Business Management 3130 Midterm EXAM Questions AND
Correct Answers
3 service design methods - ✔✔1. the production line approach
2. the self-service approach
3. the personal attention approach
5 competitive dimensions - ✔✔1. cost
2. quality
3. time (delivery, speed)
4. flexibility (customization, variety)
5. others (returns, service and support, certifications,
environmental concerns)
5 distinct management processes - ✔✔1. planning
2. sourcing
3. making (transformation process)
4. delivering (logistics)
5. returning (bringing things back from customer)
5 things associated with service package - ✔✔1. supporting
facilities
,2. facilitating goods
3. information
4. explicit services
5. implicit services
A in kendall notation - ✔✔arrival distribution (M= poisson, D=
deterministic, G= general)
aggressive (expansionist) strategy - ✔✔typically involves
expansion of facilities where capacity exceeds projected
demand in the short term
arrival rate - ✔✔the number of units arriving per period
assemble to order (ATO) - ✔✔begin processing prior to
receiving customer order, complete after receiving customer
order (customization from standardized inputs)
assembly line - ✔✔laborers generally perform the same
operations for each production run in a standard and
hopefully uninterrupted flow, when product demand is high
enough
, B in kendall notation - ✔✔service time distribution (M=
exponential, D= deterministic, G= general)
balking - ✔✔do not join the queue
best operating level - ✔✔(effective capacity) the most
economically sustainable output under normal conditions for
an extended time period
blocking - ✔✔when activities in a stage must stop because
there is no place to deposit the item
bottleneck - ✔✔stage that limits the capacity of the process
(like 3 lane roads converging into 2)
break even analysis - ✔✔a mathematical technique that
allows a comparison of total costs for different processes
(total revenue = total cost)
Correct Answers
3 service design methods - ✔✔1. the production line approach
2. the self-service approach
3. the personal attention approach
5 competitive dimensions - ✔✔1. cost
2. quality
3. time (delivery, speed)
4. flexibility (customization, variety)
5. others (returns, service and support, certifications,
environmental concerns)
5 distinct management processes - ✔✔1. planning
2. sourcing
3. making (transformation process)
4. delivering (logistics)
5. returning (bringing things back from customer)
5 things associated with service package - ✔✔1. supporting
facilities
,2. facilitating goods
3. information
4. explicit services
5. implicit services
A in kendall notation - ✔✔arrival distribution (M= poisson, D=
deterministic, G= general)
aggressive (expansionist) strategy - ✔✔typically involves
expansion of facilities where capacity exceeds projected
demand in the short term
arrival rate - ✔✔the number of units arriving per period
assemble to order (ATO) - ✔✔begin processing prior to
receiving customer order, complete after receiving customer
order (customization from standardized inputs)
assembly line - ✔✔laborers generally perform the same
operations for each production run in a standard and
hopefully uninterrupted flow, when product demand is high
enough
, B in kendall notation - ✔✔service time distribution (M=
exponential, D= deterministic, G= general)
balking - ✔✔do not join the queue
best operating level - ✔✔(effective capacity) the most
economically sustainable output under normal conditions for
an extended time period
blocking - ✔✔when activities in a stage must stop because
there is no place to deposit the item
bottleneck - ✔✔stage that limits the capacity of the process
(like 3 lane roads converging into 2)
break even analysis - ✔✔a mathematical technique that
allows a comparison of total costs for different processes
(total revenue = total cost)
