BCOR 3050 Midterm Study Guide Exam With
Complete Solutions
Why should you study Operations Management? - ANSWER - It tells you how to manage
transformations from inputs to outputs
- It tells you how to make money
- It teaches you how to think logically
The role of operations is to use resources to transform inputs into outputs. From this
perspective, what is the output of an airline? - ANSWER Passengers at their destination
The role of operations is to use resources to transform inputs into outputs. From this
perspective, what is the main input for an airline? - ANSWER Passengers
The role of operations is to use resources to transform inputs into outputs. From this
perspective, what is a resource for an airline? - ANSWER Airplanes, crew, ticket agents,
etc.
Value Equation for the University of Utah Health System - ANSWER Value = (Quality +
Service)/Cost
What is the "waiting room" in a process flow diagram? - ANSWER Triangles
Create more value for the customers by: - ANSWER - Increasing quality (raise
customer's "reservation price")
- Reducing the price, p
- Increasing the quantity, q
- Consumer surplus = sum of the surpluses, or, (avg s) q
, Capture more value for the firm by: - ANSWER - Increasing the price, p
- Reducing the unit cost, c
- Increasing the quantity, q
- Producer surplus = profit = (p - c) q = p
What is the work-in-progress (WIP) in a process flow diagram? - ANSWER Rectangle or
circle
WIP (work-in-progress) is: - ANSWER The name for the inputs that are not yet outputs
What is the output for a law firm? - ANSWER A case that is resolved in some way (maybe
it was dropped, or settlement achieve, or a court decision rendered)
What is the input for a hospital? - ANSWER A sick or injured patient
What happens if cost is reduced? - ANSWER Quantity goes up, price goes down, value
accruing to customer goes up, value captured by the firm goes up.
What happens if operations is able to increase quality? - ANSWER The demand curve
shifts upward.
In which of these areas did the Healthcare industry outperform the Airline industry in the
first decade of this century? - ANSWER Stock market returns
What is double marginalization? - ANSWER Each of 2 firms in a supply chain adds a
margin to a product (hence, "double margins").
Double marginalization occurs when: - ANSWER - Full transparency (no hidden info;
each player has full info)
- Each player in the supply chain acts optimally (in its own best interests)
Complete Solutions
Why should you study Operations Management? - ANSWER - It tells you how to manage
transformations from inputs to outputs
- It tells you how to make money
- It teaches you how to think logically
The role of operations is to use resources to transform inputs into outputs. From this
perspective, what is the output of an airline? - ANSWER Passengers at their destination
The role of operations is to use resources to transform inputs into outputs. From this
perspective, what is the main input for an airline? - ANSWER Passengers
The role of operations is to use resources to transform inputs into outputs. From this
perspective, what is a resource for an airline? - ANSWER Airplanes, crew, ticket agents,
etc.
Value Equation for the University of Utah Health System - ANSWER Value = (Quality +
Service)/Cost
What is the "waiting room" in a process flow diagram? - ANSWER Triangles
Create more value for the customers by: - ANSWER - Increasing quality (raise
customer's "reservation price")
- Reducing the price, p
- Increasing the quantity, q
- Consumer surplus = sum of the surpluses, or, (avg s) q
, Capture more value for the firm by: - ANSWER - Increasing the price, p
- Reducing the unit cost, c
- Increasing the quantity, q
- Producer surplus = profit = (p - c) q = p
What is the work-in-progress (WIP) in a process flow diagram? - ANSWER Rectangle or
circle
WIP (work-in-progress) is: - ANSWER The name for the inputs that are not yet outputs
What is the output for a law firm? - ANSWER A case that is resolved in some way (maybe
it was dropped, or settlement achieve, or a court decision rendered)
What is the input for a hospital? - ANSWER A sick or injured patient
What happens if cost is reduced? - ANSWER Quantity goes up, price goes down, value
accruing to customer goes up, value captured by the firm goes up.
What happens if operations is able to increase quality? - ANSWER The demand curve
shifts upward.
In which of these areas did the Healthcare industry outperform the Airline industry in the
first decade of this century? - ANSWER Stock market returns
What is double marginalization? - ANSWER Each of 2 firms in a supply chain adds a
margin to a product (hence, "double margins").
Double marginalization occurs when: - ANSWER - Full transparency (no hidden info;
each player has full info)
- Each player in the supply chain acts optimally (in its own best interests)
