QUESTIONS AND CORRECT ANSWERS
Ann's of Austin produces a premium Passion Fruit sorbet for local restaurants. Ann has unit costs of
$1.60 per gallon (labor, 80 cents; materials, 70 cents; and overhead, 10 cents) and she sells the
product for $2.00 per gallon. What is her multifactor productivity? - CORRECT ANSWER 1.25
Gymtastic was able to serve large crowds of customers and then adjust operations to serve very few
customers thanks to their competitive capability related to
Part 2 - CORRECT ANSWER flexibility.
Operations strategy translates service or product plans and competitive priorities for each market
segment into - CORRECT ANSWER decisions affecting the processes that support those
market segments.
What do all processes have? - CORRECT ANSWER inputs and outputs
Which of the following are characteristics of service provider operations? - CORRECT
ANSWER Perishable outputs
While other suppliers bidding for the contract brought bids with lower per unit costs, Orchard wanted
to take delivery based on the fact that the components they were using were machined to their
exacting specifications 99.99999% of the time.
Orchard's competitive priority was:
Part 2 - CORRECT ANSWER consistent quality.
A company's ability to quickly introduce a new service or product would be best described as: -
CORRECT ANSWER development speed.
Admission to the prestigious school had become so competitive that a high GPA is no longer enough
to separate one fresh-faced high school student from another. Today's outstanding candidate must also
demonstrate their involvement in a myriad of extracurricular activities in order to be admitted. It
seems that good grades are now: - CORRECT ANSWER order qualifiers.
, A front office structure features high levels of customer contact where the service provider interacts
directly with the internal or external customer. - CORRECT ANSWER True
The process structure that best describes a waiter's position at a restaurant would be classified as:
Question content area bottom
Part 1 - CORRECT ANSWER Front Office
Line processes generally have lower volumes as compared to job processes. - CORRECT
ANSWER False
The product-process matrix brings together the elements of volume, process, and quality. - CORRECT
ANSWER False
A make-to-order strategy produces products to customer specifications in large volumes. - CORRECT
ANSWER False
A petroleum refinery would use which process? - CORRECT ANSWER Continuous flow
process
A manufacturer that produces standard products in large volumes is likely to be using a(n): -
CORRECT ANSWER Make-to-stock strategy.
A company is considering two options for the production of a part needed downstream in the
manufacturing process. Particulars are as follows:
Specialized automation
Fixed Costs = $12,000 / month
Variable Cost / Unit = $3
General automation:
Fixed Costs = $4,000 / month
Variable Cost / Unit = $8
What is the monthly break-even quantity for choosing between the two automation approaches? -
CORRECT ANSWER 1,600 units