3. A pair of running shoes is an example of a durable good.

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Indicate whether the statement is true or false.

• Preproduction services of a value chain include warranty and claim services.
• True
• False

• If the value ratio for a good or service is high, the good or service is perceived favorably by customers.
• True
• False

• A pair of running shoes is an example of a durable good.
• True
• False

• The intangible nature of a service makes it difficult to keep a competitor from copying a service encounter design.
• True
• False

• Vehicles, furniture, and dishwashers are examples of nondurable goods.
• True
• False

• The higher the customer participation in service processes, the more certainty a firm has with respect to service time

and capacity.

• True
• False

• A process invariably resides within a department or traditional management function.
• True
• False

• Proportional increases or decreases in the perceived benefits and the price of a product result in no net change in the

value of the product.

• True
• False

• Big data analytics is intended to support service businesses such as virtual banking.
• True
• False

Indicate the answer choice that best completes the statement or answers the question.

• A gracious welcome by an employee at the hotel check-in counter is an example of:
• social sustainability.
• predictive analytics.
• a service blueprint.

(Operations and Supply Chain Management, 2e David A. Collier, James Evans) (Test Bank Latest Edition 2023-24, Grade A+, 100% Verified) 1 / 4

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• a moment of truth.

• A _____ is a sequence of activities that is intended to create a certain result, such as a physical good, a service, or

information.

• process
• matrix
• variant
• task

• In the context of customer benefit packages, _____ services are those that are not essential to the primary service, but

enhance it.

• core
• tertiary
• peripheral
• central

• Which of the following statements is true of goods-producing processes?
• They use employees as a substitute for physical inventory.
• They require extensive customer participation in service creation and delivery.
• They require more flexibility and adaptation to special circumstances than service processes.
• They are mechanistic and controllable because of the lack of customer participation.

• Building a high-performing organization with a capable leadership and workforce is an example of _____

sustainability.

• economic
• technological
• political
• environmental

• Which of the following statements is true of service employees?
• They require good human interaction skills and strong cross-selling skills.
• They perform mechanized and rigid processes.
• They have little or no interaction with customers.
• They rely more on hard technology than soft technology to perform work.

• Identify a difference between goods and services.
• Goods can be stored as physical inventory, whereas services cannot be stored as physical inventory.
• Goods-producing firms rely solely on soft technology, whereas service-providing firms rely solely on hard

technology.

• The demand for goods cannot be predicted, whereas the demand for services can be easily predicted.
• Customers directly participate in goods-producing activities, whereas customers do not participate in service-

providing activities.

• A _____ good is one that does not quickly wear out and typically lasts at least three years
• durable 2 / 4

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• soft
• consumer packaged
• fast-moving consumer

• _____ refers to raw materials, work-in-process, or finished goods that are maintained to support production or satisfy

customer demand.

• Throughput
• A variant
• A subsidy
• Inventory

• _____ is an example of a nondurable good.
• An airplane
• Software
• Furniture
• A dishwasher

20. Predictive analytics is used by organizations to:

• analyze business policies through visual representations.
• identify the best decisions for a particular situation.
• understand past and current performance.
• envisage the future by detecting patterns and relationships in data.

• _____ sustainability is an organization's commitment to maintain healthy communities and improve the quality of life.
• Environmental
• Economic
• Social
• Political

• A _____ good is one that is no longer useful once it's used, or lasts for less than three years.
• heavy-duty
• nondurable
• hard
• slow-moving consumer

• Which of the following statements is true of goods?
• Goods-producing industries rely on machines and hard technology to perform work.
• Goods-producing employees require stronger behavioral skills than physical skills.
• The demand for goods is more difficult to predict than the demand for services.
• Durable goods are those that are no longer useful once they are used.

• Which of the following statements is true of operations management (OM)?
• The application of the concepts and methods of OM is limited to the technology industry.
• OM is the only function by which managers can directly affect the value provided to all stakeholders. 3 / 4

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• The activities involved in OM focus on creating value solely for external customers.
• OM and its principles are exclusively applicable to firms that produce tangible products.

• Ensuring consumer safety in using goods and services is an example of _____ sustainability.
• social
• economic
• political
• environmental

• _____ is a key activity performed by operations managers that involves deciding the best way to assign people to work

tasks and responsibilities.

• Forecasting
• Process design
• Job design
• Reengineering

• Which of the following statements is true of service facilities?
• They need to be in close proximity to customers.
• They store their services as physical inventory.
• They require employees with stronger technical skills than behavioral skills.
• They rely more on hard technology than soft technology to perform work.

• Purchasing is a key activity performed by operations managers that involves:
• determining when resources such as employees and equipment should be assigned to work.
• using technology to improve productivity and respond faster to customers.
• coordinating the acquisition of materials, supplies, and services.
• ensuring that goods, services, and processes will meet customer expectations and requirements.

• Which of the following statements is true of a value chain?
• The pre- and postservice framework of a value chain emphasizes that service is a critical component of

traditional manufacturing processes.

• The input-output framework of a value chain suggests that the value chain begins with inputs from customers.
• A value chain solely focuses on the operations function of an organization.
• A value chain is narrower in scope than a supply chain.

• Service encounter design is a key activity performed by operations managers that involves:
• managing the flow of materials, information, people, and money from suppliers to customers.
• ensuring that the right amount of resources is available when needed.
• predicting the future demand for raw materials, finished goods, and services.
• determining how to recover from service upsets.

• A _____ is a network of facilities and processes that describes the flow of materials, finished goods, services,

information, and financial transactions from suppliers, through the facilities and processes that create goods and services, and those that deliver them to the customer.

• product-process matrix
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