Operations Chapter 1
For a given level of costs, the higher the revenue the ______ the profits.
higher
Companies employ individuals to manage acquiring the
inputs
Companies employ individuals to manage acquiring the
inputs needed to serve customers.
The less you have to wait the ______ the inconvenience component.
less
The nearer the location the ______ the inconvenience component.
less
For a given level of revenue, the higher the costs the _____ the profit.
lower
Determining customers wants and preferences is the primary function of ______.
marketing
Understanding how customers derive utility from products and services is the primary function of
marketing
Customers buy products that
maximize their utility
The further the location the ______ the inconvenience component.
more
The more you have to wait the ______ the inconvenience component.
more
You associate a higher utility with item A than item B and a higher utility with item C than item A. Which item do you choose?
C
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: 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
True or false: The size of a cellular phone is a performance attribute.
False
True or false: The speed of an Internet connection is a fit attribute.
False
True or false: Matching supply with demand is complicated by inhibitors such as demand variability.
True
Which expenses are included in the price?
Shipping Financing
True or false: A pizza delivery chain offering a 30-minutes or less guarantee on their pizza orders impacts the inconvenience component of utility.
True
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: Movie genre is a fit attribute.
True
Identify the three system inhibitors that make it complicated to match supply with demand, while making a profit.
Variability in supply and demand Inflexible supply at certain times Waste of inputs or resources
Companies seeking external help with managing and improving their operations often hire
consulting firms
When organizations make a trade-off they focus on meeting one dimension of
consumer utility in favor of another.
When choosing a shipping option when ordering online, customers trade off speed and
cost
When there are 10 call center operators scheduled but only 9 show up there is variability due to
disruptions
Waste _______ add value to the customer.
does not
Organizations can improve their business by making trade-offs among the dimensions of
performance
Matching supply with demand means providing customers what they want, while also making a
profit
Inflexibility is the inability of an operation to
quickly and cheaply change in response to new information.
If the first customer to a restaurant wants a salad and the second wants a sandwich then there is variability in customer
requests
The cost of robots used on an automotive assembly line would be costs for ________.
resources
are the things in a business that help transform input into output.
resources
Companies employ individuals to manage the
resources needed to serve their customers.
The goal of operations management is to match
supply with demand
The three sources of inefficiency are also called the three ______ inhibitors.
system
If an employee is distracted and takes longer than normal to serve a customer, it shows that ______ can be a variability in supply.
time
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 ______.
utility
