how many guests will show up.
Difficulty: 3 Hard
Topic: Overcoming Inefficiencies: The Three System Inhibitors
Learning Objective: 01-03 Explain the three system inhibitors.
Bloom's: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
44) Which of the following statements about system inhibitors is TRUE?
A) Reducing waste is enough to battle against system inhibitors.
B) Increasing profit is a way to overcome system inhibitors.
C) Fighting system inhibitors is a one-time process.
D) System inhibitors cause inefficiencies.
Answer: D
Explanation: Inefficiencies are the result of having system inhibitors in an operation.
Difficulty: 2 Medium
Topic: Overcoming Inefficiencies: The Three System Inhibitors
Learning Objective: 01-03 Explain the three system inhibitors.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
45) Operations management is about ________.
A) working harder
B) doing away with work
C) improving the way we work
D) dealing with customer feedback
Answer: C
Explanation: Operations management is about improving how work is being done.
Difficulty: 1 Easy
Topic: Operations Management at Work
Learning Objective: 01-04 Explain what work in operations management looks like.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
46) Which of the following statements about operations management is TRUE?
A) Every work requires operations.
B) Operations is all about manufacturing plants.
C) Operations management is in all job descriptions.
D) Operations management is not important for lawyers.
Answer: A
Explanation: Operations is about work and operations management is about improving the work.
Difficulty: 1 Easy
Topic: Operations Management at Work
Learning Objective: 01-04 Explain what work in operations management looks like.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
47) Operations comes from the Latin word "opus," which means ________.
A) activity
B) helping people
C) improvement
D) work
Answer: D
Explanation: Operations comes from the Latin word "opus," which means "work."
Difficulty: 1 Easy
Topic: Operations Management at Work
Learning Objective: 01-04 Explain what work in operations management looks like.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
48) Operations management improves the way work is done by means of all of the following EXCEPT ________.
A) overcoming efficiencies
B) eliminating waste
C) decreasing variability
D) increasing flexibility
Answer: A
Explanation: Operations management helps people improve the way they work by overcoming the inefficiencies that they face.
Difficulty: 2 Medium
Topic: Operations Management at Work
Learning Objective: 01-04 Explain what work in operations management looks like.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
49) A doctor can apply his/her knowledge in operations management to ________.
A) find a cure for cancer
B) discover a new drug
C) improve his/her work as a doctor
D) improve his/her language skills
Answer: C
Explanation: Operations management helps to improve a doctor's work.
Difficulty: 2 Medium
Topic: Operations Management at Work
Learning Objective: 01-04 Explain what work in operations management looks like.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
50) Which of the following is a job of an operations manager?
A) Managing inventory levels
B) Setting up an accounting system
C) Filing lawsuits against competitors
D) Developing a new logo
Answer: A
Explanation: Operations managers are in charge of acquiring inputs and managing the resources they need to better serve their customers.
Difficulty: 2 Medium
Topic: Operations Management at Work
Learning Objective: 01-04 Explain what work in operations management looks like.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
51) Which of the following is NOT a job of an operations manager?
A) Acquiring inputs
B) Managing resources
C) Overcoming inefficiencies
D) Developing a new logo
Answer: D
Explanation: Operations managers are in charge of acquiring inputs and managing the resources they need to better serve their customers.
Difficulty: 2 Medium
Topic: Operations Management at Work
Learning Objective: 01-04 Explain what work in operations management looks like.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
52) Which of the following is NOT a job of an operations manager?
A) Acquiring inputs
B) Managing resources
C) Overcoming inefficiencies
D) Filing lawsuits against competitors
Answer: D
Explanation: Operations managers are in charge of acquiring inputs and managing the resources they need to better serve their customers.
Difficulty: 2 Medium
Topic: Operations Management at Work
Learning Objective: 01-04 Explain what work in operations management looks like.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
53) As an operations manager, you improve work by doing all of the following EXCEPT ________.
A) eliminating waste
B) increasing flexibility
C) doing the work for others
D) reducing variability
Answer: C
Explanation: Work can be improved by overcoming the three system inhibitors.
Difficulty: 1 Easy
Topic: Operations Management at Work
Learning Objective: 01-04 Explain what work in operations management looks like.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
54) As an operations manager, you improve work by doing all of the following EXCEPT ________.
A) eliminating waste
B) increasing flexibility
C) reducing variability
D) setting up a new accounting system
Answer: D
Explanation: Work can be improved by overcoming the three system inhibitors.
Difficulty: 1 Easy
Topic: Operations Management at Work
Learning Objective: 01-04 Explain what work in operations management looks like.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
55) A mismatch of supply and demand can be caused by all of the following EXCEPT ________.
A) demand variability
B) supply variability
C) supply inflexibility
D) demand inflexibility
Answer: D
Explanation: Inflexibility comes from the supply side only.
Difficulty: 2 Medium
Topic: Operations Management: An Overview of the Book
Learning Objective: 01-05 Articulate the key operational decisions a firm needs to make to match supply with demand.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
56) Which of the following is NOT an operational problem that you will learn in this text?
A) Process analysis
B) Process improvement
C) Process satisfaction
D) Process quality
Answer: C
Explanation: The term "process satisfaction" does not make sense. Our goal is to satisfy the customer.
Difficulty: 1 Easy
Topic: Operations Management: An Overview of the Book
Learning Objective: 01-05 Articulate the key operational decisions a firm needs to make to match supply with demand.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
57) ________ addresses the question of how a firm should produce the products or services its customers want.
A) Process analysis
B) Product development
C) Process satisfaction
D) Process quality
Answer: A
Explanation: Process analysis addresses the question of how a firm should produce the products or services its customers want.
Difficulty: 1 Easy
Topic: Operations Management: An Overview of the Book
Learning Objective: 01-05 Articulate the key operational decisions a firm needs to make to match supply with demand.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
58) ________ is a response to the three system inhibitors and helps answer the question of how a firm improves the productivity of its processes.
A) Demand anticipation
B) Inventory management
C) Process variability
D) Lean operations
Answer: D
Explanation: Lean operations is a response to system inhibitors to improve a firm's process productivity.
Difficulty: 1 Easy
Topic: Operations Management: An Overview of the Book
Learning Objective: 01-05 Articulate the key operational decisions a firm needs to make to match supply with demand.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
59) ________ helps a firm to answer the question of how much of a product should be made or how many customers should be served.
A) Product development
B) Inventory management
C) Process variability
D) Lean operations
Answer: B
Explanation: Inventory management helps a firm anticipate customer demand.
Difficulty: 1 Easy
Topic: Operations Management: An Overview of the Book
Learning Objective: 01-05 Articulate the key operational decisions a firm needs to make to match supply with demand.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
60) Which key operational question corresponds to the "inconvenience" component of the customer utility function?
A) Who are the customers?
B) How efficiently will products or services be delivered?
C) What is the product or service to be delivered?
D) Where will the demand be fulfilled?
Answer: D
Explanation: The question "Where will the demand be fulfilled?" answers the location subcomponent of the inconvenience component of the customer utility function.
Difficulty: 2 Medium
Topic: Operations Management: An Overview of the Book
Learning Objective: 01-05 Articulate the key operational decisions a firm needs to make to match supply with demand.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
61) Which key operational question corresponds to the "performance attributes" subcomponent of consumption utility?
A) Who are the customers?
B) How efficiently will the products or services be delivered?
C) What is the product or service to be delivered?
D) Where will the demand be fulfilled?
Answer: C
Explanation: The question "What is the product or service to be delivered?" defines the features or performance attributes of the product or service.
Difficulty: 2 Medium
Topic: Operations Management: An Overview of the Book
Learning Objective: 01-05 Articulate the key operational decisions a firm needs to make to match supply with demand.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
