chaper 1

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1.Operations management is only concerned with the day-to-day operations of a firm’s productive systems.
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Ans: False, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None
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2.A warehouse operation is an example of a physical transformation process.
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Ans: False, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None
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3. A supply chain is a series of activities from supplier to customer that adds value to a product or service.
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Ans: True, LO: 1, Bloom: K, Difficulty: Moderate, AACSB: None
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4. Human resources management provides product demand estimates that are used in production decisions.
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Ans: False, LO: 1, Bloom: K, Difficulty: Moderate, AACSB: None
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4.A retail operation is an example of an exchange transformation process.
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Ans: True, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None
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5.The four primary functional areas of a firm are marketing, finance, operations, and legal.
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Ans: False, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None
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6.Operations management designs, operates, and improves marketing systems.
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Ans: False, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None
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7.An operations manager benefits from an integrated view of business organizations.
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Ans: True, LO: 1, Bloom: K, Difficulty: Easy, AACSB: None
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8.The systematic analysis of work methods is known as operations research.
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Ans: False, LO: 2, Bloom: K, Difficulty: Easy, AACSB: None
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9.Lean production refers to high-volume production of a standardized product.
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Ans: False, LO: 2, Bloom: K, Difficulty: Easy, AACSB: None
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11.Because of a global recession in the late 2000s ,companies started focusing on the most critical factors to sustain their business during the downturn.
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Ans: True, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None
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12.The most current era in the evolution of operations and supply chain management is sustainability.
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Ans: True, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None
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13.The set of activities that creates and delivers products to the customer is known as the supply chain.
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Ans: True, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None
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14.Globalization requires that firms compete only on cost and not quality, speed or flexibility.
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Ans: False, LO: 3, Bloom: K, Difficulty: Moderate, AACSB: None
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15.Globalization of the supply chain has many pros and few, if any, cons.
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Ans: False, LO: 3, Bloom: K, Difficulty: Moderate, AACSB: None
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16.The European Union requires that strict quality and environmental standards be met before companies can do business with member countries.
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Ans: True, LO: 3, Bloom: K, Difficulty: Moderate, AACSB: None
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17.A major challenge and opportunity for many firms is the globalization of the supply chain.
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Ans: True, LO: 3, Bloom: K, Difficulty: Easy, AACSB: None
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18.Globalization has affected manufacturing but not service operations.
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Ans: False, LO: 3, Bloom: K, Difficulty: Easy, AACSB: None
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19.Two-thirds of today’s businesses operate globally.
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Ans: True, LO: 3, Bloom: K, Difficulty: Moderate, AACSB: None
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20.In 2010, the US surpassed China as the world’s largest manufacturer.
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Ans: False, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None
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21.China has reshaped the way firms compete globally.
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Ans: True, LO: 3, Bloom: K, Difficulty: Easy, AACSB: None
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22.Increases in productivity enable a nation to raise its standard of living.
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Ans: True, LO: 4, Bloom: K, Difficulty: Easy, AACSB: None
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23.Productivity is the most common measure of competitiveness.
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Ans: True, LO: 4, Bloom: K, Difficulty: Easy, AACSB: None
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24.Single factor productivity measures compare output to an individual input.
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Ans: True, LO: 4, Bloom: K, Difficulty: Moderate, AACSB: None
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25.Deployment is a step in strategy formulation that evaluates the alignment between core competencies and order winners.
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Ans: False, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None
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26.Positioning is a step in strategy formulation that defines how firms will compete in the marketplace.
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Ans: True, LO: 5, Bloom: K, Difficulty: Moderate, AACSB: None
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27.Order qualifiers are the characteristics of a product that have to be satisfied just to be considered for purchase by a customer.
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Ans: True, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None
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28.An order qualifier is the characteristic of a product that wins orders in the marketplace.
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Ans: False, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None
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29.Core competencies tend to be processes and not products or technologies.
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Ans: True, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None
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30.The first of five basic steps in strategy formulation is determining a firm’s order winners and order qualifiers.
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Ans: False, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None
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31.Order winners and order qualifiers change over time in response to the dynamics of changing market conditions.
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Ans: True, LO: 5, Bloom: K, Difficulty: Moderate, AACSB: None
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32.Companies that compete on winnovation establish a corporate culture that discourages risk taking.
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Ans: False, LO: 5, Bloom: K, Difficulty: Moderate, AACSB: None
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33.Firms compete in the marketplace based on cost, speed, quality and flexibility.
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Ans: True, LO: 5, Bloom: K, Difficulty: Easy, AACSB: None
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10.The adaptation of mass production to emphasize quality and flexibility, rather than efficiency, is known as lean production.
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Ans: True, LO: 2, Bloom: K, Difficulty: Moderate, AACSB: None
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34.Operations management is concerned with the _________ of a firm’s productive systems. a.design b.operation c.improvement d.All of these answer choices are correct.
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Ans: D
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35. The transformation process associated with health care is best described as a. locational b. exchange c. physiological d. informational
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c
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36. All of the following are transformation processes discussed in the text except a. physiological. b. locational. c. exchange. d. spiritual.
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d
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37. Which of the following is not one of the four primary functional areas of a firm? a. human resources b. legal c. marketing d. operations
answer

b
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38. All of the following are responsibilities of operations managers except a. acquiring financial resources b. managing inventories c. planning production d. scheduling production
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a
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39. Which of the following is not an event or concept associated with the quality revolution? a. TQM (total quality management) b. Internet c. Six Sigma d. JIT
answer

b
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40. Linear programming, waiting line, simulation, and PERT/CPM are all elements of which era of operations and supply chain management? a) Quality Research b) Operations Research c) Internet Revolution d) Globalization
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b
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41. Dividing a job into a series of small tasks, each performed by a different worker, is known as a. craft production b. scientific management c. division of labor d. interchangeable parts
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c
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42. The most recent era in the evolution of operations and supply chain management is a. Internet Revolution b. Sustainability c. Globalization d. Quality Revolution
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b
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43. Sustainability, in it’s broadest sense, include(s) a. using resources wisely. b. treating workers with respect. c. establishing a business model of shared values. d. All of these answer choices are correct.
answer

d
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44. Mass production is well suited to all of the following except a. producing large volumes of goods quickly. b. adapting quickly to changes in market demand. c. producing standardized products for a large market. d. All of these answer choices are correct
answer

b
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45. The major factors impacting globalization of the supply chain include all the following except a. falling trade barriers. b. the Internet. c. declining union membership. d. All these answer choices are correct.
answer

c
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46. Companies go global to a. take advantage of favorable costs. b. to keep abreast of trends and access new technologies. c. to build reliable sources of supply. d. All of these answer choices are correct.
answer

d
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47. A manager of a global supply chain is concerned with all the following except a. timeliness. b. quality. c. social issues. d. All of these answer choices are correct.
answer

d
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48. The ratio of a firm’s monthly output to the number of labor hours used in the same month would be a measure of a. labor productivity. b. capital productivity. c. machine productivity. d. multifactor productivity.
answer

a
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49. The production system that prizes flexibility and quality over efficiency and quantity is known as a. mass production. b. craft production. c. lean production. d. electronic commerce
answer

c
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50. Telco Inc., a manufacturing firm, is calculating its monthly productivity report. From the following data calculate the labor productivity. Labor rate $20 Machine rate $15 Units produced 50,000 Labor hours 4,000 Machine hours 2,000 Cost of materials $20,000 Cost of energy $5,000 a. 0.370 b. 0.625 c. 1.500 d. 1.667
answer

b
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51. Telco Inc., a manufacturing firm, is calculating its monthly productivity report. From the following data calculate the machine productivity. Labor rate $20 Machine rate $15 Units produced 50,000 Labor hours 4,000 Machine hours 2,000 Cost of materials $20,000 Cost of energy $5,000 a. 0..370 b. 0.625 c. 1.500 d. 1.667
answer

d
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52. Telco Inc., a manufacturing firm, is calculating its monthly productivity report. From the following raw data calculate the multifactor productivity. Labor rate $20 Machine rate $15 Units produced 50,000 Labor hours 4,000 Machine hours 2,000 Cost of materials $20,000 Cost of energy $5,000 a. 0.370 b. 0.625 c. 1.500 d. 1.667
answer

a
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53. Snacknow, a food service firm, is calculating its monthly productivity report. From the following raw data calculate the labor productivity. Labor rate $10 Units produced 10,000 Labor hours 1,000 Cost of materials $2000 Cost of energy $500 a. 0.220 b. 0.476 c. 0.800 d. 1.000
answer

d
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54. Snacknow, a food service firm, is calculating its monthly productivity report. From the following data calculate the energy productivity. Labor rate $10 Units produced 10,000 Labor hours 1,000 Cost of materials $2000 Cost of energy $500 a. 0.220 b. 2 c. 10 d. 20
answer

d
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55. Snacknow, a food service firm, is calculating its monthly productivity report. From the following data calculate the multifactor productivity. Labor rate $20 Units produced 10,000 Labor hours 1,000 Cost of materials $2000 Cost of energy $500 a. 0.220 b. 0.476 c. 0.800 d. 1.000
answer

c
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57. _____________ is how the mission of a firm is accomplished. a. Strategy b. Design c. An operational decision d. None of these answer choices is correct.
answer

a
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58. _____________ represents what the firm is in the business of doing. a. Primary task b. Core competency c. Positioning d. Deploying
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a
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59. _____________ is what the firm does better than anyone else. a. Primary task b. Core competency c. Positioning d. Deploying
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b
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60. _____________ are the characteristics of a product that qualify it to be considered for purchase by a customer. a. Order winners b. Order qualifiers c. Core competency d. Positioning
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b
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61. _____________ is the characteristic of a product that wins the order in the marketplace. a. Order winners b. Order qualifiers c. Core competency d. Positioning
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a
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62. _________________is what the firm does better than anyone else. a. Order qualifiers b. Core competency c. Positioning d. Deploying
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b
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63. ______________ focus(es) the organization on common goals that can be translated into measurable objectives. a. Order winners b. Core competency c. Positioning d. Deploying the strategy
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d
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64. Companies that compete on ______________ are able to produce a wide variety of products in response to customer needs. a. cost b. speed c. flexibility d. quality
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c
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65. Companies that compete on ______________ pursue the elimination of all waste. a. cost b. speed c. flexibility d. quality
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d
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66. Companies that compete on ______________ recognize the advantages of time-based competition. a. cost b. speed c. flexibility d. quality
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b
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67. Companies that compete on ______________ focus on pleasing customers and satisfying their expectations. a. cost b. speed c. flexibility d. quality
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d
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68. The balanced scorecard examines a firm’s performance in all the following critical areas except a. finances b. customers c. processes d. All of these answer choices are correct.
answer

d
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69. The ____________ function helps strategy evolve by creating new ways of delivering a firm’s competitive priorities. a. finance b. marketing c. operations d. None of the answer choices is correct.
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c
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70. Companies that compete on _________________ establish a corporate culture that encourages risk. a. Innovation b. Quality c. Flexibility d. Cost
answer

a
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71. A(n) ____________ strategy involves a series of integrated decisions on processes, facilities, technology, quality, capacity, etc. a. finance b. marketing c. operations d. None of these answer choices is correct.
answer

c

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