Problem Set 1&2

Front 1

Which is NOT true regarding differences between goods andservices?

A) Services are generally produced and consumedsimultaneously; tangible goods are not.B) Services tend to be more knowledge-based than goods.

C) Services tend to have a more inconsistent productdefinition than goods.

D) Goods tend tohave higher customer interaction than services.

E) Reselling is unusual in services; goods often have someresidual value.

Back 1

D) Goods tend to have higher customer interaction than services

Front 2

Which of the following are the primary functions of allorganizations?

A) production/operations, marketing, and human resources

B) marketing, human resources, and finance/accounting

C) sales, quality control, and production/operations

D) marketing,production/operations, and finance/accounting

E) research and development, finance/accounting, andpurchasing

Back 2

D) marketing, production/operations, and finance/accounting

Front 3

Which of the following attributes is most typical of aservice?

A) production andconsumption occur simultaneously

B) tangible

C) mass production

D) consistency

E) easy to automate

Back 3

A) Production and consumption occur simultaneously

Front 4

4) Which of the following are among the 10 strategicoperations management decisions? I. design ofgoods and services

II. managingquality

III. layoutstrategy

IV. marketing

V. pricing ofgoods and services

A) I, II, V

B)I, II, IV

C) II, III,V

D) I, II, III

E) All of the above

Back 4

D) I, II, III

Front 5

The Dulac Box plant produces 500 cypress packing boxes intwo 10-hour shifts. What is the productivity of the plant?

A) 25 boxes/hr.

B) 50 boxes/hr.

C) 5000 boxes/hr.

D) 0.04boxes/hr.

E) 250 boxes/hr.

Back 5

A) 25 boxes/hr

Front 6

A foundry produces circular utility access hatches (manholecovers). Currently, 120 covers are produced in a 10-hour shift. If laborproductivity can be increased by 20%, it would then be:

A) 14.4 covers/hr.

B) 24 covers/hr.

C) 240 covers/hr.

D) 1200 covers/hr.

E) 10 covers/hr.

Back 6

A) 14.4 covers/hr

Front 7

Which of the following nets the largest productivityimprovement when productivity is greater than 1?

A) increase output 15%

B) decrease input15%

C) increase both output and input by 5%

D) increase output 10%, decrease input 3%

E) decrease input 10%, increase output 3%

Back 7

B) decrease input 15%

Front 8

Operations management is applicable:

A) mostly to the service sector.

B) to services exclusively.

C) mostly to the manufacturing sector.

D) to all firms,whether manufacturing or service.E) to the manufacturing sector exclusively.

Back 8

D) to all firms, whether manufacturing or service

Front 9

Which of the following is NOT a strategic operationsmanagement decision?

A) supply chain

B) price

C) layout design

D) quality

E) inventory

Back 9

B) price

Front 10

Which of the following is a similarity between goods andservices?

A) mass production

B) consistency

C) automation

D) Both have qualitystandards.

E) Both can usually be kept in inventory.

Back 10

D) Both have quality standards

Front 11

Which of the following is LEAST likely to be a low-costleadership competitive advantage?

A) low overhead

B) effective capacity use

C) inventory management

D) broad productline

E) mass production

Back 11

D) broad product line

Front 12

Given the position of the 3D printer in the growth stage ofits life cycle, which of the following OM Strategy/Issues should the makers of3D printers be least concerned with at the current time?

A) forecasting

B) cost cutting

C) increasing capacity

D) product and process reliability

E) enhancing distribution

Back 12

B) cost cutting

Front 13

Which of the following statements about organizationalmissions is FALSE?

A) They reflect a company's purpose.

B) They indicate what a company intends to contribute tosociety.

C) They areformulated after strategies are known.

D) They define a company's reason for existence.

E) They provide guidance for functional area missions.

Back 13

C) They are formulated after strategies are known

Front 14

Which of the following strategic concepts allow firms toobtain competitive advantage?

A) productivity, efficiency, and quality leadership

B) differentiation,cost leadership, and response

C) differentiation, quality leadership, and response

D) distinctive competency, cost leadership, and experience

E) differentiation, distinctive competency, qualityleadership, and capacity

Back 14

B) differentiation, quality leadership, and response

Front 15

Which of the following does NOT represent a valid reasonfor globalizing operations?

A) reduce costs

B)improve the supply chain

C) reduce responsiveness

D) attract global talent

E) understand markets

Back 15

C) reduce responsiveness

Front 16

Which of the following is the best example of competing onlow-cost leadership?

A) A firm producesits product with less raw material waste than its competitors do.

B) A firm offers more reliable products than itscompetitors do.

C) A firm's products are introduced into the market fasterthan its competitors' products are.

D) A firm's research and development department generatesmany ideas for new products.E) A firm advertises more than its competitors do.

Back 16

A) A firm produces its product with less raw material waste than its competitors do

Front 17

Advantages of outsourcing do NOT include:

A) cost savings.

B) gaining outside expertise.

C) maintaining a focus on core competencies.

D) accessing outside technology.

E) potentialcreation of future competition.

Back 17

E) potential creation of future competition

Front 18

Which of the following OM strategy/issues should a firmwith a product in the maturity stage of its life cycle be LEAST concerned withat the present time?

A) increase capacity

B) long production runs

C) standardization

D) cost cutting

E)fewer rapid product changes

Back 18

A) increase capacity

Front 19

An operations manager is performing a factor-ratinganalysis to help her choose an outsourcing provider. She is focusing on threefactors: A, B, and C, with weights of .50, .20, and .30, respectively. She hasscored one potential outsourcer, Ling Services, on each of the factors using ascale of 10-50. Ling Services received a score of 30 for factor A, 46 forfactor B, and 22 for factor C. What is the factor-rating score for LingServices?

A) 98.0 B)32.7 C) 21.8

D) 29.2 E) 30.8

Back 19

E) 30.8

Front 20

A company is choosing an outside firm to provide itspayroll services. It has chosen four comparative categories of interest: clientreviews, financial condition, IT capabilities, and government stability. Thesecategories have been assigned weights of 30%, 10%, 20%, and 40%, respectively.Three potential providers were scored on each of those factors (see tablebelow) using a scale of 1-10, with a score of 1 meaning worst possible and 10meaning best possible. Using the factor-rating method, which provider should bechosen? Why?

Back 20

Provider A: 2(.3) + 8(.1) + 5(.2)+ 3(.4) = 3.6Provider B: 6(.3) + 4(.1) + 8(.2)+ 1(.4) = 4.2Provider C: 10(.3) + 2(.1) + 2(.2)+ 2(.4) = 4.4Provider C should be chosenbecause it has a higher score.