Service Operations Management
Solved Exam Questions
Course Introduction
Service Operations Management explores the strategies, tools, and techniques involved in designing, delivering, and improving service processes within various industries. The course examines topics such as service quality management, capacity planning, demand forecasting, service facility layout, queue management, and the role of technology in enhancing service delivery. Emphasis is placed on understanding the unique challenges faced by service organizations, evaluating service performance, and implementing best practices to achieve operational efficiency and customer satisfaction. Through case studies and real-world applications, students develop analytical and problem-solving skills pertinent to managing service operations effectively.
Recommended Textbook
Managing Supply Chain and Operations An Integrative Approach 1st Edition by S.
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Page 2
Thomas Foster
Chapter 1: Introduction to Supply Chain and Operations Management
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Sample Questions
Q1) Geographically moving the production of a component or product closer to where it was originally produced is known as ________.
Answer: nearsourcing
Q2) ________ is the act of executing and controlling the productive functions of a firm.
Answer: Process management
Q3) Which component of the integrative SC&O management model involves the transformation of materials to finished goods?
A)Operating core
B)Upstream collaboration
C)Downstream collaboration
D)None of the above
Answer: A
Q4) In a supply chain for paper products,farmers that harvest fiber and wood chips are known as downstream members of the supply chain.
A)True
B)False
Answer: False
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Chapter 2: Supply Chain and Operations Strategy
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Sample Questions
Q1) The network of people,knowledge,information systems,tools,and business processes that create value for customers is ________.
Answer: capabilities
Q2) The relationship between Apple and its contract manufacturer Foxconn can be described as a
A)transactional relationship.
B)complementary relationship.
C)synergistic relationship.
D)none of the above.
Answer: B
Q3) An arm's length relationship with supply chain partners that is managed by scripted interactions is known as a ________.
Answer: transactional relationship
Q4) In Fisher's strategy model,innovative products are matched with efficient supply chains.
A)True
B)False
Answer: False
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Chapter 3: Product and Process Design and Mapping
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Sample Questions
Q1) The last phase of the product life cycle is A)introduction.
B)development. C)decline.
D)growth.
Answer: C
Q2) The benefits of flexible manufacturing systems (FMS)include
A)reduced labor costs.
B)higher flexibility as compared to an assembly line.
C)quick changeover from part to part.
D)all of the above.
Answer: D
Q3) If a line is balanced with 80-percent efficiency,the "balance delay" would be A)20 percent.
B)80 percent.
C)100 percent.
D)depends on the next operation.
Answer: A
Q4) In a process map,the diamond symbol indicates that ________.
Answer: a decision is to be made
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Chapter 4: Service Design
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Sample Questions
Q1) A tool that managers can use when designing service delivery systems is a A)value stream map.
B)swim lane map.
C)process chain network diagram.
D)Pareto scatter diagram.
Q2) What is the concept of simultaneity with reference of service system operations? What is the implication of simultaneity for service system operations? What challenges does it pose and how can managers deal with the challenge(s)?
Q3) What are important elements to consider when designing a system for service quality?
Q4) In a service operation,processes that are buffered from the customer are typically performed A)online.
B)in the back office.
C)in the front office.
D)in the region of direct interaction.
Q5) ________ is the term used to describe customer participation in the service delivery process.
Q6) ________ is the degree of customer involvement in the delivery of a service.
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Chapter 5: Customer Relationship Management
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Sample Questions
Q1) Discuss what servitization means and the advantages and challenges that accompany it.
Q2) For management information system technicians,the computer users within their company are known as ________.
Q3) A grocery chain using a shoppers card to keep track of customer purchases and preferences is an example of
A)Complete Resource Management Systems.
B)Collaborative Resource Management Systems.
C)Customer Relationship Management System.
D)Collaborative Relationship Management Systems.
Q4) Scores of 0 through 6 on a simple feedback system used to measure the net promoter score (NPS)represent customers who are A)detractors.
B)neutral.
C)promoters.
D)none of the above.
Q5) The process in which standardized components and modules are produced and then assembled based on the customer preferences only when customers need them is called ________.
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Chapter 6: Strategic Sourcing
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Sample Questions
Q1) A purchased good that can have a big effect on profitability but only has a few qualified suppliers is a
A)routine item.
B)leverage item.
C)bottleneck item.
D)critical item.
Q2) The extent to which an item is difficult to source due to a lack of qualified sources or lack of substitutes among others is known as ________.
Q3) A purchased item (though it may have many suppliers)that still has the potential to affect profit because it is associated with high levels of expenditure is a
A)routine item.
B)leverage item.
C)bottleneck item.
D)critical item.
Q4) For a manufacturer of canned fruit,the procurement of items like oranges and peaches will fall in the leverage quadrant.
A)True
B)False
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Chapter 7: Supplier Management
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Sample Questions
Q1) The first step in the process of designing and implementing a supplier scorecard is to develop the performance measures.
A)True
B)False
Q2) A transactional relationship with the supplier is usually recommended for the procurement of a critical item.
A)True
B)False
Q3) Discuss the role/ purpose of a request for quote (RFQ)or a request for proposal (RFP)in the procurement process.
Q4) When precision in the final product is not important,the supply manager is most likely to use simple specifications in the procurement of the product.
A)True
B)False
Q5) The type of relationship in which the buyer and supplier work together sharing information,knowledge and expertise integrating their business processes is known as a ________ relationship.
Q6) The final step in the supplier development process is to ________.
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Chapter 8: Demand Management and Forecasting
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Sample Questions
Q1) Long-term,repetitive patterns in a time series that are often macroeconomic in nature are known as ________.
Q2) Demand that is calculated from a parent item is called ________.
Q3) The measure of forecasting error used in computing variance is known as ________.
Q4) As per the bullwhip effect,which member of the supply chain will see the largest variation in demand along the supply chain?
A)Consumer
B)Retailer
C)Wholesaler
D)Manufacturer
Q5) In the context of demand management,the loss and replacement of customers is known as ________.
Q6) Using different marketing channels to complement each order in order to level demand is known as ________.
Q7) Introducing new products in a sequence that allows for an effective use of capacity is known as ________.
Q8) The measure of forecasting error that tells the average error in a forecast is known as ________.
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Chapter 9: Inventory Management Fundamentals and Independent Demand
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Q1) Compute the reorder point when daily demand is 25 units,orders are placed every 15 days,the lead time is 10 days,the desired service level is 98% (which corresponds to 2.06 standard deviations from the mean),50 units are on hand and the standard deviation of daily demand during the uncertainty period is 10 units.
A)525 units
B)678 units
C)362 units
D)475 units
Q2) In the EOQ inventory model,ordering cost is always equal to carrying cost at the EOQ. A)True
B)False
Q3) Extra stock held in anticipation of variable demand is known as ________.
Q4) Pareto's law suggests that
A)80% of customers account for 20% of revenue.
B)80% of customers account for 80% of revenue.
C)20% of customers account for 80% of revenue.
D)20% of revenue comes from 80% of customers.
Q5) A store of goods and stocks for some future use is known as ________.
Q6) Demand that is calculated from a parent item is called ________.
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Chapter 10: Sales and Operations Planning and Enterprise
Resource Planning
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Sample Questions
Q1) The process of calculating requirements for components and subassemblies from the demand for finished products is called ________.
Q2) The capacity strategy where capacity is added in anticipation of demand is called A)leading capacity.
B)lagging capacity.
C)matching capacity.
D)mass capacity.
Q3) The capacity for a machine or system that is available after accounting for scrap and rework and also factors in inefficiencies inherent in the system is known as A)design capacity.
B)available capacity.
C)actual capacity.
D)rough capacity.
Q4) Orders that are held in abeyance until more stock arrives are known as ________.
Q5) The ratio of actual output to design capacity is called ________.
Q6) A planning system that focuses on bottlenecks to ensure that the MPS does not overload production processes or facilities is known as ________.
Page 12
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Chapter 11: Logistics
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Sample Questions
Q1) Places where large shipments of the same items are broken out and separated to go to separate locations are known as
A)consolidation warehousing.
B)cross docking.
C)break bulk facilities.
D)hub and spoke system.
Q2) Functions such as purchasing and production that are not traditional logistics functions are known as ________.
Q3) The mode of transportation which is the most versatile in terms of shipping products door to door is ________.
Q4) Logistics provides ________ and ________ utility.
Q5) The transportation and storage of goods and materials is called ________.
Q6) Trading speed of delivery with saving fuel is known as a cost-to-service trade-off.
A)True
B)False
Q7) The extent to which a firm is spread out across the globe is known as ________.
Q8) A company which provides all or part of the logistics function for another company is known as ________.
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Chapter 12: Project Management
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Sample Questions
Q1) As per the Project risk/return matrix,projects that are low hanging fruit have a
A)low risk factor and low return factor.
B)high risk factor and low return factor.
C)low risk factor and high return factor.
D)high risk factor and high return factor.
Q2) The shortest time for completing a project task is known as ________.
Q3) The path in a PERT network diagram with no slack is known as ________.
Q4) As per Hersey and Blanchard's Situation Leadership Model,which role of a manager can be described as Low Task Behavior and Low Relationship Behavior?
A)Delegating
B)Participating
C)Selling
D)Telling
Q5) As per Hersey and Blanchard's Situation Leadership Model,the manager's role of telling is categorized as
A)Low Task Behavior and Low Relationship Behavior.
B)Low Task Behavior and High Relationship Behavior.
C)High Task Behavior and High Relationship Behavior.
D)High Task Behavior and Low Relationship Behavior.
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Chapter 13: Supply Chain Quality Management
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Sample Questions
Q1) A set of companion surveys used to perform gap analysis in service firms,which is based on the notion that customers are more satisfied when their perceptions of a service are more closely aligned with the service design of the service provider is known as ________.
Q2) The propensity for a product to function over its useful life is known as the "durability" dimension of quality.
A)True
B)False
Q3) The quality expert who is credited with coining the phrase company-wide quality control is
A)W) Edwards Deming.
B)Joseph Juran.
C)Philip Crosby.
D)Kaoru Ishikawa.
Q4) In the ________ phase of the PDCA cycle,managers perform trial experiments to test their improvements.
Q5) The degree to which a product tolerates stress or trauma without failing is known as the ________ dimension of quality.
Q6) Comparing business results and accounting information is known as ________.
Page 15
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Chapter 14: Statistical Process Control
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Sample Questions
Q1) What is the value of the average range R-bar?
A)3.68
B)8.398
C)3.125
D)5.252
Q2) Every 10th product coming off a production line is inspected to check for quality.Such a sampling technique is called A)systematic sampling.
B)random sampling.
C)nonrandom sampling.
D)biased sampling.
Q3) Variation that centers on a mean and occurs with a somewhat consistent amount of dispersion is known as ________ variation.
Q4) The control chart used to count the number nonconforming in a consistent sample space is called the ________ chart.
Q5) On a control chart,one data point out above the control limit is considered normal behavior.
A)True
B)False
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Chapter 15: Lean and Six Sigma Management and Leading Change
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Q1) A lean method that gives employees the authority to stop the production line when a problem has occurred that triggers a machine stop is known as ________.
Q2) The Japanese term for continuous improvement is ________.
Q3) Which type of kanban card is used when a defective part is received?
A)Withdrawal
B)Production
C)Supplier
D)Emergency
Q4) A lean method that gives employees the authority to stop the production line when a problem has occurred that triggers a machine stop is known as
A)jidoka.
B)andon.
C)kaizen.
D)kanban.
Q5) The term rapid kaizen means ________.
Q6) What is the Five S's approach? List and discuss the five S's.
Q7) What is andon?
Q8) What is a heijunka?
Q9) Fast improvement focussing on a finite problem is known as ________. Page 17
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