Strayer bus 430 quiz 1 – operations management (latest 2014)



Instructions This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 1. The second 15 questions cover the material in Chapter 2. Be sure you are in the correct Chapter when you take the quiz.

• Question 1
The quality revolution is most related to

Continuous improvement

Mass production

Time-based competition

• Question 2
3 out of 3 points
The three issues that are at the core of operations management include all of the following except




• Question 3
3 out of 3 points
Which of the following is the correct sequence describing the evolution of operations management?
• Question 4
3 out of 3 points
efficiency, customization, quality, service, sustainability, time-based competition

quality, efficiency, time-based competition, sustainability, customization, service

efficiency, quality, customization, time-based competition, service, sustainability

quality, service, customization, time-based competition, efficiency, sustainability

Which of the following is not a key activity of an operations manager?

translating market knowledge into goods, services, and processes

continually learning and adapting to global and environmental changes

managing cash flows and strategic investments

exploiting technology to improve productivity
• Question 5
3 out of 3 points
Support processes would typically include all of the following except
inventory management

customer help desk operations

research and development

manufacturing and assembly

The following terms — interchangeability of parts, division of labor, highly repetitive tasks — best relate to a focus on




• Question 7
Which is generally related to service operations?

tangible product

need for flexible capacity

separation of production from consumption

large amount of inventory
• Question 8
A customer benefit package (CBP) includes

only core offerings

only peripheral offerings

either core or peripheral offerings but not both

both core offerings as well as peripheral offerings
• Question 9
Which one of the following has the lowest goods content?

automobile muffler replacement

computer diagnosis and repair

movie presentation

fast food restaurant

Which of the following would be the lowest in goods content and highest in service content?

fast food restaurant

attending a theater production

getting an oil change for your car

filling a medical prescription
• Question 11
A golf simulator in a retail sports store is an example of
non-durable goods replacing services

primary good

goods content


• Question 12

In relating operations management and the customer benefit package (CBP), which is the correct timing sequence?

Operating system processes lead to customer needs and expectations, which lead to customer benefit package.

Customer benefit package leads to customer needs and expectations, which lead to operating system processes.

Customer needs and expectations lead to customer benefit package, which leads to operating system processes.

Customer needs and expectations lead to operating system processes, which lead to customer benefit package.
• Question 13
Computer software would be an example of

an intangible good

a nondurable good

a service

a value creation process
• Question 14

A value creation process could be any of the following except

shipping a customer’s order

providing a home mortgage

assembling a dishwasher

purchasing production material
• Question 15
Service management skills would include all of the following except

accounting and finance

knowledge and technical expertise about operations

marketing and cross-selling

human interaction
• Question 16
A company has two alternatives for meeting a customer requirement for 9,000 units of a specialty molding. If done in-house, fixed cost would be $350,000, with variable cost at $30 per unit. If outsourced, the cost is $80 per unit. Determine the breakeven point and determine if they should make the item in-house or outsource it.

breakeven point = 7,000 units; outsource

breakeven point = 7,000 units; make in-house

breakeven point = 11,667 units; outsource

breakeven point = 11,667 units; make in-house

• Question 17

Which of the following generally does not result from vertical integration?

a. less control over cost

b. more control over quality

c. more complexity in managing

d. higher levels of risk

• Question 18

• Question 19
The first, second, and third waves of outsourcing experienced by the U.S. are
a. goods-producing jobs, simple service work, skilled knowledge work

b. simple service work, goods-producing jobs, skilled knowledge work

c. simple service work, skilled knowledge work, goods-producing jobs

d. skilled knowledge work, simple service work, goods-producing jobs
• Question 20

3 out of 3 points

When break-even analysis is applied to an outsourcing decision, the breakeven quantity is

the ratio of fixed costs to the difference between variable outsourcing cost and variable in-house production cost

the ratio of the difference between variable outsourcing cost and variable in-house production cost to fixed costs

the product of the variable costs times the fixed costs

the product of the variable costs times the production quantity
• Question 21
3 out of 3 points
The United States has experienced three waves of outsourcing. Which of the following is not one of the waves?

Skilled knowledge work
Mass customization
Simple service work
Goods-producing jobs

Question 22
In the value chain model for a hospital, patients, drugs and staff would be considered
a. Suppliers
b. Inputs
c. Transformation processes
d. Outputs
Question 23

____ is the process of managing information, services and physical goods to insure their availability at the right place, at the right time, at the right cost and at the right quantity, with the highest attention given to quality.

Value proposition
Operational structure
Value chain integration
• Question 24
3 out of 3 points
____ integration refers to acquiring capabilities at the front of the supply chain, whereas ____ integration refers to acquiring capabilities toward the back end of the supply chain.

a. Buy, make
b. Make, buy
c. Forward, backward
d. Backward forward
• Question 25
From the pre- and post-service view of a value chain, goods and services design, contract negotiation and consulting services would be considered

pre-production services

a production processes

post-production services

value creation
• Question 26
For a restaurant, order-taking, bill payment and home delivery would be considered




• Question 27
Which of the following is not normally considered a variable cost?



Equipment lease

• Question 28
Which of the following is not a component of a value chain?

goods and services


sources of labour

financial transactions
 Question 29
Outsourcing is

the same as offshoring

the opposite of vertical integration

the opposite of backward integration

the same as diversifying
• Question 30
A competitively dominant customer experience is often called a

perceived benefit

preemptive strike

moment of truth

value proposition




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