Test Bank For
Operations Management An Integrated Approach, 7th Edition By R. Dan Reid and Nada Sanders
Chapter 1-16
Chapter 1: Introduction to Operations Management
LO Section Subsection Question #
1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 15,
16, 17, 18, 73, 75, 81, 82, 83, 84, 85,
What Is Operations 86, 87, 114, 115, 116, 117, 118, 119,
Management? 130,
Differences between
Manufacturing and Service 14, 21, 22, 23, 24, 74, 88, 89, 120,
Organizations 132, 133, 134, 135, 136, 138,
Operations Management
Decisions 25, 26, 27, 76, 121, 122, 124,
Historical Development 19, 20
Why OM? 28, 29, 94, 139
Historical Milestones 28, 29, 94, 139,
The Industrial Revolution 30, 31, 32, 33, 90, 91
34, 35, 36, 37, 38, 39, 40, 41, 69, 92,
Scientific Management 93, 95, 123, 125
The Human Relations 42, 43, 44, 46, 47, 48, 71, 96, 98, 100,
Movement 101
Management Science 45, 49, 50, 97, 103,
The Computer Age 104, 126
Just-in-Time 51, 52, 53
Total Quality Management 54, 55, 57
Business Process
Reengineering 6, 127, 141
Flexibility 77, 106
Time-Based Competition 58, 107
Supply Chain Management 56, 105, 128
Global Marketplace 60, 63
Sustainability and Green
Operations 59, 99, 129
Electronic Commerce 61, 62, 64, 108
Outsourcing and Flattening of
the World 102
Big Data Analytics 109
,Today's OM Environment 65, 66, 70, 78, 131, 140
Operations Management in
Practice 67, 68, 110
OM across the Organization 72, 79, 80, 111, 112, 113, 137
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Multiple Choice
1. Every business is managed through what three major functions?
a) accounting, finance, and marketing
b) engineering, finance, and operations management
c) accounting, purchasing, and human resources
d) accounting, engineering, and marketing
e) finance, marketing, and operations management
Ans: e
Solution: Every business is managed through three major functions: finance, marketing, and
operations management.
Section Ref: What Is Operations Management?
Sub Section Ref: n/a
Level: Easy
Bloom‘s: Knowledge
Learning Objective 1: Define operations management.
AACSB: Knowledge
Time on Task: 1 min
2. Which business function is responsible for managing cash flow, current assets, and capital
investments?
a) accounting
b) finance
c) marketing
d) operations management
e) purchasing
Ans: b
,Solution: Finance is the function responsible for managing cash flow, current assets, and capital
investments.
Section Ref: What Is Operations Management?
Sub Section Ref: n/a
Level: Easy
Bloom‘s: Knowledge
Learning Objective 1: Define operations management.
AACSB: Knowledge
Time on Task: 1 min
3. The finance function is responsible for
a) sales, generating customer demand, and understanding customer wants and needs.
b) planning and coordinating all the resources needed to design, produce, and deliver the
merchandise to its various retail locations.
c) planning, coordinating, and controlling the resources needed to produce a company‘s products
and services.
d) managing cash flow, current assets, and capital investments.
e) efficiency and costs.
Ans: d
Solution: The financial function is responsible for managing cash flow, current assets, and
capital investments.
Section Ref: What Is Operations Management?
Sub Section Ref: n/a
Level: Easy
Bloom‘s: Knowledge
Learning Objective 1: Define operations management.
AACSB: Knowledge
Time on Task: 1 min
4. Which business function is responsible for sales, generating customer demand, and
understanding customer wants and needs?
a) finance
b) human resources
c) marketing
d) operations management
e) purchasing
Ans: c
Solution: Marketing is responsible for sales, generating customer demand, and understanding
customer wants and needs.
Section Ref: What Is Operations Management?
Sub Section Ref: n/a
Level: Easy
, Bloom‘s: Knowledge
Learning Objective 1: Define operations management.
AACSB: Knowledge
Time on Task: 1 min
5. Which business function is responsible for planning, coordinating, and controlling the
resources needed to produce a company‘s products and services?
a) engineering
b) finance
c) human resources
d) marketing
e) operations management
Ans: e
Solution: Operations management is the business function that plans, organizes, coordinates, and
controls the resources needed to produce a company‘s goods and services.
Section Ref: What Is Operations Management?
Sub Section Ref: n/a
Level: Easy
Bloom‘s: Knowledge
Learning Objective 1: Define operations management.
AACSB: Knowledge
Time on Task: 1 min
6. All of the following are true for business process reengineering EXCEPT
a) it can increase efficiency.
b) it cannot be used to improve quality.
c) it can reduce costs.
d) it involves asking why things are done in a certain way.
e) it involves redesigning processes.
Ans: b
Solution: Business process reengineering means redesigning a company‘s processes to increase
efficiency, improving quality, and reducing costs. Reengineering requires asking why things are
done in a certain way, questioning assumptions, and then redesigning the processes.
Section Ref: Historical Development
Sub Section Ref: Business Process Reengineering
Level: Easy
Bloom‘s: Comprehension
Learning Objective 4: Identify major historical developments in operations management.
AACSB: Knowledge
Time on Task: 1 min
