Question 1

According to a survey by the market research firm, Michelson & Associates, customers abandon a retail store for which of the following reasons?
A) price fixing and false advertising
B) poor service and product dissatisfaction
C) product modification and excessive service charges
D) employee grievances and poor working standards
E) poor quality products and price fixing

Accepted Answer

The survey by Michelson & Associates suggests that customers abandon a retail store primarily due to poor service and product dissatisfaction. Option A, C, D, and E are not mentioned as reasons for customer abandonment in the survey.

Question 2

Achieving efficiency in all aspects of the ___ while ensuring on-time availability of quality resources for customer-driven organizations is the fundamental goal of ___.
A) value chain; value chain management
B) quality chain; quality chain management
C) supply chain; supply chain management
D) customer chain; customer chain management
E) production chain; production chain management

Accepted Answer

The term "on-time availability of quality resources" suggests the management of the supply chain, which is the logistical system by which a company supplies its products or services to customers. Therefore, the best answer is C, supply chain management. A is incorrect because it only refers to the creation of value, not the management of resources. B refers to quality but not the management of resources. D and E are not commonly used terms in business.

Question 3

Susanna buys kitty litter at her local pet store. She is a(n) ___.
A) merchants
B) internal customers
C) external customers
D) satisfied customers
E) producers

Accepted Answer

Susanna is a customer at the pet store, making her an external customer.

Question 4

Operating efficiencies that increase productivity can result in
A) inventory surpluses.
B) competitive advantage.
C) incompetent personnel.
D) the need for more frequent performance assessments.
E) mistrust among upper management.

Accepted Answer

Operating efficiencies that increase productivity can give a company a competitive advantage over its competitors, making it more efficient and profitable. This is a desirable outcome for businesses. The other options are negative outcomes that are not associated with increased productivity.

Question 5

___ strategically links all operations dealing with resource supplies.
A) Value chain management
B) Internal customer management
C) Customer relationship management
D) Total quality management
E) Supply chain management

Accepted Answer

The definition provided describes supply chain management, which involves the coordination and integration of all activities involved in the sourcing, procurement, conversion, and logistics of goods and services. Value chain management focuses specifically on adding value to each step of the production process, internal customer management involves managing relationships with internal customers, customer relationship management is focused on managing relationships with external customers, and total quality management is focused on continuous improvement of product and service quality.

Question 6

Break-even analysis can be used to ___.
A) improve control
B) examine the impact of cost control measures
C) experiment with different "what-if" scenarios
D) a and c
E) a, b, and c

Accepted Answer

Break-even analysis is a versatile tool used in financial and operational planning. It helps in improving control by identifying the point at which revenues equal costs, examines the impact of cost control measures by showing how changes in costs affect the break-even point, and allows for experimentation with different "what-if" scenarios to see how changes in various factors like price, cost, and volume can impact profitability.

Question 7

A Harvard Business Review survey ranked which of the following as first and second among the most important goals in the success of organizations?
A) technological advancements and recruiting quality employees
B) financial returns to stockholders and market share
C) productivity and profitability
D) satisfying internal and external customers
E) customer service and product quality

Accepted Answer

Customer service and product quality are often ranked highly in surveys regarding organizational success goals, as they directly impact customer satisfaction and loyalty, which in turn influence the overall success of an organization.

Question 8

___ uses the latest information technology that allows organizations to maintain intense communication with customers as well as to gather and utilize data regarding the customers' needs and preferences.
A) Customer relationship management
B) Internal customer management
C) Value chain management
D) Total quality management
E) Supply chain management

Accepted Answer

Customer relationship management (CRM) uses the latest information technology to maintain a close relationship with customers and gather data about their needs and preferences. It helps organizations to improve customer satisfaction and loyalty, increase sales and profitability, and identify new market opportunities. Internal customer management, value chain management, total quality management, and supply chain management are different concepts and processes that focus on other aspects of business operations.

Question 9

Consistently doing something of high value that one's competitors cannot replicate quickly or do as well is A) a key result of establishing a union shop. B) a key result of achieving competitive advantage. C) not possible in today's world. D) not as important to companies as it once was. E) a crucial but often ignored key to success.

Accepted Answer

Achieving competitive advantage is about doing something of high value that competitors cannot replicate quickly or do as well. It is a crucial key to success in today's business world.

Question 10

Primary activities of a value chain are
A) marketing and sales.
B) procurement.
C) human resource management.
D) infrastructure management.
E) market research.

Accepted Answer

Primary activities in a value chain directly concern the creation, sale, maintenance, and support of a product or service. Marketing and sales are primary activities because they directly involve getting the product or service to the customer.

Question 11

A(n) ___ is a specific sequence of activities that transforms raw materials into a finished good or service.
A) service chain
B) value chain
C) activities system
D) procurement plan
E) distribution plan

Accepted Answer

A value chain includes all the activities and processes that are involved in transforming raw materials into a finished good or service. It encompasses production, marketing, distribution, customer service, and other activities that contribute to the creation and delivery of the final product or service. The other options are not specific to the manufacturing process and do not cover all the necessary activities involved in creating a finished good or service.

Question 12

A well-functioning value chain should involve
A) a series of consecutive steps that add value to inputs right up to the point that finished goods or services are delivered to the customer.
B) a series of steps done all at once and delivered as cheaply as possible.
C) a production manager to keep watch over the human resources people.
D) many levels of management.
E) many levels of performance measurement.

Accepted Answer

A well-functioning value chain should involve a series of consecutive steps that add value to inputs right up to the point that finished goods or services are delivered to the customer. This means that each step along the way should be focused on adding value and improving the final outcome for the customer.

Question 13

Improving the paint quality on your product to make it last longer for your customer is an example of
A) value chain management.
B) value creation.
C) supply chain management.
D) PERT.
E) problem solving.

Accepted Answer

Improving the paint quality on a product to make it last longer for the customer is an example of adding value to the product, which is the essence of value creation. Value chain management involves the coordination and management of all activities involved in creating value for customers. Supply chain management focuses on managing the flow of goods and services from suppliers to customers. PERT (Program Evaluation and Review Technique) is a project management tool for scheduling and coordinating tasks within a project. Problem solving involves identifying and solving problems within a business.

Question 14

Management of the value chain requires
A) periodic analysis of the system.
B) no analysis of the system.
C) continuous analysis of the system.
D) Six Sigma qualification.
E) a great deal of concentration.

Accepted Answer

Management of the value chain requires continuous analysis of the system to identify areas for improvement and ensure efficiency throughout the chain. Periodic or no analysis could result in missed opportunities for optimization and potential breakdowns in the chain. Six Sigma qualification and concentration may be helpful in managing the value chain, but they do not replace the need for continuous analysis.

Question 15

Researching the effect a 10% shift in the exchange rate would have on your raw materials imports is an example of
A) current ratio analysis.
B) break-even analysis.
C) just-in-time scheduling.
D) value chain management.
E) management by objectives.

Accepted Answer

Researching the effect a 10% shift in the exchange rate would have on raw material imports is an example of break-even analysis, which involves determining the point at which revenues equal expenses. In this case, the shift in the exchange rate could impact the cost of importing raw materials, which would directly affect the break-even point. Current ratio analysis involves analyzing a company's ability to pay its short-term debts, just-in-time scheduling focuses on minimizing inventory costs and maximizing efficiency, value chain management involves optimizing each step in a company's supply chain, and management by objectives involves setting specific goals for employees and tracking their progress towards those goals. None of these concepts are directly related to analyzing the impact of a change in exchange rates on raw material imports.

Question 16

___ involves strategic management of all operations involving the suppliers of an organization's resources.
A) Value chain management
B) Internal customer management
C) Customer relationship management
D) Total quality management
E) Supply chain management

Accepted Answer

Supply chain management involves the strategic management of all operations involving the suppliers of an organization's resources, including logistics, purchasing, and inventory management. It focuses on optimizing the flow of goods and services, minimizing costs, and improving efficiency and customer satisfaction.

Question 17

Scheduling materials to arrive on a timely basis at a workstation or facility in order to reduce costs and improve workflow is known as ___.
A) management by objectives (MBO)
B) just-in-time (JIT) scheduling
C) economic order Quantity (EOQ)
D) efficient production planning (EPP)
E) jump-on-board (JOB)

Accepted Answer

Just-in-time (JIT) scheduling involves scheduling materials to arrive at a workstation or facility at the exact time they are needed, without excess inventory or delays. This reduces costs by minimizing inventory holding costs and improves workflow by ensuring materials are available when they are needed. Management by objectives (MBO), economic order Quantity (EOQ), efficient production planning (EPP), and jump-on-board (JOB) are not specific scheduling concepts related to material management.

Question 18

Ordering more of a particular item every time an inventory level falls to a predetermined point is called the ___.
A) inventory control number
B) quality control paradox
C) economic order quantity
D) break-even quantity
E) fixed quantity inventory

Accepted Answer

This is known as the economic order quantity (EOQ) method, which seeks to balance the cost of holding inventory with the cost of ordering new inventory. By ordering more at the predetermined point, a company can avoid stockouts and minimize the expenses associated with overstocking or understocking. This method considers factors like demand, lead time, ordering costs, and inventory carrying costs to determine the optimal order quantity.

Question 19

The ___ is calculated by dividing total fixed costs by price minus variable costs.
A) current ratio
B) break-even point
C) economic order quantity
D) net margin
E) inventory turnover ratio

Accepted Answer

The break-even point is calculated by dividing total fixed costs by price minus variable costs. This is the point at which a business neither makes a profit nor incurs a loss.

Question 20

The ___ occurs where losses end and the firm begins to make a profit.
A) current ratio
B) hot stove point
C) net margin
D) break-even point
E) debt ratio

Accepted Answer

The break-even point is where a company's revenues equal its total expenses, resulting in a zero profit. Beyond the break-even point, the company begins to make a profit.

Quiz 19: Operations and Services Management

According to a survey by the market research firm, Michelson & Associates, customers abandon a retail store for which of the following reasons?

Achieving efficiency in all aspects of the _ while ensuring on-time availability of quality resources for customer-driven organizations is the fundamental goal of _.

Susanna buys kitty litter at her local pet store. She is a(n) ___.

Operating efficiencies that increase productivity can result in

___ strategically links all operations dealing with resource supplies.

Break-even analysis can be used to ___.

A Harvard Business Review survey ranked which of the following as first and second among the most important goals in the success of organizations?

___ uses the latest information technology that allows organizations to maintain intense communication with customers as well as to gather and utilize data regarding the customers' needs and preferences.

Consistently doing something of high value that one's competitors cannot replicate quickly or do as well is

Primary activities of a value chain are

A(n) ___ is a specific sequence of activities that transforms raw materials into a finished good or service.

A well-functioning value chain should involve

Improving the paint quality on your product to make it last longer for your customer is an example of

Management of the value chain requires

Researching the effect a 10% shift in the exchange rate would have on your raw materials imports is an example of

___ involves strategic management of all operations involving the suppliers of an organization's resources.

Scheduling materials to arrive on a timely basis at a workstation or facility in order to reduce costs and improve workflow is known as ___.

Ordering more of a particular item every time an inventory level falls to a predetermined point is called the ___.

The ___ is calculated by dividing total fixed costs by price minus variable costs.

The ___ occurs where losses end and the firm begins to make a profit.