Chapter 1- Introduction to Operations and Supply Chain Management

Question 1

Operations and supply chain management (OSCM)

Answer 1

Design, operation, and improvement of the systems that create and deliver the firm’s primary products and services.

Question 2

Servitization

Answer 2

Building service activities to support a firm’s product offerings.

Question 3

Efficiency

Answer 3

Doing something at the lowest possible cost.

Question 4

Effectiveness

Answer 4

Doing the right things to create the most value for the company.

Question 5

Value

Answer 5

Ratio of quality to price paid. Competitive “happiness” is being able to increase quality and reduce price while maintaining or improving profit margins. (This is a way that operations can directly increase customer retention and gain market share.)

Question 6

Mass customization

Answer 6

Producing products to order in lot sizes of one.

Question 7

Sustainability

Answer 7

The ability to maintain balance in a system.

Question 8

Triple bottom line

Answer 8

Relates to the economic, employee, and environmental impact of the firm’s strategy.