Ch. 1 Introduction To Operation Managements
For a given level of costs, the higher the revenue, the _blank_ the profits.
higher
Organizations can improve their business by reducing ___ so that they do not have to sacrifice one performance dimension for another.
inefficiency
A firm that is Pareto dominated by all of its competitors is _blank_.
inefficient
The cost of power supply cords that a computer manufacturer purchases to package with the computer is an example of a(n) _blank_ cost.
input
Companies employ individuals to manage acquiring the ___ needed to serve customers.
inputs
If shipping company A offers longer delivery times than shipping company B and has higher delivery costs, then it _blank_ on the efficient frontier.
is not
The nearer the location the _blank_ the inconvenience component.
less
For a given level of revenue, the higher the costs, the _blank_ the profit.
lower
Customers willing to pay for same day shipping are in a different ___ segment from those willing to save money by waiting two days for their order to arrive.
market
Customers with different preferences for the same type of goods are in different ___ segments.
market
Determining customers wants and preferences is the primary function of _blank_.
marketing
Understanding how customers derive utility from products and services is the primary function of ___
marketing
Customers buy products that ___ their utility.
maximize
The further the location the _blank_ the inconvenience component.
more
The more you have to wait the _blank_ the inconvenience component.
more
The three sources of inefficiency are also called the three _blank_ inhibitors.
system
Which expenses are included in the price?
- Financing - Shipping
What are variables that firms may need to consider in addition to the two variables traditionally associated with graphs showing the efficient frontier?
- Human rights - Sustainability
Which statements correctly describe the efficient frontier?
- It is traditionally drawn as a two-dimensional graph. - It is always the goal of firms to achieve the highest customer utility and lowest unit cost. - It may be impacted by variables other than customer utility and unit cost.
Identify the three system inhibitors that make it complicated to match supply with demand, while also making a profit.
- Waste of inputs or resources - Inflexibility of supply at certain times - Variability in supply and demand
True or false: How far you have to drive to the store to buy an item impacts the consumption utility you associate with it.
False
True or false: It is common for an organization to be able to improve on all three dimensions of customer utility.
False
True or false: McDonald's and Subway have the same capabilities.
False
True or false: The price of an item impacts the consumption utility you associate with it.
False
___ is the system inhibitor that refers to a firm's inability to quickly and cheaply respond to new information.
Inflexibility
A firm is ___ dominated when its competitors perform equally or better on all attributes of the customer's utility function.
Pareto
Suppose a new restaurant, John's Burgers, offers better tasting food that is custom-made, takes less time to prepare, and costs less than what McDonald's offers. John's Burgers ___ dominates McDonald's.
Pareto
___ includes the total cost of owning the product or receiving the service.
Price
True or false: An online retailer offering same-day shipping impacts the inconvenience component of utility.
True
True or false: Freshness is a performance attribute for fruit.
True
True or false: Fuel economy is a performance attribute for a car.
True
True or false: Matching supply with demand is complicated by inhibitors such as demand variability.
True
True or false: Movie genre is a fit attribute.
True
True or false: The higher the utility associated with an item the more likely you are to choose it
True
True or false: The size of a cell phone is a fit attribute.
True
Companies seeking external help with managing and improving their operations often hire ___ ___
consulting companies
If one customer spends 5 minutes taking out $20 from an ATM and another spends 2 minutes taking out $20 from the same ATM, then there is variability in customer ___
behavior
Inflexibility is the inability of an operation to quickly and ___ change in response to new information.
cheaply
Demand is driven by the ___ utility of the product or service, its price, and the associated inconvenience for customers.
consumption
A firm's capabilities are defined as the dimensions of the ___ utility function it is able to satisfy.
customer
When organizations make a trade-off, they focus on meeting one dimension of ___ utility in favor of another.
customer
In the context of a business where products and services are offered to customers, demand is created by the ___
customers
When an automotive supplier ships a batch of seat belts that do not latch properly, there is variability due to ___
defects
When there are 10 call center operators scheduled but only 9 show up, there is variability due to ___
disruptions
Inefficiency can be visualized as the gap between a firm's current position and the ___ ___
efficient frontier
The set of firms in the industry that are not Pareto-dominated is defined as an ___ ___ in an industry.
efficient frontier
Organizations can improve their business by making trade-offs among the dimensions of ___
performance
Demand is driven by the consumption utility for a product, its ___ , and the inconvenience for customers.
price
When choosing a shipping option when ordering online, customers trade off speed and ___
price
If the first customer to a restaurant wants a salad and the second wants a sandwich, then there is variability in customer _blank_.
requests
Companies employ individuals to manage the ___ needed to serve their customers.
resources
___ are the things a business uses to help transform inputs into outputs.
resources
A trade-off between responsiveness and costs is referred to as a ___ trade-off.
strategic
If an employee is distracted and takes longer than normal to serve a customer, it shows that Blank______ is a form of variability in supply.
time
When a call center operator spends 5 minutes on the first customer phone call of the day and 10 on the second customer phone call, there is variability in ___ to serve a customer.
time
Economists often refer to the inconvenience component as ___ costs.
transaction
According to economic theory, a consumer buys an SUV--instead of a passenger car--because she or he expects to achieve the highest ___ from buying an SUV.
utility
Customers buy products that maximize their ___
utility
Economic theory suggests that a consumer's choice of a good or service is based on where he or she expects to achieve the highest _blank_.
utility
One of the components of utility is consumption ___
utility
When 25 customers arrive between 8:00 am and 9:00 am and 10 customers arrive between 9:00 am and 10:00 am, we are experiencing ___ in demand.
variability
When a computer manufacturer makes 250 personal computers on Monday and 100 on Tuesday, it is experiencing ___ in supply, which is a type of system inhibitor.
variability
Because ___ does not add value to the customers, the customer is not willing to pay for it
waste
___ is the inhibitor that refers to the consumption of resources or inputs that do not add value to the customer.
waste
The three sources of inefficiency are ___ ,___ , and ___
waste; variability; inflexibility