Operations Management Quiz 1

What is a key aspect to cost leadership?

• Trading with the highest cost

• Minimizing the number of employees

• Operations managers finding ways to minimize costs while still making a profit

• Increasing product prices

What is Walmart's approach to cost leadership?

• Offering the highest quality products

• Engaging in aggressive marketing

• Having the lowest prices daily without discounting

• Providing the most expensive items

What is cross-docking?

• Storing inventory in a warehouse for a long period

• Moving inventory frequently to keep up with demand

• Transferring inventory directly for shipment to retail outlets without storing

• Docking costs by reducing the number of suppliers

Which of the following is a characteristic of goods but not services?

• Goods can be owned and transferred between people.

• Goods are intangible.

• Goods are always standardised.

• Goods have a simultaneous production and consumption time.

What does the term 'product differentiation' refer to?

• The process of making products more expensive than those of competitors.

• The strategy of reducing the quality of products to stand out in the market.

• The act of distinguishing goods or services in some way from those offered by competitors.

• The method of producing goods in high volume with no variety.

Which of the following is true about the customisation of goods and services?

• Goods tend to be customised, and services are not.

• Services are generally customised, and goods can sometimes be standardised.

• Both goods and services cannot be customised.

• Customisation is not possible for either goods or services.

Which of the following is NOT a method of differentiating goods?

• Varying the actual features of the good.

• Offering a no-questions-asked return policy.

• Varying product quality.

• Varying augmented features.

What is an example of varying actual features of a good to differentiate it?

• Sony producing a range of televisions with different screen sizes.

• Supermarkets offering private label brands.

• Online retailers offering free postage.

• MYOB being an industry leader in computer systems for business.

Which of the following is an example of a service that can be differentiated by offering more specialized service?

• A supermarket offering a low-cost alternative.

• A manufacturer allowing customers to buy a vehicle with the capacity to fit a spoiler.

• Medical specialists providing different levels of expertise.

• An electronic goods company offering products with varying screen sizes.

What is the goal of cost leadership in operations management?

• To have the highest costs in the market to reflect premium quality

• To focus solely on product quality regardless of cost

• To aim at having the lowest costs or to be the most price-competitive in the market while still making a profit

• To increase operational costs to invest in better marketing strategies