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