What Is Operations Management

question 50

Multiple Choice

What is operations management?

• A) A field concerned with the use of technology in managing and processing information
• B) The function of selling a good or service and focuses on increasing customer sales, which increases company revenues
• C) The function that plans for, develops, implements, and maintains IT hardware, software, and the portfolio of applications that people use to support the goals of an organization
• D) The management of systems or processes that convert or transform resources into goods and services

Explain the role and techniques of inspection in quality control processes.

Recognize the importance of adopting industry standards (like ISO 9000) and total quality management programs for quality assurance.

Understand the implications of product tangibility on quality measurement.

Acknowledge the impact of resource limitations on choosing quality control methods.

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Definitions:

Supply Curve

A diagram indicating the correlation between the cost of a product and the volume of its supply.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to invest in one option over another.

Producer Surplus

The difference between the amount that producers are willing and able to sell a good for and the actual amount received due to a higher market price.

Producer Surplus

The divergence between the desired selling price of producers and the real price at which goods are sold.