Om4 Cahpter 1 Study Guide
Chapter 1—Goods, Services, and Operations Management
TRUE/FALSE
1. Operations management is focused primarily on the application of technology in manufacturing.
ANS: F PTS: 1
2. To apply the principles of operations management, managers need to understand people, processes, and technology.
ANS: T PTS: 1
3. Every job entails some aspect of operations management.
ANS: T PTS: 1
4. Employees who work in financial and accounting functions of organizations need little knowledge of operations management.
ANS: F PTS: 1
5. Ensuring that a credit card has accurate customer information and is delivered quickly to the customer is an example of inventory management in OM.
ANS: F PTS: 1
6. A product that typically lasts at least three years is called a durable good.
ANS: T PTS: 1
7. A toothbrush is an example of a nondurable good.
ANS: T PTS: 1
8. Both goods and services can be standardized for the mass market or customized to individual needs.
ANS: T PTS: 1
9. Customer participation in manufacturing processes and activities is generally high.
ANS: F PTS: 1
10. Customers and service providers often work together to co-produce a service.
ANS: T PTS: 1
11. Services always involve direct customer contact.
ANS: F PTS: 1
12. Moments of truth consist of one or more service encounters.
ANS: F PTS: 1
13. A service encounter is any interaction between a customer and the service provider.
ANS: T PTS: 1
14. The demand for services is usually easier to predict than the demand for goods.
ANS: F PTS: 1
15. Service facilities must be physically located close to the customer.
ANS: F PTS: 1
16. The greater the customer participation, the more uncertainty the firm has with respect to service time.
ANS: T PTS: 1
17. A customer benefit package (CBP) consists of both a primary good and a primary service.
ANS: F PTS: 1
18. The ability to download music onto a cell phone would
TRUE/FALSE
1. Operations management is focused primarily on the application of technology in manufacturing.
ANS: F PTS: 1
2. To apply the principles of operations management, managers need to understand people, processes, and technology.
ANS: T PTS: 1
3. Every job entails some aspect of operations management.
ANS: T PTS: 1
4. Employees who work in financial and accounting functions of organizations need little knowledge of operations management.
ANS: F PTS: 1
5. Ensuring that a credit card has accurate customer information and is delivered quickly to the customer is an example of inventory management in OM.
ANS: F PTS: 1
6. A product that typically lasts at least three years is called a durable good.
ANS: T PTS: 1
7. A toothbrush is an example of a nondurable good.
ANS: T PTS: 1
8. Both goods and services can be standardized for the mass market or customized to individual needs.
ANS: T PTS: 1
9. Customer participation in manufacturing processes and activities is generally high.
ANS: F PTS: 1
10. Customers and service providers often work together to co-produce a service.
ANS: T PTS: 1
11. Services always involve direct customer contact.
ANS: F PTS: 1
12. Moments of truth consist of one or more service encounters.
ANS: F PTS: 1
13. A service encounter is any interaction between a customer and the service provider.
ANS: T PTS: 1
14. The demand for services is usually easier to predict than the demand for goods.
ANS: F PTS: 1
15. Service facilities must be physically located close to the customer.
ANS: F PTS: 1
16. The greater the customer participation, the more uncertainty the firm has with respect to service time.
ANS: T PTS: 1
17. A customer benefit package (CBP) consists of both a primary good and a primary service.
ANS: F PTS: 1
18. The ability to download music onto a cell phone would