Question 1

Which of the following is not a characteristic of services?

Accepted Answer

Services cannot be stored or kept for future use as they are intangible, unlike goods that can be stored in warehouses or inventory.

Question 2

An experiment found that consumer preference for Tempomax watches fell by 74 percent when the consumers were told that Tempomax watches were produced in Pakistan instead of Germany. Which term best explains this occurrence?

Accepted Answer

The drop in consumer preference for Tempomax watches after learning about their country of origin demonstrates the country-of-origin effect, which refers to the influence that a product's country of production has on consumers' perceptions and willingness to purchase it.

Question 3

A product's value-to-weight ratio primarily affects ________.

Accepted Answer

The value-to-weight ratio of a product is a key factor in determining transportation costs, as it directly affects the amount of space and weight required for shipping. Products with high value-to-weight ratios are generally more cost-effective to transport, as they take up less space and require less overall weight for a given value. This can impact a company's logistics decisions and overall transportation strategy.

Question 4

How did the 2011 earthquake and tsunami in Japan affect both GM and Toyota?

Accepted Answer

The 2011 earthquake and tsunami in Japan disrupted supply chains for both GM and Toyota, affecting their production and ultimately their sales.

Question 5

When Nissan chose to locate a new manufacturing facility in Jackson, Mississippi, it received $295 million in incentives. What factor was likely the most critical in the location decision?

Accepted Answer

The $295 million in incentives provided by the government was likely the most critical factor in Nissan's decision to locate its manufacturing facility in Jackson, Mississippi.

Question 6

Larson Financial Services, an international accounting firm, provides customers with tax advice. Which characteristic of international services is most likely an issue for Larson?

Accepted Answer

The answer of Larson Financial Services, an international accounting firm,...

Question 7

The Swedish appliance maker AB Electrolux manufactures vacuum cleaners and has service operations set up to repair those products for consumers who buy them. AB Electrolux is most likely attempting to ________.

Accepted Answer

AB Electrolux is most likely attempting to bundle sales with service by offering repair services for the vacuum cleaners they sell. This allows them to retain customers and provide additional value to their products.

Question 8

The suppliers used by Morrison Controls deliver components directly to Morrison's manufacturing center as the inputs are needed for production to minimize Morrison's inventory costs. Morrison most likely uses ________.

Accepted Answer

Morrison Controls uses the just-in-time system, which involves suppliers delivering components directly to the manufacturing center as they are needed for production to minimize inventory costs. This is a type of supply chain management system that focuses on reducing lead times and eliminating waste.

Question 9

What function is LEAST likely performed in the management of international services operations?

Accepted Answer

Distribution scheduling is a function that is more related to the management of domestic services operations rather than international ones. This is because international services operations usually involve different modes of transportation, customs regulations, and time zone differences, which make distribution scheduling more complex and challenging. Therefore, while capacity planning, facilities designing, and location planning are essential functions in the management of international services operations, distribution scheduling is less likely to be performed.

Question 10

Patricia, a manager at Global Airways, has the responsiblity of deciding how many passengers Global Airways can serve at a given time. Patricia is most likely involved with ________.

Accepted Answer

Capacity planning involves the decision-making process of determining the maximum amount of products or services a company can produce or deliver at a given time, which is exactly Patricia's responsibility in Global Airways. Operations management (A) and service operations management (D) are broader concepts that include tasks such as managing resources, ensuring quality, and improving efficiency in the delivery of products and services. Services production planning (B) is not a specific management concept.

Question 11

Which of the following is NOT a characteristic of the Tata Nano?

Accepted Answer

The answer of Which of the following is NOT a...

Question 12

The management of the flow of materials, parts, supplies, and other resources from suppliers to the firm combined with the flow of materials, parts, supplies, and other resources within and between units of the firm itself is called ________.

Accepted Answer

Materials management involves all aspects of managing the flow of materials within a firm, including procurement, inventory management, quality control, and transport. The other choices, while related to the management of resources, do not encompass all the aspects of materials management.

Question 13

________ is the management of the flow of materials, parts, supplies, and other resources from suppliers to the firm; the flow of materials, parts, supplies, and other resources within and between units of the firm itself; and the flow of finished products, services, and goods from the firm to customers.

Accepted Answer

The answer of ________ is the management of the flow...

Question 14

Multiple tables at Red Lobster were empty yesterday afternoon. Which characteristic of services is most likely a concern for the restaurant chain?

Accepted Answer

Service perishability refers to the fact that services cannot be stored or saved for later use. In this case, the empty tables represent lost revenue that cannot be recovered. This is likely a concern for Red Lobster and highlights the importance of managing capacity and demand for their services.

Question 15

________ is an economic measure of efficiency that summarizes the value of outputs relative to the value of the inputs used to create the outputs.

Accepted Answer

Productivity is the economic measure of efficiency that summarizes the value of outputs relative to the value of the inputs used to create the outputs. GNP measures the total economic output of a country, turnover ratio measures the liquidity of a company and return on investment measures the profitability of an investment.

Question 16

Which service typically cannot occur without customer participation?

Accepted Answer

The answer of Which service typically cannot occur without customer...

Question 17

Nissan stores hundreds of cars that will be sold in the southern part of North America at the Port of Houston. How does Nissan most likely benefit from this arrangement?

Accepted Answer

The answer of Nissan stores hundreds of cars that will...

Question 18

Productivity is most likely important because it ________.

Accepted Answer

Productivity is important because it contributes to the overall standard of living within a particular country. It determines how efficiently resources are used, which affects economic growth and the ability to produce goods and services at a competitive price.

Question 19

Which of the following has enabled international firms, such as Zara and Urban Outfitters, to improve their logistical operations?

Accepted Answer

Changes in information technology have enabled international firms to improve their logistical operations by providing them with better tools for tracking inventory, managing supply chains, and analyzing data. This has allowed companies like Zara and Urban Outfitters to improve their efficiency, reduce costs, and respond more quickly to changes in consumer demand. The other options (B, C, and D) may have played a role in the expansion of these companies' operations, but they are less directly related to improvements in logistics.

Question 20

A(n) ________ is a specially designated and controlled geographical area in which imported or exported goods receive preferential tariff treatment.

Accepted Answer

A free trade zone is a specially designated and controlled geographical area where imported or exported goods receive preferential tariff treatment, meaning that they are not subject to the same tariffs and trade barriers as goods that enter or leave the country outside the zone. This system allows for companies to import raw materials or other inputs duty-free, assemble or manufacture goods with them, and then re-export the finished product with reduced or no tariffs.

Quiz 17: International Operations Management