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In: Operations Management

QUESTION 45 Special issues in measuring service productivity are that the service is a. focused on...

QUESTION 45

Special issues in measuring service productivity are that the service is

a. focused on unique individual attributes or desires, and is therefore difficult to standardize.

b. often an intellectual task performed by professionals.

c. often difficult to automate or mechanize.

d. often difficult to evaluate for quality.

e. all of the above.

QUESTION 46

The Foreign Corrupt Practices Act (FCPA) is the law that

a. makes bribing foreign government officials illegal.

b. makes it illegal to “dump” products on foreign markets.

c. makes it illegal to hire undocumented foreign workers.

d. is all of the above

e. a and b only.

QUESTION 47

Costs of overstocking are

a. obsolescence and perishability.

b. opportunity losses.

c. ordering excess inventory.

d. all of these.

e. both a and c.

QUESTION 48

A gap in service quality can result from

a. differences between what customers want and what service providers think customers want.

b. differences between what service providers think customers want and the service they designed and delivered.

c. differences between the service that was designed and the actual service delivered.

d. differences between promised service and the service actually delivered.

e. all of the above.

QUESTION 49

The XYZ Box plant uses two 8-hour work shifts per day to manufacture packing boxes. In the past, 1000 packing boxes were produced by the end of each day. The use of new technology has enabled productivity to increase by 30%. Labor-time productivity is now

a. 62.5 boxes per hour.

b. 162.5 boxes per shift-hour.

c. 650.0 boxes per shift-hour.

d. 208.3 boxes per shift-hour.

e. 81.25 boxes per shift-hour.

Solutions

Expert Solution

Hello!

Answer 45: Option e: all of the above

All above stated options are the issues in measuring service productivity. Services are difficult to standardize so it's difficult to check the quality of services against a yardstick. Intellectual tasks can't be measured. Services are provided by professionals so you can't automate or mechanize it. Quality evaluation is difficult because of no standard.

Answer 46: Option a: makes bribing foreign government officials illegal.

The Foreign Corrupt Practices Act (FCPA) 1977, prohibites US organization to bribe foreign government officials to gain business benefit.

Answer 47: Option d: all of these

Cost of overstockings are: 1. Obsolecense and Perishability as the goods are lying unsold in warehouses where they becomes obsolete (technological goods) or becomes perished (food items). 2. Opportunity losses as you spend your money on buying raw materials for overstock goods, you could have used that money on some other opportunities to earn return on the money. 3. Ordering excess inventory as you ordered excess inventory it increases the cost of holding goods in warehouses.

Answer 48: Option e: all of the above

Gap in service quality can occur from all above mentioned options, such as difference between customer expectations and managers perception or difference between services designed and services delivered, etc.

Answer 49: Option b: 162.5 boxes per shift hour

In the last average production per shift hour was 1000/8 = 125 boxes

Now the productivity has increased by 30% so now total production in a day is 1000 + 30% of 1000 = 1300 boxes. So per labor hour productivity is 1300/8 = 162.5 boxes per hour.


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