Management and Operations Test Questions & Answers Ch.14

Technology Ventures (Byers), 5e

Chapter 14 Management and Operations

1) Which of the following is not necessary to understand the customer?

A) Purchase criteria

B) Decision-making processes

C) Buyer behavior

D) EBITDA

2) Why has Zara retained its manufacturing capability?

A) Respond quickly to new fashion demands

B) Lower cost in-house

C) Regulatory hurdles

D) Tax exemptions

3) How does Apple get discounts from suppliers?

A) Significant volume

B) Corporate kickbacks

C) Custom parts

D) Supplier fatigue

4) Wal-Mart has a profit margin of less than 1 percent.

5) Goods and services flow down the value chain, information flows in both ways.

6) Tesla factories taking in raw materials and producing a car with value is an example of a:

A) Operation

B) Process

C) Operations management

D) Process management

7) What is ergonomics?

A) Macro-trends necessary to start a business

B) Customer development

C) Process of making physical tasks easier

D) Clean user interface

8) Why are economies of scale most important for companies?

A) Increase efficiency of marketing

B) Assist with overseas hiring

C) Develop company's international presence

D) Lower unit cost, thereby lowering price

9) Which of the following is a measure of operational success?

A) Performance

B) Off-time speed

C) Worker unions

D) Reactivity

10) Six-sigma quality equals ________ flaws per million.

A) 340

B) 34

C) 3.4

D) 0.34

11) Most customers view consumption as a single purchase event.

12) Why do lean systems use a just-in-time approach?

A) Increase customer satisfaction

B) Activate manufacturing

C) Reduce unnecessary inventory

D) Add value-add activities

13) How does Google keep its systems up for 99.99 percent of the time?

A) Pull and insert method for servers

B) Relational database management

C) Log analytics of servers

D) Backups of servers in an offsite facility in Nevada

14) In the formula for throughput efficiency, VA stands for:

A) Visual aid

B) Valuation aim

C) Vector analysis

D) Value-adding time

15) In which situations is it better to use a value web rather than a value chain?

A) To diagram a more open movement of ideas

B) If participants have a huge set of core competencies

C) When there is a digital infrastructure constrained to one firm

D) In cases when the extended enterprise can no longer support a value chain

16) IKEA has over 1,000 suppliers in over 50 countries.

17) Which of the following is not an important function of online technologies?

A) Personalization

B) Customization

C) Versioning

D) Hybridization

18) What was the most important advantage Amazon had over brick and mortar retail stores?

A) Significant expertise with direct-to-customer shipping

B) Corporate partnerships

C) New distribution channels

D) More methodical review systems

19) A balanced scorecard has both financial and operational metrics.

20) What important innovation did Gary Rodgers contribute to General Electric?

A) Gantt chart

B) Digital dashboard

C) Project timelines

D) Agile development