In This Question You Need to Match the Competitive Factor

question 45

Multiple Choice

In this question you need to match the competitive factor that customers value with the performance objective that the operation needs to excel at. If the customers value fast delivery then
The operation will need to excel at:

• A) Cost
• B) Dependability
• C) Flexibility (products/service)
• D) Speed
• E) Flexibility (mix)
• F) Flexibility (volume and/or delivery)
• G) Quality

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Definitions:

Operating Capacity

The maximum output that a company can produce under normal circumstances over a specific period.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future business decisions.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Incremental Revenues

Additional revenue generated from a specific action or decision, comparing the difference in total revenue with and without the action.