Operational Management Chapter 1

Quiz 1 Solutions

1. What are three current issues in operations and supply management? (any three): 1. Coordinating relationships between mutually supportive but separate organizations; 2. Optimizing global supplier, production, and distribution networks; 3. Managing customer touch points; 4. Raising senior management awareness of operations as a significant competitive weapon; 5. Sustainability and the triple bottom line.

2. Value is the ratio of quality to price paid

3. Processes that are used to transform the resources into products are called Operations 

4. The Goods-Services Continuum consists of which set of the following categories? 

B. Pure goods, core goods, core services, pure services

5. Which of the following are defined as core goods? 

C. Data storage systems

6. Which of the following is not a way that operations and supply processes are categorized? 

D. Selecting

7. One of the package of features that make up a service is: 

B. Facilitating goods

8. Which of the following is not a characteristic that distinguishes services from goods? 

A. Service jobs are unskilled.

9. Automobiles and appliances are classified as "pure goods." FALSE

10. Operations and supply management is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services. TRUE

11. Discuss the role of efficiency and effectiveness in the creation of value. A successful response to this question requires a definition of "value" (a relationship between "quality" or "performance" of a product and its price) and discussion of the trade-off between efficiency and effectiveness. Creating value means striking the most appropriate balance between efficiency and effectiveness for the market need the product will satisfy.