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Chapter 2 Exercise Note Frame Pack
Chapter 2 Exercise Note Frame Pack
5. The product life cycle suggests that what will happen to the price of a product
as it ages?
6. At what phase of the product life cycle are the most organizations offering the
product to the customer?
9. At what stage of the product life cycle is price competition likely to be the
greatest?
11. If a customer considers a feature a necessity but is not impressed by it, is this
feature an order qualifier or an order winner?
12. In theory, if the total combined value of every output of a system could be
compared to the total combined value of every input to that same system, the
resulting ratio would be called what?
Chapter Two Providing Goods And Services, Quick Start Question #13
PDF A1Q020-01
Simpson and Hancocks Practical Operations Management
Five Customs and Immigration officers worked 7 hours each to check visas and
stamp the passports of 673 arriving visitors at an airport terminal. What is the
labor productivity of this group of five officers?
Chapter Two Providing Goods And Services, Quick Start Questions #14 to 16
PDF A1Q020-02
Simpson and Hancocks Practical Operations Management
Chapter Two Providing Goods And Services, Quick Start Question #17
PDF A1Q020-03
Simpson and Hancocks Practical Operations Management
One road-paving crew of six people worked 8 hours to pave 25 miles of two-
lane road, while a smaller crew of four people worked 12 hours to pave 15 miles
of four-lane road. Which crew was more productive, and by how much?
Two projects of equal value have been evaluated using a multifactor productivity
measure that combined labor-hours at $30 per hour and overhead expense
calculated as 20% of labor expense. The two projects were judged to have been
equally productive, although the first project used twice as many labor-hours. At
what rate was overhead expense being charged to the second project?
Links Lumber creates pressure-treated utility poles from pine logs bought from
several surrounding pine plantations. At the Links Lumber operation, a batch
of 100 pine logs yields 85 utility poles with 5 labor-hours required to process the
entire batch. Links Lumber is owned by Artemis Link, whose brother Devious
Link is planning to marry Betty Davis, owner of Northlands Pine Plantation.
Artemis expects that his future sister-in-law will sell him pine logs for the same
price he is paying to purchase them from other growers right now.
The difference in Northlands Pine Plantation logs, however, is that they are
considerably higher quality wood than the logs he purchases from his current
suppliers. If Betty agrees to sell him Northlands Pine Plantation pine logs, each
batch of 100 logs can be expected to yield 100 utility poles, although it will take
an additional 4 labor-hours per batch to process the higher quality wood.
a. What is the current labor productivity at Links Lumber?
b. What will happen to labor productivity at Links Lumber if indeed
Artemis Link is able to purchase Northlands Pine Plantation lumber
from Betty?
c. Suppose that Links Lumber currently buys batches of 100 pine logs for
$40, but Betty will want $60 for a batch of 100 Northlands Pine
Plantation logs. Assuming labor at $30 an hour, what are the
appropriate multifactor productivity measures for production from the
current logs and production from Northlands Pine Plantation logs?