MGSC 395 EXAM 1 QUESTIONS AND
ANSWERS. VERIFIED 2025/2026.
What is Operations Management? - ANS The systematic design, direction, and control of
processes that transform inputs into services and products for internal and external customers.
What is the primary goal of Operations Management? - ANS To create value by efficiently
managing processes and supply chains.
What are the two main components of Operations Management? - ANS Operations and
Supply Chains.
How do Operations and Supply Chains fit into a business? - ANS They integrate different
functional areas to synchronize processes with suppliers and customers.
What is a Supply Chain? - ANS An interrelated series of processes within and across firms that
produces a service or product to satisfy customers.
What is a Process in Operations Management? - ANS Any activity or group of activities that
takes one or more inputs, transforms them, and provides one or more outputs for customers.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What distinguishes Service Processes from Manufacturing Processes? - ANS Service
processes typically involve intangible, perishable outputs with high customer contact, while
manufacturing processes involve physical, durable outputs that can be inventoried.
What are the key characteristics of Service Processes? - ANS Intangible outputs, cannot be
inventoried, high customer contact, short response time, labor-intensive, and quality is not
easily measured.
What are the key characteristics of Manufacturing Processes? - ANS Physical outputs, can be
inventoried, low customer contact, long response time, capital-intensive, and quality is easily
measured.
What is the Supplier Relationship Process in the Supply Chain? - ANS A process that selects
suppliers of services, materials, and information, facilitating their timely and efficient flow into
the firm.
What is the New Service/Product Development process in the Supply Chain? - ANS A process
that designs and develops new services or products based on external customer specifications
or market needs.
What does the Order Fulfillment Process entail? - ANS Activities required to produce and
deliver the service or product to the external customer, influencing all aspects of the business.
What is the Customer Relationship Process? - ANS A process that identifies, attracts, and
builds relationships with external customers, facilitating order placement.
What are Support Processes in Operations Management? - ANS Processes like Accounting,
Finance, Human Resources, and Marketing that provide vital resources and inputs to core
processes.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, What is Operations Strategy? - ANS The means by which operations implements the firm's
corporate strategy to build a customer-driven firm.
What are Competitive Priorities? - ANS Critical dimensions that a process or supply chain
must possess to satisfy internal or external customers.
What are Competitive Capabilities? - ANS The cost, quality, time, and flexibility dimensions
that a process or supply chain can actually deliver.
What are Order Qualifiers? - ANS Minimum levels required from a set of criteria for a firm to
do business in a particular market segment.
Why is it important to study Operations Management? - ANS To understand how to
effectively manage processes and supply chains to create value and meet customer demands.
What is the relationship between internal and external customers in Operations Management? -
ANS Every process and person in an organization has customers, which can be either internal
(within the organization) or external (outside the organization).
What is the significance of understanding how a product is made in Operations Management? -
ANS It helps in managing processes effectively and ensuring quality and efficiency in
production.
What are Order Winners? - ANS Criteria customers use to differentiate the services or
products of one firm from those of another.
Give an example of an Order Qualifier for used cars. - ANS Mileage (e.g., < 50,000, <75,000,
<100,000).
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
ANSWERS. VERIFIED 2025/2026.
What is Operations Management? - ANS The systematic design, direction, and control of
processes that transform inputs into services and products for internal and external customers.
What is the primary goal of Operations Management? - ANS To create value by efficiently
managing processes and supply chains.
What are the two main components of Operations Management? - ANS Operations and
Supply Chains.
How do Operations and Supply Chains fit into a business? - ANS They integrate different
functional areas to synchronize processes with suppliers and customers.
What is a Supply Chain? - ANS An interrelated series of processes within and across firms that
produces a service or product to satisfy customers.
What is a Process in Operations Management? - ANS Any activity or group of activities that
takes one or more inputs, transforms them, and provides one or more outputs for customers.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What distinguishes Service Processes from Manufacturing Processes? - ANS Service
processes typically involve intangible, perishable outputs with high customer contact, while
manufacturing processes involve physical, durable outputs that can be inventoried.
What are the key characteristics of Service Processes? - ANS Intangible outputs, cannot be
inventoried, high customer contact, short response time, labor-intensive, and quality is not
easily measured.
What are the key characteristics of Manufacturing Processes? - ANS Physical outputs, can be
inventoried, low customer contact, long response time, capital-intensive, and quality is easily
measured.
What is the Supplier Relationship Process in the Supply Chain? - ANS A process that selects
suppliers of services, materials, and information, facilitating their timely and efficient flow into
the firm.
What is the New Service/Product Development process in the Supply Chain? - ANS A process
that designs and develops new services or products based on external customer specifications
or market needs.
What does the Order Fulfillment Process entail? - ANS Activities required to produce and
deliver the service or product to the external customer, influencing all aspects of the business.
What is the Customer Relationship Process? - ANS A process that identifies, attracts, and
builds relationships with external customers, facilitating order placement.
What are Support Processes in Operations Management? - ANS Processes like Accounting,
Finance, Human Resources, and Marketing that provide vital resources and inputs to core
processes.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, What is Operations Strategy? - ANS The means by which operations implements the firm's
corporate strategy to build a customer-driven firm.
What are Competitive Priorities? - ANS Critical dimensions that a process or supply chain
must possess to satisfy internal or external customers.
What are Competitive Capabilities? - ANS The cost, quality, time, and flexibility dimensions
that a process or supply chain can actually deliver.
What are Order Qualifiers? - ANS Minimum levels required from a set of criteria for a firm to
do business in a particular market segment.
Why is it important to study Operations Management? - ANS To understand how to
effectively manage processes and supply chains to create value and meet customer demands.
What is the relationship between internal and external customers in Operations Management? -
ANS Every process and person in an organization has customers, which can be either internal
(within the organization) or external (outside the organization).
What is the significance of understanding how a product is made in Operations Management? -
ANS It helps in managing processes effectively and ensuring quality and efficiency in
production.
What are Order Winners? - ANS Criteria customers use to differentiate the services or
products of one firm from those of another.
Give an example of an Order Qualifier for used cars. - ANS Mileage (e.g., < 50,000, <75,000,
<100,000).
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
