1.

The Operations function in a business organization is responsible for all the activities
required to transform inputs into outputs. Explain what this means using words such as
input, output, transformation, value…

The operations of a business is responsible for transforming inputs into outputs that are worth
more than the initial inputs. The inputs for a product like cereal could be oats, corn, sugar, etc…
These inputs are then transformed by operations, some operations include assembly,
transportation, extraction, cultivation, and fabrication. This transformation is value added to the
product and should be worth more than the inputs in order to have profit.

2. How are Goods operations different from Service operations?

Goods operations create a tangible product while a service operation is intangible. Generally the
processes to create a good requires less customer contact when compared to a service
operation. Goods operations generally use more specialized equipment but less skilled labor.
While service operations generally use more skilled labor and less specialized equipment.

3. Draw a model of a supply chain system for a KTA store (Answers will vary but try to
identify who you think the suppliers would be. For instance, Suisan Fish Market would be
one of the suppliers). Inputs Transformation Outputs

4. A bank must decide which branch office to assign the account of a particularly
important and high maintenance client. Is this an example of a strategic, tactical, or
implementation level of decision? (See Noteshaper Quick Start Question 13)

Assigning an important client to a branch office is usually a strategic decision because this
decision has long term implications. strategic decisions are choices that affect the overall
direction of a company especially over the long-term.
5. A bank must decide if a particular branch office should be closed and its current
location sold to another bank. Is this an example of a strategic, tactical, or
implementation level of decision? (See Noteshaper Quick Start Question 14)

This is an example of a strategic decision since it is a major decision that will have long term
implications. This would be considered part of a plan for the overall direction of a business.

6. A bank has just received an electronic signal that one of its ATMs is out of service due
to a lack of cash to distribute. The bank must decide whether to send a courier to restock
the ATM immediately (after business hours) or to allow it to remain out of service until
the main banking operation opens the following business day. Is this an example of a
strategic, tactical, or implementation level of decision? (See Noteshaper Quick Start
Question 15)

This decision would be considered an implementation decision since this is more of a

day-to-day operational decision.

7. Identify a strategic, tactical, and implementation decision for the KTA store chain (not
only for one store, but the company).

A strategic decision for KTA would be to open a new store to capture a market share for a new
region. A Tactical decision for KTA would be for KTA to change some of the prices of their
products in order to attract more customers. An implementation decision would be for KTA to
decide to replace a faulty cash register.

8. Explain what a bill of materials is.

A bill of materials is a list/description of all materials, subparts and assemblies that are needed
in order to create a finished product. The bill of materials allows a business to see where they
get the materials to make a finished product.