Operations Management Test Bank

INSTRUCTOR’S TEST BANK Chapter 1: Introduction 1 Why would a marketing major need a basic foundation in operations management? A) Marketing staff schedule work centers for most businesses B) Marketing staff must know how to design processes C) Marketing staff must be able to make decisions with the entire business in mind D) Marketing staff must understand the technical processes behind manufacturing capacity management C 2 The value of a product is defined by: A) The owner B) The potential customer C) The price initially paid for the product being sold
D) The actual cost of ownership over the products life B 3 A critical difference between a product and a service is: A) A product is tangible, but a service is not. B) A product is expensive, but a service is not. C) A product is often poor quality, but a service is not. D) A product is made with cheap labor, but a service is not. A 4 One reason producers of products also provide customers with services is: A) They don’t know any better. B) Services can be added at no cost. C) Services differentiate them from competitors. D) Services are easier to match to customer needs.
C 5 One reason services are more difficult to manage than manufacturing is: A) Services can’t be stored as inventory for later use. B) Service employees aren’t as flexible as manufacturing employees. C) Service customers are more demanding. D) Services can’t define processes precisely. A 6 A B2B customer would value a product differently than a B2C customer because: A) Businesses have more money to spend than consumers. B) Businesses must consider how much value the product will add to the products and services they sell.

C) Consumers can’t define quality very well. A) Services can’t be stored as inventory for later use. B) Service employees aren’t as flexible as manufacturing employees. C) Service customers are more demanding. D) Services can’t define processes precisely. A 6 A B2B customer would value a product differently than a B2C customer because: A) Businesses have more money to spend than consumers. B) Businesses must consider how much value the product will add to the products and services they sell.
C) Consumers can’t define quality very well. D) Consumers are not as concerned about costs as businesses. B 7 Profitability results from: A) High sales prices B) Minimal workers with low salaries C) The value being greater than the cost to create it D) Unintelligent customers C 8 An important part of a strategy is: A) Writing down plans for processes B) Identifying suppliers of inputs to processes C) Establishing productivity measures for processes D) Identifying what target customers value D 9
Timeliness is a critical component of value for a business because: A) Timeliness has a direct impact on a business’s return on investment. B) Business owners are impatient. C) Businesses are typically late and need things right away. D) Most products spoil quickly. A 1 0 D In the resource/profit model the resources used to create value are: A) Time, materials, machines, and people B) Natural resources, animal products, crops C) Labor, materials, cash, buildings, and transportation equipment D) Inventory, workforce, capacity, facilities