Question 1: Service organizations generally

• are in close proximity to the customer
• rely on physical inventory
• take advantage of patents
• can delegate human behavior and marketing skills

Question 2: Which one of the following has the highest goods content?

• medicine prescription
• computer repair
• automobile loan
• symphony performance

Question 3: The quality revolution is most related to

• continuous improvement
• mass production
• time-based competition
• service

Question 4: A golf simulator in a retail sports store is an example of

• non- durable goods replacing services
• primary good
• goods content
• biztainment

Question 5: Service management skills would include all of the following except

• accounting and finance
• knowledge and technical expertise about operations
• marketing and cross-selling
• human interaction

Question 6: The three issues that are at the core of operations management include all of the following except

• cost
• quality
• utilization
• efficiency

Question 7: Which of the following would be the lowest in goods content and highest in service content?

• fast food restaurant
• attending a theater production
• getting an oil change for your car
• filling a medical prescription

Question 8: Support processes would typically include all of the following except

• inventory management
• customer help desk operations
• research and development
• manufacturing and assembly

Question 9: A support process could be any of the following except

• assembling automobiles
• purchasing materials and supplies
• managing inventory
• installing a product

Question 10: Which of the following is not a key activity of an operations manager?

• translating market knowledge into goods, services, and processes
• continually learning and adapting to global and environmental changes
• managing cash flows and strategic investments
• exploiting technology to improve productivity

Question 11: A value creation process could be any of the following except

• shipping a customer's order
• providing a home mortgage
• assembling a dishwasher
• purchasing production material
• Moving to another question will save this response.

Question 12: Which of the following is nota current challenge to OM?

• Globalization
• Technology
• Quality
• mass production

Question 13: Which one of the following is not an example of biztainment?

• iPhone applications
• automobile leasing
• product demonstrations
• virtual factory tours

Question 14: Which of the following is the correct sequence describing the evolution of operations management?

• efficiency, customization, quality, service, sustainability, time-based competition
• quality, efficiency, time-based competition, sustainability, customization, service
• efficiency, quality, customization, time-based competition, service, sustainability
• quality, service, customization, time-based competition, efficiency, sustainability

Question 15: In relating operations management and the customer benefit package (CBP), which is the correct timing sequence?

• Operating system processes lead to customer needs and expectations, which lead to customer benefit package.
• Customer benefit package leads to customer needs and expectations, which lead to operating system processes.
• Customer needs and expectations lead to customer benefit package, which leads to operating system processes.
• Customer needs and expectations lead to operating system processes, which lead to customer benefit package.

Question 16: Which of the following generally does not result from vertical integration?

• less control over cost
• more control over quality
• more complexity in managing
• higher levels of risk

Question 17: When break-even analysis is applied to an outsourcing decision, the breakeven quantity is

• the ratio of fixed costs to the difference between variable outsourcing cost and variable in-house production cost
• the ratio of the difference between variable outsourcing cost and variable in-house production cost to fixed costs
• the product of the variable costs times the fixed costs
• the product of the variable costs times the production quantity

Question 18: The control of Wal-Mart's value chain is ______, while the control of General Electric's is ________.

• post-production focused, preproduction focused
• horizontal, vertical
• centralized, decentralized
• backward integrated, forward integrated

Question 19: From the pre- and post-service view of a value chain, goods and services design, contract negotiation and consulting services would be considered

• pre-production services
• production processes
• post-production services
• value creation

Question 20: Outsourcing is

• the same as offshoring
• the opposite of vertical integration
• the opposite of backward integration
• the same as diversifying

Question 21: Operational structure of the value chain deals with

• management hierarchy
• vertical integration
• configuration of resources
• culture

Question 22: Computer software would be an example of

• an intangible good
• a nondurable good
• a service
• a value creation process

Question 23: Which of the following is not normally considered a variable cost?

• labor
• transportation
• equipment lease
• material

Question 24: For a restaurant, order-taking, bill payment and home delivery would be considered

• services
• inputs
• processes
• outputs

Question 25: The first, second, and third waves of outsourcing experienced by the U.S. are

• goods-producing jobs, simple service work, skilled knowledge work
• simple service work, goods-producing jobs, skilled knowledge work
• simple service work, skilled knowledge work, goods-producing jobs
• skilled knowledge work, simple service work, goods-producing jobs

Question 26: "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

• proportionality
• competitiveness
• value
• equity

Question 27: ____ is the process of managing information, services and physical goods to insure their availability at the right place, at the right time, at the right cost and at the right quantity, with the highest attention given to quality.

• Preproduction service
• Value proposition
• Operational structure
• Value chain integration

Question 28: In the value chain model for a hospital, patients, drugs and staff would be considered

• suppliers
• inputs
• processes
• outputs

Question 29: 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.

• breakeven point = 7,000 units; outsource
• breakeven point = 7,000 units; make in-house
• breakeven point = 11,667 units; outsource
• breakeven point = 11,667 units; make in-house

Question 30: The United States has experienced three waves of outsourcing. Which of the following isnotone of the waves?

• skilled knowledge work
• mass customization
• simple service work
• goods-producing jobs