Service Operations Management Review
Questions
Course Introduction
Service Operations Management focuses on the efficient design, delivery, and improvement of services within various industries such as healthcare, hospitality, finance, and retail. This course examines the unique characteristics of service processes, explores strategies for managing capacity, demand, and quality, and emphasizes the critical role of customer experience. Students learn methods for service process analysis, performance measurement, and continuous improvement, including the application of technologies and frameworks like Lean and Six Sigma. Real-world case studies and practical tools prepare students to tackle challenges in service delivery, foster innovation, and enhance organizational competitiveness in the service sector.
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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Chapter 1: Introduction to Managing Operations Across the Supply Chain
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Sample Questions
Q1) An example of strategic planning is:
A)Deciding where to locate a new manufacturing plant.
B)Forecasting next week's demand of a given product item.
C)Targeting customer demand for aggregate product families.
D)Setting inventory levels for a given product.
Answer: A
Q2) Which functional activities are the most related to operations management attempts to manage the flow of materials and information in a firm?
A)Finance, accounting, and supply management
B)Logistics, finance and supply management
C)Logistics, supply, and customer management
D)Customer, finance, and logistics management
Answer: C
Q3) During the "mass production" era, operations management focused primarily on:
A)Production and design.
B)Internal production.
C)The global supply chain.
D)Sales, production and design.
Answer: B
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Chapter 2: Operations and Supply Chain Strategy
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Sample Questions
Q1) You are an upper-level manager in a firm. You believe that corporate objectives are not effectively disseminated throughout the organization and that line-level managers do not take them into account in their decision making. Which of the following would best help you to try to correct this problem?
A)Strategic profit model.
B)Balanced scorecard model.
C)Maslow's needs model.
D)SCOR model.
Answer: B
Q2) Which of the following is a measure common to both the strategic profit model and the SCOR model?
A)Responsiveness
B)Return on assets
C)Delivery performance
D)Lead time
Answer: B
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Chapter 3: Managing Processes and Capacity
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Sample Questions
Q1) Government regulations belong to which of the following elements of a process?
A)Activities
B)Inputs/outputs/feedback
C)Process structure
D)Management policies
Answer: B
Q2) You walk into a hair stylist shop. All stylists are busy and you sit in the waiting area. You are in which of the following process activities?
A)Operation
B)Delay
C)Storage
D)You are not in a process activity.
Answer: B
Q3) If a company can eliminate all sources of variance in a process:
A)It will be able to operate at maximum capacity at all times.
B)There will be no constraints in the process.
C)Continuous improvement will not be necessary.
D)None of these are true.
Answer: D
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Page 5
Chapter 3: Extension: Process Mapping and Analysis
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Sample Questions
Q1) An activity identified by a "?" is typically a(n):
A)Value-adding activity.
B)Necessary activity.
C)Unknown activity.
D)None of these.
Q2) Which of the following identifies the ultimate goal of process mapping?
A)Reduce steps in the process.
B)Reduce costs created by the process.
C)Make the desired outcome inevitable.
D)Facilitate the identification and reduction of system complexity.
Q3) You observe three different people doing the same task using three different approaches (with differing levels of quality, output, and lead time). Which of the following disposition options is most appropriate for this situation?
A)Keep
B)Rethink
C)Combine
D)Eliminate
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Chapter 4: Productprocess Innovation
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Sample Questions
Q1) XYZ Corporation is using customer interviews and surveys to gather perceptions regarding new product concepts. This approach is known as:
A)Quality function deployment.
B)Beta testing.
C)Voice of the customer.
D)Failure modes and effects analysis.
Q2) Companies usually first build product prototypes in which stage of product/process innovation?
A)Concept development
B)Detailed design and development
C)Market testing
D)Commercialization
Q3) Cross-functional integration is needed in innovation projects because:
A)Everyone deserves to have a voice in the design of a new product.
B)It is cheaper to solve problems uncovered early in development.
C)Process design decisions are dependent on product design decisions.
D)Both B and C are correct.
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Chapter 5: Manufacturing and Service Process Structures
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Sample Questions
Q1) Systems that combine automated machines, robots, and material handling systems and are controlled by a single computer are:
A)Transportation management systems (TMS).
B)Flexible manufacturing systems (FMS).
C)Manufacturing executive systems (EMS).
D)Warehouse management systems (WMS).
Q2) Which of the following products is most likely to use an assemble-to-order market orientation?
A)An upholstered sofa
B)A mobile phone
C)Shampoo
D)A race car
Q3) Zanadu Corp. has dedicated equipment and workers in a regularly occurring sequence of activities. Zanadu has which type of operations layout?
A)Fixed-position layout
B)Functional layout
C)Service factory layout
D)Product layout
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8
Chapter 6: Managing Quality
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Sample Questions
Q1) Stu Johnson, CEO of Johnson, Inc., attended a seminar on Total Quality Management. Which of the following is NOT something he is likely to have learned at that seminar?
A)Some aspects of quality are difficult to measure because they depend on customers' judgments.
B)Quality is primarily the responsibility of operations management.
C)Quality results from design as well as operations and delivery.
D)Cross-functional teams are important in TQM decision making.
E)He is likely to have learned all of these things.
Q2) "Zero defects" is a concept of quality management of which thought leader?
A)Deming
B)Juran
C)Crosby
D)Imai
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) The objective of statistical process control (SPC) is to:
A)Determine whether a batch of raw materials should be accepted or rejected.
B)Determine whether a batch of finished goods should be accepted or rejected.
C)Detect assignable cause variations versus normal random variations in the process.
D)Identify variable versus attribute measures.
Q2) The Taguchi methods link process design to:
A)Customer expectations.
B)Production availability.
C)Process capability.
D)All of these.
Q3) 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
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Chapter 7: Managing Inventories
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Sample Questions
Q1) At each of its home games, the Washington Check-Kiters football team sells programs that give statistics of the teams involved in the current game's contest. Since each game brings a different visiting team, a program is only of value for one contest, and no returns will be accepted by the supplier. On a per-program basis, the selling price is twice the cost. The target service level that will yield the most profits is:
A)33 percent
B)50 percent
C)67 percent
D)75 percent
Q2) Natalie's Cabinets makes cabinets at an average cost of $2,000. Last year, Natalie sold 5,000 units of the cabinets and had an annual turnover rate of 4 times. Natalie has estimated her inventory carrying cost to be 25 percent. What was Natalie's annual inventory carrying cost?
A)$625,000
B)$250,000
C)$312,500
D)$125,000
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Chapter 8: Lean Systems
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Sample Questions
Q1) In a lean system, waste is any action that
A)Costs money.
B)Could be done by an outside supplier.
C)Does not generate value.
D)Must be performed manually.
Q2) Applying lean systems to supply chain relationships has which of the following risks?
A)It encourages companies to buy at the lowest unit price.
B)It encourages firms in the supply chain to hold extra inventory to protect themselves from failure.
C)It makes the supply chain more vulnerable to performance breakdowns.
D)All of these.
Q3) Most of the tools and techniques used in lean systems seek to:
A)Reduce variability from the system.
B)Reduce the operator's discretion.
C)Improve product quality.
D)None of these.
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Page 12
Chapter 9: Customer Service Management
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Sample Questions
Q1) Jones Company promised a customer that the customer would receive at least 98 percent of all items ordered. In fact, the customer received 95 percent of the items. This is an example of which "gap" in the customer satisfaction model?
A)Performance gap
B)Knowledge gap
C)Standards gap
D)Communications gap
Q2) From an operations perspective, companies should strive to:
A)Provide customer success to all customers.
B)Realize different customer management approaches may be appropriate for different customers.
C)Realize that all customers desire close customer success types of relationships.
D)Never refuse to do business with a customer.
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Chapter 10: Sourcing and Supply Management
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Sample Questions
Q1) Negotiation is typically used when:
A)Price is the most important factor.
B)There are many equally qualified suppliers who are willing to compete.
C)Early supplier involvement is needed in new product development.
D)There are standard product specifications that are clear and complete.
Q2) Advanced Manufacturing Company is evaluating two suppliers for a component sourcing. After much internal discussion, AMC's management has determined that the critical factors in choosing suppliers are: quality, delivery, price, and service. Further, management has rated the importance of these factors as 0.4, 0.3, 0.2, and 0.1, respectively. On a scale of 1 to 5, Supplier A is rated at 5, 3, 3, and 3, respectively. Supplier B's ratings are 4, 4, 3, and 4. Which supplier has the better weighted score?
A)Supplier A
B)Supplier B
C)Neither, they both have the same weighted score.
Q3) A primary reason for using global suppliers is to:
A)Improve sustainability.
B)Reduce transportation costs.
C)Take advantage of free trade agreements such as NAFTA.
D)Work with the same suppliers in many different regions of the world.
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Page 14
Chapter 11: Logistics Management
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Sample Questions
Q1) In determining the number of facility locations, the lowest total cost is typically:
A)Not the lowest cost of either transportation or inventory.
B)Typically the lowest cost of either transportation or inventory.
C)Not related to transportation or inventory.
D)Difficult to generalize.
Q2) Zanda Corporation's CEO watched in amazement and frustration as workers handled and loaded individual products onto trucks. She felt handling the individual items was very cumbersome. She should investigate the possibility of:
A)Using RFID.
B)Containerization.
C)AS/RS.
D)None of these.
Q3) Suppose you are shipping 1,000 pounds of product to a customer location that is 500 miles away from you. The customer calls you and increases the order size to 10,000 pounds. Which of the following is NOT LIKELY to occur as a result of this change?
A)The cost per pound of transportation for the order will decrease.
B)The total cost of transportation for the order will increase.
C)Both of these are likely to occur.
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Chapter 12: Demand Planning: Forecasting and Demand Management
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Sample Questions
Q1) Convex Computer Company makes many different forecasts. Which of the following forecasts is probably the least accurate?
A)Total number of computers (laptops and desktops) to be sold next month.
B)Total number of laptops to be sold next month.
C)Total number of desktops to be sold next year.
D)Total number of laptops with 2 gigabyte RAM, 80 gigabyte hard drive, and 16x DVD drive to be sold next year.
Q2) The primary difference between demand management and demand forecasting is:
A)Forecasting is only possible when quantitative data are available.
B)Demand management is proactive, while forecasting attempts to predict.
C)A firm cannot execute both approaches simultaneously.
D)One approach deals with uncertainty, while the other deals with known demand.
Q3) Alpha Company sold 2,000 widgets yesterday. It had forecasted sales of 1,900 units. Using exponential smoothing with a smoothing constant of 0.6, what is the forecast for today's sales of widgets?
A)2,060
B)1,940
C)2,040
D)1,960
Page 16
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Chapter 13: Sales and Operations Planning
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Sample Questions
Q1) Each month the sales and operations team at Johnson Company meets to develop plans for each of the next six months. This process is known as:
A)Collaborative planning and forecasting.
B)Rolling planning horizons.
C)Unconstrained planning.
D)Continuous planning.
Q2) John Jones, senior VP for Zanda Corp., is looking at three alternative aggregate production plans for the next six-month period. At his company, demand varies by month with substantial month-to-month differences. The three alternatives are a "pure level plan," which keeps an absolutely constant workforce, a "pure chase plan" relying on hiring and layoffs, and a hybrid plan. He is most likely to find that the pure level plan:
A)Has lower inventory carrying cost than the hybrid plan.
B)Has higher hiring/layoff cost than the chase plan.
C)Has higher hiring/layoff cost than the hybrid plan.
D)None of these.
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Chapter 14: Materials and Resource Requirements Planning
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Sample Questions
Q1) 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
Q2) If the cumulative lead time is 8 weeks, to be feasible the MPS planning horizon must be:
A)Exactly 8 weeks.
B)At least 8 weeks.
C)Less than 8 weeks.
D)At least 16 weeks.
Q3) Benefits of ERP systems include all of the following EXCEPT:
A)Easy implementation.
B)Fewer data entry errors.
C)More informed business decisions.
D)Improved customer service.
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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) Task X is expected to take 3 days to complete. The maximum (latest) earliest finish date for any predecessors to task X is 10. Therefore, the earliest finish for task X is:
A)7
B)10
C)13
D)Cannot determine from the information given
Q3) Nearly all projects seem to go through the same phases and in the following sequence:
A)Planning, definition, execution, completion
B)Definition, planning, delivering, and closing
C)Definition, planning, execution, and completion
D)Selection, planning, delivering and completion
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Chapter 15: Extension: Advanced Methods for Project Scheduling
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Sample Questions
Q1) If a project path has an expected duration of 10 days and a standard deviation of 3 days, what is the probability that the path will be completed in 10 days or less?
A)0 percent
B)33 percent
C)50 percent
D)75 percent
Q2) In evaluating time-cost trade-offs, we start by crashing the task on the critical path that:
A)Has the lowest cost to reduce by one unit of time.
B)Has the lowest total crash cost.
C)Can be reduced the most.
D)Is the longest.
E)None of the these.
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) A specific analysis of the total greenhouse gases caused directly or indirectly by a product is called:
A)Carbon footprinting.
B)Life cycle analysis.
C)Life cycle waste assessment matrix.
D)Cap and trade.
Q2) As technology and cultures evolve, the best approach for operations managers is to:
A)Work harder.
B)Adapt their business models.
C)Retire.
D)Make their processes more efficient.
Q3) Which of the following is NOT a stakeholder, as considered from the P-People perspective of sustainability?
A)Customers
B)Government
C)Workers
D)Investors
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Page 21