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CSUF MGMT 339 Midterm 2 Exam Questions Answered Correct.

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Wait-and-see strategy - Answer Cons: Must have credibility and must signal its plan before competition can Capacity gap - Answer Positive or negative difference between projected demand and current capacity Economies of Scale - Answer A concept that states that the average unit cost of a service or good can be reduced by increasing its output rate Diseconomies of Scale - Answer Occurs when the average cost per unit increases as the facility's size increases Contributing Factors to Diseconomies of Scale - Answer Increasing the output rate results in increasing average unit costs, Complexity, Loss of focus, Inefficiencies Tools for capacity planning - Answer Waiting-line models, Simulation, Decision Trees Waiting-line models - Answer An abstract representation of the queue that enables us to predict waiting times and other performance measures Waiting-line models - Answer Useful in high customer-contact processes Simulation - Answer Useful when models are too complex for waiting-line analysis Decision trees - Answer A decision support tool that uses a tree-like graph or model of decisions and their possible consequences, including chance event outcomes, resource costs, and utility Decision trees - Answer Useful when demand is uncertain and sequential decisions are involved Krajewski Chapter 3 Quality Part 1 - Answer Quality - Answer The degree to which PERFORMANCE of a product or service meets or exceeds customer EXPECTATIONS

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CSUF MGMT 339 Midterm 2 Exam
Questions Answered Correct.
Wait-and-see strategy - Answer Cons: Must have credibility and must signal its plan before
competition can



Capacity gap - Answer Positive or negative difference between projected demand and current
capacity



Economies of Scale - Answer A concept that states that the average unit cost of a service or
good can be reduced by increasing its output rate



Diseconomies of Scale - Answer Occurs when the average cost per unit increases as the
facility's size increases



Contributing Factors to Diseconomies of Scale - Answer Increasing the output rate results in
increasing average unit costs, Complexity, Loss of focus, Inefficiencies



Tools for capacity planning - Answer Waiting-line models, Simulation, Decision Trees



Waiting-line models - Answer An abstract representation of the queue that enables us to
predict waiting times and other performance measures



Waiting-line models - Answer Useful in high customer-contact processes



Simulation - Answer Useful when models are too complex for waiting-line analysis



Decision trees - Answer A decision support tool that uses a tree-like graph or model of
decisions and their possible consequences, including chance event outcomes, resource costs,
and utility



Decision trees - Answer Useful when demand is uncertain and sequential decisions are
involved

, A term used by customer to describe their general satisfaction with a service or product



Defect - Answer Any instance when a process fails to satisfy its customer



customer satisfaction center of quality - Answer conformance to specifications



fitness for use



value



support



psychological impression



Conformance to Specifications - - Answer Meeting certain advertised or implied performance
standards. E.g., size, weight, battery life, consistent quality, on-time delivery etc.



• Fitness for Use - - Answer How well the service or product serves its intended purpose. E.g.,
functionality, features, performance, durability, convenience etc.



• Value - Answer - How well the service or product serves its intended purpose at a price
costumers are willing to pay.



• Support - - Answer How efficiently and effetely the company offers help when problem
occurs or to maintain the product or service. E.g. A/S services, warranty, customer service etc.



• Psychological Impressions - Answer - Appearance of the product or service offering. E.g.
Atmosphere, image, aesthetics etc.



Quality awards and certifications - Answer




Benefits of Good Quality - Answer Word of Mouth, Loyalty, Better Brand, Customers Like
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