Production and Operations Management Questions and Answers | Production and Operations Management Multiple Choice Questions and Answers

Questions
1 The 20-80 rule states __________________
A The top 80 percent of customers generate 20 percent of the company's profits
B The bottom 80 percent of customers generate 80 percent of the company's profits while the bottom 20 percent of customers generate 20 percent of the profits
C The top 20 percent of customers generate 80 percent of the company's profits
D The bottom 20 percent of customers generate 80 percent of the company's profits

Answer:The top 20 percent of customers generate 80 percent of the company's profits
2 One problem that can deter a firm from effectively using CRM is __________________
A Having the resources to manage and train employees effectively
B Not all customers want a relationship with the company
C The expense of building and maintaining a customer database
D All of the above

Answer:All of the above
3 Which of the following is true about ISO 14000 certification?
A It is a prerequisite for ISO 9000 certification
B It indicates a higher level of adherence to standards than ISO 9000
C It is only sought by companies exporting their goods
D It deals with environmental management

Answer:It deals with environmental management
4 __________________ is when a company works continuously with its large customers to help improve their'performance.
A Basic marketing
B Reactive marketing
C Proactive marketing
D Partnership marketing

Answer:Partnership marketing
5 __________________ is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives.
A Customer cost
B Value delivery system
C Value proposition
D Customer perceived value

Answer:Customer perceived value
6 Total Quality Management emphasizes
A The responsibility of the Quality Control staff to identify and solve all quality-related problems
B A commitment to quality that goes beyond internal company issues to suppliers and customers
C A system where strong managers are the only decision makers
D A process where mostly statisticians get involved

Answer:A commitment to quality that goes beyond internal company issues to suppliers and customers
7 Frequency programs (FP's) are designed to provide rewards to __________________
A Customers who need to be encouraged to buy more frequently
B Customers who buy frequently and in substantial amounts
C Customers who buy frequently but in small amounts
D Customers who buy infrequently in large amounts

Answer:Customers who buy frequently and in substantial amounts
8 All of the following costs are likely to decrease as a result of better quality except
A Customer dissatisfaction costs
B Inspection costs
C Warranty and service costs
D Maintenance costs

Answer:Maintenance costs
9 __________________ is a company's ability to perform in one or more ways that competitors cannot or will not match.
A Customer advantage
B Customer relationship advantage
C Customer lifetime value
D Competitive advantage

Answer:Competitive advantage
10 "Quality is defined by the customer" is
A An unrealistic definition of quality
B A user-based definition of quality
C A manufacturing-based definition of quality
D A product-based definition of quality

Answer:A user-based definition of quality
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