Flashcards CHAPTER ONE OPERATIONS MGT

The set of products or services a business offers to its customers is called __________.

demand

value

supply

bundle

SUPPLY

Which dimension of the customer utility function is emphasized with a restaurant's slogan, "Eat Fresh"?

Location

Performance

Fit

Timing

PREFORMANCE

A firm that offers tailor-made suits to its customers is appealing to the __________ dimension of the customers' utility function.

location

performance

fit

timing

FIT

You are considering four hotels that differ from each other with respect to their price and customer reviews:

Hotel. Price. Reviews (1 = worst . . . 5 = best)

H1. $100. 3

H2 $250 5

H3 $200 4

H4 $150 2

Which of the following is a valid conclusion?

H3 is Pareto dominated by H2

H2 is Pareto dominated by H3

H4 is Pareto dominated by H1

H1 is Pareto dominated by H4

H4 is Pareto dominated by H1

By making many burgers before customers ask for them, a fast-food restaurant is sacrificing the dimension of __________ and improving the dimension of __________ in the customers' utility function.

timing, price

price, timing

timing, fit

fit, timing

fit, timing

The difference between revenue and costs is called __________.

profit

demand

input

supply

PROFIT

A firm can increase its profitability by __________.

reducing inefficiencies

moving away from the efficient frontier

increasing costs and reducing price

reducing efficiences

reducing inefficiencies

A long waiting line at the checkout of a supermarket at some moments in the day is an example of __________ and a symptom of __________.

variability, inflexibility

waste, variability

defect, waste

inflexibility, profit

variability, inflexibility

Which of the following statements about operations management is TRUE?

Operations is all about manufacturing plants.

Every work requires operations.

Operations management is in all job descriptions.

Operations management is not important for lawyers

Every work requires operations.

A doctor can apply his/her knowledge in operations management to __________.

improve his/her language skills

discover a new drug

find a cure for cancer

improve his/her work as a doctor

improve his/her work as a doctor

The set of products or services customers want is called __________.

demand

value

bundle

supply

demand

You are considering four hotels that differ from each other with respect to their price and customer reviews:

Hotel. Price. Reviews (1 = worst . . . 5 = best)

H1. $100. 3

H2 $250 5

H3 $200 4

H4 $150 2

which is ineffiencent?

h4

"Match supply with demand" means__________.

investing in marketing while investing in automation

telling customers what they want while reducing prices

offering customers what they want while making a profit

explaining to customers what they want while lowering costs

offering customers what they want while making a profit

Which of the following is NOT a goal of operations management?

Matching supply with demand

Making a profit while providing customers what they want

Understanding the drivers of customer utility

Providing great products at low prices to customers

Understanding the drivers of customer utility

Which of the following is NOT a challenge of matching supply with demand?

Delivering better products at low prices

Reducing demand to match supply

Providing customers with what they want at a low cost

Attempting to predict demand

Reducing demand to match supply

A customer's desire for a product or service is measured by its__________.

utility

popularity

costs

advertisement

utility

Utility is composed of the following components EXCEPT__________.

consumption utility

customer loyalty

inconvenience

price

customer loyalty

The inconvenience of obtaining a product or receiving a service is called__________.

fit

timing

transaction cost

unavailability

transaction cost

A restaurant promising a meal in two minutes or less attempts to cater to which part of the customer utility function?

Timing

Fit

Preference

Ambience

timing