In Today's Highly Competitive Global Markets, Operations Managers

question 140

Multiple Choice

In today's highly competitive global markets, operations managers:

• A) realize that a product that offers better features attracts more customers than one that has a lower price.
• B) recognize that achieving efficiency is more important than achieving effectiveness.
• C) focus primarily on keeping costs low to make a profit while keeping prices competitive.
• D) focus solely on the benefits of products, while completely ignoring the costs of manufacturing those products.

Recognize the role of intuition and satisficing in decision-making under uncertainty.

Understand the importance of information gathering and alternative evaluation in effective decision-making.

Understand the basic principles and limitations of PID control systems.

Recognize the roles and types of set-point and open-loop controls in automation.

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Definitions:

Economic Conditions

The state of an economy at a given time, including variables such as inflation, unemployment rates, GDP growth, and consumer spending patterns.

Creative Destruction

A concept in economics introduced by Joseph Schumpeter, describing the process by which innovation renders existing products or services obsolete, leading to economic growth.

Pure Competition

Characterizes a market situation where many sellers offer identical products, leading to a scenario where no single buyer or seller can influence the market price.

Consumer Surpluses

The variation between what buyers are interested in paying for a merchandise or service and the real cost they incur.