Service Operations Management
Exam Answer Key
Course Introduction
Service Operations Management focuses on the design, implementation, and improvement of processes that deliver services to customers efficiently and effectively. This course explores service operations concepts such as service quality, capacity planning, demand management, service facility layout, and technology integration. Emphasizing unique challenges of managing intangible products and high customer involvement, students learn to analyze and optimize service delivery systems across industries like healthcare, hospitality, transportation, and retail. The course combines quantitative tools with case studies and real-world examples, equipping students with strategies to enhance customer satisfaction, productivity, and competitive advantage in service organizations.
Recommended Textbook
Managing Operations Across the Supply Chain 2nd Edition by Morgan Swink
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19 Chapters
527 Verified Questions
527 Flashcards
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Page 2
Chapter 1: Introduction to Managing Operations Across the Supply Chain
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Sample Questions
Q1) Joe Jones was asked to undertake a project to determine the resources and capacity his firm would need in the next three to 10 years. These types of decisions are considered to be:
A)Infrastructural aspects of operations management.
B)Positional aspects of operations management.
C)Assessment aspects of operations management.
D)Structural aspects of operations management.
Answer: D
Q2) Which of the following statements is NOT true regarding supply chain management?
A)Globalization has slowed the growth of supply chain management.
B)Supply chain management is a way of viewing operations management.
C)Supply chain management has grown as a result of a focus on core competencies.
D)Supply chain management is about making the most of relationships with suppliers.
Answer: A
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3
Chapter 2: Operations and Supply Chain Strategy
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Sample Questions
Q1) Corporate strategic planning involves decisions related to:
A)What businesses should we be in?
B)What specific product- and market-based initiatives and goals should we establish?
C)What measures should we use to control strategic initiatives?
D)All of these.
Answer: A
Q2) Functional strategic planning involves decisions related to:
A)What businesses should we be in?
B)Specific product- and market-based initiatives and goals.
C)What metrics should be used to ensure progress in operations management?
D)All of these.
Answer: C
Q3) Which of the following is the most appropriate definition of a core capability?
A)A set of products unique to a firm.
B)Technical capabilities of a firm.
C)Reputation.
D)Production/design processes unique to the firm.
Answer: D
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4
Chapter 3: Managing Processes and Capacity
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Sample Questions
Q1) Process thinking causes managers to address critical process elements, including:
A)Activities.
B)Inputs and outputs.
C)Flows, structure, resources, and metrics.
D)All of these.
Answer: D
Q2) Most processes involve two basic types of flows:
A)Information flows and physical flows.
B)Product flows and decision flows.
C)Information flows and operator flows.
D)Physical flows and documentation flows.
Answer: A
Q3) Kaizen Events are most appropriate for which type of operations problem?
A)Customer-based
B)Metrics-based
C)Process-based
D)Product-based
Answer: C
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5
Chapter 3: Extension: Process Mapping and Analysis
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Sample Questions
Q1) Which of the following mapping techniques identifies and integrates functional responsibilities into the process mapping process?
A)Process flow diagram
B)Value stream mapping
C)Service blueprinting
D)Swim lanes
Q2) An activity identified by a "?" is typically a(n):
A)Value-adding activity.
B)Necessary activity.
C)Unknown activity.
D)None of these.
Q3) Joe's Quick Oil Change shop is interested in improving its ability to satisfy customers. The most appropriate mapping tool for a company such as this is called:
A)Service architecture.
B)Service blueprinting.
C)Service diagramming.
D)Service mapping.
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Chapter 4: Productprocess Innovation
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Sample Questions
Q1) Overall, it is clear that well-managed innovation projects:
A)Apply only to manufacturing firms.
B)Increasingly involve input from multiple functions in a company.
C)Should always be executed sequentially.
D)All of these.
Q2) An FMEA estimates the risk priority number (RPN) for a given failure mode to be 36. The occurrence rating is 3 and the severity rating is 3. Thus, the undetectability rating is:
A)3
B)4
C)5
D)6
Q3) _______________ transform product specifications and new process technology into a new or revised production system.
A)New process design and development projects
B)New product design and development projects
C)Concurrent engineering projects
D)Operations management projects
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Chapter 5: Manufacturing and Service Process Structures
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Sample Questions
Q1) Which of the following process structures can produce the widest variety of products?
A)Job shop
B)Repetitive process
C)Continuous flow
D)Batch operation
Q2) Companies with a make-to-stock orientation are most likely to use which of the following process structures?
A)Mass customization
B)Job shop
C)Repetitive process
D)They are likely to use any one of these process structures.
Q3) An automated process can be compared to a more labor-intensive process using:
A)A service blueprint.
B)Line balancing.
C)Indifference analysis.
D)Mass customization.
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Chapter 6: Managing Quality
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Sample Questions
Q1) XYZ distribution center receives 1,000 deliveries each day. Arrivals are on time if they are within plus or minus 10 minutes of the targeted arrival. In order to have only 3.4 late or early arrivals per million deliveries, what would the standard deviation of arrival times need to be?
A)3.33 minutes
B)0.83 minutes
C)1.67 minutes
D)6.67 minutes
Q2) If a tangible good or service performs the promised function dependably, we say that it has high:
A)Conformance.
B)Durability.
C)Reliability.
D)Perceived quality.
Q3) All of the following represent external failure cost EXCEPT the cost of:
A)Scrapping defective raw material.
B)Repairing items covered by warranty.
C)Replacing defective items found by customers.
D)Loss of goodwill and reputation.
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Chapter 6: Extension: Quality Improvement Tools
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Sample Questions
Q1) Forty samples of 100 are taken, with the total number of defective units being 150. What is the lower control limit for the three sigma (z = 3) p-chart?"
A)0.000
B)0.0190
C)0.0375
D)0.0570
Q2) A packaging plant is running a filling process where packages are filled with 24 oz. +/- 0.08 oz. A capability study reveals that the process mean is 24 oz. with a standard deviation of 0.02 oz. What is the capability of the packaging line?
A)0.67
B)1.33
C)0.50
D)1.50
Q3) The Taguchi methods link process design to:
A)Customer expectations.
B)Production availability.
C)Process capability.
D)All of these.
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Chapter 7: Managing Inventories
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Sample Questions
Q1) Taxes and insurance costs are an example of which of the following costs?
A)Ordering cost.
B)Governmental costs.
C)Carrying (or holding) costs.
D)None of these.
Q2) Johnson Company had beginning inventory of $1,000,000 and ending inventory of $1,200,000. Johnson has determined inventory carrying cost to be 25 percent. Johnson's inventory carrying cost was:
A)$250,000.
B)$275,000.
C)$300,000.
D)None of these.
Q3) Alpha Company places 10 orders per year with its supplier. Each order is for an amount exactly equal to the EOQ. Alpha has determined its annual inventory carrying cost is $2,000. Alpha carries no safety stock at all. What is Alpha's order cost per order?
A)Cannot be determined without further information
B)$2,000
C)$200
D)$1500
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Chapter 8: Lean Systems
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Sample
Questions
Q1) In our accounting department one of the actions taken by a clerk has been to identify the most frequently used forms and to put them in an area where they can be easily accessed. The other less frequently used forms have been tagged and put in their own separate area. This action likely occurred from the use of which lean tool?
A)A 5-S program
B)Kanban scheduling
C)Jidoka
D)Poka-yoke
Q2) When lean systems are implemented:
A)Variable costs tend to increase, while fixed costs tend to decrease.
B)Fixed costs tend to increase, while variable costs tend to decrease.
C)Fixed and variable costs both tend to decrease.
D)Contribution margin tends to decrease.
Q3) In the lean systems approach, as a system improves, it should have ____________ inventory on hand.
A)More
B)The same amount of C)Less
D)Twice the amount of
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Page 12
Chapter 9: Customer Service Management
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Sample Questions
Q1) A firm has found that it provides a 90 percent order fill rate (orders shipped complete), 90 percent on-time delivery, 90 percent of its orders arrive at customers' destination in perfect condition, and 90 percent of the time all documentation is correct. These are all of the elements of a perfect order for this company's customers. What is the best estimate of its perfect order performance?
A)90 percent
B)60 percent
C)0 percent
D)66 percent
Q2) Johnson Company has the following data about customer orders for the month of June: Orders Received: 5,000 orders
Total Units Ordered: 40,000 units
Total Units Delivered: 37,800
Total Orders Delivered Complete: 4,600
What was Johnson's unit fill rate?
A)92 percent
B)94.5 percent
C)12.5 percent
D)None of these
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13
Chapter 10: Sourcing and Supply Management
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Sample Questions
Q1) Zanda Corp. is considering trying to develop a full partnership with a particular supplier. This suggests that the item Zanda buys from the supplier is:
A)A noncritical part.
B)A "bottleneck" item.
C)A strategically important part.
D)An item appropriate for a "leverage" strategy.
Q2) A global food products company makes soups that are specifically tailored to the tastes of consumers in individual countries. What sourcing strategy is the company likely to use for its fresh ingredients such as vegetables?
A)Local, close to its production plant when possible.
B)National, using suppliers within each country.
C)Global, using the same suppliers across the world.
D)Low-cost country sourcing.
Q3) Preparing an RFQ or RFP is an important step in:
A)Negotiation.
B)Online reverse auctions.
C)Supplier scorecards.
D)Competitive bidding.
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Chapter 11: Logistics Management
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Sample Questions
Q1) Generally, the most expensive transportation mode (from among the following choices) is
A)Air.
B)Water.
C)Truck.
D)Rail.
Q2) With respect to the following operating service characteristics of the modes of transportation, which combination is INCORRECTLY specified?
A)Speed: air is best; pipeline is worst.
B)Availability: truck is best; pipeline is worst.
C)Capability: pipeline is best; water is worst.
D)Dependability: pipeline is best; air is worst.
Q3) Jones Company learned that several other shippers in its hometown had customers located in the same markets that it serves. With this information, Jones should investigate the possibility of:
A)Market area consolidation.
B)Scheduled delivery consolidation.
C)Pooled delivery consolidation.
D)All of these.
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Page 15
Chapter 12: Demand Planning: Forecasting and Demand Management
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Sample Questions
Q1) How does product design affect forecasting accuracy?
A)Postponable product designs remove the need to forecast demand for final product configurations.
B)A popular product design improves the demand volume and forecast.
C)Forecast accuracy is not related to product design.
D)None of the above statements are true.
Q2) For Platinum Nugget Hotel in Las Vegas, Saturday is the best day of the week for business. The gambling take for the hotel on Saturdays over the past four weeks was: Week $Take
1) $250,000
2) $190,000
3) $300,000
4) $280,000
Using a moving average with n = 3 terms, what would be the forecast for week 5?
A)$256,667
B)$246,667
C)$255,000
D)$232,124
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Chapter 13: Sales and Operations Planning
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Sample Questions
Q1) Zanda Corp. and Jones Corp. are identical in every way (products produced, costs, demand, etc.) except for one. Zanda uses a level production plan while Jones prefers a chase production plan. Which of the following is most likely to be true?
A)Jones will have higher investment in plant and equipment.
B)Jones will have higher hiring and firing costs.
C)Jones will have lower inventory carrying costs.
D)All of the options are true.
Q2) If a company strongly prefers that its aggregate output plan be closer to a level plan than a chase plan, this implies that it is concerned about minimizing:
A) Inventory carrying costs.
B) Hiring and layoff costs.
C) Cost of subcontracting.
D) Both A and C.
E) Both B and C.
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17
Chapter 14: Materials and Resource Requirements Planning
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Sample Questions
Q1) Materials requirement planning (MRP) systems are used primarily to:
A)Plan materials.
B)Plan lead time.
C)Plan production.
D)Plan distribution.
E)A and C
Q2) End item A is made by assembling 2 of part B and 3 of part C. Part C is made from 2 of component D and 2 of component E. Component D is considered to be a:
A) Level 0.
B) Level 1 input.
C) Level 2 input.
D) Level 3 input.
Q3) Which of the following is NOT included in the information about the inventory records file for an item?
A)Safety stock
B)Preferred order quantity
C)Net requirements
D)Lead time
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18
Chapter 15: Project Management
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Sample Questions
Q1) Zanda Corp. has decided that it needs a project team to implement a new ERP system. It wants the system implemented as soon as possible. Given this criterion, Zanda should choose a:
A)Matrix organizational structure.
B)Pure project structure.
C)Functional project structure.
D)Line and staff organization structure.
Q2) Project manager Bill Jones has determined that task R has a high variation between "best case" and "worst case" estimated durations. Task R is probably a good candidate for:
A)Close monitoring and frequent status reporting.
B)Buffering.
C)Contingency planning.
D)All of these.
Q3) The project organizational structure that provides the greatest balance between speed and efficiency is:
A)Matrix organizational structure.
B)Pure project structure.
C)Functional project structure.
D)Line and staff organization structure.
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Chapter 15: Extension: Advanced Methods for Project
Scheduling
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Sample Questions
Q1) The customer has offered a $10,000 bonus if the project is completed within 14 days. What is the probability that the bonus will be earned?
A)Approximately 85 percent
B)Approximately 5 percent
C)Approximately 2.3 percent
D)Approximately 97.7 percent
Q2) Task X has a best-case duration of 4 days, a worst-case duration of 10 days, and a most likely duration of 6 days. Using this information, we can estimate a 50 percent probability that the task will be completed in no more than how many days?
A)6.0 days
B)3.3 days
C)10.0 days
D)6.3 days
Q3) Which of the following statements is true regarding crash costs?
A)Crash costs tend to increase with each additional day of crashing.
B)Crash costs tend to decrease with each additional day of crashing.
C)It is usually cheaper to crash tasks that are not on the critical path.
D)Additional crash costs are rarely justified in practice.
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Chapter 16: Sustainable Operations Managementpreparing
for the Future
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Sample Questions
Q1) Downcycling, as described in the chapter, is a critical consideration during which stage of the product life cycle?
A)Extraction
B)Packaging/transportation
C)Usage
D)Disposal
Q2) Which of the following sustainability issues has a significant impact on supply chain relationships?
A)Culture
B)Common usage of lean systems
C)Location
D)Governmental regulations and tariffs
Q3) Which of the following programs/initiatives strives to improve the lives of suppliers and their families?
A)ISO 14000
B)Responsible Care
C)LEED
D)FairTrade
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