Question

QUESTION 25

Which of the following statements is true about the concept and discipline of operations management?

  

Operations management is building strategic, long-term relationships with suppliers and customers.

  

Finished products of the business can be identified as important inputs into an operations management system.

  

Operations management is more of a multi-firm (i.e. multi-business) concept than a single-firm concept.

  

Operations management concerns the design, direction, control and improvement of processes that transform inputs into finished products and services.

QUESTION 26

Based on the goods-services continuum, the following statements are true about goods (products) and services, EXCEPT:

  

Goods (products) and services have the same level of perishability

  

Services are intangible, and goods (products) are tangible

  

While pure goods (products) can be easily replicated, pure services offer the greatest level of differentiation

  

The importance of customer interaction increases when going from pure goods (products) to pure services

QUESTION 27

The _________ shows process types based on the relationship between product volume, process flexibility and product variety.

  

Product-process matrix

  

Service-system matrix

  

Plant-within-a-Plant (PWP)

  

Operations Frontier

Answer 1

25.

D

As a part of it, operation management is involved in location decisions, production scheduling, implementation of quality management practices and supply management among the other important functions.

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26.

A

Goods have the longer shelf life than the services. Hence, it is not true that both the goods and services have the same level of perishability. For example, a packet of cookies not sold today, can be sold tomorrow. But, a doctor's services not offered today, is now lost and cannot be availed tomorrow in the name of a past date.

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27.

A

It is the product-process matrix that tells the type of process to be suitable on the basis of products, its variety and volume to be produced.