OMIS 338 - Chapter 7 Exam Questions with Correct Answers Latest Update 2025/2026
Which of the following statements about custom goods and services is true?
a. They have a fixed, standard design that cannot be altered to suit the requirements of different
customers.
b. They are configurations of standard parts, subassemblies, or services that can be selected by
customers from a limited set.
c. They are made in anticipation of customer demand and stocked in inventory.
d. They often have long customer wait times because they are designed to meet specific
customers' specifications. - Answers d. They often have long customer wait times because they
are designed to meet specific customers' specifications.
Which of the following statements about standard goods is true?
a. They are made in anticipation of customer demand and are stocked in inventory.
b. Customer options such as color and size are almost always accommodated.
c. They are produced on demand and often take a long time to be designed, created, and
delivered.
d. They are designed in small quantities to meet specific customers' specifications. - Answers a.
They are made in anticipation of customer demand and are stocked in inventory.
Which of the following types of processes used to produce goods and services are large-scale,
customized initiatives that consist of many smaller tasks and activities that must be
coordinated and completed to finish on time and within budget?
a. Projects
b. Job shop processes
c. Flow shop processes
d. Continuous flow processes - Answers a. Projects
In the context of the processes used to produce goods and services, which of the following is a
characteristic of projects?
a. They are organized around a fixed sequence of activities and process steps.
b. They create one-of-a-kind products with wide variation in specifications.
c. They create large volumes of highly standardized goods or services.
, d. They require little or no setup or changeover time. - Answers b. They create one-of-a-kind
products with wide variation in specifications.
In the context of the processes used to produce goods and services, which of the following is a
characteristic of flow shop processes?
a. They require little or no setup or changeover time.
b. They use a different sequence of processing steps for different orders.
c. They are large-scale customized initiatives with wide variations in tasks.
d. They produce low volumes of custom goods and services. - Answers a. They require little or
no setup or changeover time.
Which of the following is NOT one of the phases of the traditional product life cycle (PLC)?
a. Growth
b. Maturity
c. Introduction
d. Maintenance - Answers d. Maintenance
As one moves down the diagonal in the product-process matrix, the emphasis on both product
and process structure shifts from
a. high flexibility to more standardization.
b. more standardization to more customization.
c. high volume to lower volumes.
d. low flexibility to high flexibility. - Answers a. high flexibility to more standardization.
A company that selectively and consciously positions a business off the diagonal line of the
product-process matrix in order to differentiate itself from its competitors is using what kind of
strategy?
a. Customization
b. Positioning
c. Corporate
d. Competitive - Answers b. Positioning
In a service-delivery system, a pathway is a
Which of the following statements about custom goods and services is true?
a. They have a fixed, standard design that cannot be altered to suit the requirements of different
customers.
b. They are configurations of standard parts, subassemblies, or services that can be selected by
customers from a limited set.
c. They are made in anticipation of customer demand and stocked in inventory.
d. They often have long customer wait times because they are designed to meet specific
customers' specifications. - Answers d. They often have long customer wait times because they
are designed to meet specific customers' specifications.
Which of the following statements about standard goods is true?
a. They are made in anticipation of customer demand and are stocked in inventory.
b. Customer options such as color and size are almost always accommodated.
c. They are produced on demand and often take a long time to be designed, created, and
delivered.
d. They are designed in small quantities to meet specific customers' specifications. - Answers a.
They are made in anticipation of customer demand and are stocked in inventory.
Which of the following types of processes used to produce goods and services are large-scale,
customized initiatives that consist of many smaller tasks and activities that must be
coordinated and completed to finish on time and within budget?
a. Projects
b. Job shop processes
c. Flow shop processes
d. Continuous flow processes - Answers a. Projects
In the context of the processes used to produce goods and services, which of the following is a
characteristic of projects?
a. They are organized around a fixed sequence of activities and process steps.
b. They create one-of-a-kind products with wide variation in specifications.
c. They create large volumes of highly standardized goods or services.
, d. They require little or no setup or changeover time. - Answers b. They create one-of-a-kind
products with wide variation in specifications.
In the context of the processes used to produce goods and services, which of the following is a
characteristic of flow shop processes?
a. They require little or no setup or changeover time.
b. They use a different sequence of processing steps for different orders.
c. They are large-scale customized initiatives with wide variations in tasks.
d. They produce low volumes of custom goods and services. - Answers a. They require little or
no setup or changeover time.
Which of the following is NOT one of the phases of the traditional product life cycle (PLC)?
a. Growth
b. Maturity
c. Introduction
d. Maintenance - Answers d. Maintenance
As one moves down the diagonal in the product-process matrix, the emphasis on both product
and process structure shifts from
a. high flexibility to more standardization.
b. more standardization to more customization.
c. high volume to lower volumes.
d. low flexibility to high flexibility. - Answers a. high flexibility to more standardization.
A company that selectively and consciously positions a business off the diagonal line of the
product-process matrix in order to differentiate itself from its competitors is using what kind of
strategy?
a. Customization
b. Positioning
c. Corporate
d. Competitive - Answers b. Positioning
In a service-delivery system, a pathway is a
