Introduction to Operations Management

1)     "Who are the customers?" is a key question in operations management.

• True

• False

1)     A firm must make trade-offs because no single company can excel at everything.

• True

• False

1)     Reducing inefficiencies will increase a firm’s profitability.

• True

• False

Firm A Pareto dominates firm B" means that firm A’s product or service is inferior to that of firm B on all dimensions of the customer utility function.

• True

• False

1)     Consumption utility is composed of price and convenience.

• True

• False

1)     The many flavors of ice-cream offered by ice-cream parlors are reflective of the _________ of today’s customers.

• A)    bargaining power

• B)     homogeneous preferences

• C)     heterogeneous preferences

• D)    knowledge base

1)     Which dimension of the customer utility function is emphasized with a restaurant’s slogan, "Eat Fresh"?

• Timing

• Location

• Performance

• Fit

1)     Jerry is very frugal and always purchases the least expensive items whenever he goes to the store. Which dimension of the customer utility function seems to be most important to Jerry?

• Performance

• Timing

• Price

• Location

Which of the following is a valid conclusion?

• A

• B

• C

• D

Which of these hotels is NOT on the efficient frontier?

• A

• B

• C

• D