OTM 300 (UW-Madison Tim McCLurg) QUESTIONS WITH CORRECT ANSWERS

OTM 300 (UW-Madison Tim McCLurg)
QUESTIONS WITH CORRECT ANSWERS


Utility - CORRECT ANSWERS ✔✔a measure os the strength of customer
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preferences for a given product or service. Customers buy the product or
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service that maximizes their utility
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What are the 3 components of utility? - CORRECT ANSWERS ✔✔1.
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Consumption Utility
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\/| A. Performance
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\/| B. Fit \/| \/|




2. Price\/| \/|




3. Inconvenience (Transaction cost)
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\/| A. Location
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\/| B. Timing\/|




consumption utility - CORRECT ANSWERS ✔✔a measure of how much you like
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a product or service, IGNORING the effects of price and of the inconvenience
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of obtaining the product or service
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A. Performance
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B. Fit \/|

,Price - CORRECT ANSWERS ✔✔total cost of owning the product or receiving
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the service
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Fit - CORRECT ANSWERS ✔✔captures how well the product or service
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matches with the unique characteristics of a given customer
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Performance - CORRECT ANSWERS ✔✔captures how much an average \/| \/| \/| \/| \/| \/| \/| \/|




consumer desires a product
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Inconvenience (Transaction Cost) - CORRECT ANSWERS ✔✔reduction in \/| \/| \/| \/| \/| \/| \/|




utility that results from the effect of obtaining the product or service
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A. Location
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B. Timing
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Demand - CORRECT ANSWERS ✔✔set of consumers for whole a specific
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product or service is the best choice
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capabilities - CORRECT ANSWERS ✔✔dimensions of the sutlers utility \/| \/| \/| \/| \/| \/| \/| \/|




function a firm is able to satisfy
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Tradeoffs - CORRECT ANSWERS ✔✔The sacrifice of one capability in order to
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increase another
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market segment - CORRECT ANSWERS ✔✔a set of customers who have a
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similar utility function
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,Pareto dominated - CORRECT ANSWERS ✔✔Pareto dominated means that a
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firm's product or service is inferior to one or multiple competitors on all
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dimensions of the customer utility function
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Pareto dominated chart - CORRECT ANSWERS ✔✔Pareto dominated means
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that a firm's product or service is inferior to one or multiple competitors on
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all dimensions of the customer utility function
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Efficient Frontier - CORRECT ANSWERS ✔✔The set of firms that are NOT
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Pareto dominated (they are on the efficient frontier and don't have other
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competitors in their upper right corner)
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profit - CORRECT ANSWERS ✔✔revenue earned - costs incurred
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3 system inhibitors - CORRECT ANSWERS ✔✔1. Waste
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2. Variability
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\/| A. Demand Variability
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\/| B. Supply Variability
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3. Inflexibility
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Waste - CORRECT ANSWERS ✔✔the consumption of inputs and resources that
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do not add value to the customer
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ex: labor waste, waste due to materials used inefficiently
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, Variability - CORRECT ANSWERS ✔✔predictable or unpredictable changes in\/| \/| \/| \/| \/| \/| \/| \/|




the demand or the supply process
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A. Demand Variability
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- customer arrivals (when will they get there)
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- customer requests (what will they demand)
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- customer behavior (how will they act)
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B. Supply Variability
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- time to serve customer
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- disruptions (something broken?)
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- defects (wrong order)
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Inflexibility - CORRECT ANSWERS ✔✔the inability to adjust to either changes \/| \/| \/| \/| \/| \/| \/| \/| \/| \/|




in the supply process or changes in customer demand
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Tools to solve issues in OTM (4) - CORRECT ANSWERS ✔✔1. Process analysis
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and improvement
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2. Process productivity and quality
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3. Anticipate customers demand
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4. Respond to customer demand
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Succeeding through Operations - CORRECT ANSWERS ✔✔1. Make the right \/| \/| \/| \/| \/| \/| \/| \/| \/|




tradeoffs
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