MGT 3900 - Operation Management Test 1

MGT 3900 - Operation Management Test 1 A firm invents an app that allows customers to make purchases with their smartphone. It is hoping that the new mobile payment app allows the firm to ______________ the efficient frontier through ____________. a. shift, innovation on, innovation on, imitations , imitations Operations management is about: a. working harder. b. doing away with work. c. improving the way that we and/or others do their work. d. dealing with customer feedback. To which system inhibitor does the following customer complaint relate: "I wish they could add more cashiers in the busy hours"? a. Defect b. Inflexibility c. Variability d. Waste Utility is composed of the following components EXCEPT: a. customer loyalty. b. price. c. inconvenience. d. consumption utility. A firm investing in a manufacturing plant is an example of which type of costs it incurs as a manufacturer? a. Output b. Variable c. Resources d. Marketing A long waiting line at the checkout of a supermarket at some moments in the day is an example of ____ and a symptom of ____: a. defect, waste. b. inflexibility, profit. c. variability, inflexibility. d. waste, variability. Consumption utility is composed of price and convenience. True False Price utility includes all of the following EXCEPT: a. cost of owning the product. b. shipping cost. c. financing costs. d. transaction costs. Every work requires operations. True False A firm reduces inefficiencies by making trade-offs. True False It matters whether the process starts empty or not when computing the time it takes to produce a certain order quantity. True False Which of the following statements is TRUE? a. Utilization of a resource is at its maximum when the flow rate exceeds its capacity. b. Utilization of a resource is at its maximum when the flow rate is equal to its capacity. c. Utilization of a resource is at its minimum when the flow rate exceeds its capacity. d. Utilization of a resource is at its minimum when the flow rate is equal to its capacity. A possible drawback of having each employee specialize in one or several activities in serving customers at a coffee shop is: a. increased idle time. b. higher direct labor costs. c. increased equipment replication