Managing Operations Supply Verified Test Bank Chapter 1

Chapter 01 Test Bank

Multiple Choice Questions

1. Which of the following is NOT one of the processes included in operations management?

A. Design

B. Finance

C. Produce

D. Deliver

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 01-01 Explain what operations management is and why it is important.
Topic: A Broad Definition of Supply Chain Operations Management

2. A supply chain is a global network of organizations and activities involved in:

A. Producing, buying, servicing, and disposing of goods and services.

B. Designing, transforming, consuming, and disposing of goods and services.

C. Financing, producing, and marketing of goods and services.

D. Designing, financing, selling, and disposing of goods and services.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 01-01 Explain what operations management is and why it is important.
Topic: A Broad Definition of Supply Chain Operations Management

3. Operations managers answer questions of what, how, when, where, and who by defining both the ___________ and _____________ aspects of the operations management system.

A. Financing and capacity

B. Marketing and delivery

C. Structural and infrastructural

D. Production and accounting

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-02 Describe the major decisions that operations managers typically make.
Topic: A Broad Definition of Supply Chain Operations Management

4. Structural operations management decisions include:

A. Workforce, capacity, and facilities.

B. Workforce, production planning, and materials controls.

C. Capacity, facilities, and technology.

D. Materials controls, supply chain, and value definition.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-02 Describe the major decisions that operations managers typically make.
Topic: A Broad Definition of Supply Chain Operations Management

5. Joe Jones was asked to undertake a project to determine the resources and capacity his firm would need in the next three to 10 years. These types of decisions are considered to be:

A. Infrastructural aspects of operations management.

B. Positional aspects of operations management.

C. Assessment aspects of operations management.

D. Structural aspects of operations management.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-02 Describe the major decisions that operations managers typically make.
Topic: A Broad Definition of Supply Chain Operations Management

6. Physical goods can be differentiated from services in the operations management process by:

A. Longer lead times and they can be inventoried.

B. More capital-intensive and shorter lead times.

C. More labor-intensive and longer lead times.

D. More expensive and easier to control.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 01-02 Describe the major decisions that operations managers typically make.
Topic: A Broad Definition of Supply Chain Operations Management

7. Which of the following functions would NOT have to think about "processes"?

A. Logistics management

B. Production management

C. Supply management

D. Accounting

E. All of these have to think about "processes."

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 01-03 Explain the role of processes and “process thinking” in operations management.
Topic: A Broad Definition of Supply Chain Operations Management

8. Which of the following statements about operations management processes is NOT true?

A. Inputs to operations management processes can be materials, people, and/or information.

B. Outputs of operations management processes are always tangible goods.

C. Operations management processes involve transformation of inputs into valuable outputs.

D. Design of operations processes should reflect what customers want.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-03 Explain the role of processes and “process thinking” in operations management.
Topic: A Broad Definition of Supply Chain Operations Management

9. Growth of the supply chain management perspective in operations management results from the advent of:

A. Technology and infrastructure advances.

B. Collaborative networks.

C. A focus on core capabilities.

D. All of these.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 01-04 Explain what the supply chain is and what it means to view operations management using a "supply chain perspective."
Topic: Operations Management Yesterday and Today

10. During the "mass production" era, operations management focused primarily on:

A. Production and design.

B. Internal production.

C. The global supply chain.

D. Sales, production, and design.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-04 Explain what the supply chain is and what it means to view operations management using a "supply chain perspective."
Topic: Operations Management Yesterday and Today

11. While there is overlap between operations management and supply chain management, the two are different in that:

A. Operations management focuses on production, supply chain management focuses on supply and logistics.

B. Operations management focuses on tangible goods, supply chain management focuses on services.

C. Operations management focuses on processes, supply chain management focuses on relationships and flows.

D. All of these.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 01-04 Explain what the supply chain is and what it means to view operations management using a "supply chain perspective."
Topic: Viewing Operations Management from a Supply Chain Management Perspective

12. Johnson Company makes widgets, which it then sends to Smith Company. Smith Company puts the widgets in packages. Smith Company is considered by Johnson to be a:

A. Key customer.

B. Upstream product supplier.

C. Aftermarket supplier.

D. Downstream product supplier.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-05 Identify the partners and functional groups that work together in operations management.
Topic: Viewing Operations Management from a Supply Chain Perspective

13. To an operations manager, the "key customer" is:

A. The person who buys a product.

B. The person who has the greatest impact on design, sales, and growth opportunities for the product.

C. The Echelon 1 customer.

D. The person who uses the product.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 01-05 Identify the partners and functional groups that work together in operations management.
Topic: Viewing Operations Management from a Supply Chain Management Perspective

14. Which functional activities are the most closely related to operations managers’ attempts to manage the flow of materials and information in a firm?

A. Finance, accounting, and supply management

B. Logistics, finance, and supply management

C. Logistics, supply, and customer management

D. Customer, finance, and logistics management

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 01-06 Define the planning activities associated with managing operations across the supply chain.
Topic: Viewing Operations Management from a Supply Chain Management Perspective

15. Jones Manufacturing sells a part to Lear Corporation. Lear puts this part into a radio, which Lear then sells to Ford. From Ford's point of view, Jones Manufacturing is a(n) __________ supplier.

A. Echelon 1

B. Echelon 2

C. Tier 1

D. Tier 2

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-05 Identify the partners and functional groups that work together in operations management.
Topic: Viewing Operations Management from a Supply Chain Management Perspective

16. Operations management is:

A. The management of production.

B. The management of services.

C. The management of processes.

D. The management of physicians.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 01-01 Explain what operations management is and why it is important.
Topic: A Broad Definition of Supply Chain Operations Management

17. Which of the following statements is a reason why operations management is important?

A. Efficient and productive operations drive the economic well-being of nations.

B. Operations management is responsible for much of the value created by organizations.

C. Operations management is a key source of competitive differentiation among firms.

D. All of these are reasons why operations management is important.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 01-01 Explain what operations management is and why it is important.
Topic: A Broad Definition of Supply Chain Operations Management

18. A process is:

A. A set of planned steps used to achieve an objective.

B. A system of activities that transforms inputs into valuable outputs.

C. A system of decisions.

D. A combined effort by people who want to get something done.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-03 Explain the role of processes and “process thinking” in operations management.
Topic: A Broad Definition of Supply Chain Operations Management

19. Which of the following statements is NOT true regarding supply chain management?

A. Globalization has slowed the growth of supply chain management.

B. Supply chain management is a way of viewing operations management.

C. Supply chain management has grown as a result of a focus on core capabilities.

D. Supply chain management is about making the most of relationships with suppliers.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-04 Explain what the supply chain is and what it means to view operations management using a "supply chain perspective."
Topic: Viewing Operations Management from a Supply Chain Management Perspective

20. Every organization operates which of the following types of supply chains?

A. Product and tangible goods supply chains.

B. Information and personnel supply chains.

C. Direct and indirect supply chains.

D. Product and resource/technology supply chains.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-04 Explain what the supply chain is and what it means to view operations management using a "supply chain perspective."
Topic: Viewing Operations Management from a Supply Chain Management Perspective

21. Which of the following factors is NOT a major change driver that supply chain managers are concerned about?

A. Technology changes

B. Regulatory changes

C. Global political changes

D. Supply chain managers are concerned about all of these changes.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-04 Explain what the supply chain is and what it means to view operations management using a "supply chain perspective."
Topic: Viewing Operations Management from a Supply Chain Management Perspective

22. Different levels of planning in supply chain operations management include:

A. General and detailed planning.

B. Strategic, tactical, and operational planning.

C. Long-term and short-term planning.

D. Logistical, operational, and procurement planning.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 1 Easy
Gradable: automatic
Learning Objective: 01-06 Define the planning activities associated with managing operations across the supply chain.
Topic: Viewing Operations Management from a Supply Chain Management Perspective

23. An example of strategic planning is:

A. Deciding where to locate a new manufacturing plant.

B. Forecasting next week's demand of a given product item.

C. Targeting customer demand for aggregate product families.

D. Setting inventory levels for a given product.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-06 Define the planning activities associated with managing operations across the supply chain.
Topic: Viewing Operations Management from a Supply Chain Management Perspective

24. Which of the following decisions would NOT be under the direct control of operations managers?

A. What resources will be used to satisfy customer demand?

B. What customers should be targeted with greatest priority?

C. What suppliers should provide needed inputs?

D. What mode of transportation should be used to ship products?

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-02 Describe the major decisions that operations managers typically make.
Topic: A Broad Definition of Supply Chain Operations Management

25. Customer service management connects what functional groups?

A. Supply management, marketing, and finance.

B. Logistics management, sales and distribution, and product engineering.

C. Marketing, logistics management, and sales and distribution.

D. Human resources management, marketing, and finance.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-05 Identify the partners and functional groups that work together in operations management.
Topic: Viewing Operations Management from a Supply Chain Management Perspective

26. Supply chain management has grown as a prevalent perspective on operations management because:

A. Purchasing managers now have stronger roles in companies.

B. Firms have become more vertically integrated.

C. Technology has facilitated globalization.

D. Governments have become less open to trade.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-04 Explain what the supply chain is and what it means to view operations management using a "supply chain perspective."
Topic: Viewing Operations Management from a Supply Chain Management Perspective

27. Fundamental areas of management in supply chain operations management include:

A. Quality, Inventories, and Processes.

B. People, Equipment, and Money.

C. Markets, Processes, and Sales.

D. Lean Systems, Quality, and Flexibility.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Remember
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-01 Explain what operations management is and why it is important.
Topic: A Broad Definition of Supply Chain Operations Management

28. Which of the following statements best describes “process thinking”?

A. It is a way to manage thought processes to make better decisions.

B. It is a way to view business as a system of interrelated activities.

C. It is a way to approach work systematically.

D. It is a way to categorize elements of work activities.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-03 Explain the role of processes and “process thinking” in operations management.
Topic: A Broad Definition of Supply Chain Operations Management

29. Operations management is important because:

A. It affects the quality of life of workers and consumers

B. It is a major cost for firms that needs to be minimized

C. Managers need to continually find ways to automate processes

D. It is more important than finance or marketing

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-01 Explain what operations management is and why it is important.
Topic: A Broad Definition of Supply Chain Operations Management

30. Which of the following challenges is most likely to be faced by service operations managers, rather than manufacturing operations managers?

A. Operations is typically less financially important in service businesses

B. Pure service operations need to be separated from pure goods-producing operations

C. The “total product experience” is more important in services

D. Customers are more directly involved in service processes, so their perceptions need to be considered

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-01 Explain what operations management is and why it is important.
Topic: A Broad Definition of Supply Chain Operations Management

31. Up until the latter parts of the 20th century, operations management mainly focused on:

A. Design

B. Internal production

C. External outsourcing

D. Globalization

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-04 Explain what the supply chain is and what it means to view operations management using a "supply chain perspective."
Topic: Viewing Operations Management from a Supply Chain Management Perspective

32. How is “supply chain management” different than “operations management”?

A. They are exactly the same thing

B. Supply chain management focuses mainly on supplier relationships, while operations management focuses mainly on production

C. Supply chain management is about relationships and flows, while operations management is about processes

D. Supply chain management is external, while operations management is internal

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Analyze
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 01-04 Explain what the supply chain is and what it means to view operations management using a "supply chain perspective."
Topic: Viewing Operations Management from a Supply Chain Management Perspective

33. In working with downstream processes, internal operations managers typically work closely with:

A. Marketing and sales managers

B. Information technology managers

C. Human resource managers

D. Government regulators

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-05 Identify the partners and functional groups that work together in operations management.
Topic: Viewing Operations Management from a Supply Chain Management Perspective

34. Internal operations managers work with what function to coordinate inbound and outbound flows of materials and information?

A. Finance

B. Purchasing

C. Marketing

D. Logistics

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-05 Identify the partners and functional groups that work together in operations management.
Topic: Viewing Operations Management from a Supply Chain Management Perspective

35. A supplier of materials used in manufactured goods is a member of:

A. A union

B. The product supply chain

C. The resource/technology supply chain

D.

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-04 Explain what the supply chain is and what it means to view operations management using a "supply chain perspective."
Topic: Viewing Operations Management from a Supply Chain Management Perspective

36. Which of the following groups is NOT likely to be stakeholders for operations in a local bank?

A. Customers

B. Regulators

C. Employees

D. All of these are likely to be stakeholders

AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Understand
Difficulty: 2 Medium
Gradable: automatic
Learning Objective: 01-05 Identify the partners and functional groups that work together in operations management.
Topic: Viewing Operations Management from a Supply Chain Management Perspective

37. What kinds of questions does an operations manager who is responsible for tactical-level planning address?

A. What new technologies should the company buy?

B. What new customers should the company pursue?

C. How many workers should we hire or fire?

D. Which customer order should we work on first today?

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 01-06 Define the planning activities associated with managing operations across the supply chain.
Topic: Viewing Operations Management from a Supply Chain Management Perspective

38. What kinds of questions does an operations manager who is responsible for operational-level planning address?

A. How many units of inventory for product X should I order?

B. Where should we locate a new distribution center?

C. What new information system should we install?

D. What technical training program should we purchase?

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 01-06 Define the planning activities associated with managing operations across the supply chain.
Topic: Viewing Operations Management from a Supply Chain Management Perspective

39. What kinds of questions does an operations manager who is responsible for strategic-level planning address?

A. Which employees should work the day shift tomorrow?

B. How should this process be organized?

C. How many manufacturing plants should the company operate?

D. Should we make this part or buy it?

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 01-06 Define the planning activities associated with managing operations across the supply chain.
Topic: Viewing Operations Management from a Supply Chain Management Perspective

40. Suppose that you are the general manager of a hotel. For which of the following issues would you first seek help from an operations manager in your firm?

A. Our prices seem to be too high.

B. Customers' complaints are rising.

C. We need a new insurance policy.

D. We are running out of cash.

AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Accessibility: Screen Reader Compatible
Blooms: Apply
Difficulty: 3 Hard
Gradable: automatic
Learning Objective: 01-02 Describe the major decisions that operations managers typically make.
Topic: A Broad Definition of Supply Chain Operations Management

Chapter 01 Test Bank - Static Summary