OPM 3000 EXAM 1 QUESTIONS AND ANSWERS
Consumption utility measures how much you like a product or service, ignoring the effects of price and
the inconvenience of obtaining the product or service. What are the two subcomponents of
"consumption utility"? - CORRECT ANSWER✅✅Performance and Fit
What are the two subcomponents of inconvenience? - CORRECT ANSWER✅✅Location and Timing
: A fast-food restaurant promising a meal in two minutes or less attempts to cater to which dimension of
the customer utility function? - CORRECT ANSWER✅✅Timing
Which of the following indicates that a car manufacturing company is prioritizing "fit" dimension of
customer utility? - CORRECT ANSWER✅✅It sells cars in several different colors -- from very popular to
very obscure
: Panos' Pizza shop prepares standard pizzas for its customers even before customers place order,
whereas at Julie's Pizza shop customers order pizzas by specifying all the toppings they want in the pizza.
At Julies's Pizza shop there is usually a line of customers waiting for their orders, whereas as Panos' Pizza
shop customers do not have to wait much. This example illustrates the following strategic trade-off: -
CORRECT ANSWER✅✅Fit vs Timing
A mattress manufacturing company sells its mattresses only online through a website at "shockingly
low" prices as compared to mattress retail stores. It is able to achieve such low prices by selling directly
to customers rather than through a retailer. The company is sacrificing __________ dimension of the
utility to better serve ___________ dimension - CORRECT ANSWER✅✅Time, Price
Subway promises its customers highly customized and freshly prepared sandwiches. Which of the
following changes align with Subway's strategy? - CORRECT ANSWER✅✅Offering to toast vegetables
along with toasting bread and cheese
McDonalds promises to offer its customers fast delivery of inexpensive food items (such as burgers). The
change of offering custom made burgers is not aligned with this strategy because of which of the
following reasons? - CORRECT ANSWER✅✅Custom made burgers will increase time and cost
, Efficient frontier is characterized by: - CORRECT ANSWER✅✅All the companies that are more profitable
than other companies
Hotel Price Reviews (1 = worst . . . 5 = best)
H1 $100 2
H2 $250 5
H3 $200 4
H4 $150 2 - CORRECT ANSWER✅✅H4 is Pareto dominated by H1
Which of the following is a resource in pizza making process at a Pizza restaurant?
A. Pizza boxes B. Oven C. Pizza D. Customer orders - CORRECT ANSWER✅✅Oven
An example of a flow unit at a fast-food restaurant is: - CORRECT ANSWER✅✅the customers
Arrivals and departures to an UrgentCare clinic are collected and reported below:
Patient Arrival Time Departure Time
1 8:05am 8:45am
2 8:30am 9:15am
3 9:23am 10:26am
4 10:00am 10:53am
5 10:15am 11:45am
6 10:40am 11:55am
If the clinic is open from 8:00am to noon, what is the flow rate of patients in patients/hour? - CORRECT
ANSWER✅✅1.5 patients/hr
Five customers visit a bakery from 8 a.m. to 10 a.m. The customers spend 6, 13, 4, 10 and 21 minutes in
the bakery. What is the average flow time (in minutes) of a customer at this bakery? (Specify your
answer in at least one decimal points) - CORRECT ANSWER✅✅(6+13+4+10+21)/6 = 9 minutes
Consumption utility measures how much you like a product or service, ignoring the effects of price and
the inconvenience of obtaining the product or service. What are the two subcomponents of
"consumption utility"? - CORRECT ANSWER✅✅Performance and Fit
What are the two subcomponents of inconvenience? - CORRECT ANSWER✅✅Location and Timing
: A fast-food restaurant promising a meal in two minutes or less attempts to cater to which dimension of
the customer utility function? - CORRECT ANSWER✅✅Timing
Which of the following indicates that a car manufacturing company is prioritizing "fit" dimension of
customer utility? - CORRECT ANSWER✅✅It sells cars in several different colors -- from very popular to
very obscure
: Panos' Pizza shop prepares standard pizzas for its customers even before customers place order,
whereas at Julie's Pizza shop customers order pizzas by specifying all the toppings they want in the pizza.
At Julies's Pizza shop there is usually a line of customers waiting for their orders, whereas as Panos' Pizza
shop customers do not have to wait much. This example illustrates the following strategic trade-off: -
CORRECT ANSWER✅✅Fit vs Timing
A mattress manufacturing company sells its mattresses only online through a website at "shockingly
low" prices as compared to mattress retail stores. It is able to achieve such low prices by selling directly
to customers rather than through a retailer. The company is sacrificing __________ dimension of the
utility to better serve ___________ dimension - CORRECT ANSWER✅✅Time, Price
Subway promises its customers highly customized and freshly prepared sandwiches. Which of the
following changes align with Subway's strategy? - CORRECT ANSWER✅✅Offering to toast vegetables
along with toasting bread and cheese
McDonalds promises to offer its customers fast delivery of inexpensive food items (such as burgers). The
change of offering custom made burgers is not aligned with this strategy because of which of the
following reasons? - CORRECT ANSWER✅✅Custom made burgers will increase time and cost
, Efficient frontier is characterized by: - CORRECT ANSWER✅✅All the companies that are more profitable
than other companies
Hotel Price Reviews (1 = worst . . . 5 = best)
H1 $100 2
H2 $250 5
H3 $200 4
H4 $150 2 - CORRECT ANSWER✅✅H4 is Pareto dominated by H1
Which of the following is a resource in pizza making process at a Pizza restaurant?
A. Pizza boxes B. Oven C. Pizza D. Customer orders - CORRECT ANSWER✅✅Oven
An example of a flow unit at a fast-food restaurant is: - CORRECT ANSWER✅✅the customers
Arrivals and departures to an UrgentCare clinic are collected and reported below:
Patient Arrival Time Departure Time
1 8:05am 8:45am
2 8:30am 9:15am
3 9:23am 10:26am
4 10:00am 10:53am
5 10:15am 11:45am
6 10:40am 11:55am
If the clinic is open from 8:00am to noon, what is the flow rate of patients in patients/hour? - CORRECT
ANSWER✅✅1.5 patients/hr
Five customers visit a bakery from 8 a.m. to 10 a.m. The customers spend 6, 13, 4, 10 and 21 minutes in
the bakery. What is the average flow time (in minutes) of a customer at this bakery? (Specify your
answer in at least one decimal points) - CORRECT ANSWER✅✅(6+13+4+10+21)/6 = 9 minutes
