Question 1

Dazzling Inc., a cosmetics manufacturing company, introduces a moisturizer that is more expensive than similar products available in the market. The customers love its anti-ageing and anti-tanning features and do not mind spending more as they believe that the product is worth its price. As a result, the company makes a large profit from the sale of the new product. In this scenario, Dazzling has incorporated _____ in its business.
A) effectiveness
B) efficiency
C) undifferentiated marketing
D) vertical integration

Accepted Answer

Dazzling Inc. has incorporated effectiveness in its business by successfully meeting customer needs and generating large profits, despite the higher price of the product.

Question 2

In the context of operations management, for the first 25 years after World War II, which of the following was true of the United States?
A) It had a severely damaged infrastructure.
B) It lacked natural resources.
C) It had a socialist economy.
D) It had an increasingly well-educated labor force.

Accepted Answer

After World War II, the United States experienced economic growth and invested in education, leading to a more educated workforce.

Question 3

In the context of American business, which of the following statements is true of the changing scenario of operations management over the last five decades?
A) The nonfarm labor force is increasingly joining the goods-producing sector.
B) The current trend in value chain design is to rely more on vertical integration and less on outsourcing and offshoring.
C) There has been a shift from mass customization to mass production.
D) There has been a fundamental shift away from the production of goods and toward the provision of services.

Accepted Answer

Over the last five decades, there has been a significant shift in the American economy from manufacturing and goods production to service-oriented industries, reflecting a broader trend towards the provision of services.

Question 4

Marie, an operations manager at Clagox Systems, spends a lot of time in figuring out ways to achieve the established goals of the company at minimal costs. She conducts meetings and asks for suggestions from her teammates to reach the targets at the lowest possible expense. In this scenario, Marie is focusing on _____.
A) effectiveness
B) efficiency
C) undifferentiated marketing
D) immediate predecessors

Accepted Answer

Marie is focusing on efficiency, which involves achieving goals with minimal costs and resources.

Question 5

Foodies Bakery is popular for the variety of bread and cookies it offers. Pistachio cookies are its best-selling product. In this scenario, pistachio cookies are an example of a(n) _____.
A) intangible product
B) nondurable good
C) complementary product
D) durable good

Accepted Answer

Pistachio cookies are a nondurable good because they are consumed quickly and have a short lifespan.

Question 6

Computer-aided design/computer-aided manufacturing (CAD/CAM) is a combination of software that can be used to design output and send instructions to automated equipment to perform the steps needed to produce this output.

Accepted Answer

CAD/CAM software is used to design products and control manufacturing processes, allowing for the creation and execution of precise instructions for automated machinery.

Question 7

In operations management, _____ means using resources to create value by providing customers with goods and services that offer a better relationship between price and perceived benefits.
A) effectiveness
B) efficiency
C) throughput
D) productivity

Accepted Answer

Effectiveness in operations management refers to creating value by providing customers with goods and services that offer a better relationship between price and perceived benefits.

Question 8

Mass production strategy:
A) focuses on meeting the needs of specific customers.
B) is based on the pull system of process flow.
C) facilitates mass customization.
D) keeps costs low by making efficient use of capital.

Accepted Answer

Mass production strategy is designed to keep costs low by making efficient use of capital, typically through economies of scale and standardized processes.

Question 9

Robots maintain a consistently high level of performance.

Accepted Answer

Robots are not affected by fatigue or other factors that can impair human performance, so they can maintain a consistently high level of performance.

Question 10

In today's highly competitive global markets, operations managers:
A) realize that a product that offers better features attracts more customers than one that has a lower price.
B) recognize that achieving efficiency is more important than achieving effectiveness.
C) focus primarily on keeping costs low to make a profit while keeping prices competitive.
D) focus solely on the benefits of products, while completely ignoring the costs of manufacturing those products.

Accepted Answer

The answer of In today's highly competitive global markets, operations...

Question 11

The only standard in the ISO 9000 family for which organizations can be certified is ISO 9011.

Accepted Answer

ISO 9001 is the standard in the ISO 9000 family for which organizations can be certified, not ISO 9011.

Question 12

Greg owns a furniture business and produces only enough goods to meet the current demand. This helps him save inventory-holding costs. In the given scenario, Greg uses just-in-time (JIT) production.

Accepted Answer

Just-in-time (JIT) production is a strategy where goods are produced only as they are needed, minimizing inventory costs by aligning production closely with demand.

Question 13

Unlike goods, services are _____.
A) tangible
B) consumed
C) experienced
D) palpable

Accepted Answer

Services are experienced, unlike goods which are tangible.

Question 14

Ursula Corp., a manufacturer of notebooks, makes small batches of different kinds of notebooks according to the customer demand. In this way, it caters to the needs of various customers without significantly increasing the manufacturing cost. In this scenario, which of the following techniques does Ursula employ?
A) Computer-aided engineering
B) Mass production
C) Adjustable manufacturing
D) Mass customization

Accepted Answer

Ursula Corp. is using mass customization, which allows for the production of small batches tailored to customer demands without significantly increasing costs, combining the efficiency of mass production with the personalization of custom manufacturing.

Question 15

David works in a small manufacturing firm that makes customized office furniture. He feels it is important to work directly with customers to design high-quality furniture that meets their needs. He believes that doing so would create more value for customers and provide a better relationship between the price of the product and its benefits. In the context of operations management, David most likely focuses on _____.
A) mass production
B) efficiency
C) effectiveness
D) undifferentiated marketing

Accepted Answer

David focuses on effectiveness, as he prioritizes meeting customer needs and creating value through customized, high-quality products.

Question 16

Nondurable goods are often _____.
A) perishable
B) non-consumable
C) hard goods
D) long-lasting

Accepted Answer

Nondurable goods are often perishable because they are consumed quickly and have a short lifespan, such as food and beverages.

Question 17

VRM Cars is a custom car shop that buys and sells modified cars. It also provides customers with the option of adding more features to the models available in the market. In this scenario, VRM Cars deals in _____.
A) intangible goods
B) nondurable goods
C) complementary goods
D) durable goods

Accepted Answer

VRM Cars deals in durable goods, as cars are long-lasting products that do not wear out quickly and provide utility over time.

Question 18

ISO 14000 standards establish specific goals for environmental performance.

Accepted Answer

ISO 14000 standards provide a framework for organizations to manage environmental responsibilities but do not set specific environmental performance goals.

Question 19

Harry's Inc., a manufacturer of men's apparel, manufactures large quantities of the company's basic clothing lines to keep the manufacturing costs low. Given this information, it can be inferred that Harry's Inc. pursues:
A) just-in-time production.
B) mass production.
C) mass customization.
D) lean production.

Accepted Answer

Harry's Inc. manufactures large quantities to keep costs low, which is characteristic of mass production, focusing on efficiency and economies of scale.

Question 20

Krest Bank has installed over 50 ATMs across the city. Its customers can use these ATMs to deposit cash into their bank accounts at their convenience. In this scenario, Krest Bank offers its customers a _____.
A) nondurable good
B) perishable product
C) service
D) process

Accepted Answer

ATMs providing the ability to deposit cash is a service offered by Krest Bank to its customers.

Quiz 17: Operations Management: Putting It All Together

In the context of operations management, for the first 25 years after World War II, which of the following was true of the United States?

In the context of American business, which of the following statements is true of the changing scenario of operations management over the last five decades?

Foodies Bakery is popular for the variety of bread and cookies it offers. Pistachio cookies are its best-selling product. In this scenario, pistachio cookies are an example of a(n) _____.

Computer-aided design/computer-aided manufacturing (CAD/CAM) is a combination of software that can be used to design output and send instructions to automated equipment to perform the steps needed to produce this output.

In operations management, _____ means using resources to create value by providing customers with goods and services that offer a better relationship between price and perceived benefits.

Mass production strategy:

Robots maintain a consistently high level of performance.

In today's highly competitive global markets, operations managers:

The only standard in the ISO 9000 family for which organizations can be certified is ISO 9011.

Greg owns a furniture business and produces only enough goods to meet the current demand. This helps him save inventory-holding costs. In the given scenario, Greg uses just-in-time (JIT) production.

Unlike goods, services are _____.

Nondurable goods are often _____.

VRM Cars is a custom car shop that buys and sells modified cars. It also provides customers with the option of adding more features to the models available in the market. In this scenario, VRM Cars deals in _____.

ISO 14000 standards establish specific goals for environmental performance.

Harry's Inc., a manufacturer of men's apparel, manufactures large quantities of the company's basic clothing lines to keep the manufacturing costs low. Given this information, it can be inferred that Harry's Inc. pursues:

Krest Bank has installed over 50 ATMs across the city. Its customers can use these ATMs to deposit cash into their bank accounts at their convenience. In this scenario, Krest Bank offers its customers a _____.